Pantera Early Stage Token Fund I

Annualized return3

Term3

4 years

Per the amended marketing rules adopted by the SEC, some investment details can only be shown to certain logged-in members.
Status

Closed

Recently funded

Accepting $25,000 - $1,000,000 investments

Have an account? Log in

Accepting $25,000 - $1,000,000 investments

Overview

The Pantera Early Stage Token Fund I will invest as a limited partner in a Pantera Capital fund that has generated a lifetime return of over 1,400% through December 2021*.

Pantera Capital (Pantera) is a premier crypto and blockchain-focused asset manager founded by Dan Morehead. With $5.6B in assets under management*, Pantera is one of the most experienced managers in the space, having launched the first cryptocurrency fund in the U.S. in 2013.

The Fund’s primary strategy is expected to make direct investments in pre-ICO tokens created by teams and entrepreneurs who are building new technologies (protocols) in the blockchain ecosystem.

The Strategy will invest in the fully deployed Pantera fund that manages ~$1.6B and holds 54 tokens focused on tokens and protocols with specific financial application and need*.

Important notes

• Investing in crypto-based assets is highly speculative and currently the market is largely unregulated. Please consider the heightened risks when investing and the potential that outcomes may vary greatly from expectations, which may include the potential loss of principal.

• The Net Asset Value (NAV) of the Pantera Early Stage Token Fund I changes each month to reflect the most recent value of the Fund's underlying investments and investment requests made into the Fund will receive the month end NAV of the previous month following their investment request becoming active. If you have previously invested in the Pantera Early Stage Token Fund I, the NAV applicable to your earlier investment(s) will be different to the NAV applied to future investments based on movements of the investments that may have occurred between the time of your two investments.

Premise

Blockchain technology and cryptocurrencies are set to change the world

  • Cryptocurrency and blockchain technologies are the underpinnings of a new financial infrastructure, similar to how the internet was the underpinning of a new information infrastructure.
  • The overall cryptocurrency market capitalization was ~$1.7T (Statista.com, as of 2/3/22).
  • Almost 76% of executives surveyed said they expect digital assets will be a solid alternative to fiat currencies for global finance in the next 5–10 years (Deloitte’s 2021 Global blockchain development survey).
  • Blockchain offers the ability to improve the business processes that occur between companies, radically lowering the “cost of trust.”

Actively managed by seasoned professionals at Pantera Capital

  • Exposure to Bitcoin and Ethereum is often the first step to investing in digital assets. However, active management by experienced managers may allow for returns beyond those offered by Bitcoin & Ethereum.
  • The investment team is headed up by Joey Krug who co-founded Augur, the first major project on Ethereum.
  • Pantera has a reputation for success, an established network, and value-add business model that makes Pantera a top partner for developers. To date, Pantera has led and participated in many of the biggest deals in the industry.
  • Pantera Capital utilizes what it considers to be best-in-class trading infrastructure and tools for trade execution and has strong relationships with prime brokerages, exchanges, and custodians.

Access to digital assets before they are traded and become mainstream

  • Traditionally, early stage tokens are inaccessible to most investors, and even when they become accessible (post-ICO), investors likely lack the time to fully review these opportunities and conduct due diligence.
  • As the world's reliance on digital assets increases, the Pantera Early Stage Token Fund I allows investors an opportunity to gain exposure to technologies before they become mainstream, potentially generating outsized returns relative to traditional investments.

A primary focus on Decentralized Finance (DeFi) early stage tokens and protocols

  • As of December 2021, the Strategy is overweight decentralized finance protocols relative to the market and is positioned heavily in next generation Layer-1 blockchains and DeFi protocols built on top of them.
  • The total value locked in DeFi has increased 900% from under $10 billion during the first half of 2020 to nearly $100 billion today, according to Goldman Sachs.
  • DeFi technologies are expected to eliminate the fees that banks and other financial companies charge for using their services, allow users to hold their money in a secure digital wallet instead of keeping it in a bank, and anyone with an internet connection can use DeFi to transact with funds being transferred in seconds and minutes.
  • The key characteristics of DeFi technologies result in positive outcomes for consumers, which is expected to increase the reliance on the technology going forward, therefore, increasing the valuation of players in the field.

Undervalued token and protocol selection criteria

  • The Strategy seeks to invest in digital assets Pantera believes offer an asymmetric risk/reward tradeoff, i.e., digital assets believed to be underpriced relative to Pantera’s fundamentals-based valuation.
  • The Strategy seeks to invest in protocols backed by experienced teams that can execute quickly in the dynamic crypto environment and consistently iterate on product.

Essentials

Please refer to the Private Placement Memorandum in the Documents section for more details about this offering.

Short-term investment horizon

  • The Strategy is expected to invest in early-stage tokens with liquidity horizons of 1-3 years.
  • The Fund has a term of 4 years. It is anticipated that Yieldstreet will liquidate 50% of its investment in year 3, with the remainder liquidated in year 4, however Yieldstreet may extend or accelerate the Fund’s liquidation in its sole discretion. Pantera Capital believes that gradual liquidation should reduce market timing risk.

Returns and cash flows

How do I get paid?

  • The Fund expects to provide investors with a target annualized net return of 50%+.*
  • Yieldstreet expects to liquidate half of their investment in the Pantera Capital Fund in year 3 and the second half of the investment in year 4.
  • As expected cash flows are received by the Fund from the Early Stage Token Strategy, Yieldstreet’s management fees and fund expenses are deducted first, and then capital contributions are returned to investors. Next, the remaining proceeds are paid to investors up to a 15% annualized return (Investor Preferred Return) on invested capital. Additional remaining proceeds are paid to Yieldstreet (YS Catch Up) until it has received an amount equal to 10% of proceeds distributed to investors (net of capital contributions), and then all remaining proceeds (Profit Sharing) are split between investors (90%) and Yieldstreet (10%). Please also refer to the Private Placement Memorandum for additional details regarding the Fund’s prioritization of distributable proceeds.

Strong fund and digital asset compliance infrastructure

  • Pantera uses Coinbase and Bitgo as their two custodians, which are both SOC-1 compliant, thus offering what is expected to be a high level of security.
  • For any transaction, stringent security protocols are followed, including geo verification, ID verification and video verification.
  • Pantera actively monitors and tracks suspicious movements in coins/tokens prices and utilizes separate servers for their company and the assets of the funds.
  • Pantera primarily uses Coinbase’s cold wallet to store their tokens. Coins not supported by Coinbase are kept by Pantera in self-custody in a cold wallet, keeping the keys to the crypto offline, except during the transaction process.
  • Pantera capital maintains cybersecurity and litigation insurance policies. Custodians used by Pantera also have asset level insurances.

Slide 1 of 3
  • Returns & Management fees

    Ann'l management fee

    1.5%

    Target ann'l net return

    50%+

    Inv share in excess profits

    90%

    Incentive fee

    10%

  • Schedule

    Payment schedule

    Event based

    Target term

    4 years

  • Structure

    Tax document

    K-1

    Offering structure

    SPV

    Ann'l flat expense

    0.25%

Docs

Important notes

• Unrelated business taxable income (UBTI) is income earned by a tax-exempt entity that is not related to its exempt purpose. UBTI tends to be generated when a tax-exempt entity becomes an owner (in part or full) of a business (such as a limited partnership). LPs may generate taxable income in a retirement account if the partnership borrows money. As such, this offering is not available to pension plans, defined benefit plans, defined contribution plans, retirement plans, IRAs, 401(k) and 403(b) funds, and funds comprised of these plans and funds.

• Eligible investors must verify that they are Qualified Purchasers

*Source: Pantera Capital, as of 12/31/2021. Past performance is no guarantee of future results. Investing in cryptocurrency is highly speculative, and the market is largely unregulated.

This offering page describes only certain aspects of the offering ("Offering") of the securities issued by YS CRPT TPQF I LLC ("Fund"). The Offering is made only by means of the Private Placement Memorandum dated February 17, 2022 relating to the Offering (the "PPM"). The information on this offering page is a summary of the Offering, does not purport to be complete and should not be considered a part of the PPM, or as incorporated in the PPM by reference or as forming the basis of the Offering. No person has been authorized to give any information or to make any representations other than those contained in the PPM or in any marketing or sales literature issued by the Fund or Yieldstreet Management, LLC, as adviser thereto, and referred to in the PPM, and, if given or made, such information or representations must not be relied upon. All investors must read the PPM in its entirety prior to investing in the securities.