SINGAPORE, Feb. 18, 2019 /PRNewswire/ —
Blackmoon Financial Group, a blockchain Financial Service and Fintech firm, and FintechSauce Investment Advisory, a group of industry professionals whose goal is to build a more efficient, transparent, and liquid capital market to power the innovation economy, today announced that they have formed a strategic partnership to create a branded Exchange Traded Index (ETx).
The new relationship between Blackmoon and FintechSauce will enable the two financial services firms to work very closely together to create a showcase of backtested ETx’s that track FintechSauce’s offerings.
Solving the problem of liquidity
Knowing that one can liquidate his or her investment without an impact to price, is a key risk-metric to any and all investment decisions. An STO that supports a thriving and liquid market, immediately increases its perceived value, even if its product, bottom-line or management is not as high a quality as its competitors. The liquidity of the marketplace defines the risk for an investor and the success of the issuer. Without the ease of execution and liquidity, any STO will have limited success, if any at all.
Introducing Blackmoon’s Exchange Traded Indexes (ETx)
Blockchain technology may be a better alternative to raise capital from investors. However, price discovery and trading liquidity also require the inclusion of speculators. The ETx that Blackmoon issues on behalf of its partners’ brands incentivise traders and speculators to take the risk in the market, by offering them a fungible financial product to arbitrage for profit – further adding bids and offers to an STO that would otherwise not exist – effectively creating a balanced and stable price.
“In order to succeed in almost any project, you need reliable partners. FintechSauce has been working closely with our clients to be the best financial advisors for them. And now, we are excited about finding the right partner for our business, Blackmoon. With their help, we are creating investment products that will bring financial success to people that believe in us.” said Anastasia Nizhegorodtceva, Associate Director of FintechSauce
“Blackmoon and FintechSauce share a vision and it’s because of this that we are pleased to have discovered such an incredible organization to associate with. We are eager to release the FintechSauce ETx products as soon as possible to offer this amazing investment opportunity to eligible investors globally,” said Moshe Joshua, Chief Product Officer at Blackmoon
The strategic partnership with FintechSauce is one of many that Blackmoon intends to form over the coming months. Their ultimate goal will be to have an entire suite of innovative ETx’s to offer their own clients as well as those of their partners.