Category: Investment

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NEO Decentralisation Process to be completed by the end of 2018

Categories Blockchain, Cryptocurrency, Investment, NEO

NEO Decentralisation Process to be completed by the end of 2018

In summer NEO announced the election of a new consensus node as well as proudly re-joining the top-10 cryptocurrencies as per market cap in the world. Up until this point, all nodes were operated by the NEO project’s team.

July 2018 was a good day for NEO as more than $400 million was purchased in just 24 hours, catapulting the currency to 10th position, up 17.6% at the time of writing.

In order to run the new consensus model, the NEO team have elected the City of Zion which is an independent, global group of NEO developers who have been running a candidate node on the testnet since January of this year.

NEO even now benefits from a webpage that tracks the blockchain’s operational status such as the number of consensus blocks and candidate nodes, the block height, and the block times.

This recent announcement comes at a time when NEO had faced criticism for the monopolistic management of its nodes. News that it is now controlled by community consensus means that it could enjoy a surge in popularity. One Twitter user tweeted:

“My only problem with NEO initially was that I thought it was so centralised. Has that changed?”

NEO Founder and CEO Da Hongfei stated:

“We have to be very careful with decentralization of the consensus nodes because the protocol of NEO is evolving very fast. We need those consensus nodes to act very quickly to upgrade, and if there is a bug or a security issue, we need them to respond very quickly. So we’re doing the decentralisation process slowly, gradually and very carefully.”

According to the Timeline of NEO Decentralisation Process, the change over of the remaining nodes to the mainnet system will be completed by the end of 2018.

If you have any questions in relation to ICOs, please contact us on [email protected]

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VC firm speculates that blockchain could be worth trillions

Categories Blockchain, Cryptocurrency, ICOs, Technology, Investment, Venture Capital

VC firm speculates that blockchain could be worth trillions

A New York-based venture capital firm, Union Square Ventures that manages over $1 billion in assets, has given the cryptocurrency investing industry a big boost by saying about its belief in the potentially worth of trillions in the future.

The leading VC firm has already heavily invested in the popular San Francisco-based cryptocurrency exchange, Coinbase. However, it currently has no plans to launch a stand-alone fund.

Investors could strike it rich

Managing Partner, Albert Wenger told CNBC that his firm was investing in the “foundational plumbing” of the industry. He also added that he believes it is not completely crazy to consider that investors could strike it rich should they invest in the right project.

“Investors are rationally pouring a lot of money into this sector because I think people are seeing the winning blockchain here might be worth a trillion, or a couple of trillion dollars. It’s not at all crazy to think that.”

He added:

“Certainly, for any one particular project, there’s an extremely high chance it won’t work. As a result, if it works, the rewards will be very high.”

$330 million cryptocurrency fund

Wegner’s firm is the main competition for Andreessen Horowitz’s Silicon Valley Venture Capital (VC) firm who recently announced that they were launching $330 million in a cryptocurrency fund. The fund will focus primarily on the non-speculative use cases of blockchain technology.

When it comes to investing in crypto and blockchain, Wegner doesn’t think that Bitcoin is the way to go. Rather than placing all bets on BTC, he advises an approach of cautious diversification that is able to yield the best results. He explained:

“I don’t think you should be in the space and say ‘I’m only going to hold bitcoin.’ At the moment, this whole space is a high-risk space, and I don’t think anybody should be investing all of their life savings.” He added: “The stuff that actually works will float to the top. It might take a while, but time will tell.”

To learn more about ICO Legal Services in Malta please follow this link.

Contact us directly on +356 20103020 or by email at [email protected] to find out more.

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$1 Trillion of VC investments to become liquid through tokenisation

Categories Cryptocurrency, ICOs, Tokenomics, Tokens, Investment, Cryptoeconomics, Venture Capital

$1 Trillion of VC investments to become liquid through tokenisation

Institutional and large capital investors are increasingly looking at the crypto market as a way of finding new investment opportunities, as well as solving issues they are facing in traditional markets.

Take venture funds for example; investors have to commit their investments to sit in a startup for between 3-7 years, and an estimated $1 trillion is currently held in such a manner, with no room for movement. This results in a situation where profitability is reduced as well as the overall efficiency of their holding. Of course, if the project is successful, the investor is set to receive excess profit but there is never a guarantee of the project meeting the yield expectations, let alone getting back the funds that were invested in it.

Venture capitalists are always treading a fine line because if the project fails they lose everything they invested, but just the fact that they are investing for long periods of time means that they miss out on other opportunities to generate revenue.

A study was conducted by Cambridge Associates that looked at the performance of 27,000 venture startups over the last 20 years. It was found that the amount of venture projects that returned less or the actual amount of invested capital never exceeded 60%. So let us consider that out of the $1 trillion of investments, 60% will return the amount invested in seven years, this could take $600 billion away from the global economy.

The tokenisation of venture projects could offer a solution to issues surrounding liquidity, as well as reducing the risk of investors and making VC assets more attractive. Security tokens can offer investors a range of financial right such as dividends, equity, a share in profits, voting rights, and buy-back rights. These transactions can be completed over the blockchain and crypto investors would be able to gain access via depositories or wallets that are registered in a decentralised ledger.

This development of tokenised venture assets is already well under way and one company, VNX Exchange in collaboration with ADDCAPITAL are planning to issue tokens for $20 to finance venture products. They will also be used to create high yield projects, allow early venture capital withdrawal, and greatly expand the range of qualified venture investors that have the possibility of investing.

It is believed that such new dynamics would have an extremely positive impact on the development of startups, change the culture of investing and fundraising for entrepreneurs, and significantly boost the global economy.

If you have any questions in relation to ICOs, please contact us on [email protected]

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Malta as a fund jurisdiction

Categories Malta, E&S Group, Funds, Investment

Malta as a fund jurisdiction

Over the last few years, Malta has firmly established itself as a prime jurisdiction for hedge funds, UCITS Schemes, investment funds, and retail funds. No longer considered as an emerging finds domicile, it offers investors a range of sophisticated investment vehicles for a range of different purposes.

But why is Malta such an attractive jurisdiction and why has it been so successful in attracting investment opportunities? Here are some of the reasons.

  • Malta offers a favourable fiscal regime which has created a range of business models that would be unfeasible elsewhere.
  • Malta offers sound and comprehensive regulation which both considers the needs of businesses whilst ensuring the protection of investors.
  • Malta’s regulator is highly approachable and is willing to consider new ideas and structures whilst ensuring a high level of regulatory and legal compliance.
  • As a fully-fledged EU Member state since 2004, Malta offers easy access to the European investments market.
  • In Malta, all manner of applications is handled quickly and efficiently ensuring fast turnaround times.
  • There is no requirement to have a local fund administrator and businesses have a high level of flexibility when it comes to choosing service providers.
  • Malta offers the opportunity to use self-managed structures.
  • Protected cell company (sub-fund) legislation makes way for the creation of ring-fenced pockets of liabilities and assets within the same legal entity.

Collective Investment Schemes

Malta provides investment fund managers with a range of vehicles that can cater to a number of investor types and strategies. The majority of these are created as SICAVs which are investment companies with a variable share capital but there is also the option of creating an INVCO (an investment company with fixed share capital), a contractual arrangement, a partnership, or a unit trust. These can all be used for a number of fund types, including but not limited to UCITS funds, retail funds, private collective investment schemes and professional Investment funds.

Professional Investor Funds

The Professional Investor fund is the Maltese hedge fund and has proven itself to be the most popular type of fund in the local market. The PIF is extremely flexible and provides fund managers with a product that is for the most part immune to investment restrictions and leverage. Therefore, a PIF can be used as a vehicle that can conduct innovative or unusual investment strategies as well as being only sold to investors that meet certain sophistication criterion.

Malta also offers a variant of the PIF that can be sold to investors with a low minimum investment amount of just EUR 10,000 subject to certain leverage restrictions.

E&S Group is able to assist with the structuring and setting up of funds as well as providing ongoing advisory services. We can provide all drafting services as well as managing relations with the applicable regulatory authorities. To find out how our expertise can help you, contact us today by sending us an email on [email protected]

 

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