Digital currency markets managed breaking

This article from the The chain (WeChat ID: iqklbs), Author: Frank, Joe, editor: Pan Yubo, the daily planet Odaily authorized reprint.

The importance of financial market assets managed for a standardized is self-evident, but in the encryption of the currency market, most people are not fully aware of the importance and significance of hosting.

Recently, in an internal shared chain catcher, AlphaCoin Fund founder of Frank and executive director Joe said, why money managed encryption market has not been developed, and the whole field of development and trend, the chain will be documented, hoping to enlighten you.

01 managed breaking

Straight to the point, now money market chaos encryption emerge in an endless stream, most essential reason behind the difficulties of the admission of new funds, we believe that the market is the lack of mutual trust, LP fund investors panic panic run away, run away the project, the project side panic run away the exchange market into a vicious spiral.

The first half of this year, we actually fly 110 thousand kilometers, visited several projects and institutions at home and abroad, trying to crack the encryption of money market development difficulties, now we believe that the solution lies in trust, we believe that trust can effectively solve the problem of trust. Even it is large-scale institutional money market admission encryption basic facilities and conditions.

What is the first hosting?

Trust refers to the asset custody business (traditional finance), is received by customers, the safe custody of client assets, exercising oversight responsibilities, and provides investment management related services; investors and borrowers in the custodian accounts, trust itself is not involved in the flow of funds in the transaction process, only in accordance with the instructions to do the transfer of funds, in addition to ensure the normal circulation of funds, also need to monitor the whereabouts and use of funds.

The investors can see the flow of funds state. So you can have a good mechanism to solve the problem of trust, and this mechanism has very strong credibility. Once the project is out of things or have a major exception, hosting services can be the first time the money is frozen, timely help investors stop.

Trust has three characteristics:

1) hosting business needs and license compliance;

2) managed to audit;

3) managed firms need professional participation.

In early February 24, 1998, approved by the China Securities Regulatory Commission, the people’s Bank of Chinese Chinese ICBC, becoming the first domestic securities investment fund custodian bank, according to the “People’s Republic of China securities investment fund law”, “securities investment fund management approach” and other laws and regulations given responsibilities and regulatory requirements for the fund management company and many asset management institutions safe, efficient and professional hosting service. So for a standardized financial market, trust trust and risk control mechanism is perfect, the encryption of money market to grow, trust is the only way which must be passed.

Why in the past encrypted currency market, did not see the hosting discussions related to entrepreneurial projects and more? At present, the market in the vast majority of people, and not fully aware of the importance and significance of hosting, clearly using the traditional financial logic of professional talents not much encryption in the money market, which is the primary reason. It is difficult to see the existing block chain project was initiated by the mainstream financial institutions from Ping an information management, China Merchants Bank and other people.

Secondly, even if there are people aware of the importance and significance of hosting, not necessarily their ability and energy to do, after all, trust is a long way to go. And with a considerable challenge, but also to the whole industry, regulation and other aspects of cooperation.

But this does not mean that we will stand by now. The recent encryption money market performance is very bad, many people may find 2019 or 2020 will be good, this judgment may be the basis behind bitcoin production cycle. No credit is a good mechanism that funding is difficult to come in, especially in the traditional financial institutions, and the premise is to have them in custody to ensure the safety of their own funds, not to enter the market on a frequent money was swept away by the things.

The traditional financial industry is the need to take legal compliance channels, if they are to bear the legal risk, not rashly admission. The encryption money market to the traditional financial market in line, fusion is undoubtedly very important trend. The development of construction market in the managed hosting, based on trust mechanism, supervision mechanism and management mechanism, will eventually reduce and the trust mechanism to ascend the overall market risk.

So we judge, the next 5 to 10 years, the market will take a lot out of the hosting company, after all, no supervision of the financial activities is often the beginning of the disaster.

02 node development

In the past the encryption money market hot, not too many people care about hosting business. As an investment institution, we still feel very direct, before a block chain project financing, if investors can’t spot under the decision, the project will soon say share has not, because the various investment institutions are robbing case, too much hot money, exit channel is also very smooth, as long as the most shots are earned.

But the brutal development period has passed, from the big data this year, many institutions have slowed the pace of investment, the market must return to normal.

We do believe that the hosting time point to now.

On the one hand, the market trend began to appear. Asset custody as part of encryption currency market indispensable, although it is early, but has begun to get the attention of Wall Street. “Finance” has pointed out that reports: “with the crypto currency the arrival of a bear market, two market is also a major reshuffle, quantitative funds are entering the period of death; the index fund and asset management and other financial services, has become a new field of Wall Street chase. “

As the report says, we also see the encrypted currency industry enterprise in action: such as its Bakkt platform hosting service Digital Asset Warehouse; Coinbase and ETC managed services cooperation; Goldman also actively managed strategic layout, invested in BitGo; BitGo and Coinbase have successively won regulatory approval in the United States, provided by encryption asset custody service supervision for institutional clients.

On the other hand, the winter, most investment institutions and projects to start hosting welcome. Now even the high quality of the project has financial money, unless the project is very outstanding, so the financing environment is actually considerable pressure for entrepreneurs.

Token Fund, had been in a disordered state, there are a lot of things of the fund industry cycle problem because of the loss of money, but is likely to be considered LP fund investors set rat eats its own funds, so in the case of the industry downturn, some funds to witness to the Qingming accept the trust funds.

Trust is not a new concept for encryption currency industry do not much, but it is based on the traditional financial sector. For the traditional financial institutions trust is gained, trust mechanism and risk control is very perfect in the specification of the traditional financial market. The encryption is the traditional currency managed hosting business model fusion block chain technology, to solve the crisis of confidence, so that more institutions to participate in the development of encryption currency.

So, as we have said, now the encrypted digital currency markets are in a panic. But here in the panic of two, a negative energy panic, is also worried that they would take the money go, one is the positive energy of the panic, is afraid of the wrong opportunity, it will stimulate the industry insight, we study.

In fact, a healthy market, should not let panic panic, but should arouse hunger for the chance to inspire everyone to study and found that the competition of personal vision and ability, but also the only way to let more persons is no longer a block chain is pale.

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