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2Cents Capital
Crypto Fund
Diversified crypto fund leveraging DeFi, quantitative strategies, and crypto investments for long-term growth and venture opportunities.
The New Smart Investment Solution
A comprehensive crypto investment fund focused on value creation through a balanced decentralized finance (DeFi) portfolio, quantitative trading strategies,venture investment, and long-term strategy with added benefit of structured products.
Our Portfolio Composition
Long-Term
2Cents Crypto Long-Term Fund gives exposure to diversified portfolio of screened cryptocurrency which is actively managed.
We first screen the coin with our framework, and allocate portfolio accordingly. Depending on different time frame for different factors we actively manage the portfolio.
Risk Management
Diversify your portfolio across assets and sectors.
Follow rigorous framework to select coins and invest in coins with high-quality present and future potential.
Active management according to various alerts and scenarios in the market.
Third Party Risk - We utilize multiple brokers to minimize third party risk.
A long-term portfolio focused on Bitcoin (BTC) and Ethereum (ETH), the two most established cryptocurrencies, offering exposure to the most secure and widely adopted digital assets.
- Stable and High Liquidity: Both BTC and ETH are the most liquid and trusted cryptocurrencies, making them safer and easier to trade.
- Lower Volatility: Compared to altcoins and smaller crypto projects, BTC and ETH tend to experience less extreme price fluctuations.
Risk Management
- Diversification: Limit exposure to BTC and ETH to a percentage of your portfolio to balance with other asset classes.
- Regular Rebalancing: Monitor and adjust the allocation between BTC and ETH to maintain desired risk levels, especially as the market evolves.
A long-term portfolio that focuses on a broad range of alternative cryptocurrencies (altcoins), including projects outside of Bitcoin and Ethereum, with a focus on high potential for growth.
- Higher Growth Potential: Altcoins often offer more growth potential than BTC and ETH, particularly in emerging sectors like DeFi, NFTs, and Layer 2 solutions.
- Diversification: A well-selected range of altcoins helps mitigate risks associated with any single cryptocurrency.
Risk Management
- Due Diligence: Thoroughly research each altcoin’s team, technology, and use case to avoid investing in low-quality or scam projects.
- Position Sizing: Limit exposure to each altcoin to prevent overexposure to underperforming assets.
A highly speculative and high-risk portfolio focused on small-cap, highly volatile tokens, DeFi projects, and other emerging, unproven cryptocurrency assets with the potential for massive returns (and losses).
- Massive Upside: Degen investments can lead to significant returns if the projects gain mainstream adoption or achieve high network effects.
- Exploration of New Frontiers: Offers exposure to innovative projects that could potentially reshape the blockchain and crypto landscape.
Risk Management
- Small Allocation: Allocate only a small portion of your overall portfolio to degen assets to limit exposure to extreme volatility and potential losses.
- Exit Strategy: Have a clear exit strategy, including predefined profit-taking points and loss limits to protect against large drawdowns.
Quant
2Cents Crypto Quant uses quantitative strategies including but not limited to arbitrage, HFT, machine learning to trade and invest in cryptocurrencies using automation.
After rigorous research, we implement a well found strategy and do various analysis including backtesting and work-forward optimization. After it passes our framework we run the strategies.
Risk Management
Market Risk: Maintain multiple portfolios with uncorrelated strategies.
Operational Risk: Every strategy has to pass our risk analysis framework and go through robust testing before deploying.
Security Risk: Secure funds with multi-signature wallets.
We have a strict stop loss policy for each strategy.
Automated trading strategies using algorithms to exploit market inefficiencies, including high-frequency trading (HFT), ML, and momentum strategies.
- Execution speed is critical.
- Strategies rely on work forward backtesting and real-time data feeds.
- Requires low-latency systems.
Risk Management
- Use circuit breakers to halt trading during extreme market events.
- Monitor latency and slippage to prevent execution errors.
- Conduct rigorous backtesting and forward testing to validate models.
DeFi involves interacting with decentralized protocols for profit through arbitrage (price differences across platforms) and market-making (providing liquidity in exchange for fees).
- Arbitrage captures risk-free profits from price discrepancies.
- Market making provides liquidity but exposes to impermanent loss.
- Highly competitive but with right tech stack, it is very profitable.
Risk Management
- Use smart contract audits to avoid exploits.
- Cap liquidity exposure to mitigate impermanent loss.
- Maintain capital reserves for rapid deployment during opportunities.
Extracting market insights by analyzing social media, news, and blockchain data. Aggregating on-chain and off-chain data for comprehensive market analysis.
- Sentiment analysis identifies market mood (bullish/bearish).
- Data aggregation provides real-time insights for decision-making.
Risk Management
- Ensure data source reliability to avoid misleading insights.
- Use redundant data feeds to minimize information lag.
- Regularly update and validate sentiment models for accuracy.
Automated systems for asset allocation, rebalancing, and optimization based on predefined rules and algorithms.
- Focuses on risk-adjusted returns.
- Adjusts portfolio based on market conditions and user-defined constraints.
Risk Management
- Implement rebalancing thresholds to control transaction costs.
- Use Monte Carlo simulations to stress test portfolio performance.
- Set diversification limits to prevent overexposure to single assets.
DeFi
2Cents Crypto DeFi provides diversified, data-driven access to on-chain yields, outperforming traditional markets through robust network, protocol, and coin selection.
Risk Management
Maximum Network Allocation : 20%
Insured Protocols : 80%
Un-Insured Protocols : 20%
While the DeFi space offers lucrative opportunities, it also comes with inherent risks, including smart contract vulnerabilities, impermanent loss, and market volatility. To mitigate these risks, the 2Cents Crypto DeFi Yield Fund employs a robust selection process, focusing on well-audited and insured DeFi protocols. The team ensures that all protocols chosen are thoroughly vetted for security and reliability, with multiple layers of protection in place to safeguard against potential risks.
The 2Cents Capital Stablecoin Lending Fund delivers diversified, uncorrelated access to on-chain yields, leveraging quantitative metrics to optimize performance. Historically, DeFi yields have outperformed traditional fixed-income markets. By employing a robust Network, Protocol and Coin selection process, the fund identifies low-risk opportunities across established the DeFi ecosystem, ensuring consistent returns through strategic diversification and data-driven decision-making.
Target Audience
- Investors seeking exposure to the high-growth DeFi ecosystem.
- Investors looking for diversified, risk-managed alternatives to traditional fixed-income investments.
Objective
- Achieve steady and competitive yields by leveraging low-risk opportunities within the DeFi ecosystem
- Offer a diversified portfolio with uncorrelated exposure to on-chain yields, minimizing risk through strategic allocation
- Utilize quantitative metrics and a rigorous network, protocol, and coin selection process for data-driven decision-making
Coming Soon.
Coming Soon.
Venture
2Cents Crypto Venture is a type of investment fund that focuses on providing capital to early-stage startups in blockchain and investment in ICOs/IDOs.
Proprietary Investment Mechanism
Our infrastructure-agnostic strategy emphasizes teams building at the application layer in their respective categories. The Fund maintains a concentrated portfolio of high-conviction investments, guided by an innovative project scoring framework that evaluates: We are actively involved with the projects and manage the portfolio.
Protocol Entry Score: Assessing potential and alignment with high-growth criteria.
Ongoing Monitoring: Actively tracking developments and market performance. returns. To minimise the risk, we follow our framework and invest in only value-driven projects.
Strategic Exit: Maximizing returns through data-driven decision-making.
Inherent Risks and Considerations
High Risk and Sophisticated Investors: Investing in the Fund involves significant risk and is suitable only for sophisticated investors who fully understand and are willing to assume these risks. Such investors must have the financial capacity to withstand potential losses, including the complete loss of their investment, and should not treat the Fund as their sole investment strategy.
Potential Conflicts of Interest: There are significant actual and potential conflicts of interest associated with the Fund, which may negatively affect its performance and, in turn, the returns to Limited Partners. Investors should be aware of these conflicts and their potential impact on the Fund’s operations.We diversify our investment to include various sectors.
Need for Independent Advice and Risk Evaluation: Prospective investors must carefully assess the risks associated with the Fund and consult their own legal, tax, and financial advisors to determine whether this investment aligns with their financial goals and risk tolerance.returns. To minimise the risk, we follow our framework and invest in only value-driven projects.
Structured Products
Crypto Structured Products are customised financial instruments that combine multiple components, such as derivatives, fixed-income securities, or cryptocurrencies, to create tailored risk-return profiles for investors.
Coming Soon.
Coming Soon.
Meet the team behind
Cryptofolio
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Frequently Asked Questions
Cryptocurrency is a digital form of money that uses cryptography for security and operates on decentralised networks utilising various blockchain technology. It has created a whole new financial sector.
To invest in the 2Cents Crypto Fund, simply contact our team for more information on the investment process, minimum requirements, and other details. We will guide you through the steps for becoming an investor and ensuring that your capital is allocated efficiently.
The minimum investment required for the 2Cents Capital DeFi Yield Fund will be disclosed during the onboarding process. Please reach out to our team for more detailed information based on your investment preferences.
There are many different type of risks involved in crypto investments, we can tailor the investment to your risk taking capacity.
a.Management Fee: Usually around 2% of assets under management (AUM) annually.
b. Performance Fee: Often 20% of profits (above a 24% hurdle rate).
