Prominent bitcoin pioneer Charlie Shrem is launching his newest venture. Shrem along with real estate expert Jason Granger, launched Intellisys Capital. Through this firm, the bitcoin pioneer will launch a token based investment fund called Mainstream Capital. The Ethereum based token will allow investors to buy into the fund through an ICO. This ICO will take place on January 15th, 2017. As details from the ICO appear, it is prudent to take a closer look to understand what this venture is about.
The first characteristic that sets this investment fund idea apart from other Ethereum-based investment ventures, is its focus. Shrem and Granger want their fund to be based on real world asset investment. That means it will hold a stake in assets like factories or stores. The second characteristic that differentiates this investment fund further, is its focus on assets that are not available to investors through traditional investment channels. Furthermore, the fund will focus on “middle market growth equity investments across the United States.
Charlie Shrem’s Pitch to Potential Investors
In plain English this means that investors will be able to invest through this fund in medium-sized, brick and mortar businesses in one of the world’s most solid – if not the most solid – economies. This clearly makes this ICO the first of its kind. These investment guidelines also help the idea look more appealing to more conservative investors that are looking for hard value. In principle, there is nothing speculative about this investment model, although it does face technological challenges.
Why did Charlie Shrem choose Ethereum?
The investment token will be based on the Ethereum blockchain. This network has had its fair share of setbacks lately. Hackers have exploited some vulnerabilities in the Ethereum blockchain to launch 51% attacks that slowed the network down – although they didn’t paralyze it. Then there was the whole issue with the discrepancies between the Geth and Parity clients. This forced yet another hard fork.
On the other hand, it is difficult to see which other choice Shrem had. Ethereum is the second biggest blockchain by market cap. Despite its shortcomings, there are no other blockchain projects available out there that can be as reliable as Ethereum for companies to launch these kinds of investment ventures. Following the DAO hard fork, it is possible to see why investment funds would trust Ethereum as a platform to conduct their business on.
Intellisys Capital is not the DAO
Apart from that, it would be reasonable to assume that Charlie Shrem has the experience necessary to avoid the pitfalls that the DAO fell into. Shrem is an early bitcoin adopter with a long trajectory in the industry. This gives him the experience and credibility necessary to launch a safe token on Ethereum. Apart from that, it is clear that this token is well grounded in a sound investment strategy. It clearly has a lot of potential and hopefully it will succeed.
Click here to read more about Intellisys Capital.