Iron Key only invests in digital assets that have a provably robust network security architecture. We build our portfolio around battle-tested technologies that have never been compromised. Many cryptographers and computer engineers believe that various lower market cap PoW cryptos are fundamentally insecure due to 51% attacks, and also that Proof-of Stake has not yet proven itself as secure. We also use the industry best practices and frameworks in order to secure the fund’s digital assets. Whenever possible, the fund’s capital investments are held with a licensed institutional custodian.
Iron Key believes that the best approach to investing in digital assets is to own the incumbents and the innovators. First mover advantage matters in crypto, given that values are largely accrued due to network effects. However, technology in general, and open source software specifically, shows us that the pace of innovation is ever increasing. The average life expectancy of a company is now less than 10 years, down from 61 years in 1958. With capital preservation and potential upside dually considered, IKC seeks to create a sense of safety and security through investing in provably scarce and established digital assets while also exposing our investors to the most innovative projects.
Iron Key only invests in digital assets that meet our framework of sufficient decentralization. Decentralization is a core, and often controversial, component of digital assets because it ensures one party cannot control or disrupt the network. We believe that only once a network reaches a point of sufficient decentralization, will it be considered an investable asset.
We select the most promising projects that are able to create a viable governance framework that benefits both developers and users. This allows developers to have a clear path on how they can quickly and efficiently improve and upgrade the software, and also how they incentivize the community to participate, and even contribute to decisions. Open source software is ever evolving, which is why a successful governance framework is crucial to the success of any digital asset.
- Value Accrual
We only invest in tokens that directly align incentives between token holders and developers. When this is achieved, along with a sound tokenomics structure, we can be more confident in a digital asset’s probability of accruing value over the long term. The correlation between token price and the utilization rate of the token are some of the core metrics that Iron Key Capital evaluates daily. This gives us indication into whether the project has the potential to achieve mass adoption.
We are specifically focused on real-world blockchain use cases and the utility that these networks provide to users and businesses. As the market matures, the price of crypto assets will eventually begin to reflect the value that the network provides, instead of the narrative driven price movements we see in the market today. This will usher in a new era of verifiable trust into the digital economy, as real business introduce crypto into their standard processes and workflows.
Iron Key Capital Founder & CEO