Cryptocurrencies are emerging as a genuine approach to commerce, but cryptocurrency markets continue to be volatile and unpredictable. This summer, wild swings in the cryptocurrency market raised eyebrows among investors and have provided fodder for skeptics looking to undermine the cryptocurrency institution. Truly, these fluctuations can be startling. For example, throughout July, Bitcoin has frequently seen fluctuations of several hundred dollars a day.
However, given the legitimacy and opportunity of cryptocurrencies, these wild fluctuations and changes are not signs that investors or consumers should flee from cryptocurrencies. Rather, they demonstrate that cryptocurrency investment, like traditional financial investment, requires diversification. In the same way that stock market investors would be foolish to invest all their assets in a single company, cryptocurrency investors can’t expect to invest in a single token without the unwanted implications of a singular investment.
Cryptocurrencies are still in their infancy, and it’s only in the latter part of the last decade that they emerged as a viable commerce tool. As a result, diversified investment options are limited or nonexistent, and this is problematic for investors. As Fidelity Investments writes, “Diversification can help mitigate the risk and volatility in your portfolio, potentially reducing the number and severity of stomach-churning ups and downs.” Without a diversified cryptocurrency investment portfolio, investors are vulnerable to the wild fluctuations of the market, and they don’t get to enjoy the benefits of making wise, strategic choices. In other words, without diversification, investors are simply along for the ride rather than sitting in the driver’s seat.
Limiting investments exclusively to virtual currencies gives the impression that cryptocurrencies are not a part of the “real world” and that the diverse opportunities available to the broader financial world are not a part of the cryptocurrency universe. In reality, cryptocurrencies exist in numerous nuanced forms that meet a broad range of investing needs. Here are just a few of the most prominent cryptocurrencies categories available to investors.
- Stand-Alone Currencies — So far, these have been the most popular cryptocurrencies. They include name brands like Bitcoin and Ether, and these currencies function like fiat money, but their value is derived on its own merits rather than from associated value.
- Fiat Pegged Currencies — These currencies retain some of the structural value of cryptocurrencies, but their actual value is tied to real-world assets. In this way, fiat pegged currencies are not much different than traditional financial investments except that they are enacted in the crypto universe rather than through traditional financial institutions.
- Functional Currencies — These are specialized currencies. Such tokens either represent the right of the holder to a certain part of the assets or are used as a payment method on a platform of the issuer. Most commonly these tokens are built on the Ethereum and exploit smart contract functionality.
There are plenty of investment opportunities for traditional assets or cryptocurrencies, but until now, there wasn’t a unified solution for diversified portfolios that include both fiat and cryptocurrency. Blackmoon Crypto Platform is that diversified platform. Thanks to the exposure to a diversified array of funds with various investment objectives, it’s the defensive asset that protects against market volatility. Blackmoon Crypto achieves this by embracing diversification, regulatory compliance, and standardization. The Blackmoon Crypto Platform is the one-stop-shop for broad investments that transcend the traditional barriers and extend traditional opportunities. Here is how it works:
- Diversification: The Blackmoon Crypto Platform issues a token (BMC) that provides Continuous contributors (as defined in our White Paper) with rights and responsibilities to the platform. Most prominently, the BMC token entitles holders to be Investment Advisers who will generate and manage tokenized investment funds created on the platform. Other roles will include platform promoters, investment analysts, legal advisors, public auditors, GR advisors. Because the Blackmoon Crypto Platform encompasses both fiat and crypto investments, there is broad diversification potential all housed within the same platform.
- Proceeds: BMC holders qualified as Continuous contributors receive proceeds in the form of individual tokens for funds on the platform. Such proceeds comprise structuring and promotion fees from new funds, maintenance and transaction fees from established ones. It is important to note that Continuous Contributors will receive a distribution of Funds’ tokens from the first Fund created on the Blackmoon Crypto Platform without having to wait for the company to reach breakeven.
- Sustainability: Blackmoon Crypto is also engineered for stability and long term growth. The fund structure’s customizability empowers investors to devise investments that target their specific growth plans. Most importantly, diversified funds, like those offered on the platform, are a defense against market fluctuation or untenable growth.
- Compliance: The Blackmoon Crypto Platform’s core team collaborates with legal experts to ensure that funds are compliant with all existing laws and regulations. Additionally, Blackmoon Crypto has collaborated with financial institutions to vet the fund process to ensure its viability and structure. Moreover, Blackmoon Crypto embraces transparency by implementing blockchain technology to record and monitor the fund’s progress. Tokenization of funds allows investors continual access to throughout the investment process, which holds investment managers accountable and provides full transparency during the investment process.
In short, Blackmoon Crypto Platform enables the opportunity to develop tokenized investment funds with the necessary diversification and broad opportunity provided by traditional investment vehicles. It benefits both cryptocurrency and fiat investors because it combines the opportunity of the crypto universe with the full diversification of the crypto and fiat investments. In a time of continual upheaval and opportunity, Blackmoon Crypto is the investment tool for achieving sustainable financial success that is guarded by diversified assets and an easy to use platform. Wise investors will not be discouraged by market fluctuation. Instead, they will strategic and forward thinking in their approach by acquiring defensive assets that offer profound returns. That’s a winning proposition.