RigoBlock: The Hedge Fund Platform Explained
RigoBlock is a serverless decentralized application which leverages the Ethereum blockchain and is the example of one of the target use cases of Ethereum for extending to the masses a product that so far has just been available to a few privileged ones.
RigoBlock addresses the problem of high costs in setting up and managing an investment fund, and makes it possible for literally anyone to create their own fund in real time.
Do you invest in crypto? Has it ever happenend to you to hold Ether on behalf of others?
Have you ever traded financial assets and wanted to manage your own client?
Have you ever attempted founding your own trading business?
If your answer is positive to at least one of the questions, then RigoBlock is the answer!
And if your answer is positive, you probably have encountered the same issues everybody has experienced: high requirements of initial capital, high setup and legal costs, months in waiting for set-up.
If you ever though about creating your own fund, you are not the only one! For almost anyone working in the financial industry, setting up their own fund is at the same time the goal of a lifetime and the start of real trading. Yet there are some challenges.
First problem: setup costs. They can start from 50,000 Euros for the low-cost funds, up to 500,000 Euros for the high-profile funds. Of course this is not an issue for the seasoned traders, since they have no issues affording the fees. It is however a big problem for young talents willing to devote their lives to trading. Trading jobs at investment banks are in fact 99% sales jobs, and only a few very lucky ones were lucky enough to get a trading job.
Second problem: visibility. A trader’s curriculum is her own track record, aka the historical picture of profits and losses over a time period. Most traders do not have one and job interviews for traders cannot be supported by evidence of performance. Most track records are private due to life-long Non-Disclosure-Agreements and hence become useless. A publicly accessible track record, furthermore, has the power to improve performance by setting a further layer of discipline on the trader: don’t we all work more diligently if we know that someone is watching us?
Addressing these problems with our approach also takes us to the concept of shared knowledge and an environment where traders can not only find the tools that they need, but also share information about knowledge and live in an incentive-based environment which has the goal of making your skills grow over time.
In the world of crypto no structure exists that allows you to manage funds on behalf of others in a trusless way. Normally there always has to be a high level of trust from people asking a friend/relative to manage Ether on their behalf. Furthermore, investors’ funds are not segregated and always rely on the accountability of the trader.
With RigoBlock Drago, no one else but the users have access to their own funds, as ownership of assets is certified in real time by the blockchain. RigoBlock Drago is a platform for anyone to create their own fund for free. RigoBlock does not act as a fund manager, it provides the technology for everyone to trade at the same level as the big hedge funds.