Everyone wants to be part of the cryptocurrency and blockchain industry. It is growing fast and many enterprises and individuals are investing on it. Of course, investing in cryptocurrencies is risky if you incur into debts. Reddit’s co-founder Alexis Ohanian will focus on initialized capital. This venture capital firm will invest in cryptocurrencies and blockchain technology.
Cryptocurrency and Blockchain Investments
The interest for cryptocurrencies and blockchain technology has been increasing during the last months. At the moment there are different possibilities for traditional investors to place their bets on this interesting market. Mr Ohanian sees that cryptocurrencies and blockchain are the future itself. The intention is to invest in companies that are starting or an in an early stage of development.
This kind of investment, if well analysed, may have the potential to substantially increase the capital invested. If all these companies that are just starting evolve into something more important, the ROI can be very high. There is a possibility that these companies will not last long, making of this, a risky investment.
Some enterprises in which this company is investing at the moment are Coinbase, Instacart, and Soylent. Other investments are focused in blockchain and cryptocurrency companies. In just six years, Initialized Capital has gone from $250 million dollars to $20 billion.
At the moment, Initialized Capital did not explain in which companies it’s thinking to invest in. If it wants to keep increasing its capital, then it will be necessary to make the right choices. Every single day there are new blockchain enterprises that look profitable for the future, but it is not clear whether they will be able to develop or not.
Similar investments are ETFs listed in different stock markets. For example, Innovation shares NextGen Protocol ETF (Koin). This ETF focuses on crypto and blockchain companies and its aimed to institutional and traditional investors.
The company has developed an AI process tat allows it to find the best blockchain companies to invest in. Most specifically, the index behind Koin focuses in cryptocurrency as a means of payment, solutions providers and adopters.