Traditional Asset Management Constraints
Getting rid of the current constraints. Building the future of asset management.
Blockchains offer a natural solution to many of the problems facing traditional asset management.
These problems include:
High third-party setup costs for new asset managers. A significant portion of asset management fees goes toward paying custodians, administrators, and countless other service providers - justifying the cost of management fees.
Slow processing (settlement). Subscriptions and redemptions regarding TradFi funds can take days, weeks or even months.
High minimum investment amounts. Hedge funds are generally only available to very high net worth individuals and the minimum investment amount is usually more than $100,000.
Regulatory compliance overhead. The regulatory costs associated with distributing a hedge fund can be prohibitively high, discouraging the entry of new hedge fund participants and hindering innovation.
Imbalanced incentives. TradFi fund managers typically profit via management fees regardless of performance and have little incentive to stray far from the herd.
The Nest Egg network, on the other hand, wants to give everyone the opportunity to start their own fund on the Avalanche Blockchain. And as more and more assets are inevitably made available for trading on the blockchain (including tokenized stocks, commodities, real estate, etc.), the project offers the potential to expand to the entire universe of investable assets.
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