Cryptocurrency consortium Panxora has announced its platform for ICOs called the Treasury Management System. This system, says Panxora, will help startups and foundations to manage better the funds that come from an ICO. The system will help people who wish to preserve their funds from the inherent volatility of the cryptocurrency market and ensure that the business will have the resources to support growth.
According to research by various organizations, about half of all ICOs fail just four months after they launch. The largest reason for this failure is that the funds are generally mismanaged. Young companies that are based on crypto technology have a hard time managing their ICO capital.
It is all to do with the risk/reward of crypto. If the money is changed into fiat currency, then the possible upsides of seeing that currency grow in the market due to high trading is cut. However, with the inherent volatility, if very little is cashed out, then it can also be lost. Depending on the whims of the market is a daunting task for any financial manager, never mind someone who is new to the scene. It is in response to this, that Panxora has released its TMS platform.
Gavin Smith, the CEO of Panxora, says that he has seen too many wonderful ICO projects fail due to poor financial management. He wants companies that issue an ICO to use their system so they can focus on expanding their ideas while the TMS platform helps keep their lights on. That keeps the startups doing what they do best – innovating while outsourcing the financial aspect of their business to the TMS.
Gavin Smith has over 20 years of experience in investment banking and in the commodities markets. During this tenure, he has seen the largest companies use smart hedging strategies that were designed to tackle volatility. It was not only designed to preserve the value of course, as the commodities could represent up to 50% of a commodity company's yearly profits.
He has seen similarities between commodities and cryptocurrency and has decided to bring his wealth of knowledge to help drive the innovation in the exciting emerging cryptocurrency space. The platform takes active hedge strategies that are built from AI trading algorithms. These are the active hedge strategies that are then coupled with passive hedge balancing. This way, the TMS creates a balance between keeping the capital growth and preserving the native crypto for future expansion needs. This is all based on the risk appetite of the client.
The AI models that Panxora flaunts on its TMS platform were used to great effect when the company launched its own ICO. They managed to raise 2.9 million dollars and after 15 months they had enough to moved 2.1 million in profit to an active account that was used to buy 5 new companies. The $2.9 million original capital was still sitting pretty along with around 200 thousand in the bank. This dynamic hedge management achieved a 76% return when Bitcoin was down 16%, so it bodes well in this new bull market.
Smith finished, saying that smart usage of ICOs profits was not just good for the company books; they were also a sign to the wider community that the business is serious about making their product work.
Author: Ali Raza for Crypto-Rating.com
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