While some investors scramble for the latest crypto opportunity, other more traditional types are on the fence, unconvinced of the risks and uncomfortable with losing their hard-earned capital in a young volatile and unregulated market. With this in mind, Mirox Crypto Ltd feels it has a created a unique concept, which provides a more managed approach for crypto investing by providing security and market education to their clients.
The firm and their team of advisors from the Token Lounge have recently launched a fixed income bond to a limited class of investors. The new bond combines a hedging strategy that covers any underperforming investment and structures them into three levels of risk; Mining, Initial Coin Offerings (ICO's) and Trading.
City A.M.’s Crypto Insider met with Mirox Crypto Director, Benjamin Beal, to get an inside track on what the bond aims to do.
Benjamin Beal stated, "We created the bond as a large number of investors are looking into crypto, but feel the market is too unstable and they don’t have the sector knowledge to invest strategically.”
“At any one time, there are countless projects claiming to create new solutions to industry problems through crypto and blockchain technology. We identify the best opportunities and structure investments in a strategic way to help provide security over our clients funds.”
“Specifically, we have identified three areas within the crypto market that come with different levels of risk. We see investment into crypto mining rigs as having the lowest exposure as its asset backed, and we have assessed a number of projects in Europe that require additional funding. ICO's are the next level up, as our experts and partners are able to asses which of the opportunities available are more likely to succeed. Finally, crypto trading is the most volatile and therefore the riskiest of the three.”
“We have partnered with a UK firm that has a consistent and proven track record in profit creation. Their strategy incorporates arbitrage and delta neutral, which recent audits confirmed as more than sufficient in covering off any risk exposure within the chosen crypto portfolio, ultimately a gearing of 1:2, ensuring they were fully hedged.
“We have gone so far as to be able to fully indemnify the strategy through leading underwriters within the London markets which protects capital and interest. We feel this strategy is unique as it enables us to provide investors with an opportunity to position some of their portfolio in crypto with the comfort that capital is protected.”
Recent data has shown a volatile market within crypto, but the simple fact is this market is here to stay. However, it will take time for it to fully mature and for those that are looking for fixed returns and peace of mind, the Mirox Crypto Bond could be a great addition to their portfolio.
For more info on the bond check out www.mirox-crypto.com