A renowned luxury goods manufacturer is launching its own crypto-fund. What will it be?
The venture capital firm Aglaé Ventures, backed by Bernard Arnault, CEO of French multinational LVMH, is launching its own crypto-fund. The latter is extremely popular and includes brands such as Louis Vuitton, Givenchy, Kenzo, Chaumet, Moet & Chandon, Hennessy and TAG Heuer. Information about this came to journalists from insiders, who assured that the initial amount of the fund will be set at between 100 and 110 million euros. And that’s a serious sign for the coin industry, as the fund has previously funded companies that ended up becoming giants. We tell you more about what’s happening.
It should be noted that there are plenty of cryptocurrency funds in the industry. One of them is Galaxy Digital, whose head Michael Novogratz regularly comments on what is happening in the niche.
As he noted in mid-June 2022, the basis for further growth in Bitcoin and other cryptocurrencies at the same time will be Fed policy. In particular, investor appetite will begin to grow as US Federal Reserve officials gradually give up on raising the benchmark lending rate.
As a reminder, it was raised by 75 basis points in July, which together with the same result of June was the largest increase for several decades. In other words, financiers need to beat inflation first.
Investors are interested in cryptocurrencies again
According to The Block’s sources, Aglaé Ventures has previously invested in tech giants like Airbnb, Netflix, Slack and Spotify. The firm also began taking an interest in crypto this year, after which it invested in a $30 million round of fundraising for crypto start-up Flowdesk.
This investment has not yet been made as part of an anticipated crypto fund – the exact launch date is not yet known. In conjunction with setting up the fund, the firm has hired former CoinFund cryptocurrency executive Vanessa Grelet and former Aave platform chief operating officer Jordan Lazaro. Insiders note that the crypto fund will focus on centralised and decentralised startups, Web3 infrastructure, and solutions for crypto project scalability.
As a reminder, Web3 is the next generation of the internet, with the end user at the centre. Full ownership and earning opportunities for the latter will be guaranteed by immutable blockchain as well as assets based on it. Here, we are primarily talking about so-called NFT tokens, which are now actively used in the meta-village and coin industry in general.
Some of the well-known brands in the Aglaé Ventures portfolio
The launch of crypto fund Aglaé Ventures follows similar moves by rival European venture capital firms. Specifically, in January, London-based Blossom Capital allocated a third of its $432 million fund to cryptocurrencies with a focus on token investments. Also in February, Berlin-based Cherry Ventures launched a $34 million fund focused on crypto startups.
Oxford City Football Club has also joined the cryptocurrency world. From August 6, which is the start of the new sports season, the club will begin accepting payments in BTC for match tickets as well as food and drinks at its RAW Charging stadium. All transactions are planned to be done through the Lightning Network, which is a second-tier network based on Bitcoin’s main blockchain that allows fast and instant payments. However, for this to happen, it is first necessary to make an effort by opening up a communication channel.
Oxford City
Oxford City has entered into a long-term partnership with cryptocurrency company CoinCorner to implement the initiative, with the result that its symbolism will now be promoted on sports team T-shirts. CoinCorner CEO Danny Scott has stated that the partnership will make Oxford City the first English club to actively engage in crypto-innovation. Here’s a relevant quote from a spokesperson for the organisation, cited by CryptoSlate.
We believe the move will set a trend across all divisions of the Football League and beyond, as digital currency becomes the new norm for sports fans and event goers across the UK.
It should be noted that the link between football and cryptocurrencies has not always been successful. In particular, the recent financial problems of cryptocurrency broker Voyager have put representatives of the US National Women's Soccer League at risk. In particular, club players are now unlikely to be able to rely on crypto to pay part of their salaries. We wrote more about this in a separate article.
Cryptocurrencies
We believe that this LVMH initiative is an important signal for fans of digital assets and those who have not yet had time to connect with them for whatever reason. Apparently, representatives of the giant have had time to consider the potential of the blockchain industry and are therefore willing to allocate considerable sums for its development. And because the company's earlier investments have been extremely successful and apt, it is now hoped for a similar scenario for the cryptocurrency niche.
What do you think about it? Share your opinion in our Millionaire Crypto Chat. There we will discuss other important trivia from the blockchain world.
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