The Reg D SPV private placement offers exposure to a new digital asset class, blending the “best of breed” practices of the highest-quality cryptocurrencies
Two Prime, a Hong Kong-based fintech firm focused on the financial applications of crypto, announces that its inaugural token — the FF1 — is now available to accredited investors in the United States through a Regulation D Special Purpose Vehicle (SPV) private placement. The FF1, a new breed of cryptocurrency with safeguard mechanisms that use real assets, offers investors a well-diversified and risk-managed exposure to the blockchain industry.
“For the last two years, institutional investors around the globe have been interested in the cryptocurrency space. Unfortunately, as the industry has been largely focused on the development of blockchain technology, Bitcoin’s original thesis — financial applications — has been mostly neglected and the reputation of cryptocurrencies has taken a beating,” says Two Prime Chief Executive Office Dr. Marc Fleury. “Institutional investors have been looking for a risk-managed way to enter the asset class. With the FF1 SPV, we are providing an offering that applies traditional financial models and theories to crypto in a way that brings trust and professionalism to the industry.”
The private placement is launched through a US investment vehicle, Open Source Finance, LLC, a holding company managed by Two Prime. The funds raised through the private placement will be used to acquire a portfolio of FF1 Tokens, which in turn, invests the proceeds in well-diversified public and private sector projects through a managed basket of assets. The projects — comprising cryptocurrencies, debt, and equity instruments — will solely focus on the blockchain sector, to bring support to the space.
Creation and sale of the FF1 MacroTokens shall be enacted by the Open Source Finance Foundation (“OSFF”), an affiliate of Two Prime. For the initial offering, a maximum of 5 million FF1 MarcoTokens will be emitted into circulation onto secondary markets. Subsequently, the Continuous Token Offering (CTO) will ensure that additional tokens are continuously released into circulation only when there is real demand — similar to the private equity approach of staged, de-risked financing.
Alexander S. Blum, Two Prime Chief Operating Officer, says: “The FF1 Tokens are a better store-of-value investment product and hybrid stablecoin for investors to gain cryptocurrency exposure than what have historically been offered in the cryptocurrency investing markets. Through our single-asset allocation strategy, we seek to offer accredited investors targeted exposure to the growth and development of the blockchain industry.”
The minimum initial investment in the entity is US$250,000, with subsequent investments available at US$50,000 increments. Two Prime has aligned its management compensation with the interests of investors in the entity through a monthly incentive allocation of 0.50% on any capital appreciation for the month.
The FF MacroToken represents a new asset class. Since its launch in January, the FF1 has been made available to non-U.S. purchasers through cryptocurrency exchanges Bithumb Global and BiKi.com with more listings to come in the near future. Funds raised from the sale of the FF1 will be allocated to projects that have been admitted to the Two Prime Partner Program, including BabelFinance, one of the world’s largest commercial crypto finance institutions, and leading crypto investment funds such as SPiCE VC and NGC Ventures. Two Prime is currently taking applications for its Partner Program. For more information on the program, please visit http://twoprime.io/partner.