Nousplatform White Label Solution for Decentralized Hedge Funds
The price of Bitcoin is skyrocketing. It is probably a good time to raise questions such as: What is going on with the financial markets? Within the last six months, capitalization of cryptocurrencies have more than doubled: it went from under $100 billion to over $230 billion. At the same time traditional fiat related assets did not show extraordinary performance. Naturally, the investors of the traditional hedge funds raised the question with the Fund’ managers about a possibility of creating a crypto currency and crypto assets portfolio.
Our goal was to get an honest and unbiased feedback from the Fund managers in regards to Nousplatform and the value it provides as a product. In this article we would like to summarize the feedback.
According to the feedback we received from the Fund managers, there is a huge interest for creating a crypto portfolio, showing profitability, attracting more investors and acquiring new assets that are available exclusively on blockchain.
Common challenges reported by the Fund Managers are a lack of technical solutions for servicing their clients. For traditional financial instruments such as stocks and futures there are many software solutions for investments and clearing transactions that investors are very familiar with. In order to create a crypto portfolio, Fund Managers need robust technology to ensure simple and secure interaction between Investors and the Funds. Another challenge is secure safekeeping of the assets in crypto wallets and legal compliance of the crypto funds.
Nousplatform Solution to overcome challenges
First of all, Nousplatform offers a technical solution by employing a protocol with open source code for the interaction between Investors and Investment Funds. It offers an extensive functionality such as the establishment of Investment Funds, issuance of the shares in a form of token, collaboration of Investors and Investment funds, ratings, dividends payout, Investment Fund statistics, trust level, commissions payout, KYC procedures, integration of third party services for conducting an audit of the Fund and much more. We are offering a White Label solution in the form of templates of the smart contracts for different types of Funds with back office and administrator’ dashboard for the Investors and Fund managers under brand name of the managing entity. White Label is a technological solution for creating and managing Crypto Funds and is mostly suitable for large hedge funds with the extensive base of investors.
Safety and Security
Our protocol will be subject to ongoing code audit to discover security vulnerability. We have a very large budget for that ongoing process. New releases will be audited by special companies and their experts in the field of cyber security.
How are executives dealing with compliance in order to create crypto funds? Most of the people think it is an issue that cannot be solved. The compliance depends on the jurisdiction of the Investment Fund. The Fund managers will need the same licenses as if they are managing fiat based assets. Most of the Funds are already compliant in respect to their activity. The Fund’s legal and compliance department will have to research the legal status of the crypto currency and crypto assets in their jurisdiction. In Switzerland, for example, Bitcoin is equivalent of the foreign currency, and portfolio containing Bitcoin is the same as portfolio containing USD or EURO. In the USA Bitcoin and other virtual currencies are treated as property by the IRS for tax purposes (Click here for details). The market of the cryptocurrency and crypto assets in the US is very new and needs some clarity and precise legal framework. A lot of companies rely on the SEC exemptions such as regulation D or regulation A to work with accredited investors. Hedge funds need to seek expert advice from attorneys dealing with financial regulators such as SEC and other governmental organizations in order to form a crypto portfolio.
Based on the feedback from Fund’ managers we are experiencing great interest toward crypto funds and our product — Nousplatform. We have realized that there is a need for extended education, because blockchain technology and managing crypto assets is a very new trend on the market. Everyone agrees that sooner or later most of the Funds will operate on blockchain, and the first players who embrace the new trend will have the biggest chance to effectively position their Funds on the market.
We invite everyone who is interested in crypto funds and assets/tokenization to leave your feedback and opinion in the comments. We appreciate your input and participation in our success!
For detailed information about Nousplatform please visit the official website: https://nousplatform.com
Our White Paper: https://nousplatform.com/docs/nousplatform_whitepaper_en.pdf
Our ICO Website: https://nousplatform.com/ico
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