Crypto News & ICO Reviews
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One of the most notable aspects of the interest in cryptocurrencies is how much it has capture the imagination of the public. A few years ago (and to a certain extent still today) there was widespread lack of knowledge on the part of most people as to what exactly blockchain and cryptocurrency is. It is a complex phenomenon, and it is still hard to trade coins due to the beginner learning curve in getting wallets, trades, and transfers set up. But despite this there has been an incredible interest in the likes of Bitcoin in mainstream and social media, in part driven by the huge returns that crypto investments have given.
So we are now in a situation where the interest of the population on the whole far outstrips the opportunities for investing. Crypto trading is difficult and it is risky. A new blockchain platform is looking to make crypto speculation less risky but also more fun. FundFantasy is using the wildly successful Fantasy sports model applied to crypto portfolios, giving users the shot at large lottery wins without the risk of huge losses.
A gap in the market
As the team outlined in their whitepaper, for many people crypto investing falls between professional investing and recreational gambling. The problem with this is that new investors have to deal with the difficulties of conventional investing (in terms of getting set up at a brokerage/exchange) and also the risks (in terms of shady brokers advising weak investment vehicles as they often do to novices, as well as the chance of total portfolio ruin), while also on the other hand being exposed to the problems of gambling. So the novice investor is disadvantaged from both perspectives in conventional crypto investing.
What FundFantasy want to create is a way for people to avail of the chance to win high returns, with an easier user experience and a limit of the pitfalls and associated risks of investing. Their solution is to create a competitive platform where users stand to win a pot of the amount paid in by the other competitors, similar to a Fantasy Football league. They have built “a natural solution to well-known problems in both the online trading and the online gaming/gambling markets. When the age-old sports betting industry was revolutionized by the rise of Daily Fantasy Sports, people were reminded of the fact that good ideas can change the world. This is precisely what FundFantasy intends to do to the online trading market… FundFantasy allows both professional and amateur economic analysts to win lottery-sized prizes without jeopardizing large and indeterminate amounts of money.”
But the possibilities of blockchain technology allow new possibilities that go beyond conventional “Fantasy” type platforms. FundFantasy will use ledger technology to bring anew level of security to the process: “These user-submitted portfolios (of crypto assets) are sorted and ranked as soon as the contest ends according to their rate-of-return, as calculated on the basis of price quotes from established and well known financial data APIs. Portfolios are encrypted from the moment they are submitted by the user and are only published once the contest starts – this way we solve the problem of asymmetric information which may result when fantasy employees have access to the portfolios submitted by users; such a situation can be exploited by management or employees gaining an unfair advantage.”
It will be interesting to see if the platform can get a lot of interest from more serious traders as well as the more casual investor. It seems logical that even serious investors might be interested in a daily “flutter” on a portfolio competition as well as their more serious portfolio management. Regardless, the team have recorded high interest for their pilot platform and are looking to build on this momentum.
The FundFantasy token sale starts on February 25th.
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