One of the things 2017 will be remembered for is the increasing prominence of cryptocurrencies in financial circles.
Bitcoin topped $1,000 on the first day of trading this year and could hit $20,000 before the apple drops in Times Square. ETH has grown by 8,000 per cent so far.
While such growth has drawn legions of investors, what will keep them involved is a fully functioning market that allows participants to properly diversify and to hedge risk.
Providing those opportunities is the vision of Olympus Labs. Olympus Labs is a groundbreaking financial ecosystem defining the protocol for cryptocurrency-based financial products. Its ecosystem provides investors with a comprehensive financial marketplace filled with products, services, and applications that serve their investment needs. Olympus Labs provides the tools for investors to construct a well-diversified portfolio, to hedge their downside risk, and to make positive returns in all market conditions.
Olympus Labs is in the process of its ICO. Learn more here.
The executive director of enterprise partnerships, Bharat Vishnubhotia, joined the Olympus Labs team in early 2017 after meeting founder and CEO Kai Chen late in 2016.
“We instantly connected,” Mr. Vishnubhotia recalled. “We discussed how there’s a huge hole in the market for investors who want to diversify and hedge risk.”
In a market with strong volatility and no diversity, the current mantra of “buy, hold, and pray” does little to encourage market growth. The key to unlocking that growth, which will, in turn, attract more participants and create a healthier climate, is an ecosystem providing financial products backed by cryptocurrency, Mr. Vishnubhotia said.
And the growth potential is tantalizing. While the cryptocurrency market cap has passed $250 billion, global stock markets are worth a combined $73 trillion and the derivatives markets $544 trillion.
The catalyst is providing a variety of opportunities for investors to hedge risk, and to offer them the opportunity to earn positive returns in all market conditions. Imagine the opportunity to short the market when you sense Bitcoin’s price is going to drop. Perhaps you want to buy into an ICO but want to keep your Bitcoin. How about borrowing Bitcoin by using yours as collateral, or lending your Bitcoin to others and earn interest income while having the borrower’s Bitcoin as collateral?
There are options for all risk tolerances, from fixed income products and market indices to options and futures, Mr. Vishnubhotia said.
Take a situation common to other markets and imagine it with cryptocurrency. The possibilities are many.
Every one of those possibilities will also be more efficient transactions, making Olympus a true blockchain finance platform and one that simply moves financial transactions onto the blockchain, Mr. Vishnubhotia explained. They will feature smart contract functionality that eliminates manual verification and levels of back-office paperwork. Those smart contracts are traded on an open market so there is no underwriting or counterparty risk. Taken together, the savings of both time and costs are significant.
The Olympus marketplace will feature crypto-based derivative products built both by Olympus and third-party developers along with D-Apps from Santiment, Kyber, Cindicator, Spectre, Shapeshift and others, Mr. Vishnubhotia said. Investors will enjoy a user-friendly interface, the convenience of a one-stop shop for portfolio diversification and seamless wallet payment and integration.
Product creators will be drawn to an environment which allows them to fulfil their vision, Mr. Vishnubhotia said. Olympus’ open API will let creators build their own options that meet the risk tolerances of their clientele. They can access a development toolkit and benefit from a targeted marketplace and established user group. The most promising opportunities will be eligible for early-stage financing or possible acquisition.
“All tools are in one place to give them more confidence.”
Twenty-eighteen will be a pivotal year as Olympus reveals the next phases in its development plan. Beginning in January they will unveil a minimum viable product before following up with the financial protocol in March. In the second half of the year, their blockchain will debut and migration will occur. Late in the year and in 2019 homomorphic encryption and a zero-knowledge proof will be announced while the entire ecosystem will become live.
Bankless Times was paid less than $500 in United States currency by Olmypus Labs for preparation and publication of this article.