It’s time to change the game rules, the crypto investment market needs a safeguard, says Elchin Suleimanov, the Syndiqate Founder
According to various estimates, the global crypto market has 300 million users who have invested or are investing in crypto projects and crypto coins. The question comes up – how did they choose and decide on the investment items? For many private investors and evolving crypto enthusiasts the participation of a large fund or well-known industry advisor or team member in the project appears the main trigger to invest. At the same time, such presence of loud names does not mean a guarantee of project success and the protection for invested funds.
Private investors, who are not fully versed in project business models and technological products, rely on the expertise of large market participants, like funds, in the hope that those probably are best to know what they are doing. Because there is perception that professional players normally have everything checked by their solid teams and invest a lot of money.
Nevertheless, my gut feeling and observations suggest that the largest investment funds in the world, putting huge sums in various projects, fully equipped with professional staffs, invest solely based on the opinions or personal interests of top management who promotes only specific projects. Not because these projects are promising and proven from all sides, but for the reason of someone’s benefits.
It seems that in their calculations and due diligence outcomes, as well as other expensive forecasts and analyzes, the assumptions are sometimes not sufficiently substantiated, and the business model has not been properly tested against the realities of the market.
Otherwise, these funds would not have lost multi-million dollar amounts from investing in selected projects. And those who believed in the brand name of the investor would not have lost their money along with those locomotives.
I often heard from various crypto market professionals, crypto investors and consultants actively involved in the development of the industry, the following advice for all fresh crypto enthusiasts and private investors: “You should invest in cryptocurrencies as much as you can afford to lose.”
In my opinion, all these large funds invest according to the same principle – as much as they can spare to lose. It doesn’t hurt because, among other reasons, these are not their own funds, but the wealth of shareholders. The work on initial checks and other project analyses is usually just part of the formal process. In the end one can simply comment that detailed due diligence was in place, it’s just because of the market that turns out to be bearish and crypto winter has come.
Conversely, I have a high degree of confidence that all this negative scenario could have been avoided. Huge investment losses could evidence of inefficiencies in model used by investment companies.
“The first rule of business is to protect your investment.” This thesis, declared in the banker’s etiquette of 1775, will not lose its relevance as long as there is a concept of private property and investment.
When investing in crypto projects, the one should firstly think of means to protect investment and not lose it. Thereby, the advice to invest as much as you don’t mind losing sounds highly unconvincing.
We developed a unique insurance business model by combining three types of insurance facilities into a single product, and transferred it on the blockchain using modern NFT, web3 and smart contracts technologies. Our project is a revolution in the crypto world, via which we will be able to amend the game rules and protect participants from investment value losses.
In the first release, we will offer private investors and novice crypto enthusiasts two products that will allow them to save their investments in the event of a scam, the onset of a bear market or the so-called crypto winter.
As part of the Syndiqate second development stage we will offer the similar products for the corporate sector.
In the global crypto-insurance practice there are no similar products for both retail investors and investment companies.
Currently we are at the very start of our project, when we face the market issues that private investors and funds have lost substantial money due to lack of protection for their past investments, and thus are now cautious to invest in new projects. If such protection was available earlier, the investment fears wouldn’t be the case.
For this reason, many promising and interesting projects have frozen their launches due to inability to raise sufficient funds for implementation. We got through this difficult period of the market with the first stage of fundraising and attracted almost half a million dollars of private investment. We are now in the second fundraising round and count on market support to launch the world’s first global product aimed at safeguarding your crypto investments in the future.
Syndiqate works on a straightforward and effective concept that has repeatedly proven to protect the assets in the “classic” insurance world. And with it making an entry into the crypto industry, touted to be the riskiest of all, things sure look bright for investors. So, if you haven’t already, go ahead and protect your crypto assets against both scams and market volatility!
To find out more about Syndiqate and identify if your investments or project can be protected, visit the official website: https://syndiqate.io/
Also, follow Syndiqate on all available social channels to stay updated with the recent developments and token sales.
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