Blockchain tech and digital tokens have opened up whole new fundraising avenues for tech companies. The terms “ICO” and “ITO” (initial coin/token offering) are starting to appear everywhere. But how do you decide which are worthy of attention?
Jake Brukhman is a co-founder at CoinFund, an investment portfolio devoted entirely to the blockchain token space. Jake draws on his background in fintech and hedge funds in New York City to examine trends in a fast-changing environment.
Jake’s other co-founder at CoinFund, Aleksandr Bulkin, wrote a piece titled “Cryptoeconomics Is Hard” — because every new token is itself a new economy, with different attributes.
What CoinFund Looks for in Token Offerings
Jake explains to Automata hosts Daniel and Jon exactly what that means. He goes into depth about the kind of due diligence CoinFund undertakes when deciding what tokens to include in its investors’ portfolio.
The world of blockchain tokens and ICOs is transforming the startup space, he says, with companies now preferring to raise funds this way than through traditional VC channels. But is it the right way to do things? What about regulation? Don’t the SEC, IRS and CFTC have something to say about all this?
Listen to the interview and you’ll learn enough to sound knowledgeable at your next meetup. Beware, though, investing in blockchain tokens isn’t recommended for those unfamiliar with the industry’s trends. You’ll also need a stomach for volatility even more wild than the world of Bitcoin.
Jake also explains why the future is all about decentralized exchanges, social networks and insurance companies, and how they’ll all co-ordinate their separate blockchain economies to deliver better services.
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