Cryptocurrencies are extremely volatile and, due to their limited acceptance in the traditional economy, investors have almost no options to disperse their risk. Money has three important properties: It serves as a store of value, a medium of exchange and a unit of account. Currently, cryptocurrencies are primarily used as a store of value. The use of cryptocurrencies as a medium of exchange and as a unit of account is still in a very early stage. This means that there are limited options to escape the volatility of its value. At present, the only real way out is to reconvert into a fiat currency.
At present, the crypto-economy is possibly one of the most volatile economies. Investors can make 10x gains in one month only to lose it all the next month. Thus far, there have only been a limited number of ways to diversify crypto-portfolios to mitigate these risks. Real diversification, across multiple asset classes, is essential for a well-balanced portfolio. Brickblock introduces the first platform where users can seamlessly invest in real estate funds (REFs), exchange-traded funds (ETFs), passive coin-traded funds (CTF) and active coin managed funds (CMFs) through a streamlined process and with significantly lower costs than traditional investing. Each fund on the Brickblock platform has its own denomination and its own "proof-of-asset" (PoA) token which, via established token exchange platforms, can be traded simpler, faster and cheaper than on conventional stock markets. Our asset-backed PoA tokens empower investors to hedge the risk of cryptocurrencies in real assets without needing to convert their cryptocurrency into a fiat currency. All dividends and coupons are automatically transferred to token-holders through self-executing smart contracts on the Ethereum network. The content of the smart contract and the PoA token itself is unalterable, cryptographically secured and visible to everyone on the blockchain. To ensure the safety of the underlying assets represented by the PoA token, a digital trust fund holds the exact same amount of fund shares as tokens issued. This securities account cannot be claimed by Brickblock, the broker or anyone else, and is protected by strict laws regarding trust funds, even in the case of bankruptcy. Only token holders may reclaim their fund shares, at any time.
Brickblock Tokens
Brickblock tokens will only be released during the contribution period in exchange for ETH and Bitcoin. If the Brickblock tokens are stored in a special smart contract, the Brickblock token holder will receive a certain amount of access tokens per week until the Brickblock tokens are withdrawn from the smart contract.Broker-dealers and fund managers need access tokens to list their fund on the Brickblock platform and to pay market-determined Brickblock fees when REFs, ETFs, CMFs or CTFs are sold. The access token is then burned. Brickblock will determine the amount of access tokens based on supply and demand. Brickblock is incentivized to establish the amount of access tokens needed in such a way so as to positively influence the usage of the platform, while still making a profit. All access token holders can act as competitors to Brickblock and sell their access tokens to broker-dealers and fund managers on the open market. Brickblock cannot increase fees without risking a decline in the number of trades conducted on the platform and cannot decrease fees without reducing its own profit. For ETFs and REFs, PoA tokens represent real-world assets in the form of securities. For CMFs and CTFs, they represent a claim to coin funds on a secured trading account or in the custodians’ wallets. Users receive a PoA token in return for every fund in which they invest, which represents a legally enforceable claim to the underlying assets.
Brickblock is an inclusive investment platform that empowers people from all income classes to diversify their crypto-portfolio with real-world assets like ETFs and REFs. We will provide legal frameworks to directly link these assets to our PoA tokens. Furthermore, Brickblock will lead the development of passively managed CTFs, as well as offer actively managed CMFs. Various members of the Brickblock team have spent several years working professionally in conventional asset management and understand the processes and issues of trading and settlement. The asset management and global custody ecosystem is highly complex, extremely cost intensive in a multitude of ways (execution, reconciliation, allocation settlement etc.) and exceptionally exclusive. Our mission is to change that.
We believe that by including more people in the global economy and enabling them to invest their money however they like, everyone will win: investors will pay significantly lower fees, have more options to hedge volatility and risks that accompany the digital economy and bypass unfair local jurisdictions. Furthermore, trusted brokers/dealers and fund managers will obtain an entirely new group of financiers, and underfinanced companies and industries will gain access to new capital. Incumbent banks neither have the ability nor the incentive to free themselves from the burden of the status quo. They lack vision. Any attempt to innovate would meet with disapproval from the board. So it is up to us, the crypto-community, to use the aspiring blockchain technology to eliminate the faults of the old economy and to develop tools which make it simple, affordable and safe to access the instruments currently reserved for the financial class. It is up to us, to create a system that gives everyone access to real-world assets and to participate in profiting from global economic progress. No matter where and no matter if you have a bank account or not. It is up to us, to make trading, clearing and settlement with any kind of assets as easy and secure as transferring a bitcoin. If you are interested in shaping the future of investing with us: We are always looking for talented people to help us in making the crypto-world better, safer and more inclusive. Get in touch.
Brickblock's website : https://www.brickblock.io/
Brickblock ICO : https://platform.brickblock.io/
Brickblock Whitepapper : https://www.brickblock.io/Brickblock_General_Whitepaper.pdf
Brickblock Telegram : https://t.me/brickblock
Brickblock Twitter : https://twitter.com/brickblock_io