Strategic adviser and Blockchain consultant Wulf Kaal discusses why The Token Fund is a project that’s about to take off

On June 12th I sat down with Wulf Kaal, currently a tenured professor at the University of St. Thomas in downtown Minneapolis, Minnesota, where he is also Director of the Private Investment Fund Institute. Kaal is a leading expert on Blockchain Applications in a broad array of industries, including initial coin offerings and smart contracting, as well as private investment fund regulation and compliance. His scholarship constitutes over 85% of the empirical and theoretical scholarship on Blockchain Applications in corporate governance and private fund regulation in the United States. Additionally, Prof. Kaal is the leading proponent of dynamic regulatory tools for innovation. Please note that this is an informal interview, and no statements made by Professor Kaal should be taken as official legal or regulatory advice.

Currently Professor Kaal is an adviser for The Token Fund, a blockchain startup that has been flying under the radar, but is likely to find the spotlight soon, given the massive upsurge of interest in blockchain and cryptocurrency investment over the past six months. Simply stated, this project acts as market index fund for cryptocurrency and blockchain projects, and provides the service that many investors are seeking: a painless entry into the crypto world that comes with a diversified portfolio and doesn’t require constant maneuvering on exchanges. The Token Fund has been working on a private alpha since March, over which time they’ve managed over $1 million in assets and overseen dramatically impressive yields compared to what you could expect from a traditional market index fund.

D: How is The Token Fund different from traditional index funds that are so popular among retail investors?
W: Aside from the obvious, that the fund is investing in Blockchain assets rather than stocks and bonds, what makes this different is that it’s very difficult to find two people with the skills to manage a fund like this in what is a very volatile crypto space. I believe that Vladimir and Viktor are two extremely talented guys, and I believe in them enough that I’m diversifying my personal investment portfolio by including The Token Fund in my allocations. The investment vehicle they’ve already developed has shown results that would have most investors salivating, and their team has the technical knowledge and industry expertise to greatly expand on this initial success.

D: What do you think about The Token Fund’s appeal to both new and veteran investors?
W: I think it’s the right product at the right time. What I believe is going to put them over the top is that there are a lot of people who want to invest in the crypto space, but it can be a difficult door to step through. Most people who are looking to invest aren’t interested in looking at the exchanges every day and digging up information on every potential product, because they have their own full-time jobs to pursue and other investments to monitor. The Token Fund is going to attract a lot of these people who want to get into the crypto space but who don’t have the time to do all of the due diligence and jump the hurdles that are currently necessary if you want to be a successful individual trader. In this way, Vladimir and Viktor’s project is going to appeal to both retail investors who have $200 a month to invest, as well as very serious investors who are looking to allocate much more significant sums.

D: What’s the most important thing that every blockchain startup absolutely has to get right?
W: Trust. It’s an industry where you have a finite number of teams who have the technical expertise to see a project through to fruition, combined with an enormous amount of money pouring into the space, and a very lax, almost absent, regulatory environment. You have to trust that the people in charge of the product are not only competent in what they are doing, but that they also are honest and transparent with investors. There are so many ICOs happening right now, and it’s maddening for investors to do due diligence on every single one of them. Since the industry is so new, in many cases there are projects led by people who have had past success in another industry that may not translate well to the blockchain industry, which adds another layer of complication. So, at the end of the day, the most important thing a blockchain startup can do is gain the trust of the community of investors who can make their project successful.

D: What attracted you to The Token Fund initially?
W: I’m in the hedge fund space heavily, and I had a general familiarity with it. The idea of a crypto mutual fund that’s run by experts who can handle the hard parts is brilliant in the blockchain space. It’s an amazing thing to have a fund that facilities ICO investment and diversifies the holdings for the client automatically. I saw what they were doing and immediately recognized the enormous potential, and I wanted to be involved. They’ve got the contacts, technical chops, and the network to build something really big.

D: What do you typically do as an adviser?
W: I advise crypto companies, crypto startups, venture capital funds, and international policy makers on blockchain based solutions in FinTech and LegalTech. As an adviser, I focus on creating synergies for my clients and help build successful new crypto businesses, among others, on existing solutions. Sometimes I take ownership stakes myself and build with the respective team. Other times I advise and consult through my consulting business.

D: What do you foresee as being the hardest obstacles to overcome for market penetration and a successful adoption rate in America and Europe?
W: Short question, complicated answer.
Europe and Asia are already opening their doors, so to speak, and giving blockchain and cryptocurrency companies notice that they’re ready to do business.
US- if a regulator is not facilitating a deeper understanding of the industry, it creates legal uncertainty and deters investors. Until we have certainty in this realm, the momentum is getting pushed back. The legal uncertainty is pushing mainstream investors away from the space, and the market is inhibited. Legacy system infrastructure is holding back a lot of American blockchain companies, in both the technology and financial technology space. If the US government doesn’t do something quickly, the development of the technology is going to lag behind in America.
Singapore- has a government financial authority that has accepted blockchain and has signalled that they’re open for business, which has led to a rush of companies moving there so they can proceed with confidence that they have government support.

D: What new projects are on the horizon for you?
W: I’m well occupied right now, but I’m always keeping an eye out for projects that I feel are breaking new ground. Almost any company or government structure can be replaced with blockchain, so there are so many opportunities for innovative companies. You want to be a first mover in this space and build on top of what’s already there, in those cases where you can’t replace it. Companies that have great ideas and want to be first movers are the ones that I find are the most interesting to advise.

D: Thank you for taking the time to speak to me today. It’s been a very informative experience.
W: Likewise, I hope the article turns out well.
To learn more about Professor Kaal, please visit his site at https://wulfkaal.com/. You can also follow him on Twitter.
To learn more about The Token Fund, please visit https://thetoken.io/ .