Wednesday, August 23, 2017

Former Art Advisor Turned Crypto Guru Seeks to Raise $100 Million Fund to Buy ICOs

This appears to be the apex of achievement for the disparate elements making up the "...Potential Source of Demand for the Art Market (and bitcoin)" and "Estonia could be the first country to do its own initial coin offering" posts.

From Bloomberg: 

One of Bitcoin’s Big Winners Is Raising $100 Million for a Crypto Fund
Jehan Chu says he’s got an early-mover advantage that will help his cryptocurrency fund stand out from the crowd.

The Hong Kong-based former art adviser started investing in bitcoin in 2013, when the digital asset saw its first major rally. Since then, prices have quadrupled, enabling Chu to quit his job, start a venture capital firm investing in blockchain technologies last year -- and now, launch a cryptocurrency fund that’s seeking to raise $100 million. Part of that money is already in the bank and Chu has started investing.

His Kenetic Capital is among a slew of firms that are lining up at the new frontier after soaring prices and proliferation of initial coin offerings -- sold by corporates to raise money -- boosted demand for digital assets. Chu, whose fund is advised by ethereum co-founder Vitalik Buterin, says he isn’t interested in speculation, but rather in tokens sold by companies with strong fundamentals and long-term potential.

“When we make a call for what we think is a good investment, it’s not because we think it’s a speculative play,” Chu said in an interview in Hong Kong. “It’s because we’re looking at the fundamentals based on years of experience.”

While the largest cryptocurrencies have all seen eye-popping rallies this year, it’s also a volatile market, prone to hacking and regulatory changes. One of the most salient issues now, for instance, is whether ICO tokens -- which CoinDesk data show have raised $1.8 billion for startups so far -- will be subject to securities regulations.

A rally in bitcoin has stalled after its price reached a record high last week. And bigger swings may be on the horizon as the cryptocurrency -- which already split into two in August amid infighting over the underlying technology -- may see another bifurcation soon.

Still, many finance professionals are taking advantage of increased demand. Lewis Fellas, a former portfolio manager at Harvard University’s endowment fund, is seeking to raise $200 million for a cryptocurrency hedge fund, Bloomberg News reported last week. And technology billionaire Mark Cuban is investing in 1confirmation, a fund that plans to raise $20 million to invest in blockchain-based companies.....MORE
With a spelling like that they should have  based the fund in Kennecticut.

HT: The Fly at iBankCoin who notes:
If you're worried about the speculative nature of investing in an 'asset' that does not have voting rights, ownership in the entity, regulated by anyone outside Github and Reddit forums, don't worry. Mr. Chu said he 'isn't interested in speculation' and will only buy coins with strong funds and potential...
And highlighted the bolded bit.