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The Genesis Vision ICO starts on the 15th of October. The pre sale which was scheduled to run until the 15th has already finished due to the hard cap being reached.
What is Genesis Vision?
They're building a new decentralized platform that aims to bring exchanges, brokers, traders and investors together. They state in their whitepaper that by using blockchain technology they'll be able to provide a completely transparent platform to facilitate lending between professional traders and investors.
How big is the market?
The trust management market has been growing year on year and is estimated to be worth $70 trillion. Cryptocurrency is just a tiny part of that at the moment but with new platforms like this starting and the huge increase in the popularity of cryptocurrency, it should start to get much bigger.
Traditional Trust Management
Most traditional trust managements run in the same sort of way, you simple invest money with them and they (hopefully) provide you with a profit and a small report at some point in the future. The problem with this for investors is they have no idea what's going on with their investments.
Investors generally receive some sort of report with statistics but this can't be verified.
This lack of transparency is the main problem with the industry. Brokers have the ability to lie about the trade history of their managers.
There's been a large amount of fraud from Trust Management firms. A lot of Ponzi schemes have been set up aided by the fact that technical solutions for the platforms are complicated for the average investor to understand. This has put many off investing.
Due to so much fraud occurring the regulations have been tightened in recent years, companies have to go through a long process to be able to accept funds, this is obviously no good for them and no good for investors, their costs are simply passed on to the investor by increasing their fees.
Genesis Vision are aiming to add more transparency to the market with the help of smart contracts on the blockchain so that investors know exactly what's going on with their money, they hope that this will instill more trust into the market and attract new investors.
How will the new platform work
Each manager on the Genesis Vision platform will have their own cryptocurrency, the size of which will depend upon their previous trading statistics. For a user to transfer funds to a manager they'll need to buy a managers cryptocurrency on the platforms internal exchange.
The trading process for the manager will stay the same, they'll continue to trade on their preferred exchange. Genesis Vision will record all of their trading statistics on the new platform. The new platform will be able to guarantee investors that all of this information is correct and with the use of smart contracts the investment and profit history will all be available to view.
Key Advantages
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The new platform aims to provide advantages for all involved, here's a few, but not all of the key advantages over traditional fund management platforms.
For investors
- Investors will be provided with easy to understand statistics of the traders history.
- They'll be able to invest with either FIAT currency or cryptocurrency.
- The profit distribution will be completely transparent.
- Investment portfolios will be readily available for any type of investment risk that the investor prefers.
For Private Managers and Funds
- Opportunity to attract investors from anywhere in the world without the need to pay for expensive advertising.
- Easily verifiable trading history to guarantee fair competition between managers.
- Opportunity to promote your own strategies to a website full of potential clients.
- Increased confidence in you due to your own history being easy to view.
- Your own branded cryptocurrency that will be freely traded.
For Brokers
- There's no centralized company, the platform is completely decentralized.
- Brokers can attract investors with increased confidence from all over the world.
- Participation will be free.
- All required software is free.
- Brokers can be sure that they're data is safe due to the openness of the software.
- Brokers will be allowed to do any sort of marketing to attract new investors.
- The broker won't need to supply any data of their current clients, only the managers trading history will need to be revealed.
Internal Exchange
The platform will have an internal exchange which will allow investors to purchase the managers coins. Each manager will have a limited amount of coins which will depend upon their rank on the platform.
To start with the coins will only be available by purchasing from the manager at a fixed price, after a while the coins will be freely traded on the internal exchange, the price of the coins and subsequent 'market cap' of the trader will likely depend upon their trading history.
Manager's Coins
Purchasing a traders coins will bring several advantages over the traditional method of just using FIAT currency:
- The managers coin will become an asset. The investors will be able to trade the coin on the internal exchange. The investor has the option of returning the coins to the manager but only after the contract has between the 2 has finished.
- The investor will be able to purchase coins that can be traded at any time, this should increase their confidence and motivate them to assemble a collection of many different coins on the platform.
- The new method aims to increase user retention, investors will constantly be able to monitor the worth of their coins rather than invest a set amount of money and check it months later.
How do you become a manager?
- To become a manager traders will need to either confirm it on their broker's website or register directly on the Genesis Vision platform. To trade on the platform the manager will need to prove that they have access to a set amount of funds.
- The manager will select a reporting period based on their trading strategy, normally from 1 week- 3 months.
- Once registered the manager will be blocked from depositing any additional funds. The managers own coin supply will be distributed with a total volume of 1000 coins.
Recording trading history
One of the most important parts of the new platform will be the ability to record a traders trading history. To do this Genesis Vision will:
* The brokers trading platform will write all transactions in IPFS.
* An off-chain communication channel will be created between members and the network. After each transaction, a hash of their trading history will be sent to the network.
* A service will verify that no amendments have been made to trading history.
Bringing users and traders to the platform
Genesis Vision says that they have partners that have developed software for brokerage companies. Their partner 'Tools For Brokers Inc' is servicing over 250 companies. Tools For Brokers is already selling a similar software without the cryptocurrency aspect to over 80 companies.
The platform aims to have 100 brokers within 2 years, which will attract 100,000 investors and 10,000 managers. The average trading volume per investor is estimated to be $500,000(including leverage) per month. If the platform meets its goal then trading volume should reach $50 billion.
Key team members and project history
- Russlan Kamenskiy, CEO: He's a financial software developer with over 7 years of experience. Developed a trading system for the stock exchange named "Saint Petersburg", was head of a software department of a financial brokerage.
- Dmitry Nazarov, Co Founder: Another software developer with 6 years of experience, worked in difference financial organizations, including a brokerage company, stock exchange, and a large UK based foreign exchange company
- Alex Kutsenko: The CEO of "Tools for Brokers", he joined the team at the start of 2017. His company has been in the market for 8 years and has over 300 brokers as clients.
The project started in November 2016 when the 2 CO Founders won Hack-Russia in the nomination "finance and blockchain" with the project. Because the project seemed so promising they continued developing it after the event.
ICO Details
- Sale dates: 15th of October- 15th of November.
- Token price: $1=1 GVT.
- GVT for sale: 33,000,000
Conclusion
The project seems promising with the initial concept winning HackRussia. With Alexey Kutsenko on the team who already has 300 brokers as clients it should develop well.
Links:
Website: https://genesis.vision
Whitepaper: https://genesis.vision/white-paper-eng.pdf