Caspian: An Institutionalized Management Solution for Diversified Crypto Exchanges

smaeunabs (62)in #caspian • 6 years ago (edited)

The crypto space needs an institutionalization to better manage crypto assets that could bring different crypto exchanges together.

The context of this article can be summarized as follows:

Overview
The need for an institutionalized Crypto-asset management platform
What is Caspian?
Caspian’s key features and benefits
Caspian’s Reliability, Security, and Support attributes
Summary

Part 1: Overview

It is undeniable how the traditional financial institutions are keeping an eye on cryptocurrencies despite the silent phases the crypto market is facing over the past months. The great potential of cryptocurrencies seemed to continually cultivate the curiosity of these financial bodies especially when most of the crypto coins have reached their ATH last December 2017.

_{Cryptocurrency market capitalization analysis}

In spite of the skepticisms the cryptocurrency market receives, it has sustained a market capitalization of around $200 billion at this time of writing. In fact, if we are to rank the total money invested in cryptos, it will lie within the first top 25 spots on American stock exchanges.

According to one of the Forbes’ articles, institutional investors could flock to crypto investing in 2019.. This only means that traditional investors, traders and fund managers are looking at crypto assets as a positive investment vehicle to invest with – resulting to another massive crypto adoption we yet to see.

Such speculation may bring great hopes to current crypto investors, but this still leaves a great question whether or not the crypto space is ready to welcome these institutional traders.

Part 2: The need for an institutionalized Crypto-asset management platform

How many times have you signed up for a crypto exchange platform and eventually began investing in crypto coins in multiple platforms?

How many times have you experienced inconvenience in managing multiple crypto exchange accounts to fully realize your trades?

Do you even care about the historical data of your trades?

For traditional investors, traders and fund managers, ease of management and traceability are huge factors to consider alongside an effective customer support, risk management capabilities, ease of execution, effective position management, and legal compliance – which most crypto exchanges lack.

Hence, the crypto space needs an institutionalization to better manage crypto assets that could bring different crypto exchanges together.

And that’s what Caspian Platform is all about – creating a platform that could bring the diversified crypto platform exchanges in a single-user interface where essential finance tools are being integrated.

Part 3: What is Caspian?

Caspian is the very first crypto-asset management which aims to provide a wholesome crypto-trading experience to its users.

Imagine a platform that unifies the major crypto exchange platforms that you are currently using. All the trades and analysis will be executed in this unified system – allowing you to save time from accessing individual crypto exchanges just to conduct a trade or verify the completion of your orders.

Part 4: Caspian’s key features and benefits

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_{Caspian's Whitepaper |page 14|}

The Caspian platform as a unified crypto-trading system can be seen as the project’s highlight, but what underlies within its core are the things making this crypto-innovation a very promising one.

The key features and benefits of Caspian can be summarized in three core components: (1) Execution, (2) Position and Risk Management, and (3) Compliance and Reporting.

4.1 Execution

This feature focuses on Caspian platform’s ability to bring different crypto exchange platforms together using OEMS (Order and Execution Management System).

Using the OEMS attribute, the user will have huge control about executing orders, viewing bid and ask prices and monitoring the orders being made to different crypto exchanges – all in one place.

Along OEMS, SOR or Smart Order Router is integrated to execute a slicing of orders from a parent or bulk order of a certain cryptocurrency. These sliced orders are also called “child orders” – allowing the trader to diversify his investment across several exchanges in order to have a control over liquidity and slippage.

SOR allows the trader to catch cryptos at better prices, liquidity, and commission since SOR’s smart attribute automatically executes orders once the desired criteria set by the trader is being achieved.

4.2 Position and Risk Management

If you are trading across different crypto exchanges, it will be nearly impossible for you to keep a precise historical data with the trades you’ve made. In fact, most crypto traders nowadays often overlook the importance of keeping records of their trades for what they care the most is whether they profited or not.

However, in cases for traditional and institutional traders and fund managers, having to know the historical data is as important as closing a good trade. This does not only allow them to perform reconciliations and rebalancing but also to provide a transparent recordkeeping for audit purposes.

4.3 Compliance and Reporting

The compliance engine allows Caspian users to be more mindful in executing their trades while covering of pre-trades’ tolerable limits and post-trades’ compliance. Execution of orders may be delayed or withheld unless the preset compliance is being met.

Caspian sends alerts for traders in order to be mindful of the three levels of limits: (1) warning limits, (2) approval limits, and (3) absolute limits. As the level of limits advances, the control of the user to override constraints becomes harder to attain. This way, the traders and fund managers will be enforced to execute orders within the parameters for compliance and investment diversification.

Alongside the compliance feature, Caspian provides a comprehensive reporting feature that translates trade files, snapshot reports, position data, audit reports, and compliance reports into graphical contents which can be externally-obtained by its users.

Part 5: Caspian’s Reliability, Security, and Support attributes

Overall, the Caspian’s services can be summarized through this infographic from their brochure:

With the promising services the Caspian platform offers, it’s no wonder how traditional and institutional traders, fund managers, big-time and even seasonal crypto-traders will flock its system. Given the huge possibility of increased transactions, could Caspian really handle the huge amounts of trades and orders without compromising the system’s performance and scalability?

Caspian is designed to handle up to 50,000 orders and 400,000 executions per day per user, with a throughput of over 2,500 orders per second. |Caspian’s Whitepaper, page 15|

Caspian itself was designed to handle a large volume of data. Still, one should bear in mind that Caspian wasn’t designed for high-frequency trading, as what the whitepaper states. However, the user can assure that he is given enough transaction limits, thus ensuring that the users can execute the tolerable number of orders and executions per day as indicated above.

How about Caspian’s Reliability, Security, and Support attributes?

Now that we’ve fully understood how Caspian works and the services it could offer to its users, let’s talk about the things that matter the most. Reliability. Security. Support. Admit it or not, bringing all of your crypto exchange data into one interface is really a huge leap to take. A single point of failure could mean all of your crypto-assets will vanish in thin air.

How can someone ensure that Caspian will never get hold any of your private information that could exploit your crypto resources then?

Before we go in details, let us first discuss the credibility of the team behind the Caspian platform.

Caspian is a fusion of well-known financial firms and technology companies. It is a joint venture of Kenetic, a blockchain platform, and Tora, a financial technology company to hedge funds.

If you'll watch the interview video of the Caspian's team above, you'll come into conclusion that these guys really know what they are doing.

Over a decade of mastering their crafts in their respective fields will tell us how they've managed to surpass the twists and turns of their businesses and how they're ready to collaborate traditional finance and blockchain technology together.

That alone will give investors the confidence to entrust their crypto-assets to the Caspian platform. But of course, as investors, we still have to delve deeper as to how Caspian will instill such confidence.

So how will the Caspian team do it?

By offering a backup cloud in case of platform major failure that will cause the site unreachable. The recovery will be constantly updated ready to be activated at any time.
Safety control mechanisms and “health checks” will be implemented on a regular basis. This is to provide a constant prevention for possible breach or major attacks that may happen.
For the users’ security for signing in, app access shall be limited to verified IPs only. Two-factor authentication will also be enforced to add an additional layer of security in every transaction made.
A support team can be contacted should there be issues to be sorted in their system. The resources of both Tora and Kenetic will be maximized to ensure that the users’ concerns will be duly addressed and will be promptly fixed.

The above points are just some highlights of how the Caspian team gives an optimum amount of security to their users. You can read more of it in their whitepaper.

Part 6: Summary

As an investor in both traditional and digital assets, I have never seen a crypto-platform that bridges both financial sectors in one unified platform. Users can now enjoy trading crypto-assets with the confidence of complying with the traditional financial tools and parameters while leveraging the earning potential in the crypto-space.

More Information and about Caspian:

Disclaimer: This is not a financial advice. Readers are encouraged to conduct their own research with due diligence into the company, product or service mentioned in the content above.

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