Interview with Victor Lai, manager of the Crypto Fund: Crush Crypto Core.
What is your story and how does it connect to DAA?
Crush Crypto is the go-to source for independent research on blockchain projects and cryptocurrency investing. The team has so far done 50 in-depth reports on various coins and tokens with a strong performance track record
Crush Crypto has partnered with ICONOMI and is one of their first DAA managers. The Crush Crypto Core DAA (CCC) is one of the 12 DAAs that were selected out of 150 applicants from around the world following rigorous vetting by the ICONOMI team.
What does DAA stand for?
ICONOMI enables users to invest in and manage various digital assets and combinations of
digital assets which are called Digital Asset Arrays, or DAAs. CCC is one of the DAAs that investors can choose to invest in. Through ICONOMI, investors can own a diversified array to maximize value stability or a higher-risk array tuned to aggressively pursue maximal gains.
What is the investment thesis of the crypto crush portfolio?
CCC is designed for investors who want to easily obtain a basket of quality, undervalued digital assets that provides diversification benefits. The Crush Crypto team will do all the research, trading and rebalancing using their fundamental research process.
The objective of CCC is to maintain a basket of assets that would outperform a model portfolio that is 50:50 bitcoin and ether.
50% percent of the portfolio is comprised of blockchain protocols that have wide real-world adoption. This portion is considered the “core” of CCC, and the holdings will not change dramatically from month to month.
The other 50% of the portfolio is comprised of high-quality undervalued tokens, selected based on Crush Crypto’s signature evaluation process. This portion is expected to deliver a higher return and to be changed and rebalanced more frequently on a monthly basis.
What are the advantages of hosting crush Crypto within ICONOMI, rather than having it as a standalone fund?
ICONOMI is a reputation fintech company in the blockchain space focused on digital assets management. Here are some of the reasons why we decided to partner with ICONOMI:
Improved security: ICONOMI has a well-established platform that already uses cutting-edge security to minimize the risk of hacks and scams.
Allows us to focus on what we do best: ICONOMI manages the platform including the technical and legal aspects. We focus on managing CCC in the best way possible including doing the research and asset selection.
Systematic approach: ICONOMI’s approach makes cryptocurrency investing more structured and easier for new investors to participate.
Trusted oversight: ICONOMI has a set of internal rules which protect the investors. These include ensuring that we do not overcharge, pocket any discounts we may get from purchasing tokens, and that investors share in the returns on a real-time basis.
Is there a target number of coins that the crypto fund will contain?
We do not have a target number, but generally, each blockchain protocol will have a higher weighting in the portfolio than each token.
Does the fund participate in ICOs?
ICOs are not available on ICONOMI and CCC invests only in existing coins and tokens. This is partly due to regulatory reasons and individual caps and KYC processes.
How often is the index rebalanced?
We intend to rebalance the portfolio once to twice a month.
What are the mechanics behind the rebalancing?
The index is rebalanced on a monthly basis, our strategy is to buy the best crypto assets which are undervalued and sell those who are overvalued.
What happens to dividends, staking rewards or similar from the owned coins?
Those will be sold off and the proceeds will be used to purchase the assets that constitute the portfolio.
What has been the return of the fund since inception?
The real-time performance of the fund can be found here: https://www.iconomi.net/dashboard/#/daa/CCC. The starting price for CCC is $1.00.
What has been its rate of growth in size for the fund?
CCC was launched just a few weeks ago but we are already seeing very impressive growth every week.
What are the entrance, exit and management fees to invest in DAA?
The exit fee is 0.5% and the annual management fee is 2.5% of assets under management. There are no entry fees.
At what frequency are these fees paid?
The management fee is automatically deducted on a prorated basis every day by ICONOMI. There is also a 0.5% exit fee (charged at DAA withdrawal) which is standard across all ICONOMI DAAs.
We thank Victor Lai for the interview.
About Victor Lai:
The manager of the CCC is Victor Lai. Victor is the co-founder of CrushCrypto. He has close to ten years of experience working at various hedge funds and investment banks in Asia and North America. He specializes in fundamental analysis and investing, with experience in asset allocation, investment strategy, and portfolio management. Victor holds an MBA degree from the University of Chicago Booth School of Business. He is also a CFA charterholder. You can learn more about Victor and Crush Crypto here: https://crushcrypto.com/about/.