With over 5 years of crypto investing experience, we rode all the ups and downs and have produced consistent outsized returns even before all the hype surrounding bitcoin and blockchain gained mainstream attention. This is by far one of the biggest wealth generating opportunities of this generation and will have a profound affect on a wide range of industries and the global economy in general. Our job is to help you separate the value from the hype with a diversified crypto portfolio.
*Historical performance of $1000 invested in the top 20 cryptos
The HODL fund invests in the top crypto currencies (measured by market cap) and is regularly re-balanced to ensure no individual coin takes over the portfolio. This is the best way for investors to get long-term exposure to the crypto market, and should definitely be a cornerstone in any crypto portfolio. The fund will also generate cash flow through OTC arbitrage trading while protecting the principal investment.
HODL means to hold on to your investments in the face of uncertainty.
No one has any idea what will happen to cryptocurrency prices in the short-term. But as a HODLER, you believe that the price and value of cryptocurrencies will increase in the long run.
Systematic market risk is inescapable. As with the saying, “a rising tide lifts all boats” and a falling tide sinks all boats. Conversely, unsystematic risk is a choice, as is the case when investors chase moonshots. This is not necessarily a bad thing, and you can make A LOT of money trying to pick big winners like this.
However, on average, most investors don’t benefit from taking on unsystematic risk. If the history of the stock market tells us anything, most investors are really bad at beating the market. Over the last 15-year period, 95% of active funds failed to beat index funds. The crypto market is not the same as the stock market, but it's still a good idea to have a least part of your portfolio tracking the market, so if your individual bets don't work out, you at least have a diversified crypto index that you believe will win in the long term.
That is to say, if you’re as confident in the crypto market as we are, then it is wiser to bet your money on the entire cryptocurrency market rather than test your luck picking individual coins.
The Mining Fund invests in the infrastructure that powers blockchain technology, confirms transactions, and generates new coins (mining and masternodes). Currently only masternodes are deployed because of their ease of deployment and scalability, but the fund will also be investing in mining equipment and platforms to generate semi-passive crypto income.
A masternode is simply a cryptocurrency full node or computer wallet that keeps the full copy of the blockchain in real-time, just like your have Bitcoin full nodes and is always on and connected to the internet. But in addition to these standard node functions, masternodes can also perform the following functions with variations depending on the specific coin:
- Increasing privacy of transactions
- Executing instant transactions
- Participating in governance and voting on major decisions that affect the coin
- Enable budgeting and treasury system in cryptos
Just like with our HODL fund, we are building a diversified portfolio of masternode coins to generate passive income and also take advantage of long-term price appreciation. However, this class of coin is not as developed as the overall crypto market and presents a greater risk, thus holds a smaller position in our overall portfolio.
The Block Fund is our crypto venture arm that invests in blockchain-enabled startups, micro cap coins, and private tokensales. The focus is primarily market segments that are enabled or made more efficient through blockchain technology, like Bandwagon, and the hardware that powers it not just blockchain for the sake of blockchain projects. Most things people try to apply blockchain to don't actually need a blockchain and sometimes are even made worse with the addition of blockchain, which are relatively slow and expensive compared to centralized systems.