ICO Analysis: Trecento

The alt-coin crash has left many of the most promising projects selling at a fraction of their ICO prices. The deals are tremendous, and the chance to make huge gains by buying low is right in front of the whole world. The problem is crypto is complex and filled with hoaxes, FUD, manipulation, and regulatory uncertainty. The average investor has no idea what to buy.

In order to find the projects with the most potential, you have to do your homework. You have to put in hours of research every day just to stay on top of everything. People with careers don’t have time for all that. What they need is for a trusted third party, like Trecento Blockchain Capital Investment Fund, to take their money and invest it for them.

Trecento is already recognized as one of the top asset management companies in Europe and France, in terms of organic revenue growth. They are creating an all-in-one blockchain investment solution.

“Trecento Blockchain Capital has been launched by a team of seasoned investment and technology professionals. Our objective is to capture the best business opportunities offered by the Blockchain technology through an 360-degree investment approach. We aim to provide both individuals and institutional investors with a straightforward and performing investment solution relying on our 4 investment funds. All within a safe and regulated environment”

Trecento will launch 4 thematic funds, covering the full investment cycle of blockchain companies. The objective is to provide investors with a 360-degree approach in order to generate returns while mitigating the risk exposure

  1. ICO Fund: Investment in innovative companies raising funds during the private sale (upstream).
  2. Crypto Trading Fund: Trading and Arbitration of cryptocurrencies & digital assets.
  3. Venture Capital Fund: Equity investment in startups developing disruptive Blockchain solutions.
  4. Fund of Funds: Investment in specialized funds active in cryptocurrency/digital assets space and Blockchain companies.

Fees

The standard fees in the asset management are the 2/20 rule. (2% of management fees and 20% of performance fees). By investing in the ICO, those fees would be waived up to the amount invested.

For funds that have a benchmark/hurdle rate, no performance fees will be owed if the performance of the fund over a period of 1 calendar year does not exceed the performance of the benchmark or hurdle rate. In their words: “For example, the Crypto Trading Fund with BTC Index benchmark over a period of 1 year, the Bitcoin Index performance is 15%. If the fund performance is lower than 15%, then performance fees are not applied. If the fund performance is 18%, then we apply performance fees ONLY on the 3% above and beyond the Bitcoin performance of 15%. It means that we only apply a performance fee of 20% * 3% = 0.6%.”

On top of the 4 thematic funds they offer, Trecento will provide the following key services:

  • Expertise-as-a-service: Issues research & analysis papers, in-depth newsletters, and equity research papers written by investment banks. The papers will be published and made available for purchase to token holders and funds investors.
  • Investment Allocation: Depending on their expertise, investors will use one of two allocation paths. (1)Manual allocation– investors choose their own allocation breakdown within a fund.  (2)Trecento allocation- The Trecento team will use their expertise, the funds’ risk/reward profile, and the best market opportunities to allocate.
  • AI-based “investment assistant tool: Helps investors enhance their portfolio allocation based on their profile (risk exposure, experience, investment duration etc.)
  • Trecento Blockchain Capital’s Investment tool: All investors can access a tailored Dashboard which allows investors to simply monitor their investments, make arbitrages, and interact with the community.
  • DAO/Voting: Community members will be rewarded for participating. They have the opportunity to submit an investment proposal, which will be voted on. If the team decides to allocate into their proposed project, everyone who voted yes will receive additional TOT tokens.

Token

TOT is an ERC-20 utility token. Holding TOT does not mean you are holding a piece of a fund that pays dividends. Instead, TOT has the following use cases:

  • Invest them (after converting into ETH) in one of their 4 investment funds.
  • Exchange them on trading platforms
  • Access special features
  • ICO participants receive free management and performance fees (equivalent and limited to the amount invested in their ICO)
  • Access to the TOT Reward System (DAO and Voting system)
  • Save lots on fund management and performance fees. Paying fees with TOT saves 50% the 1st year; 30% the 2nd year and 10% thereafter

Allocation:

  • 75% ICO participants
  • 15% Team/advisors
  • 5% Bounty
  • 5% Company Reserve

Use of Funds:

  • 45 % operating expense
  • 20% Marketing and Sales
  • 7% Cybersecurity
  • 10% Technology
  • 10% Legal, risk and audit
  • 5% Exchange listing

A certain percentage of TOT used to pay management and/or performance fees will be burnt.

NB: tokens allocated to the team are subject to a 2-year vesting period. Starting from the end of the ICO, the team will vest 25% of their allocated tokens every 6 month until the vesting calendar is fully completed.

Team

From Paris, 9 team members and 5 advisors are listed.

Alice Lhabouz – Founder. She has been the President at Trecento Asset Management (Paris) since 2011. Portfolio Manager at Meeschaert from 08-11. She is very recognized in Europe. Here she is on CNNMoney a couple weeks ago.

Romain Decorps – CIO and Partner. Since 2015, he has been a Senior Advisor to Google France for reputation and ecosystem programs. Lead positions at several Investment firms such as DC Advisory, Strategic Value Partners, and ACP Consulting.

Adrien Lhabouz – COO. He has been a Partner at Trecento since 2011. Founded a small p2p marketplace in 2015 called Comparelend

Micha Roon – Smart Contract Designer. Blockchain expert, has roles (mostly as an advisor) at SwissBorg, Sweet Bridge, BitJob, Soar, …Ethereum Developer experience.

Elie Boudara – Chief Blockchain Operator.  Was CTO for 3 years at Comparelend. CoFounded Iside 2006-2014

There are 5 advisors, including;

Germain Mathieu – Key Partner. Owner since 2011 of MPG Partners, an independent management consulting firm specialized in the financial services industry, with 45 employees and 2500 followers listed on LinkedIn.

Mickael Damour – Advisor for over 10 other crypto projects; MyCryptoBank, Xera, Sprinkle Coin, and Connecty.

Verdict

The average performance for crypto hedge funds in 2017 was +1,167%, compared to 8% for “traditional” funds. There are now more than 2,500 Blockchain/Digital Asset hedge funds in the world. The team at Trecento Asset Management have been around since 2011, and “have been recognized as one of the top companies in Europe and France, in terms of organic revenue growth.”

Risks

  • Lots and lots of competition. -1
  • Even though it’s for utility and doesn’t pay dividends, popular exchanges will probably see TOT token as too risky to list. -1
  • There’s a lot of risk involved with hedge fund cryptocurrencies. Trecento will have 3 specialized departments (Risk Management; Legal & Compliance; Security and Cybersecurity), but this is uncharted territory they are entering. -2
  • This will be on Ethereum blockchain. That’s risky. -1
  • The token price is 1 euro. -1

Growth Potential

  • This is a way for the little guy to get in on great deals. Most of the great new project’s ICOs are doing private sales now in which you must be an accredited investor, like Trecento, to get the rock bottom price. +3
  • The whitepaper is clearly made by professionals. The section on page 48 regarding recent regulatory actions really shows they have been doing their homework. The team seems fully capable +2
  • They budgeted 5% of the ICO to use for lobbying major trading platfoms to list TOT. +2
  • They are developing a DAO and TOT Reward System, which will allow the community to submit investment proposals and then vote on those proposals. If the team decides to invest in that proposal, everyone who voted “yes” receives bonus TOT tokens. +3
  • ICO participants receive free management and performance fees (equivalent and limited to the amount invested in their ICO). +2
  • “A certain percentage of TOT used to pay management and/or performance fees will be burnt.” +1

Disposition

The DAO voting system is a fascinating idea and adds to the cool and complex token economics of this project. Regulation uncertainty is real though. Big exchanges may avoid listing it, leaving TOT token stranded on BANCOR island (no offense to Bancor).

We arrive at a fierce 6/10.

Investment Details

Featured image courtesy of Shutterstock.

Author:
Joshua Larson is also known as the "Bullshit Man" for his ability to spot it a mile away. Avid ICO researcher and contributor. Former professional poker player/backer. Spent 10 years analyzing hand history, stats, and player data. Discovered blockchain in late 2016, and never looked back. He now uses his analysis skills to investigate ICOs full time. What a perfect match, because in today's crazy world of ICOs, information, passion, and diligence = dollar bills!