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David Schwartz’s remarks came in response to inquiries on the safety of PolySign investments through Linqto.
David Schwartz, the CTO of Ripple, has offered valuable insights into the operational methods of Linqto, a fintech firm specializing in investment services. Specifically, Schwartz’s commentary sheds light on the approach that Linqto employs to facilitate investments in companies like PolySign, for which he serves as a board member.
The remarks came in response to inquiries from a New York-based crypto investor on the safety of PolySign investments through Linqto.
Schwartz acknowledged that such investments are legitimate.
Yes. They are actually acquiring PolySign shares from investors, employees, and former employees. These shares are then owned by legal entities (typically partnerships) that you can own shares of. …
— David "JoelKatz" Schwartz (@JoelKatz) March 30, 2023
He further revealed that Linqto’s strategy involves purchasing ownership stakes in PolySign from current and former employees and other investors. The firm then consolidates these stakes into a legally recognized entity, such as a partnership, which investors can own.
Benefits of Fractional Ownership
Through this approach, investors can acquire partial ownership in the partnership, thereby securing indirect ownership of PolySign’s underlying shares. This grants them exposure to the business’s potential growth and any resulting profits.
While acknowledging both the benefits and drawbacks of this method, Schwartz emphasized that its primary advantage is the ability for investors to generate returns on investments in PolySign without committing significant amounts of capital.
… This approach has advantages and disadvantages, but the big advantage is that if you're a qualified investor, you can benefit from increases in the price of PolySign shares without having to invest large amounts of money.
— David "JoelKatz" Schwartz (@JoelKatz) March 30, 2023
Fractional ownership through Linqto allows individual investors to gain access to private market investments that they may not otherwise be able to access or afford. It also allows for greater diversification of an investor’s portfolio, as they can own a stake in a variety of private market assets through a single investment.
Schwartz recommended that this strategy be employed by investors seeking to invest less than $100,000 in PolySign. For investments totaling $100,000 or more, he advised that investors should directly purchase the company’s shares.
If your investment amount is less than $100,000, this is probably the best way to do it. If it's close to or over $100,000, you're probably better off investing in the company directly. See Linqto's FAQ for more information. pic.twitter.com/qKb0ni1HCb
— David "JoelKatz" Schwartz (@JoelKatz) March 30, 2023
PolySign’s and Linqto’s Goals
PolySign, co-founded by Arthur Britto and David Schwartz in 2018, seeks to offer institutional investors a blockchain-based infrastructure for managing their digital assets. The team’s mission is to promote the global adoption of digital assets.
Linqto, on the other hand, is a fintech firm that facilitates investments in private markets for as little as $5,000. Its standout feature is the ability to enable fractional ownership of private assets. Earlier this year, the platform onboarded Ripple stock pre-IPO.