Quarterly Report — Q4 2017
This is an extract of the Astronaut Capital Quarterly Report. You can download the full version by clicking here.
About
Astronaut is an asset manager that engaged in operations of funds management as of 01 November 2017. The company utilizes the expertise of Picolo Research for trading and investment decisions.
Following an initial coin offering (ICO), approximately $2.2m of capital was deployed in the market. Astronaut pays quarterly distributions based on net ‘realized profit’ taking into account appreciation of core currencies, altcoins and exit proceeds from ICO’s. Exactly 50% of this profit is paid to ASTRO token holders.
Market Overview
The cryptocurrency market has experienced significant volatility in the past quarter with several key events driving price increases of major tokens and cryptocurrencies. The introduction of Bitcoin on regulated futures markets paired with the growing media coverage of the overall segment has introduced a level of instability that likely will not subside for some time.
Despite ongoing volatility, the market capitalization of cryptocurrencies has increased almost ~$300m since November 1st with almost 42% of this attributable to BTC.
Initial Coin Offerings
Astronauts mandate is specifically geared towards gaining exposure to undervalued ICOs with a view to liquidate on a 3–12 month basis. The fund’s goal is to utilize the experience of Picolo Research to recreate a similar track record in a completely streamlined and managed manner. Some of our past performance can be viewed here.
Since November 1st 2017, Astronaut Capital has invested in three token sales with an average marked return of +220%.
Since the inception of the fund, suitable ICO opportunities have temporarily declined. Several factors including seasonal (holiday period), increasing crypto/gas prices and heightened regulation have caused many delays in token sales, instead opting for fundraising at the start of 2018. The recent surge in Bitcoin has also resulted in many investors weighing up the opportunity costs of contribution to ICOs vs exchange listed exposure that provides immediate liquidity. Our expectation is that this is a temporary lull given the number of quality listings that are starting in January 2018.
Based on the track record of Picolo Research, Astronaut anticipates that large token sale returns will likely materialize only after a period of four months. A very short initial quarter (56 days) has not allowed the fund to liquidate any ICO holdings, and as such, will not be counting such exposure towards the quarterly investment return.
Outlook
Despite significant growth in the Astronaut portfolio in as little as 56 days, the team forecast that future distributions will be substantially higher going forward. With very little time for ICO performance to materialize, such time restrictions have not allowed Astronaut to show its true potential and capability in the ICO investment market.
Our outlook for Q1 2018 remains extremely positive. With an increase in FUM and a large amount of new and high-quality token sales, Astronauts goal is to achieve the same level of market leading returns that its exclusive research arm (Picolo Research) has done since 2016.
Astronaut Holdings
Astronaut Capital has continued to hold a diversified portfolio of altcoins and major cryptocurrencies to spread risk and maximise swings in market volatility. The vast majority of listed coin exposure has been accumulated during times of significant market sell-downs.
Approximately 90% of the portfolio is liquid, providing little exposure to assets that cannot be exited in the short term.
Illiquid/early assets
Several assets that have been entered into at ‘ICO-stage’ are still to be considered illiquid or not viable to factor into performance measures due to the following:
- liquidation period is too early due to the nature of the investment
- the token has just listed on an exchange
- the token has an associated bonus attached in the short term
- the token has not yet listed on a viable exchange
Astronaut Performance
Astronaut has experienced exceptional capital growth from its underlying assets with returns exceeding 170% since the fund’s inception.
The vast majority of performance appreciation is due to the rise in the value of held cryptocurrencies and listed altcoins. While the performance does not include a substantial amount of ICO holdings, the net figures for the first quarter have exceeded initial expectations of growth, ROI and liquidity.
Distributions to token holders
Astronaut Capital will be sending performance distributions to ASTRO token holders proportional to the amount of tokens (ASTRO) they hold as of the snapshot date.
Distributions are subject to the following conditions:
- distribution is sent in Ethereum (ETH)
- 50% of ‘realized’ profits are distributed
- ‘realized’ profits are deemed as those assets that are listed with sufficient liquidity and aren’t subject to restrictions due to lock-ins, future bonuses or non-liquidity
- calculations are done via a ASTRO ‘snapshot’ on or after the 26/12/2017
From the CEO
Less than three months ago, an all-star team of research analysts and traders embarked on a journey together with over 1700 loyal contributors to create a unique asset management service that would benefit the community through transparent and strategic crypto investment.
It has been only 56 days since the launch of Astronaut Capital and we are delighted to provide our first Quarterly Report to the ASTRO community.
In a few short weeks of ups and downs with ample volatility, Astronaut has been able to sufficiently grow beyond expectations, in terms of fund performance, market feedback and collaboration with the community.
We are extremely pleased by the loyalty of our community that has an ever-growing desire to learn about new and innovative blockchain startups. Furthermore, we are humbled by the everlasting support each ASTRO holder provides as our venture could never succeed without the help and feedback from everyone involved.
Astronaut has had a fantastic first quarter (or 2/3rds of a quarter) by any measure. Our expectation is that through consistent innovation, hard work and collaboration with our token holders, 2018 will be an even more promising year as some of our longer-term investments have time to grow.
On behalf of the entire team, I would like to take this opportunity to say thank you for your trust, support and dedication to Astronaut.
Together, we will continue to push the barriers of asset management and will stop at nothing to ensure that our token holders are always achieving the best possible returns in the crypto market.
We look forward to a record 2018 together.
Welcome aboard,
Matthew Dibb
Pilot & Commander
This is an extract of the Astronaut Capital Quarterly Report. You can download the full version by clicking here.
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Taxation and Investment Disclaimer
Astronaut and its affiliates do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only, and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any transaction. We disclaim all liability and responsibility arising from any non-compliance placed on such materials by you or any other visitor to Astronaut or by anyone who may be informed of any of its contents. This is not investment advice.
