Blackmoon Crypto- Our Review
Blackmoon Crypto presents itself as a bridge between the crypto universe and the traditional investment market. They seek to tokenize asset investment funds as well investments in crypto currencies. This is a heavy financial sector venture, with expertise needed in banking, fund management and the legal side of operating such funds. Blackmoon Financial Group is not entirely new, established in 2014 they launched their first intelligent lending platform based on proprietary machine learning algorithms in 2015. The lending platform was moving about $13M a month in by this year. The foray into the crypto based investment products was launched this year.
Our Chat With Their CEO- Oleg Sedyak
BMC- Inital Coin Offering
The objective is to tokenize asset investment funds across of broad range of portfolios, from traditional investments to cryptos. Each new fund created in Blackmoon will be issued its own token…and investing in that fund will amount to acquiring that funds tokens. These tokens which represent a percentage of ownership in a fund are deemed as securities. The legal implications of this would be an immediate red flag, but this team seems to have the people, influence, and connections within the financial and regulatory space to make this happen. The funds are managed by an advisor as is typical in this space. 50% of a funds proceeds are distributed among the token holders via a buy-back (thus increasing token value), 25% is reinvested into the fund and 25% in paid to the investment manager. The Blackmoon Crypto token falls completely outside of the actual investment funds, and is itself not a security. The token’s main utility is for staking within the platform, and generates revenue derived from the maintenance and transaction fees associated with the funds. The platform proposes to develop as set of tools for fund managers to be able to easily tokenize their asset funds, with point click interfaces to generate the legal structure, define the smart contracts, perform token distribution, and perform all tracking and documentation necessary.
Tokenized Assets and their ICO~
Other interface will allow the users to interact with their funding accounts, select assets, track performance and manage their tokens, The success of Blackmoon will be completely dependent on their team to engage and overcome any obstacles that the securities and baking structures impose. The model, while technically elegant, is not overly disruptive. It amounts to a tokenized platform to replace the general interfaces used in fund management today. The interesting part will to see the types of asset funds Blackmoon brings to investors and the types of revenue which staking the BMC can result it. Their will be many more players in this space, but Blackmoon has a team that can activate on their model. Their roadmap does not see them operation in the US until 2019, so there may be others players who will beat them to this market. Missing on the roadmap is a crypto for crypto investment fund…most likely due to regulatory uncertainty.
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