Sergey Vasin on Blackmoon Crypto's investment vehicles

0:01I'm Ashton Addison from avenge and audio for investmentpitch media and FinTech news network and today on blockchain interviews we have sergey vassan the chief operating officer of black moon bridging the gap between fiat and crypto black moon offers making investments easily available for everybody and easy to do welcome to the show sergey great to have

0:21you here hi austin thank you for having me you're very welcome could you please start out with a little bit about black moon and what do you guys really mean by making investments and investment vehicles easily available for everybody sure but before we start let me make a short disclaimer cause i have to so nothing that we are going to talk about today is a solicitation or an offer to

0:50buy or sell at any token product or a service from any company and this is not an investment legal or a tax advice in fact this interview is information purposes only and with that mind I'm more than happy to describe our mission statement because making innovative investments easily tradable for all is the mission statement of our company we can start one-by-one taking every single

1:20word out of this investment statement mission statements are so innovative meaning that we focus only on those investments that were previously unaccessible for the general audience of their investors meaning that we're not doing something that people could invest in elsewhere we want to be unique and we want to be innovative meaning that we

1:48create that opportunities that virtually never existed before and we apply certain technology to make these investments for instance tradable what will get their investments obviously so we're a fin tech company and we focus only on investments or and we're not doing and if it else by easily we mean that we strive to provide our customers with the

2:18best new acts so that they enjoy using our platform and it is easily accessible for them by tradable you know liquidity is very important for the investment decision-making and more often than never it's one of the major points that investors consider before they make an investment and there is quite a number of investment opportunities out there

2:47that are frankly speaking illiquid and we are trying to address that issue on our platform by introducing certain liquidity measures be it a secondary market or buy backed by our company depending on the jurisdiction of the user we're not trying to cherry-pick only those investments that are liquid we're doing our best to make an

3:16investment liquid and tradable and by for all we mean that we pay a lot of attention to local regulations and make a lot of effort and diligent work to ensure that we can offer our services in a different jurisdictions to different people but in compliance with the local requirements that's great thank you so

3:49much for that brilliant explanation and I'm really excited to hear about the investment vehicles that you guys already have I know you guys release the platform earlier this year and you guys have a set of three is it different vehicle investments that you're already released to the people on your platform so if you would give a little bit of background with what vehicles people are

4:10already using on blackman sure so currently we have 10 investment opportunities available on our platform and some tokens are and will not available in certain jurisdictions but from the timeline perspective we started with the solutions that provide exposure to their equity markets roll out first to acid tokens providing these exposure then we became the very first company in

4:39the world to issue a token a link to the IPO performance we released a Sharma token because this company made an IPO well this summer I don't remember the date and it was very well accepted by the audience next up we launched our set of crypto strategies we rolled out first three of them next top we offered our

5:11investors an opportunity to get exposure to their sorry one of the leading hedge funds in the United States of America investing in alternative lending and recently these Tuesday we released a new set of the crypto strategies and other three tokens that provide people with exposure to automatic automated trading that's great well sounds like you guys

5:41have quite a large variety of investment vehicles already I did hear something that you guys were coming out with these new three platforms and they sound like the most innovative ones that you have coming out yet so if you could dive a little bit deeper into these ones that just came out in August I believe they've just started trading so what are these new investment vehicles that you

6:03guys have released we first time we released the crypto strategies in August indeed and another set we issued this week so now we have six of them that provide exposure to algorithm make crypto currency trading most importantly all these strategies are fully automated so they are not prone to any cognitive biases of a human trader I live alone

6:32they don't sleep they don't eat they don't have bad days so they're crypto strategies that we launched recently are as follows the first one is top 10 market cap mantra strategy simply put this is the strategy that invests in top 10 crypto currencies with the largest market capitalization it measures the this capitalization over the last three months and weighed these

7:01tokens in the portfolio accordingly this is a very cost efficient way for people to diversify their investment over their route to space another one is top 20 price mean reversion strategy with trend protection yeah sounds a little bit long but it has a couple of very nice and interesting features in it top 20 means that it invests in top 20 coins by market

7:31capitalization but the weights in this strategy are defined by mean reversion fear rev3 claims that some tokens that used to underperform are more likely to outperform in future and otherwise the token that outperformed recently are most likely to underperform going

7:59forward so we overweight those tokens that are more likely to outperform and trend protection is a very important feature these days meet the bearish or marketing the cryptocurrencies that means that the strategy automatically goes to cash when the market goes down and allocates back to crypto when the market goes up and it may it does so dynamically meaning if the market is

8:26kinda bearish but the signal is not that strong it allocates part of the portfolio to cash and keeps part of the portfolio in Kryptos and another way around and last but not least is one day most volatile strategy again with a trend protection this strategy invests in 10 most volatile cryptocurrencies over the previous 24 hours weighted by their volatility they and as this strategy has

8:58trend protection it again dynamically allocates to and from our cash subject to the cryptocurrency market performance that's great I think it's very smart to invest in a vehicle that has trend protection that's really interesting to hear because I know that everyone says it's easy to make money when you're investing in a bull market especially in crypto in 2017 they could really just

9:25put their money in anything but to be also making money in the bear market is where the real players you know make their money so it's interesting to see that trend protection introduced in there so how did you guys come up with these different in vehicles these these three new vehicles that you created and also did you test the strategies and

9:45what have the results been of that sure so how did we came up with strategies we'll have a very great team led by our chief product officer marshal Joshua who has extensive experience in hedge funds and algorithmic trading like 30 years if I'm not mistaken and we have our own in-house data science team of dedicated data scientists who well do big data but

10:17the actual are actually capable of working with the large sets of data and analyzing the market order buy and sell orders and placing their own bits according to the current environment on different exchanges and first of all we when we design these strategies we did a very diligent we did it in a very

10:48diligent way we first came up with the idea of the crypto strategy we tested whether this idea has economic rationale behind it so that we're not code by overfeeding strategies which are which is a very bad bias for deep learning and other ways to create algorithm trading so we start always

11:15start with an idea you should have economic underpinning and then we proceed to execution when we rolled out our first strategies it really took us quite a while to develop all the necessary infrastructure so that the crypto strategies are traded on different make their trades on different exchanges they automatically monitor the risk they monitor their performance they

11:43monitor that the crypto currency exchanges they work consistently because they are API sometimes are not replying in a consistent manner so we monitor it and we created all the infrastructure for their creation and redemption of these tokens using our platform and I believe currently were the only platform capable of instant creation and redemption of these type of assets

12:12speaking over the testing you know in fact testing is a very difficult thing to do in the crypto space because data is a very rare and actually premium commodity in our market so we are collecting our data from the if I'm not mistaken beginning of April 2013 so that our strategies are not over fit to the

12:42boom market they are especially trained to work in current environment that's great and how easy is it to have people invest into these vehicles it's very easy well first of all people should come to our platform and complete the k1c procedure and I believe that we are taking the lead in the market in know your customer because we don't only ask

13:11for the identification or the proof of residence but we also measure whether this person has enough experience in investing because we believe that sooner or later the regulator's would require that so we are taken and proactive approach that once the person is verified in our platform investing into crypto strategies is very simple so the person could use a Buy button to buy

13:40this token with his or her crypto and this token would be issued like simultaneously and the redemption is done also simultaneously the time is defined by the load of the tearoom network so these tokens are immediately liquid and investors could enter and exit their positions whenever they want to easy

14:09awesome so it looks like we're running out of time here but it sounds like it's really easy to start trading on the platform what is the best way for the community to get involved learn more and you know get onto Blackman what's the easiest way to find out more oh there is this way to find out more is to join our telegram chat black on platform or come

14:33to our website it has a lot of information about the asset tokens it has tutorial videos and on top of that we maintain the blog on medium where we post articles with research on our recently introduced project products and the market conditions and so on and so forth so people would be able to find answers virtually to any question they would have we're doing our best to be as

15:03transparent as possible on the pages of the crypto strategies people could see their past performance their back tested performance they could see performance in different currencies and on top of that they could see the composition of the strategies so that we're transparent and people could actually want to tour that yes it really invested Tom twenty currencies for instance or

15:30its invest in the most volatile and it really goes to cash when the market goes down that's great all valuable resources thank you so much sir Gaveston chief operating officer of Black Moon platform there's a pleasure speaking with you today I'm looking forward to following up with how these vehicles are doing in the coming months and how the community

15:49has grown and let's follow up in the coming months and thank you so much thank you so much Ashlyn the pleasure was all mine