Now that blockchain’s technology is starting to mature, there is a increase in ICO projects that work to solve problems within the hedge fund industry. So far, Multicoin Capital is one of them that stands out from the rest.
Multicoin launched in October 2017 and has increased their fundraising goals for 2018 according to a Coindesk’s report. When launched, Multicoin planned to obtain $100 million by early 2018. Now they increased their target to $250 million by the fourth quarter of this year
Multicoin’s Capital had gained $50 million from a large pool of investors. Marc Andreessen is the general partner and co-founder of the venture capital business Andreessen Horowitz. His main goal is to help make a safer hedge fund company through the use of blockchain technology.
“There’s been an increase of interest in Multicoin Capital, which validates the need for fund managers that know the market,” said Kyle Samani, the managing partner and co-founder of Multicoin.
The main investors include a number of prominent firms and individuals, including Vy Capital, Passport Capital, Adam Zeplain, Ari Paul of Blocktower and Vy Capital.
Multicoin’s Tech-Driven Approach
There is an increasing number of crypto-focused hedge funds. Multicoin is planning to set itself apart from the competition. The company presents its main product as a creating a technology-based methodology to their investment decisions. And they select the right token prospects through using systems and algorithms that are used in the traditional quantitative funding world.
Samani stated that the fund will “invest in crypto tokens, not companies. Unlike companies, the tokens require tools in order to scale”. As the crypto world changes with regard to regulatory oversight and investor interest, crypto enthusiasts and managers like Samani have to face the task of revising and updating their strategies.
Multicoin’s capital funding has grown at an exponential rate. In December 2017, Vinny Lingham (founder of Civic) joined Multicoin as a general partner. In spite of having ambitious fundraising goals for the year.
Multicoin Capital has a long way to go before it achieves their goals. At the same time, there are concerns about the native coin’s (Multicoin) health. Which might cause other money managers who are considering its launch to pause for a moment.
It’s always close to impossible to see how ICOs like Multicoin end up after being launched. But, we believe that it has a lot of potential due to its ability to make a hedge fund based program that’s not only innovative, but easier for first time users to work with its platform.
If you’re interested in using managed fund services to help leverage your crypto assets, Multicoin Capital might be a great project to invest in.
Are there any questions that you have about Multicoin or crypto hedge funds in general?
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Disclaimer: Investing in Initial Coin Offerings and cryptocurrencies is highly speculative and risky. And this post is not encouraging readers to invest in Multicoin, cryptocurrencies, or ICOs.