It’s fair to say that the crypto market is now starting to mature. The volatility that once dominated this asset class has started to settle – and institutions are now making moves into this space.
In this blog post, I want to highlight what we expect to see in the crypto space over the next 12-months – and how investment managers can stand to benefit.
As major players continue to move into the crypto space, the trend of “professionalisation” will continue in banking and regulation.
Here at IFINA, we’ve seen this trend for ourselves as more investment fund managers look to take advantage of our Crypto Fund Platform. For a cost of just $12,000 USD, we can setup your very own dedicated crypto fund.
We expect to see further technological breakthroughs and solutions in the crypto space. These innovations will create new services, creating a thriving crypto ecosystem.
One such example of this is CipherTrace. This is a tool that lets us risk assess the transaction history of crypto coins for AML purposes. Here’s how it works:
Step One: Whether you want to invest in cryptos, or run a crypto investment fund – you can now risk assess the transaction history of crypto coins.
Step Two: CipherTrace algorithms calculate risk levels based on suspicious addresses and wallets. CipherTrace also profiles hundreds of global exchanges, ATMs, mixers, money laundering systems, gambling services and known criminal addresses to score transactions and assess risk.
Step Three: CipherTrace then assigns risk levels to transactions based on activity related to suspicious addresses and wallets.
Transactions with no apparent risk are flagged to proceed. Transactions with a moderate risk trigger an automated deep search for compliance reporting. Finally, transactions that are high risk should be rejected.
Hedging On Mass Utility
Investment fund managers will continue to try and find the first crypto that’s primed for mass utility. In other words – they want to find the first crypto that will be used as a means of payment by a significant amount of people.
It’s still not certain what that crypto will be. But we think Facebook’s Libra is a digital coin that many investment fund managers will be monitoring with interest.
Do you want to launch your own crypto fund in 2020? We should have a Skype call. Just email me and we can book a time that’s convenient to you.