Most cryptocurrency enthusiasts will know the Japanese Coincheck exchange. They are mainly known for their trading of Bitcoin and top altcoins these days. The company wants to expand its presence by launching an investment fund. A preliminary funding cap of US$450,000 should be enough to get things underway. With this money, the company aims to support startups focusing on blockchain development. An interesting decision, to say the least.

A lot of money has poured into the blockchain sector these past few years. Not all of that money will guarantee the projects succeed, though. A lot of blockchain-based projects are still in the proof of concept stage. Other innovative ideas may never get funded in the first place. Coincheck is looking to ease the burden of raising money a bit. Startups involved in blockchain may want to pay close attention to their new investment fund.

Coincheck Banks on Blockchain and ICOs

Although 50 million yen may not sound like much, it’s a good start. This amount is subject to being increased depending on how many investments are made. It’s good to see prominent Japanese exchanges involved in funding blockchain startups. After all, there is no shortage of bright ideas but always a lack of money. However, that is not the only intriguing aspect about this new fund. It will also be used to support teams looking to host a cryptocurrency ICO. That in itself is rather unusual, to say the least.

Up until this point, cryptocurrency exchanges are hesitant when it comes to ICOs. More specifically, all tokens want to get traded on a platform as soon as possible. However, that is much easier said than done. It takes weeks, if not months, until a token can be verified properly. Adding more money to this costume can have all kinds of consequences. Coincheck will not buy ICO tokens themselves, though. Instead, they will offer business development and technology advice rather than anything else. A lot of projects can certainly use such support right now. It may also help free up additional people for community engagement.

Coincheck is making an intriguing decision with this investment fund. It is the first time we see a well-known exchange go out on a limb for cryptocurrency ICOs. Then again, it is possible the company may focus more on blockchain startups for the time being. It will be interesting to see how this fund evolves and what types of investments we can expect. Interesting things are bound to happen with this money, that much is evident. Coincheck is setting an interesting precedent, though.

Header image courtesy of Shutterstock

About JP Buntinx

JP is a freelance copywriter and SEO writer who is passionate about various topics. The majority of his work focuses on Bitcoin, blockchain, and financial technology. He is contributing to major news sites all over the world, including NewsBTC, The Merkle, Samsung Insights, and TransferGo.

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