Join the rocket to the Blackmoon
What is it about?
As you might have already noticed, the cryptomarket can be “a bit” volatile. Daily price fluctuations of 20% or more are nothing out of the ordinary, and when there is so much volatility, a lot can be gained… and lost. It is no fun seeing your cryptoasset lose half of its value in a matter of days or even hours, now knowing if it will ever recover. Many people have lost sleep over this and in the end cut their losses just before the price started going up again. If you are one of these people, you might find it easier to invest into cryptocurrency funds — a bunch of cryptocurrencies bundled together to reduce volatility. Some such funds already exist but there is still room for many more, which is why Blackmoon Financial Group decided to launch Blackmoon Crypto, a platform for creating and managing tokenized funds, i.e. funds created with smart contracts on the Ethereum blockchain.
The logic behind it is quite simple: someone with enough capital comes along and decides to make a cryptofund. On Blackmoon’s platform, this person can construct a fund from selected assets (which can be cryptocurrencies, stocks, bonds, commodities, etc.), make a token that reflects the price fluctuations of all the assets put together, and offer this token to investors via different exchanges. Such funds are much less likely to reach x10 gains but they are also less likely to go down 80%. They are therefore a great compromise for people who would like to participate in the cryptomarket but cannot stomach huge ongoing losses or are averse to risk taking.
Who is the team behind it?
The Blackmoon team is worth mentioning because it consists of investment veterans, such as Oleg Seydak and Illya Perekopsy. Both are big names in the FinTech industry, and it is important to note that Blackmoon Financial Group is not a fresh “crowdsale startup”. They have been around since 2014 and have grown impressively since then, giving their investors some solid returns.
How does it benefit from being on a blockchain?
The blockchain’s main advantage are fund tokens, which will presumably be an ERC20 token. You can easily withdraw and store them, which is impossible with old-school funds, since they are “stored” at your bank or broker and it costs hefty sums to have them moved.
Here are some examples of their planned tokenized funds:
What is the roadmap?
In the next couple of months, the Blackmoon team intends to launch their first funds (technology development). In the next two years, their focus will be obtaining the required licenses in the EU and the US (legal and licensing development). Seeing that they are already and established financial group, these goals seem very down-to-earth and doable.
How much money is being raised?
The hard cap is USD 30 million, and almost 1/3 has already been raised in the pre-order that ended a couple of days ago. Since one BMC token costs around USD 1, there will probably be some 30 million tokens issued. It is noteworthy that the token will be downside protected at 80% of its initial value, meaning that its price should not fall below USD 0.8.
What are the tokens used for?
This is where it gets interesting. Fund managers will need a certain amount of BMC tokens to open their fund, which is nice, but what is even better is the distribution of fund-management income to token holders. My only concern is what the SEC will have to say about this since this clearly falls under the “there is an expectation of profits from the investment” section in the Howey Test and should therefore be labeled as a security (and securities cannot be traded on cryptoexchanges compliant to US regulation).
Who is the competition?
The biggest existing competitor is ICONOMI. They have just recently finished testing their first tokenized fund and have opened it to investors, who have already poured in BTC and ETH worth millions of dollars. This is a great sign, showing there is a lot of interest. ICONOMI has quite a head start, but I believe there is still a lot of space for Blackmoon to flourish, especially since ICONOMI’s marketing, transparency, and communication have been very lackluster in the last couple of months.
What do I think?
Full disclosure: I have already invested into Blackmoon during the pre-order. I am a great fan of funds and I believe they are an important factor for cryptocurrencies to be adopted by the masses, since they can significantly boost the performance of any stock/bond/commodity portfolio. I love the idea of revenue sharing among token holders and the team’s pedigree is too good to be ignored. I am also not too worried with the competition since this is still a developing market and there is enough room to prosper.
I do have one concern though and that is the BMC token itself. Because of its use case it will most likely be classified as a security by the SEC, which can be problematic since most big exchanges now require some formal certification that a token is not a security. If that is the case where will the token be traded?
This is basically the only issue that I could find, therefore I give the project a big thumbs up!