Protos Prepares ICO For New Crypto Hedge Fund Launch

Sep 1 2017 | 5:13pm ET

Protos Cryptocurrency Asset Management, one of the first data-driven hedge fund managers in the cryptocurrency and digital token space, has announced plans to hold an initial coin offering (ICO) aimed at raising capital for investment into cryptocurrencies and tokens.

The launch is the latest in a rash of alternative investment startups spawned by the incredible returns coming out of the once-derided cryptocurrency sector over the past 18 months. 

The Protos ICO presale is scheduled for September 25, 2017 and the public ICO is expected to start on October 17, 2017, according to a statement. The tokens will be securities issued under the exemption from registration with the U.S. Securities and Exchange Commission pursuant to Regulation D’s Rule 506(c). Unlike traditional hedge fund and venture capital LP investments, the ICO has no lock-up beyond the statutory 12-month holding period under Reg D, and is expected to be liquid once traded on cryptocurrency exchanges.

The offering is being managed by a unit of Los Angeles-based investment bank Argon Group, which specializes in the field of cryptocurrencies and ICOs.

Protos intends to apply institutional asset management rigor to cryptocurrency and digital token investing and inform its strategy by capturing and analyzing the necessary market data, the statement continued. The Protos token will aim to accrue value based on the investment returns that Protos earns through its investments in cryptocurrencies, such as Bitcoin, Ether and Litecoin, as well as existing and new blockchain-based digital tokens.

“We are unlocking the second major investing wave in cryptocurrency and once data on the market exists, we anticipate seeing an explosion in trading strategies similar to that experienced in stock trading,” said Philipp Kallerhoff, co-founder of Protos, in the statement. “We are driving this second wave with the goal of benefiting our token holders through our crypto trading strategies.”

“The first revolution was the PC, the second was the Internet, and we feel the third is now distributed applications based on Bitcoin-like cryptographic technology,” added co-founder Thomas Kineshanko. “To invest in the first two computing revolutions, you [were] required to buy shares in companies, but to invest in the blockchain revolution, you have to purchase tokens.”

Protos Cryptocurrency Asset Management was founded by Kallerhoff, Kineshanko, and First Block Capital executive Matthew Shaw earlier this year. Agron Group, meanwhile, provides financial advisory, placement, and technical placement solutions, including digital tokens powered by advanced smart contracts, to the nascent cryptocurrency & blockchain ecosystems.

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