True Ventures leads $3M Series Seed in Fragments — A Low Volatility Cryptocurrency
San Francisco, CA. — Low volatility cryptocurrency platform Fragments announced today it has raised $3M in its Series Seed funding round led by True Ventures and includes Pantera Capital, Brian Armstrong, and Founder Collective. The Fragments protocol seeks to create “splitting currencies” capable of functioning as both near and long term stores of value.
Founded by Evan Kuo and Brandon Iles, the former CEO of Pythagoras and Google Search engineer, respectively, the two recognized a substantial need for diversification in the market. Currently, major cryptocurrencies are highly correlated, moving up and down together in price, which leaves very few actionable strategies for buy and hold investors.
Consequently, dips in price result in investors feeling locked in for indefinite periods of time, leading to a frustration over not having any control over when they can responsibly withdraw. “I believe this frustration will continue pushing the market to explore new assets, seeking optionality rather than consolidation, until sufficiently diverse assets emerge to ease the frustration of having to constantly time the market,” says Kuo. “One key attribute of Fragments is that they will move in a manner uncorrelated with major coins.”
Fragments was designed with the intent to converge on the characteristics of Nash’s Ideal Money, a theoretical solution to the conflict between short-term and long-term objectives when creating a world reserve currency. Their ultimate mission is to produce a fair and stable money for the world.
To stabilize price, the protocol uses an algorithmic monetary supply policy and dynamic reserve to increase and decrease money supply in response to demand. When the protocol needs to increase supply, it capitalizes a reserve and then splits — proportionally distributing tokens to wallets. When the protocol needs to decrease supply, the reserve automatically purchases tokens and removes them from supply in exchange for bonds, which are first in line to recapitalize the reserve under expansion.
“If we succeed in our mission,” says Kuo, “inflation will no longer be used as a bad word.”
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