International investment management company Blackmon Financial Group upcoming ICO which wants to be the one stop shop for legal compliant tokenized investment funds. The project aims to distribute BMC tokens, which will allow holders to have access to fiat funds, crypto funds, as well as a blend of both based on the multiple fund options they plan to offer.
Experienced and approved investment managers will be able to quickly and efficiently create funds as well as have access to the most accurate and up to date legal and technological frameworks. Blackmoon Crypto will accomplish this by developing automated investment interfaces and top quality asset management tools, all the while putting a strong focus on regulatory compliance.
With partners such as Deloitte, Flint Capital and crypto platform waves, there is plenty to like about the project and it seems to have a very bright future.
ICO Investment Goals
- Hard Cap- $30 Million
"BMC price is nominated in USD and specified as follows:
- At pre-order and during the first 48 hours of the Distribution Period the price of one BMC token will be $1.00.
- From the 3rd to 7th day (both including) of the Distribution the price of one BMC will be $1.05.
- After the 7th day of the Distribution until the Distribution End Date the price of one BMC will be $1.10."
- 50% to Public
- 30% Company's Reserves
- 20% Team and Advisers
BlackMoon Crypto ICO Details:
ICO Start – September 12, 2017 at 1:00 PM UTC
ICO End - October 10th, 2017 or until ICO cap is reached ($30,000,000)
Platform- ERC20 (Ethereum)
Supply- Amount of distribution sold during period X 2
Distribution- BMC’s will be received 7 days after end of distribution period.
Type of funds accepted – ETH, LTC, BTC
Pre-Mine – None
ICO Price – 1 BMC = $1 USD
BlackMoon Financial group was founded in 2012 by Oleg Sedak and Ilya Perekopsky who teamed up to identify opportunities for automation among lenders starting in Russia and throughout the world. With over $3.5 million in venture capital funding, as well as a lending platform operating in nine countries that exceeds $100 MM in deal volume, BlackMoon aims to expand its platform into the cryptocurrency world of tokenized investment funds.
Using market intelligence, third- party monitoring, verification and transparency, BlackMoon Financial Group has over twenty employees and continues to focus on the alternative lending industry and how to pair that with classic diversified investments.
The BlackMoon Crypto Platform will expand on this vision bridging the gap between the Fiat and Crypto worlds. They hope to be the industry standard with a hard, focused stance on compliance that would be able to attract private and institutional investors young and old.
Oleg and Ilya are not strangers to founding companies as Oleg was the Co-founder of Flint Capital, a venture capital firm that focuses on alternative lending in Europe and Ilya is one of the founders of VK.com, which is one of the most popular social network sites in the world per Alexa.
BlackMoon Crypto Platform
The BlackMoon Crypto platform is a combination of analytical management interfaces, fund issuer admin tools, legal frameworks as well as the two-different sets of tokens (BMC and Fund Tokens) that will provide the health and growth of the BlackMoon ecosystem all while utilizing the Ethereum Blockchain.
A management company will be responsible for compliance, licensing, partnering with banks as well as legal / financial advisors with the key being successful recruitment of Investment Advisors whose success will bring more users to the platform.
Acquirers of the coin will have the option to become Continuous Contributors who may choose a variety of roles within the BlackMoon economy such as promoter, analyst, legal advisor, auditor etc.
Each role with have a different minimum requirement of BMC’s one must contribute and hold in special depository wallets. Holding the BMC’s on this wallet instead of on the exchange will be mandatory to receive their share of proceeds in proportion to the amount of BMC’s deposited by the Continuous Contributor.
Each Investment Advisor will set up a different fund based on their niche / management company recommendation. BlackMoon aims to have multiple fund options within the next few years and plans to acquire its broker dealer license in 2018.
The first fund expected to occur during 2018 is a High Yield Fixed Fiat Income fund focused on investment in financial technology companies. The first crypto related fund is the ICO and Currency Fund I with a projected monthly distribution based on the distribution criteria below.
Continuous contributors will receive contributions from multiple outlets in the network. These include:
Structure and promotion fee – One-time of 0-10%. On average 2.5%
Maintenance fee- One-time equal to .5%
Transaction fee- fee upon transferring fund tokens from one wallet to another in amount of .25%
Investment Advisors will be rewarded for their efforts as well. These will include:
Management fee- average 2% per annum
Performance fee- Based on distribution schedule (monthly, quarterly, yearly) and will average 20% from the fund’s performance.
The platform will be geared toward two types of users. The first will be the fund issuer aka the investment advisor who determines the structure of the fund as well as income distribution and redemption methods. The second would be the token holder who is looking to analyze and pick investment opportunities from the list of options available on the BlackMoon Crypto Platform.
Fund administrators / advisors can take advantage of the fund issuer admin tool which will pick and order the legal structure of the fund, determine the structure of the smart contract for the specific fund token, track investment results and upload / comply with any regulatory standards.
Token holders can utilize the analytical and management interface to allocate capital to desired assets, track performance, participate in fund buyback and get investment results.
You can see an early mockup of the tool in their demo below:
BMC and Fund Specific Tokens
There will be two types of tokens used throughout the BMC ecosystem. The first will be BMC’s which will be minted by BlackMoon Financial Group in September 2017. This distribution will happen only one time and there is no pre-mine of any coins before distribution. BMC’s will be able to be distributed at any time and will fluctuate in value based on the value of the BlackMoon Crypto Platform.
Additionally, there will be fund specific tokens created by the Investment Advisors which will be specific to the fund invested in. This combination of tokens and tools allows the investment process to remain flexible to accommodate the diversity of funds with various investment mandates and structures.
Fund token investors can expect to receive income from the platform in a 25%, 25%, 50% breakdown. Twenty Five percent of proceeds come distribution time are reinvested in the specific fund. Twenty Five percent of proceeds are paid to the investment advisor in the form of a performance fee. Fifty Percent of the proceeds are distributed amount fund’s token holders via a buy-back process. Bought out tokens are burned decreasing the amount of fund specific tokens.
It is important to note that based on this distribution of profit, these tokens will likely pass the Howey Test and BlackMoon Financial group is treating them in such a manner that they will anticipate these being labeled securities. Any investment needs to consider this, as future legislation can change the legality and scope of the platform. An example of this is China’s ban on ICO’s in September of 2017.
The BlackMoon Financial Group has large aspirations for the BlackMoon Crypto Platform. Their roadmap includes a focus on technology development as well as legal and licensing development. To accomplish their technological goals, they aim to improve the infrastructure for fund administration, reporting, analysis and integrate seamlessly with banks and brokers.
While on the legal side, BlackMoon will focus on setting up a fully transparent, auditable environment and be fully compliant with regulations. To make sure they stay compliant, they will put an emphasis on licensing and structuring for selling tokens in the United States as the biggest financial market in the world. That focus started becoming a reality when they partnered up with Deloitte, who is a leading audit, consulting, and tax service who provides services for up to 80 percent of the fortune 500.
ICO and Crowdfunding
The launch of the BlackMoon Crypto BMC token will occur on September 12, 2017 at 1:00 PM UTC. Investors can participate by sending ETH or other major cryptocurrencies such as LTC and BTC to the designated address.
The distribution will go on for 30 days or until the $30 million-dollar cap limit is reached and the tokens will be transferrable seven days after the distribution period.
The total number of BMC to be issued will be calculated by the amount of BMC sold during the distribution period by two. This will be the only time BMC tokens will be issued and the breakdown of funds after the minting of tokens is as follows.
Twenty percent of BMC’s will be allocated to the founding BlackMoon Crypto team and locked in a smart contract with a twenty-four-month vesting period. These BMC’s won’t be immediately tradeable.
Thirty percent of BMC’s will be allocated to company reserve and locked up for thirty-six months. This reserve is a necessary foundation for the future development of the platform as this will be the key use of funds for the downside protection clause of the ICO sale.
The downside protection clause will be reserved for a guaranteed buyback of BMC tokens at 80% of the distribution rate nominated in USD for twenty-four months. After that the funds are returned to the company.
At pre-order and during first 48 hours tokens can be bought for $1.00 per BMC. This rate will eventually go up to $1.10 per BMC after the seventh day.
Leadership and Advisors
The leadership team at BlackMoon Crypto is no ordinary group of investors. With multiple years of international venture capital and investment management experience they have the funding, network and technical capabilities to accomplish a project of this magnitude. It also doesn’t hurt to have Ilya’s VK.com social network and partnerships with fellow cryptocurrency platforms Waves and Bancor.
- Oleg Seydak - CEO & Co-Founder
- Ilya Perekopsky - Co-Founder
- Ilya Remizov - CTO
- Alexander Rugaev - Chief Crypto Officer
- Sergey Vasin - Investment Director
- Felipe Lema Vorobey - PR & Marketing Director
In addition, two well-known players are supporting the ICO. One of the first is Nicolas Tranter, founding director Bibbsworth. Bibbsworth advises institutional asset managers in the UK and Europe. Another key advisor is John Hyman, partner at Ondra Partners, a leading corporate finance advisory boutique.
As of September 9th 2017
- Twitter: 1,600 Followers
- Reddit: 274 Subscribers
- Slack: 1061 Register Users
- GitHub: No public repositories
The overall vibe around the community of BlackMoon is a positive one, as most seasoned crypto currency investors understand the importance of bringing in institutional money in a turnkey style manner. Although the lack of any public repo’s in GitHub can be a cause for concern, the high profile and diverse background of the senior leadership leave potential investors hopeful they can get the job done and continue to build up their assets under management
The $10 million pre-ICO threshold was met in early September with more than 2,500 unique paid accounts indicating strong interest in the project that will most likely meet its $30,000,000 ICO cap.
BlackMoon ICO Analysis Summary
BlackMoon Crypto aims to become the industry standard for seamless fund tokenization and management by leveraging existing expertise and technology advances. Based on review of the BlackMoon Financial Group, BlackMoon token platform and community, I believe they are well structured to take on the likes of Melon and Iconomati when it comes to providing access to investment vehicles for crypto investors.
At the end of the day, their success will come down to how well they can implement and make their analytical and management interface shine over other investment management tools as well as recruitment of fund issuers who enjoy using their fund issuer administrative tool.
It is also important to note they will succeed or fail based on how they comply and pivot to the future regulatory hurdles that they will face. Cryptocurrency is a new frontier, and the platforms for institutional and tokenized fund investments are not fully built yet.
Successful partnerships with Deloitte, Target Global, Waves, and Bancor are a good start but if they cannot separately themselves from their competitors by ROI or lower fees they may struggle to get long term investors.
Overall, the BMC ICO might appeal to someone who believes in tokenized investment funds, the strong leadership team BlackMoon Financial Group who has already provided real world value in alternative investment management and in the future of investment funds with both fiat and crypto holdings.
Disclaimer: This "ICO analysis" is for entertainment purposes only. Investing in initial coin offerings (ICOs) can be risky and can result in taking significant loss on investments. Before investing in speculative cryptocurrencies or ICOs, you should talk to a qualified licensed professional. You should also seek proper legal counsel, to ensure investing is legal in your location.