Target audience and its issues
The key to the effectiveness of any business model lays in the proper identification of a target audience, its issue, and a timely solution.
The Neluns target audience is quite broad. Composed of all current cryptoasset market participants, as well as those who could receive additional profits on account of entering the market. However, there exists an array of serious issues with which both parties run into.
The key to the effectiveness of any business model lays in the proper identification of a target audience, its issue, and a timely solution.
The Neluns target audience is quite broad. Composed of all current cryptoasset market participants, as well as those who could receive additional profits on account of entering the market. However, there exists an array of serious issues with which both parties run into.
Limited amount of banking services.
First, it’s worth noting that currently, there is a very limited amount of banking services in the cryptocurrency market. In contrast to the traditional market, where thousands of different banks operaten within the cryptocurrency market, there exist just a few projects which provide banking services, while their possibilities are severely limited.If market participants had access to banking services, this would positively reflect on their profits. For example, long term investors would be able to deposit their funds and receive a premium, gaining additional profits with minimal risk levels. Lending services would allow traders and funds to increase
their capital volume.
More so, if private and legal entities could execute secure cryptocurrency in just a few
clicks, and easily convert them into fiat, this would attract a plethora of new participants to the cryptocurrency market.
Limited selection of financial instruments
Cryptocurrency market players have access to a very limited number of financial instruments. In the traditional financial market, traders and various investment funds have access to a broad pool of derivatives, such as options, forward and futures contracts, swaps. This allows them to significantly increase their profits and hedge risks.
The practically full absence of analogous financial instruments limits the possibilities of cryptoasset market participants, as well as scares awaynew “players”, who wants to enter this market.
First, it’s worth noting that currently, there is a very limited amount of banking services in the cryptocurrency market. In contrast to the traditional market, where thousands of different banks operaten within the cryptocurrency market, there exist just a few projects which provide banking services, while their possibilities are severely limited.If market participants had access to banking services, this would positively reflect on their profits. For example, long term investors would be able to deposit their funds and receive a premium, gaining additional profits with minimal risk levels. Lending services would allow traders and funds to increase
their capital volume.
More so, if private and legal entities could execute secure cryptocurrency in just a few
clicks, and easily convert them into fiat, this would attract a plethora of new participants to the cryptocurrency market.
Limited selection of financial instruments
Cryptocurrency market players have access to a very limited number of financial instruments. In the traditional financial market, traders and various investment funds have access to a broad pool of derivatives, such as options, forward and futures contracts, swaps. This allows them to significantly increase their profits and hedge risks.
The practically full absence of analogous financial instruments limits the possibilities of cryptoasset market participants, as well as scares awaynew “players”, who wants to enter this market.
Challenges in working with cryptocurrency exchanges
Many market participants regularly take part in trading assets. The majority of which are cryptocurrency traders and funds. When working with cryptocurrency exchanges, they run into serious problems.
Many market participants regularly take part in trading assets. The majority of which are cryptocurrency traders and funds. When working with cryptocurrency exchanges, they run into serious problems.
First
of all, far from all cryptocurrency exchanges, even the largest ones,
are capable of handling peak loads. Exchange operation failures are a
regularity, some exchanges limit the registration of new users.
Secondly, many cryptocurrency exchange users run into issues when withdrawing funds from exchanges. This can be due to withdrawal limits. While at the same time, many users were barred from passing KYC procedures (which is possibly due to deliberate blocking by exchange personnel), which could increase limits.
Secondly, many cryptocurrency exchange users run into issues when withdrawing funds from exchanges. This can be due to withdrawal limits. While at the same time, many users were barred from passing KYC procedures (which is possibly due to deliberate blocking by exchange personnel), which could increase limits.
Lastly,
cryptocurrency exchanges frequently succumb to cyber attacks. Crypto
media platforms frequently report stolen funds from certain
exchanges. For example, in January 2018, hackers withdrew $500M in
NEM from the Coincheck exchange.
Aside
from this, many exchanges experience liquidity issues, as a result,
user orders cannot be closed at appropriate times and prices.
User
support services of most cryptocurrency exchanges function at a subpar
level. As a result, users must wait for their issues to be solved for a
considerable amount of time, which can lead to financial losses.
Problems with performance obligation guarantees
Another serious issue that arises during most trades and transaction
operations is the absence of obligation performances by counterparties. As a result, risks significantly increase. Which is why many interested individuals, as well as companies, simply reject the idea of entering the market.
Problems with performance obligation guarantees
Another serious issue that arises during most trades and transaction
operations is the absence of obligation performances by counterparties. As a result, risks significantly increase. Which is why many interested individuals, as well as companies, simply reject the idea of entering the market.
Aside
from this, during uncertain legal boundaries, many market participants
run into scams and invest their funds in fraudulent ICO projects. As a
result, the authors of such projects do not follow their initial
development plans or simply run away stealing collected funds.
The
availability of insured trades and transactions, as well as the active
implementation of escrow ICO investment protection, would allow to
minimize the negative effects of scams, prevent the loss of market
participants, and increase overall trust.
Tidak ada komentar:
Posting Komentar