BlockVestis a decentralized cryptocurrency exchange and index fund that is working to bridge the gap between blockchain tech and investors who would like to gain access to cryptocurrency markets. The project is the first licensed and regulated crypto exchange in the US. They employ blockchain technology and digital identity to digitize assets. It is based on the Ethereum blockchain and uses smart contracts for managing digital assets automatically, with the aim of achieving a decentralized “smart economy”.
BlockVest’s network allows for 24/7 trading, global accessibility, transparency, and public verification of the company’s holdings. It’s business model is Toke-as-a-Fund, which allows investors to share in the fund’s income stream, thus making it a good source of passive income.
The platform is self-certifying, monitoring the value of funds, as well as the current reserves of funds. With this, shareholders can check their investments on-the-go. In addition to daily self-certification, the platform allows for monthly external audits in order to ensure transparency and trust between shareholders and the fund managers.
BlockVest also offers an array of open-end investment fund options known as Digital Asset Arrays or Blockpools. These investment funds run on the platform’s network, Nvestnodes. Nvestnodes are quite similar to bitcoin mining but offer more functionality and are less complex.
In general, the network connects holders of collateral with individuals who seek low volatility and uses an incentive-based model to maintain stability. Collateral holders are rewarded for holding stakes in the system.
Although BlockVest has an interesting proposal, market penetration will be a bit challenging considering the number of participants within the space. Also, there are a number of regulatory obstacles the organization may need to overcome as they develop their utility tokens which would allow users to stake BLV tokens and receive returns. Interestingly, they have been licensed and are already regulated in the US. This will give them some necessary head start.
Their direct competitors include Index Coin, CRYPTO20, ZNAQ, IronChain Capital, Trident Coin, Altindex, and PentaFund. Other competitors in this category include DigixDAO, DAI, Basecoin, BitCNY, Bitshares, Tether, TrueUSD, and Havven.
The platform uses blockchain tech in the creation of tokens which are ultimately used to fund projects. In their words: “Blockchain Investments uses a proprietary trading strategy for trading all asset classes. The strategy uses variations of mean reverse, pattern recognition and Supply and Demand. The strategy employs risk modules to be able to keep drawdowns to a range of 6% to 15%. Blockchain Investments targets returns between 12% to 25% per annum with a Sharpe ratio of above 5”.
BlockVest has a total token of 100 million BLV, half of which will be held in smart contract, and later released for future development. 32.5 million BLV out of the other halve will go into a token sale, 10 million will be given to the team and advisors, 5 million to Core Activities Reserves, and the remaining 2.5 million BLV tokens will be used for marketing and partnership incentives.
In line with the marketing strategy, BlockVest has an airdrop program.