Australian Crypto Fund New Dawn to Invest in Security Token Exchange

The investment plans, which include also mining and algo trading, come a month after the launch of the fund.

by Kalina Tekelieva
29 May • 2 min
In News

Australian retail cryptocurrency fund New Dawn Fund Pty Ltd has decided to invest in an institutional-grade exchange for security tokens, as well as in a crypto mining firm and an algorithmic trading desk, the fund announced on Monday.

Since its establishment in mid-April, New Dawn has seen a stable flow of investment, according to managing director Rob Dey. One portion of the cash will be deployed into a security token exchange, reflecting the growing significance of this type of digital asset.

“Security token offerings are the next mega-trend in the crypto blockchain space,” Dey commented adding that the exchange that New Dawn will invest in will enhance the capital flow between traditional and cryptocurrency markets.

The exchange is seen to be operational within the coming three to six months and its market cap is expected to reach around USD 50 billion within a year, Dey told Australian online publication Stockhead on Tuesday. He hinted that the exchange will be based in Europe without mentioning a specific country.

What is a security token?

Security tokens constitute an investment contract, which is seen to deliver future profits to investors/contributors. They should therefore be deemed as digital representations of financial assets.

Meanwhile, another type of token can be distinguished - the so-called utility token which is used in exchange for product or service provided by the issuing company. In other words, investors do not buy utility tokens as an investment, but because they have a practical use.

Further investment plans

Additional to the security token exchange, the Kensington-based fund will invest money in a cryptocurrency mining company focused on developing mining equipment and mining farms. The firm will also create a cloud-based platform specialized in deep learning, which New Dawn could then use in its coin analysis.

The other investment venture is an algo trading desk based on the Haasonline software and the Alibaba Cloud. Further details about the desk were not provided.