Investment without Banking
Imagine, for a moment, you were a new member of China’s growing middle class, and looking to invest your savings. You’ll soon discover that without political connections, your investment opportunities are limited to a filtered selection of domestic companies; lucrative companies are listed elsewhere, and only available to foreigners, state officials, and their friends. If that’s the case, Cryptor Trust might be just the opportunity for you.
Cryptor Trust is not the first investment vehicle in the Bitcoin space. The Winklevoss have discussed plans to involve mainstream investors for some time, and various firms have already invested well-over $100 million. Many firms have backed investment vehicles such as Pantera, which invested in Bitstamp, among others. Financial instruments like Bitcoin Investment Trust let you buy “shares” of Bitcoin as one would oil or gold. Other companies in the space include GreenBank, Falcon Global Capital, and Havelock Investments.
Cryptor Trust, however, is the first global investment company to operate without the use of a bank account. Unlike previous investment companies–which function to serve the well-connected who don’t want to understand cryptocurrency, and prefer to use traditional channels–Cryptor Trust accomplishes just the opposite. They only sell shares for Bitcoin, leaving those unable to overcome traditional investment barriers on an equal playing field.
There are risks to denominating one’s company in bitcoins: a steep drop in value, for example, would presumedly have a dire effect on their share value. Cryptocurrency has become a diverse industry, however, and Cryptor Trust (like other firms) intends to invest in all manner of related sectors, from mining to payment processors. So long as the infrastructure behind Bitcoin is still being developed, there will always be value in such companies.
The Cryptor Trust team comes from an experienced investment background, and thinks they have the knowledge and expertise necessary to mantain returns in such a manner. Latin American chairman Geir Solem is the founder of Elliot Wave Technician, and left Europe in early 2008 having foreseen the banking crisis. In his view, problems in the Western banking world will continue or get worse, making investment via the traditional monetary system a riskier proposition.
“If we contribute to a trend where more companies use Bitcoin or other crypto currencies as their formal capital structure, I think we will have contributed to a positive change going forward,” said Geir. “In many countries, and that includes the US with Las Vegas, it is easier to gamble with your money than make an investment.” Other directors, like Maximiliano Garcia, have said their offering is designed to open the financial world to a new class of investors, who can’t meet traditional requirements.
Obviously, their success will inevitably rely on the success of Bitcoin, no matter how they hedge their bets within the industry. To that extent, it’s in their best interest to help promote a healthy Bitcoin economy, and they have promised to support companies leading emerging trends in the industry. “We believe this model is the right fit for those who want a stake in the future of the Bitcoin revolution. In a few years, using fiat currencies will be a sign that your are a laggard,” said Geir, who also criticized fiat’s unnecessary high fees.
Fundraiser for Latin American companies has already begun with the launch of Cryptor Latam Inc. They expect to raise 25,000 bitcoins by June 6 by selling 25,000,000 shares, legally denominated in Bitcoin at 0.001 BTC each. The company has pre-arranged “lots” and “blocks” of shares, to simplify the process for less experienced investors, and one can invest as little as 0.025 BTC. You can do so easily on their website, as well as access their prospectus.
Andrew Wagner is the Vancouver Ambassador for Cryptor Trust, but he is unpaid and was not compensated for this article. Bitcoin Magazine does not endorse any particular company, nor should its published content be taken as comprehensive investment advice. Spend your coins wisely!