Cryptocurrency hedge Fund Polychain received $ 10 million funding
A new project under the name Polychain Capital managed to raise $ 10 million for the creation of a hedge Fund consisting of the cryptocurrency. The project representatives believe that investing in digital assets, you can get a very good profit.
The head of the company, Olaf Carlson-Wee (Olaf Carlson-Wee) - a former employee of Coinbase. In September of this year it launched a multi-cryptocurrency investment Fund Polychain. According to Forbes, investment in the amount of $ 10 million made venture capital firms Union Square Ventures and Andreessen Horowitz. According to a partner at Union Square Ventures brad Burnham (Brad Burnham), Carlson-VI "understands, how to treat and appreciate tokens and can determine which tokens are most likely to rise in price".
This year the value of digital assets like bitcoin and ether greatly increased, and the representatives of the Polychain believe that "this promises investors a unique profit." On the company's website also stated that "active management" of portfolios of the assets of the blockchain. Currently, the project site offers a very simple, and contains only the email address of Carlson-Wee, which you can send questions about a hedge Fund, more information is not yet available. The former head of risk management Department Coinbase says that he believes in the combination of cryptocurrency:
"The blockchain will be decorated with many kinds of assets and they will not exist only in the blockchain of Bitcoin - there will be several different assets. And the best investments will be a diversified portfolio".
Growing demand for financing arrangements of digital assets
It is worth noting that hedge Fund Carlson-Wee is not the first such company. Investment funds based on Bitcoin already offers the company Pantera Capital and three other firms. Another similar project is called the Melon, it was developed by the founder of Parity (Ethcore) Gavin wood (Gavin Wood) and is a decentralized asset management system for multiple blockchains. However, the presence of such major players like Andreessen Horowitz and Union Square Ventures, is to Polychain a good start. Carlson-Wee explains why digital assets will soon be very popular:
"Developers of peer-to-peer Protocol open source for the first time will be able to monetize your project at the Protocol level. The demand for tokens is increased because they needed to work on the network. And since this demand is stagnant, and a fixed supply of tokens, the price moves up. So, it looks like the balance of interests in a startup, stimulating the founder and workers, but in reality it is the monetization of open peer-to-peer Protocol, not a company."
The proponents of the network effects
Investing in Polychain, Andreessen Horowitz continues to demonstrate its faith in the cryptocurrency ecosystem. The venture capital firm has already invested huge sums in such companies as Coinbase, Openbazaar, Github, 21inc, and other startups blockchain. Mark Andreessen, author of the famous work "Why Bitcoin is important" ("Why Bitcoin Matters") is also an active supporter of Bitcoin.
He says: "Bitcoin is a classic network effect, a chain of positive feedback. This property of the network effect of Bitcoin is shared with the telephone system, the Internet and popular web services like eBay and Facebook".
As a separate currency and commodity markets this year have failed, investors may be interested in the new types of portfolios and funds risk management. According to Polychain, investors should look for profit to the hedge Fund based on cryptocurrency profit. And, given the project $ 10 million, it seems that venture capital firms are of the same opinion. In the presence of the industry, creating exchange traded funds and hedge funds based on Bitcoin like cryptocurrencies, network effects are magnified.