Swarm Fund Announces Results of Public Token Sale And Appoints Philipp Pieper CEO

Over US$ 5.5 Million raised

First Liquid Democracy Vote Held Successfully

Swarm Fund, a decentralized capital marketplace that provides cryptocurrency investors access to high-return, institutional-style investment funds backed by real-world assets, today announced it raised a total of $5.5 million through its public token sale, appointed co-founder Philipp Pieper as its Chief Executive Officer, and successfully held the first liquid democracy vote on its blockchain based platform.

“Now that we have completed our highly successful token sale and liquid democracy vote, we’re off to the races with our platform development, and partnering with the seed funds that will be the first investment vehicles to launch within the Swarm,” Pieper said. “I’m excited and honored to be leading the Swarm into this next, dynamic stage of growth and expansion. We are in the process of finalizing commitments from a variety of funds who are excited about participating on the platform, and anticipate a January launch of our asset tokenization platform and marketplace for asset-backed tokens.”

Successful Sale and Liquid Democracy Vote

During the sale, 8.2 million tokens were sold to members of the Swarm.

To discourage “pump and dump” buyers, Swarm Fund’s architecture leverages a “drip” liquidity system to initially lock tokens on the platform, and release them over time for trading.

Immediately following the close of the sale, Swarm successfully initiated its first liquid democracy vote to determine the actual drip liquidity release schedule of Swarm (SWM) tokens.

Members cast their token-weighted votes among several possible liquidity options, and ultimately chose four release tranches. The first tranche became liquid immediately after the vote on November 6, 2017, at which point one-fourth of each member’s tokens became transferable. This will be followed by three additional release tranches of 84 days each so that on July 16, 2018, the platform will reach full liquidity of all currently outstanding tokens.

Institutional Crowdfunding for Individual Investors

Swarm Fund allows individual investors to pool their resources and invest in a compliant manner into alternative assets and institutional asset classes, starting with private equity funds, without the high dollar minimums or lengthy capital commitments often associated with those accounts. At the same time, it opens up a new capital stack for fund managers looking to increase capital commitments, as well as the liquidity of their offerings. Pilot funds on the platform are slated to focus on distressed real estate, solar installations, software-as-a-service and cryptocurrency companies.

With a structure similar to a co-operative, Swarm Fund is owned by its members who will also determine, through the liquid democracy governance system, the administrative and philosophical direction of Swarm Fund. Liquid democracy blends aspects of direct and representative democracy by allowing individual members to vote directly on an issue, or delegate their vote to an expert they trust.

This structure can also apply to future endeavors launched through the Swarm. By leveraging the efficiencies of blockchain 3.0 technologies, Swarm provides an entire platform from which businesses can create and run new, crypto-centric enterprises, with a wellspring of funding built in.

Leadership

Pieper’s appointment as CEO underscores Swarm’s steady leadership at the top, and continuity among among its executive team.

Partners Joel Dietz and Timo Lehes will continue in their leadership positions to expand and broaden Swarm’s platform and investment footprint. Following the initial release of the Swarm platform, slated for January, the Swarm will hold its first board election.