Digital Assets: Panxora Launches AI-Powered, Quantitative Hedge Fund For DeFi
Panxora’s new fund offers investors the growth opportunities in the decentralized finance (defi) market.
The Panxora Group announced Monday its launch of a DeFi-focused hedge fund. The Cayman Island-based fund will offer investors the opportunity to invest in DeFi tokens and is already accepting subscriptions. (Yahoo Finance)
Panxora DeFi Hedge Fund
The fund will begin trading on November 2, 2020. Its focus on DeFi should prove attractive to investors. The relatively new space in digital assets has exploded into the limelight in recent months. That followed eye-popping appreciation in some tokens.
Decentralized Finance has the potential to disrupt all aspects of the multi-trillion dollar financial service industry, says Panxora on its website. Saving, lending, borrowing, insurance, and a variety of other sectors will see the impact of this advanced technology in the coming years.
Panxora observes that some projects have grown threefold, fourfold, and more in value since the onset of 2020. Coin Rivet cites the instance of a token like YFI, which surged from $300 to $43,000 as interested buyers flooded decentralized exchanges such as Uniswap.
Meanwhile, according to Panxora, individual tokens like OMG (up from $0.61 to $5.30 between January and September 2020) and AAVE (which is plus over 4,300% over the same period) are other examples of the DeFi market’s potential.
“As the benefits to consumers start to be recognized, the potential is so great that what we are experiencing now is just the first of many dynamic moves upwards over coming months and years,” says Gavin Smith, Managing Partner at Panxora Hedge Funds, on DeFi.
DeFi’s value proposition – disintermediation and freedom from fees
DeFi refers to a financial world where person-to-person transactions execute on the blockchain. They are without recourse to a central authority or layers of intermediaries. The execution of these transactions is guaranteed because they rely on smart contracts built into the blockchain.
“These person-to-person transactions could have a profound impact on global financial services – bringing real-world assets onto the blockchain and facilitating the transfer of trillions of dollars of assets including precious metals and fiat currencies, free from huge intermediary fees,” added Smith.
For investing the fund’s assets, the managers will use proprietary trading models. Panxora has used these to trade the cryptocurrency markets profitably since 2017.
The investments by the fund will span a variable basket of up to 20 of the most liquid DeFi tokens.
Panxora’s AI-powered trading software assigns equal weight to profit generation and capital preservation.
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