Digital currency hedge fund Polychain raises $10 million in venture capital.

Polychain Capital, a Bitcoin hedge fund started by one of the former Coinbase employees has raised $10 million from famed venture capitalists Andreeseen Horowitz and Union Square Ventures, founder Olaf Carlson-Wee said on Friday.

The increasing popularity of Bitcoin and other blockchain based assets has made it really hard for investors to resist. The shifting trend is readily observable in the number and volume of investments being received by cryptocurrency technology based fintech companies. The platform was founded by a former Coinbase employee.

The San Francisco-based fund is focusing on currencies powered by blockchain, a ledger of transactions maintained by a network of computers on the internet without the need of a central counterparty. It has gained immense popularity worldwide due to its potential for keeping track of assets across practically all industries.

Polychain is taking advantage of a growing trend among blockchain startups, which generate capital by selling their own digital assets, which are also known as electronic tokens or coins, even before those projects are developed. This fundraising strategy bypasses traditional venture capital financing, which can be rigorous and take anywhere between six months to a year to complete. The company, which started in September, looks for novelty projects, which can mean solving a problem in a unique way.

Using his experience and insights in the cryptocurrency industry, Carlson has enabled investments into Bitcoin, Ether, and other digital assets through Polychain Capital. The current market scenario, where the demand for Bitcoin and Ether is at an all-time high shows that the trend is only going to go further upwards. As demand increases, the value of these crypto tokens is also bound to go up, making it more profitable for those who invested in these digital currency assets early on.

“There will be many types of assets codified into the blockchain, and they are all not just going to be on the Bitcoin blockchain — it’s going to be a number of different assets here. And the best way to invest in that is a diversified portfolio,” Said Carlson-Wee.

The flow of investment into the company has further increased investor confidence in cryptocurrencies and commodity backed digital assets. In Carlson’s own words, someday the market capitalization of all blockchain based tokens could reach trillions of dollars. Polychain Capital is now in the right place at the right time, ready to ride the upcoming wave.

Source: newsbtc.com

Disclaimer: InfoCoin is not affiliated with any of the companies mentioned in this article and is not responsible for their products and/or services. This press release is for informational purposes only. Information does not constitute an investment advice or an offer to invest.

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