On Monday, February 26, the first decentralized asset management marketplace, Cryptopus, opened its ITO. This Initial Token Offering will help to create an insurance fund for the project and facilitate the further development.Cryptopus’ mission is to bring value to people that do not have sufficient knowledge and experience in cryptocurrency trading. Cryptocurrencies trading is a new concept, and the industry is growing at an exponential rate. There is a classical information asymmetry problem : newbies get lost while experienced people dominate the market.
Cryptopus’ team has experienced information asymmetry problem closely. The founder, Alexandr Romanov, describes his first trading experience as a failure. Due to a lack of experience and knowledge of the market the trade went unsuccessful. It was the time when he realized: regular people need a tool to help them learn about the market and start making profits off cryptocurrency. This idea gave birth to the Cryptopus project — a blockchain brokerage marketplace. The platform has two basic categories of users: investors, who join the market and gain profit from letting professionals trade for them, and brokers/traders with a personal cryptocurrency portfolio and a history of trades. Cryptopus aims to provide investors with a place to establish reliable relationships with professional traders in a system where parties can trust each other.
The platform offers a simple step-by-step process:1) Traders sign up to the platform and upload their prior trading history. The system gives it an assessment and places the trader onto a rating board.
2) Investors sign up to the platform and use trader ratings to choose someone to work with.
3) Once a client has picked a trader and decided to invest, the two parties’ agreement is sealed with smart contracts, which aim to prevent all types of fraud.
This entire process is facilitated and managed by Cryptopus platform and algorithms. The rating system will encourage traders to be responsible: their rating, in essence, determines whether or not they’ll be able to find new clients. Developers note that they relied on the experience of specialists working in the conservative stock market who deal with pattern analysis in trading. Using that knowledge, Cryptopus’s developers are building a system which will analyze the traders’ trading patterns on the cryptomarket. There is also functionality of reviewing each trader’s history and track their activities in real-time. This will bring necessary transparency to the investment process.
The investments on the platform are made with ETH currency. If a trader doesn’t perform well, their rating decreases — and since the system is based on Ethereum blockchain, they won’t be able to rejoin with the same data and will have to build their reputation from the ground up. As for the traders, the blockchain marketplace, by way of attracting additional clients, gives them an opportunity to receive more investments and expand their portfolios. Using this opportunity and “balancing out” through the different cryptocurrencies in their portfolio, they may become less dependent on situations where, for example, major players start destabilizing a particular currency.
Cryptopus’s team has a simple business plan. The platform will take a small percentage from all successful trades. If there is no return on investment, no fees are retained. At the end of February, Cryptopus Team launched their ICO for the purpose of forming the insurance fund. So far the team has reached a rating of 4.7 stars (out of 5) on ICOBench platform and is getting ready to release its alpha version of the platform.
You can find out more at cryptopus and bitcointalk
