Guys, I’m a bit confused on what’s the difference between the proposed service/platform and simple asset management except the fact that the former is going to implement blockchain technology?
Answer from Hélie, our CEO:
It is true that currency baskets could theoretically be traded by asset management companies but the comparison stops there .
In terms of product there is no product proposed by asset management industry that offers an individual to have a currency that mirrors the world economy .
Why? because Foreign Exchange market structure and pricing is adapted for large amounts . There is no affordable price for all the currencies that we have in our basket .
Give me just one product from an asset management doing that and I'll send you a huge box of swiss chocolate . We used to run a currency management company within one of the largest asset management structure . A 20 Bio. USD business . Offering such a product for individuals would be just impossible.
That's where Blockchain and the tokenization of the basket we created comes . We are able to make it digital and for very small amounts while it is liquid , cheap , easily accessible and secured .
Beyond the price and the amounts, also huge benfits compared to asset management product apply :
- Our tokens will be listed on exchanges 24/24 7/7 . Try to buy or sell a Fund or an ETF on a Sunday afternoon ? or even at 8.00 pm weekdays?
- Regulations : asset management funds have very restrictive regulations and different from one country to the other. This increases the cost . Think of Brexit and the famous passport .
Finally , very few asset managers offer pure currency products. They mostly offer equity or debt related instruments . Some hedge funds did offer pure FX products but in a speculative objective. That's not our goal.
Central Banks are doing this kind of baskets to manage their reserves but for big amounts . And isn't it quite disruptive to offer the "man of the street" to behave like a Central Bank at a tiny cost ?
