Los Angeles, May 30, 2022 / AlexaBlockchain/ – Web 3 and Blockchain applications seem enticing for multiple individuals. Many even invest in some projects, but not everyone acquires success. As Web 3 continues to become the future of the internet, making the right investments early on can offer success and profits. Koi Trading co-founder Shixuan “Jimmy” Cai explains how to differentiate a good and bad investor while giving insights on his investments and other trade secrets.
“True God is the one who does not play with dice,” says “Jimmy” Cai.
A Los Angeles graduate, Cai is the co-founder and general manager at Koi Trading, a Cryptocurrency OTC trading platform. He is also an investor in more than 25 fintech and crypto projects like Solana. Cai also has limited partnerships (LP) for different crypto hedge funds since 2017.
A successful business angel in the cryptocurrency world, when asked about what he does exactly, Cai said, “I sell shovels to gold rushers in the crypto world.”
He has received multiple prestigious awards while he is still 28. Some of the notable honors include Hurun’s 2021 US Innovation Outstanding Awards awarded to Cai in November 2021 for his contribution to the US information technology field.
Cai holds a degree in electronics engineering which forms the roots of his crypto projects investment choices. The investor was keen on pursuing a career as a programmer however, during his initial days at college he was approached by multiple local startups, and venture capital funds in L.A. Cai got involved in a few SPV investments then and ever since has never looked back. One of the companies was Honey Science Corporation, which PayPal took over for $4 billion.
After college, he became one of the first employees of the fast-growing fintech startup Huobi US. Through networking and offline events hosted by various investment institutions and incubators, he made connections with leading venture capitalists such as ZhenFund, Sequoia, 500 Startups, etc., which convinced him of his decision to follow the investor path.
When asked how investors can ensure their company is a success like Solana, valued at $110 billion. Cai says:
“Solana did not succeed in the two ups. We (company investors) had to take risks and use new business methods as opposed to the usual ones.”
Cai explained how many entrepreneurs tried to achieve higher results through consensus mechanisms (Proof-of-Stake) and sharding in the blockchain development ages.
And how Solana, on the other hand, abandoned the usual approaches and used a consensus mechanism called Proof of History. “Even though the approach was quite risky and did not guarantee success, I was not going to give up,” says Cai.
Cai has been active with startups from 2017 to 2019. He invested primarily in the US. During that time, he made investments in more than 25 startups and developed his investment theories.
When asked about his secret to becoming a successful investor at a young age, Cai says:
“A good investor differs from a bad one in that the latter blindly follows the trends in the market, while the former always assesses the market potential and considers its outlook in five or ten years.”
The investor also suggests investing time in self-learning and advises aspiring individuals to invest (time) in themselves. He also warns against blindly following trends and opting for the famous fields. One must quantify the prospects of each industry and choose the career path based on strengths.
The pandemic outbreak was bad news for many investors. Cai revised his investment strategy and started to look for a more diversified asset allocation and investing more in the secondary market, which is more liquid.
To eliminate potential risks, he took a more conservative approach. He further diversified his investment into the consumer-focused sector in addition to metaverse and web3. Cai became a limited partner in Race Capital, an early-stage venture fund from Silicon Valley.
With such a successful career path in just a short period, the Beijing-born and raised investor is looking forward to investing in web3 technology and helping create a new future.
Source: Koi Trading