Initial Coin Offerings
Investing in Initial Coin Offerings (ICOs) can be a very profitable venture; getting in at the beginning of a cryptocurrency launch when the coin is cheap can be very lucrative. Take for example Etherium, buying Ether at ICO stage was about $0.30-$0.40, Ether’s all-time high (ATH) was more than $1,400! Of course, picking the winners is easier said than done. ICOs are rife with scams, unproven technology, inexperienced teams, the list goes on. It seems like every company wants to jump on the ICO bandwagon and make millions overnight. With an estimated $5.6 billion raised through ICOs in 2017 and according to Bitcoin.com, 46% of all of 2017’s ICOs had failed by February 23rd, 2018. Can The Hyperion Fund help navigate the dangerous waters of ICO investing?
Invictus Capital
Enter Hyperion, a managed fund specializing in ICO-Presale, ICO, and SAFT (simple agreements for future tokens) investments. Hyperion was created and managed by Invictus Capital, who themselves launched Crypto20 (C20); an (Index Fund tracking the top twenty cryptocurrencies by market cap) through ICO in 2017. C20 was one of the top 25 ICOs launched in 2017 and the coin and company are still going strong at the time of writing this article. Invictus Capital has a very active community; their Discord Channel is full of knowledgeable, investment savvy individuals and all seem to be very strong supporters of C20 and very confident of its future gains. The large pool of capital of the Hyperion fund will allow investors to gain the benefits of ICO-Presale which usually have large discounts to public ICO, this is usually a privilege only available to very high net worth individuals and companies.
Hyperion Fund
The Hyperion Fund uses computer learning to filter through the thousands of new ICOs being launched to remove the low quality and plagiarised content. One such tool Hyperion uses is “The Titan AI Plagiarism Tool“. This tool is capable of detecting plagiarised content in whitepapers even if the content has been re-ordered or different words substituted to mask the plagiarism. Titan has a database of whitepapers that grow by community submission (members submit whitepapers for review) and also by scraping tools the Invictus Capital team have developed to search the web for new ICO whitepapers. The Titan tool uses similarity and clustering to create similarity trees and also Predictive Feature Discovery and Analysis to determine if the whitepaper has been plagiarised.
After initial filtering, the Invictus Capital team will both manually and with the use of more AI begin assessing the remaining ICOs. Part of this due diligence process is “Code Quality Analysis”; the Invictus team will request for access to the code used for this blockchain from the developers to test and ensure it can do the tasks it’s supposed to do. Full code analysis is too labor intensive for a small team to manually complete for every potential ICO investment, so Invictus have developed and are curating AI tools to help with this process.
The Hyperion Fund will run as a venture capital fund investing in early-stage blockchain and cryptocurrency based projects. It will invest in a diversified portfolio of companies from a wide range of sectors. This ensures less risk and less exposure to any single sector. Hyperion will not invest in ideas, it requires a minimum viable product (MVP), as well as a strong team with a good track record, people with technical and business development knowledge, originality of product, value proposition and potential market capitalization, differentiation from competition and knowledge of the industry.
The fund’s tokens that are held by the Invictus Capital team will vest over two years to ensure that team incentives are aligned with ICO participants. The Hyperion fund will charge a 12.5% performance fee per quarter. This performance is based on fund profit in USD terms. The fund is hard capped at 15M USD and once it reaches a threshold of 30M USD dividend payouts will be activated. Dividends will be automatically paid out in Ether to the token holder at the end of each quarter.
The Hyperion fund timeline is as follows:
- Closed ICO – A priority access period, which includes a 5% discount ($0.095 USD/token), will be provided to Crypto20 ICO investors or people who can prove ownership of >500 C20 tokens using a verification tool.
- Open ICO Begins (3rd May 2018)
Day 1-4 0.097 USD
Day 5-7 0.099 USD
Week 2 0.100 USD
Week 3 0.105 USD
Week 4 0.110 USD
Conclusion
Given the 1,000s of ICOs being launched, as well as the numerous scams and low-quality products, it can be very difficult to decide on which projects to invest in. Having a team of people and computer learning to find the best projects and then using a large pool of capital to acquire cheaper investment entry points is very enticing for me, because of business commitments I simply don’t have time to invest in researching the many projects out there. However, for the full-time cryptocurrency investor, you may make better gains due to not having to pay fund management fees.
Check out the Hyperion Fund White Paper By Clicking Here
