Ever since the development of blockchain technology about ten years ago, a lot of companies and individuals have taken huge bets on the emerging tech. This is not a surprise because the world has gone digital and emerging technologies like artificial intelligence, the blockchain, and machine learning are going to lead the way as we move into a new era. One of the latest investments in blockchain technology that has been causing a lot of heat on social media was made by the Fairfax County Retirement Systems.
Fairfax County Retirement Systems Invests $21 Million In Blockchain Technology
According to an official post by Morgan Creek Blockchain Opportunities Fund that was published on the 13th of February, Fairfax County Retirement Systems, has poured in $21 Million into its blockchain project. The Executive Director of Fairfax, Jeff Weiler said that the total sum of the recent investment into Morgan Creek is about $40 million. His goal was to put to rest concerns from those who were worried about the investment. Many people felt that the investment by the county was an unnecessary risk that could potentially cost the senior citizens their retirement money because of the high volatility of the cryptocurrency industry.
Weiler said that the company did not invest in cryptocurrencies but in the underlying blockchain technology. He said that at least 85% of the total money with Morgan Creek Blockchain Opportunities Fund is invested in other use cases of blockchain technology and not cryptocurrencies.
He insisted that a maximum of 15% out of the $21 million would be invested in cryptocurrencies while the bulk of the sum will go into other applications of blockchain technology. He said that the Fund still has no exposure to cryptocurrencies. He made reference to other applications of blockchain technology other than cryptocurrencies. These use cases include digital identity systems, medical data storage, voting identity verification, and digital document settlement, among others.
Weiler, in the official note, stated that Fairfax’s recent investment in blockchain technology was from the Employees’’ Retirement system and Police Officers Retirement System. While $11 million came from the PORS, the remaining $10 million came from ERS. Both amounts represent 0.8% and 0.3% of the total assets in each Fund.
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In the blog post, Weiler also made it clear that Morgan Creek Blockchain Opportunities Fund is the foremost investment fund of all the funds run by Morgan Creek Asset Management. Keep in mind that Morgan Creek Asset Management currently has over $1.4 billion under its care.
According to Anthony Pompliano, the CEO of Morgan Creek, the funding round was initially capped at $25 million. However, the increase in investor interest propelled them to increase it.
About Fairfax County Retirement Systems
Fairfax County is the fourth wealthiest county in the United States. It is home to the office of the Director of National Intelligence and the Central Intelligence Agency in the United States. The average household income per annum is $112,000.
What do you think about the move by Fairfax County Retirement Systems? Is it an unnecessary risk or a good investment? Feel free to share your thoughts.