Proactiveinvestors United Kingdom KR1 PLC https://www.proactiveinvestors.co.uk Proactiveinvestors United Kingdom KR1 PLC RSS feed en Tue, 21 May 2019 09:25:42 +0100 http://blogs.law.harvard.edu/tech/rss Genera CMS action@proactiveinvestors.com (Proactiveinvestors) action@proactiveinvestors.com (Proactiveinvestors) <![CDATA[Media files - KR1 Plc 'thrilled' investment in Cosmos beginning to generate 'significant' yield ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/13367/kr1-plc--thrilled--investment-in-cosmos-beginning-to-generate--significant--yield-13367.html Wed, 15 May 2019 15:46:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/13367/kr1-plc--thrilled--investment-in-cosmos-beginning-to-generate--significant--yield-13367.html <![CDATA[News - KR1 aims to capitalise on blockchain revolution ]]> https://www.proactiveinvestors.co.uk/companies/news/220238/kr1-aims-to-capitalise-on-blockchain-revolution-220238.html • Supports blockchain-based technologies
• Traded on the NEX exchange What KR1 does

KR1 PLC (LON:KR1) is a digital asset manager the supports early stage companies developing blockchain-based technologies and services.

Founded in 2016, the company has invested in a number of projects that it believes will power the development of the decentralised blockchain infrastructure.

The company is currently listed on the NEX exchange in London.

Inflexion Points

• In May, the company said it was “significant revenues” from its investment in Cosmos, a major ‘proof-of-stake’ network in its portfolio

• In April KR1 netted US$205,851 from the sale of its stake in blockchain-based finance network OmiseGo, which it described as one of its “most successful investments to date”. The firm said it had sold its remaining OmiseGo tokens at an average price of US$2 each, a 650% increase on the original purchase price of US$0.27

• The company also sold 25,000 tokens of its holding in the Nash Exchange, a blockchain-based digital asset exchange, for an average price of US$2 each, a 103% premium on the purchase price of US$1 each

• At the start of 2019 the company invested US$250,000 into new ventures comprising a data collaboration framework and a decentralised exchange platform

Blue Sky

KR1’s chief executive George McDonaugh said in April that innovation in the blockchain space had continued throughout the recent year despite a “bear market” and that recent investments had generated “significant returns” and would allow the firm to “capitalise on the current positive shift in market sentiment”.

“In line with KR1's strategy to stay nimble and back the very best projects in the space, we aim to time our exits when the time is right in order to achieve considerable returns on our investments."

With shares trading at around 9.7p as of 14 May, KR1 carries a market cap of £13.2mln.

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Tue, 14 May 2019 15:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220238/kr1-aims-to-capitalise-on-blockchain-revolution-220238.html
<![CDATA[News - KR1 generating “significant revenues” from investment in ‘proof-of-stake’ Cosmos Network ]]> https://www.proactiveinvestors.co.uk/companies/news/220197/kr1-generating-significant-revenues-from-investment-in-proof-of-stake-cosmos-network-220197.html KR1 PLC (LON:KR1) has said it is generating “significant revenues” from its investment in Cosmos, a major ‘proof-of-stake’ network in its portfolio.

Proof-of-stake networks are blockchain systems which, unlike proof-of-work networks like the Bitcoin blockchain, do not require massive amounts of computing power to maintain them.

READ: KR1 nets over US$200k from sale of OmiseGo holdings in one of its “most successful investments to date”

Instead, participants ‘stake’ their tokens as a security deposit, from which they receive a fee or yield for committing their tokens to help validate transactions. If the network is compromised, the staked tokens can be penalised by having their value reduced in a process known as ‘slashing’.

KR1, a digital asset investment firm, said that it had currently generated around 15,463 ATOM tokens - used on the Cosmos Network - for an average price of US$4.76, giving a total of US$73,671.

Going forward, the company said it expected to generate around 100,000 ATOM tokens each year, worth around US$476,000 at the previous average price, which would be used to provide additional working capital.

The company is estimating its annual net yield for its ATOM to be around 11.2%, although depending on conditions on the Cosmos Network this could rise to as much as 40%.

KR1 added that there was “similar revenue potential” from other proof-of-stake networks it is currently invested in, including Polkadot, Dfinity, RChain, Enigma and FOAM.

George McDonaugh, KR1’s chief executive, said that the company was currently the only publicly traded investment from generating revenues by staking tokens, adding that he expected its other major investments, particularly Polkadot and Dfinity “to follow suit” in terms of “significant yields”.

He added that Cosmos was becoming “a major platform for developers” and attracting high-end sector companies including Binance, the world’s largest crypto exchange, to build decentralised exchanges on the network.

In early trade on Tuesday, KR1 shares on the NEX exchange were chaging hands at 9.5p each.

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Tue, 14 May 2019 08:24:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/220197/kr1-generating-significant-revenues-from-investment-in-proof-of-stake-cosmos-network-220197.html
<![CDATA[News - Why the next Bitcoin rally could be closer than you think ]]> https://www.proactiveinvestors.co.uk/companies/news/219802/why-the-next-bitcoin-rally-could-be-closer-than-you-think-219802.html While Bitcoin is currently well off the massive highs seen at the end of 2017, the next rally in the price of the original cryptocurrency could be closer than you think.

This is due to a process called Bitcoin halving, where the reward for validating transactions on the Bitcoin blockchain (also known as ‘mining’), is reduced by 50%.

A halving happens once every four years, with the next one scheduled for May 2020 when the reward for mining a single ‘block’ falls from 12.5 Bitcoins to 6.25.

When a halving occurs, as it has already on two occasions since Bitcoin was created in 2009, the price tends to experience a jump in value about a year or so after.

This is because after a halving Bitcoin becomes more scarce as it now takes twice as long to produce the same amount, restricting the supply and pushing up prices provided demand stays the same.

For example, Bitcoin’s second halving on 9 July 2016, which lowered the reward to 12.5 Bitcoins from 25, saw the price rise around 289% to US$2,580 12 months later.

Source: https://www.coindesk.com/litecoins-halving-is-months-away-but-traders-may-already-be-pricing-it-in

“So far, the halving has been a major catalyst in starting the [Bitcoin] bull run” says George McDonaugh, chief executive at digital asset investment firm KR1 PLC (LON:KR1), although the halving is, aptly, only half the story when it comes to Bitcoin rallies.

Media frenzy

While the halving is often a signal for the ‘smart money’ and sector-focused investors to put cash into Bitcoin, the main driver of previous highs is media hype.

“What really begins to move Bitcoin is the media…[when the price jumps] the media goes crazy and everyone starts buying”. The halving is the signal for those who are technically involved in Bitcoin, the rest of the market comes in on the media movement,” McDonaugh says.

However, this renewed mainstream interest means Bitcoin can quickly reach overbought levels as more and more buyers are drawn in, resulting in a sharp downward correction similar to that seen at the end of 2017 when Bitcoin plunged from an all-time high of around US$17,000 in December to less than US$8,000 two months later.

Basically, once the mainstream retail investors come knocking, it may be time to start considering a sale.

Even higher?

While Bitcoin is currently nowhere near the highs of late-2017, the cryptocurrency is still retaining a value well above its price at the time of the last halving, and if the model continues to hold true we could be seeing yet another bull run on the cards next year.

McDonaugh says that following its dramatic rise and fall last year, the mainstream market has “forgotten about Bitcoin” but that frenzied interest will return when Bitcoin reaches the next milestone, most likely when it returns to US$10,000. He estimates a renewed buying frenzy could push the currency as high as US$60,000 in the longer term.

“[The mainstream] will continue to forget about it until the media starts covering the price again, which will bring all the retail buyers back.”

He also predicts that there could be as many as five bull runs left that will mirror the dramatic movements seen in 2017.

“With Bitcoin and blockchain technology, everything is multiplied. The cycles are quicker, the fluctuations are higher, the bear markets are lower, everything is heightened…it’s a perfect storm in terms of speculation.”

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Tue, 07 May 2019 13:34:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219802/why-the-next-bitcoin-rally-could-be-closer-than-you-think-219802.html
<![CDATA[Media files - KR1 PLC looking to powerful new tech like 'interchain protocol' for opportunities ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/13116/kr1-plc-looking-to-powerful-new-tech-like--interchain-protocol--for-opportunities-13116.html Fri, 26 Apr 2019 12:11:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/13116/kr1-plc-looking-to-powerful-new-tech-like--interchain-protocol--for-opportunities-13116.html <![CDATA[News - KR1 nets over US$200k from sale of OmiseGo holdings in one of its “most successful investments to date” ]]> https://www.proactiveinvestors.co.uk/companies/news/219078/kr1-nets-over-us200k-from-sale-of-omisego-holdings-in-one-of-its-most-successful-investments-to-date-219078.html KR1 PLC (LON:KR1) has netted US$205,851 from the sale of its stake in blockchain-based finance network OmiseGo (OMG), which it described as one of its “most successful investments to date”.

The digital asset investment firm said it had sold its remaining OMG tokens at an average price of US$2 each, a 650% increase on the original purchase price of US$0.27.

READ: KR1 injects total of US$250,000 into data framework and exchange ventures

KR1 added that it had also sold 25,000 tokens of its holding in the Nash Exchange, a blockchain-based digital asset exchange, for an average price of US$2 each, a 103% premium on the purchase price of US$1 each.

The company still has 25,000 tokens in Nash and was expecting a successful exchange launch for the project toward the end of the year.

KR1 said the funds from the sales would be used to invest into new projects.

George McDonaugh, chief executive of KR1, said innovation in the blockchain space had continued throughout the recent year despite a “bear market” and that the OMG and Nash investments had generated “significant returns” and would allow the firm to “capitalise on the current positive shift in market sentiment”.

“In line with KR1's strategy to stay nimble and back the very best projects in the space, we aim to time our exits when the time is right in order to achieve considerable returns on our investments."

KR1’s shares, which are traded on the NEX exchange, were at 7p on Thursday morning.

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Thu, 25 Apr 2019 08:12:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/219078/kr1-nets-over-us200k-from-sale-of-omisego-holdings-in-one-of-its-most-successful-investments-to-date-219078.html
<![CDATA[News - After Bitcoin’s bounce, here’s how you could take a punt on crypto with your ISA ]]> https://www.proactiveinvestors.co.uk/companies/news/217979/after-bitcoins-bounce-heres-how-you-could-take-a-punt-on-crypto-with-your-isa-217979.html Cryptocurrency Bitcoin was back in the news on Wednesday after it surpassed the US$5,000 value mark for the first time in five months.

While the digital currency’s breakneck rise in value (it was worth around US$4,170 on Tuesday morning) has some in the market believing the glory days of crypto have returned, we’ve seen this before, along with the consequences when the downturn occurs.

READ: Coinsilium establishes new entity in Gibraltar as part of relocation plan

While US$5,000 may seem like a large sum for an asset that few understand, it is still a far cry from the levels Bitcoin reached at the end of 2017 when it spiked to around US$17,000 before collapsing in 2018 to less than US$3,500.

The ‘landmark’ US$5,000 figure hasn’t lasted too long either, as by Thursday lunchtime, Bitcoin had dipped back to around US$4,950.

The massive swings in the value of Bitcoin would make most investors baulk at the idea of exposing themselves to cryptocurrencies and similar technologies, given the negative publicity surrounding them and the still-murky picture around both their technology and legal status.

However, there could yet be a place for them in portfolios.

George McDonaugh, chief executive of crypto and blockchain investment firm KR1 PLC (LON:KR1), has said that following Bitcoin’s dramatic rise and fall, the sector could be closing in on the bottom stages of the “bust” part of its cycle prior to renewed “fervour”.

He cites ‘chartists’ who have predicted a four-year sequence that begins with a year of gains followed by two years of declining prices, after which interest returns for the final year.

“Everyone is hunting down signs of a positive change in sentiment and there's money sitting on the side lines waiting for the starting gun.”

READ: KR1 sets up subsidiary in Gibraltar which it believes should provide “new and potentially significant revenue stream”

For investors to exploit this coming upswing, publicly-listed companies that specialise in blockchain and/or crypto assets would allow the investor to park their interest in a stocks and shares ISA, allowing a useful inroad into the sector without needing detailed knowledge of its ups and downs.

However, McDonaugh cautioned against “putting all your eggs in one basket” when investing in the area as trends in the price of assets may not always follow the same trajectory.

“It’s a mixture of where the project is in its life cycle, its success so far and how popular it is within the ecosystem.

“Currently the general direction of travel of all crypto assets is to follow the price of Bitcoin, but while the trend may be the same, the price movements of different assets can differ wildly. If Bitcoin doubled in price, there are some assets that may multiply by fifty times, the KR1 CEO said.

He added that it is “essential” to find a company with a portfolio that includes not only ‘base’ crypto assets like Bitcoin but also “bleeding edge” next generation tech that will be driven higher by a surge of investor interest.

“Projects like these often start behind closed doors with invited investors only. The kernel of the project is put together, the team, roadmap and funding plans all put in place. Often by the time the super early adopters have heard of it, the pre-seed round is long since over and most likely so is the seed/private round. One way to get in at the earliest stage is to invest in a company that does this.”

While these crypto asset investment firms may not be “easy to find”, McDonaugh says, they are “closer and more accessible than you think”.

Aside from KR1, another London-listed firm with interests in the crypto and blockchain space include blockchain investment and advisory firm Coinsilium Group Limited (LON:COIN).

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Thu, 04 Apr 2019 14:28:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/217979/after-bitcoins-bounce-heres-how-you-could-take-a-punt-on-crypto-with-your-isa-217979.html
<![CDATA[News - KR1 injects total of US$250,000 into data framework and exchange ventures ]]> https://www.proactiveinvestors.co.uk/companies/news/213039/kr1-injects-total-of-us250000-into-data-framework-and-exchange-ventures-213039.html Blockchain and cryptocurrency investor KR1 Plc (LON:KR1) has invested a total of US$250,000 into new ventures comprising a data collaboration framework and a decentralised exchange platform.

The first investment of US$200,000 was into the Rlay project and was provided in tranches over the last year. In return, KR1 said it would receive a yet-to-be-determined amount of discounted tokens which will power the platform at a “significant discount” to the lowest price paid by any investor in the event on an initial coin offering (ICO).

READ: KR1 sets up subsidiary in Gibraltar which it believes should provide “new and potentially significant revenue stream”

Rlay is a network designed to solve an issue with blockchain regarding the accuracy of external data being put into the system. The project aims to use a mixture of token incentives and computer software to create verifiably correct data sets that can then be used with greater confidence than data relying solely on trust.

The remaining US$50,000 was invested in the Nash Exchange, a decentralised platform that uses an off-chain matching engine and on-chain settlement layer to allow high volume and complex transactions at high speed while licensing out fiat currency on and off ramps to businesses.

George McDonaugh, chief executive of KR1, said Rlay represented “a possible paradigm shift” in the way information is verified and understood, while in the blockchain space specifically, it could provide the ability for smart contracts to verify information and solve “a very significant missing piece of the puzzle”.

For Nash, McDonaugh said the trade-off between the slowness of decentralised exchanges and the untrustworthiness of centralised exchanges had been “a major barrier to adoption”, but Nash was “breaking new ground in solving these issues”.

READ: KR1 raises £785,000 via share placing to boost its investments in blockchain token community

KR1 will likely be dipping into its replenished funds for the new set of investments, having raised £785,000 via a share placing in December to stimulate its investments in the blockchain community.

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Tue, 22 Jan 2019 08:18:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/213039/kr1-injects-total-of-us250000-into-data-framework-and-exchange-ventures-213039.html
<![CDATA[News - KR1 sets up subsidiary in Gibraltar which it believes should provide “new and potentially significant revenue stream” ]]> https://www.proactiveinvestors.co.uk/companies/news/212499/kr1-sets-up-subsidiary-in-gibraltar-which-it-believes-should-provide-new-and-potentially-significant-revenue-stream-212499.html KR1 PLC (LON:KR1) has set up a subsidiary in Gibraltar - KRX Ltd - through which it intends to sponsor credible, token-based projects to list onto the Gibraltar Blockchain Exchange (GBX), a move which it believes will “provide a new and potentially significant revenue stream for the company”.

The NEX-listed firm noted that the GBX, a subsidiary of the Gibraltar Stock Exchange Group, aims to be one of the world’s leading crypto asset having been granted a full licence as a provider of Distributed Ledger Technology from the Gibraltar Financial Services Commission.

READ: KR1 raises £785,000 via share placing to boost its investments in blockchain token community

The company said that, as one of a select few sponsors on the GBX, KR1 can negotiate fees for providing its service and said it has seen significant interest already.

It added: “The Directors are very excited to grow KR1's presence across Europe and we look forward to making the most of the warm welcome Gibraltar has given the Company and KRX so far.”

“With KR1's full network on which to draw, the Directors believe that KRX is perfectly positioned to help new projects setting up businesses in Gibraltar and to seize the opportunities that arise with the GBX Sponsorship.”

The group noted that the Gibraltar Stock Exchange is the first stock exchange to own a regulated blockchain exchange, and pointed out that the UK overseas territory has rapidly become a popular jurisdiction for new and innovative blockchain projects to set up and do business.

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Mon, 14 Jan 2019 12:06:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/212499/kr1-sets-up-subsidiary-in-gibraltar-which-it-believes-should-provide-new-and-potentially-significant-revenue-stream-212499.html
<![CDATA[Media files - KR1 boost investments in blockchain token community ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11677/kr1-boost-investments-in-blockchain-token-community-11677.html Thu, 20 Dec 2018 08:57:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11677/kr1-boost-investments-in-blockchain-token-community-11677.html <![CDATA[News - KR1 raises £785,000 via share placing to boost its investments in blockchain token community ]]> https://www.proactiveinvestors.co.uk/companies/news/211473/kr1-raises-785000-via-share-placing-to-boost-its-investments-in-blockchain-token-community-211473.html KR1 Plc (LON:KR1) has raised a total of £785,000, before expenses, through a share placing to allow it to boost its investments in the blockchain token community.

The blockchain and cryptocurrency investor said the placing of 15,700,000 ordinary shares was undertaken at a price of 5p per share by Peterhouse Capital.

READ: KR1’s stake in digital currency wallet Vo1t now worth US$1.4mln

The group added that the funds raised will be used “to continue to make investments in the blockchain token community and to drive forward the company’s strategy.”

KR1 also said it has issued a total of 800,000 ordinary shares at a price of 5p per share to two advisers to the company in lieu of services rendered.

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Wed, 19 Dec 2018 08:49:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/211473/kr1-raises-785000-via-share-placing-to-boost-its-investments-in-blockchain-token-community-211473.html
<![CDATA[News - KR1 nets tidy profit from investments as portfolio firms increase in value amid blockchain revolution ]]> https://www.proactiveinvestors.co.uk/companies/news/209784/kr1-nets-tidy-profit-from-investments-as-portfolio-firms-increase-in-value-amid-blockchain-revolution-209784.html KR1 Plc (NEX:KR1) has netted some tidy sums from some of its investment exits in recent months, while the ones it keeps on the book are being boosted as cash continues to be poured in by firms looking to be at the forefront of the blockchain revolution.

In October, the investment firm sold out two of its investments in companies Golem and Qtum for healthy sums.

First investment exits yield strong returns

The last of KR1’s holding in Golem (GNT) was sold for 22 cents per token, raising US$134,000, while its holding of Qtum tokens was sold at US$6.24 each, generating US$126,000.

That is more than twenty times the cost of its original investment in Qtum tokens, while the GNT tokens were sold for about seventeen times their purchase price.

Both projects had reached very mature and self-sufficient stages, which fulfils KR1’s key business model to provide capital and support to early-stage projects.

George McDonaugh, KR1’s chief executive, said it was the first time that KR1 has exited from projects in their entirety.

Both projects employ large teams, have thriving communities, and early versions of their protocols are deployed and working well, but competition from TrueBit, Dfinity or other platforms is increasing, he added.

Vo1t stake energised

One of KR1’s investments still on the books, Vo1t, has also surged in value following a fundraising from other investors in November.

Vol1t netted US$2mln from the funding round, which saw a highly-regarded family office and “strategic individuals” in the finance industry pour in more cash, valuing the firm at US$17mln.

This all worked out nicely for KR1, which as a result of the latest financing saw its 7.94% stake in Vo1t rise in value to US$1.4mln.

Just over a year ago, KR1 paid around US$260,000 for a 5% stake in Vo1t.

Wide portfolio and positive outlook

The three aforementioned investments aren’t the only ones KR1 has its eye on, with its portfolio covering around 31 different companies and cryptocurrencies including Ethereum.

The company is also confident in the outlook for the space despite a recent decline in the price of the original cryptocurrency Bitcoin.

In September, McDonaugh said that the market would “undoubtedly consolidate at a ‘higher low’ in the near future as we will enter a new part of the adoption cycle”, adding that the difference at this point in time was the “major moves into the space by some of the world’s largest financial institutions and because crypto assets are influenced by events and narratives, we see no reason why the market won’t catch up again as these institutions will allow greater access and spark a new wave of adoption”.

KR1 currently carries a market cap of around £6.1mln.

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Thu, 22 Nov 2018 09:00:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/209784/kr1-nets-tidy-profit-from-investments-as-portfolio-firms-increase-in-value-amid-blockchain-revolution-209784.html
<![CDATA[Media files - KR1's George McDonaugh on investee company Vo1t Ltd after well-supported raise ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/11103/kr1-s-george-mcdonaugh-on-investee-company-vo1t-ltd-after-well-supported-raise-11103.html Mon, 05 Nov 2018 15:16:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/11103/kr1-s-george-mcdonaugh-on-investee-company-vo1t-ltd-after-well-supported-raise-11103.html <![CDATA[News - KR1’s stake in digital currency wallet Vo1t now worth US$1.4mln ]]> https://www.proactiveinvestors.co.uk/companies/news/208522/kr1s-stake-in-digital-currency-wallet-vo1t-now-worth-us14mln-208522.html Blockchain and cryptocurrency investor KR1 PLC’s (NEX:KR1) stake in Vo1t has surged after the digital currency wallet raised US$2mln from investors.

The fundraise, which saw a highly-regarded family office and “strategic individuals” in the finance industry pour in some more cash, valued Vo1t at US$17mln post-money.

READ: KR1 checks out of Golem and Qtum with healthy profit

Following the latest round of financing and the conversion of loan notes, KR1’s 7.94% stake in Vo1t is now worth US$1.4mln.

NEX-listed KR1 paid US$260,000 (£200,000) for a 5% stake in Vo1t just over a year ago.

“Since its inception we have seen Vo1t gain great traction, continuing to onboard new clients and consistently generating revenue every month,” said KR1 chief executive George McDonaugh.

“This year and with the funds raised, they have extended their service offering significantly to exchanges and leading financial institutions exploring digital assets and the blockchain space.

He added: “The company’s assets in custody increased significantly from our seed round participation earlier in 2017.”

KR1 shares were changing hand for 6.25p in early afternoon trade on Monday.

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Mon, 05 Nov 2018 12:53:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/208522/kr1s-stake-in-digital-currency-wallet-vo1t-now-worth-us14mln-208522.html
<![CDATA[Media files - KR1 books healthy profit as it sells out of two of its investments ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/10710/kr1-books-healthy-profit-as-it-sells-out-of-two-of-its-investments-10710.html Wed, 03 Oct 2018 08:20:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/10710/kr1-books-healthy-profit-as-it-sells-out-of-two-of-its-investments-10710.html <![CDATA[News - KR1 checks out of Golem and Qtum with healthy profit ]]> https://www.proactiveinvestors.co.uk/companies/news/206165/kr1-checks-out-of-golem-and-qtum-with-healthy-profit-206165.html Blockchain and cryptocurrency investor KR1 Plc (NEX:KR1) has sold out of two of its investments at healthy prices.

The last of KR1’s holding in Golem (GNT) was sold for 22c per token, raising US$134,000. KR1’s holding of Qtum tokens, meanwhile, was sold at US$6.24 each, generating US$126,000.

READ: KR1 confident on future prospects despite Bitcoin downturn

That is more than 20 times the cost of its original investment in Qtum tokens, while the GNT tokens were sold for about seventeen times their purchase price.

Both projects had reached very mature and self-sufficient stages, which fulfils KR1’s key business model to provide capital and support to early-stage projects, said the statement.

George McDonaugh, KR1’s chief executive, added it was the first time that KR1 has exited from projects in their entirety.

Both projects employ large teams, have thriving communities, and early versions of their protocols are deployed and working well, but competition from TrueBit, Dfinity or other platforms is increasing, he said.

“It has been an incredibly exciting and hugely successful journey that KR1 shared with the Golem and Qtum projects over the last two years.”

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Tue, 02 Oct 2018 08:03:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/206165/kr1-checks-out-of-golem-and-qtum-with-healthy-profit-206165.html
<![CDATA[News - KR1 invests US$400,000 in disruptive blockchain technologies ]]> https://www.proactiveinvestors.co.uk/companies/news/204654/KR1-invests-US-400-000-in-disruptive-blockchain-technologies--204654.html KR1 Plc (NEX:KR1) has splashed out US$400,000 (£307,500) on three investments in the blockchain sector in businesses looking to disrupt the radio beacon, internet and insurance markets.

This follows a range of investments made by the firm in July in areas such as supercomputers and Internet of Things communications.

READ: KR1 goes on investment spree in the blockchain sector

The NEX-listed blockchain investment group on Tuesday said it had invested US$200,000 for 3,625,641.41 FOAM tokens, part of Foamspace’s FOAM project.

FOAM is a project that powers a network of radio beacons that can offer secure location services independent of other sources such as GPS. This investment comes on top of US$100,000 of seed funding committed by KR1 To the FOAM project in September 2017.

KR1 also said it had invested US$100,000 into the Althea Mesh project, run by Hawk Networks Inc., for 303,030 Althea Mesh tokens.

Althea Mesh is a system of software that allows communities to set up decentralised internet service providers. Users purchase internet service and equipment and owners are automatically compensated for their contributions to the network.

In addition, the company has also committed US$100,000 for 1,344,291.43 Etherisc tokens to fund projects investigating how blockchain can be applied to the insurance market with the aim of creating communities to collectively build insurance products.

“Even in a market that has cooled significantly in recent months, we continue to see new teams forming, projects getting off the ground and the rate of innovation gaining yet more momentum,” George McDonaugh, KR1’s CEO said in a statement.

“Generally, we’re still very excited for what’s to come as blockchain technology continues to branch out and disrupt many business verticals and other areas of our society.”

KR1 shares were unchanged at 8.75p in mid-afternoon trade.

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Tue, 11 Sep 2018 14:59:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/204654/KR1-invests-US-400-000-in-disruptive-blockchain-technologies--204654.html
<![CDATA[News - KR1 confident of path through token market's shifting sands ]]> https://www.proactiveinvestors.co.uk/companies/news/200388/kr1-confident-of-path-through-token-market-s-shifting-sands-200388.html KR1 PLC (LON:KR1) is steadily building up its portfolio of tokens and share stakes in early stage blockchain and smart contracts businesses.

Four recent additions have increased the number of investments in the portfolio to 33 and brought in a project similar to the Ethereum platform (Dfinity), a drone network (Flying Carpet), a payment channel (Connext) and blockchain development agency Blocksmith.

WATCH: KR1 Plc adds to portfolio with four new investments in blockchain space

George McDonaugh, chief executive, is looking for more but even he, a six-year veteran in the space, says sifting the winners among the current avalanche of token offerings is not easy.

“Huge misconceptions surround token sales," he says.

“What they are, why, how and who should be doing them.”

It’s almost inevitable, he says, that when billions are being raised, everyone is going to try to work out if they can do it as well and that’s what is happening currently.

READ: KR1 goes on investment spree in the blockchain sector

Tokens or crypto assets are not crypto-currencies, which can be used as a medium of exchange, but assets that sit in the middle of a smart contract or blockchain business.

To interact with the smart contract, you need tokens, which are limited, and if the business takes off, the token becomes valuable.

The snag is there are only a very small sliver of projects that will develop into a fully decentralised smart contract business with a tokenised network.

“So if you start from the fact 99% of what’s out there is not worth looking at and look deeper into the 1% that remain, you can find projects that might be uncatchable if the token network effect gets moving

“And from an investment perspective that’s very exciting.”

Tokens not currencies

Ethereum is driving the wave of token sales as new blockchain companies can ‘layer’ on the platform.

And by dint of the fact, it has been around almost from the start of the crypto phenomenon, KR1 is able to get in at the ground floor or seed stage of the most promising of these blockchain start-ups, says McDonaugh.

"We have a share and that tracks the value of a basket of tokens and so is a way of investors gaining access to the crypto space through a publicly-listed investment."

Volatile movements

Even then, it is a volatile business.

KR1’s net assets jumped to £13.6mln from £441,000 in its last audited year.  

Almost £11mln that was down to an uplift in the value of its investments and McDonaugh says it has stopped tracking NAV due to the movements.

“The ones we have selected have done well so far,” he says.

KR1 will shuffle the portfolio and book gains to continue to refill the investment fund and not just buy and hold for a set time.

“We need funds to keep allocating to good projects as the space is so big and moves very quickly.”

NEX-listed KR1 is valued at £13.4mln at 11.5p.

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Mon, 09 Jul 2018 13:19:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/200388/kr1-confident-of-path-through-token-market-s-shifting-sands-200388.html
<![CDATA[Media files - KR1 Plc adds to portfolio with four new investments in blockchain space ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/9782/kr1-plc-adds-to-portfolio-with-four-new-investments-in-blockchain-space-9782.html Thu, 05 Jul 2018 13:12:00 +0100 https://www.proactiveinvestors.co.uk/companies/stocktube/9782/kr1-plc-adds-to-portfolio-with-four-new-investments-in-blockchain-space-9782.html <![CDATA[News - KR1 goes on investment spree in the blockchain sector ]]> https://www.proactiveinvestors.co.uk/companies/news/200204/kr1-goes-on-investment-spree-in-the-blockchain-sector-200204.html KR1 PLC (NEX:KR1) has splashed out on a litany of investments in the blockchain sector, with investee companies ranging from supercomputers to Internet of Things (IoT) communications.

The NEX-listed blockchain investment group said it had invested £593,000 for 191,681.85 Dfinity Network Tokens, part of the Dfinity Project. Dfinity is a project designed to be a blockchain supercomputer as part of enabling public decentralised networks to host a virtual computer of potentially unlimited capacity, whilst providing a secure, performant and flexible consensus mechanism.

WATCH: KR1 Plc adds to portfolio with four new investments in blockchain space

KR1 added that the Dfinity concept was similar to the blockchain-based Ethereum platform, but promised “vastly improved performance and, ultimately, unlimited capacity”.

The group also invested US$100,000 in the Flying Carpet Project, managed by Air Network Ltd. Air Network is an Ethereum based communication protocol for IoT devices such as drones and automated cars that allows video content created of the intended flight or route of the device that is then used to validate its actions through a tokenised ecosystem.

KR1 said the Flying Carpet Project will “bring together hardware owners who will connect their IoT devices to the Air Network, developers who will build software allowing these devices to perform tasks and lastly businesses who will use the Air Network application to access different services that require autonomous drones”.

Another US$50,000 was invested by KR1 in Connext Inc through a SAFE agreement (Simple Agreement for Future Equity) for a minimum equity stake of 1.25%.

Connext enables Ethereum projects to implement low cost, near-instant transactions for their users. Participants that set up a Connext Hub will be able to open a payment channel (state channel) with the Hub and transact with any other user who is also connected to the Hub. This will be possible without paying a network fee or needing to wait for block confirmation time. The firm said the ultimate goal was for Connext to become an open, developer-friendly, fully community-governed, network for handling two-party transactions of any sort.

Rounding off the list was a £50,000 investment for a 10% stake in Blocksmith Ltd, a product of digital product studio Whitesmith, which aims to be a blockchain system development agency. KR1 added that it had also been granted an option period of 12 months to acquire an additional 5% of Blocksmith for £100,000.

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Thu, 05 Jul 2018 12:07:00 +0100 https://www.proactiveinvestors.co.uk/companies/news/200204/kr1-goes-on-investment-spree-in-the-blockchain-sector-200204.html
<![CDATA[News - KR1 plots course to navigate the crypto-world ]]> https://www.proactiveinvestors.co.uk/companies/news/191637/kr1-plots-course-to-navigate-the-crypto-world-191637.html The first list of crypto-currency billionaires has just been published by US magazine Forbes.

Top of the heap was Ripple founder Chris Larsen, whose crypto fortune weighed in at a meaty US$20bn.

Such is the volatility of the sector, however, that barely a month later Larsen had seen 65% of that value nominally wiped out.

Forbes itself said that given this opacity and hyper-volatility, it could only present the numbers in ranges.

If it’s that tough for the professionals to get a handle on what’s going on, how difficult must it be for the ordinary individual to get involved?

You could just follow the herd, the philosophy adopted seemingly by many who have recently started to invest.

Alternatively, you can find someone who might understand what is going on and back them instead.

A crypto veteran

That is where KR1 PLC (LON:KR1) comes into the picture, says George McDonaugh, chief executive of the NEX-listed investment firm.

He set up the business in 2016 with Keld Van Schreven, but has been involved in crypto world since 2011, which makes him almost a veteran, given the speed at which it is developing.

KR1, a name change recently from Kryptonite 1, invests in crypto assets or tokens.

These are not crypto-currencies, which can be used as a medium of exchange, but assets that sit in the middle of a smart contract or blockchain business.

To interact with the smart contract, you need tokens, which are limited, and if the business takes off, the token becomes valuable.

WATCH: KR1 PLC giving investors access to the 'gems' in the ICO token economy Ethereum has kick-started the market

Bitcoin was the original and still best-known blockchain-based investment, but it is the launch of Ethereum that has really kick-started the market.

McDonaugh likens Bitcoin to the original Nokia phone, which did a good job in making phone calls, texts and basic photos.

Ethereum, though, is the Apple iPhone with a million potential applications that are now only just starting to be explored.

As new blockchain companies can ‘layer’ on the Ethereum platform, a ‘fascinating range of businesses that have never been able to exist before,’ have been enabled, he adds.

And by dint of the fact it has been around almost from the start of the crypto phenomenon, KR1 is able to get in at the ground floor or seed stage of many of the most promising of these blockchain start-ups, says McDonaugh.

KR1 does still deal in old money. Two fundings of £750,000 each time were carried out over the past year.

The money has been used for token investments, with US100,000 to US$1mln, the normal range, though KR1’s sweet spot is a sum of around US$250,000.

World of opportunities

Currently, KR1 has 26 blockchain investments ranging from token enabling, payment systems, insurance right through to a digital currency custodian.

In a world where the value of an asset can rise ten-fold in a week, traditional yardsticks such as net asset value (NAV) might seem irrelevant.

For what it’s worth, though, in the half year to June NAV rose to £4.43mln (from £99,000 a year earlier and £441,000 at the end of the year) with £4.1mln of that value attributed to its digital currency assets.

That NAV-based on an estimate and will likely have changed materially again over the past six months, given the feverish state of the market.

Credibility is king

McDonaugh is a firm believer in the future of blockchain technology and KR1 also has a supply of bitcoins and Ethereum, which is a requirement to pay its way in the digital society now developing.

The biggest asset in the space currently though is credibility, McDonaugh says, and KR1 is keen to back projects that will also open doors in the future.

This means sometimes it sees projects a year before they arrive in the mainstream.

Tips for crypto investors

McDonaugh argues the best way for ordinary individuals to become involved in the sector is to invest in KR1 as “We do it all for you”.

He does, however, have some tips for people keen to join the crypto club off their own bat.

Top of the list is to establish a twitter feed of 50 or so of the developers and coders at the core of the movement and then sit and listen intently.

McDonaugh has done this already at KR1, though being in the business for seven years means he has a big head start on the newcomers.

Intelligence such as this is crucial to sort out the wheat from the chaff among the deluge of token opportunities available at present.

A select band of trusted technical consultants is used to evaluate projects presented to the group.

Even with that help, McDonaugh admits it’s a difficult market to steer through.

“The tech is almost impenetrable unless you have a doctorate,” he says, but now the first of the businesses are starting to be switched on he believes big change is coming.

“If the infrastructure can handle the volume of traffic, the stuff we can do is going to be incredible.”

At 13p, KR1 is worth £15mln.

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Wed, 14 Feb 2018 12:30:00 +0000 https://www.proactiveinvestors.co.uk/companies/news/191637/kr1-plots-course-to-navigate-the-crypto-world-191637.html
<![CDATA[Media files - KR1 Plc giving investors access to the 'gems' in the ICO token economy ]]> https://www.proactiveinvestors.co.uk/companies/stocktube/8719/kr1-plc-giving-investors-access-to-the-gems-in-the-ico-token-economy-8719.html Wed, 07 Feb 2018 16:01:00 +0000 https://www.proactiveinvestors.co.uk/companies/stocktube/8719/kr1-plc-giving-investors-access-to-the-gems-in-the-ico-token-economy-8719.html <![CDATA[RNS press release - Kryptonite 1 plc - Investment ]]> https://www.proactiveinvestors.co.uk/companies/rns/16061/PRNRNS_201610070748PR_NEWS_UKDISCLO_0059/ Fri, 07 Oct 2016 13:48:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/16061/PRNRNS_201610070748PR_NEWS_UKDISCLO_0059/ <![CDATA[RNS press release - Kryptonite 1 plc - Interim Report for the Half Year Ended 30 June 2016 ]]> https://www.proactiveinvestors.co.uk/companies/rns/16061/PRNRNS_201609290200PR_NEWS_UKDISCLO_0002/ Thu, 29 Sep 2016 08:00:00 +0100 https://www.proactiveinvestors.co.uk/companies/rns/16061/PRNRNS_201609290200PR_NEWS_UKDISCLO_0002/