As co-founder and general partner of early-stage venture capital fund Race Capital, Edith Yong has been at the forefront of developments in the cryptocurrency sector, particularly in her hometown of Hong Kong. Most notably, she was a seed investor in Solana, investing $250,000 when SOL was valued at just $0.04, and was also an early investor in Lightning Network. Since 2017, Yeung has also authored the China Internet Report, an influential annual survey of technology trends in China.
Here, Yong, who will be a speaker at Consensus Hong Kong, will discuss Hong Kong's ongoing development as a crypto hub, her views on China's stance on crypto, her predictions for Solana, and what crypto will look like in 2025. Talk about big predictions.
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The interview has been condensed and lightly edited for clarity.
How do you think cryptocurrency regulation will develop in Hong Kong in 2025? Do you think more cryptocurrency companies will be licensed by the SFC in 2025?
It is interesting to note that there are currently seven SFC-licensed virtual asset trading platforms in Hong Kong. From an investor's perspective, having a clear licensing regime is a huge step forward. Regulatory clarity and predictability are like well-lit roads, giving investors the confidence to move forward without worrying about unexpected detours.
However, a license alone is not enough. Liquidity is another important piece of the puzzle. Think of your trading platform like a brand new highway. Even with the smoothest pavement and the clearest signage, drivers won't care if there are no cars running. Similarly, no matter how many licenses you have, without active trading and liquidity, investors will be reluctant to participate.
The key for Hong Kong today is not only to build infrastructure, but also to build traffic flow. A good platform without fluidity is like an empty highway that goes nowhere.
What role do you think Hong Kong will play in terms of the crypto sector, especially in relation to the US? What about Asia more broadly?
Hong Kong is the New York of Asia. Exchange Square is basically Wall Street. It's a 24/7 financial powerhouse, with towering skyscrapers and streets filled with endless energy of traders, investors, and bankers. If you are a crypto builder or investor, you will find a lot of TradFi talent (traders, market makers, etc.) in Hong Kong.
To run a successful TradFi or DeFi company, you need to hire a certain type of talent that is hard to find, even in Silicon Valley. Hong Kong has a rich financial history, with its stock market dating back to 1866, and with over 150 years of experience, we have a wealth of experienced professionals who can drive innovation and growth for your business ventures.
What do you think are the characteristics of cryptocurrencies in Hong Kong/Southeast Asia compared to the US and Europe?
The United States is home to the largest market for cryptocurrencies from the perspective of institutional investors, regulators, and builders. However, Asia has the highest growth potential for the crypto market. In 2024, half of the top 10 countries in the world in terms of cryptocurrency adoption will be located in Asia.
The new Trump administration will likely continue to set the direction for the regulation and institutional introduction of cryptocurrencies (such as the BlackRock ETF) in the United States. Asia will follow suit with a large and young crypto-native usage base.
Do you think China is generally pro-cryptocurrency or anti-cryptocurrency? There's a lot of cryptocurrency activity going on there, but at the same time the government officially opposes mining and speculation. I am.
Hong Kong is part of China. The gradual formation of pro-crypto regulations in Hong Kong is a great sign and indicator for China. That said, there are literally 220 million individual investors in China who have amassed about $21 trillion worth of savings. However, it is very difficult to say when China will re-enter the crypto business as the government focuses on these larger issues against the backdrop of a protracted real estate crisis and a slow economy.
You were a seed investor in Solana. Do you still have the initial investment left? Do you think Solana will continue to attract as much meme coin activity as it did in 2024?
yes. I had the pleasure of meeting Solana co-founders Anatoly Yakovenko and Raj Gokal and becoming their seed investor in March 2018. I'm a long-term Solana holder and supporter. What I like about them is their dedication to building and support for the developer community. Memecoin wasn't the only reason developer energy was high at the 2024 Breakpoint conference.
The Firedancer team has made great technological advances in the last year, and I'm really happy that Anatoly still works hard every day with people like Kevin Bowers, Jump Trading's Chief Scientific Officer, and his team. What's even more interesting to me is seeing traditional financial companies like Fidelity, Citi, and PayPal speak at Breakpoint about what they're building with Solana. This influx of existing players not only future-proofs Solana but also shows that blockchain technology is ready for the masses.
What types of companies are you currently considering investing in and why?
I'm a seed investor in Huma Finance, a leader in building PayFi on top of Solana, and a leader in stablecoin infrastructure. In 2024, they surpassed $2 billion in stablecoin trading. At Race Capital, we remain focused on investing in Internet infrastructure. Builders who want to survive long term don't care whether it's an up cycle or a down cycle.
What do you think will happen in 2025 that will surprise crypto players?
Establishment of a US Bitcoin Reserve by the end of 2025. Currently, the United States is the largest Bitcoin holder with approximately 207,189 Bitcoins. This effort will be powered by this vast stockpile, valued at more than $20 billion at current prices. The decision is expected to increase the price of Bitcoin and encourage other governments around the world to follow suit.
What are you most looking forward to speaking on stage in Hong Kong?
Hong Kong's role in building the crypto industry in 2025, China's love-hate relationship with crypto, and perhaps more insight into Solana.
