In a note to supporters last week, the Token Fund, which has been running a blockchain asset portfolio for over a year said that they are winding down down the operation due to regulatory changes.
Closing down the fund could be just temporary. The team envisions that in the long-term, the fund will become a fully regulated organization that works with institutional investors and high-net-worth individuals.
In the current format, however, the operation of The Token Fund will be discontinued.
Until September 30, 2018, all active clients of the fund will need to undergo the procedure described below.
- According to the decision made, no deposits will be accepted by current clients nor from the new clients effective June 15th. The option of registering new accounts will also stop being available.
- Those existing clients who continue to send investments to previously generated BTC and ETH deposit addresses will not get any TKN tokens in exchange.
- The Token Fund team will continue to manage the portfolio and serve existing clients up until September 30th, 2018. During this time, clients will be able to withdraw from the fund according to the standard tokens redemption procedure. On client’s request, a withdrawal may be executed in parts and at any time (detailed guide).
- Up until September 30th, 2018 the fund’s portfolio will be managed in compliance with the usual strategy. In order to maintain maximum liquidity of the portfolio, there will be no participating in new ICOs.
The Token Fund team choose September 30th because there is currently a non-liquid asset in the portfolio, which is a right to Tezos tokens. As of now, this right cannot be realized, therefore it is reflected at the buying price
It is in Q3 2018 when the Tezos network is set to launch, and the tokens will finally become liquid. A number of clients will withdraw from the fund only after the Tezos tokens become liquid. Thus, while other clients’ withdrawals are being processed, the fact that those tokens are non-liquid does not affect the TKN token’s fair price and the number of payments.
Clients who have for some reason lost their access to their TKN tokens and aren’t able to redeem them during the liquidation period are recommended to contact the fund staff after September 30th via support@thetoken.io and hello@thetoken.io. Such inquiries will be reviewed individually.