Insula is a fully decentralized hedge fund that aims to outperform Bitcoin. Investors in the fund maintain full custody of their assets; Insula can trade, but only the investor can make withdrawals. The strategy is to run actively traded funds that are diversified and market neutral, thereby limiting risk. But this is crypto, so why not introduce a cutting-edge twist? Insula also makes use of algorithms and machine learning to maximize trading opportunities. Decisions to buy or sell are made based on automated signal generations and based on averaged out mathematical oscillators & indicators. This removes human bias and frees Insula from the rollercoaster of human emotion that fuels the majority of buying and selling in the crypto market.
The company is still relatively new, but it’s clear that what they’re doing is working. The first fund launched by Insula, The Malta Fund, did a x5 in the past bear market. The company has since followed with the launch of The Pala Fund, which benefits from a larger investment universe and improved strategies. There is every reason to believe Pala will outperform its predecessor, and it is expected to do VERY well.
So is Insula an investment fund? Or is it a token?
It’s both. Insula’s funds (Pala is the only fund currently, but more will be launching soon) are a great opportunity for traditional investors looking to get into the crypto space. Not everyone wants to manage their own investments, and Insula offers an excellent decentralized asset management solution with a proven track record.
Now, let’s talk about the token. For those who want to invest in Insula the company (vs Insula’s funds), there’s $ISLA. The market cap has been hovering around 1.5 million, which is very low for a company with this much promise.
Insula just completed development of a new financial reporting system, which has allowed the company to look closely at earnings and make some projections about growth. One of these projections looks specifically at the value of the $ISLA token over the next 12 months. The most pessimistic projection puts the token price between $40.31-$46.68. The most optimistic has the price sitting between $93.72-$107.10. Of course, these numbers are not guaranteed.
$ISLA is deflationary and there were only 1,047,337 million tokens minted at launch. The current supply is around 997,661. Every month, 15% of the fund profits are used to buy $ISLA on the open market. Following a recent vote, 80% of that amount will be burned, and 20% distributed to liquidity providers. With such a small amount of coins in circulation and a low market cap, these burns will quickly and dramatically impact supply.