Chain Venturer: Ash Liew of Signum Capital

Combining crypto-native expertise and TradFi network

Marco Manoppo
September 23, 2023

📢 Sponsor | 💡 Telegram | 📰 Past Editions

Happy Weekend 🙋🏻‍♂️,

Welcome to Chain Venturer, a series of intriguing conversations with crypto investors. For this week’s issue, we have Ash Liew from Signum Capital.

Ash is an Investment Lead at Signum Capital, a Singapore-based crypto investment firm with a global team that has also partnered with United Overseas Bank (UOB) to launch a $50M crypto fund.

If you would like to participate in a future episode, DM me here.

-Marco

The markets are down with Ethereum teasing below $1,600 again.

Frankly, the trading aspect of the crypto market has been extremely dead in the past few months. Sure, there are onchain PVP activities here and there but you’re better off experimenting with new onchain products and paying attention to the infrastructures.

The way I see it, there are three critical infrastructures:

blockchain infrastructure → L2, Eclipse SVM, Appchain
capital markets → ETF, bank supporting crypto, easier capital flow
regulatory → can you launch a token, CEX audit, stablecoin rules

Let me briefly shine a light on the Layer 2 competition.

Dapps rule over their infrastructures. DYDX is becoming an appchain, Maker plans to launch its own chain, and so on.

At the end of the day, no one cares which chains your products are being built on. So long as access to liquidity is there (bridge infrastructure and FIAT on/off ramp)and users actually want to use the products.

The key: Layer 2 needs to think like a venture studio.

Go so far as even incubating successful projects if needed when there’s a proven PMF. Simply tinker with features that users want and execute. Become like the Rocket Internet guys but more thoughtful and understand the unique crypto considerations.

Base has Friend Tech
Arbitrum lead as the most profitable L2 surpassed
Now there's Post Tech, Friend Tech’s “copy” but with a web-based interface that mimics Twitter’s UI, on Arbitrum
- if you buy my shares *maybe* we’ll do something in the future 👀

One day later… (it might be speculation, but trust your instinct).

Base token not 'ruled out entirely,' Coinbase's Paul Grewal says: report
— Frank Chaparro (@fintechfrank)
10:34 AM • Sep 22, 2023

Anyway, enjoy this week’s conversation!

This week in (real world) governance shenanigans.

"For a five-year period, Citadel Securities incorrectly marked millions of orders, inaccurately denoting that certain short sales were long sales and vice versa"
SEC Settlement fee: $7m
— Hsaka (@HsakaTrades)
3:32 PM • Sep 22, 2023

Ash Liew, Investment Lead at Signum Capital

Ash Liew currently serves as an investment lead at Signum Capital, a Singapore-based firm that exclusively invests in Blockchain-enabled companies, where he contributes to the investment team's efforts in the DeFi and Gaming sectors. Prior to his involvement in the crypto space, he gained experience in the Advisory department at KPMG Singapore.

Ash is an alumnus of the University of Nottingham, with a major in Economics and Management. Beyond his professional pursuits, he describes himself as a food enthusiast and maintains a keen interest in fitness, having even represented Malaysia's national team in powerlifting at one point in his life.

Here’s my conversation with Ash Liew.

Quick takeaways:

Bullish on crypto gaming in Southeast Asia, not so much on DeFi.
Founders should target crypto-native users to find PMF before expanding to the general market.
Don’t underestimate memetic strategy as a key marketing tool.
Liquid investment strategies provide significant benefits for investment funds operating in crypto.
Consumer applications are exciting and necessary as they are more relatable to the average person and could serve as an engaging entry point into the world of crypto.

The following paragraphs are not verbatim quotes. These are paraphrases of our conversations optimized for written media format. Some context and nuances might have not been conveyed properly in the process.

The author of this issue is not responsible for any misconstrued statements made in the issue.

All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.

BROUGHT TO YOU BY

Launchy

What type of content do you want to see more?

Chain Catalyst (by Launchy) is planning a bunch of new series and products for the rest of 2023.

What was the defining moment that drew you into the world of crypto?

Ash's interest in crypto was initially sparked by its efficiency and speed in facilitating cross-border payments. This was his first real interaction with crypto and served as a gateway to understanding the broader implications of blockchain technology.

His ongoing fascination with crypto, even while working in another full-time role, made him realize that the sector offered something his previous job couldn't: genuine excitement and engagement. This led him to make a career shift into the crypto industry.

What is Signum Capital?

Founded in 2017 during the height of the ICO boom, Signum Capital initially invested in projects like Polkadot, Fantom, and Mina, which have since become leading Layer 1 platforms. In 2020, the firm pivoted its focus towards consumer-oriented sectors, particularly in decentralized finance (DeFi) and gaming.

In 2021, Signum entered into a strategic partnership with United Overseas Bank (UOB), one of Southeast Asia's largest banks. The collaboration operates under a co-General Partner structure, allowing both Signum and UOB to jointly make investment and divestment decisions. This partnership leverages Signum's crypto-native expertise and UOB's extensive network in traditional finance.

The joint fund primarily targets early-stage investments in the primary market including pre-seed and seed-stage investments, but also maintains the flexibility to invest in secondary markets, including tokens and over-the-counter (OTC) transactions.

Signum's global influence is amplified by its team of investment analysts based in Europe and the U.S., providing a broad geographical reach. Furthermore, its regulatory compliance with the Monetary Authority of Singapore (MAS) makes it a preferred choice for Limited Partners (LPs) across Asia, especially in Southeast Asia.

What are your thoughts on the structure of crypto investment funds?

Ash advocates for a liquid investment approach, especially useful in bear markets. He notes that the timing of investment releases, known as vesting schedules, can greatly influence the fund's returns, regardless of how early the investment was made. This is further complicated by "cliff" periods and the often short-lived narratives that accompany each crypto token or sector.

For example, in 2021, the GameFi sector saw remarkable growth, benefiting investors not just because of the bullish market but also due to the narrative's staying power. This allowed the tokens generated at the project's inception to recoup the initial investment.

Ash highlights the appeal of liquid tokens, which offer flexibility in investment and cliff periods, enabling investors to adapt their positions effortlessly.

What sectors are you currently interested in, and what types of projects should be reaching out to you?

Signum is concentrating on four main sectors: infrastructure, gaming, decentralized finance (DeFi), and consumer applications like social media, music, and NFT projects. Ash is particularly excited about consumer applications, as he believes they are more relatable to the average person and could serve as an engaging entry point into the world of cryptocurrency.

What practical advice do you have for founders looking to attract more users?

Ash stresses that founders should first focus on attracting users who are already familiar with cryptocurrency to establish a strong product-market fit. Once that's achieved, they can then scale to a broader audience. He also points out the unique role of memes in the crypto world, emphasizing their power as a primary marketing tool for onboarding users.

Are you optimistic about the crypto landscape in Singapore or Southeast Asia?

Ash believes that the potential for success in different sectors varies by region. For Southeast Asia, he's particularly optimistic about mobile gaming, citing the region's robust mobile gaming community. He also sees a bright future for casual and hyper-casual games that are designed for mobile platforms.

However, when it comes to decentralized finance (DeFi) and other financial products, Ash thinks they may not be as readily embraced across Southeast Asia, with the exception of Singapore.

Rapid Fire Questions

What’s one book that any aspiring investment professional should read?
- The Intelligent Investor - Benjamin Graham.
What’s your biggest investment mistake?
- Getting caught up in the NFT mania.
What’s the most underrated use case of crypto?
- Cross-border remittance.
What’s your most contrarian view in crypto right now?
- We will not have mass adoption.
What’s the biggest risk that the crypto space is facing?
- We are building something that no one really cares about and regulatory risk.

If you enjoy reading this issue, please consider subscribing. It takes 1 minute of your time but it would mean the world to us 🙇

Disclaimer: All the information presented in this publication and its affiliates is strictly for educational purposes only. It should not be construed or taken as financial, legal, investment, or any other form of advice.w