Given the increasingly complex and speculative ICOs environment, we decided to create a simple to understand new ICO. Our objective is to create an investment fund in which we invest the ICO proceeds in the stock market with the goal to generate double-digit returns for you.
Our fund will invest following the principles of Value Investing, purchasing small to mid-size company shares to obtain superior returns. The basic principles of value investing involves doing a fundamental analysis of the company, buying its shares at a significant discount to its intrinsic value and let the time and magic of compounding do its work to generate superior returns. Therefore, our fund will usually hold between 30 and 50 different stock positions that we consider undervalued, diversified across different industries, sectors and countries. We are long-term investors and on average we hold each position from 3 to 5 years. We will also dedicate some of the funds to special situations investing. Special situations investing is purchasing shares of companies that have an element of distress, that is not as usual and materially impacting in a company’s value. These opportunities are tied to some specific corporate action or event and are expected to generate returns in the near future with lower risk. These events includes restructuring, spin-offs, share repurchases or other catalyst oriented situations.
Value Coin plans to launch the ICO on September 15th, 2017 and end on October 31st, 2017. In the case that we reach our cap of $50,000,000 we may end the offering early. 10% of the ICO capital raised will be used for the operations of the fund (technology infrastructure, initial registration, legal fees, marketing, salaries and so on) and to provide initial liquidity to Value Coin tokens. 90% of the funds will be used to build the investing portfolio. Value Coin plans to issue a total of 100 million tokens, 90 million tokens are available to the public and 10 million tokens are held by pre-ICO investors. The initial Value Coin token price will be determined after the ICO by dividing the total capital raised by the amount of tokens issued (100 million). Thereafter, Value Coin token price will be set by the market and may or may not be correlated to the underlining share of the funds. Our planning assumes Value Coin ICO ends on October 31st, 2017 and we expect to begin operations by mid-November.