Greenwich Blockchain Group - NET
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Greenwich Blockchain Group
The Opportunity We are accepting investors in the form of limited partnerships in Greenwich Blockchain Group Fund I, an investment fund specializing in digital assets. Greenwich Blockchain Group 2
The
Entities General Partner
Greenwich Blockchain Group, LLC (CT-Based)
Investment Fund
Greenwich Blockchain Group, Fund I (DE-Based)
Limited Partners
3
At a Glance
A non-traditional
asset class requires
a non-traditional We have unique global expertise in
digital assets → the market is moving
approach.
to us; we aren’t moving to the
market. And this market is exploding.
Our core competency is analyzing the
digital asset space beyond Bitcoin
and Ethereum. Our knowledge of
the landscape combined with our
understanding of digital communities
enables us to determine winners
and losers over the long term. The
importance of understanding these
communities and their impact
on price movements and token
valuations cannot be overstated.
Greenwich Blockchain Group 4
01 Distributed ledger technology will
fundamentally alter nearly every
industry. This evolution is on par
with the advent of the Internet.
Core 02 The movement from fiat to digital
currencies is a paradigm shift in the
Values
global monetary system not seen
since the U.S. left the gold standard.
03 This transition is underappreciated
by investors, creating numerous
opportunities for extraordinary ROI.
Greenwich Blockchain Group 5
The Advantages
Distinct Advantages
of Investing with GBG 01 Knowledge Base
We have been participating in
Our advantages stem from the team’s considerable the blockchain industry for
experience in the blockchain and financial spaces: over five years and investing in
cryptocurrencies for nearly a decade.
We are well-acquainted with dozens
of projects and tokens, and have
been for some time.
02 Information Channels
Two of our founders built and
managed over fifty digital
communities for various
blockchain startups. These
channels provide a wealth of
information, and we have the tools
to act upon it.
Greenwich Blockchain Group 6
Bitcoin Price
Predictions
Bloomberg Intelligence Citibank Executive JP Morgan $650k
$100k by 2025 $318k by end of 2021 by end of 2022
Raoul Pal - $1mm by Cathie Wood - $500k if
Michael Saylor - Bitcoin value 2025 institutions assign even
proposition of ‘Store of Value’ a single digit percent
is $250 trillion or more” allocation
Greenwich Blockchain Group 7
Bitcoin Price Chart Greenwich Blockchain Group 8
Adoption
Tudor Investment Corporation S&P Dow Jones to launch IBM & Maersk are
disclosed 2% AUM BTC position cryptocurrency indices in 2021 developing a blockchain
in 4Q20 supply chain solution
CME Group now lists Bitcoin
Guggenheim may now invest and Ethereum futures Morgan Stanley offers
up to $530mm in Bitcoin private wealth clients
access to Bitcoin funds
Tesla converted $1.5bn of its
balance sheet cash reserves
Northern Trust and Standard into Bitcoin JP Morgan will offer an
Chartered partnered to launch actively traded Bitcoin fund
an institutional-grade custody
solution for cryptocurrencies
Greenwich Blockchain Group 9Opportunity Set
There are thousands of cryptocurrencies in
existence today. Our portfolio holds 20-40
tokens, focusing on best-in-class.
Greenwich Blockchain Group 10Opportunity Set -
We invest in digital
assets that accomplish
one of two things. . . ONE, Build or enhance pertinent
infrastructure underlying the
blockchain ecosystem,
or
TWO, Catalyze evolution in legacy/
analog businesses and industries through
the use of blockchain technology.
Industries that will immediately benefit
from blockchain include:
• Supply chain/logistics
• Identity security
• Data storage/ownership
• Gaming
• Energy storage/transfer
• Social media
• Finance (DeFi evolution occurring now)
Greenwich Blockchain Group 11Portfolio Construction
The portfolio is comprised of a
”beta” sleeve and an ”alpha” sleeve.
The beta sleeve of Bitcoin When required, we will they should do it themselves.
mitigate risk by allocating The comparison we like to
(BTC) and Ether (ETH) will to stablecoins. This will make is to that of a long/
generally comprise 15-30% of allow us to remain long-only short equity manager
and protect the portfolio investing significant assets
the portfolio based on tactical in a bear market (downside into the FAANGs or Tesla.
protection).
weighting decisions. The alpha We offer an understanding of
sleeve of Altcoins will comprise We are naturally bullish on - and access to - the Altcoin
both BTC and ETH, but they universe, which other funds
70-85% of the portfolio. are not a value-add for us. and investment vehicles
Investors should not be do not provide. This is our
paying us to gain significant distinct competency and the
exposure to those assets; portfolio will reflect that.
Greenwich Blockchain Group 12Example - $LINK
Chainlink is an example of a token
that falls under the first criterion
of our strategy: enhancing the
underlying blockchain ecosystem.
What: Why: Who:
Expands the capability of smart Smart contract adoption Users include Google, Arbol, Celsius,
contracts by enabling access to real- will continue to surge. Nexus Mutual, Oracle, SWIFT.
world data, events, payments, and There is a massive ecosystem
more without sacrificing the security of partnerships.
and reliability guarantees inherent to
decentralized blockchain technology. See https://chainlinkecosystem.com/
ecosystem/ for an exhaustive list.
Greenwich Blockchain Group 13Example - $VET
Vechain is an example of a token that falls
under the second criterion of our strategy:
catalyzing evolution to traditional, analog
businesses and industries through the use
of blockchain technology.
What: Why: Who:
VeChain enhances supply chain They have a significant Users include PWC, BMW,
management. From product source footprint in China. DB Schenker, and extensive
materials, to servicing history, partnerships with China at the
to spare part replacements, national level.
information about the supply chain
can be recorded and verified on the For an exhaustive list, see:
VeChainThor blockchain.
https://vechaininsider.com/
partnerships/a-complete-list-of-
vechain-partnerships
14Example - $UNI
Uniswap is an example of a token that falls
under the second criterion of our strategy:
catalyzing evolution to traditional, analog
businesses and industries through the use
of blockchain technology.
What: Why: Who:
Uniswap is a decentralized exchange $25 billion Andreessen Horowitz, Union
protocol built on Ethereum which exchanged on Uniswap Square Ventures LLC. Liquidity
allows users to swap ERC20 tokens. It in January 2021. providers, developers, traders.
utilizes an automated market making
system rather than a traditional order-
book; instead of matching individual
buy and sell orders, the protocol draws
on liquidity pools.
15Methodology
We utilize a blend of
qualitative and quantitative
inputs to generate a price QUALITATIVE
target range for tokens in Qualtitative factors include our
assessment of the use case of
the token, the tokenomic model,
our opportunity set. governance structure, and the
people behind the token.
QUANTITATIVE
Quantitative factors include
expected total addressable
market (TAM), current market
cap, liquidity, active users,
transaction volume, token
supply, and fees generated.
Greenwich Blockchain Group 16Methodology (cont’d) We also utilize consensus valuation methods, depending on the type of token being analyzed, such as Network Value to Transaction Volume, Stock-to-Flow, and Metcalfe’s Law. Finally, we canvass our information channels to determine the time horizon when we expect prices to move towards our range. Our expertise in navigating these channels is critical. Alongside the depth of our knowledge base, this ability is what sets us apart. Greenwich Blockchain Group 17
Why Us?
We are the
Early Adopters
We are early investors in blockchain industries. The expertise gained from
and cryptocurrencies. We recognize these experiences informs our ability
their world-altering properties to successfully analyze and access
not just as secure, intelligent the Altcoin space.
investments, but as shaping
fundamental transformation Wall Street is now realizing the
across industries. potential of crypto as a money
making space, but their scope
We took part in the ICO craze and is limited to yield potential. We
the crypto winter. We have worked understand and have been a part of
with several successful blockchain/ the products, the people, and have
crypto startups which have or are the requisite knowledge to navigate
currently disrupting the shipping, this volatile space.
music, gaming, payroll, and payment
Greenwich Blockchain Group 18Why Us?
Harnessing
Information
We led bitcoin.com’s marketing With Axie Infinity, we created Our fingers are on the pulse of
efforts in building out their Twitter, Facebook and Instagram channels, the industry; being intimately
Facebook, Instagram, and Youtube bringing tens of thousands of users acquainted with the many different
channels. We created campaigns to onto the platform. When we began and tucked-away platforms allows
promote the launches of cutting- our relationship, they sold - in us to take advantage of timely and
edge blockchain projects, such as aggregate: $1.5mm worth of virtual valuable information.
local.bitcoin.com, and the updated “land” throughout FY2019. This
2020 bitcoin.com wallet. February, they sold a singular plot
for $1.5mm.
Strongblock is a company founded
by the lead coder of EOS (largest The recent developments in the
ICO ever with $4 billion raised), equity markets (GameStop, AMC,
David Moss. Working closely with Nokia) showcase the potential
David, we built all of Strongblock’s and power held by these digital
social communities, including their ecosystems in today’s
Reddit, Facebook, Twitter, and investing world.
Telegram, and led their marketing
campaigns throughout.
Greenwich Blockchain Group 20Positive Carry
Mechanisms
Staking / Staking rewards
Staking is a less resource-intensive
alternative to mining. It involves holding
funds in a cryptocurrency wallet to
support the security and operations of
a blockchain network, allowing the user
to earn staking rewards.
Yield Farming
Yield farming, also referred to
as liquidity mining, is another
way to generate passive income
from cryptocurrency holdings. In
simple terms, it means locking up
cryptocurrencies to earn interest.
A liquidity provider deposits funds
into a liquidity pool and is rewarded
(potentially hefty) interest for doing so.
21Risk/Return Profile Aleh Tsyvinski, an economist and currently the Arthur M. Okun Professor of Economics at Yale University, published a research piece about risks and returns of digital assets. He concluded that most digital assets have a higher Sharpe ratio than do traditional bonds and stocks. While cryptocurrencies experience higher volatility (at times, significantly so), the investment is well worth the added risk due to the greater return potential. We agree. Greenwich Blockchain Group 22
Cherry Picking UNI - Uniswap AXS - Axie Infinity LINK - In January VET - Vechain CVC - Civic launched on launched at $0.14 in 2020, the Chainlink token began 2020 was listed on Coinbase at $3.44 November 2020, it token was trading at at $0.0054 and has Coinbase Nov. 6, in September 2020 is now trading at $1.80, it has a risen to $0.24 2020 at $0.05 and and currently sits $ ( % current price o ( 000+% increase) is now $0. at $2 . ( % increase) $ ( % (a 00% increase). increase) increase) If you have exposure to one token that undergoes a bull run similar to the above, that can provide the returns necessary to support the entire portfolio. Our job is to identify and obtain material exposure to these types of holdings. *All prices are as of , 2021* Greenwich Blockchain Group 23
Historical Asset Class Returns *Through / /2021 Source: yCharts Greenwich Blockchain Group 24
Risk and Return Attribution
Hypothetical Simulated Portfolio Risk & Return Attribution Source: ARK Invest
September 25, 2013 Through November 20, 2020
Global 60/40 Global 60/40 Global 60/40 Global 60/40
+1% Digital Assets +3% Digital Assets +5% Digital Assets
Digital Assets
1% 3% 5%
Capital-at-Risk
99% 97% 95%
14%
35%
48% 52%
Return Attribution
65%
Greenwich Blockchain Group 25Fund Information
Investment Terms
Initial Lock-Up:
Minimum Initial Investment: 6 MONTHS
$100,000
Liquidity:
Fee Structure: QUARTERLY
2% MANAGEMENT,
20% PERFORMANCE High Water Mark:
YES
Greenwich Blockchain Group 26Fund Information
Outside Counsel:
RIVELES LAW GROUP
Business Fund Administrator:
SUDRANIA FUND SERVICES
Partners Auditor:
RICHEY MAY & CO.
Bank:
SILVERGATE
Greenwich Blockchain Group 27Fund Information Fund Performance *From fund inception date of 1/16/2021 **Net of fees Greenwich Blockchain Group 28
Bios John Kavanagh, CEO John has a broad background in finance, having spent 7+ years working across investment consulting, global macro operations, and start-up corporate finance. Most recently, he helped build the finance department as the first hire in the group for a manufacturing and distribution start-up located in Dallas, TX. His responsibilities included forecasting cash flows, pro-forma financial statement preparation, overseeing working capital utilization (supply/demand planning), and management of the ERP software. Prior to that, John spent four years in the middle office for a global macro hedge fund. Here, John developed his passion for markets, an in-depth knowledge for products across multiple asset classes, as well as an understanding for the various operational processes and controls that are requisite in running a successful fund. Outside of the office, John is an avid sports fan, and was a 2x captain of the Washington & Lee Football program in college. He also enjoys golfing and reading. Greenwich Blockchain Group 29
Bios Anthony Parry, COO Anthony Parry has a decade of experience working at successful startups. Early in his career, Anthony worked at Flex Fleet Rental opening their first satellite office in Columbus, OH, before moving to NYC to start the north east office. After Flex Fleet Anthony moved to a blockchain marketing company, Theorem Labs, as a social media manager and worked his way up to COO. After 1 year with Theorem Anthony co-founded Theorem’s sister company, Market Dynamics, located in Lugano Switzerland. At Market Dynamics, Anthony worked closely with the founders of Pangea Blockchain Fund who invested in several blockchain startups. Here Anthony collaborated directly with many successful blockchain founders to grow and curate social media channels for companies that are disrupting their industries with blockchain technology. At Theorem Labs & Market Dynamics Anthony built, managed, and supported social media communities and marketing campaigns for several leading blockchain companies including, Bitcoin.com, Strongblock, Axie Infinity, and GoCrypto. Outside of his career Anthony has played 4 years in Major League Rugby for Rugby United New York. Greenwich Blockchain Group 30
Bios Alex Clark, CIO Alex is a financial and technology market brand specialist with 5+ years working in marketing. He started in hedge fund marketing at Morgan Stanley, later moving to Paw Partners. At Theorem Labs, he executed 40+ end to end marketing campaigns for start up companies focused on blockchain technology solutions. He has 8+ years of trading experience, 5 of which include trading in the cryptocurrency market. Greenwich Blockchain Group 31
Fund Information
Closing
Thoughts
Our experience in the blockchain space
provides us with a deep knowledge base of
the opportunity set and the capabilities to
navigate powerful information channels. We
provide an understanding of, and access to,
Altcoins, that you will not find anywhere else.
The adoption of bitcoin and implementation
of blockchain technology is currently
underway. It’s happening in financial services,
investment management, and the broader
corporate world. Countries with high inflation
and capital controls are leading the sovereign
adoption of cryptocurrencies. This increases
the network effect and underlines the
inevitability of the paradigm shift taking place.
Altcoins are next. This is a burgeoning asset
class, and the time is now for investors to gain
exposure. This is just the first inning.
Greenwich Blockchain Group 32Greenwich Blockchain Group CONTACT JOHN@GREENWICHBLOCKCHAIN.COM ANTHONY@GREENWICHBLOCKCHAIN.COM ALEX@GREENWICHBLOCKCHAIN.COM
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