People across the globe invest in cryptocurrency so that they can make money out of money. Owing to the fact that investing in any form of funds can be really time consuming and something that does not ensure returns, not many people are comfortable with the investment world. Sceptics who refrain themselves from investing are bogged down by several factors like the risky nature of the money market, the constant fluctuations in an asset’s performance, security issues, etc.
A Groundbreaking Blockchain Mechanism Has Come To The Fore
With a mission to address and eliminate the aforementioned issues, CoTrader, a Tel-Aviv based start-up has ushered into a futuristic investment platform that utilizes blockchain technology. It is a decentralized platform and peer to peer in nature. This means that firstly, there won’t be middlemen to bite on or hack huge chunks of an investor’s hard-earned money or any other form of data. Additionally, the transactions will be completely autonomous, where the investors have the complete grip of their funds. Another selling point is the fact that the various funds that are undertaken are directed towards good projects which further makes the platform promising.
Every Investor is Backed by a Fund manager and Gets a Shot at Making it Big
Every investor who is referred to as a co-trader is a shareholder of a particular kind of fund and as and when that fund reaps certain amount of profits, the investors get their share of profit in the proportion of their investment in the fund. These funds are Ethereum based smart funds and execute the ERC20 token interface.
Assets Are Tokenized and Traded On The DEX
CoTrader is a platform to trade a variety of assets like cryptos, shares, derivatives, etc. As of now these assets are further tokenized in the form of Ethereum and ERC20 tokens, which are known as CoTrader tokens or COT. These are then exchanged by a fund manager on Decentralized Exchanges (DEX) which is further empowered by smart contracts.
Fund Managers Are Seasoned at Making the Funds Work Magic
Now to makethese fundsprovide profits, there are fund managers or traders who themselves have a proven track record or a ROI history of their own. The more they make a fund profitable, the more incentives, they’ll receive, though a certain minimal amount is taken up by the platform as well. To eliminate any possibility of exploitation, an investor can withdraw funds at any time, since the investor has the control of his own funds. Also, if at any point a fund manager tries to withdraw while the investor is exchanging assets, the API will block him with a series of locks.
As far as the progress of this unique platform is concerned, the CoTrader has already gone live on the MAINNET via ICO and the sale has started from September and will go on till November and even in the current bear market, the startup hopes to rope in 3 million in its initial sale.