The Success Story of Chinese Hedge Fund FBG Capital
Chinese crypto hedge fund FBG Capital is continuing to make headlines after endorsements from key stakeholders. Hedge funds are gaining popularity as they offer an alternative option to invest in cryptocurrency assets.
Recently, the founder Shouji Zhou sat down with Forbes for an interview regarding FBG’s journey. Zhou who was born near Shanghai said that his university studies have not helped him work wise. He stated that he joined university for friendship and connection.
Zhou once worked as an IT consultant at IBM’s office in the capital Beijing before joining Oracle. While working Zhou came to learn about bitcoin and immediately invested $10, 000.
His cryptocurrency trading business was a success, something that led to his resignation at Oracle. Within a year, his initial investment had grown by ten times. He notes that no sector can return such an amount.
Zhou said that he yearned to implement his trading expertise to a higher course. He later came together with individuals with similar goals and raised more than $20 million as seed funding.
The team rebranded to FBG Capital in 2017 and started looking for ICOs with potential. With ICO frenzy, FBG resolved to deploy “high risk, high reward" philosophy. With time the firm’s risk adoption retreated with the investment model remaining in place.
According to Gordon Chen, who was at one time a partner, the model had three main aspects. The firm took a deep dive of the founding team where a project’s chat room was monitored and lastly involving different stakeholders on the project product.
In the end, collective efforts by the partners bored fruits. High-return projects became very successful. Notably, there was a 33x gain on OmiseGo, along with a 567% return on Zillqa.
Apart from investing in ICOs, FBG has come up with diverse revenue sources. The firm is also involved in projecting how happenings in the industry that might influence prices. Secondly, FBG leverages partnerships with crypto tradings. The partnerships benefit ICOs in getting a spot on prominent exchanges. Zhou pointed out that his firm makes suggestions to listings but they are not involved in the final verdict.
FBG’s market influence has caught the attention of Olaf Carlson Wee the boss of Olaf Carlson-Wee. He has lauded the investors as the most talented in the market.
However, Zhou and his team have also received criticism on their business structure. According to Yubo Ruan (Decimal Capital), FBG can be best be described.