Crypto financial services
Algo Capital delivers tailored solutions that exceed our clients' most demanding requirements, from designing new token economies to launching tokens on the open market and mitigating risk through derivatives. We consistently uphold the highest standards, ensuring that your expectations are not only met but exceeded.
FOR FOUNDERS & CORPORATES
Our Coin Offering Program provides end-to-end support for digital asset founders looking to floating tokens on the secondary markets. Our token sale experience dates back to 2017, and we have more than 5 ICOs under our belt. We offer a comprehensive suite of solutions through the help of our partners, including strategy development, whitepaper creation, technology assessment, marketing, compliance, and investor relations.
Launching a successful token can be a complex and challenging process, requiring deep expertise in multiple fields like technology, financial markets, and regulatory compliance. Founders often don’t have the initial necessary resources or expertise to manage this process on their own.
According to data from Chainbroker.io, as of March 2023, more than 70% of ICO projects launched between 2021 and 2022 are now trading below their ICO price. The median return on investment on 750 coin offerings analyzed is -60%. This means that many investors who bought tokens during those coin offerings have lost a lot of money, and the projects themselves may have failed to deliver on their promises.
For digital asset founders who are dissatisfied with the complexity and risks of launching an token on their own, our Coin Offering advisory service provides comprehensive support and guidance throughout the entire token sale process. Our service solves key problems such as regulatory compliance, token economics, and investor origination, while maximizing the chances of a successful coin offering. Unlike other advisory services that only provide technology and marketing support, our service offers customized capital market solutions tailored to the unique needs of each project, as well as access to a network of top-tier partners and investors.
Type of Offerings:
- Initial Coin Offering (ICO) is a fundraising mechanism where a company or project issues its own cryptocurrency tokens in exchange for other cryptocurrencies like Bitcoin or Ethereum. ICOs can be used to raise funds for various purposes, such as developing new products or services or building new infrastructure.
- Initial Exchange Offering (IEO) is a fundraising mechanism that is conducted on a cryptocurrency exchange platform. In an IEO, the exchange acts as an intermediary between the project team and the investors, and the tokens are sold directly to the investors through the exchange. The exchange typically charges a fee for hosting the IEO, and it also performs due diligence on the project before listing the token for sale.
- Initial Dex Offering (IDO) is a fundraising mechanism that is conducted on a decentralized exchange (DEX) platform. In an IDO, the project team can list their tokens directly on the DEX platform and sell them to investors without the need for an intermediary. This eliminates the need for an intermediary, reduces costs, and increases transparency and security.
The key differences between these mechanisms are the platform on which they are conducted and the level of intermediary involvement. ICOs are conducted independently, IEOs are conducted through an exchange platform, and IDOs are conducted through a decentralized exchange platform.
- Strategy Development: We work with you to develop a customized strategy for launching a successful token sale, taking into account factors such as target market, competition, and regulatory compliance.
- Tokenomics: We help you design and develop the token economic incentives and inflation model.
- Whitepaper Creation: We provide comprehensive support for whitepaper creation, including research, writing, and design.
- Origination: We help you reach potential investors through targeted origination campaigns, giving full access to our investor ecosystem.
- Compliance: We ensure through our legal partners that your token remain fully compliant with all relevant regulations and guidelines throughout the ICO process.
- Market Making: we develop market making strategies on you behalf, partnering with primary institutions in digital assets.
- Customized solutions tailored to your specific targets and timelines.
- Comprehensive support throughout the entire process, from strategy development to investor relations.
- Deep expertise in blockchain technology, trading, financial markets, and regulatory compliance.
- Access to a vast network of industry and investor contacts.
Token Monetary Policy
Our Token Monetary Policy Program is designed to help digital asset founders create their token economics, incentives, inflation models, KPIs, and tokenomics. We provide expert guidance and solutions to help you create or optimize your token economy, manage inflation, and achieve the objectives of the protocol.
Designing and managing a token economy can be very tough. We understand the challenges many digital asset founders face, including dealing with high volatility, navigating complex regulatory frameworks, and often lacking expertise in economics and trading. These hurdles can result in inflation, unstable prices, and even hurt their operations.
For founders of digital asset companies who are dissatisfied with their ability to properly design their token, our Token Monetary Policy program is an end-to-end solution that provides them with expert guidance, deep economics understanding and optimized incentives. Unlike other competing products out there that are often focused on speculation and have a poor grasp of market dynamics, our program is designed to help our clients achieve sustainable growth in the long term and maximize the value for all token holders.
- Token economic design and optimization
- Inflation model construction and management
- Definition of adoption targets
- Modeling and analysis
- Multiple pre-designed models for NFTs, DeFi, Mining, GameFi
- Positive price appreciation and price support
- Favorable adoption mechanics
- Clear targets and milestones
- Improved financial decision-making
- Long Term Project sustainability
Our hedging program is designed to address two of the major risks in the market, Price Volatility.
Digital asset companies often raise a significant amount of capital through Ethereum, Bitcoin, or other cryptocurrencies. The problem is that these firms sometimes need to meet the expenses of their projects by paying in fiat, like USD or EUR. This exposes that to high and unwanted cryptocurrency price risk.
Similarly, many crypto miners get most of their revenues by mining and potentially selling cryptocurrencies, but have to meet their electricity costs and operating expenses in fiat. These large crypto holdings expose them to significant crypto price risk and potential inability to meet their fixed and recurring expenses.
Also, digital asset investors hold a portfolio of different assets with different volatility profiles, and they also have to meet some expenses in FIAT. This strategy makes them also vulnerable to price spikes.
Digital Assets exhibit extremely high levels of volatility when compared to traditional asset classes such as equities and fixed income. Bitcoin, for instance, has an average annualized volatility of roughly 80%, while Ethereum has an average annualized volatility of around 115%. By contrast, equity markets exhibit an average annualized volatility of roughly 15%.
These high levels of volatility are reflected in significant drawdowns in digital assets prices. For instance, a company that raised funds for their project through an ICO in January 2021 using Ethereum would have experienced losses of approximately 90% of the amount raised in digital assets. This highlights the critical need for such companies to implement even a basic hedging program to manage price risk or generate uncorrelated positive returns on their assets.
A customized hedging program allows digital asset holders to hedge their exposure to price risk, significantly reducing volatility and locking in a fixed fiat amount.
With our hedging program, your survival chances are 10x what they were before.
The implementation of the hedging program is quite simple and consists in the following steps:
1. Choice hedging program: we have an initial conversation with you to define the hedging program (passive, active, systematic, etc.), the hedging instruments, and the crypto exchange platform to use in the program.
2. Definition client mandate: we define with you the mandate parameters, including the fiat notional or crypto amount to hedge, initial margin deposit, and price levels and parameters for the active hedging program.
3. Review the legal documents: you review and sign the legal documentation regarding the program.
4. Ongoing monitoring: we constantly monitor your account and suggest actions when needed to achieve the objective in the client mandate.
Algo Capital neither possesses nor exercises control over the accounts of its clients; it solely furnishes the blueprint and procedures for executing the hedging approach, and assists the client in overseeing their position.
With our skilled research team, you can determine the fair value of your tokens or equity using our on-chain valuation methodology or traditional approaches. Our analysts are veterans of primary investment shops in various asset classes since 2009 and analyze over 300 tokens annually. Thanks to this vast experience, we have developed reliable valuation frameworks that we're confident to share with our clients.
Managing a digital asset company requires a sound grasp of valuation principles. Without this understanding, making key decisions such as fundraising or selling assets can be challenging. Moreover, inaccurate valuations can be costly and impact a company's long-term success. It's crucial for digital asset companies to have a firm handle on the fair value of their tokens or equity.
The data presented by Chainbroker.io shows that over 70% of ICO projects launched between 2021 and 2022 are currently trading below their launch price, as of March 2023. This is a reminder to both founders and investors of the importance of understanding their token's intrinsic value range. Founders need to be aware of their token's value and how it compares to its current market price. In times of market turbulence, they should seize the opportunity to create value, rather than allowing it to result in losses for stakeholders.
For founders of digital asset companies who are dissatisfied with their ability to estimate a fair price for their token or equity, our service offers a comprehensive valuation solution. Unlike other competing products, our valuation framework utilizes both on-chain valuation frameworks and traditional valuation approaches. Moreover, our experienced research team employs the latest data analysis and market research techniques to provide accurate and reliable valuations.
- On-chain valuation frameworks for tokens and blockchain-based assets.
- Traditional valuation approaches for equity-based assets.
- Expert analyst team with many years of experience in TradFi and digital asset valuations.
- Tailored services to meet the unique needs of each client.
- Make informed decisions about fundraising, selling, or other critical transactions.
- Avoid costly mistakes or missed opportunities by having a clear understanding of their asset's value.
- Save time and resources by leveraging our expert research team and valuation frameworks.
If you'd like to review a sample token valuation conducted by our analysts, you can take a peek here: $REVO valuation
When it comes to securing funding for your digital asset company, you need a partner with the expertise and network to help you succeed. At Algo Capital, we provide Private Placement Advisory services that offer end-to-end solutions for founders looking to raise funding through tokens or equity. Our team will work with you to prepare investor materials, hone your pitches, and connect you with our extensive network of digital asset investors.
Digital asset company founders often face significant challenges when it comes to fundraising. The digital asset space is complex, and many traditional investors may not fully understand the value and potential of digital assets, leading to difficulty in identifying the right investors. In addition, founders may struggle to craft compelling investment propositions that resonate with investors, which can result in difficulty in raising capital and not achieving their funding goals.
For founders of digital asset companies who face obstacles when raising capital, Algo Capital's Private Placement service is a game-changer. Our comprehensive solutions provide customized investor material, coaching on effective pitching, and access to a vast network of investors in digital assets. Unlike native digital asset advisory firms, we have experience in traditional markets and provide end-to-end support that covers all aspects of the funding round, from preparation to execution.
- Customized investor material
- Independent pitching from Algo Capital's experts
- Coaching on effective pitching strategies
- Access to a large network of investors in digital assets
- Tailored solutions for private token sales and equity raises
- Increase your chances of securing funding faster
- Gain access to our large network of investors in digital assets
- Have more time to focus on building
There are two ways in which we can partner with founders:
this includes an end-to-end advisory of the project, from document creation to post transaction
B) Investment Broker (IB):
this includes only the access to Algo Capital's network and a warm introduction.
Our Treasury / Cash Management program is designed to help digital asset companies manage their financial operations effectively. We provide expert financial guidance to maximize liquidity, minimize risk, and optimize cash flow management.
The volatile nature of digital assets makes treasury management a complex challenge for digital asset companies. The constant fluctuations in value and market risk can make it difficult to maintain cash flow and balance digital assets with fiat expenses.
For founders of digital asset companies and investors who are dissatisfied with the current offerings in the market, our Treasury / Cash Management program is a comprehensive financial management solution that provides key features such as risk management, liquidity management, and cash flow optimization. Unlike other competing products, our program is tailored to the unique challenges faced by digital asset companies, providing customized solutions and expert guidance.
- Cash flow forecasting and analysis in both FIAT and digital assets
- Risk management and hedging strategies
- Liquidity management and optimization
- Reduced operational risks
- Improved cash flow management
- Minimized costs and maximized liquidity
- Improved financial decision-making
Non-Performing Token (NPT) Restructurings
Our Non-Performing Token (NPT) Restructuring service is designed to help founders rectify past mistakes and ensure the survival of their companies, especially in challenging bear market times. Our end-to-end service is aimed at pinpointing the main fallacies with a token or NFT project and restructuring it to be more sustainable and attractive to financial backers in the long term.
As founders, you understand the importance of having a sustainable business model. However, sometimes mistakes are made along the way, and it's essential to acknowledge them and rectify them before it's too late. You might have mispriced the token or designed a weak token monetary policy. Failing to address these issues can be very costly, and could jeopardize your company's future as well as damage your community.
For founders of digital asset companies who are dissatisfied with the performance of their token and are struggling to find support and adoption, our NPT Restructuring service is a new framework that provides founders with bespoke multidisciplinary end-to-end solutions to adjust the trajectory of their project. Unlike other offerings out there, our service is designed by professionals with hands-on experience in company restructurings as well as digital assets.
- Redesign of tokenomics
- Assessment and adjustment of you token supply and inflation model
- Definition of cost centers and expenses cut
- Treasury management adjustments
- Creation of new token use cases to drive adoption
- Access to expert advisors in economic incentives, capital markets, and restructurings
- Personalized advice and guidance to identify and address main structural issues with your token
- Create a more sustainable and attractive project, leading to a higher likelihood of survival and success for stakeholders
Our Dealflow Origination services offer investors access to a carefully curated selection of investment opportunities in digital asset companies and protocols. We leverage our extensive network and experience in the crypto market to identify high-potential opportunities that meet our clients' investment criteria.
Investing in digital assets can be daunting, as the market is constantly changing and can be difficult to navigate. It's not always easy to identify the most promising investment opportunities, and without the right expertise and connections, it can be risky to put your money into new and emerging digital assets. This is particularly true in a market that lacks clear standards or regulations, and involves innovative technologies, which can make it difficult to evaluate the risks and potential rewards of any given investment. As a result, many investors struggle to make informed decisions about where to invest their money, and may miss out on valuable opportunities as a result.
For investors who are dissatisfied with their access to unique investment opportunities, our Dealflow Origination services provide a new level of access to carefully selected deals in digital assets. Unlike competing products, our services are tailored to the unique investment requirements our clients, leveraging our extensive network and experience in the crypto market to identify high-potential opportunities that meet our clients' criteria.
- Carefully curated selection of investment opportunities
- Extensive network and experience in the crypto market
- Minimizes time and risk associated with identifying target opportunities
- Access to a curated selection of high-potential investment opportunities
- Find opportunities that meet our your investment criteria
- Tailored to the your unique needs and mandates
- Avoid wasting time and receive only pre-selected deals
Tailored RESEARCH Reports
Algo Capital offers research services tailored to the needs of a multiplicity of investors seeking to make informed investment decisions in the digital assets market. Our services cover the entire stack, from in-depth analysis of single tokens to industry reports on Mining, DeFi, or NFTs. We provide any information you need, whether it's on chain or off chain.
The rapid evolution of digital assets has left investors struggling to find trustworthy information to make sound investment decisions. Existing research services in the market may not be comprehensive enough to provide investors with relevant information, leading to missed opportunities and increased risk.
For investors looking for alpha in the digital asset space, Algo Capital provides a unique category of research solutions that builds upon years of experience in traditional equity research. Our research is meticulously tailored to address key challenges, giving comprehensive coverage of the entire digital assets stack. Unlike other research services out there, our solutions are entirely based on our own interpretations and don't rely on consensus views.
- Customizable research services tailored to your specific needs
- Experienced research team with expertise in digital assets
- Comprehensive coverage of the entire digital assets stack
- Access to timely and relevant information on chain and off chain
- Increased transparency in investment decisions
- Improved risk management strategies
- Enhanced investment returns
- Access to accurate and timely information to stay ahead of the curve
Algo Capital offers On-Chain forensics services to investors seeking to discover risks and excess returns in the digital assets market. Our service provides in-depth blockchain analysis capabilities, from transaction flows to CEX and DEXs volumes, option and derivatives exposures, as well as intrinsic leverage assessments. Never be misinformed again with exploiting our forensics tools.
Investors in the digital assets market face significant challenges in identifying profitable investment opportunities. The lack of transparency in the market and the difficulty in analyzing complex data on the blockchain make it challenging for investors to make informed investment decisions.
Algo Capital provides On-Chain forensics services to investors who are interested in identifying potential risks and excess returns in the digital assets market. Our service offers comprehensive blockchain and traditional analysis capabilities that include transaction flows, CEX and DEX volumes, option and derivatives exposures, and intrinsic leverage assessments. By relying on our forensics framework, investors can avoid being misinformed and make badly calibrated decisions.
- Customizable On-Chain foresincs services tailored to your specific needs
- Experienced team with expertise in blockchain analysis
- Comprehensive coverage of the digital assets market
- Improved transparency in investment decisions
- Enhanced risk management strategies
- Improved investment returns through alpha and risk discovery
- Access to accurate and timely information to stay ahead of the curve
Our Banking Solutions program, part of our Ancillary services is offered through a select network of partners. Algo Capital will just assess the needs of the digital asset company and introduce it to the right partner which will be suited to serve their particular needs.
Digital asset companies and founders often face challenges when it comes to finding trustworthy banking partners to provide FIAT on/off ramps for their businesses. This has become even more difficult after the fallout of Silvergate and Signature, which has led to a decrease in the number of banking partners that are willing to serve the high-value digital asset industry. As a result, companies in this industry have been struggling to find reliable banking partners that can meet their business needs.
For digital asset companies and founders who are struggling to find reliable FIAT on/off ramps after the fallout of Silvergate and Signature, our Banking Solutions program is the solution they have been searching for. We understand the difficulties that come with finding trustworthy banking partners in this high-value industry, and we can help our clients connect with the right partner. Unlike other competing products, we can offer our clients reliable banking solutions with a personalized touch.
- Access to a select network of trustworthy banking partners
- Personalized service to meet the unique needs of each client
- Efficient and reliable FIAT on/off ramps to meet your business needs
- Peace of mind knowing you are working with a trusted partner
- Streamlined processes for quicker and more efficient transactions
- Access to top-notch banking services tailored to your unique business needs
LEGAL & COMPLIACE
Our Legal & Compliance service is part of our Ancillary offering that we provide through a carefully selected network of partners. The service is designed to help digital asset companies and founders navigate the complex and constantly evolving regulatory landscape. We provide legal and compliance solutions that are tailored to your specific business needs, so you can focus on growing your business with the confidence that you are in full compliance with all applicable laws and regulations.
The digital asset industry faces significant regulatory uncertainty and compliance challenges. This requires a legal team that can work across jurisdictions and provide timely advice on managing assets without running afoul of the law.
It is interesting to know that according to research from Castle Island Ventures. every 6th employee at a digital asset company is a lawyer, whereas in a normal company is around the 30th. We have cherry picked network of partners that can help you address any of your compliance and legal issues.
For digital asset companies and founders who are challenged by the current regulatory environment, our Legal & Compliance service is a trustworthy solution to keep one step ahead of regulators. Unlike other legal and compliance solutions, our partners' service is tailored specifically to the digital asset industry and is designed to help our clients navigate the complex and ever-changing regulatory landscape. Their team of experts is well-versed in the latest laws and regulations, and can provide you with timely and impactful insights.
- Tailored legal and compliance solutions that are specific to the digital asset industry
- Access to a carefully selected network of partners with expertise across jurisdictions
- Timely and effective legal advice and support that helps you stay ahead of regulatory changes
- A team of experienced legal professionals who are dedicated to helping you grow your business while staying compliant with all applicable laws and regulations
- Reduce legal and compliance risks associated with operating in the digital asset industry
- Save time and money by avoiding costly legal disputes and regulatory penalties
- Gain access to the latest legal and regulatory insights and expertise
- Get peace of mind knowing that your legal and compliance needs are being handled by professionals
Tokenholder Custody & Protection
Algo Capital's Token Holder Custody and Protection service is dedicated to ensuring the safe management of digital assets for founders and stakeholders. The service is designed to provide protection against hacks, theft, as well as establish mechanisms for safeguarding the protocol in case a founder becomes incapacitated. The service is offered in unison with other trusted technical partners.
As digital assets become increasingly valuable, founders face significant risks from hacks and thefts. Additionally, the death or incapacitation of a founder can lead to confusion and uncertainty in the management of their digital assets. These challenges are further compounded by the fact that there is currently no clear standard mechanism to safeguard assets or manage successions on the blockchain. This leaves digital asset founders vulnerable to potential loss of assets and uncertainty in the long-term management of their projects.
For founders and investors of digital asset companies who are dissatisfied with the current way their are protecting their assets, Algo Capital's Token Holder Custody and Protection service is a new idea that provides comprehensive protection against hacks and thefts, as well as clear mechanisms for succession in case of a founder's incapacitation. Unlike competing products, our framework is proprietary and differs from any other solution available in the market today.
- Protection framework against hacks and thefts
- Inheritance scheme
- Partnered with trusted professionals to provide a comprehensive solution
- Provides secure and professional storage of digital assets
- Secure tokenholders value and protect it against attacks
- Avoid "token runs" and secure liquidity
Algo Capital does not hold a license as a financial institution in accordance with any regulatory body, nor does it engage in activities that fall within the purview of regulated activities. Clients bear sole responsibility for any investment decisions they make, and Algo Capital shall not be held liable for any loss or damages arising out of such decisions. Although Algo Capital provides information and guidance regarding investment strategies and transactions, clients retain complete decision-making authority.