The cryptocurrency industry has in the recent days, broken all the past records. The rapid growth in value of the overall market has evoked mixed reactions, with some hailing the digital currency revolution and others calling the unprecedented growth as a bubble. Irrespective of everyone’s opinion, it is still hard for people to keep track of a range of investment opportunities the cryptocurrency market provides, especially when it comes to crowdsales.
The early bird bonuses in ICOs today are increasingly becoming beneficial for investors as they adjust to compete with other bonuses from other investment opportunities in the cryptocurrency market today. In order to benefit, one needs to be in the loop at all times. And, the current crypto-currency industry that includes bitcoin and over 1100 alt coins represents a total marketcap of above $166 Billion. Staying up to date in an industry that is constantly shifting is not an easy task. The difficulty lies in sorting through the available news to get the updates which are most significant to an individual’s cryptocurrency investment portfolio.
Being aware of any changes as they happen helps the crypto-investors stay ahead of the curve. But to do so, it takes more than just one person – it is a combined team effort.
The decentralized nature of cryptocurrencies today has opened a number of potential advantages to rapidly grow innovative investment options overnight. The decentralized decision making is catching up to traditional hedge fund management models. The blockchain technology has proven that there can be a protocol where the top management delegates some of its responsibilities and decision-making to a number of strangers, provided there is proper incentive to promote the right kind of behavior within the network. This helps facilitate the growth of the company and enables the management to focus on more pressing issues.
The Blockchain Asset Fund (BAF), a blockchain based hedge fund is powered by BAF tokens and designed keeping such needs in mind. The fund operates under a decentralized platform to allow the participation of everyone in all the aspects of cryptocurrencies; including digital assets, in-house blockchain projects, and cryptocurrency mining. Whereas the standard organizational strategy of a hedge fund would be to hire smart people to manage the funds, BAF will delegate its decision-making authority to its pool of capable associates who will work remotely to solve complex investment analysis and bet on winning investments on the cryptocurrency market today. And unlike conventional funds, the BAF fund managers don’t decide where to invest the funds. Instead, the decentralized system in place allows BAF token holders to cast their votes to execute investment decisions, and their vote carries equal weight as that of the BAF fund managers. This way, the token holders remain in control of the funds, an ideal example of democratization through decentralization.
As much as decentralized decision-making looks so simple, it really isn’t. Its secret for success lies in identifying a new market niche and exploring it with a competitive edge over other investment options. Despite the delegation of management’s responsibility, market economy is still the driving force of this protocol. This can be broken down into Networking effect, Participation, and Rewards. The economics of decentralization, in the case of BAF, can be summarized in one word, decision-making.
BAF has been able to realise a level of decentralization that is not very common in the cryptocurrency or the hedge fund markets. The unique value addition is that every decision towards the application of investor fund into any kind of cryptocurrency mining, digital assets, in-house blockchain projects or cryptocurrencies is going to commit only after a go-ahead by a majority of the investors. We do not generally get to see hedge funds achieve this level of decentralization:
BAF token is an ERC-20 compatible token fully secured through smart contracts and can be purchased and sold on the free market. Apart from the ability to freely trade BAF, their ownership acts as a “Proof-of-Membership” to allow its owners to claim dividends from the profits accrued by the fund. Here’s a representation of how it works:
BAF will be making few exciting announcements soon until then, keep an eye out on the platform’s website for updates.
The fund has already enjoyed strong support by early participants who have contributed close to the US $2 million towards the project’s realization. More information about BAF, its native tokens, and the fundraiser campaign is available on the official site – www.baftoken.org. The information resources on the website include a presentation and an explainer video.