- What motivates the CKC team to work on the project and to work in crypto?
- What makes CKC crypto fund stand out?
- What is CKC’s approach to volatility?
- How has the COVID-19 pandemic affected CKC's strategy?
- Do you have documentation about CKC that you can share?
- How big is CKC fund?
- How does CKC onboard investors?
"Helping investors diversify their wealth and increase their financial freedom via crypto ... [is] part of a virtuous cycle that in turn can also help grow a larger and more inclusive financial system that helps provide more people with greater access a global economy."
You can view the professional backgrounds of CKC founders David and Brendan here. For additional context in terms of what informs our vision, David’s research background as a world traveler and as a Fulbright Scholar in international social development makes him passionate about the bottom-up democratization potential of blockchain technology and cryptocurrencies. He sees his work — helping investors diversify their wealth and increase their financial freedom via crypto (often called “unbanking the banked”) — as part of a virtuous cycle that in turn can also help grow a larger and more inclusive financial system that helps provide more people with greater access a global economy (often called “banking the unbanked”). For more context on David’s philosophy, see here.
Relatedly, Brendan has a long-held fascination with inflation challenges around the world, and their effects on the global economy. In turn, he has become fascinated with the anti-inflationary potential of gold and precious metals, as well as of bitcoin (often called “digital gold”) and other cryptocurrencies by extension. Ultimately, he has witnessed firsthand the power of crypto investments to produce transformative financial results. For these reasons, he is enthusiastic about helping others maximize their benefit from cryptocurrency as well. See here for (external but related) reading on inflation challenges as related fiat currency.
Finally, the fund’s strategic partner, ChainBLX, is an alternative asset platform whose mission is to bring increased transparency and optionality to the overall alternative asset investment ecosystem for investors and funds alike, by enhancing liquidity opportunities, minimizing logistical overhead, increasing oversight, and heightening due diligence.
What makes CKC crypto fund stand out?
- Performance: Outperformed bitcoin (BTC) over a 5-year period by approximately 9X.
- Liquidity: Part of a private alternative assets exchange network where investors can rebalance into funds in fine art, litigation, AI, and beyond.
- Offshore-Advantages: Cayman islands structure with potential upsides for unrelated business taxable income (UBTI), unrealized capital gains, and more. Consult an investment advisor, tax and/or legal professional for details regarding your own specific situation.
- Technical and Security Infrastructure: Wide range of technical, security, and auditing technologies and partnerships to help protect our investors.
- Sidecar Partnerships: Beyond investment opportunities into the main fund, we are able to quickly and cheaply set up actively or passively managed separate vehicles for high-ticket investment amounts.
What is CKC’s approach to volatility?
It is certainly possible that there will be less volatility in the crypto market as it matures, and that this may make it more challenging to capture the kind of roughly 450X returns that our fund saw in the last 5 years. Additionally, as the fund scales, some of the tactics used for yield generation may not scale as quickly. That said, we are confident in our ability to continue to drive high value for our investors. First, we will continue to focus on small-cap investments that have outsized performance potential — we expect these opportunities to continue being accessible as the market matures. Second, as we increase our assets under management (AUM) will help drive improved collective bargaining power for investors (for example, providing greater ease of access to exclusive private sales with high yield potential). Third, as a hybridized/diversified crypto fund, we will continue to expand on the types of yield-generating tactics we employ.
How has the COVID-19 pandemic affected CKC's strategy?
Overall, we focus on a 5-year model with a diversified approach in terms of both currency allocations and value-add tactics, so nothing will fundamentally change. We were able to enter some of our positions at a discount during the earlier days of pandemic, and to sell later at a premium while holding major gains on other positions for the longer term. Corrections in the broader market in general as well as in the crypto market in particular are common occurences. When these occure, we generally aim to make additional opportunistic plays while maintaining a long-term approach for adding value to our investors.
Do you have documentation about CKC that you can share?
All of the documents on the website are periodically updated with the most recent data:
How big is CKC fund?
Fund 1 (operating over 5 years) has ~$3-4M in AUM. For fund 2, we have roughly $16M in soft commitments, and are in conversations with additional institutions and HNWIs for additional interest beyond those amounts as well.
How does CKC onboard investors?
We generally are able and willing to set up calls or meetings to provide additional information — for example, we can walk interested investors through our slide deck. All investors who wish to sign up and allocate capital must complete our subscription documents. These are to be sent back to us as hard copies (required by our nationally accredited Cayman Islands auditors), although digital copies can also be emailed in advance of the hard copies to speed up the process if desired. The overall timeline is generally 2 to 3 weeks. In terms of sending capital, we are able to accept fiat currencies (such as U.S. dollars), but are also able to accept cryptocurrencies (such as bitcoin), or stocks (such as Google). Depending on your specific country and your financial situation, investing in the form of stocks and cryptos with unrealized capital gains may have financial upsides — please consult with a tax professional in your area.