Blackmoon is bringing tokenized investment funds that can be bought and sold to the market. You might be scratching your head and asking, “What is a tokenized investment fund?” It is just as it sounds, they are baskets of investments, funds and other financial instruments that have been turned into tokens and thus represent a value unto themselves. They are also referred to as security tokens.
Essentially, this allows participation in the traditional market though smart-contract enabled Blockchain technology.
Finances
Blackmoon had a two-day ICO Sept. 12-13, 2017, which brought in $30 mln in funding. The token, known as BMC, is ranked by CoinMarketCap at 353 and is, at time of writing, trading at $0.62. It debuted at $0.86, which is a decrease of 39 percent. Its all-time high was $2.36 on Jan. 10, 2018. Since that high, it has remained relatively stable by comparison with many other cryptocurrencies.
Investment tokens on the horizon
Blackmoon has already tokenized its first IPO. Yes, that is not a typo, you read correctly, IPO. Quoting directly from their website: “Blackmoon is the first company in the history to tokenize an IPO in this way and it allows cryptocurrency investors and users access to the Xiaomi Corporation IPO.” So as a token investor, you can take part in the IPO indirectly by purchasing the tokens that have tokenized the IPO. There are more investment types on the way, too.
Portfolio tokens
Blackmoon has three tokenized investment funds in the works for release. Think of these as tokenized investment funds with varying levels of risk. The first one is a one-day-most-volatile strategy. It promises to generate the returns corresponding to the yield of the crypto assets with the largest volatility. In other words, it wants to be more volatile than Bitcoin in one day.
The second token is a top-20-market-cap strategy, by putting the top 20 coins by market cap into a basket. Its strategy is to generate the returns corresponding to the yield of the cryptocurrencies with the largest capitalization.
The third coin combines cash and the top six coins by market cap to provide less volatility with cash as the buffer.
ICOs are for everyone
ICOs open the door to everyone to be able to invest, not just accredited investors. This levels the investment playing field for everyone and allows for more participation.
“Historically participation in an IPO has generally been a prerogative of institutional traders, but now with the democratization of the market and availability of new tools, it has become available for everyone. We have provided cryptocurrency holders the option to participate in the performance of Xiaomi stocks without leaving the Blockchain universe, and this is what Blackmoon has been all about from the start, ” said Blackmoon CEO Oleg Seydak.
The verdict
While it might seem hard for some to grasp the idea of tokenized IPOs and other funds, this way of investing is only going to grow as more and more people take advantage of these new investment opportunities, for which they were not “accredited” to participate in before.
If all goes well with the launch of the tokenized funds, we might see Blackmoon lead the way in the tokenized investment funds for the time being. However, once the market of tokenized assets is established, competition will creep up out of nowhere and things will get innovative and interesting.
Arman Shirinyan
Alex Dovbnya
Dan Burgin
Vladislav Sopov