Genesis Vision Review: Decentralized Investment Management
If you have been following the CMC rankings recently, you will no doubt have come across a coin called Genesis Vision (GVT).
This is actually an interesting use of blockchain technology, giving access to a decentralized network where investors, exchanges, merchants and investment professionals can come together in a trustless environment.
However, can this really be achieved?
In this complete review of Genesis Vision, we will take a deeper look into the project. We will analyse the underlying technology, platform functionality and team experience. We will also take a look at the pros / cons and broader GVT prospects.
Problem Addressed by Genesis Vision
The primary problems being addressed are those related to trust, information and honesty in stock advising and administration. Even though the financial industry has grown to offer advisors and administrators of all types when it comes to investing, there remains a basic issue of trust, honesty and full information when dealing with stock brokers.
In many instances the brokers also have ties to exchanges or other agents, which is not fully disclosed. And it is often difficult, if not impossible, to find a way to measure performance accurately in this arena. All of these problems make it difficult for the individual investor, but they also make it difficult on the stock broker, who often struggles to attract new investors and additional funds under management.
Managers & Investors tied to brokers with a lack of transparency to returns. Source: Whitepaper
The entire issue is aggravated by a lack of straightforward honesty in many dealing with representatives. The financial industry has developed methods to influence and manipulate data in such a way that investors have no sure way to determine how information might have been twisted, or what data is an accurate portrayal of reality. And commissions and fee structures are often presented in such a way that investors are confused on how they will be charged.
Furthermore, the traditional investing world has other risks such as Ponzi schemes and other fraud. These have created additional regulations that make it more difficult and expensive for the honest advisors to maintain a legal status. This is a problem for everyone involved in the investment community.
Genesis Vision Solutions
Genesis Vision will begin with the immutability granted by blockchain technology, and from there has several other features that will help resolve the current issues with traditional investment management. These will provide openness, transparency, and trust to the platform and its users.
The design of Genesis Vision will benefit anyone involved in investment management. Users will be able to connect with a wide range of advisors, traders and investment managers, giving them a broad range of available options.
Benefits of Genesis Vision for Participants. Source: Genesis Vision Blog
Rather than being constrained by their geography, users will be able to choose from investment managers across the entire world. And prior to making a decision on which manager will be best suited to their investing needs and style they will be able to view in depth trading statistics and history.
Because everything is kept transparent on the blockchain there are no trust issues, and no questions regarding the distribution of profits or charges for fees and commissions. Plus investors will be able to invest in either fiat or cryptocurrencies. Because cryptocurrencies are allowed there will be additional liquidity added to the platform.
On the investment management side, the advisor can brand their own cryptocurrency, which will allow them to take advantage of unlimited scaling for the investing strategies and tactics. And they can take advantage of investments from the Genesis Vision fund itself. Brokers should see increased participation from clients and an increase in trading volumes.
If anyone is concerned about the platform itself they can examine it fully as the software is all open source and free to examine or use. If you wanted to dig into the underlying code you could take a look at their GitHub for example.
How Will Managers Tokens Work?
On the Genesis Vision platform each manager will have their own unique cryptocurency, and the amount issued will be dependent on their own trading success. This means managers who are more successful will get more tokens, and they will be able to attract more capital to invest.
Overview of an Internal Exchange for the managers own investment Tokens
So, success breeds success. The platform will include an internal exchange that allows investors to exchange tokens at any time. In this way they can move between managers to create their own investment strategies.
The process is completely transparent, and when an investor believes in the trading strategy of a given manager they simply buy that manager’s token on the internal exchange. The trading process for the manager remains the same, and the trader can remain with the manager or sell their token at any time to take profits or cut losses.
Available Investment Strategies
Because you can tailor your own investment strategy and work with experienced traders, the Genesis Vision platform appeals to investors of all experience levels. Simply research the available investment managers, choose those that suit your needs, and head over to the internal exchange to purchase their tokens.
Some of the Managers Currently Trading on Genesis Vision Platform. Image Source
It’s as simple as that. And if you like you can look into the Genesis Vision investment portfolios, which use artificial intelligence to generate specific investment strategies.
Genesis Vision Team
Genesis vision was launched in November of 2016 when the current CEO (Ruslan Kamenskiy) and his co-founder (Dmitry Nazarov) won the HackRussia hackathon. The Genesis Vision project got the nomination in the “Finance and Blockchain” category of the competition.
Ruslan is a software developer who has seven years of experience and has developed a trading system for the Saint Petersburg stock exchange. He also implemented HFT algorithmic strategies for a hedge fund manager. Dmitry has a similar background and has worked with a number of different companies including a brokerage company and a stock exchange. He has also developed for the International Atomic Energy Agency.
From Left: Ruslan Kamenskiy (CEO), Dmitry Nazarov (COO) and Konstantin Gladych (Advisor). Source: Linkedin, Twitter
Genesis vision also has a number of advisers who have experience in online trading technology, investment management and cryptocurrencies. For example, they have Konstantin Gladych who is the CEO and co-founder of Changelly advising them.
GVT Token Overview
The GVT is the native token for the Genesis Vision platform and will be used for transactions on the platform. GVT will be used for purchasing manager tokens, and for distributing profits. GVT has had a very limited number of tokens issued, and the price of GVT will be determined by future demand. During the Genesis Vision ICO each GVT was valued at $1 and there were only 3,327,482 GVT sold out of a total 4,436,643 GVT tokens in total.
The team had 11% of those tokens reserved for them and frozen for 12 months. An additional 5% of the total tokens are reserved for the Genesis Vision Fund, and those tokens were also frozen until the release of the main net platform. Once the platform is released those tokens will be used to attract managers and to stimulate trading activity. In addition, 33,274 tokens were given away as part of various bounty programs.
The Genesis Vision team believes that demand for the GVT will grow based on investor demand and an active investing base. That belief will soon be tested for real as the Genesis Vision investor platform was launched on November 1, 2018 and trading will become active on November 15, 2018.
Oddly enough, the price of GVT has been falling in the week or so leading up to the launch of the main net, but it is still at $9.45 as of November 5, for a nearly 10x return from the ICO price. The token hit an all-time high above $40 in January 2018 and nearly reached that level again in March 2018.
It fell for the next 5 months, but recovered in the 6-8 weeks leading up to the main net launch, which is a definite sign of strength considering most of the cryptocurrency markets were in a bear market during that time.
You need GVT to participate in the platform, and the largest trading volume for the token is on Binance, where you can purchase it with BTC or ETH. The only fiat currency that can be used to purchase GVT is the Turkish Lira through the Ovis exchange platform. There is also a small amount of trading volume on Hotbit and KuCoin.
Genesis Vision is going to be a welcome addition to the investment management space, thanks to its decentralized nature and transparency. While it does face some existing competition from the likes of eToro, the fact that Genesis Vision is blockchain based should work in its favor as it will restore trust to the managed investment landscape.
This is affair and balanced platform that benefits all the participants, not just the investment managers. Users will see great benefits from their ability to tailor an investment strategy based on the proven results of the managers on the platform.
One concern going forward lies in how global governments will end up regulating blockchain assets and the use of blockchains in investing. That could have a significant impact on the ability of Genesis Vision to operate in some jurisdictions. It’s a future concern, but one that does need to be considered.
As for the GVT token, it has already shown strength in the face of a broad based bear market in cryptocurrencies, and if the Genesis Vision platform works as expected we should see massive growth in the value of these tokens due to the limited nature of their supply.
Featured Image via Genesis Vision & Fotolia
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