Reflections on HashKey's Listing

Last week, HashKey, known as "Hong Kong's first crypto stock," was listed in Hong Kong.

A few days before the listing, several friends privately asked me for my opinion on the company and its stock; many venture capitalists in my social circle were excitedly sharing their joy and enthusiasm about participating in the subscription.

Indeed, with such a significant halo, and under the comparison and pressure of the rapidly evolving crypto ecosystem across the ocean, Hong Kong finally has a landmark crypto company going public.

This is certainly eye-catching.

However, when I replied to my friends privately, I clearly expressed my view: I really do not have a positive outlook on this company.

This skepticism is partly due to the company's own development, but a larger part depends on complex non-economic factors.

To succeed in any endeavor, the three elements of timing, location, and human resources are essential.

In our era, all companies and individuals willing and able to strive in the crypto ecosystem undoubtedly occupy the element of timing to some extent, as we are fortunate to be living in such a time.

Meanwhile, the companies and individuals in the United States and Argentina, which I mentioned earlier, also enjoy advantages in location and human resources.

The so-called locational advantage of the United States and Argentina refers to their sufficient population and large potential user markets.

The human resources in the United States are reflected in the strong support from both the government and private enterprises in creating a favorable environment for the development of the crypto ecosystem; this prevents the innovation of crypto companies from being innocently stifled.

Argentina's human resources are somewhat unique; it is actually due to the government's lack of financial regulation that the crypto ecosystem and applications have grown unchecked.

The different expressions of human resources in the United States and Argentina reflect completely different outcomes in practice:

The former has developed a large number of crypto giants but lacks in actual application, while the latter has developed deeply rooted crypto applications in daily life but seems to lack world-class crypto companies.

However, regardless of the final outcomes, we have seen the crypto ecosystem flourish in countries where "timing," "location," and "human resources" are all present.

Unfortunately, HashKey does not have such advantages in location and human resources.

In terms of location, its target users appear quite vague: it certainly cannot be limited to the local Hong Kong market, but there seems to be no visible potential for outward expansion.

As for human resources, the original advantage of Hong Kong's common law system, which is "anything not prohibited by law is allowed," should have been very conducive to innovation. As long as the law does not prohibit it, people can do anything. This is a legal system that is very favorable for innovation, similar to that of the United States.

However, now, after years of evolution, the performance of Hong Kong's common law has become increasingly "uncommon": the once ubiquitous crypto exchange shops have disappeared, and it is no longer possible to freely use Hong Kong dollars to purchase stablecoins…

These details alone reveal the changes in Hong Kong.

In this context, HashKey's listing seems more like an "example" and "model" rather than a ripe commercial achievement.

In such circumstances, leading a company like this to continue moving forward feels a bit like forcing a skilled cook to prepare a "full banquet" without any ingredients.

In fact, everyone knows why this is the case, what the future holds, and where the root of the problem lies.

Yet, in such a challenging environment, the HashKey team has been persevering in Hong Kong for years. Apart from genuine admiration, I cannot find any other more suitable words to describe my feelings.

Historically, even a genius like Zhuge Liang, the Prime Minister of Han, could only repay the late emperor's kindness, dedicating himself to the cause until death, barely sustaining the Shu Han for decades.

On the other hand, Sima Yi was wise, taking care of his health, hiding his talents, outlasting all unfavorable factors, and ultimately laughing last.