Blockchain
‘Liquid Vesting’ Is Oxymoronic Blockchain Feature That Lets Early Investors Sell Without Waiting
Liquid vesting is a groundbreaking and somewhat contradictory concept in blockchain technology that allows early investors to sell their vested tokens before traditional lock-up periods end. This feature, which appears to defy the conventional purpose of vesting aimed at ensuring long-term commitment, provides a new level of liquidity for investors. By allowing early supporters to realize profits without waiting, liquid vesting balances the need for immediate liquidity with the project’s requirement to maintain stability and reduce sell pressure. This integration has the potential to revolutionize investment dynamics in blockchain projects, offering a more flexible and appealing model for early investors.
The Concept of Liquid Vesting
Traditional vesting schedules are designed to prevent early investors from dumping their tokens on the market immediately, which could destabilize the project. However, liquid vesting introduces a nuanced approach where tokens can be traded or sold even during the vesting period. This method gives early investors access to liquidity, which can be particularly attractive to those who need to realize some returns on their investment before the full vesting period concludes.
Balancing Liquidity and Stability
One of the key challenges in integrating liquid vesting is ensuring that it doesn’t lead to excessive volatility or undermine the project’s stability. By structuring the liquid vesting feature thoughtfully, projects can mitigate potential risks. For instance, implementing gradual release mechanisms or tiered vesting schedules can help manage the flow of tokens into the market, thereby balancing liquidity needs with the stability of the token’s value.
Implications for Blockchain Investment
The introduction of liquid vesting could significantly alter the landscape of blockchain investments. It offers a more flexible and appealing model for early investors who seek liquidity without having to wait for the full vesting period. This could attract more investors to participate in early-stage projects, knowing they have the option to access liquidity if needed. Additionally, it might encourage more strategic investment behavior, as investors can plan their liquidity needs in advance.
Liquid vesting represents a paradigm shift in how vesting schedules are approached in the blockchain world. By providing early investors with the flexibility to sell their vested tokens, it addresses the need for liquidity while aiming to maintain project stability. As blockchain projects continue to innovate and adapt, features like liquid vesting will likely become more prevalent, reshaping the investment strategies and dynamics within the ecosystem.
Source: coindesk.com
The post ‘Liquid Vesting’ Is Oxymoronic Blockchain Feature That Lets Early Investors Sell Without Waiting appeared first on HIPTHER Alerts.
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Blockchain
DNA Fund Acquires Coral Capital; Adds $50M AUM in Web3 & Emerging Tech
2024-DNA Fund, the Financial Institution of the future in high-ticket emerging tech and web3 investments, has announced its acquisition of Coral Capital Holdings LLC, an established investment management firm that has previously managed millions in the DNA founders’ personal funds.
As early-stage investors in established Web3 brands and founders of some of the sector’s most notable projects, DNA and its founders have invested in or founded projects such as Tether, EOS, Mastercoin, Bancor, and Hedera Hashgraph. The acquisition will see the DNA Fund manage an additional AUM of over $50 million, which includes Coral’s high-yielde hedge funds and venture funds focused on DeFi, Al, blockchain, and other emerging technology sectors. Some of Coral’s top-performing investments include Near Protocol and Atmos Labs.
Thomas L. McLaughlin, Coral’s Chief Investment Officer, will continue in his role, managing the funds with a unique focus and strategy aimed at maximizing investor returns.
Regarding the acquisition, Christopher Miglino, CEO of DNA Fund, said. “By bringing Coral Capital under our umbrella, we are not only expanding our investment capabilities but also enhancing our ability to offer unique, high-growth opportunities to our clients. Our combined expertise allows us to navigate the complexities of the digital asset landscape and continue delivering value to our investors.”
Thomas L. McLaughlin, CIO of Coral Capital Holdings, added, “Joining forces with DNA Fund is an exciting new chapter for Coral. Our shared vision for leveraging technology to drive financial growth is perfectly aligned. Together, we are set to redefine what’s possible in digital asset investments and deliver superior results for our investors.”
Since its inception in 2021, Coral has delivered consistent returns with innovative strategies, delivering high multiples on the benchmark of the overall market cap of digital assets. Coral’s Flagship fund, initially started as a market-neutral vehicle, was rebranded in 2023 as a discretionary liquid token, surviving a number of high-volatility events, including FTX and Terra.
With a 61.6% return (net of fees) and a maximum annual drawdown of only 11.6% in FY 2022. these funds have outperformed the broader digital asset market. Over a similar period, Bitcoin returned 36.7%.
Through this acquisition, DNA Fund also aims to capitalize on the growing interest from institutional investors and expand into several new verticals over the coming year, including a Bitcoin & Ether Yield Fund, as well as more speculative funds focused on Al, memecoins and microcaps.
The post DNA Fund Acquires Coral Capital; Adds $50M AUM in Web3 & Emerging Tech appeared first on HIPTHER Alerts.
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