Mandarin Version:
New industries always arise with problem-solving, and since the rise of cryptocurrency copy-trading in 2020, there has been chaos similar to when ICOs, DeFi, or NFTs first emerged. The market requires a reliable validation mechanism to bridge the gap between new financial services and individuals, fostering a benign loop in the cryptocurrency investment ecosystem.
<aside> 🗼 Our vision is to build a validation system for Web3 investment, support better asset management services, and benefit everyone.
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Rating / Certification Products and Services Positioning Map
In traditional finance, we have professional credit rating agencies such as Standard & Poor's and Moody's to provide investors with judgment, and similar third-party agencies in other fields. As shown in the figure above, we place BlablaBlock in novel financial validation system through decentralized mechanisms, providing better investment decision references for cryptocurrency investors.
Investment is often a zero-sum game. In the open and unregulated cryptocurrency market, the mechanism of information asymmetry and imbalance puts ordinary investors at a disadvantage and incurs losses. Investment can be lost due to lack of skills and experience, but if they lose because of a defective system, this should not be the next generation financial service we need.
Do you believe what you see? 🤔
When making decisions on general issues, 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.
Another scenario, 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.
In the Concave Model, Diversification of Investment Positions is Often the Optimal Solution
In investment practice, risk diversification and balance are professional skills, and there is no perfect answer for everyone, just like whether centralization or decentralization is better, there is no definite answer. In general, finding two extreme balance points is often the most suitable, and this spirit is integrated into our development concept, defining a concave thinking model for investors, and letting them make the decision.