What is Advantage Blockchain?
An Overview Of AB
AB updates are for informational purposes only. Do not construe any of the following as investment, financial, or other advice. You make your own decisions.
We often get the question: What is Advantage Blockchain?
Overview:
Advantage Blockchain (“AB”) gives digital asset exposure to HNWI's, RIAs, and Family Offices through liquid crypto investments. AB compliments traditional Bitcoin holdings by providing exposure to emerging blockchain technologies. In addition, AB provides bespoke consulting services to clients.
History:
Advantage Blockchain was founded in 2017 as a research, investment, and education firm to provide SMAs for high net worth individuals. After the initial success of the SMAs, Advantage Blockchain launched the AB Liquid Fund in 2022.
Investment Strategy:
Advantage Blockchain is a long only liquid fund focused on high quality digital assets. Similar to traditional venture capital, AB Liquid Fund invests in digital assets and companies on the blockchain. One advantage compared to traditional venture capital is the ability to realize expedited distributions to paid in capital (DPI) for our LPs over a period of a few years (3-5) vs the traditional 10+ year period. AB Liquid Fund does not trade daily but will take advantage of opportunistic price dislocations in both directions compared to each investment’s underwriting. AB Liquid Fund gives investors exposure to assets with high barriers to entry while also ensuring that the largest risk in crypto (loss of assets) is mitigated.
Investment Process:
The investment process depends on the size of the investment, AB liquid fund has 3 position types: Core, Concentration, and Experimental. Core positions range from 30-50% of the fund. One historical example of this is Ethereum, these are generally multi-year positions unless material changes arise from due diligence and/or underwriting. Concentration positions are 5-30% positions and generally have a time horizon from 6-18 months. Experimental positions are 0-5% and are typically held from 30-90 days but sometimes can be as short as a day. With each new position, the portfolio manager generates an investment memo and follows AB’s investment process which includes, but is not limited to using project fundamentals, onchain data analysis, and technical analysis.
Ecosystems:
Advantage Blockchain focuses on the Ethereum ecosystem and Ethereum Layer 2 networks (L2s) such as Optimism and Base that allow the Ethereum network to scale for global adoption. One of our core beliefs is most blockchain use cases and future infrastructure is and will be built on Ethereum & Ethereum L2s. Advantage Blockchain invests in blockchain application sectors such as AI, DeFi, Gaming, Cloud Computing, Tokenization, Payments, and more.
Team:
The Advantage Blockchain team consists of persons with expertise in onchain analytics, investment management, operational structure, marketing & investor relations, blockchain consulting, and alternative finances (CFO).
Please reach out for more details or with any questions.
Cheers,
Whitetail & Co
AB updates are for informational purposes only. Do not construe any of the following as investment, financial, or other advice. You make your own decisions.