Facebook is both the best and the worst company to be behind the ambitious Libra cryptocurrency project (detailed review by TechCrunch). Given their billions of users and enormous financial resources, there are few others who can jump-start a global digital currency better than Facebook. At the same time, Facebook has one of the poorest track records in terms of user data protection and privacy, making that a constant point of contention regardless of the merits of the project. Whether directly or indirectly, Facebook has single-handedly legitimized blockchain technology and changed the ecosystem forever.

There were two obvious themes from the…


We recently learned that our flagship fund reported the #1 performance for Q1 and Q2 2019 of all actively managed funds that report to Crypto Fund Research. This means we have surpassed over 50 funds globally that deploy a wide range of strategies.

As you can imagine, this was a big moment for our team; but it also forced us to think about the implications of this performance. We began to ask ourselves some tough questions, two of the most important are discussed below:

  • Funds that are #1 in a given period often lag in future periods, so how do…


While we are strong believers in the potential of blockchain technology, we are alternative asset investors before we are blockchain enthusiasts. When we came together as a team in 2017, there were people on two sides: one side thought blockchain technology would solve all of the world’s problems, and the other side thought blockchain technology would only be used for nefarious activities. One of the key motivations in building our firm was that we felt strongly that both of these viewpoints would be proven wrong over time. Blockchain technology will likely usher in massive disruption for some industries, but it…


There is a reason that 94% of surveyed endowments gained exposure to blockchain investments during 2018. It is unlikely that 94% of endowments CIOs have had all their concerns about blockchain investments resolved. So why are they gaining exposure to this emerging and nascent asset class? One major reason is that blockchain investments have continued to serve as a strong hedge against political and economic instability.

The effectiveness of a hedge in portfolio construction can be estimated using correlations between the assets. We compared active and passive benchmarks for blockchain investments to broad traditional market benchmarks such as…


Investing in early-stage ventures is inherently risky. At the same time, venture capital investors enjoy some of the highest returns of any asset class. Therefore, prominent investors such as David Swensen, the Chief Investment Officer of the Yale Endowment, allocated almost 17% of the endowment to venture capital in 2017. Investors with exposure to companies such as Airbnb have been well compensated for the risk.

One way to look at the volatility of the crypto market is to compare it to traditional venture capital. As the traditional markets for venture capital are highly illiquid, there is little to no price…

Plutus21 Capital

Plutus21 Capital is an investment firm focused on blockchain technology and digital assets. DISCLAIMERS: http://bit.ly/p21disclaimers

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