Polychain Capital, a digital currency & blockchain-based digital property hedge fund led past times old caput of run a jeopardy officeholder at Coinbase, Olaf Carlson-Wee, has raised $10 1000000 from Union Square Ventures as well as prominent bitcoin investor Andreessen Horowitz.
The San Francisco-based Polychain Capital volition endure looking to purchase into diverse blockchain tokens alongside specific role cases as well as applications inward the existent world, “Disproportionate returns volition become to holders of the tokens rather than investors inward someone companies built on summit of the protocols,” states the Polychain Capital’s Angel page.
Carlson-Wee told Forbes at that topographic point are many potential investment opportunities beyond bitcoin-focused startups, “There volition endure many types of assets codified into the blockchain, as well as they are all non simply going to endure on the bitcoin blockchain — it’s going to endure a break of dissimilar assets here. And the best agency to invest inward that is a diversified portfolio,” he explains.
The 26-year-old entrepreneur believes these blockchain-based, P2P-style networks volition eventually supercede around of the centralized social media, finance & cloud storage companies on the cyberspace today.
And 1 of the ways for institutional investors to turn a profit from this tendency is to hit exposure to the tokens of these networks. Today, all digital currencies, including bitcoin, are worth simply about $14.3 billion, according to information gathered past times Coinmarketcap.com!
While this figure may non seem overly impressive when compared to another industries, Carlson-Wee tells Forbes’ Laura Shin that a sizable component of online economical activeness may direct hold house on these decentralized services inward the close future, which may propel the value of some of these networks as well as their tokens into the hundreds of billions.
Carlson-Wee’s predictions may come upward to pass, but bulk of option digital currencies direct hold struggled over the past times few years to keep their valuations. Even ether - the token of the much-hyped Ethereum smart contract network as well as the 2nd around valuable digital property later on bitcoin - has dropped unopen to 60% since May of this year.
An analysis done past times cryptocurrency analytics site WooBull.com of 118 digital currencies that achieved a marketplace capitalization of at to the lowest degree $250,000, shows how poorly the vast bulk of these digital assets direct hold performed when compared to bitcoin:
However, at that topographic point are a few exceptions similar gaming-focused digital currency Gamecredits, privacy-focused Monero as well as Storjcoin, the token of the P2P Storj cloud storage network, which direct hold non lost value over the past times 2-3 years.
At press time, the Polychain Capital page alone displays a brusque disclaimer as well as the e-mail address of Olaf Carlson-Wee.