While traditional finance, which includes banking, investment, and insurance, has been severely impacted amidst the pandemic, the cryptocurrency market has been performing well.
The cumulative market capitalization of the crypto asset class is approaching $1.3 Trillion
. A major portion of this valuation comes from the potential of the crypto market to be used as a hedge against the present economic system. Countries like Venezuela and Zimbabwe are prime examples of this, where citizens have turned to crypto-assets because their local fiat currencies have depreciated
significantly. While institutional demand has undoubtedly increased, even retail adoption is on the rise.
Black Ocean plans to place itself at the forefront of crowdfunding. We realize that the need of the hour is digitalization; however, the investor landscape is currently troubled by three core issues: Time, Cash, and Flexibility.
As the cryptocurrency space grows in popularity, more people are becoming interested in making investments. However, they are finding it difficult to allocate time. As a result, some of these newcomers look towards investment groups to collaborate with. Unfortunately, majority of these groups are privately run tight-knit consortiums with huge entry barriers. A number of investment groups have also been witnessed to be slow, speculative, and inefficient.
Some crypto newbies consider Lending Pools as a good way to earn passive income, however such pools require a significant amount of BTC, ETH, USDC/T, or other cryptocurrencies as collateral. This introduces the second barrier to entry – cash.
The third barrier to entry is flexibility. This is most common in hedge funds that borrow assets from users to trade. Since hedge funds rely on steady performance to survive, they are more likely to trade in assets that have already reached the majority of their potential, leading to diminished returns.
We also believe that many cryptocurrency users strive to remain anonymous, while simultaneously aiming to build a reputation in the space like The Crypto Dog
, who is a prolific member of the cryptocurrency community with over 400,000 followers and has never divulged his identity. On the other hand, many investment tools and services require users to undergo identity checks that cause discomfort.
Thus, Black Ocean's goal is to attract projects and investors to help get accurate information and a transparent mechanism to invest.