In a TechNode Global Q&A, Adrian Wang, Founder and Chief Executive Officer of Metalpha Limited, shared his insights on the challenges and trends the crypto industry encountered particularly in 2022. He noted that the industry faced formidable challenges, with defaults and bankruptcies in sectors such as lending and exchanges causing massive losses and damage for investors. However, Wang believes that higher self-imposed industry standards and effective regulation and policies can change the public perception of the industry, making it less “shady.”

Looking ahead to 2023, Wang expects a rebound in the crypto market, with Asia playing a key role. Despite some big-name companies falling out in 2022, the underlying blockchain technology and infrastructure have continued to grow, and institutional adoption is still in progress. With recent changes in crypto regulation in Hong Kong, the city looks set to overtake Singapore as the premier destination for crypto startups and institutional investors looking to get into the digital assets space. Wang sees this policy shift as paving the way for Asia’s financial hub to become a center for digital assets.

Wang expressed optimism about the current status of Hong Kong’s digital asset management industry, noting that the city has abundant resources for fresh graduates to explore different career opportunities in the industry. He advised entrepreneurs looking to break into the digital asset management space to focus on product development and innovation while implementing effective internal control measures. Overall, Wang’s outlook for the industry is positive, and he believes that the crypto and Web3 space is full of opportunities for professionals with different backgrounds, from trading to back-end engineering.

Looking back to 2022, what were some of the biggest challenges faced in the industry?

The global crypto industry faced formidable challenges in 2022. We saw a series of defaults and bankruptcies through sectors from lending to exchanges, triggering massive losses and damage for investors. What worries me more is the public perception of the industry as shady which I believe higher self-imposed industry standards and effective regulation and policies will change in 2023.

What does Metalpha do? Tell us about your recent restructuring?

We are a global digital assets wealth management company and a US-listed company (NASDAQ: MATH) and the recent strategic restructuring is crucial to our future business success.

After the restructuring, the listco is known as Metalpha Technology Holding Limited. The restructuring improves the company in three ways.

• First, our operational efficiency will greatly improve as we can hire top-notch talents and adjust corporate strategies more swiftly to market changes, which leads to my next point.
• Product innovation. We work with institutional investors and high-net-worth individuals, so being able to deliver the most advanced trading and investing products is crucial to our long-term success.
• Lastly, post-restructuring allows us to remain a robust relationship with Antalpha Technologies Limited, which has a global presence in mining and digital asset management.

Can you share some highlights from the past year?

We aim to become a leading global crypto asset management company with a focus on Asia, specifically Hong Kong. We do not hold clients’ assets but rather just issue OTC products to professional investors, such as miners, crypto funds, and family offices. As of August 14, 2022, The aggregate notional amount of derivative products of Metalpha Limited issued is around $198 million.

What is your view on the Asia crypto landscape in 2023? What will change?

Entering the fresh new year of 2023, the crypto market will rebound and the Asia market will be a key factor in this. In 2022, we saw some big-name companies fall out and it unnerved many investors. Despite disturbing news, the fundamentals have not changed. The underlying blockchain technology and infrastructure have continued to grow and institutional adoption is still in progress. With recent changes in crypto regulation in Hong Kong, the city looks to overtake Singapore as the premier destination for crypto startups and institutional investors looking to get into the digital assets space.

What is the current status of Hong Kong’s digital asset management industry?

I find the recent policy shift announced by Hong Kong’s SFC has paved the way for Asia’s financial hub to become a center for digital assets. Against this backdrop, I expect to see more startups and crypto firms move into the city and seek licenses, and plan their long-term presence here. The city has abundant resources for fresh graduates to explore different career opportunities in our industry.

What advice would you give to entrepreneurs trying to break into the digital asset management space?

The crypto and Web3 space is perhaps the most innovative and exciting space for many professionals with different backgrounds, from trading to back-end engineering. The industry is full of opportunities for those who wish to work with cutting-edge technologies and the brightest minds in fintech. That being said, entrepreneurs looking to break into the space should focus on product development and innovation as the centerpiece of their strategy, while implementing effective internal control measures.

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