How do I join Hedera Capital?
All you need to do is to join our Telegram and if you are one of the first 50,000 to register then you will be automatically issued with 100 Hedera Capital ETF tokens by way of free ‘air-drop’ at our cost. There is no obligation to invest your own money until you are ready to do so.
How do I invest in Hedera Capital ETF?
Once you have joined our Telegram, collected your free 100 Hedera Capital ETF tokens, and are ready to invest your own money, you then need to send your investment amount to the following bank account at our Swiss bank, Kantonalbank Zug (https://www.zugerkb.ch/en/internationals/corporate-banking/crypto-valley-zug):
Client Account [ ]
or make a payment using your debit card at the following link:
placing your Telegram username in the Notes section so that we can associate you with your funds. Your funds are held on trust in our Client Account for your benefit before being used to purchase the underlying crypto assets.
Logging into our website or app using your Telegram login, you will see your dashboard and you can then convert your balance into the Hedera Capital tokens and start investing in our funds.
What percentage of my investment is used to purchase the underlying crypto assets?
100% of your investment is spent on your units in the Hedera Capital Fund on a 1:1 basis, and each unit is collateralised by the purchase of a matching amount of crypto assets. The initial value of the tokens will be slightly diluted due to the allocation of tokens to the founders, employees, advisors and for marketing, platform development, legal and compliance etc. However, as any purchaser of the Hedera Capital tokens on the secondary market will be unaffected by the impact of the original allocations, and will pay only a share of the 1% annual fee, we believe this will cause the value of the tokens to increase thereby also benefitting the initial subscribers.
What are the fees?
There is only a flat 1% annual fee which is shared equally across all holders of each token on an annualised basis depending on how long each investor held the token in the relevant year.
How do the founders and owners of Hedera Capital make money?
We retain 10% of Hedera Capital tokens between us, which will vest to us over a period of two years from commencement of the Fund. We expect the value of the tokens to increase and this will be sufficient to compensate us for the costs paid to set up the Fund and the underlying software platform, as well as the cost of employing the staff as well as some profit element.
What currencies can I use to purchase fund units? Can I use crypto?
Our funds are targeted in particular at retail investors, many of whom are new to cryptocurrencies but wish to invest in the crypto market in a simple and secure way. We therefore intend that the Hedera Capital ETF will initially be funded with fiat currencies such as USD, GBP, HKD. However, we also accept deposits of existing cryptocurrencies (currently only BTC, ETH and LTC) if you prefer. Fiat currency deposits can only be made by bank transfer or debit card payment from a bank within the SWIFT network which includes circa 11,000 financial institutions across over 200 countries.
What if my bank blocks the transfer?
Some of the legacy banks are not crypto-friendly as they see the crypto revolution as a threat to their existence. For this reason, some banks may try to block payments destined for crypto, or threaten to close your account if you try to make such payments. It is likely that in some jurisdictions these practices would be deemed unlawful restrictive trade practices and we anticipate that court proceedings will be brought against banks. Therefore, if you experience this difficulty, please inform us immediately via the Telegram group so we can maintain a register and consider referring such practices to the relevant banking industry regulator in your country. As an interim measure, you could first open a bank account at a crypto-friendly bank such as Silvergate Bank, before then making the transfer to Hedera Capital.
Can I invest cash?
We are researching options for accepting cash at a designated secure location in each of the major cities of the world using a third party ‘cash collection’ provider such as G4S, for which we would need to charge a small fee to cover our costs of such arrangement. This would be like buying bitcoins through localbitcoins.com but in a secure way only with our designated representative. Please contact us if you are interested in this option.
Do you accept credit cards?
We do not accept credit cards as (1) we do not think it is wise to use credit to invest in crypto; and (2) due to the risk of fraud and chargebacks as well as the lack of KYC controls.
How do you manage to avoid the KYC/AML rules?
We will only accept fiat currency payments from banks within the SWIFT payments system so that there are no additional requirements to carry out anti-money laundering (AML) and ‘know your customer’ (KYC) checks, as SWIFT-connected banks already maintain strict checks over all their customers. Any online ID checking that we could do would never be as secure or exact as the checks carried out by banks connected to the SWIFT network.
Why do you issue a promissory note in return for each purchase of fund units?
This is an important part of the way the funds are structured so as to ensure they do not contravene securities laws in the US or in other jurisdictions. There is a little-known exemption from securities law compliance where the promissory note matures within no more than 9 months and it also helps that the investor is granted a lien over the underlying assets. You will be able to download a copy of the promissory note related to your investment from your dashboard.
What is a promissory note?
A promissory note is simply a note of a promise to repay a debt by a certain date. So very much like an IOU except that it also contains a statement as to any interest payable. It is a very common financial instrument, being used for example for mortgages, car loans and student loans. Our promissory notes evidence the granting of a lien (legal right) in your favour over the underlying crypto assets that are purchased with the Hedera Capital units.
Why do investments mature each six months?
It is important to ensure that the monies sent under promissory note do not qualify as securities under the securities laws of the US or other jurisdictions. To avoid this, the promissory note must mature within a period of 9 months, and we chose a period of 6 months so as to fall well within the legal exception.
What if the company fails to repay my investment?
In the unlikely event that we failed to repay the value of your investment on the maturity date, you would have a claim against us under Swiss Law (Article 900, Civil Code). Remember that your investment is also backed by an insurance policy (click through here) in the unlikely event of fraud or negligence resulting in partial or total loss of the underlying crypto assets.
How will the coins and tokens be selected for inclusion in the Hedera Capital fund?
Hedera Capital will only invest in projects on the Hedera Hashgraph platform. We anticipate that investments will be made in a range of projects, some which are newly launched and others which are existing projects which are ported across from blockchains such as Ethereum.
How can I get my money out of the fund?
There are three ways to get your money out. As the Hedera Capital ETF tokens will be traded on exchanges, you can sell your tokens at any time on exchange at the then-current market price. Secondly, for a small admin fee, you can manually withdraw the USD value of your tokens at any time via the dashboard on our platform and that sum will be immediately repaid to the original bank account and should be visible in your account within a few business days. Lastly, you could wait until the next maturity date (6 months from the date of the investment) and we will automatically convert your investment to USD and if you select the repayment option, we can return it to the original bank account for which there will be no fee. All the actions on the platform are managed by our smart contracts.
What are ‘smart contracts’?
Smart contracts enable ‘trustless’ interaction between strangers over the internet. They are effectively software programs which automatically execute and enforce contractual commitments without human involvement. Smart contracts were first developed by cryptographer Nick Szabo but have only more recently been implemented due to the advent of distributed ledger technology such as the bitcoin protocol and Ethereum. The smart contracts on our Hedera Hashgraph platform are coded so as to reflect actions such as the ICO voting, asset rebalancing, and issuance and redemption of the tokens and associated promissory notes.
How do I know my money is safe?
The value of investments can go down as well as up and past performance is not a guarantee of future performance. So if the underlying assets drop in value, we expect the Hedera Capital token will also reduce in value. Whilst we cannot insure against a drop in value, your funds are insured for loss due to theft or negligence. So for example, if we were to conspire with the independent auditor from [PWC/EY etc] to steal the crypto private keys from the cold storage and disappear off into the sunset, the value of your Hedera Capital tokens at that point would be insured and you would be able to claim back 100% of that value from our insurer [NAME]. Likewise, if we make a catastrophic error and lose some or all of the crypto assets e.g. by sending them to an incorrect wallet address, or losing the private keys, and our negligence results in a depreciation of the value of the Hedera Capital token then again you would be insured for the loss in value of your Hedera Capital tokens at that date. We think this is pretty unique, and whilst it won’t protect you from a downturn in the market, you can rest assured that your investment is safe with us. You can download a copy of the insurance policy from your dashboard.
Where are Hedera Capital’s offices?
Our head office is at 9 Industriestrasse, 6300 Zug, Switzerland. These are real offices, not just a PO Box, and you can visit us any time during working hours, and also view our live office webcam here. Apart from our Zug offices, our international team are also present in New York, Dubai and Hong Kong.
What accreditations or licenses does Hedera Capital have?
[We are licensed by FINMA (Swiss Financial Markets Supervisory Authority) as a fund management company. Our license can be viewed here. We are also a member of Crypto Valley Association.] [PLANNED]