The blockchain industry in China has undergone a dramatic transformation over the past decade. Once a booming frontier of innovation and investment, it now operates in a more restrained and selective environment. Despite a 94% drop in funding events since the 2018 peak, strategic investments continue—concentrated in a handful of high-potential companies and driven largely by technological maturity rather than speculative hype.
From foundational infrastructure to cross-border fintech and privacy-preserving protocols, a new wave of blockchain innovation is emerging. This article explores the evolving landscape of China’s blockchain ecosystem, spotlighting top-performing companies, regional trends, and long-term sustainability.
The Rise and Fall of Blockchain Investment in China
Between 2015 and 2024, China’s blockchain sector saw over 1,000 funding rounds, with total investment exceeding 200 billion RMB. The surge began in 2015 and peaked in 2018, when 449 funding events were recorded—fueled by the Initial Coin Offering (ICO) boom and widespread enthusiasm for decentralized technologies.
However, the market correction that followed was severe. By 2019, the number of deals had dropped to 187, and the downward trend has persisted. In 2024, only 29 blockchain-related funding events were recorded across mainland China, Hong Kong, Macau, and Taiwan—a stark contrast to earlier years.
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This decline reflects both regulatory tightening and a shift from speculation to real-world application. While public blockchain and cryptocurrency ventures have been curtailed, private and enterprise-focused blockchain projects continue to attract capital—especially those integrating with finance, government services, supply chains, and data security.
Top Blockchain Companies Still Attracting Investment
Despite the broader downturn, a select few companies have managed to secure repeated funding rounds—demonstrating resilience and long-term vision.
Zero One Tech (ZeroPoint Technologies)
Founded in 2016, Zero One Tech stands out as a leader in blockchain infrastructure and privacy computing. With nine funding rounds completed, including a recent B+ round led by Guoxin Zhongshu Investment in 2023, the company has built a robust platform for secure data sharing and digital asset circulation.
Its technology serves sectors such as finance, smart cities, automotive data networks, and carbon trading. Notably, in December 2023, it partnered with Wuhan Chewang Zhilian on a trusted data space project for intelligent connected vehicles.
Backed by investors like Qingyu Fund, Sichuan Development, and Pudong Investment Holding, Zero One Tech has been profitable since 2020 and recognized as a national "Little Giant" for specialized innovation.
MarsBit (formerly Mars Finance)
Originally launched in 2018 by Wang Feng of Blue Lake Interactive, MarsBit began as a leading blockchain news and community platform. It raised seven rounds within two years from major players including IDG Capital, Huobi Ventures, and Binance.
After regulatory scrutiny in 2021 related to compliance issues, the company rebranded and refocused under stricter operational guidelines. Today, MarsBit remains active in content creation, market data reporting, and community engagement—adapting to China’s evolving digital asset landscape.
Animoca Brands
Though headquartered in Hong Kong, Animoca Brands plays a pivotal role in shaping global blockchain gaming and NFT ecosystems. Founded in 2014 and pivoting to blockchain in 2019, it has raised seven strategic rounds, including $359 million in January 2022.
With stakes in Dapper Labs (creators of NBA Top Shot), Decentraland, and its own hit titles like The Sandbox, Animoca is building a metaverse ecosystem through aggressive investment. In Q3 2024 alone, it funded 21 blockchain projects spanning DeFi, NFTs, and GameFi.
The company plans to go public in late 2025—a potential milestone for the broader sector.
Regional Shifts: Why Hong Kong Is Leading the Charge
In 2024, 69% of blockchain funding occurred in mainland China, while 31% took place in Hong Kong, Macau, and Taiwan—with Hong Kong alone accounting for 27.5% of all deals.
This growing prominence stems from Hong Kong’s progressive stance on virtual assets. The city has introduced licensing frameworks for crypto exchanges, allowed retail trading of certain digital assets, and positioned itself as a bridge between global capital and Chinese innovation.
Two standout Hong Kong-based firms are:
Only1
Launched in 2021 on the Solana network, Only1 is an NFT-powered social platform enabling creators to monetize content via fan support. Users can mint NFTs, participate in auctions using LIKE tokens, and join exclusive communities.
In 2024, Only1 secured $1.3 million from Newman Group and Folius Ventures. Its native token LIKE has a market cap of **$15.35 million**, with strong engagement across Asia’s creator economy.
QED Protocol
Focused on zero-knowledge (ZK) proofs, QED enhances Bitcoin’s functionality by enabling private, scalable smart contracts. As a zk-native execution layer using TapScript arithmetic integration, QED supports fixed-fee on-chain computation—ideal for DeFi and NFT applications on Bitcoin-based chains like Dogecoin.
In 2024, QED raised $3 million in seed funding from Arrington Capital and StarkWare, followed by a $6 million strategic round from Blockchain Capital.
Emerging Use Cases: From Fintech to Privacy Infrastructure
While speculative ventures have faded, practical applications are gaining traction:
- Qbit, a neo-bank based in Zhejiang, offers global financial services powered by blockchain—such as multi-currency accounts, virtual cards, cross-border payments, and BaaS (Blockchain-as-a-Service). Since 2019, it has raised three rounds and now serves over 40,000 businesses across 180 countries.
- Zero knowledge proofs (ZKPs), championed by QED and others, are unlocking new levels of privacy and efficiency for public blockchains.
- Enterprise blockchain deployments in supply chain finance, government data sharing, and carbon credit tracking are expanding quietly but steadily.
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Frequently Asked Questions (FAQ)
Q: Is blockchain investment dead in China?
A: No. While speculative activity has declined sharply due to regulation, investment continues in enterprise-grade applications such as data security, cross-border finance, and government digitalization.
Q: Why is Hong Kong becoming a blockchain hub?
A: Hong Kong has adopted clear regulatory policies supporting licensed crypto exchanges and retail trading. Its status as an international financial center makes it attractive for global blockchain capital.
Q: Can Chinese blockchain companies go public?
A: Direct listings involving cryptocurrency operations remain restricted. However, firms like Animoca Brands (based in Hong Kong) plan IPOs focused on gaming and intellectual property rather than token trading.
Q: What technologies are driving growth now?
A: Zero-knowledge proofs (ZKPs), BaaS platforms, NFT-based creator economies, and privacy-enhancing computation are key innovation areas attracting funding.
Q: Are VC firms still investing in blockchain?
A: Yes—but selectively. Investors now prioritize companies with clear revenue models, regulatory compliance, technical depth, and integration into traditional industries.
Q: How does China's approach differ from the U.S.?
A: The U.S. embraces open public blockchains and crypto trading; China focuses on permissioned chains for institutional use. Both nations invest heavily—but in very different directions.
The Road Ahead: Sustainability Over Speculation
China’s blockchain market has shifted from hype to substance. With core keywords such as blockchain investment, enterprise blockchain, zero-knowledge proofs, NFT platforms, fintech innovation, Hong Kong crypto, privacy computing, and digital asset infrastructure defining the current discourse, the focus is now on sustainable value creation.
While mass adoption remains limited domestically, offshore innovation hubs like Hong Kong are thriving—and domestic players are finding ways to contribute through backend infrastructure and compliant applications.
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As the world moves toward tokenized assets and decentralized systems, China’s quiet but persistent progress may yet play a crucial role—behind the scenes.