Cryptocurrency analyst. Founder and editor at btcpeers.com
Since its origin quite long ago, asset management has been considered a smooth way to effortlessly kick your financial portfolio into gear using a professional’s help. To get it done, people prefer to hire professionals who possess a strong level of financial sensibility and constantly keep their hands on the pulse of the market. Whether you are driven by their competence or your own lack of free time, financial professionals can do all the grunt work for you and in the best cases, end up with returns which exceed initial expectations.
For all financial experts, it is crucial to keep up with global trends – it is common knowledge that concentrating on multiple trending industries is more expedient than focusing on longstanding ones from which you just end up squeezing out all their inherent advantages. Indeed, the activity of asset management faced a tipping point in 2017, when DeFi solutions came into popular use and nearly built a separate financial system all its own. Now, these projects lure us in with promises to bring better returns than most of the unicorns on the market. This has already made many VCs set their sights on them.
It’s worth noting that the field of asset management received a new lease on life thanks to the blockchain. From security to privacy, this technology has it all with regard to data transparency, unbreakability, traceability and non-alterability. Considering that all sensitive data is kept away from centralized governance, it is no surprise that blockchain gained significant traction by means of an increasing number of decentralized apps (dApps).
With a plethora of innovative solutions taking over the marketplace with each new day, DeFi asset management has been placed under special focus . While DeFi collectively has achieved a number just slightly short of $10 billion, apps like Set Protocol, Zapper, Zerion and MBIDEFI have taken their own leadership hotspots, mostly through their unique and rather competition-free propositions. Another thing that makes DeFi truly unique is its explosive popularity, having especially found its raison d’etre in the coronavirus pandemic.
Coronavirus has hit the global economy, inflicting collective damage that is hard to estimate as of yet. It is most likely comparable only the damage inflicted during World War II. Now, as urgently as never before, the markets are in need of new solutions that can change the global economic situation for the better. And MBIDEFI appears to have one right now – this DeFi solution has the long-term potential to benefit investors who get in early.
As a matter of fact, MBIDEFI was first to come up with a split stock model, which is mostly used by fast-growing companies to increase their quantity of stock and decrease the price per share. While it may not seem advantageous for day-traders, long-term investors may lavishly enjoy the doubled quantity of their assets and bet on a positive price increment in the longer term. With this in mind, the underlying mechanism – the Prediction Machine – always keeps an eye on making sure the number of supplied stocks does not overshadow demand.
I decided to ask a few questions to Jonathan Edward, the CEO of MBIDEFI, in an attempt to retrieve more information as to why, how, and when DeFi asset management became so popular, and what can be expected of it in the future, especially one so affected by the coronavirus.
Andrey Sergeenkov: Hi, nice to meet you. I would like to ask you a few questions about DeFi asset management and its prospects, as well as your platform, MBIDEFI. Are we ready to start? Can you tell me more about DeFi asset management as a field? What are its pitfalls and challenges?
Jonathan Edward: Well, this is a long story. At the beginning, we had many different kinds of obstacles. First, we developed the very first DeFi platform combining with Stock Split, so there were many new things to learn. Next, Covid-19 broke out all over the world and affected the global economy and financial markets. There were the challenges related to finance management, Cyber Security, attracting buyers, and so on. But we got through it together and successfully launched our site and our ecosystem in the next phase of the MBIDEFI project.
Andrey Sergeenkov: Now, what particularly interests me - how is it different in its strategies from asset management as performed by banks or brokers?
Jonathan Edward: As I know, most projects also face cash flow problems and financial pressure, like trust projects. But our project has a combination of Defi Smart Contract technology which is transparent and the host does not face the same liquidity pressure for investors. The MBIDEFI project has a solid foundation and a strong community with more than 18 million so far. Therefore, having this huge community is a testament to how well our products compete with others.
Andrey Sergeenkov: I understand that everything related to asset management rotates around risks and losses. That may be very acute in case of DeFi, where the field is still in its growth stage and involves a lot of risks mainly linked to scams and volatility. How do you manage to avoid this while building your portfolio with sound returns?
Jonathan Edward: Of course, every project will face many difficulties while being built, and we are no exception. When we built our project in the Defi platform, the hardest part was that the Defi trending financial models were gaining an edge and starting to bloom. A series of swap models emerged, attracting a large amount of financial flows. It was this that prompted us to create the first new trend in the world - Defi technology split shares.
Andrey Sergeenkov: With a highly volatile situation on global markets engineered by the coronavirus, how will this change the approach to asset management? What will be the key industries for the future, and how is DeFi poised among them?
Jonathan Edward: In the first half of 2020, the world was heavily affected by COVID-19, causing a great shock to global economic development. What is going against this trend is the cryptocurrency industry, especially Decentralized Finance (DeFi), which is continuing to innovate and surprisingly, grow, during the economic downturn. Decentralized Finance, abbreviated as DeFi, is defined as a type of "open finance" for an ecosystem of financial applications developed from decentralized technology through the Blockchain network system. And, 2020 can be considered a renaissance year for the DeFi field.
Andrey Sergeenkov: I’ve heard that about your stock-split model. Pretty exciting. You increase the number of shares while doubling their quantities in investors’ hands. But from the investors’ perspective, what can be the drawbacks of this stock split?
Jonathan Edward: Stock split activity is not a new concept. The division of shares/stock in enterprises is inherently very easy to understand. The nature of the capital of the business is unchanged, because it’s simply share division. Stocks do not bring any cash flow to the business. For the world’s first Defi stock-split platform - MBIDEFI, the split ratio is calculated based on many technical data coming from the Prediction Machine. For investors, the stock-split will double or even triple the amount of stocks that they have, so if the investor does not have a smart strategy and self-regulation, many opportunities can be wasted.
Andrey Sergeenkov: One question that is very acute for investors is - is there any price target for MCoin?
Jonathan Edward: MCoin is the only government token in our project - MBIDEFI, which is issued in a limited amount and used for many different purposes. Therefore, the price of MCoin has no limit. When we issue MCoin with a starting price of 1 USDT, but with the goal of listing MCoin in October 2020 on exchanges, one should expect the value of it to constantly increase. The intended goal is to gradually reach the point where MCoin isis made into a common transaction currency inMBIDEFI’s ecosystem.
Andrey Sergeenkov: I’m sure many of our readers will also be excited to know the answer to this question: Which asset is more preferential for long-term holding –DGRC or MCoin?
Jonathan Edward: Well, each of them has its own benefits for long-term holding. DGRC stock is a technology stock within MBIDEFI. Besides, a DGRC number, once transferred to the Ecosystem account, will allow customers to convert and use it on MBIDEFI's ecosystem including with the Gaming Platform, the E-commerce application M Wallet.
DAPP cross-chain exchange; Digital Bank; Blockchain Network - Mainnet 4.0 and so on. Through splitting rounds, DGRC will be split into more and more stocks and lead up to 4x the value of the initial investment package.
MCoin is the MBIDEFI platform’s own token that allows the holder to (1) participate in sharing the largest Dividends Pool of MBIDEFI; (2) experience the entire ecosystem of MBIDEFI; and (3) trade on centralized and decentralized exchanges to commercialize MCoin. Once MCoin is listed on an exchange, holders have the opportunity to freely exchange with those wishing to own this token with the goal of a minimum value growth 5 or 10 times.
So, both DGRC and MCoin bring advantages for holders of long-term investments.
Andrey Sergeenkov: I saw that investors can mine up to 30 MCoin through the mining program. How long will it take them to receive this promised return?
Jonathan Edward: When joining to invest in the DGRC split stock platform, the investor has an additional opportunity to join the MCoin mining package when investing and buying DGRC at $0.40. The maximum Investment package is $5,000, the mining equivalent to 30 MCoin. Investors/Buyers will receive this reward immediately in their wallets after purchasing the package.
Andrey Sergeenkov: Can you tell us more about the dividends pool for MCoin, and how investors can take advantage of it?
Jonathan Edward: As I mentioned above, MCoin holders share dividends from MBIDEFI's Dividends Pool with the host.
After a successful sale, DGRC will be divided into 3 parts, 10% of the transaction value will be publicly added to a Dividends Pool.
The dividends are distributed proportionally to the amount a user has deposited, so if a player has “X” % of all MCoin deposited on the platform they would earn a corresponding X % of that day’s distributed dividend.
Andrey Sergeenkov: MBIDEFI will enable investors to fund into a pool of companies, while also being able to double their stocks. In the future, it will bring them better returns – however, in the short-term, many day-traders are left at a disadvantage. Is there anything you can suggest to them?
Jonathan Edward: We have more than a decade of existence and growth as of today. With this model in the past, although there are many weaknesses, the results we’ve achieved are not small. So with this new one, which overcomes all the previous disadvantages, combined with Defi, we believe it will drive the rapid growth of the market in the near future and that it is the enduring game in Blockchain 3.0.
Andrey Sergeenkov: Can you elaborate a bit on the concept behind the Prediction Machine? How does it define a split ratio for each consequent round of stock division?
Jonathan Edward: We’ve developed a technology for financial analysis and cash flow called the Prediction Machine. It is based on trading volume, the average value of sell orders, the speed of execution of buy orders, and the growth in new members, etc. It uses these to analyze and evaluate market growth, thereby giving a scientific outcome for a stock split for the next round. This ensures the supply will always be less than the demand.
Andrey Sergeenkov: DeFi has currently stopped at a mark close to $10 billion in total value locked, and all this happened in 2020 alone. From your angle, is there even more growth ahead, or will DeFi’s stellar figures eventually come back down to earth?
Jonathan Edward: We can see the staggering growth of the cryptocurrency market in the past 3 years, especially in the first 6 months of 2020, strongly attracting world financial flows.
According to my own analysis and assessment, the cryptocurrency market in general, and the Defi trend in particular, will grow even stronger for at least the next 2 years.
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