Open source pioneer Dr. Marc Fleury today launches Two Prime, a fintech firm that focuses on the financial applications of crypto to the real economy. Two Prime’s Chief Executive Officer Fleury and Chief Operating Officer Alexander S. Blum are bringing abundance to the crypto industry by introducing a new breed of cryptocurrency with safeguard mechanisms that use real assets. Two Prime’s ultimate goal is to bring about the next phase of crypto’s financial applications and reinvigorate the crypto market by introducing traditional tools and models to the space.
Marc Fleury said: “It’s been 11 years since Satoshi Nakamoto published the now infamous Bitcoin Whitepaper. Despite its debut as an alternative financial architecture in reaction to the financial crisis, crypto has yet to reach its full potential as a viable asset. The industry has largely been focused on finding blockchain’s ‘killer app,’ which has not been fruitful thus far and largely ignores Bitcoin’s original thesis — financial applications. In order for the industry to mature and evolve, we must refocus on finance and take a look at where crypto has succeeded. Specifically, crypto has succeeded 1) as a store of value; 2) in rapid fund formation, as demonstrated during the ICO boom; and 3) in the prevalent use of asset-backed tokens in the markets. By bridging the best practices of traditional finance and crypto, our aim is to create a new asset class by applying traditional financial models and theories to crypto and bringing trust and professionalism to the industry.”
For its entry to the market, Two Prime announces the creation of the FF Accretive Token (FF1), demonstrating how a cryptocurrency can generate demand and liquidity. Two Prime will initially emit up to five million FF1 tokens into circulation onto secondary markets, such as exchanges. The funds raised through the sale of FF Accretive Tokens will be invested in well-diversified public and private sector projects through a managed basket of assets. Specifically, the FF1 funds will be invested in the blockchain sector in a structured portfolio of cryptocurrencies, debt, and equity instruments, bringing support to the space. The Continuous Token Offering (CTO) replicates the private equity approach of staged, de-risked financing and will continuously release additional tokens into circulation in line with real demand. The CTO model may be replicated in future FF Accretive Tokens in a multitude of verticals such as green technology and smart cities. So far, Hong Kong-based private equity firm SIB Investment Limited has made an initial investment in FF1 tokens.
“One of the greatest successes of cryptocurrencies is in rapid fund formation, as demonstrated during the ICO boom,” said Alexander S. Blum. “In 2017, seed funding for startups via tokens offerings on exchanges overtook private equity. As VCs generally shun the seed stage, it filled a niche that traditional financial players left unaddressed. In stark contrast with VC or PE structures that lock up limited partners to their investments for years, the ICOs provided a liquid instrument for purchasers. Unfortunately, in a classic case of misallocation, many ICOs in 2017 wasted their proceeds on useless tech, lavish parties, and illicit activities. With the CTO, Two Prime aims to bring traditional asset allocation to crypto in order to reignite rapid fund formation, restore the industry’s reputation, and professionalize the crypto markets.”
As the creator of one of the first sustainable and commercially successful open source business models, Fleury is very familiar with professionalizing a promising but nascent industry. In 1999, Fleury founded JBoss, an open-source application server, during a time when corporations associated the technology with criminals and nefarious characters. Fleury turned JBoss into a commercially viable business and, in seven years, sold JBoss to Red Hat (eventually acquired by IBM) for $420 million USD.
Regarding the launch of the FF1, Eugene Chen, Head of Asian Family Office at SIB Investment Limited, said of their investment: “SIB is proud to be participating in Two Prime’s FF1 product and the Continuous Token Offering model. It’s a pleasure to find institutional grade products that will lead the next wave of global finance.”
“Adopting proven best practices from traditional investments into the crypto industry is at the core of what we do at NGC Ventures,” said Tony Gu, Founding Partner at NGC Ventures. “Two Prime’s mission to professionalize the industry and apply a traditional capital allocation model to a new asset class is an exciting and unique approach that will resonate with investors. We’re happy to share our learnings with Marc and Alex, and support their innovative initiatives along the way.”
The FF Accretive Token will de-risk digital assets through the traditional model through making carefully calculated capital allocations, and improving fund’s performance by investing in real-world projects, including BabelFinance, one of the world’s largest commercial crypto finance institutions, and leading crypto investment fund NGC Ventures. Two Prime is registered in Hong Kong and FF Accretive Token represents a new asset class. The token is anticipated to be listed in Q1 2020 on Liquid, a cryptocurrency exchange with more than US$50 billion in transactions, and will have a securitized offering in the U.S.
About Two Prime
Founded by Dr. Marc Fleury and Alexander S. Blum, Two Prime is a fintech firm that focuses on the financial application of crypto in the real economy and is rethinking the approach to crypto application. By bridging the best practices of traditional finance and crypto, Two Prime is applying traditional models and economic theory to the space and introducing a new asset class – the FF Token. By leveraging the fund formation dynamics of crypto, along with the credibility and stability of traditional finance, the FF Token model will create stable value and real use application, reignite the crypto markets, and bring real value to purchasers.
For more information on Two Prime, please visit http://twoprime.io and follow Two Prime on Medium, Twitter and Telegram.