Investors before Blockchain Enthusiasts (2 min read)
While we are strong believers in the potential of blockchain technology, we are alternative asset investors before we are blockchain enthusiasts. When we came together as a team in 2017, there were people on two sides: one side thought blockchain technology would solve all of the world’s problems, and the other side thought blockchain technology would only be used for nefarious activities. One of the key motivations in building our firm was that we felt strongly that both of these viewpoints would be proven wrong over time. Blockchain technology will likely usher in massive disruption for some industries, but it will also be limited in its effect on others. Just like the internet, blockchains do not have to solve every problem in the world to create enormous value.
As investors, it is our job to look at the different investment outcomes probabilistically and to build a portfolio based on this information.
Our mandate is to get broad exposure to the growth of this foundational technology and optimize our strategy to be successful in multiple future worlds. We believe this is the best way to achieve the highest risk-adjusted return over a long period of time. Responsible and strategic investing is at the core of everything that we do. We strive to build a strategy that benefits; whether blockchain technology does take over major parts of our lives or it remains a niche solution for highly inefficient legacy systems.
As a result, this approach has helped us perform consistently through tough market conditions and with a rapidly changing investment landscape. We will be the first to admit that blockchain technology is in its infancy and much needs to be figured out before mainstream adoption can happen. A great deal can change as the products in the space evolve and achieve product-market fit. While unlikely now, blockchain-based currencies may turn out to be worthless. With this in mind, our strategy tries to manage exposure to the broad adoption of blockchain technology instead of betting on the long term success of an individual application of the technology.
As the market matures and the products develop, we will continue to invest responsibly and strategically in the underlying technology; making it our ultimate goal to be successful regardless of how and where blockchain technology truly achieves mainstream adoption.
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Disclaimer: This is not an offering or solicitation. This is not investment, tax, legal, financial or any other type of advice. Please perform your independent research and due diligence.