ICO Review: Zichain

Zichain is a decentralized asset management network built on the blockchain. Their goal is to create an ecosystem that includes four main components, which are:

1. ZiChange,  a cryptocurrency exchange.
2. BAMP, a tool to create legal crypto funds.
3. THEINDEX.FUND, which enables you to buy one token which represents a diversified and adjustable portfolio of cryptocurrencies.
4. And CRYPTOEYE.COM, which is an information source for those trying to get into crypto.

Many of these tools are already in development, with some available for public use in Beta.

Zichain’s overarching mission is to make the world of decentralized asset management accessible to banks and other financial institutions. A promising component of the industry, Zichain is looking to raise a hard cap of $25 million by September 16th. Here’s what we think of their whitepaper:

The Basics

Zichain prides itself on the four components mentioned above as the primary functions for their ecosystem to operate. Here’s how they describe each:

BAMP

BAMP, or, Blockchain Asset Management Platform is a platform that foresees the requirements and provides a ready technical solution for creating and managing investment funds. It also offers the tools necessary to monitor the status of investment portfolios in an interface that matches conventional FinTech.

Their platform will have an automated guarantor between the investor and manager. Furthermore, the infrastructure of BAMP enables it to create a transparent Investment Policy Statement (IPS) on the blockchain. Structurally, BAMP will include all the tools that investors seek, including trade orders, back-office function, risk management, compliance, and accounting.

For Investors

1. Registration/KYC
2. Investment Strategy Selection, which enables an investor to view all available fund strategies and choose the most suitable of them by a variety of parameters.
3. Asset Storage, which is stored on multi-signature wallets. The access to portfolio management and private keys are distributed between the platform, fund manager, and investors. Investors and managers keys are password protect and not accessible to the platform.
4. Financial reporting, which can track the real-time performance of chosen strategies.
5. Distributions of airdrops and forks.
6. Redemptions, which is when investors automatically receive profits or their total investments at the moment defined in the investment policy statement.

For Fund Managers

1. Investment Strategy Creation, which creates an investment strategy with fixed parameters.
2. CryptoEYE Marketing Tools, which is where the manager places their strategy for others to see.
3. Trading Desk, which is an all-in-one trading platform with the ability to buy or sell cryptocurrencies 24/7.
4. Exchange Sub-Accounts, accounts that are available for transferring funds from Asset Storage for active trading/rebalancing.
5. Investment Policy Statement Supervision, which monitors the compliance of the investment policy statement and approves or rejects fund managers transactions accordingly.
6. Detailed Fund Reports, which report performance.
7. Fee Calculation, which is the platforms fee, as well as the management and performance fees for the fund manager.

Zichain has excellent visual descriptors of how the investment process works in their whitepaper listed above.

TheIndex.Fund

The goal of TheIndex.Fund, is to outperform actively managed strategies in the long term, providing a stable solution for those who want to invest in crypto while still aiming to have low volatility. Here’s what they list as their advantages:

1. A single entry point of the cryptocurrency market as one token represents the portfolio.
2. Variety of customized index funds.
3. Lower expenses.
4. Safe asset storage.

Furthermore, TheIndex.Fund will have a variety of coins, as well as calculation methodologies.

CryptoEYE

CryptoEYE looks to offer a multilingual information provider for the crypto ecosystem. They’re hoping to offer:

1. Easy understanding of individual cryptocurrencies and blockchain technologies.
2. A full picture of any product’s development cycle.
3. Understanding the interrelationships between technologies and apps.
4. Identifying factors that affect pricing.
5. Obtaining both brief and comprehensive information.
6. Tailored filters to obtain news and information about the crypto economy that is necessary to solve specific user tasks.
7. Obtaining the necessary analytics and forecasts for various sectors of the industry.

Furthermore, CryptoEYE also looks to implement a Crypto-wiki, relevant news, a marketplace for asset companies, and an investment calculator.

Our Thoughts

Zichain is a project that has quite a bit of hype behind it, and it’s easy to see why. With their core products already in development, there’s already relatively less risk to buying into the “if’s” of this project. Furthermore, they have an excellent understanding of the market, offering solutions that are tangible for bringing on new crypto users. With such a great foundation in place, there are only a few points of note to consider.

Although product-wise, Zichain has an excellent understanding of what to offer, the idea of looking at cryptocurrencies as commodities is something the average main street investor can be skeptical of. As there’s been a tremendous amount of volatility since the last bull run, getting those people on board might be a challenge (even with tools and products they’re familiar with). However, as crypto is mainly speculative overall, this is still a great project to buy into, especially if you believe in their core mission of becoming the platform for crypto asset management.