Arbelos Markets Raises $28 Million in Oversubscribed Investment Round
Arbelos Markets, a crypto principal trading firm, has successfully raised $28 million in an investment round that saw overwhelming interest from investors. Co-founded by Joshua Lim and Shiliang Tang, veterans in digital asset derivatives, the fundraising campaign included seed equity and debt financing, with prominent participation from crypto venture capital firm Dragonfly Capital. A wide range of investors, including firms like Room40 Ventures, Selini Capital, and Breed VC, as well as corporate partners FalconX, Circle Ventures, Paxos, and others, contributed to the round. Angel investors from Aevo, Cega, Talos, and more also joined in the investment.
Arbelos Markets’ Fundraising Amid Market Recovery 📈
The significant investment by Arbelos Markets comes at a notable time as the digital asset industry is rebounding from the aftermath of the crypto credit crisis in 2022. Several companies, including BlockFi, Celsius, and Three Arrows Capital, faced challenges during this period. With the industry maturing, more sophisticated and traditional players are entering the market, transforming it into a landscape that mirrors traditional financial markets. Arbelos, headquartered in the British Virgin Islands, aims to address the liquidity and hedging needs of sophisticated investors, filling the gap left by the previous market turmoil.
Leadership Background
- Shiliang Tang previously served as the chief investment officer at LedgerPrime.
- Joshua Lim held positions as the head of trading strategy at Galaxy and head of derivatives at a company affected by the credit crisis.
Lack of Transparency and the Crypto Credit Crisis 🔍
Joshua Lim identified the lack of transparency as a significant contributor to the crypto credit crisis. Some firms presented outdated or fabricated financial reports, masking the true risks from their creditors. Arbelos Markets aims to tackle this issue by introducing a “transparency engine” that allows clients to verify the company’s risk profile, balance sheet, and counterparty exposure independently and in real-time. Lim emphasized the importance of preventing a recurrence of past mistakes and ensuring transparency in their operations.
Trading Operations
- Arbelos actively participates in centralized and on-chain derivatives and options marketplaces, serving as one of the largest options block liquidity providers.
- Within the initial six months of its establishment, the firm achieved a derivatives trading volume exceeding $25 billion in notional value.
Continued Growth in Crypto Venture Capital Funding 💰
Crypto venture capital funding has shown steady growth for the second consecutive month, indicating sustained investor interest in the industry. The total amount invested and the number of projects receiving VC funding have notably increased since the fourth quarter of 2023. Web3 startups secured close to $1.9 billion in funding across 346 deals in the first quarter of 2024, demonstrating the continued robustness of the blockchain and crypto ecosystem.
Hot Take: Arbelos Markets Poised for Success 🔥
Arbelos Markets’ successful fundraising round and strategic approach to transparency and risk management position the firm for success in the evolving digital asset landscape. With experienced leadership, a focus on addressing past industry challenges, and a commitment to transparency, Arbelos is well-equipped to navigate the complexities of the crypto market and cater to the needs of sophisticated investors.
Sources:
1. [Yahoo Finance – Arbelos Markets](https://finance.yahoo.com/news/crypto-principal-trader-arbelos-markets-122518788.html)
2. [World Economic Forum – Crypto Credit Crisis](https://www.weforum.org/agenda/2023/04/2022-was-a-hard-year-for-cryptocurrencies-but-it-may-have-been-just-what-the-industry-needed/)
3. [Twitter – Arbelos Markets](https://twitter.com/Arbelosxyz/status/1788197103732166671?ref_src=twsrc%5Etfw)
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