Corporate and Foundation Investment Arms

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Despite the current roller market capitalization market, there are signs behind the scenes showing the strength of the new incumbent cryptocurrency Coinbase $ 1 billion in 2017, the old 13-month Chinese exchange, Binance, is designed to make $ 1 billion in 2018 and cryptocurrency foundations, as Stellar hold tens of billions in cryptocurrency ready for implementation. All this new wealth is driving the creation of funds of investment by cryptocurrency companies and cryptocurrency foundations.

I sat down and talked to three different organizations, BitMEX, ConsenSys and Dash Core Group Inc, to learn more about why this is happening and what these new types of funds in dressing are looking.

BitMex, short for Bitcoin Mercantile Exchange, is probably the biggest cryptocurrency exchange you've never heard of. At the start of this year, BitMEX had the largest trading volume of any stock exchange in a single twenty-four hour period, with a total of 1MM BTC changing hands. BitMEX is an exchange exchange only Bitcoin, created for experienced operators, with the ability to offer a 100x lever for trading. I spoke with Max Shapiro, a venture capital associate with BitMEX to learn more about why they created a venture capital fund.

Shapiro explains,

We created the arm at the # 39 • beginning of 2018 with two objectives: 1) To grow the ecosystem by focusing on specific issues that are strategic for BitMEX. 2) Understanding all the opportunities and innovations that are occurring in this rapidly growing ecosystem

Bitcoin has pierced the $ 600 brand for the first time. & Nbsp; in two years & nbsp; at the end of 2016 and rose to almost $ 20,000 by the end of 2017. Companies like BitMEX and my company Bitwage had a new influx of funds that had to be put to work . At the same time, the number of new companies entering the sector has grown significantly: new startups financed by venture capital or as Initial Coin Offerings, institutional investors entering the commercial market and companies such as CBOE, ICE and Naver Line. The Bitcoin companies considered as start-ups only two years ago suddenly had the funds and the ability to sow new startups.

Shapiro continues by describing the investment areas that are interesting for BitMEX.

All our themes are linked to the traditional financial system, typically focused on encouraging institutional participation in the ecosystem. One of the big issues right now everyone is looking at is encryption. How can the custody of funds with the same level of vigor of the traditional financial system be successful? We will also analyze investments that are not directly related to cryptocurrency, but are complementary, such as IT security and anti-money laundering solutions.

While Bitcoin may have led the charge in terms of rising prices and trading activity, Bitcoin is not the only cryptocurrency ecosystem with companies that build risk weapons. ConsenSys, an ethering consultancy, software development and infrastructure organization for a thousand people, started its activities in 2017. I spoke with Kavita Gupta, founder of ConsenSys Ventures and former investment analyst for the investment branch of the World Bank, to learn more about the new initiatives of ConsenSys.

Consensys has four main branches: Labs, which has incubated over 48 products, such as Metamask, Infura and Truffle. Solutions, an advisory arm to develop solutions for government and businesses. Academy that provides training for developers. ConsenSys Capital is the last of the four, an external financial market group created in 2017. We decided to create ConsenSys Ventures as a separate legal entity to have more autonomy. The goal of ConsenSys' initiatives is to support projects in the space that do not make sense to incubate from an initial phase, but it is still worth bringing them to the market.

Gupta goes on to talk about what ConsenSys Venture is interested in,

We are not a liquidity player, we are a strategic player. We are not just capital, we work closely with companies to help them speed up their projects. With thirty-three offices all over the world, we help companies gain international visibility. We have invested in about ten companies so far. Previously we were 100% focused on Ethereum, however we have since become 90% focused on Ethereum, while the other 10% has been assigned to blockchain agnostic technology for infrastructure, network security, scalability and so on. Application levels are still 100% focused on Ethereum.

When we talk about encrypted company VCs, we see that the "strategic" investment of the world presents itself a lot. However, unlike BitMEX, where the strategy focuses more on the goals of the company's interest in the ecosystem, the definition of ConsenSys is more how they can help accelerate companies in their chosen missions.

Unlike Bitcoin and Ethereum, the two largest networks in terms of size, as well as the number of companies operating in the ecosystem, there are other networks of public blockchains. While not having a plethora of extremely profitable companies, they have significant value to implement through their tokens. Dash is one of these networks.

Currently the 13th largest cryptocurrency, with a market capitalization of $ 1.2 billion Dash attempts to differentiate itself through a structured and decentralized governance model lacking in Bitcoin and Ethereum. I spoke with Ryan Taylor, CEO of Dash Core Group and a former associate associate McKinsey, to learn a little more about the governance model and how it allows corporate investments.

Dash was originally a non-profit foundation. Similar to other foundations, such as the BTC and LTC foundations, it was very difficult to get donors. Beyond that, once the money has been donated, depending on the foundation function, the use of funds is rather limited. We have created a new structure that has never been created before by creating Dash Core Group Inc., a Delaware C Corp. 100% of the company's shares are issued by a trust. The beneficiaries of the trust are masternodes, users with over 1000 token tokens that provide governance and manage the blockchain. This means that Dash Core Group Inc. is owned by the network we serve. Although we are a C-Corp, we do not have strong motivations for profit, and instead, we draw our resources from the Dash Treasury System.

To describe Dash Treasury, you need to understand how most other cryptocurrencies work. Generally 100% of transaction fees and new currencies go to miners. However, in Dash, we realized that while network security is important to incentivize, we also want to boost network connectivity, maintenance and node development. In this way, 45% of the taxes and new currencies goes to the miners, 45% go to the main nodes and then the last 10% enters a treasury once a month.

Anyone can submit a proposal to the treasury and the masternodes to vote on whether to finance projects, paid monthly. At the current valuation, $ 1.5 million in tokens are added to the treasure every month. You can see the current list of proposals at dashvotetracker.com . Dash Core Group is funded almost entirely through the Treasury, which is therefore able to engage on behalf of the network as a C-Corp, with business development, software development, marketing, operations and even customer support for users.

Taylor continues by describing how the network finances projects,

Current proposals that pass concern low-risk projects. This means financing integrations or marketing costs for integrating Dash into existing companies. Funding also occurs for sponsorships, conferences, radio programs. Some external examples include Alt-36, a cannabis payment gateway in Arizona and Kuvacash, a new electronic payment gateway in Zimbabwe.

The Treasury will fund Dash Ventures, a new entity created by the Dash Core Group that will allow for investments in higher risk applications. The risk group is designed in such a way that its revenue stream from profitable investments can be used to purchase Dash with USD. Taylor believes that this should have either a stabilization or upward pressure on the currency, which benefits the whole ecosystem.

The nice thing is that anyone can create their own group financed by the Dash Treasury, as long as the masternodes approve the proposal. We believe that there will be different Dash Ventures with different cards. Some may be purely motivated by profit, regardless of the connection to Dash. Others may be focused on profitable investments involving Dash. A third could only be related to the social impact and infrastructure in relation to the Dash ecosystem.

Despite the relatively small market share of tokens such as Dash, these ecosystems have funds to invest in companies, start-ups and entrepreneurs. While most eyes have focused on the shiny Bitcoin price item, that show does not define the industry. The volume of transactions is still over $ 10 billion a day and there are a lot of unexplored niches and the capital needed to get into them. Speculators may have taken a beating, but those focused on real value are doing well.

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Despite the current market capitalization, there are signs behind the scenes that show the strength of the new cryptocurrency incumbents: Coinbase earns $ 1 billion in 2017, the old 13-month Chinese exchange, Binance, is designed to make $ 1 billion in 2018 and cryptocurrency foundations, such as Stellar , hold tens of billions in cryptocurrency ready for implementation. All this new wealth is driving the creation of investment funds by cryptocurrency companies and cryptocurrency foundations.

I sat down and talked to three different organizations, BitMEX, ConsenSys and Dash Core Group Inc, to learn more about why this is happening and what these new types of investment funds are looking for.

BitMEX, short for Bitcoin Mercantile Exchange, is p Robustly the biggest c exchange of cryptocurrencies you've never heard of. At the start of this year, BitMEX had the largest trading volume of any stock exchange in a single twenty-four hour period, with a total of 1 million BTCs switching hands. BitMEX is an exchange exchange only Bitcoin, created for experienced operators, with the ability to offer a 100x lever for trading. I spoke with Max Shapiro, a venture capital associate with BitMEX to learn more about why they created a venture capital fund.

Shapiro explains,

We created the arm at the # 39 • beginning of 2018 with two objectives: 1) To grow the ecosystem by focusing on specific issues that are strategic for BitMEX. 2) Understanding all the opportunities and innovations that are occurring in this rapidly growing ecosystem

Bitcoin has pierced the $ 600 mark for the first time in two years at the end of 2016 and has risen to nearly $ 20,000 by end of 2017. Companies like BitMEX and my company, Bitwage, had a new influx of funds that needed to be put to work. At the same time, the number of new companies entering the sector has grown significantly: new startups financed by venture capital or as Initial Coin Offerings, institutional investors entering the commercial market and companies such as CBOE, ICE and Naver Line. The Bitcoin companies considered as start-ups only two years ago suddenly had the funds and the ability to sow new startups.

Shapiro continues by describing the investment areas that are interesting for BitMEX.

All our themes are linked to the traditional financial system, typically focused on encouraging institutional participation in the ecosystem. One of the big issues right now everyone is looking at is encryption. How can the custody of funds with the same level of vigor of the traditional financial system be successful? We will also analyze investments that are not directly related to cryptocurrency, but are complementary, such as IT security and anti-money laundering solutions.

While Bitcoin may have led the charge in terms of rising prices and trading activity, Bitcoin is not the only cryptocurrency ecosystem with companies that build risk weapons. ConsenSys, an ethering consultancy, software development and infrastructure organization for a thousand people, started its activities in 2017. I spoke with Kavita Gupta, founder of ConsenSys Ventures and former investment analyst for the investment branch of the World Bank, to learn more about the new initiatives of ConsenSys.

Consensys has four main branches: Labs, which has incubated over 48 products, such as Metamask, Infura and Truffle. Solutions, an advisory arm to develop solutions for government and businesses. Academy that provides training for developers. ConsenSys Capital is the last of the four, an external financial market group created in 2017. We decided to create ConsenSys Ventures as a separate legal entity to have more autonomy. The goal of ConsenSys' initiatives is to support projects in the space that do not make sense to incubate from an initial phase, but it is still worth bringing them to the market.

Gupta goes on to talk about what ConsenSys Venture is interested in,

We are not a liquidity player, we are a strategic player. We are not just capital, we work closely with companies to help them speed up their projects. With thirty-three offices all over the world, we help companies gain international visibility. We have invested in about ten companies so far. Previously we were 100% focused on Ethereum, however we have since become 90% focused on Ethereum, while the other 10% has been assigned to blockchain agnostic technology for infrastructure, network security, scalability and so on. Application levels are still 100% focused on Ethereum.

When we talk about encrypted company VCs, we see that the "strategic" investment of the world presents itself a lot. However, unlike BitMEX, where the strategy focuses more on the goals of the company's interest in the ecosystem, the definition of ConsenSys is more how they can help accelerate companies in their chosen missions.

Unlike Bitcoin and Ethereum, the two largest networks in terms of size, as well as the number of companies operating in the ecosystem, there are other networks of public blockchains. While not having a plethora of extremely profitable companies, they have significant value to implement through their tokens. Dash is one of these networks.

Currently the 13th largest cryptocurrency, with a market capitalization of $ 1.2 billion, Dash attempts to differentiate itself through a model of structured and decentralized governance, lacking in Bitcoin and Ethereum. I spoke with Ryan Taylor, CEO of Dash Core Group and a former associate associate McKinsey, to learn a little more about the governance model and how it allows corporate investments.

Dash was originally a non-profit foundation. Similar to other foundations, such as the BTC and LTC foundations, it was very difficult to get donors. Beyond that, once the money has been donated, depending on the foundation function, the use of funds is rather limited. We have created a new structure that has never been created before by creating Dash Core Group Inc., a Delaware C Corp. 100% of the company's shares are issued by a trust. The beneficiaries of the trust are masternodes, users with over 1000 token tokens that provide governance and manage the blockchain. This means that Dash Core Group Inc. is owned by the network we serve. Although we are a C-Corp, we do not have strong motivations for profit, and instead, we draw our resources from the Dash Treasury System.

To describe Dash Treasury, you need to understand how most other cryptocurrencies work. Generally 100% of transaction fees and new currencies go to miners. However, in Dash, we realized that while network security is important to incentivize, we also want to boost network connectivity, maintenance and node development. In this way, 45% of the taxes and new currencies goes to the miners, 45% go to the main nodes and then the last 10% enters a treasury once a month.

Anyone can submit a proposal to the treasury and the masternodes to vote on whether to finance projects, paid monthly. At the current valuation, $ 1.5 million in tokens are added to the treasure every month. You can see the current list of proposals on dashvotetracker.com. Dash Core Group is funded almost entirely through the Treasury, which is therefore able to engage on behalf of the network as a C-Corp, with business development, software development, marketing, operations and even customer support for users.

Taylor continues by describing how the network finances projects,

Current proposals that pass concern low-risk projects. This means financing integrations or marketing costs for integrating Dash into existing companies. Funding also occurs for sponsorships, conferences, radio programs. Some external examples include Alt-36, a cannabis payment gateway in Arizona and Kuvacash, a new electronic payment gateway in Zimbabwe.

The Treasury will fund Dash Ventures, a new entity created by the Dash Core Group that will allow for investments in higher risk applications. The risk group is designed in such a way that its revenue stream from profitable investments can be used to purchase Dash with USD. Taylor believes that this should have either a stabilization or upward pressure on the currency, which benefits the whole ecosystem.

The nice thing is that anyone can create their own group financed by the Dash Treasury, as long as the masternodes approve the proposal. We believe that there will be different Dash Ventures with different cards. Some may be purely motivated by profit, regardless of the connection to Dash. Others may be focused on profitable investments involving Dash. A third could only be related to the social impact and infrastructure in relation to the Dash ecosystem.

Despite the relatively small market share of tokens such as Dash, these ecosystems have funds to invest in companies, start-ups and entrepreneurs. While most eyes have focused on the shiny Bitcoin price item, that show does not define the industry. The volume of transactions is still over $ 10 billion a day and there are a lot of unexplored niches and the capital needed to get into them. Speculators may have taken a beating, but those focused on real value are doing well.