Smart money and due diligence — why our funding deal is significant

As you may be aware, a crypto fund has recently bought into Photochain, with a purchase of 25 million PHT — 13.9% of total funds available plus an option to acquire a further 4.6% of PHT tokens. For more info, please see here.

This fund buys into a selected circle of high quality ICO’s, after which they promote the fund to institutional investors as a means to participate in a high performing investment portfolio. Funds play a crucial role in traditional financial markets and it is an honor for Photochain to be selected in this capacity.

We wanted to take the time and explain why this fund’s involvement is such a remarkable seal of approval from the professional crypto community.

Due diligence and understanding of the project

All investment funds have the same end goal, to generate as high as possible returns for their investors. In their eyes, they are selling a highly rounded, potentially very rewarding investment opportunity to their own investors.

Therefore, they conduct a lot of prior analysis and due diligence on all considered investments, as they want to ensure the long term prospects of the project are there.

They look at the team, their ability to execute, the business plan, growth ambitions, the industry, the customer base, ease of use and many many more things.

Significant token price returns

With Photochain what they saw was a project that has the technical ability to execute on their ambitions — namely to take 10% of the $4 billion annual revenue of the stock photography industry. This equates to $400 million in just under 2 years.

As Photochain guns towards this initial goal, they expect our token price return to be highly positive for their investors, generating a significant return on investment. They are with us for the long term and expect Photochain to be a very valuable proposition in the near future.

Smart money and first mover advantage

Based on the length and depth of analysis and due diligence prior to making a decision to buy into Photochain — funds can be considered as “smart money”. The smart money looks beyond what a project is doing now, considering a long term outlook.

Smart money also recognizes when to get into a project early, so that they can get the most benefit of financial reward for their own investors. This fund got in at the earliest possible stage to ensure that they will get the maximal benefit from Photochain’s long term growth.

Our thoughts on the funding deal

Stanislav Stolberg, Photochain’s CEO:

Crypto funds have a job to do — and they want to do it to the best of their ability. This means finding and investing into the best ICOs and blockchain projects out there.

Not only do they recognize our business ambitions, but they have looked at ability to execute on this. How many times have we seen ICOs fail to deliver on their promises? Crypto funds have done their research into our entire team and have understood that we have the technical capabilities to create exactly what we say we will.

Haris Rana, Photochain’s Chief Marketing Officer:

What we must remember first and foremost is that Photochain is a business model. Whilst our buyers and sellers come first, by being provided a fair and transparent photography trading marketplace, Photochain must also accrue value itself. Funds recognize that we understand this, have laid out our business plans and ambitions in our whitepaper, and have the capabilities to execute on this.

It is an exciting deal for us, but it is also highly gratifying that funds are showing the same faith we have in ourselves. In the years to come this faith will be returned.

What does our community say about this deal

imperialGDP on our bitcointalk thread

For a fund to want to invest, it must mean that they do not expect to get burnt by this investment, especially when the time comes for PHT is listed on exchanges. Also they must see a long term growth for this project — as a fund’s business model is about making good investments for their clients. So they are placing a lot of confidence in Photochain.

Fund investors have been burnt a lot by the December hype, so now they are being smarter and looking at the smart projects to invest in.

kusumadewi

This is an excellent example of the confidence “smart money” has in Photochain- excited to hear more details when approved to release

termion

It will be the first-movers, the smart money, that buys into Photochain early that will be rewarded most. These funds have certainly done their homework when it comes to making ICO buying decisions.

tarolog

Funds base their decision to invest not only by looking at a projects elements, but also its token dynamics and future returns. They need to ensure their investors get a good return on their fund’s assets — so they have faith in Photochain’s token price return.

Our ICO is open. Join now at photochain.io