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Ripple Not Included: New Morgan Creek Fund Excludes Pre-Mined Cryptocurrencies


TokenBaby
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"Some cryptocurrencies took a big step toward institutional adoption today, with the launch of the Morgan Creek Digital Asset Index Fund.

Backed by the Morgan Creek institutional investment house that currently manages $1.5 billion in assets, the fund gives pensions, wealthy families, endowments and accredited investors a way to gain exposure to bitcoin, ethereum and eight more of the largest cryptocurrencies by market value.

But notably missing from the list will be some of the largest cryptocurrencies in the world. The rules-based index fund, managed by San Francisco-based Bitwise Asset Management, excludes cryptocurrencies such as Ripple’s XRP and Stellar’s lumen, that were created through a controversial process called a pre-mine."

https://www.forbes.com/sites/michaeldelcastillo/2018/08/28/ripple-not-included-new-morgan-creek-fund-excludes-pre-mined-cryptocurrencies/

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Nice. All-in on Proof of Work from China. Old dumb tech that's about to be replaced by smarter tech. These investors really have no clue, but you can't blame them. So few people understand this technology, and so many people claim that they do. What to believe?

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Can someone (without sarcasm) explain why those who think so consider pre-mining controversial?

If it is because it issues the conception that it is centralized- I would think investment funds would prefer that to an ICO/Silk Road type coin, being the more conservative types wouldn't they?  Trying to understand the perspective of this opinion- at this point what is the controversy over?  Or is this speak just a euphemism for not SEC approved yet? Thx.

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58 minutes ago, TokenBaby said:

"Some cryptocurrencies took a big step toward institutional adoption today, with the launch of the Morgan Creek Digital Asset Index Fund.

Backed by the Morgan Creek institutional investment house that currently manages $1.5 billion in assets, the fund gives pensions, wealthy families, endowments and accredited investors a way to gain exposure to bitcoin, ethereum and eight more of the largest cryptocurrencies by market value.

But notably missing from the list will be some of the largest cryptocurrencies in the world. The rules-based index fund, managed by San Francisco-based Bitwise Asset Management, excludes cryptocurrencies such as Ripple’s XRP and Stellar’s lumen, that were created through a controversial process called a pre-mine."

https://www.forbes.com/sites/michaeldelcastillo/2018/08/28/ripple-not-included-new-morgan-creek-fund-excludes-pre-mined-cryptocurrencies/

This is a small player and the fact that  they are setting up their fund in this matter is not surprising. When we have more regulatory clarity they're will be lots of funds to choose from that employ a wide range of Strategies.

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1 hour ago, xrphilosophy said:

Can someone (without sarcasm) explain why those who think so consider pre-mining controversial?

If it is because it issues the conception that it is centralized- I would think investment funds would prefer that to an ICO/Silk Road type coin, being the more conservative types wouldn't they?  Trying to understand the perspective of this opinion- at this point what is the controversy over?  Or is this speak just a euphemism for not SEC approved yet? Thx.

I can understand their concern.  I think the biggest issue might be the possibility of XRP tokens being declared a security and market manipulation.  I don't see Ripple manipulating the market in the original sense of market manipulation but OTC token sales with NDA agreements might be too risky for their taste.  Ripple is doing a lot in secrecy to bring the use case of XRP to realization, Mogran Creek might not feel comfortable speculating on this, we certainly do though ?. These guys are managing pensioners monies afterall, I can imagine they have to take all the necessary precautions not to expose themselves to avoidable risks. Possibly they'll reconsider after Ripple makes headway in the cross-border payments/FX market. 

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Whereas most cryptocurrencies are mined through a process that rewards computing power processed on the blockchain with newly minted coins, (..)

Ehm, false, 6 of the top10 / 12 of the top20 coins are premined..

“If there’s a central party that owns 30% or more of supply, then we withhold those from the index,” said Morgan Creek Digital partner Anthony Pompliano. “Because we think that introduces a lot of additional risk that may not be there if it was a more decentralized network.”

Ehm, false, ownership of supply and that of the network / validators are 2 different things. And it’s the 51% attack risk of Bitcoin that poses a risk.

Pretty inaccurate journalism of Forbes.

Edited by Amigo
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2 hours ago, Still1 said:

This is a small player and the fact that  they are setting up their fund in this matter is not surprising. When we have more regulatory clarity they're will be lots of funds to choose from that employ a wide range of Strategies.

Yah $1.5b  is nothing

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