I find this project really interesting and would love to invest but I have a question:
If I understand correctly all the money in the fund has to be raised during the ICO and there is no way to increase the money under your management afterwards since you always pay out 85% of the profits, right? This seems problematic to me as you'll hardly be able to grow your business. The 10% management fee will always stay the same, so the 15% performance fee is your only additional stream of income. In your white paper you state as long term goals:
"Target Coin is set to become a leading crypto asset fund with more than $500 Mn assets under management by 2019."
How is this supposed to work if you don't raise that money during the ICO? Or am I completely missing something here?
Thanks for answering!
If I understand correctly all the money in the fund has to be raised during the ICO and there is no way to increase the money under your management afterwards since you always pay out 85% of the profits, right? This seems problematic to me as you'll hardly be able to grow your business. The 10% management fee will always stay the same, so the 15% performance fee is your only additional stream of income. In your white paper you state as long term goals:
"Target Coin is set to become a leading crypto asset fund with more than $500 Mn assets under management by 2019."
How is this supposed to work if you don't raise that money during the ICO? Or am I completely missing something here?
Thanks for answering!
Hi, Apologies for the late reply.
The 10% management fee is only for the first year and will be reduced to only 2% from second year onwards. We are charging 10% management fee for the development of TargetX (revenues of which will also be shared with our investors).
The investors who want to reinvest can buyback the tokens on exchange, helping the net asset value to grow.
The management team plans to reinvest all 15% of the profits back into the fund.
Also, depending on the investor interest, Target Coin plans to issue additional tokens in the 2nd financial year without diluting the existing investors' tokens.
Is it a change that after the 1st year it will be 2%? Or was this already in the Whitepaper (which would mean I missed it)?
Wouldn't it be more dependant on increasing or diminishing returns of scalability to issue more tokens? As at a certain level of capital diminishing returns might be the case for example as a consequence of lack of liquidity in these immature markets? Making such a decision based on investor interest would only be a big mistake in my opinion.
Besides this, what will the price of these tokens based on? As current investors might see this as a potential cap on token value. I already invested and might be interested to invest more, but this is something targetcoin needs to be very clear about in advance.
It sounds very vague, surprising and strange to me (to say that additional investor interest, which currently seems to be lacking, can be a reason to issue additional coins) anyway as the current ICO (leaving the pre ico out of consideration) looks not really succesful in raising funds as the ICO raised really little compared to most other projects.
