🎓The Challenges of Crypto Funds

The emerging market of crypto funds is still facing a number of challenges. First, the valuation system of crypto assets is defective. Since there is no recognized valuation system for crypto assets, this has led to speculative markets and huge price fluctuations. Fund managers are facing with more difficult investment and risk control decisions. At the same time, regulatory and institutional investors have become more cautious and prudent. All of this has hindered the further growth of the industry.

Second, there is no unified global regulatory system. Although some countries have issued fund management licenses for crypto asset management, or have incorporated crypto asset management into their existing fund management systems, there are significant regulatory differences between countries. This is at odds with the inherently borderless and globalized nature of crypto assets. Crypto asset management has to face the impact of different regulatory regimes and policies from different countries, and the compliance cost is extremely high if you want to do business globally and grow stronger. In particular, after the collapse of Terra/UST stablecoin, the regulation has increased its concern on stablecoin. Given that there is no established global regulatory system for stablecoins, crypto capital management has to face the huge risk brought by the uncertainty of stablecoin regulation.

Third, there is a lack of mature crypto management systems. The traditional fund management system has been developed for decades, and many mature fund management system service providers have been developed to provide a perfect standardized management system. Crypto management is just emerging and is still in a rapid evolutionary stage, and traditional system service providers have not yet ventured into the field in a big way.

Overall, Vitatoken is committed to the development of crypto funds, building a win-win platform for fund managers, clients and us. History does not repeat itself, but it is always surprisingly similar. The evolution of crypto assets has followed the path of traditional financial products. With the rise of crypto capital management, crypto finance, represented by Bitcoin, will be further integrated into the existing financial system. One day in the near future, when people talk about Bitcoin, it will be the same as talking about gold or real estate investment, and only then will crypto assets be embraced by traditional finance and find their true home.