Get Sequoia Capital and Andreessen Horowitz privately supported encrypted currency hedge funds


nnnIn the case of a hedge fund, which has been invested in encrypted currency, it has so far received a return on investment of over 500% and has quietly received a number of top-class winds including Andreessen Horowitz, Sequoia Capital, Investment company investment. This is the MetaStable Capital, an entrepreneurial hedge fund in San Francisco. Basically, we have barely heard of this company, so what is it that attracts so much of the top venture companies for its platform, and what makes it so high for the return on investment? Let us follow the “Fortune” magazine to find out.n
nnTranslation: Clovern
nThis is a highly experienced hedge fund that takes over the currency when it is released. One of its founders is AngelList’s famous CEO, Naval Ravikant. This fund is supported by a number of Silicon Valley top venture companies and has a return of more than 500%. But you may have never heard of it.n
nThen let us know this quietly established in San Francisco venture capital hedge fund MetaStable Capital, the fund only to invest in Bitcoin and the ether square and other encrypted currency. Since its launch in September 2014, MetaStable has achieved such stunning performance, and it is clear that these figures are self-explanatory; it intends to avoid propaganda and never announce its recent financing activities.n
nNevertheless, “Fortune” is still learned a lot of details. According to several venture capital firms and other sources who know the fund, in the spring, venture capital firm Andreessen Horowitz, Sequoia Capital, Union Square Ventures, Founders Fund and Bo Shangfeng (Bessemer Venture Partners) have invested in MetaStable.n
nIt is noteworthy that this is Sequoia Capital’s second investment in the 45-year history of investment companies involved in the investment chain chain-related companies; and its first investment chain chain company is at the beginning of this year to invest in Polychain Capital, And the Anderson, Guangcheng venture, Founders Fund and Bo Shangfeng venture to participate in the investment of 200 million US dollars.n
nHowever, compared with MetaStable, Polychain is more welcomed by the press (its founder Olaf Carlson-Wee boarded the “Forbes” the latest issue of the cover). The company’s strategy is also different: Polychain is focused on investing in other chain-chain companies through the so-called initial digital currency issue (or ICO) – the investment style is more like a venture capital – and MetaStable invests directly in what it thinks can be a A new currency in the form of a currency.n
nMetaStable currently has a dozen different encryption currencies, including Bitcoin, one of the co-founders of the company, Lucas Ryan, who was initially available free of charge in 2011, according to the financing plan that Fortune magazine saw. Monroe (the fund holds nearly 1% of Monroon in all outstanding digital currencies, worth about $ 6 million).n
nMetaStable’s third co-founder, Josh Seims, said the fund has taken a value investment approach, similar to “you think about what Buffett has done, but the use of these terms in this area is somewhat contradictory, because everything is so Short. “An example in the financing plan illustrates the fund’s skills in the” Bitcoin crisis investment “, which is an investment philosophy like Buffett, that is, when someone else is worried about investing: In the last year, the main encrypted currency exchange Bitfinex was hacked, the price of Bitcoin fell more than 20%, fell below $ 550, while MetaStable in the next few hours to seize the opportunity to double the deposit bit currency. And since then the price of Bitcoin has quadrupled even more.n
nSeims told Fortune magazine that MetaStable would pay close attention to the practical use cases of various digital currencies to take at least ten years for the most reliable candidate digital currency, as it went to grasp the market opportunity or buy new chain-chain trends Betting. “In some of these main use cases, it can be said that at least five to ten are the trillions of dollars worth of chain chains, which is a long-term focus, and we think we are now in the early stages,” he said. “We have seen this as a powerful technology, and we think we will get the benefits.” (So far, MetaStable has also demonstrated its advantage in avoiding the value of things: last year the company did not participate in the DAO ‘s tokens are sold and accurately predict that the project will be hacked; and it also avoids the encrypted currency Steem, which is also largely proved to be a failed project.n
nAs of mid-March, MetaStable’s main fund in the short term achieved a return of 539%, which in 2017 two and a half months before the 86% return (bit currency prices rose nearly 28%).n
nSince then, the price of Bitcoin and Monroe has risen more than 1-fold; at the same time, the value of the tower is more than five times its four months ago (so far, the price of the currency has risen by more than 2,300%), The This means that MetaStable’s return is actually much higher than the returns listed in the March presentation. The person who has a close relationship with the fund company simply says that it has “surpassed the bit”. Which makes its return in 2017 at least 170%, and may be far more than this. According to “Fortune” estimates, MetaStable since the establishment of the proceeds has now more than 1000%.n
nIt is worth noting that, according to hedge fund standards, the amount of funds is relatively small, which makes it very easy to publish a substantial return figures. However, in the emerging industry of encrypted currency hedge funds, MetaStable seems to be a heavyweight company. “Forbes” recently released a report to its assets as $ 45 million, but this figure is in the past few months before the encrypted currency price surge. According to a source close to the fund, MetaStable’s portfolio value has more than doubled in May. On June 23, after the collapse of Bitcoin and Etherfair prices, it was reported that the total assets of the hedge fund’s regulatory documents amounted to $ 69 million.n
nIt is common for venture capital firms to invest in other funds (Sequoia Capital-supported start-up accelerator Y Combinator is the best example) when they can choose to invest in the company (Or “general partner”) or the actual fund managed by the company, or invest in both. For Polychain, Union Square Ventures says it supports the company, but it will also put some money into hedge funds.n
nAdequate capital also attracts a large number of other encrypted currency hedge funds to test the water personally. According to Hedge Fund Alert, at least 15 of these funds have been launched and started, and as many as 25 funds are in the preparatory stage.n
nInvestors should be aware that there will be similar restrictions and high costs to traditional hedge funds: MetaStable requires a minimum investment of $ 1 million and a “2/20” rate mechanism for its funds to collect assets 2 % Of the management fee, 20% of the profits commission. While the risk of a larger fund is charged 1.5% of the management fee, 25% of the profits commission.n

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