PROBLEM STATEMENT
Real-world asset trading is currently dominated by institutional investors and established financial entities, which limits access for individual investors. These markets have significant entry barriers, including high capital requirements and complex procedural frameworks, which restrict broader participation.
Accurately predicting movements in gold prices and similar assets usually necessitates access to proprietary financial models and well-established industry networks. Professional traders utilise sophisticated analytical methodologies that are not readily available to retail investors, creating an information asymmetry regarding market dynamics.
Current platforms provide insufficient guidance for newcomers seeking exposure to the commodities or art markets. Without access to comprehensive guidance or reliable data, many individual investors resort to speculative approaches or follow unverified recommendations on social media. This often results in capital flowing from retail investors to institutional entities.
Previous attempts at tokenising physical assets have encountered significant challenges. Existing solutions either demonstrate inadequate price stability or rely on centralised custodial arrangements that contradict the principles of decentralisation. Until recent innovations, the technological infrastructure to maintain reliable digital representations of real-world value was underdeveloped.
The knowledge disparity between professional and retail investors creates a significant market imbalance. While institutional investors use advanced algorithms and extensive information resources for asset valuation, individual investors often lack the necessary tools. This disparity restricts retail investors' access to diversification opportunities that could improve their financial portfolios.
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