Methodology Thesis

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Thesis

Our
Philosophy

We aim to counter the typical investment mentality in the crypto-asset marketplace by using traditional investment techniques, intending to provide information enabling our clients to reduce volatility and track the steady long-term growth of the asset class. Our focus is on facilitating sustainable, steady, long-term capital appreciation through close monitoring of the expansion of developed projects within the space, and the application of a controlled investment system.

Our vision is that, while many individual crypto-assets will come to the end of their life cycle in the near future, the crypto-asset space as a whole will continue to grow in utility, in order to provide financial conduits, secured by blockchain technology. As computer technology, in particular, continues to grow and control more of our daily interactions, we see crypto-assets becoming used with an increasing frequency on an expanding scale. We believe that a long-term capital appreciation mindset is a rarity in the market, with most crypto-asset investors focusing on short-term returns over short timescales, at the expense of establishing a fundamental value position in key technologies for the long-term.

Many of the more popular arguments against the efficacy of crypto-assets as financial instruments have focused overwhelmingly on the shortcomings of bitcoin. For example, the arguments that crypto-assets fail as a form of money by not fulfilling one or more of the criteria: store of value, unit of account, the medium of exchange. While this may apply to bitcoin or any other crypto-asset treated in isolation, there are many crypto-assets established in the marketplace, each with different strengths and weaknesses. As a complete set, crypto-assets are multi-faceted, diverse and dynamic. We believe that the market has the potential to outgrow the use cases of the existing fiat currency system in time, particularly in this technologically expanding era.

We understand that, due to their secure nature, crypto-assets are difficult to upgrade technologically once they have achieved a certain level of market penetration, as any changes to the technology must be approved by all users and to every node of the underlying blockchain. As a result of these difficulties, the early and initial technological merit of a project is of paramount importance, as this will be the key determinant as to whether the project survives and competes in the long-term, as compared to the predominantly marketing-driven boom behind short-term market price movement. This is why our technological evaluation of projects must be the most significant component of any fundamental analyses.

Our blockchain experts and extensive industry network advise and inform us appropriately on the relative merits and shortcomings of the varying technologies, which helps us to score each project and provide meaningful input to our valuation metrics and private software. Once our systems have interpreted the fundamental value of a proposition, we then enter into a data-driven technical analysis of an individual project and its attributes, relative to the other projects in the market.

We consider crypto-assets to be a novel area of undeniable merit amid the pre-existing investment infrastructure. Our view is that crypto-assets provide attractive diversification, and therefore any truly diversified savings and investment portfolio should include a small percentage of crypto-assets, held for the long term. We aim to provide the data and analysis necessary for this new class of investor.