Blackmoon Crypto, a fin-tech blockchain-based company that raised $30 million during its ICO on Sept. 12, has retained global law firm Allen & Overy LLP to help establish the legal infrastructure that will serve as the backbone for Blackmoon’s crypto and traditional funds.
Blackmoon’s platform represents a one-stop solution for asset managers by allowing them to legally create and manage investment funds.
These funds reap the benefits of both crypto and fiat investments: the crypto space provides transparency and enhanced liquidity, while the fiat side offers diversification and access to the multi-trillion traditional assets market. Allen & Overy, which is the ninth-largest global law firm and has 46 offices in 31 countries around the world, will provide the Blackmoon team with expertise regarding the integration of the cryptosphere and the financial world.
From Jul. 1-Sept. 25, 51 ICOs launched but failed to meet their own objectives. That equals a 59 per cent failure rate for all ICOs during that time period, where the blame fell mostly on the leadership.
Blackmoon hopes to put an end to these schemes and false promises by establishing trust in the fintech blockchain industry. It builds this trust by embracing the Ethereum blockchain, which establishes a contractual relationship between different parties, based on democratization, decentralization and trust. Transparency means investment funds will no longer be labelled as “black boxes” for investors, with reports of intentional schemes, unknown motives, and other potential problems.
The partnership with Allen & Overy will allow for the time to a tokenized investment fund, to comply with securities regulations and to minimize counterparty risks. The law firm will work on multiple aspects such as fund incorporation and structure, reducing settlement times and improving term performance.
Blackmoon aspires to create a new and obtainable ledger for investors in order to negate the problems associated with traditional funds. In the Blackmoon economy, investment managers would be able to run a crypto fund without having to go through the hassle of creating a legal infrastructure.
This effectively eliminates the barriers for a crypto fund creation, an aspect that is an important milestone in bridging the fiat and crypto economies. Crypto funds are more cost-efficient than the traditional way of investment, due to low infrastructure and setup costs.
Blackmoon has already raised $30 million after holding a successful ICO for its issued token, the BMC. BMC holders who enrol as continuous contributors will receive an immediate revenue stream from the first fund created on the Blackmoon Crypto platform.
Blackmoon will establish different funds in collaboration with external asset managers and by this, will expose investors to both the broader crypto market and traditional funding. Additionally, Blackmoon has a proven track record of solid, double-digit returns in euros to its investors.
“Setting up the proper investment structure is a difficult and costly endeavour. Not all tokenized funds set up a proper structure, which leads to greater regulatory risk for investors,” Oleg Seydak, CEO of Blackmoon Financial Group, explained.
“Now is the time to introduce the industry standard for setting up tokenized investment vehicles that can attract investments from private individuals and institutional investors of any kind. That’s what the Blackmoon Crypto platform does; it pays attention to regulatory risk and bridges the gap between the fiat and crypto worlds.”