Under The Microscope: Unizen, Equilibrium of Investing
Accredited investors hold significant competitive advantage over retail investors within capital markets due to a larger selection of options and the ability to invest before the general public has a chance to creating an uneven playing field.
From early opportunities such as Nas investing in Coinbase as early as 2011, to privately traded companies that are only accessible through ventures or meeting the requirements of accredited investor. With some of these requirements being, an annual income exceeding $200 thousand, or a net worth of $1 million, its easy to see why the rich have been getting richer. Once these assets become publicly available to trade, accredited investors are up often up multiples of the initial public offering price. This has created the common scenario where accredited investors are up so heavily from the initial public offering, they choose to take profits and simultaneously tanking the significantly price below the initial price retail could purchase at.
While not quite the same situation within the world of cryptocurrencies, many crypto assets are offered to venture capitalist for a discounted price prior to the initial launch of the underlying asset. This disparity creates the similar problem of the competitive edge accredited investors hold over retail. Though these rules are put in place to ensure the safety and knowledge of investors, the counterargument that these status based requirements are irrelevant to the knowledge and abilities of an investor along with the ethos of a free market.
So whats the solution? Startups offer equity of their company or an allocation of the underlying asset of their network to accredited investors to help with the development of their project financially. In legacy markets, listing as a privately traded company saves corporations significant amounts of time and capital from audits and verification processes within the SEC. An alternative solution would be for the retail market to have the same opportunities. Though with the amount of risk of investing within developing startups, how can authorities keep investor protection in their best interest without creating an unfair advantage?
Unizen is working to not only build an exchange aggregator across centralized and decentralized exchanges, but have also built a system in which users of their network accredited or retail, have the opportunities to take part within startup projects that aren’t available to the public yet through their incubator system. Participants within the Unizen ecosystem entitled the opportunity to stake their Unizen to secure their network, while in return receiving rewards from the teams rewards of various crypto nodes, along with crypto asset from the payments incubated startups have allocated to the Unizen team. Through Unizens incubator and dynamic staking mechanism, participants not only have the opportunity to receive allocations and invest in developing projects that would otherwise be impossible as a retail investor.
The regulations policymakers have set for retail investors from investing in early startups bring two parties to uneven grounds, but can be justified as protecting unknowledgeable or inexperienced investors as many early startups don’t end up successful either due to lack of funding or ambition and vision. To further decentralize Unizen, the team has decided that the future of the ecosystem will be determined by a decentralized autonomous organization (DAO) once the team has built the proper foundation and infrastructure. Unizen has ensured to only provide projects the team believes to have utility along with an ambitious team to bring into their incubator in assisting to accelerate development through their array of legal, financial and technological assistance.
While investing within early projects under an incubator does limit the potential risk of projects going under, there is rarely ever a genuinely zero risk investment. Unizen has built a savings account for stablecoins named Dynamic Yield Savings Account (DYSA). Which will offer competitive rates to giants in this industry such as BlockFi and Celsius. With the mechanism of DYSA operating in a tiered procedure as holding a higher amount of $ZCX tokens will raise the rate of return.
Attention to Detail
Unizens approach to creating a more free and even market will likely attract many into their ecosystem, as retail will finally get to experience the potentially lucrative ability to invest in early startups, while also being entitled to node rewards distributed by the team, as running nodes can often require a significant amount of capital, technological knowledge and in some rare cases only well known entities can be node operators of certain networks. This has the potential to draw in a large amount of participants who are wishing to invest within early startups for the highest potential return on the investors side, while this also greatly benefits future startups in this space looking for the proper guidance and mentorship to thrive within this new emerging asset class.
Through their products of DYSA DMAS and their Zen X incubator, regular everyday investors now have access to rewards node operator rewards, allocations and pre-sales of startup projects, while also having the risk free option of earning competitive yields on their stablecoins.
As Unizen has already begun incubating crypto projects looking to tackle problems across multiple sectors with some examples such as agriculture, logistics, fine arts, and big data. The future potential for both startups and investors to utilize Unizen’s network as an investment platform along with incubator will likely see large growth demand and interest.
Unizen is carrying out a mission that has the potential to attract clients from any industry, whether it be clients of wealth managers, to startup projects wishing for the appropriate resources and even those wishing to just earn yield on their cash value without having to take risk on.
Unizen is attacking the global microeconomic issue of maintaining purchasing power and equalizing the investment world. While banks essentially yield negative real rates relative to inflation, forcing their clients to either watch as their purchasing power decreases year over year, or take on risk in the heavily manipulated equities market. Unizen’s products offer users an array of risk from DYAS being a zero risk savings account to earn yield and actually increase purchasing power contrary to “high yield” savings accounts central banks offer, all the way to speculative riskier startup projects from their incubator.
It will be exciting to watch as retail either gradually or swiftly takes notice of this new paradigm shift within investing within Unizens ecosystem and a completely innovative procedure of passive income through the team distributing node rewards and portions of payments back to the community. It is possible Unizen will take away market share away from many other asset classes as users begin to realize this new approach to passive income and an even playing field.
*None of the information listed is financial or investment advice and should only be taken as entertainment or educational as I’m not a financial advisor*
Hey, thanks for taking the time to read my work. I’m your average 20 year old, currently in school for Economics and Finance. Some of my hobbies consist of sports, working out and staring at price charts.
I initially began interested in the crypto space after frustrations with legacy markets. From the second I read about the Ethereum ecosystem, I fell in love. An entire ecosystem built on one platform that anybody can access? Unheard of, until now.
With how fast this space is developing, I try and find projects within this industry that show promise and potential to disrupt our modern world. All this fundamental analysis not only helps me better understand these projects better, but hopefully gives you guys some newfound information!
If there are any projects you’d wish to suggest me take a look into, I’m always available on Twitter