Frequently Asked Questions
What investments has Ether Capital made aside from Ether?
We hold a minority equity position in Wyre Inc. (“Wyre”), a San Francisco-based cryptocurrency exchange that makes on-boarding into the cryptocurrency ecosystem easy, efficient and compliant with regulations. We also hold a position in MakerDAO (“Maker”), a decentralized credit platform built on Ethereum which has become the backbone of Ethereum’s decentralized finance (“DeFi”) movement. Both Wyre and Maker are key pieces of infrastructure that are critical to supporting the long-term mass use and adoption of the Ethereum blockchain. For more detail on Wyre and Maker, see our respective investment theses here and here.
Why buy our stock instead of acquiring Ether on your own?
Buying shares of Ether Capital (NEO:ETHC) gives exposure to not only Ether (“ETH”), the native token of the Ethereum blockchain, but other high-quality token projects and businesses in the wider ecosystem which ordinary investors can’t access. Also, ETHC can be easily purchased like any other stock and qualifies for a registered account - you do not need to sign up for a cryptocurrency exchange or worry about whether your assets are safe and secure. Ether Capital is a publicly-traded company committed to governance, transparency and security; in short, we are a trusted access point in the emerging cryptocurrency ecosystem.
Why focus on Ethereum? What about Bitcoin and other blockchains?
Created in 2008, Bitcoin was the first blockchain allowing users to exchange value with anyone, anywhere in the world without the need for a trusted intermediary like a bank. This alone was a huge leap forward. In 2014, Ethereum built on the foundation provided by Bitcoin, but instead of payments its focus was a decentralized world computer built on a blockchain. What do you need to build a world computer? In the words of Steve Ballmer: developers, developers, developers! Ethereum has the largest developer community of any blockchain project and, in our view and is well on its way to mainstream applications being built on top of the protocol.
Are your assets safe from hacks and theft?
Ether Capital does not store assets with a third party such as an exchange. Instead, we employ a multi-signature self-custody solution where they are controlled by the directors of Ether Capital as a group. The multi-signature self-custody solution employed by the company is a wallet that requires approval from a majority of the directors for any transaction to be completed. In this regard, Ether Capital’s custody solution does not have a single point of failure and provides strong security guarantees. The multi-signature wallet type employed by the company is also relied on by many of the leading projects in the industry, has been audited extensively and its code has been formally verified.
Cryptocurrency is extremely volatile. Is it a good investment?
Cryptocurrencies are a new asset class and have so far shown themselves to be extremely volatile. However, volatility can be expected whenever any new technology promises massive disruption and we are beginning to see signs of this in many industries - from the internet, to finance, to enterprise software, to retail, etc. We believe we are only beginning to scratch the surface on new use cases in the years to come.
What is Ether Capital’s Net Asset Value (“NAV”) per share?
We do not publish a NAV. That said, we do show our portfolio on our website here and update the Canadian dollar values of our ETH and MKR holdings continuously based on price feeds. Our holding in Wyre is reflected at cost. Investors are free to calculate their own NAV based on the market value of our assets and our most recent financial reports, which can be found on SEDAR.