It is a project to build a platform for investment funds, and to offer one-stop solutions for fund management to asset managers. They will care for everything from IT, infrastructure and legal framework, especially to facilitate the management of crypto currency funds.
From the perspective of the token ($BMC) holder, it is a project to set up a lot of funds on the platform and share the rewards received from all those funds of asset size more than ten million dollars. The rate of rewards will vary depending on the degree of contribution to the project.
1.Project management organization
Blackmoon Crypto (hereinafter referred to as “BC") is a division of Blackmoon Financial Group (hereinafter referred to as “BF"), which is an organization that is a "Holding Company" on the white paper. As the administrator of Blackmoon Crypto Platform (hereinafter referred to as “Platform"), it is responsible for IT, compliance, licensing, partnership with banks, etc. and promote this project.
BF has been established as a division of venture capital, and has become independent and well-established company as FinTech and an investment management company from 2014. As an Irish-registered company, it develops a marketplace for alternative lending (Lending by non-banks, business companies etc., ). The market place now boasts more than 100 million dollars in annual transaction volume in nine European countries.
2.About the Blackmoon Crypto project
(1) Project outline
As mentioned at the beginning, Blackmoon Crypto is a project that builds a platform for both fiat based, crypto based investment funds and makes it easy managing those funds for fund managers, that is a one-stop solution project.
Normally, enormous amount of labor is required to set up a fund, so many crypto currency funds are not set up properly in particular in terms of laws and regulations, and It is BC's opinion there is a big legal risk for both those funds and investors. Under the support of its big partner Deloitte, BC aim to establish an industry standard for fund management by clearing legal and regulatory aspects and using a high-quality platform on the technical side too.
As mentioned below, there are already plans for setting up multiple funds. These funds will issue tokens instead of beneficiary certificates and widely sell to investors.
(2) Scheduled Launch Fund
A. Alternative Lending Fund
BC is introducing BF's most competitive strategy as the first fund in the Platform. It aims to earn profits by lending money to alternative lenders and purchasing loan receivables. There is already a track record from 2014, and despite the Fiat denominated investment, it is a high-profit strategy that has caught nearly 50% cumulative return over the last three years.
B. Low Risk Income Fund
It is a strategy to invest in USD or EUR denominated corporate bonds and acquire stable income. It seems to be targeting safe heaven demand like USDT(Tether) at the time of plunging crypto currencies. It aims to get return about 5% per year in Fiat.
C. Crypto currency fund
It is a strategy aimed at return of over 30% per year. It invests to many crypto currencies, while the diversified portfolio results suppressing risk. It also joins the ICO flexibly.
3.Project strengths
(1) Russian Project
The central bank of Russia has a negative view that the use of the crypto currency is a risk, but the Russian government as a whole seems to promote the use of crypto currencies.
Not long ago, the Russian president Putin met with Vitarik Buterin, the creator of Etherium. Then, it is thought to be natural that they support domestic projects. So, BC has a strong wind.
And Russian crypto currency exchange, CyberEX, will be launched.
There are rumors that the tokens issuing a dividend is considered as a securities by SEC and they will be kicked out from US-based exchanges, but I think that it is unnecessary to consider the risk we will not to be ale to trade $BMC if the Russian exchange runs.
(2) Strong partners and advisors
· Deloitte: The largest accounting firm in the world.
It mainly support this project from the Legal, Regulation aspect.
· Oskar Hartmann: A member of the Board of Directors of Alpha Bank, Russia's largest private commercial bank.
· Vasyl Lastanych: Vice President of Veon, the sixth largest mobile communication service company.
· Sasha Ivanov: Founder of Waves.
· Sebastian Stupurac: Co-founder of Wings.
4.Investment Benefits
$BMC holders that hold a token (and stored in dedicated Wallet), register as a Continuous Contributer (hereinafter referred to as “CC"), and play a one of various roles, can receive stable rewards from the funds, about 0 to 10% from funds return, AUM etc,. CC registration is scheduled to start in January 2018, and each holder can select which role to play at that time.
(1) Investment Advisor (hereinafter referred to as “IA")
IA is a CC who actually manages the funds. It is required to hold a certain number of $ BMC and needs to be evaluated, approved whether it has sufficient experience of fund management by BC. In addition to a management fee of 2% / year of AUM (Asset Under Management), it can receive a performance fee if the management is successful and get enough return.
(2) Other roles
In addition to IA, there are many roles such as Platform Ambassador, Promoter, Investment Analyst, Voter, Legal Advisor, Public Auditor and GR Advisor, which is not required any experience or qualification in particular. For example, Platform Ambassador contributes to the project by raising awareness of platforms and funds like Bounty program participants.
Investors who do not wish to become CC can not be directly paid for the rewards. But they can temporarily lend $ BMC to other investors who wish to qualify for CC, in which case they can receive part of the rewards from the funds. However, tokens can not be withdrawn during the period specified in the contract.
(3) Downside Protection
$BMC has Downside Protection as a feature not seen in other currencies / tokens. $ BMC holders can claim Buyback to BC at 80% of Distribution Price for 2 years from token distribution, as long as there is the Reserve.
Since the Reserve is 30% of the amount collected by ICO, it is roughly 10 M USD. And $BMC was distributed with 1 USD in ICO, so it is possible for holders to request Buyback at 0.8 USD. This means that the token price floor will be 0.8USD for a while. Since it is Fiat-based protection, the asset value will not be damaged even in the BTC collapse phase. If $BMC is in the vicinity of 0.8 USD floor, it seems good to use instead of USDT.
5.Risk
(1) BC’s ability to select IA
The reward system is based on the premise that the fund management will be successful. Therefore, if BC continuously adopts IA with low management skill, there is a risk that the token price will decline and eventually the project will collapse.
(2) Reserve depletion
It is a risk to the holders who invest mainly for the purpose of enjoying downside protection. However, even in an environment disadvantageous to the crypto currency as in the present, if there is recognition of the existence of the protection, investors will buy at 0.8 USD or more and in many cases Buyback request will not be needed for the holders. Therefore, I think that the Reserve will not be depleted during the period of two years.
6.Conclusion
BC’s Platform management and fund management are substantial point in this project. There are risks as stated above, but others have not found much faults. There are the price protection, so I think that it is a token that everyone can buy with confidence, especially for the time being.
$BMC will be distributed around 9/20. According to Dev's remarks at Slack, it is said that with 99.9% probability it will be listed on multiple exchanges within a few weeks to one month. After distribution, it should be able to trade on EtherDelta. Due to contrary wind environments from China bans continuing, I anticipate $BMC will start trading near the ICO price, but I do not mind. I think that it is an opportunity to buy a little more as an asset evacuation for coming November BTC split.