Hillstone Finance, an Alternative to Traditional Funds
The Financial Industry in Korea
Fund, ETF (Exchange-Traded Fund), and crowd funding, despite their shortcomings, are prevalent in Korea.
When people invest in funds, they agree to allow fund managers to have full control over their assets. Employing a fund manager could be a reasonable choice for individuals since choosing the right product and trading at the right time can be exhausting. Unlike professional investors who invest and analyze the market for their living, most individuals do not have time to stare at the charts all day long.
The situation seems better in ETF trading. Individuals’ assets are not entitled to fund managers, and they have control over their assets. However, since investors make their own decision in the whole process, they need to spend significant amount of time studying and prospecting.
Lastly, crowd funding has been an attractive platform for both startups and individual investors because startups can easily raise funds while individuals can invest in interesting projects. But crowd funding also has its drawbacks in that it lacks safety measures to protect individual investors.
Leveraging the benefits of traditional finance, Hillstone Finance tries to offer a better experience in investment by solving the existing problems with block chain technology.
Limitations of Funds
People invest in funds because they believe that fund managers will generate profit for them. People do not have to spend time considering when and which stocks to buy. People allow fund managers to do whatever they want as long as they return profits eventually. But in fact, a steady profit is not guaranteed even for fund experts. The lack of flexibility in assets is another problem of funds. Let’s go through some of the drawbacks that funds have.
First of all, people usually end up making little profits due to the low return rate and intermediary fees. Considering the crypto-market where people can make insane profit in short time period, the tiny expected revenue which usually comes after more than a year does not seem very intriguing for investors. People have to pay for unnecessary intermediary fees which makes it even more unattractive.
Other problems include lack of asset flexibility, information bias, and lack of control over their assets. Investors cannot withdraw their assets since those assets are locked in projects for a certain period. They have to give up a significant portion of their asset if choose to retrieve their money from a fund project. Moreover, customers usually receive distorted information because of institutions’ preference of advertising their own products over others. Lastly, the lack of control could be another downside for people who want to make their own decisions in investment.
Unlike those basic funds, the merits of using ETF is that people have full control over their assets and that people can move their asset freely. However, there are two main disadvantages of ETF.
First, people need to spend time analyzing the stock market. Whether an individual make profit or not totally depends on his or her decisions. There is no fund manager who stares at the stock charts all day for you. If people want to make a stable profit, they must pay significant effort to analyze the market. This might be possible for professional investors, but it is quite burdensome for individuals who have their own jobs.
Second, the stock charts can mislead investors if not analyzed carefully. When people invest in ETF, for example, they would select top 50 stocks in S&P 500. Therefore, the rise in S&P 500 charts does not necessarily mean the rise in value of ETF people purchased.
Besides, people will be charged if they want to extract their money from a fund project in the first month.
Crowd funding has been one of the most promising funding platform for individuals and startups. Individuals are presented with interesting projects, and startups can easily raise funds from the public. The transparent disclosure of information is the most important challenge for crowd funding since startup investments are usually high-risk. To maintain a healthy economy, it is crucial that investors can access the correct information. However, most users cannot fully access all information they need to evaluate the risk. For example, a Korean game startup just vanished after raising funds.
Solution: Hillstone Finance
Hillstone Finance abstracts existing problems mainly in three ways.
First, Hillstone Finance minimize the risk in product itself. Hillstone Finance selects the best products verified by experts so that our customers are protected from potential bankruptcy and fraudulence. Our platform imports products from global sourcing platform FUNDY which consists of global top fund managers. Imported products go through additional audits from Hillstone audit team in order to offer only the safest products.
Second, Hillstone provides the flexibility of assets. Our users use HSF, the token used in our platform, to invest in fund projects. They can take back their fund anytime they want. If the price of HSF exceeds the expected revenue of a fund product, users can withdraw their HSFs from the fund and sell it to the market. In our platform Investors, users’ assets are both flexible and profitable.
Third, Hillstone Finance eliminates unnecessary fees and maximize customers’ profit. Hillstone Finance is a DeFi project, which means users do not pay for all kinds of fees that could charge them in a centralized finance project. People use their money to directly invest in a project, with less cost and for higher profit. In addition, Hillstone Finance distributes all the returns to our customers. Unlike banks that take away most of the return, we put our customers’ profit as the priority.
To conclude, Hillstone Finance utilizes the benefits of the traditional financial industry and combine them with blockchain technology to make up for the drawbacks of the industry. We minimize the inconvenience and cost in investment, and aims to maximize our customers’ profit.
Official Website: https://www.hillstone.finance/