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RE: ICO Presale Alert: Blackmoon Coin is Live

in #cryptocurrency3 years ago

Looks like they've got a good team and reasonable value proposition. But their embrace of "qualified investor" standards for their US plan is problematic, as is the fee structure they envision being adopted by fund managers, as these things together provide a ready-made mechanism for screwing small investors.

So the whole thing carries too much of the legacy economy's inequitable legacy for my liking.

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Why do you think this mechanism allows to screw small investors? Can you expand on that?

The term "qualified investors" means wealthy investors in US legal jargon. By specifying the intention to allow only "qualified investors" in the US to participate in this company's more lucrative activities, anyone worth less than millions is automatically excluded. This is in keeping with US securities regs which are designed to prevent average people from accessing the same good opportunities that wealthy people can access. It also creates the opportunity for wealthy market-access-gatekeepers to grow their own profits (by per-transaction fee churning, for example) even when a fund's percentage yield - which little investors are paid out of - ends up being relatively low or even going negative.

In other words, it looks like business as usual in the traditional financial industry, expanding into the only segment of the economy that I as a little fish can currently access affordably, in a manner that is designed to limit this access. And I find that problematic.

I think it provides a bridge. Their product is targeted to brokers as well as investors. US regulations are causing the lag in American adoption of the project.

You're absolutely right. And the business model seems sound as far as what will make for a profitable company. My issue is with the end goal of bringing the legacy economy's business-as-usual into the new crypto economy in this manner.

Could just be a method for smooth transition

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