You ask, we answer — PRTS2 FAQ
Tags: Blockchain, Investing, Cryptocurrency Investment, Bitcoin, Cryptocurrency

As with many of the exciting opportunities in crypto, there are often more questions than answers.

Since launching our tech roadmap posts, we’ve received many thoughtful questions about the project. In this post, we’d like to answer some of those questions so all of our community can benefit.

Here we go!

First, some general questions about the Protos Fund.

Q: As the Protos Fund generates returns, how does that affect PRTS Token Holders?

Protos intends to share the Net Asset Value (NAV) of the fund frequently such that investors have full transparency about the value of their investment. PRTS token prices on the secondary market will be a function of that value and investor expectations.

In addition, Protos will buy back tokens with 10% — 50% of realized profits on the open market, reducing the total number of available tokens.

Q: How is Protos better than just putting my money in bitcoin?

The recent increase in bitcoin price has been exciting to watch. It’s also prompted legitimate questions like these. With seemingly so much wealth being created by holding bitcoin, why bother with other coins or tokens?

In short, we believe the crypto market is volatile and still developing. Even bitcoin, the largest and least volatile of the major currencies has seen recent instances where the price will drop 20% or more. We believe we offer Protos token holders value through exposure to a more diverse, risk adjusted portfolio of crypto assets, and a professional team of traders to grow the value of that portfolio.

Q: How might holding Bitcoin be better than holding PRTS?

Unlike passively holding a blockchain asset like Bitcoin, Protos is an actively traded fund. Protos Cryptocurrency Asset Management charges fees for trading and managing capital. Fees are clearly laid out in our OM, which we encourage you to read here. Compared to the liquidity found in BTC markets, PRTS tokens will likely be less liquid, and will be limited to trading on exchanges that limit trades to accredited investors.

Here’s how we think Protos can add more value than just holding bitcoin.

Our full time team of investors and traders stay on top of the market and react to changes in the market, something that is very time consuming for individuals to do. We combine technologists and market experts and have strong network in blockchain communities to assess news and new opportunities. We buy many tokens, not just one. We believe diversifying reduces idiosyncratic risks of one coin failing. We build risk adjusted portfolios using algorithmic strategies. We make use of market imperfections and volatility, which may generate returns that we believe are unavailable if you just hold.

Q: How will this benefit me?

As complexity rises in this market, it is our expectation that it will become harder and harder to identify the best projects, teams and technology. While we believe speculation is driving much of the interest in these new projects, and even the more established currencies, we believe investing blind, without deep understanding of the market and projects, is dangerous.

In addition, we believe the application of risk management techniques, from experienced risk managers, will allow PRTS token holders spend less time staying on top of the market while receiving returns without unnecessary risk.

Finally, it’s our opinion that this volatility and growing complexity play to the strengths of quant trading strategies that make use of market imperfections, volatility and sentiments to provide returns.

Questions on PRTS2 — The multimanager trading platform

Q: What is PRTS2 and how is it different than the PRTS?

The Protos Fund (PRTS) is a tokenized, actively managed hedge fund for blockchain assets. The PRTS tokens are currently being offered.

PRTS2 is a project that is part of the Protos Fund technology roadmap. A technology roadmap is a plan that matches project goals with technology solutions to help meet those goals.

We are sharing information on our intention to create a multi-manager trading platform for crypto, and asking for community input.

The PRTS2 project is not under development as of yet.

Q: Is PRTS2 a separate ICO? Do I get PRTS2 by investing in the current Protos ICO? / Do I need to buy PRTS1 in order to participate in PRTS2?

Those who hold PRTS tokens will receive an airdrop of PRTS2 tokens for free when the project launches. In addition PRTS2 will have its own ICO, in which you can purchase the PRTS2 token, unrelated to whether you hold PRTS token.

We’ve shared more on the platform and token economics here, and add even more detail in answers below.

Q: Why create PRTS2?

PRTS2 is part of our technology roadmap and one of our actions to aid in the management of Protos Fund assets. We’ve detailed our reasons why in our post below.

Q: I’m just an average investor, does participating in PRTS mean I need to participate in PRTS2? I just want you to manage my money with crypto.

If you participate in the current Protos ICO, and hold the PRTS token, you will receive PRTS2 tokens without any additional action being required.

We believe this represents an opportunity to potentially create more value for PRTS Token holders who invest with us from the start. There is no requirement to participate in the PRTS2 project.

What do you mean by “air-drop” of PRTS2 tokens?

An airdrop is a way to facilitate an automated delivery of PRTS2 token to PRTS token holders.