T50 (website) is a new tokenised index fund. If you like Invictus Capital’s C20 then you will like T50 because it is pretty much a clone. This is a good thing because it allows investors to add some diversification to their portfolio.
What’s the same?
- ~13% dilution due to tokens issued to founders
- 1% annual fund management charge
- 10% cap on any coin in the portfolio
- Weekly re-balancing (although they hope to move to monthly re balancing when the market matures)
- users can ability to liquidate to Ether using a smart contract with a 1% fee
There are some differences between T50 and C20. As the name implies, T50 invests in the top 50 crypto-assets which like C20 they will rebalance weekly although they hope to move to monthly rebalancing when the market matures.
The unique selling point of T50 is access to the ICO market. This is a very clever idea, 7% of the funds raised will be invested in a wholly owned partner company the Tripterium Venture Capital Feeder Fund and early investors will be members of the the Tripterium Founders Club.
Most ordinary investors don’t have the skills, time, energy or capital to invest in early stage ICOs. Just as in traditional venture finance you want to get in early at a low valuation and then bring the product to market with higher valuation and sell to
suckers retail investors. The fund managers will invest in early stage companies with the goal of boosting the returns to the fund. They will take a performance fee of 11.5% of distributed profits. This is striking similar to Invictus Capital’s Hyperion fund.
The Tripterium Founders’ Club is good idea. The fund managers will use the relationships they establish with the management teams of ICOs to give T50 investors enhanced access to those companies. Benefits might include opportunities to make follow-on investments.
The CEO of Tripterium is Ken Omoya. I spent an hour with him in the pub and he is clearly a talented entrepreneur and he seems to have assembled a good team. The whitepaper is absolutely sound.
The risks with Triperium T50 are the same as they were were with C20 when it launched.
- Will the ICO go smoothly?
- If the soft-cap is not reached will you get your money back without any hassle?
- How long will it take to get an exchange listing?
The longer-term risks are the same as with C20
- will the fund managers be honest custodians
The Tripterium Venture Capital Feeder Fund is both a positive and negative risk. If the managers are good or lucky or the market goes up then it will be a nice little earner. However if the managers make bad choices then this could be a drag on performance. I note that if T50 raises $10m then the VC fund will be $700k which offers less economy of scale or opportunity for diversification than the larger Hyperion fund.
Triperium T50 is a good product and if the management can execute it well is should a form part of many investors portfolios.
Caveats and disclaimers
The author has investments in one or more of the funds discussed and other crypto-assets. You should not make any investment without doing your own research.