Token Report: most tokens are speculative instruments

Token Report states that only 1 out of 10 tokens really comes in use nowadays
25 October 2017   766

More than 200 Initial Coin Offerings raised over $3 billion during 2017. Token Report, a large ICO database, analyzed the use of tokens from 226 coin sales and found out that only 10% of tokens are actually used in running their networks following the sales. For different undiscovered reasons all the other projects did not work out and their tokens could be only traded.

The U.S. Securities and Exchange Commission highlighted that some tokens can be considered to be securities as they are not in use, and this can lead to fines and judicial proceedings.

If the coin is regulated as a security, rather than a utility, that limits how it can be traded and raises questions about whether developers are prepared to comply with securities regulators.

Galen Moore
Co-founder and chief executive,Token Report

The Commodity Futures Trading Commission issued a Primer on Virtual Currencies on October 17, stating that virtual tokens can fall under its authority.

Thuswise, investors remain at risk that the projects that their tokens are supposed to run on will never be implemented.

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Pantera Capital to Intend to Raise $175M for Crypto Fund

Whether the firm can achieve its funding goal is still unclear
16 August 2018   185

Pantera Capital intends to raise up to $ 175 million for its third venture fund, focused on the blockchain and cryptocurrencies, which marks significant progress against the background of the company's other two funds: the assets of the first of them are $ 13 million, the second - $ 25 million. This is reported by TechCrunch.

As reported, company's partner Paul Veradittakit says the target amount is a “function of how fast the space is moving, the talent coming in, the opportunities, and the sizing of rounds. With more interesting later-stage investments [on our radar], too, we want to be flexible and able to move with the market.”

Whether the firm can achieve its funding goal is still unclear. According to documents recently sent to the US Securities and Exchange Commission (SEC), it has already managed to raise more than $ 71 million with the participation of 90 investors. Veradittakit calls this event "the closing of the first transaction".

One of the company's new funds, which opened last year, has a hedge fund structure and focuses exclusively on the ICO. The founder of the company Dan Morehead said earlier that Pantera takes part in the first stages of such campaigns, "basically getting a discount to the ICO price by getting in early, when it’s just a team and a white paper."

The second fund of the company is engaged in investing in bitcoin and has managed to serve a large number of investors during its existence. According to Morhed's calculations, the fund, launched 5 years ago, demonstrated a return of 10 136%.

The last fund Pantera invests in cryptocurrencies, which are already traded on the exchanges. It uses machine learning for algorithmic investment and takes into account the views of the company's management when making investment decisions.