A new investment fund called Multicoin Capital has launched with $10 million committed in a bid to invest in a range of blockchain tokens.
The firm plans to have as much as $100 million raised by the end of the first quarter of 2018, representatives said in an email. Multicoin, which revealed its initial commitments today, outlined seven different investment focuses to begin with, ranging from storing value to decentralized prediction markets.
In statements, the fund sought to differentiate itself from traditional fund efforts, stating that while it may resemble a hedge fund on the surface, Multicoin is relying on a technology-driven methodology for identifying token prospects.
Kyle Samani, managing partner, said of the effort:
The company has been building its own security technology for the last year in order to make sure that investor funds won't be lost. Its security approach is based on three pillars: redundancy, cold storage and multi-signature. None of the private keys ever touch the internet, multiple private keys must sign a transaction to use Multicoin assets and there are copies of each private key stored in secure locations around the world.
"We like to say that the way we secure our keys is akin to the way the government secures the nuclear codes," Tushar Jain, managing partner, said of the fund's measures.
Among the firm's advisors is David Johnston, the co-founder of blockchain startup Factom. Accredited investors can participate with a minimum investment of $100,000, according to the firm. The fund charges a two percent management fee and 20 percent carried interest.
Image via Shutterstock
CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk offers all employees above a certain salary threshold, including journalists, stock options in the Bullish group as part of their compensation.