Why Tokenization in real-world asset management?
Tokenization or digitization of assets is made possible through representing physical assets using distinctive identification symbols.
It allows ownership rights to be transmitted and traded on a digital platform. Tokenization in the blockchain domain entails converting rights to an asset into a digital token. It is essentially the process of representing real-world assets on the blockchain using these digital tokens. By token generation through a Smart Contract, value can be ascribed to the token relative to the real asset. Due to the unprecedented level of transparent information that can be made available on the blockchain, tokenization is making many assets much more attractive to wide-ranging investors.
Increased security and speed, greater operational effectiveness, and lesser dependency on intermediaries when transacting are among some of the chief benefits of using blockchain. In asset management specifically, the ease of proving ownership history, the ability to divide assets into fractions, and the possibility of integrating management principles into the actual asset as is the case with NaPoleonX, the 1st algorithmic asset management company for crypto investors, is noteworthy. Blockchain trading systems make it possible to trade real-world assets and moving to a blockchain-based system reduces the burden of paperwork and allows for more reliable record-keeping.
Benefits of tokenization in real-world asset management
The finance industry is experiencing rapid innovation particularly in the asset management segment. Some of the drivers of this change are aimed at giving wider access to investors who consider accountability and transparency prerequisite to participation. Extending investment opportunities to real assets facilitates value transfer and liquidity from the real world to the crypto ecosystem.
Pioneers in this space include aforementioned NaPoleonX, who have made leaps in developing this potentially lucrative technology through a Decentralized Autonomous Fund (DAF). A DAF is an investment vehicle that empowers investors, provides investors with access to robust investing strategies on any real or crypto assets which then gives greater diversification of investment returns. Quantitative investment strategies which are in essence trading bots within smart contracts are embedded to create unique investment vehicles. By investing in a range of performing assets through tokenization of financial markets, mass adoption of cryptocurrencies becomes feasible.
NaPoleonX aims at driving the DAFs development strategy and provide preferred access during the DAFs’ launch. Each DAF will be a crypto-fund whose investment strategy shall be governed by trading bots. By participating in the selection of the trading bots, NaPoleonX token (NPX) holders will benefit from the rights to use for their own personal account, the trading signals provided by the first trading bots and the possibility to request a revenue share from the botons (Rental Fees). Botons will be equal to 25% of gross performance. The NPX token holders will get 85% of these Botons for the 10 first DAFs that Napoleon Crypto will create.
Tokenization as the ultimate game-changer
Large banks, financial institutions, and other parties which have monopolized the traditional asset management industry while amassing serious wealth through the collection of exorbitant fees are set to be disrupted. No longer will they get rewarded for often substandard performance. The introduction of trading bots in blockchain-based asset management offers a more cost-effective solution to this long standing problem. It will not be long until algorithms become more advanced, technically sound, smarter and more efficient. This will lead to a reduction in unwarranted trading fees and unsustainable expenses. Taking a more comprehensive view, the surge in interest with regards to quantitative strategies has truly gained momentum over the past few years.
As assets increasingly become tokenized, real-world assets become more accessible and less difficult to obtain which will mean greater ease of trade, increased efficiency through the realization of the full-potential of digitization. This will also bring about greater confidence to the asset management market due to the accountability now made possible by the blockchain. Furthermore, the tokenization of assets will provide asset managers the opportunity to diversify investment opportunities in both traditional financial markets and emerging cryptocurrency markets.
Set to become the first 100% algorithmic crypto asset manager, NaPoleonX NPX token sale starts on January 22, 2018 and a quick sellout is anticipated due to the fervent interest shown leading up to the ICO. Any crypto-investor will have the opportunity to participate in the NaPoleonX project. The token gives access to buying/selling signals as part of a software license usage granted to each token holder. Information pertaining to trading signals is obtained through downloadable software from the platform, or via the platform itself. In addition, each NPX token is associated to a license freely sub-licensable, with the reserve that this sub-license is granted to only one person or entity at the time, and based on terms that will be negotiated between the licensed and the sub-licensed.
For more information visit https://www.napoleonx.ai/
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