20.10.2020

Cambrial Capital to Shut Down After Coronavirus Tanks Markets

The fund, which holds between $6 million and $10 million in assets under management, appears to have fallen victim to the coronavirus crisis. March 12, aka “Black Thursday,” was the worst of it, driving bitcoin (BTC) prices down over 40 percent.

Cambrial Capital, a crypto-focused fund of funds, is quietly winding down its operations, according to two sources familiar with the matter.

“We don’t talk about our products publicly given we’re regulated,” David Fauchier, Cambrial’s co-founder and chief investment officer, told CoinDesk. “We’d have to run any response through our [regulatory] umbrella and we’re a little busy right now.”

Launched in 2018 and regulated by the U.K.’s Financial Conduct Authority (FCA), the Cambrial Capital team includes Ha Duong, Edward Nelson and Alex Obadia. The two sources said Cambrial has an impressive and respected team in the industry, adding that the coronavirus “black swan” had brought with it an onslaught of margin calls.

A fund of funds is where a pooled investment is diversified across multiple other fund managers who specialize in a variety of strategies. Outfits like Cambrial include tactics such as arbitrage, market making, OTC trading, mean reversion and so on.

Given their diversification, these types of funds are sometimes called “market neutral.” But crypto investing of any kind is high risk and Cambrial is not the only trading business to be pushed over the edge during last month’s markets rout.

Crypto hedge fund Adaptive Capital announced it was shutting down its fund and returning the rest of its capital to investors about a week after the crypto markets plunged in March.

However, some players in the crypto fund-of-funds space remain positive about the present opportunity.

“Most investors can’t access the leading prop shops (Jump, Tower, Two Sigma, Brevan Howard, Jane Street) that do algo-trading on digital assets,” said Yuval Reisman, co-founder of crypto fund YRD Capital. “We allow access to the same strategies, many times, by investing in people that left these funds and launched their own fund.”

Chiliz Launches Crypto Exchange for Trading Sports Fan Tokens

Malta-based sports blockchain venture Chiliz is launching a cryptocurrency exchange for sports and entertainment tokens.

In a press release shared with Cointelegraph on Jan. 23, Chiliz detailed that the new exchange – Chiliz.net – will roll out in February after the beginning of Fan Token Offerings​ ​for all of the ​Socios.com​ partner teams​. Socios.com is a tokenized fan-voting platform for sports powered by Chiliz tokens (CHZ).

Chiliz.net will be fully integrated with Socios.com, enabling users to transfer their fan tokens from a Socios wallet to the exchange, and vice versa. Chiliz and Socios.com CEO Alexandre Dreyfus claimed that Chiliz.net will be the first crypto exchange that does not focus on traditional crypto products.

Users will be able to trade fan tokens for professional soccer teams Juventus (JUV)​, ​Paris Saint-Germain (PSG)​, Atlético de Madrid (ATM)​, ​A.S. Roma (ASR)​, ​Galatasaray (GAL)​ and ​West Ham United (WHU) on the new exchange. In March, the company plans to add support for OG Esports’ fan token, OG.

Reaching an audience of 3.5 billion sports fans globally

Soccer is by far the most popular sport on Earth. According to FIFA’s audit of audience data following the 2018 World Cup in Russia, over 3.5 billion people tuned in to watch the global showpiece. This number suggests that half of the world’s population caught some of the action during the competition.

In May 2019, Chiliz entered a strategic partnership with Binance Chain, the mainnet of major cryptocurrency exchange Binance. At the time, Dreyfus noted that sports fans represent an addressable audience of billions globally, opening up the possibility of bringing blockchain to a wider audience via collaboration with the industry’s global brands and household names.

Binance Chain integration purportedly gives wider reach to Chiliz’s consumer-oriented products and services like instant payments and prepaid gift cards.

Earlier in January, Dreyfus said that real mainstream utility tokens are far flung from the likes of Bitcoin (BTC) and payments. “This is the usage of blockchain for something that is not payments, and that was conceived exclusively because of blockchain. We are not replacing something that was existing before, we have created a new usage and innovation (fan token, influence, etc …) and we use blockchain to support it,” he explained.

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