MARCH NEWSLETTER

Dear Investors and Friends, 

Amazingly almost a month has passed since our last newsletter. Much has happened at Apollo Capital since then, and we hope this newsletter sheds some light on our progress.

Apollo Capital returned +5.17% for the month of February. During this period, cryptocurrency markets were down more than 10%.

We've travelled across Australia meeting with potential investors. Recently we held events in Perth and Sydney, and we will soon be holding events in Melbourne and Brisbane. We also held a webinar, a link to which you can find below.

This month cryptocurrency markets have continued to be bearish. The week ending March 11, the total cryptocurrency market capitalisation fell by more than 20%, from US$463 billion to US$362 billion. At the time of writing, the market capitalisation is sitting at approximately US$315 billion. Some notable events contributed to this dip:

  • The SEC demanded that cryptocurrency exchanges trading in tokens (that meet the definition of a security under the Securities Act) register with the Commission as national securities exchanges. We believe this is an important step in the regulatory landscape and welcome greater clarity from the SEC. 
  • Google recently banned cryptocurrency advertising, following in the tracks of LinkedIn and Twitter. Unfortunately, some scam ICOs preyed on people through advertising on these platforms.

Adoption by businesses and international organisations has progressed this month, and there have been positive regulatory moves by governments. Some key events are listed below:

  • US Venture Capitalists Marc Andreessen, David Sacks, Elad Gil, Chris Dixon, and Bill Lee invested heavily in cryptocurrency fund Multicoin Capital.
  • Payment processing platform Square found that 60% of users - all of whom have at least $100,000 in annual revenue - would accept Bitcoin as a form of payment. 
  • Playboy recently announced that they will be accepting crypto payments later this year. This follows other large consumer-oriented businesses hinting at the release of their own utility tokens, notably Starbucks.  
  • The US state of Wyoming passed House Bill 70 on March 6, which effectively legalises utility tokens. Wyoming becomes the first elected body in the world to define a utility token as a new type of asset class different from a security or commodity.
  • The Chinese official mouth piece, People's Daily, wrote a front page story on the importance of blockchain regulation. It is notable that the Chinese government is actively bringing blockchain to the public's attention. 
  • The United Nations World Food Programme (WFP) is deploying blockchain technology to make cash-based, cross-boarder transfers faster, cheaper and more secure.
  • Sierra Leone held the first blockchain-audited Presidential election. 

Apollo Capital believes firmly in crypto-assets in the long-term. Short-term price fluctuations are expected in any nascent asset-class; Apollo Capital's mission is to find opportunity in a variety of market environments, and thus provide exceptional returns to investors. 

Sincerely, 

Henrik Andersson, CFA
Chief Investment Officer, Apollo Capital
henrik@apollocap.io
Follow Apollo Capital on Twitter at @apollocap_AU or Henrik @phenrikand