A funny trend has emerged as the blockchain industry has gained steam. People are generally excited to “disrupt” legacy industries and start cutting out middlemen. Part of this is a frustration with the status quo, another part is a desire to not see the rich keep getting richer, and finally, people are sick of getting ripped off.
No industry is more of a target for this disruption than the traditional finance networks. Acting as middlemen on nearly everything, big banks and other institutions have been able to collect massive amounts of money for a long period of time with few threats to their business.
A Welcome Change to the Structure
Genesis Vision is a company that aims to change this. There is clearly a very profitable opportunity for any firm that can bridge the gap between the blockchain and traditional finance networks.
An ERC20 standard token launched in November 2017 with a very successful ICO, the company has been working hard to bring on new managers, brokers, exchanges, and traders to their network. Their core mission, if you had to distill it down to one thing, is to bring professional asset management to the blockchain.
The private trust management market has been without disruptors for a while, but there are many problems that Genesis Vision seeks to solved. For example, investors currently have little ability to verify their returns, since they are merely provided with statistics rather than transaction information.
Blockchains are built with transparency in mind and fraud would become virtually impossible once companies had moved their asset management to the area. An unspoken aspect to this is that blockchains are also censorship resistant, and it would be much harder for governments to control or prevent certain investments.
Mechanics of the Platform
The decentralized platform depends on its token, GVT, which is a utility token that is used to manage all investment operations, profit distributions, and the exchanges of manager tokens.
Each manager using Genesis Vision can issue their own cryptocurrency to sell to investors, and these tokens are bought using GVT. The entire platform is built on the idea of using tokenized investments in managed funds. These tokens are easily convertible, and therefore much more liquid than private trust investments normally are.
Most of all, Genesis Vision takes a minimal management fee, which is a welcome change to the massive middleman fees involved in managing and using large money managers through regular financial institutions.
Why GVT is Compelling
The investment case in GVT is simple. The market capitalization is directly connected to the assets under management, and assets under management is continuing to go up. Although the exact number of managers on the platform is not public, it is clear that more managers are joining.
GVT is essentially an asset backed currency, except the assets are funds bought with GVT. The price has dropped to a low of $3.73 USD, which makes this a perfect time to buy before the market turns and investors see the value in betting on an asset-backed currency.
Disclaimer: The author owns bitcoin, Ethereum and other cryptocurrencies. He holds investment positions in the coins, but does not engage in short-term or day-trading.
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