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The vision of BlablaBlock is to create a trustworthy validation method, launch cryptocurrency funds management services and ecosystems, and strengthen the financial stability of cryptocurrency.
When making decisions on any issue, the implementation of a middle option is often the worst solution.
For example, when a country is faced with a decision to invade either country A or country B, opting for a middle ground solution of invading both simultaneously can often lead to failure. By dividing its military forces between two fronts, the country could end up weakening its overall military strength and failing to achieve its objectives in either country.For example, in the early days of the COVID outbreak, the decision was whether to implement a 100% travel ban (which would damage the economy but control the pandemic) or to loosen border restrictions (which would allow the pandemic to spread but maintain the economy). If the middle option of “50% travel ban” was chosen, not only would the pandemic be difficult to control, but the economy would also not be maintained.
However, when trading, the situation is completely opposite. In a scenario where the success rate is not 100%, it is not possible to choose all long or all short positions for every trade. Instead, most of the time, small position testing, moderate positions for riding waves or neutral options such as empty hands are chosen. Alternatively, under different trading strategies, different views on long and short for the same financial product can be combined to form an investment portfolio.
These non-extreme options often enable investors to control risks and achieve more stable returns, which can be mathematically represented as a concave thinking pattern curve.
However, it is very difficult to have a concave thinking and find the best investment position. It often requires multiple research, diversifying financial products, setting up multiple trading strategies, etc. For the general public, there is simply no time and energy to deal with it, which is why many investment assistance services have emerged. These services can be broadly divided into two categories: asset management and community trading.
Asset management services (such as Blockfolio and Genesis… etc.) provide fixed or non-fixed financial products and customers choose the desired product and deposit money to purchase. This type of service is very convenient, but very opaque. Users are hard to know who manages the assets, where the assets are stored, investment portfolio status… etc. And because of the lack of regulation, the quality of cryptocurrency fund management services is uneven, resulting in losing money or even embezzlement.
Social trading services (such as Traderwagon, Shrimpy, and Bitget… etc.) allow each investor to become a manager on their platform, and customers can choose a manager based on their trading performance and follow their trades. Social trading is highly transparent, with each manager publicly disclosing their portfolio and performance. However, because there are thousands or even millions of social trading managers, managers will do everything possible to rank on the leaderboard: multiple accounts, high leverage hedging, never stop loss… etc. Customers need to spend a lot of time researching to choose a good manager and also need to learn how to set parameters to follow trades.
Why is there no problem of manager proliferation in traditional finance? The main reason is that the government has restrictions on establishing funds and becoming a manager.
- 1.Only by passing government exams can one qualify as a manager.
- 2.Establishing an asset management company, such as a mutual fund or investment advisory firm, requires a license and capital.
- 3.Become a fund manager by joining a company and receiving approval from the boss.
These validation mechanisms, although they result in fewer choices of managers, also make it more secure and the profits are relatively stable. However, regulation and legislation in the cryptocurrency field are limited, and it’s unclear when the government will think of verifying the managers.
The managers of BlablaBlock DAO are validated by the DAO members, and the managers are replaced based on their performance every two weeks. Investors no longer need to spend a lot of time researching managers (participating in manager validation can earn additional rewards).