Huobi to Launch Billion-Dollar Blockchain Incubator for Chinese Startups

  • Huobi is set to launch a billion-dollar global blockchain industry fund and build a 40,000-square meter blockchain incubator.
  • Huobi China’s headquarters will be relocated to the Hainan Ecological Software Park.

Huobi is set to launch a $1 billion fund for Chinese blockchain companies. It’s set to provide startups technical and strategical support, and access to software so they can test their products and/or systems.

Huobi Labs, a venture the company plans to launch, is an incubator belonging to the cryptocurrency exchange, Huobi, one of the largest in the world with a daily trading volume of well over $1 billion.

By introducing the $1 billion fund, Huobi seeks to expand its influence within China and across the world. The initiative comes alongside a new strategic cooperation agreement made with Chinese social media company, Tianya. The two companies are seeking to jointly launch a ‘Global Cultural and Creative Blockchain Lab’.

This year, China has announced a more open approach towards international trade, and has proposed the creation of a global free-trade zone in Hainan Province, which is where Huobi and Tianya plan on launching their Blockchain Lab.

The global free-trade zone is expected to come into full effect by 2020, with the Global Cultural and Creative Blockchain Lab being one of the first to take advantage. Huobi’s founder, Li Lin, has outlined the broader aspirations the company has, and its strategic partnership with Tianya.

The incubator in question, Huobi Labs, will see both the capital and vast knowledge of both blockchain technology and China pooled together between the two companies. The decision to place the incubator’s headquarters in Hainan is both to benefit the local economy, and to put Huobi in a commanding position, especially as it transitions into a global free-trade zone.

Earlier this year, Huobi entered the UK, as it established offices in London, while also preparing to set foot in San Francisco. The footholds across continents come as a sign of renewed growth in the wake of the breakdown of a partnership between SBI and Huobi in March. Halts Trading Amidst Market Slow Down

Michael LaVere
  • is halting all trading activity for an undetermined period of time. 
  • The exchange cites unfavorable market conditions and rising infrastructure costs as contributing to the decision. 

Cryptoasset trading platform has announced a halt to its trading activities amidst the market slow down, while claiming that the suspension will only be transient. 

On Oct. 22, announced a complete suspension of trading on its platform, citing low volume and activity in the crypto markets.  The announcement reassured investors that the suspension would only be temporary, is not going out of business. The crypto exchange will be archived securely and pending the financial opportunity will be reopened at a future date.

In addition to unfavorable market conditions, said there was pressure from massive marketing budgets and increased infrastructure costs. They also called out the abundance of scam projects in cryptocurrency resulting from the lack of regulation, including exchanges posting artificially inflated volumes. 

The announcement continued, 

This is purely a profit and loss decision. Despite the success of our re-launch, it has become clear to us that in current market conditions the exchange is a long way from turning a profit. Profits (and losses) directly affect the LP payouts.

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