Pantera Capital to Raise $100 Million in Investment for ICO Hedge Fund

[bbc.reporter]

I am confused on what will happen next in the cryptospace. I read a lot of news that the SEC will start coming after the issuers of these ICO tokens that have amassed millions from the public while other news are saying there will be more investment in ICOs by the hedgefunds.

I assume the hedgefunds have made consultations with lawyers before making the decision on dedicating millions to invest in ICOs?



The $600m market for initial coin offerings may soon be set to expand.

Announced today, investment firm Pantera Capital is launching a new hedge fund focused on investments solely in tokens that power public blockchain protocols.

Called Pantera ICO Fund LP, the fund intends to raise $100m, with $35m already raised in support from the firm's existing investor base, undisclosed new investors, and according to the company, unnamed venture capital firms. The new fund will complement Pantera Bitcoin Partners, a joint investment fund launched by Pantera, Fortress, Benchmark Capital and Ribbit Capital in early 2014 to invest in the cryptocurrency.

Read the article http://www.coindesk.com/100-million-pantera-capital-ico-hedge-fund/

[Spoetnik]

Banks ?
ICO ?

LOL 

If i see any of them IRL i will punch them in the fucking face.

[Snail2]

This was something to be expected, but I have some ambivalent feelings. More money and acceptance are good for crypto, but hedgefunds...

[shifty30]

more ico crazyness

[bbc.reporter]

Banks ?
ICO ?

LOL 

If i see any of them IRL i will punch them in the fucking face.

No you wont. There are many people who have said the same thing but did nothing.

@shifty30. Yes more craziness is coming, but why are those hedgefunds and celebrity venture capitalists so confident in the cryptospace that they are willing to invest hundreds of millions. Are they not worried of the government authorities like the SEC? Did they do their research and have found out there is nothing to be worried about?

[Raxitto]

The aim of the joint venture is to redefine how the market analyzes the tokens of the initial offers of the currencies, safely and with greater liquidity to accelerate the development of the market. Lack of liquidity has been a significant impediment to market development. This topic has received much attention since the issuance of the SEC's opinion on DAO No. 81207/25 of July 2017, where it made clear that any digital token with an income stream needs security and, in addition, tokens can only be traded on a regulated exchange or a National Securities Exchange.
In the current environment, ICO issuers now face a dilemma - either they should try to create a token that does not meet the SEC definition, or they must meet that definition and give up the liquidity that is being publicly traded.

[Mc_Moneysack]

On the one hand this is a good thing as it gives ICOs more legitimacy, if it is accepted as a mainstream investment opportunity. On the other hand can I already see the fund buying large amounts of tokens at a highly discounted price during a round for private investors and then dumping it on the market once the token hits exchanges.