Place/Date: London, UK - April 24th, 2019 at 8:07 pm UTC · 3 min read
Contact: Jenny Corlett, Source: Panxora
The Panxora Group, a cryptocurrency consortium, today announces the launch of its ICO Treasury Management Service (TMS). The TMS helps founders manage the capital raised through token generation events to ensure that it is preserved from the volatility of cryptocurrency and can support business growth.
Recent research has shown that over half of ICOs fail within four months of their launch, often due to financial mismanagement. For young crypto companies, managing ICO capital is a daunting task. 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 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 $2,900,000 raised during Panxora’s Tessier-Ashpool token sale in 2017. After 15 months of trading, the company moved $2,100,000 profit into an operating account, invested in 5 companies, ran the business for 15 months and still had the original $2,900,0000 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%.
Gavin 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 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 AI, 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 is the crypto-community’s trusted partner to meet financial goals and put crypto-assets to work.
Disclaimer: Panxora is the source of this content. Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. Cryptocurrencies and tokens are extremely volatile. There is no guarantee of a stable value, or of any value at all.