Chinese Angel Investor Cai Wensheng in an interview with tech entrepreneur Wang Feng said he had achieved a personal goal of holding 10,000 Bitcoins. Wensheng is the founder of a Selfie touch-up app called Meitu which is immensely popular in China. He is also an angel…
Chinese Angel Investor Cai Wensheng in an interview with tech entrepreneur Wang Feng said he had achieved a personal goal of holding 10,000 Bitcoins. Wensheng is the founder of a Selfie touch-up app called Meitu which is immensely popular in China. He is also an angel investor with a net worth of $1.5 Billion.
Wensheng’s interview where he revealed his involvement with Cryptocurrencies was initially reported on Sina Finance. When asked about Bitcoin, he confessed that he had a very small quantity(in single digits) in January 2018. However, once he realised the potential of Bitcoin and Blockchain, he set a personal goal to acquire 10,000 Bitcoins. Since the price was still high at the time, he decided to wait it out and started accumulating once the bear run started. Bitcoin went as low as $6,000 after January. He acquired more bitcoins as the price went lower and finally hit his goal in just four months.
He also pointed out that he has invested in multiple cryptocurrencies other than Bitcoin. Some of them are Theta, Ontology (ONT), Cortex (CTXC), ArcBlock (ABT), Zipper (ZIP), YeeCall (YEE), Dxchain (DXC), Charter (CAF). Some of these have brought him huge returns while some are still bleeding money.
Cai sees the current state of Cryptocurrencies as the early stages of the dotcom boom. With the dotcom crash in 2000, multiple companies died in batches, and a few made it. Investors who bet on the right companies that survived the crash made unimaginable returns.
Wensheng also cautions investors to do their own research. If people invest in the same blockchain companies that he invests in and the value goes up, everyone is happy. However, just because he has invested in a company does not mean that it is bound to succeed. Even investors make mistakes.
When asked about the market crash in March, he dismissed it as no big deal. He called it a short-term setback and in fact, said Cryptocurrencies rose very well in the long term. In March of 2017, Bitcoin’s price was around $1,000. Comparing that with March 2018, the lowest it went was $6,000 which is still six times higher than what it was same time last year.
He also recognises the importance of ICOs in the market. Traditionally, investing in a company in its early stages is not easy for an ordinary person. ICOs level the playing field for everyone. Both institutional investors and ordinary people have the same starting line.
The Chinese government has blocked both Cryptocurrencies and ICOs. However, that has not slowed down the market. Most exchanges have relocated to countries around China and Crypto trading is still thriving within China through OTC trades. China had to disable off-shore exchanges using their Firewall. Most analysts expect the government to reverse the ban in future.
Last modified: May 6, 2018 9:19 AM UTC