1. Initial Coin Offerings (ICO) Big risks with huge returns
Chris Kitze, Chairman

2. What is an ICO?
A way to finance a company or project via crowdsale of tokens
Seed stage or even earlier!!!
Donations are accepted (usually in BTC or ETH) to pay devs
Investors receive tokens in proportion to their investment
Tokens are traded on exchanges and used for projects

3. Why All the Attention?
Almost $3B so far in 2017!!

4. Entrepreneurs Love ICO’s
Much better terms than traditional venture capital
A great way to build a community of users while raising capital

5. Spectacular ICO Returns
ETH returned almost 1,000x (in 3 years)!!!
MTL returned as much as 40x (in 3 months)
a very long list of 2-10x returns in months

6. Mechanics of an ICO Build a marketing web site Write a white paper
Collect BTC or ETH - promote your coin
Deliver ICO tokens
Trade on exchange
Buy a Lambo!!

7. Economics of a Crypto Whale Investor
Acquired ETH or other crypto early
Owns BTC or ETH at very low cost basis
Playing with House Money
Can handle technical and key storage issues
Some are crypto BILLIONAIRES

8. Coins That Never Did an ICO
Bitcoin ($125B)
Litecoin ($3B)
Monero ($1B+)
...

9. A New Form of Credit Creation
What’s Good About ICO’s
A New Form of Credit Creation
Coins go straight to the communities they serve
Wisdom of the Crowd
Usually a good indicator of demand
Unregulated for Now
A lot of innovation
Immediate Liquidity
Ability to exit once listed (~can be thinly traded)

10. Unqualified Teams are Funded Stupid Projects and Outright Scams
What’s Bad About (some) ICO’s
Too Much Money Raised
Terminal value on Day 1 - Fat and Happy Team
Unqualified Teams are Funded
Some people are good at raising money, but can’t operate anything
Stupid Projects and Outright Scams
Some coins just shouldn’t exist
Immediate Liquidity
Many founders ill equiped to deal with a “public currency”

11. ETH raised only $17.3m (50,000 btc)
A Tale of Two ICOs
ETH raised only $17.3m (50,000 btc)
~ Distributed ~50m ETH $0.35)
Tezos raised $232m
Founders fight over money with foundation + lawsuits
No coin yet

12. Pitfalls of ICO Investing
You have to know someone to get the best deal
Scammers are everywhere
You are responsible for storing the coins
You are responsible for keeping up with news about the coin
Too many ICOs, mountains of deal flow

13. Rules for Successful ICO Investing
Always buy the TEAM!
Token must build community and usage
Not raising too much capital
Get in early for biggest discounts
Be prepared to trade when first listed
If a coin continues to do well, buy more
You will need to securely store keys

14. ICO Investment Strategy
ICOs are “high risk” portion of crypto portfolio
Sell a portion to immediately recapture invested capital - harvest gains into BTC
Monitor status of project - know someone inside
Communicate with lead devs
Don’t get attached to any coins

15. Outsource Your ICO Investing to Professionals
Alphabit Fund sees 20 new ICOs per day
Investors in ICO’s since 2015
Experts in evaluating and investing in ICOs
Professional accounting and key storage
Excellent returns to date