Union Foursquare Ventures & Andreessen Horowitz Inject $10 1000000 Into Polychain Capital, A Cryptocurrency Hedge Fund

Polychain Capital, a digital currency & blockchain-based digital property hedge fund led yesteryear one-time caput of run a jeopardy officeholder at Coinbase, Olaf Carlson-Wee, has raised $10 1000000 from Union Square Ventures together with prominent bitcoin investor Andreessen Horowitz.

The San Francisco-based Polychain Capital volition hold upward looking to purchase into diverse blockchain tokens alongside specific role cases together with applications inward the existent world, “Disproportionate returns volition instruct to holders of the tokens rather than investors inward somebody companies built on meridian of the protocols,” states the Polychain Capital’s Angel page.

Carlson-Wee told Forbes in that location are many potential investment opportunities beyond bitcoin-focused startups, “There volition hold upward many types of assets codified into the blockchain, together with they are all non but going to hold upward on the bitcoin blockchain — it’s going to hold upward a publish of unlike assets here. And the best agency to invest inward that is a diversified portfolio,” he explains.

The 26-year-old entrepreneur believes these blockchain-based, P2P-style networks volition eventually supersede around of the centralized social media, finance & cloud storage companies on the mesh today.

And ane of the ways for institutional investors to turn a profit from this tendency is to compass exposure to the tokens of these networks. Today, all digital currencies, including bitcoin, are worth roughly $14.3 billion, according to information gathered yesteryear Coinmarketcap.com!

While this figure may non seem overly impressive when compared to another industries, Carlson-Wee tells Forbes’ Laura Shin that a sizable constituent of online economical action may guide hold house on these decentralized services inward the close future, which may propel the value of some of these networks together with their tokens into the hundreds of billions.

Carlson-Wee’s predictions may come upward to pass, but bulk of choice digital currencies guide hold struggled over the yesteryear few years to hold their valuations. Even ether - the token of the much-hyped Ethereum smart contract network together with the instant around valuable digital property afterward bitcoin - has dropped unopen to 60% since May of this year.

An analysis done yesteryear cryptocurrency analytics site WooBull.com of 118 digital currencies that achieved a marketplace capitalization of at to the lowest degree $250,000, shows how poorly the vast bulk of these digital assets guide hold performed when compared to bitcoin:

However, in that location are a few exceptions similar gaming-focused digital currency Gamecredits, privacy-focused Monero together with Storjcoin, the token of the P2P Storj cloud storage network, which guide hold non lost value over the yesteryear 2-3 years.

At press time, the Polychain Capital page entirely displays a curt disclaimer together with the e-mail address of Olaf Carlson-Wee.