The enfant terrible of finance, cryptocurrency. This new asset class is a laughable alternative to Bretton Woods, while still providing investors with new markets and yields. It’s either a scam or it’s a geeky one. It all depends on who you ask.
But when something starts capturing the attention of both Canggu influencers and Silicon Valley Bros, you know it has marketing power (if not necessarily ‘staying’ power). They are still safer than buying anything you want directly, unless you have the guts to know the people who run the funds.
In any case, a July episode of featuring Blockchain VC and consultant Sergei Sergienko recently opened our eyes to this possibility (it’s a shame we didn’t listen to it earlier, as we could have done with hearing it before getting our a**es handed to us investing in a bunch of speculative shit coins). The rest are in stable strategies such as yield farming or staking.
There is also, he says, “a small allocation towards the projects that hopefully will …. catch… when Elon Musk tweets [for instance] – total shitcoins that may rally.” At the moment, you can earn returns of more than 10-15% on US-dollar-denominated coins. Sometimes, when the market is active, you might see that percent rise to 40/45%.
“We found a lot of people don’t want to be exposed to Bitcoin direct.” There are protocols risks in this market-neutral fund. There are risks that the smart contract you use or whatever you’re staking could be hacked, or that funds may be drained. We do our research to ensure that this doesn’t happen but it is possible.
He then gave an example of a popular tether coin, which claimed to have a dollar in the bank for every digital coin on its database, but it was then found out that the entire country they were storing their dollars in (Panama) had significantly less dollars than the number of tokens the coin has supposedly (digitally) handed out. It is described as follows: “The MHC Fund invests digital assets like Bitcoin and Ethereum and is known for taking smart, calculated bets on early-stage blockchain companies. The MHC Fund’s multi-asset investment strategy distinguishes it. It protects investors against downside volatility up to 40% while capturing upside movement.”
Besides, According to Crypto Fund Research, there are currently more than 800 Crypto-focused funds worldwide.