New World CEO Zheng Zhigang: Investing in Web 3.0 is a way to empower the next generation

Author: Zinnia Lee

Compiled by: Forbes China

As the CEO of Hong Kong real estate giant New World Development Group, Zheng Zhigang has added cryptocurrency custodian Hex Trust and blockchain infrastructure developer ConsenSys to his investment portfolio, further increasing his bet on the future of the internet—commonly referred to as Web 3.0.

"Hex Trust and ConsenSys are both platforms that provide comprehensive solutions catering to the needs of people in the digital age," Zheng Zhigang stated in a written response to Forbes. "ConsenSys has always been a pioneer in developing foundational software for the next wave of the internet, Web 3, while Hex Trust meets the compliance and regulatory standards of this digital era."

Zheng Zhigang announced on Wednesday that he has participated in an $88 million financing round for Hong Kong cryptocurrency custodian Hex Trust. Hex Trust stated that it has over 200 institutional clients and manages more than $5 billion in digital assets. Hex Trust also revealed that this funding round was led by local blockchain gaming company Animoca Brands and Liberty City Ventures, attracting participation from blockchain companies Ripple and Terra, as well as investors like Primavera Venture Partners and Morgan Creek.

According to the cryptocurrency company, this funding has increased its valuation tenfold within a year, reaching $300 million. The new funds will be used to expand its business in Europe and the Middle East, in addition to obtaining more licenses after gaining regulatory approval in Hong Kong and Singapore. It will also be used to enhance the company's products, such as financing and structured solutions.

In addition, Zheng Zhigang has invested in blockchain technology company ConsenSys through his venture capital firm C Ventures. ConsenSys announced on Tuesday that it has raised $450 million in this funding round led by ParaFi Capital, with other participating companies including Microsoft, SoftBank Vision Fund 2, and Singapore's state investment company Temasek. This funding round values ConsenSys at $7 billion, more than double its valuation since last November.

Founded by Ethereum co-founder Joseph Lubin, ConsenSys offers products that help developers and enterprises build applications on one of the world's most popular blockchains. The company is seen by many in the cryptocurrency community as one of the driving forces behind the development of Web 3.0.

ConsenSys stated that it will convert all proceeds into ETH, which is the second-largest cryptocurrency after Bitcoin, and the company also holds stablecoins and other digital tokens. This funding will also support the expansion of its cryptocurrency wallet product MetaMask, which the company claims supports over 30 million monthly active users.

Web 3.0 refers to the next stage of internet development, a decentralized network that integrates cryptocurrency and blockchain technology. According to data from information provider Crunchbase, it has become a buzzword among investors over the past year; in 2021, the cryptocurrency sector attracted over $21 billion in venture capital.

As the son of Hong Kong billionaire Zheng Jiachun, Zheng Zhigang is increasingly supporting Web 3.0 enterprises that hold significant appeal for future generations of consumers. He said, "The world today is focused on Generation Z, the young people born after the computer age. Investing in Web 3.0 is a way to empower the next generation… If people believe in the future and believe in the next generation, then they should understand the next generation and speak the same language as them. Investing in Web 3.0 is just that."

Last December, Zheng Zhigang purchased a piece of digital land on Sandbox. Sandbox is a blockchain gaming platform where players can create virtual worlds and earn money through in-game assets. The real estate tycoon stated that he is building a virtual community in the game featuring startups from his investment firm C Ventures' portfolio. C Ventures targets investments towards millennials and Generation Z.

Last year, C Ventures also invested in RTFKT Studios, a Los Angeles-based NFT platform that offers virtual sneakers and other collectible trades. The company has also committed to investing in Singapore's cryptocurrency financial services company Matrixport.