Cryptocurrency consortium Panxora Group has launched a Treasury Management Service (TMS) which will help founders of projects issuing token sales to manage the capital raised and ensure that it is preserved from the volatility of cryptocurrency.
Many projects who issued token sales in the heyday of 2017 have crashed as token values took a swan dive in the great crash of 2018. This coupled with financial mismanagement has led to many projects and investors with little to show for.
For young crypto companies, managing capital is a daunting task and keeping it in crypto exposes it to volatility and risks loss, while converting it immediately to fiat could mean a missed opportunity to take advantage of a rising crypto market. In response, Panxora has launched the TMS to help crypto projects face the challenge of managing the funds they raise.
Gavin Smith, CEO of Panxora said:
“Too many exciting ICO projects have fallen by the wayside due to poor financial management. With the TMS, ICO founders no longer need to worry about being able to keep the lights on and can instead focus on their ideas.”
Over Smith’s 20 years’ experience in investment banking and commodities, he saw the big players regularly using hedging strategies to tackle volatility. This not only preserves value but can also represent upwards of 50% of the commodity company’s yearly profits. Commodity markets and cryptocurrency share many characteristics so he saw an opportunity to create a competitive advantage for his ICO clients by transferring this expertise to the cryptocurrency industry.
Using active hedge strategies based on AI trading algorithms, coupled with passive hedge balancing, the TMS can create a balance between capital growth and preservation, depending on the risk appetite of each client. The client dictates how much capital they need each month, which they can transfer into their operating account, ensuring that they can finance daily operations.
Panxora’s AI models were used to manage $2.9m raised during Panxora’s Tessier-Ashpool token sale in 2017. After 15 months of trading, the company moved $2.1m profit into an operating account, invested in 5 companies, run the business for 15 months and still has the original $2.9m plus an extra $200,000 sitting in the bank. Dynamic hedge management generated an increase of 76% during a period in which Bitcoin was down 16%.
Mr. Smith concluded: “Having a plan in place for responsible management of a token’s assets is not just good for the company itself. It’s a signal to investors that says: we’re serious about making this business work, taking responsibility for the capital you’ve entrusted to us. We think this is an important step forward in the maturation of the token industry.”
Founded in 2014 under the name First Global Credit, Panxora has always aimed to provide cryptocurrency owners with the same opportunities as fiat currency holders have to generate revenue from their assets. With significant experience both in traditional financial and cryptocurrency markets, Panxora’s co-founders brought their first service – crypto backed stock and ETF trading to market, followed shortly by its currency exchange and the launch of the investment collective, AICoin which uses proprietary AI to trade the cryptocurrency markets. The company’s development team continues to innovate new products and services that will provide advantages to its customers. This includes the public launch of Panxora Crypto I, a cryptocurrency focused hedge fund. This and other services have been designed to give crypto-asset holders ever more opportunities.
With more than 30,000 customers in 35 countries, Panxora Group is the crypto-community’s trusted partner to meet financial goals and put crypto-assets to work.
- The Difference Between Bitcoin and Electronic Money - 29 May 2020
- Ren Launches Mainnet Promising DeFi Interoperability and Potentially Unleashing Billions of Dollars in Crypto Assets into the Ethereum Ecosystem - 27 May 2020
- Apple and Google Release Contract Tracing API for Coronavirus - 21 May 2020