Ubonium is a fascinating new platform aiming to disrupt the $3 trillion exchange traded fund (ETF) market by launching a platform supporting exchange traded crypto funds (ETCFs). In essense, Ubonium will apply the blockchain to this asset class, and will offer other essential services to meet the financial needs of consumers and businesses.
ETFs are baskets of securities of various classes or categories meant to spread risk. ETFs may track or represent stock indices, commodities such as gold or silver, currencies, bonds, etc. They are typically purchased through a broker who charges a commission. As a basket of securities, ETFs are similar to stocks with their own ticker symbols. Due to their built-in diversification and flexibility, ETFs have grown into a very large market meeting the financial needs of mainstream investors.
With the growth of blockchain technology and cryptocurrencies, new possibilities have emerged for investors. Investors can now invest in a new category referred to as ETCFs, which represent a basket of cryptocurrencies. Similar to the stock market, there are cryptocurrencies emerging in many industries, and ETCFs allow investors to select the niches of cryptocurrencies they prefer. Ubonium will invite fund management companies to introduce their own ETCFs to reach a broader audience of investors and contribute to its financial ecosystem.
Underpinning the massive growth in cryptocurrency market capitalization the last couple of years is the disruptive nature of the blockchain to many industries, especially finance. On a fundamental level, the blockchain alters the dynamic of investing and increases efficiencies. Because of its trustless nature, the blockchain removes the need for intermediaries such as traditional brokers that have charged high fees. Smart contracts, for example, execute agreements automatically when both parties have fulfilled their obligations. Moreover, transactions on the blockchain are publicly visible and immutable, bringing transparency and security, both of which are essential in finance. As a first-mover in the ETCF market, Ubonium will be able to capitalize on this potentially massive market by reducing fees for users.
Besides the potentially lucrative ETCF market, Ubonium will launch Ubopay, a mobile payment system. This payment system will allow customers to pay for real-world goods and services using their mobile phones. In much of the Third World, while large segments of populations are unbanked or underbanked, mobile phones are ubiquitous. Thus, there is the potential to empower hundreds of millions of people using a service like Ubopay. Besides lower transaction fees than traditional payment processors, Ubopay will allow merchants to receive the cryptocurrency or fiat currency that they prefer with the platform. Along with Ubopay, the Ubobank service will allow users to frictionlessly exchange or trade cryptocurrencies with fiat currencies. Users can also obtain debit cards to withdraw cash from ATMs using the service. Holders of the native token of the platform, Ubocoin, will be entitled to reduced or waived fees on the platform. Ubocoin is an ERC20 token that runs on top of Ethereum.
Notably, Ubonium raised over $11 million from two venture capital firms, and thus halted its ICO due to quickly raising sufficient funds. This project intends to establish itself globally. As a bockchain project flush with cash and bursting with vision and creativity, it is among the most exciting projects out there.
*I am receiving Ubonium tokens for the growth of the community.
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