"Safe harbour for capital growth and preservation in a highly volatile crypto market" Can anybody explain this to me? Why is this safe? Is this not affected by the volatility of cryptocurrency?
Since FND is not tied to either BTC or ETH, your investments will not be affected by other cryptocurrencies price fluctuations. Thus, it is safe for investors that can purchase tokens with their cryprocurrencies and thus hedge their investments and avoid high volatility of cryptocurrencies.
In general, this is safe, because the dual strategy of combining early access to high growth companies with a diversified private equity portfolio run by professional managers offers a safer harbour for capital growth and preservation in a highly volatile market. Rather than invest in individual companies, which may or may not succeed, the fund invests in the industry as a whole, insulating investors from individual company price fluctuations. Essentially, it provides protection from the possible crypto market correction. Please also note that Finles Capital Management, the manager of the Lowestoft Private Equity Fund, is not a high-risk start-up as the overwhelming majority of similar projects.
This makes absolutely no sense. You are trying to say that if the price of Bitcoin drops to $10, it will have NO effect on FND?
This answer has just ruined this thread.
Bitcoin is the main cryptocurrency, and if it drops by 99+%, of course, it will influence the whole cryptocurrency and blockchain world.
However, when FNDs are bought - either with a cryptocurrency, or with a fiat currency - they remain denominated in Euros, and the FND value will remain in Euros, thus allowing the investors to avoid the volatility of cryptocurrencies. Also, since 70% of the fund will be invested in more stable traditional alternative investment strategies –the private equity - the value of the FundCoin tokens is connected to the performance and the returns generated by the Lowestoft Private Equity Fund. Finles will invest up to 30% of the fund in other VC funds that support the blockchain sector, and 70% in traditional, alternative and Private Equity investments. The values of other cryptocurrencies, like Bitcoin or Ether, have no backing at all and are merely determined by the market itself. Thus much more risky and very sensitive for volatility, in contrast to FundCoin.