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KR1 plc (KR1)


Thursday 23 July, 2020

KR1 plc

Portfolio Update: Nexus Mutual

23 July 2020

KR1 plc

("KR1" or the "Company")

Portfolio Update: Nexus Mutual

KR1 plc (KR1:AQSE), a leading digital asset investment company, is pleased to announce that the Company has sold 35,128.30 NXM tokens in the Nexus Mutual (“Nexus” or "NXM") project at an average price of USD $14.03  per NXM token, generating proceeds of USD $492,991.85.  These NXM tokens were acquired at an average price of USD $2.24  per NXM token during the project's seed round and after the project’s mainnet launch.

Nexus Mutual is recreating the mutual insurance company model on a global scale, bringing people together to share risk, without the need for an insurance company. Built on Ethereum, the NXM project currently offers cover for an array of popular smart contracts and is becoming a crucially important element in the rapidly expanding Ethereum DeFi (“Decentralised Finance”) ecosystem.

Over the last few months, Nexus has seen surging demand, and has now written  over USD $16.39 million worth of cover since launch. Nexus is also continuously expanding its capacities, having scaled the capital pool to USD $7.64 million in funds and signing up more than 1,000 members since its inception.

The NXM token is priced through a formula that takes into account important parameters relating to the underlying capital pool and performance of the mutual, which maintains capital efficiency and guarantees the highest standards of solvency. Due to a rapid influx of funds that resulted in excess capital in Nexus’ pool, the NXM price spiked to levels that strongly encouraged redemptions.

KR1 continues to hold more than three quarters of its initial Nexus position and intends to potentially repurchase some NXM tokens, after the pricing and capital pool dynamics return to normal levels.

George McDonaugh, Managing Director and Co-Founder of KR1, commented:

“We’re delighted  to have successfully backed another major DeFi project. We were the first brave money in at the seed round in 2017, when only a few saw the potential in Nexus, and long before the ecosystem had even taken shape.

The special talent and background of Nexus Mutual’s founder, Hugh Karp, as well as the team’s hard work and dedication, have placed them at the heart of this new economy. Nexus’ smart contract cover is a perfect example of successful product-market fit, which is a rare occurrence in the yet nascent crypto world.

Ethereum has given birth to this new era of disruptive composable financial applications and we have been a major early investor in ground-breaking projects including Acala, Argent, Melon, Union and Vega Protocol, to name a few. In stark contrast to the low level of developer activity on Bitcoin, the burgeoning DeFi world is testament to the Ethereum community’s strong willingness to experiment.”

For further information please contact:

George McDonaugh

Keld van Schreven

Simon Nicol

+44 (0)16 2467 6716

[email protected]
Peterhouse Capital Limited
Mark Anwyl

Allie Feuerlein
(AQSE Corporate Adviser)
+44 (0)20 7469 0930
Nominis Advisory Ltd
Angus Campbell 
(PR Adviser)
[email protected]

About KR1 plc

KR1 is a leading digital asset investment company supporting early-stage decentralised and open-source blockchain projects. Founded in 2016 and publicly traded in London (KR1:AQSE), KR1 has built a notable reputation for generating significant returns by investing in many key projects that are designed to power the decentralised platforms and protocols emerging to form new internet infrastructures.

Market Abuse Regulation (MAR) Disclosure

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.

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