As the market increases and decreases in successive waves, financial investment gurus want to jump into the market in different ways. The problem is that there are many things about cryptocurrencies that make traditional fund structures difficult or impossible.
However, The Token Fund team is putting together a system that will make crypto funds a reality. Tokenbox.io will introduce a solution for the cryptomarket: an ecosystem uniting funds, traders and investors. The platform’s TGE starts at 12 UTС today, on Nov. 14th, in total, no more than 31,000,000 TBX will be released.
When it comes to funds of any kind, a few questions have to be answered – why is it safe, why would one trust a system like that, and what are its main features?
Legal transparency and KYC
Crypto funds keep popping up on the market and for the cryptocurrency community, there’s generally consensus that the world needs more of these since they benefit the entire crypto market. The tricky part, however, is legality: it’s hard to legalize them completely. Tokenbox intends to solve this problem by registering an umbrella fund that would sublicense other funds and individual traders within the fund.
Again, however, the pernicious issue of trust and individual security is always present in the whole system. Unlike the eToro platform, for example, where anyone can start a fund or become a trader, the team will ensure that those traders and funds who would like to participate will be forced to pass a KYC verification process. These procedures will include uploading IDs and various database checks performed by outside sources.
Trading terminal for a perfectly balanced portfolio
From the technical perspective, it’s painfully clear that terminals like MetaTrader, which are used in classic trading, aren’t suitable for crypto-trading. Tokenbox, therefore, has developed a proprietary trading terminal that is currently under development in partnership with TradingView to serve the needs of various market participants – fund managers and traders.
The new terminal will provide a gateway into the global digital currency economy and support hundreds of currencies on leading exchanges from a single account while allowing consumers to access more than 75 technical indicators and trade directly from the chart on all the top exchanges.
From the customer service perspective, the company plans to develop price trigger alerts with SMS, email and in-Browser functionality.
What’s more, portfolio managers will get an opportunity to rebalance portfolios in accordance with the parameters set beforehand by making transactions with specific assets greatly reducing labor costs. The software will also allow automatic report generation for portfolios via messengers (using bots), etc. The trading terminal would also involve connecting accounts with third-party services that help traders.
At the same time, the Tokenbox platform will not only bring together various players but give them access to a valuable predictive financial analysis, created by collective and artificial intelligence at Cindicator platform.
Market liquidity solution
Liquidity can be a struggle as well, since the majority of crypto exchanges set rather tight input/output limits, even after KYC checks – often as low as $25,000. For institutional clients that want to be in the business, this amount is laughably tiny, and this is a real problem limiting any sort of adoption.
The Tokenbox platform traders will be able to use corporate accounts, which have an increased limit of operations, and a liquidity aggregator will allow the funds to make deals on several market exchanges simultaneously, getting access to a bigger amount of liquidity through a single interface.
The platform’s inner liquidity will provide a high transaction speed without necessarily inputting or withdrawing assets to an external exchange market. In this way, the transaction expenses decrease as well. There’s also a lower risk for glitches and delays in Blockchain networks during transactions.
Fund’s tokenization
As for the tokenization, Tokenbox plans to mimic The Token Fund, allowing each fund to create its own token which will be an equivalent of a share in the fund. The process of issuing and redeeming tokens is fully built on Ethereum smart contracts.
Tokenized funds can be open, closed, corporate or private, with any management strategy and funds can invest in any tokenized assets. The rights to investors’ shares are certified in the form of fund tokens. Receipts of investors’ funds, issue of tokens, the reverse process of payment on funds and the fund commission – everything is fully automated. Payment processing is connected with the fund’s smart contract, and the value of assets that are stored on fund accounts, exchange accounts, including funds reserved for execution of orders, is also calculated automatically.
These are certain things that already exist and that can be successfully transferred from traditional markets to the cryptomarket. Tokenbox plans to correct legal functionality by creating entities that will enable issuing sub-licenses to traders and funds that want to use the platform. The company aims to become a cross-platform solution that works on all operating systems and all phones, with simple UIs and clean and legal fund applications.
The Tokenbox team has also promised to give away a $6 mln funding to the first 10 funds registered on the Tokenbox platform.