Andrew Keys, co-founder of blockchain-based financial services advisory firm ConsenSys Capital, is adding “managing partner at Digital Asset Risk Management Advisors (DARMA Capital)” to his resume.
Keys announced the development Thursday, explaining that he will be driving product strategy and global business development at the registered crypto-focused investment fund. He will join John and James Slazas, the latter being the ConsenSys’ former head of capital markets.
“I’m thrilled to continue maturing the blockchain system with DARMA Capital,” Keys said in a press release. “Our mission of providing Quantitative Systematic Alpha Generation of Web3 protocols will help corporations and institutions effectively manage risk in the nascent and volatile blockchain ecosystem.”
“By registering with CFTC and having world class vendors such as Greenberg Traurig as our legal counsel, and Opus as our fund administrator, we plan to be the gold-standard of institutional investment.”
“As a foundational member of ConsenSys Solutions, Andrew was a key driver in opening up the Ethereum ecosystem to enterprise,” added ConsenSys founder and CEO Joseph Lubin. “As a member of the Ethereum community, Andrew has been a friend to many and a unifying force and voice in many situations.”
“I expect Andrew’s new role at DARMA will enable him to continue his work in strengthening and fostering communication and cohesion in our ecosystem. And of course we are excited to watch Andrew and the brilliant team at DARMA continue to crush it with respect to performance.“
Speaking to crypto news site CoinDesk, Keys explained that his aim at DARMA is to accumulate one percent of the fund’s total per month, minus fees. As he puts it, his goal would be to produce one ether out of every 100 he has every month.
Keys emphasized that this isn’t the same as hodling, something that he believes isn’t what many crypto investors who managed to hold on through the crypto winter would want to do. The real point, he said, is to “create alpha” or achieve an active return on an investment.
DARMA will be starting with an ether long fund and plans to launch a bitcoin long fund within the coming months. The company has also penciled in a third fund based on filecoin for 2020.
“We believe [those tokens] will be the components of the next-generation internet and essentially there is a new asset class in what I would call crypto commodities,” Keys said. “So we’re not interested at the application layer, we’re interested in the protocols that many different applications will use.”
Working closely with ConsenSys
Keys also revealed that although he has already made the transition to working full-time at DARMA, he will still act as an advisor for ConsenSys. He also said that DARMA will be working closely with ConsenSys and will even be making use of the ethereum startup incubator’s software. ConsenSys will also remain a DARMA investor.
Keys noted that ConsenSys has always had a tighter focus on the technology side of the crypto industry, but it’s also important to develop more regulated funds within the space.
“My core competency has been in finance and my secondary competency has been in technology,” he said. “There’s a void in the market, and this is a simple solution and I think a necessary missing piece of the market.”
“I think the investment stage, if you look at the PwC blockchain hedge fund report, over 70 percent of them have less than $10 million assets under management, half of them don’t use a custodian and it’s very immature. We have $100 [million] AUM, we have one of the best custodians in Opus, we have KPMG as an auditor.”
Only accredited investors, family offices, and financial institutions can participate in the fund, he explained, and he’ll be working to reach out to these potential investors.
“I spent the last four years explaining blockchain to large institutions and central banks and almost anyone who’d listen,” he said. “And now we’re going to dial it in specifically to eligible participants, family offices, institutions who are recognizing the next generation of the internet who don’t understand where the investment opportunities are.”