Hashed CEO Simon Kim: Bitcoin, Stablecoins, and AI Will Drive Crypto Growth in 2025

As a seasoned crypto investor and observer of the industry, I find myself in agreement with Simon Kim’s insights for 2025 and beyond. His experiences at the helm of Hashed, shaping Korea’s blockchain ecosystem, provide a unique perspective that resonates deeply.

Simon Kim, the CEO of Hashed and a prominent voice in South Korea’s blockchain sector, expressed his insights on the significant developments expected to shape the cryptocurrency landscape in 2025 and beyond.

Under Kim’s guidance, Hashed has grown from just a venture capital firm to a significant force in Web3 investments. The organization has played a crucial role in defining Korea’s blockchain landscape by organizing events like the Korea Blockchain Week (KBW), the nation’s largest blockchain event, offering Web3 developer training programs, and advocating for blockchain policy studies.

In this unique conversation, Kim discusses international cryptocurrency developments, emphasizing the increasing relevance of stablecoins, the strengthening link between artificial intelligence and blockchain technology, and the reactions of various global markets to shifts in U.S. crypto regulations.

What major trends do you anticipate in the crypto industry for 2025?

Looking ahead to 2025, Bitcoin and stablecoins are anticipated to play a significant role within the broader financial industry. Given the pro-cryptocurrency stance of the new U.S. administration, Bitcoin is progressively viewed as a crucial strategic reserve asset. It’s been reported that certain countries outside the U.S. have already started amassing Bitcoin as part of their strategic reserves.

Stablecoins are another key sector. Stablecoin transaction volume has already surpassed Visa’s transaction volume, with over $200 billion in issuance. While the main use of stablecoins has been in crypto exchanges and DeFi, we expect to see their adoption in international trade and retail payments accelerating in 2025.

In the world of cryptocurrencies, the blend of AI and blockchain technology is becoming a major focus. The tokenization of AI agents is rapidly expanding, and there’s increasing awareness about the importance of decentralized AI systems. For example, while OpenAI isn’t truly ‘open,’ Meta’s Llama project shows that open-source AI can be more affordable in terms of costs.

However, there’s currently no incentive model for developers in these open ecosystems. Creating decentralized governance and incentive models for AI will be a key experiment in 2025.

Why do you see stablecoins as a strategic advantage for the U.S. dollar?

Stablecoins provide a substantial chance for the United States dollar’s influence to grow. Even though the U.S. dollar makes up only a small portion of global currency reserves, it controls almost all (99%) of the stablecoin market. In essence, this extends the reach of the U.S. dollar into digital realms. From an American standpoint, there’s little reason to oppose this development – private companies are essentially broadening the influence of the U.S. dollar in digital environments without direct government involvement.

This is consistent with American goals because it boosts the dollar’s influence in the digital marketplace. Notably, well-regulated stablecoins that comply with Know Your Customer (KYC) and Know Your Business (KYB) requirements can provide enhanced surveillance over financial transactions compared to conventional cash or international bank transfers.

As the US positions itself as a crypto leader, what policy changes do other countries need to consider?

During his recent visit to the New York Stock Exchange, Trump spoke more about crypto than stocks, indicating a significant shift in US financial policy direction. The impact of crypto and blockchain on US finance is about to explode, and many countries, including Korea, are falling behind in adapting to this change.

It’s crucial for lawmakers worldwide to understand the immediate importance and timing of this global transition towards cryptocurrencies and blockchain technology. Numerous legislative proposals concerning cryptocurrency and security tokens are currently being deliberated in many countries, yet progress has been sluggish. To remain competitive in the global financial arena, other nations must swiftly follow suit as the US is already actively integrating crypto innovation within its financial system.

Instead of merely following trends, it’s crucial to actively capitalize on emerging chances within the rapidly changing international financial sphere. With a significant economy like the U.S. setting such a distinct course in cryptocurrency policy, nations must thoughtfully assess their stance and reaction to prevent being outpaced during this digital financial evolution.

What are the key characteristics of the Asian crypto market, particularly Korea?

The Korean market’s most notable characteristic is its powerful retail investor base. However, this market has developed exclusively around retail investors, with virtually no institutional participation. Without institutional investment products, individual investors are forced to become experts themselves, leading to a higher vulnerability to unreliable information and potential fraud.

When it comes to development prowess, South Korea shines more in creating innovative applications compared to building extensive infrastructure. During the Web2 period, it’s noticeable that most of its unicorn companies originated from application and content industries. As the blockchain industry moves towards an era where applications are flourishing on multiple mainnet platforms, South Korean developers stand at a promising juncture, especially in developing globally applicable blockchain-based solutions.

How does Hashed position itself in this market?

One way to rephrase that statement in a more natural and easy-to-understand manner is: “What sets us apart from other Web3 VCs is our strong emphasis on investing in application developments. Unlike most US-based crypto VCs, which typically have 80-90% of their investments in infrastructure layers such as Layer 1, Layer 2, or other infrastructure projects, we have more than half of our investments in applications.

Back in 2018, we were among the pioneering venture capitalists who made early investments in the Web3 gaming industry. We took the lead in notable projects such as Sky Mavis, creators of Axie Infinity, and The Sandbox, when many other VCs were hesitant due to doubts about Ethereum‘s transaction speed and capacity for growth.

What differentiates Hashed’s investment approach from other Web3 VCs?

As an analyst at Hashed, I’m responsible for overseeing two distinct investment avenues. Firstly, we make equity investments via Hashed Ventures, and secondly, we engage in direct cryptocurrency investments using our own capital resources. Due to the regulations in Korea that prohibit venture investment associations from directly investing in cryptocurrencies, we operate through two separate investment entities for these purposes.

Beyond our existing ventures, we boast several subsidiaries dedicated to venture building, one of the standouts being ‘UNOPND’. Acting as our hub for entertainment and gaming innovation, UNOPND gave birth to MODHAUS, a K-pop entertainment company that has seen remarkable success with its initial intellectual property, tripleS.

Instead of many investment companies that concentrate exclusively on investment tasks, we uniquely blend investments with addressing gaps within the cryptocurrency ecosystem to foster widespread adoption. As a result, we identify ourselves as ‘ecosystem developers,’ with our primary goal being the widespread acceptance and use of blockchain technology.

2024-12-17 21:35