TokenMarket insights on Hong Coin
By Gavin Knight - Published 2016-10-27
Basically you’re investing in a fund, like any other fund. The team interviews projects and decides on their ability to succeed. If they can pick successful investments, than there’s potential for returns. It would function like any venture capital firm however with some community involvement. The success of the project lays on the “management team”, and their ability to fund successful entities. As venture capital, and speculative investment in companies is very difficult and many projects are flops there’s a high potential the fund will not be able to generate sufficient profit. Hence, this is a risky investment solely based on the numbers game of investments, and the success of returns. It feels like it’s an investment in an ICO inside and ICO, where the portfolio is hand picked. Their code base is minimal, but credit for posting something. It is a basic defined ethereum contract. If you place enough trust in this entity facilitating the picks of companies, than you can believe in long term success. If not, then there’s your answer.