Token fever is taking hold in Bitcoinland.
Call them ‘token sales’, ‘initial coin offerings’ or just plain ‘ICOs’, the idea that funding a new project can be as simple as creating cryptographically unique units of data, linking them to a blockchain and selling them to the public is attracting venture investors and web crawlers alike.
Yet, if there is some shape to a sometimes senseless market (where millions are raised in minutes on white papers and web pages alone), it’s being defined by Polychain Capital – one of an increasing number of ‘crypto hedge funds’ that have sprung up to buy stakes in what’s being heralded as a new asset class.
Unique to Polychain, however, is the $10m mandate its received from VC firms Andreessen Horowitz and Union Square Ventures. The message sent in the December announcement was clear – a shadowy part of the crypto world was finally being opened for business.