Though some ICOs undoubtedly offer exceptional investment opportunities, they can be difficult to spot, particularly for the mainstream investor without a technical background.
With the launch of Bitcoin futures contracts and the likelihood of ETFs in 2018, cryptocurrencies are opening up to financial institutions and hedge funds. The question for ICO investors is when they can also expect to move into the financial mainstream.
Waves Plans ICO “Basics Fund”
Blockchain platform Waves has just announced the launch of The Basics Fund, its own venture capital fund specialising in ICOs and other blockchain projects, and aimed squarely at the regular investor. It will be run by asset manager Maxim Kuzin and Waves founder Alexander Ivanov.
The fund will invest in assets and pre-sale ICO tokens like a venture capital platform, and trade events and arbitrage opportunities like a hedge fund. It is looking to invest into startups with experienced teams who can combine strong technology with solutions to real-world problems.
According to Waves founder Alexander Ivanov, the fund will “showcase the strength of blockchain technology to a new market,” i.e. mainstream investors. Focusing on blockchain projects allows for new investment opportunities and more efficient fund management.
The buying and selling of tokens mean that ICOs are much more liquid than traditional VC investment and so costs are a lot lower.
Ivanov also stated that in addition to “actively furthering use cases for every sector” Waves was active in “shaping the regulatory landscape.” As reported previously, the platform recently partnered with Deloitte CIS and the Ethereum Competencies Center to create a membership organisation promoting self-regulation in the ICO space.
The fund aims to raise $10 million in January with a target of $30 million by April.