Bring you thought-provoking stories about Bitcoin and the cryptocurrency revolution. Here to help educate the community and bring others up to speed! Vires in Numeris.
Social Trading Dies Just in Time For Genesis Vision’s Rise
Get link
Facebook
Twitter
Pinterest
Email
Other Apps
This post was originally published on my Medium blog and can be found here. I hope you enjoy and find this helpful! The content below is heavily built on this investigative article from FinanceFeeds. For context, the author tells the unfortunate tale of Social Trading and its perilous pitfalls as Britain’s Financial Conduct Authority (FCA) acts as a global regulator of investment operations, implementing the ‘Iron Fist,’MiFID II. The story gets interesting when Brokers find themselves under pressure because of the conflict of interest caused by incentive schemes implemented on Social Trading platforms. Social Trading Further Catalyzes the Convergence of Financial Regulation & Technology Social Trading is really just the utilization of user-generated content as trade signals and wisdom-of-the-crowd to make online investment trades. Social trading sites usually provide their users with a suite of community-based tools in order to give them the info needed for making smarter tradingand investment decisions. This became a big problem when Retail Brokerages and Social Trading providers were compensating “lead traders” for bringing in new deposit revenue. Lead traders would then incentive amateur traders (Copy Traders), usually in developing market jurisdictions, to bring in new deposit revenue for the usually “B-book Broker.”
The Brokers would then use a profit-loss model to split the loss between participating stakeholders — the FCA’s goal is to stop this type of conflict of interest and scams from happening. This problem causes MiFID II to focus heavily on defining the details around portfolio management regulations. When it comes to portfolio management and copy trading, the FCA states that portfolio management is active when trades are being made on behalf of the Investor/Client without need for their intervention — automatic tradestriggered based on trade signals…sound like the perfect use case for Blockchain Tech and Smart Contracts. Investors can set how much they are willing to lose in portfolio management, but it stops being portfolio management “where no automatic order execution occurs because client action is required before executing each transaction." The Ponzi schemes described in the FinanceFeeds article occurred as a result of technological advancements accompanied by a lack of government regulation. However, just relying on governments to watch out for the “little guy” across the globe is nearly impossible without some type of joint effort — specially when this activity is happening in undeveloped economies.
The most well-known of the Big 4 Accounting Firms, Ernst & Young (EY), describes the implications of the FCA’s MiFID II In a 20-page report on the topic:
MiFID II represents one of the centerpieces of financial markets reform and it is far from an incremental change. As a result of the expanded asset classcoverage, structural market reform and its applicability for firms previously exempted, MiFID II will dramatically changealmost the entire marketplace as we know it today, with far-reaching impacts on everyone engaged in the dealing and the processing of financial instruments. We expect no business or operating model — especially in the over-the-counter (OTC) space — to remain untouched.
Woah. This is coming from THE industry leaders on financial reporting compliance; however, because this is traditional financial regulatory policy, you’re not hearing about this on your Tele. It has taken something as sexy as cryptocurrency and blockchain technology to get this info in front of you!EY is telling you and I that the entire markets are going to change because of these financial regulatory changes.
The FinanceFeed article also explains that the greedy Social Trading platform operators ultimately killed Social Trading because they were missing three tenets that describe today’s retail traders:
“self-empowerment;
enlightenment and understanding; and
the basis of the demands placed upon retail FX brokerages in the major and well respected jurisdictions of North America, Britain, the Far East and Australia these days revolve around requirements from direct retail traders, not, as was once the case, the dictation of services by the broker to the client.”
Luckily for #1 and #2, Genesis Vision is constructing their platform in a way that empowers Asset Managers to have more choices and abilities while making asset management as easy as possible. For #3, well, their entire business model is built on reducing the regulatory demands of Brokerages while simultaniously creating more transparency.
Genesis Vision — Aligning Regulation & Technology
Genesis Vision aims to create a system that utilizes Smart Contracts, built on the Ethereum Blockchain, to automate specific processes within their overarching Assets Under Management (AUM) platform. The best part about the Genesis Vision business model is that the very important financial data, required to be stored for years, is built on the Ethereum Blockchain, making it immutable and unchangeable by anybody…not even a foreign government regulatory body.
Across the globe and especially in the United States, reporting every move of the Dollar in each account is not required. This lack of transparency allows for investors’ funds to be taken advantage of by dishonest Asset Managers, Brokers, and/or Exchanges — a cloudy situation to say the least.
oday, there is no doubt the technology exists to create a solution to these issues. Considering entrepreneurship and finance are the underlying essential drivers to any economy; the global economy depends on humanity to work together and get this right, the first time.
Looking below, we can see examples of how the Genesis Vision leadership team will implement their smart contracts into specific business model processes. Every process controlled by a corrupt-able human can be automated by utilizing Smart Contracts:
Smart Contracts allow for these important processes to remain transparent — profit distributions; issuance and management of Manager Coins; triggering of reporting requirement data and the others shown above. The solution would really only require for Genesis Vision to cooperate with the FCA on further developing this major, global solution.
Investors: GVT Value
You might be wondering, “what increases the value of GVT?” Well, Genesis Vision Token is the internal currency for the overarching GV ecosystem and has a set supply. The first major way demand for the GVT increases is when Investor deposit volume is up — new money. This new money is used to purchase Manager Tokenswhich entitle the Investor to profits from that Manager’s Fund. Secondly, when Managers are profitable with Investor funds, the GVT is required to payout the profits Investors are entitled to. Third, GVT will be a speculation instrument — meaning, you can profit by trading it at a higher price than you purchased it for. This is important because in the volatile cryptocurrency markets, we actually do experience crazy 100x returns overnight; unlike a more stable asset class like real estate.
Considering the AUM market is currently $71 TRILLION and expected to reach over $100 TRILLION by 2020 (PricewaterhouseCoopers), this could mean some big, big new money flowing into the GV ecosystem and, in turn, building demand for the GVT. Putting this in perspective — the entire cryptocurrency market, right now, is sitting at $170 BILLION…about .24% of the entire AUM market. Wow.
1% of $71 TRILLION is $710,000,000,000, about 4x where we currently sit. To demonstrate the tidal wave of demand that could becreated for the $1 GVT, I’ll use the currently $5,668 Bitcoin as an example.
Notice what happens to the price of Bitcoin as it maintains market share dominance when the overall cryptocurrency market cap is $1 Trillion? Conceptually, Genesis Vision is on-point. The GV leadership team has been taking on strategic advisers including most recently Changelly’s CEO and Founder, Konstantin Gladych and Co-founder to the Bitcoin Foundation, Jaxx.io Business Development Officer, and well-known Bitcoin pioneer, Charlie Shrem.
To wrap this up, technology and human-greed led to the creation of “Social Trading” which created a more favorable environment for human-greed to take over, Ponzi Schemes. This caused the most developed financially regulated country, The United Kingdom, to step up as a global regulatory body with the FCA and further define facets of Portfolio Management compliance. Together, with new FCA regulations, Genesis Vision can act as the “glue” between all stakeholders involved across all Asset Management markets.
I hope this article acts as a catalyst for you to dig a bit deeper into what Genesis Vision is working on; much as the greedy scammers acted as a catalyst to the UK’s FCA gaining the opportunity to step up as a global regulatory body for the Assets Under Management market!
Below are articles I have written about Genesis Vision after researching their White Paper and underlying topics involved in their industry throughout their Initial Coin Offering:
Below are some resources for beginning cryptocurrency enthusiasts or others interested in something new:
The links below include affiliate/referral links which help support me as a writer. I do not get paid to write and this is my only means to generating income for writing. Thank you in advance and hope these resources are helpful to you. I only include resources in this list that I have used in the past.
CEX.io— Buy Bitcoin w/ credit card, ACH bank transfer, SEPA transfer, cash, or AstroPay. Credit purchases are instant.
CoinPayments — Receive payment via 70+ different cryptocurrencies — the crypto-PayPal.
CoinMama — purchase Bitcoin and Ethereum w/ credit/debit cards & using cash through WesternUnion on their platform. Best for Euro purchases.
Bit-Z— Newer Top 20 cryptocurrency exchange adding new, ICO coins all the time.
Exmo Exchange— just launched their own coin and adding robust features to the trading platform.
Gate.io — Cryptocurrency exchange listing new coins — get 10% off trading fees if you register with this link.
CryptoPay— Spend your crypto. Can order a Euro, US Dollar or Pound crypto-debit card. Get 25% off using this link.
LinkCoin— Your ticket to using LinkCoin, Bibox, and Bibox365 exchange products and ICO’s — mainly Asian cryptocurrencies that are not available on other exchanges.
I am the author of this piece of content and the original can be found on my Medium blog here . Hello! As you may have heard, NEO Blockchain has been considered the ‘Chinese Ethereum’ for about a year now since the project re-branded from Antshares. This is because NEO will perform similar functions as Ethereum does as a platform for decentralized applications with smart contract capabilities, among other tech integrations. NEO’s NEP-5 token standard is synonymous to Ethereum’s ERC-20 token standard in terms of what they mean to the individual networks. Since the inception of ERC-20, there have been over 85,000 tokens created on the Ethereum blockchain network , just under that particular standard. This is a major focus in NEO’s growth strategy, but instead of taking Ethereum’s radically decentralized approach, NEO grows stronger with regulatory compliance standards — meaning, NEO is poised for institutional capital to flow into the network as they continue buil
Image Source Virtual reality continues to be a hot topic in the world of tech as more startups are formed and new technologies see the early days of VR integration. Those of us operating on a day-to-day basis in the cryptocurrency community understand the power of blockchain tech while exhibiting an explosion of startups leveraging VR to raise capital via initial coin offering. However, nothing quite measures up to the uniquely creative virtual platform that Decentraland has become along with other innovative projects like CryptoKitties. Digital objects now gain an identity through blockchain and other technologies integrating with virtual reality will allow for a deeper immersive experience. One example of a technology which will be able to integrate with VR are projects utilizing the Non-fungible Token (NFT) standard, ERC-721, which is turning out to be quite an interesting development. CryptoKitties is an example of a Non-fungible Token based on ERC-721 token standard
This post was originally published on my Medium blog on January 28th, 2018 and can be found here . I hope you enjoy and find this helpful! Source: BlockchainHub Looking at the history of Initial Coin Offerings above from BlockchainHub , we can see that they have raised quite a bit of capital over time — specially in 2017. Since then, 100’s of ICO’s have popped up claiming to create innovative technology while many of them have turned out to be scams. At the same time, there are hundreds of great projects that are not scams and actually building new technology . In this example, I’ll use Blocklancer’s live ICO as an example of minimum , baseline Due Diligence for ICO investing . This piece will quickly dive into the following steps in my minimum due diligence process — the process becomes more detailed with higher amounts of capital invested: - Business Plan, White Paper and/or Strategic Outline (Industry/Market Problems with Proposed Solutions) - Token utility
Comments
Post a Comment