Targeted at $600 million, our blockchain fund provides investors with the full spectrum of exposure to the blockchain space, ranging from illiquid venture capital assets (including early-stage tokens and multi-stage venture capital equity) to more liquid assets like bitcoin and other cryptocurrencies. Blockchain Fund strategy has three primary buckets of risk: venture equity, private early-stage tokens, and liquid tokens. Alkhonji Holding LLC manages $4.7 billion in blockchain-related assets since 2013. Here is how far we have come:
Alkhonji Holding venture fund offer investors actively managed, multi-stage exposure to companies building products and services in the nascent blockchain ecosystem. In 2013, Alkhonj Holding launched the first exclusively blockchain venture fund and has subsequently raised two more since. Most recently, Alkhonji Holding successfully raised $175 million for its third fund. Venture fund invests primarily in private equity of early-stage businesses focused on building out blockchain capabilities across various industries and commercial functions.
Having deployed capital into the blockchain venture capital market across three venture funds over eight years, we have established a strong reputation, allowing us to invest into many of the leading entrepreneurs in the ecosystem. Following a similar strategy to Alkhonji Holding Venture Fund III ($175mm fund), the venture equity sleeve of Alkhonji Holding Blockchain Fund will invest approximately 40% of the capital raise in core infrastructure globally. That would be $240mm of a $600mm fund – or just a bit larger than our last fund in 2018.
Areas to invest include DeFi, institutional-grade tools, custody, insurance, marketplaces, payments, the creator economy, developer tools, and security/compliance.
Early Stage Token Fund
Liquid Token Fund
Early-stage tokens are very similar to venture equity in that these projects are early stage, but the difference is that value will accrue to tokens where holders of the tokens own a piece of the protocol and get to provide governance. The token becomes more valuable as it is used within the product, ties to other benefits, and allows for more influence on decision-making. Roughly $180mm or 30% of the target raise will be allocated to early-stage tokens, following a venture-style model. Early-Stage Token Fund is a discretionary vehicle offering global investors exposure to early-stage tokens with liquidity horizons of 1-3 years. The Fund invests in teams building new protocols in the blockchain ecosystem and follows an early-stage, venture-style model.
Decentralized finance and marketplaces will be the primary areas of focus, but investments will span a range of use cases with large addressable markets.
A multi-strategy vehicle that typically invests in 15-20 liquid tokens at any point in time. The fund is predominantly driven by a discretionary strategy focused on decentralized finance and adjacent assets. The remainder of the fund uses a quantitative strategy, trading on an hourly frequency.
Alkhonji Holding launched Liquid Token Fund in 2017 to invest in liquid, publicly traded tokens with uses cases beyond digital gold. Alkhonji Holding Liquid Token Fund has confirmed the thesis that active portfolio management can generate outsized returns compared to passive investments in assets like bitcoin or ethereum. Year-to-date, Liquid Token Fund has returned 378%, versus bitcoin which is up 62% over the same timeframe.
We will select projects led by world-class teams, with strong and differentiated use cases, enthusiastic communities, and priced attractively in comparison to a fundamentals-based valuation. Combined with an active risk management overlay that utilizes technical and on-chain indicators, we expect our liquid token investments to continue out-performing industry benchmarks across stages of the market cycle.
Arbitrage trading is the closest you’ll get to a guaranteed profit.
Arbitrage trading is a relatively low-risk trading strategy that takes advantage of price differences across markets. Most of the time, this involves buying and selling the same asset in different markets. This is most commonly done between identical assets traded on different markets.
Traders compete ferociously to get the opportunity to enter these types of trades. For this very reason, profits are generally very slim in arbitrage trading and depend heavily on speed and volume per trade. That’s why most arbitrage trading is done by algorithms developed by high-frequency trading (HFT) firms.
At Alkhonji Holding LLC, We constantly need to compare prices for different assets on different markets to arbitrate and search the best option. For this purpose, DigiMon has created a special software - Matic Engine.
The Matic Engine software allows us to track the floating price difference of assets in real time. The software allows us to have a stable and guaranteed income from each transaction.