Description of the problematic situation
There is a growing interest in investing in and interacting with blockchain technology due to its multiple solutions, benefits, and the continuous creation of new projects. However, for many traditional players, blockchain technology is complex both to understand and to invest in, leading to various challenges. On one hand, blockchain technology is new and intricate. It requires a certain level of knowledge that most agents have yet to attain, given the novelty of the technology and its applications. There is a need to simplify investments and interactions within this ecosystem to make the technology and its growing assets accessible to any company or individual who wants to stay at the forefront.
On the other hand, to truly seize the investment and optimization opportunities available in this ecosystem, a dedicated, experienced, and talented team of professionals is required. The rapid change in applications and the constantly growing industries that are adopting these technologies demand knowledgeable investors who can securely pursue profitable opportunities. These investors need to have the time and resources that new investors in this space often lack, as well as the expertise, preparation, and networks to effectively execute various interaction strategies.
Furthermore, it is necessary to emphasize that the more liquid investments are, the more attractive they become to investors, as they can be sold at any time. Traditional private investment funds typically have a predetermined investment period to which investors must commit, preventing divestment during that time, regardless of the investors' needs. As a result, those who have difficulty committing to such timelines are excluded from participating in these funds.
Although publicly traded funds are more liquid, they still require a certain level of sophistication and/or knowledge that not all potential investors possess.
In any case, investment funds present demanding barriers to entry, both operational and economic. The vast majority heavily rely on management fees rather than success fees, which creates misaligned incentives with clients. Additionally, for small investors, the available investment alternatives in traditional funds are limited. Most investment funds have a high minimum investment amount per investor and setup costs that make it impractical to invest small amounts.
Lastly, investors want to be able to invest in the best opportunities wherever they arise, without limitations of geographical and political barriers. Currently, investment platforms are not entirely flexible when it comes to investing in different jurisdictions. The complexities surrounding blockchain technology make it challenging both to understand and to invest in.
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