For the last few years, the cryptocurrency market has turned the investment system into a real mess. ICO projects are accessible to ordinary people, so anyone can be an investor, no matter their level of education or knowledge. It seems like nobody needs professionals these days. People can support projects directly now and that’s why more and more investors can’t see the point in working with funds.
However, the longer the crypto-industry exists, the more obvious the importance of mediators becomes. According to research conducted at Boston College, which analyzed 2,390 ICOs that ended before May 2018, around 56% of crypto-startups terminate the business after token distribution.
Which of the thousands of new blockchain startups will skyrocket and turn its investors to billionaires? Which projects are stronger than others and which are obvious scams? Examining all of them without assistance is becoming increasingly more difficult. It takes long hours and days of analyzing information about the projects and the market itself in order to find something potential. Something that’s really worth attention. Here is where the funds come in.
Let’s consider the market situation, using the example of a new investment fund called TheFund.io. This fund wins in the dispute between “investing without assistance vs. investing through funds” and, in general, TheFund.io has other strong advantages over other funds on the market.
As we mentioned above, before investors decide to support any project, they have to analyze the documents (White Paper, Technical Document, and Legal Opinion), the team members and the technology that the startup offers. It is important to evaluate the market’s indicators, exchange rate dynamics, the competitiveness of the projects. Moreover, ICO participants must do micro-investigations to see the interdependence between these factors and make conclusions. The problem is that most investors today simply don't have the qualifications to analyze everything thoroughly.
TheFund.io does all the research itself. The first stage of ICO-project revision is done by the artificial intelligence, Axon. It discards the scams and weak startups, and forms its own list of the most attractive projects for investors.
For the next selection stage, a team of experts, such as analysists, financiers, economists and those with extensive business experience will give recommendations about the projects and choose the best of the bunch.
The final decision about a project remains with the investors who supported TheFund.io during the ICO. As soon as the project earns more than 50% of the votes, it immediately gets financial support from the fund.
In this way, TheFund.io investors have the right to take part in the voting process, but the Axon AI and the team of experts will do the bulk of the investing work.
This is the most significant difference between choosing projects to invest in on your own and doing the same with funds. The latter are the professionals – they have the tools, experience and resources to conduct deep analyses of the market. If the investor is keen to make the right choice, to support a successful project, and to earn a real profit, he should entrust the work to the experts, like big “whales” do.
Actually, this is how every field works. We can always cook our dinner ourselves. However, we get an absolutely different result if we order it in a restaurant, unless we happen to be professionals, too.
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