Since there are many ICOs and projects in cryptocurrency right now, it is always refreshing to see innovative and industry-disruptive ideas. One project called Blackmoon Crypto is looking to bridge the gap between cryptocurrencies and the traditional financial market. I caught up with the team to discuss their project and learn a little bit more about it.
Blackmoon Wants to be the Standard for Legally Compliant Tokenized Funds
When I spoke with the team, they were very eager to talk about their project and extremely knowledgeable in presenting its features. It was clear that they not only knew their project in and out, but also their market at large.
Why did Blackmoon decide that it wanted to enter the world of cryptocurrency and the blockchain?
The team was very adamant that they were not an investment fund themselves, but rather a platform. They explained:
“Blackmoon’s mission is to provide the industry standard for setting up and managing legally compliant tokenized investment funds that can invest in both crypto and most importantly fiat assets.”
They then moved on to how and why they got involved with blockchain technology:
“We undertook this project because our team has an extensive experience in setting up and running investment funds. For example, Oleg Seydak co-founded venture capital fund (flintcap.com) and Blackmoon has an alternative lending fund with 3+ years of successful track record. As of now… tokenized investment funds are not [that well] developed, with compliance being one of the main issues and absence of diversification for the crypto community the other. Blackmoon solution will address these issues and bridge the gap between crypto and fiat universes.”
With an experienced team and a good understanding of their sector, the team seems confident in their business goals.
What is Blackmoon Crypto doing differently from other tokenized funds or fund platforms?
The Blackmoon team said they separate themselves from their competition by providing a platform to take care of funds held on the platform. Legal compliance, support, and access to fiat currencies as well as cryptocurrencies all make Blackmoon distinct. They said:
“Blackmoon Crypto is not a fund, it is a platform to set up and manage legally compliant tokenized investment funds. The Blackmoon Crypto Platform focuses on all the aspects of tokenized investment vehicles, from technology and infrastructure, to legal compliance and corporate structuring. The Blackmoon Crypto Platform will be the one-stop solution for asset managers to create and manage tokenized funds. Unlike the competition, i.e. Iconomi and Melonport we provide the investment community with an access to fiat funds.”
Why would an investor need Blackmoon Crypto to navigate compliance and regulation?
I was curious about why investors or asset managers could not do this themselves, but the team explained that this area requires a deep knowledge of how these regulations work to avoid endangering funds or investors.
“Funds’ [using the Blackmoon platform] legal structure(s) will be reviewed and approved by our legal advisors to ensure they are compliant with existing laws and regulations. As many current investors in tokenized funds are – at best – in Terra Incognita, this eye toward legal responsibility dramatically decreases legal risks for the investors. Blackmoon Crypto has vetted the proposed structure with several financial institutions and has received an indicative approval that it will pass internal procedures, enabling funds to be transferred from and into the crypto world. By sorting out these risks from the beginning, Blackmoon Crypto will improve investor confidence and provide necessary sustainability of the investment process.”
Considering the current state of cryptocurrency and the variety of different laws from nation to nation – and even state to state – I understood how necessary it was to have expertise like that of Blackmoon to help navigate this terrain.
Which countries does Blackmoon operate in, which is most popular, and which are showing the most growth potential? Are there any other countries on the horizon for Blackmoon?
The project operates in a surprisingly large number of countries, and the company does not show much sign of slowing down.
“Blackmoon Crypto is part of the Blackmoon Financial Group, a financial technology company founded in August 2014. Blackmoon Financial Group operates nine countries: Poland, Latvia, Estonia, Finland, the Czech Republic, Spain, Georgia, Denmark and the USA. Currently, the company explores options in the UK and Russia. Speaking of Blackmoon Crypto, based on the results of the pre-order, the company has gained a lot of interest in Germany, the USA, Russia, the UK, Australia and Canada.”
They went on to tell me their future plans and vision for Blackmoon.
“We see Blackmoon Crypto Platform as a global solution thanks to borderless nature of the blockchain technology. For every country we will pay a lot of attention to the local regulations. For example, in the US during 2018, funds on the platform should be able to distribute tokens to US citizens via brokerage firms and exclusively to authorized investors. We intend to apply for our own broker-dealer license in the US and to receive it in 2019.”
Will Blackmoon’s token be an ERC20 coin (based on ETH) or an independent blockchain?
“The platform has two types of tokens. The utility token of the platform and the fund tokens. Each fund will have its own token. All these tokens are ERC20.”
How does a tokenized fund platform like Blackmoon bridge the gap between fiat and crypto markets?
I wanted to know exactly how Blackmoon was bridging this gap. While the team had explained it a bit earlier in the interview, I thought it best to just come right out and ask.
“Funds created on our platform will have all the necessary IT, corporate and legal infrastructure to invest in crypto and fiat realms. Fiat investment opportunities yield unprecedented diversification for the crypto society (since the majority of crypto assets have a correlation coefficient of 90% what effectively prohibits diversification) while the tokenized structure provides all the benefits of the crypto universe, including decentralization, transparency, and exchangeability.”
They continued to explain how they will decrease this gap even further in the future.
“We believe that the Blackmoon Crypto Platform is a turnkey solution that will lead to further proliferation of the decentralized economy. Investment managers from the fiat world will be able to easily create compliant tokenized investment funds and offer their existing customers all the benefits of the blockchain that has been a buzzword among investment managers for several years.”
Check out Blackmoon Crypto’s website here: https://blackmooncrypto.com/
Here is their whitepaper: https://blackmooncrypto.com/bmc_whitepaper_170904_v1.15.pdf
This is a sponsored post and does not necessarily reflect the opinions held by any of The Merkle’s employees. This is not trading or investment advice; always conduct your own independent research.