How BullToken actively minimises risk for investors.
At the core of all investment platforms needs to be a model to protect its investors against minimising any losses. Different platforms tend to focus on the management of minimising these risks differently. For example Robot Investors tend to be protected against high fees but not against highly volatile markets.
Traditional ICO Pool investors try and stay protected against a risk by investing as part of a much wider crowd of people but these models have lacked transparency where investors are unaware of which ICOs they are investing in. This has led to several cases where investors have lost their holdings due to bad investments decisions made by the ICO Pool leaders.
The BullToken ICO has implemented a variety of methods to ensure risk is minimized to its users. These methods and processes have been designed so that users are less vulnerable from losing their investment but also protected from external risks such as market volatility.
Voting process
In 2017 there was over $5.6Billion raised from ICO investment however as many found, a higher than expected number of these were found to be scam associated. In the same way users of traditional ICO Pools have also been victim of investing in ICO Pools.
For these reasons BullToken has created a transparent community voting system which allows all users of the platform to submit their own ICOs. This then allows the rest of the community to vote on which ICOs they would like to invest in.
This voting process minimises risks for users in a variety of ways. Initially all submitted ICOs will go through an intensive due diligence process. During this voting process ICOs will be analysed by both community members and The Investment Advisory Board.
At any point in the process if anyone on the platform feels they have been made aware of a scam ICO then they can flag to the IAB (the regulatory body on the BullToken platform). The probability of a scam ICO actually making its way to potentially gaining an investment via the BullToken platform, is pretty much impossible due to the level of vetting undertaken.
Distributed risk cross other platforms
Another way BullToken ICO protects its users from minimising any losses is from it’s distributed risk approach to investments. The BullToken team is aware of the highly volatile market ICOs operate in which is why they have clear investment strategies which have been created to protect community members investment.
These include;
· investing in established and stable Crypto Currencies
· Investing in traditional industries such as commodities
· Exit strategies
This distributed risk approach BullToken has implemented allows the community members to operate within a bullish Crypto environment but also benefit from a strategy that can move its resources into other areas if the market turns.
Finally the BullToken platform has also introduced potential exit strategies if required. The exit strategy will protect investments at times if the market causes an investment which begins to decline in value. Exit strategies can also protect consumers against external threats such as regulatory implications which could impact investment holdings.
If there are any potential losses, the exit strategy will ensure these remains minimal. All decisions made are with consent from the wider community and there will be no automatic handling of any market strategies. This means that all decisions will be made with recommendations from both the community and The IAB.
All investment stratagies are done with the consent of the wider BullToken Community.
Reduced buy in risks
One of the core benefits of the BullToken ICO is its ability to become a major shareholder during an ICO Presale. As a method of promoting a project, companies tend to offer an enhanced rate on tokens sold to early investors. In some ICOs this presale can offer an additional 100% on the tokens purchased.
The BullToken community has the ability to invest in these projects early which will minimise investment risk due to owning a large portion of these tokens for free, or in other words, the buy in value per reach token is highly reduced. These bonus tokens will increase the chance to gain a higher return on investment.
In cases where BullToken is presented with investment opportunities these will be treated with the same high level of vetting checks.
The Investment Advisory Board
Another key feature exclusive to the BullToken Platform is the use of its Investment Advisory Board (IAB). The IAB has responsibility to help regulate the BullToken platform as well as identify any scam associated ICOs.
The IAB is built up of elected members from the BullToken community as well as industry specialists from the BullToken team. These members will engage and communicate voting results to the wider community. The role of the IAB however is also to be aware of any investment associated risks which could cause any loss in investment.
The IAB has the responsibility of protecting members of the BullToken platform against potential risks in a variety of ways. These include;
- Communicating and managing investment strategies
- Providing enhanced due diligence on ICOs submissions
- Regulating the platform to identify any malicious behavior
Security
Risks can be measured in a variety of ways and these aren’t always associated with loss making functions. Central to every online platform should be an enhanced level of security which is constantly evaluating for new threats,
The BullToken team have understood the importance of having a high level of security for its platform. Rather than relying solely on internal BullToken resources such as company employees to properly secure the platform, the BullToken team created an open invite for users to hack the code.
This was known as a bug bounty where BullToken published all of its code online, and users were incentivised to try and hack the system. In doing so users who were able to find problems with either the code or the platform in general were offered a reward.
The bug bounty ensured that no lines of code were over looked by the team and also because the platform is community run, allowed community members to properly vet the protect themselves.
KYC
In the digital age of online crowd funding platforms, a major risk is that of malicious bots. Malicious bots have the potential of entering a platform and act as another human being. In doing so they can dupe real users into passing personal details or even worse causing errors in the system internally.
These bots can often take a long time to find as traditionally online platforms have not needed to properly verify the identify of their users.
In order to prevent any bots from entering the platform and causing risk to other users, BullToken has implemented the Know Your Customer (KYC) model to its platform. Traditionally this has been a legal regulatory standard used by financial companies who are being regulated by government services.
This minimises risk for users of the BullToken platform as it ensures all members are verified. In the event a user misbehaves or abuses the platform the necessary action can be taken. It also provides long term support in the event that further regulation is bought to the ICO world and will minimise any disruption to the platform.
To conclude, BullToken helps to reduce risk for its community members in a variety of ways. This includes minimising risk of losing an investments, avoiding investing in risk adverse ICOs and also maintaining a strong level of security on the platform to ensure no malicious activities can take place.
Its very refreshing to see methods BullToken has use to ensure risk is avoided where possible on its platform which is unlike some of its traditional competitors such as ICO Pools.
For more information about Bulltoken please visit the following websites or check out the official white paper to read about some of its other core features.
Website: https://bulltoken.tech/
Telegram: https://t.me/BullToken_OFFICIAL
Discord: https://discordapp.com/invite/bt7J7sr
Twitter: https://twitter.com/BullToken
