Quick Summary77 Investors read this
BITRUST provides peer-to-peer insurance for people who invest in bitcoin and altcoins. It provides an opportunity for crypto investors to hedge the financial risks associated with highly volatile cryptocurrency investments.
The ICO for BITRUST's token, BTF, takes place from April 2, 2018, to May 31, 2018.
The Problem and Solution
One fact that crypto investors learn early on is that bitcoin and altcoin investing involve a significant amount of market volatility and risk. The value of well-established digital currencies like bitcoin and Ether can fluctuate widely from day to day or month to month. At the same time, other digital currencies can sometimes lose almost all of their value soon after they are launched.
BITRUST provides a peer-to-peer insurance solution that allows crypto investors to manage these risks. The platform enables people who are investing in bitcoin or altcoins to connect with people who are willing to insure their investment for a set period of time.
If the price of a currency drops within that period of time, the insurer will pay the investor to make up for his losses. If the price stays stable or increases, the insurer receives a premium.
The details of insurance policies can be negotiated between the two parties before they enter into an agreement. For example, the insurer could choose to insure against price drops up to a specified amount, and the investor could limit the amount he or she is willing to pay in premiums to the insurer.
Because insurers can set limits on how much they are willing to pay to offset an unsuccessful investment, BITRUST in most cases will not allow investors to invest risk-free. That would be unrealistic. The platform can, however, help investors to reduce risks.
At the same time, BITRUST promises some interesting opportunities for people who are willing to act as insurers. If you believe that the price of a certain cryptocurrency is likely to increase, but most people think it will decrease, you could use BITRUST to generate profits.
Agreements between investors and insurers are handled via smart contracts in order to mitigate the risk of fraud. BITRUST's smart contracts run on the Ethereum blockchain.
For now, BITRUST caters to individual crypto investors, rather than institutions. It says that its goal is to provide a risk management solution for people whose monthly trading volume averages less than $100,000.
BITRUST's executive team includes:
Alex Duhamel, CEO. Duhamel has a background in finance.
Sergejs Silins, CTO. Silins's background is in software development.
Both executives are new to the blockchain space, with no apparent prior experience. Duhamel is on the young side, having received a bachelor's degree only six years ago; Silins appears to have more experience.
BITRUST will allow insurers and investors to complete transactions using several cryptocurrencies, according to its whitepaper, although the project has not yet specified which ones will be supported.
However, the platform will encourage the use of its native tokens, BTF, for transactions. It will do this by charging an extra low transaction fee of only 0.1 percent for transactions that use BTF tokens instead of a different currency.
Thus, while BTF tokens are not required on the platform, their use is rewarded in ways that could likely increase the value of BTF tokens over time.
BITRUST does not appear to have any code available on GitHub or in another public location. That may be because the project does not yet have much code to show; its roadmap says that it will not have an MVP until fall 2018, and its target launch date for the platform is January 2019, so the platform may still be in an early stage of development.
BITRUST stands out as a unique solution for a real problem. Lots of crypto investors -- especially the small-scale, personal investors to whom BITRUST caters -- are worried about losing money from investing in bitcoin and altcoins. While BITRUST won't eliminate risk entirely, it could help newer investors to gain confidence and limit potential losses.
It is worth noting that BITRUST's potential for long-term growth may be limited (although it exists). More experienced crypto investors, as well as those dealing in large volumes, are less likely to be attracted to BITRUST. These investors know the risks of crypto investing better, and they are likelier to be able to tolerate losses. The appeal of BITRUST may also decrease over time if crypto investing becomes less risky than it currently is, which is likely if coins like bitcoin stabilize.
Plus, as conventional financial institutions integrate with the crypto world to make lower-risk crypto investing possible, BITRUST may also lose value. For example, if it becomes possible in the future to invest in bitcoin CDs with a guaranteed return and essentially no risk, neophyte crypto investors would have less reason to turn to a solution like BITRUST.
Until BITRUST has more code to show, it's hard to know exactly how well its platform will work. The lack of a working product is a big reason to hesitate about BITRUST investment at this point.
However, if you believe in the BITRUST vision and want to invest early-on, now is the time to do so by taking advantage of the BTF ICO. If you're a less adventurous investor, you might want to hold off until fall 2018 and see if BITRUST meets its promise of having a working product to demonstrate at that time.
Want to know more? Visit our initial coin offerings page to learn more about upcoming ICOs.
Raised Amount Unreported: contact us to update this information