Dr. Marc Fleury Ph.D. a well known open-source guru and founder of JBoss (acquired by Redhat for $420 million in 2006) has announced the launch of Two Prime, a fintech firm that focuses on the financial applications of crypto to the real economy. Atomic Capital founder Alexander S. Blum will be acting COO and Fleury will helm the project as CEO. They plan to introduce what they say is a new breed of cryptocurrency with safeguard mechanisms that use real assets.
In a press release, Fleury said:
“It’s been 11 years since Satoshi Nakamoto published the now infamous Bitcoin Whitepaper. Despite its debut as an alternative financial architecture in reaction to the financial crisis, crypto has yet to reach its full potential as a viable asset. The industry has largely been focused on finding blockchain’s ‘killer app,’ which has not been fruitful thus far and largely ignores Bitcoin’s original thesis — financial applications. In order for the industry to mature and evolve, we must refocus on finance and take a look at where crypto has succeeded. Specifically, crypto has succeeded 1) as a store of value; 2) in rapid fund formation, as demonstrated during the ICO boom; and 3) in the prevalent use of asset-backed tokens in the markets. By bridging the best practices of traditional finance and crypto, our aim is to create a new asset class by applying traditional financial models and theories to crypto and bringing trust and professionalism to the industry.”
Based in Hong Kong, the company is offering a Continuous Token Offering (CTO) in order to build funds raised to help make crypto a proper new asset class that appeals more to the financial world.
“One of the greatest successes of cryptocurrencies is in rapid fund formation, as demonstrated during the ICO boom,” said Alexander S. Blum. “In 2017, seed funding for startups via tokens offerings on exchanges overtook private equity. As VCs generally shun the seed stage, it filled a niche that traditional financial players left unaddressed. In stark contrast with VC or PE structures that lock up limited partners to their investments for years, the ICOs provided a liquid instrument for purchasers. Unfortunately, in a classic case of misallocation, many ICOs in 2017 wasted their proceeds on useless tech, lavish parties, and illicit activities. With the CTO, Two Prime aims to bring traditional asset allocation to crypto in order to reignite rapid fund formation, restore the industry’s reputation, and professionalize the crypto markets.”
According to a report by David Pan at Coindesk, Two Prime intends to release an initial five million tokens (just five percent of the 100 million to be created in total) onto the secondary markets, with the rest being released over the next 10 years which mirrors the approach taken by Ripple and its XRP sales and more resembles equity fundraising.
Two Prime’s FF Accretive Token (FF1) will initially to be traded on Japan-based crypto exchange Liquid in late February, starting at $3 per token.
Calling it a new breed of token on their website, they add that the FF Accretive Token (FF Token) is part Store of Value and part Asset-Backed token and employee a model that leverages the fund formation dynamics of crypto exchanges via the Continuous Token Offering.
“A Continuous Token Offering enables a listing to fund itself over time while showing real progress to the markets, converting the atom bomb of ICOs into a controlled and sustainable nuclear reactor.”
CEO Fleury has apparently committed $2 million of his personal wealth to the fund and also revealed to CoinDesk the first outside investor in its token is Hong Kong-based private equity firm SIB Investment Ltd.