Moshe Joshua: Blackmoon Is A Bridge Between The Traditional And Crypto Markets
Interview with chief product officer at Blackmoon Moshe Joshua. Blackmoon aims to create the best framework for tokenized funds to maintain both spheres of crypto- and traditional economics. They claimed to promote blockchain flexibility to fiat mechanisms and to share accumulated financial wisdom with their clients.
How was your company created?
The company was created in 2014 by Ilya Perekopsky and Oleg Seydak. It started as a lending platform. Some time ago our current clients decided to deal with crypto. We started to analyze the market and then realised there was much larger target audience. We raised $30 million during ICO in 2017. Today we have a platform which works with tokenized investments. And there are no similar projects in the market. Our main office is based in Limassol, we also have offices in Moscow and Israel. I think there are about 40 people working now, but we are constantly growing.
What exactly does Blackmoon do?
Our platform tokenizes funds for investments. It allows to facilitate the token issuing process. Our clients create and trade their assets in exchange for contributions in our platform. There is a real technical difference between an inflatable object and intrinsically valued object. Most of the owned property is worth what the next owner is ready to pay for. The price is whatever everybody decides. And you have only a paper stating that you are an owner. You cannot trade it or do any other operations with it. You just hold it. Instead of this you can use our tokens for investments. It was built on the ERC-20 system, and can be owned, traded or transfered. The ownership can be also easily transferred. We do all of that together on the platform that works with hedge-funds. Blackmoon aims to launch an obtainable ledger for investors in order to combine crypto with traditional funds. We use the Ethereum blockchain as it allows to establish a decentralized and trustful system.
Did you get through the ICO?
Our company had an ICO last September. We raised $30 million in 19 hours. We have a BMC token which is a utility token. It is represented in a number of ways on the platform. We have a mechanism that is called a continuous contributor. It is a user who becomes our partner and shares profits with Blackmoon as a dividend. And we check how much time the user holds tokens in their wallet. The continuous ownership grants you money. Because we have profits and we share it with our investors. So it is a cycle.
Was your ICO successful or maybe you had problems?
We raised money in a crowdsale. We had no problems because it was a different environment back in that time. It was before bitcoin reached $20,000 and everyone got crazy about ICOs. If you had to ask me, the most of successful ICO projects today have stolen the way we did it. We just ran it our own way and built our own model of conversion, distribution and communication. And the funniest thing is that a lot of ICOs are using our images. Our designers created a lot of pictures and drawings for our promotion but we found them in use by other projects. So we have to call to companies and tell, “Please do not use it. There is our trademark”. We spent a lot of time building our community. And the idea of having community manager was simply common sense to us when we first thought about it. Now it has become the rule. Blackmoon really was the leader at that time, but now there are many of others. So we have to be a step ahead of our competitors.
I think your product has nice naming and cool design.
We have not just a cool design. We have the best design.
Your brand book looks like you are game developers. Aren’t financial companies supposed to be more serious?
If you look around here on the exhibition (IFX Cyprus) you will find out that the traditional financial market is mostly very serious. It should not be like that. We are looking toward the new technologies so it is fun, engaging and entertaining. Blockchain has to change the way people think about money.
What are the main challenges you have to overcome these days?
There are plenty of them. For example, there are problems with regulation and licensing. It is not a challenge for us to meet the regulation but it is a challenge to wait for regulation. Today we are waiting for total and clear legislation. I think the regulators have stuck. They understand the crypto market but they do not has ways to save control. Normally, the regulation comes after technology. But nowadays the technology has come too far ahead. And what is even more important is that the technology itself has replaced the fundamental layer, where regulators and governments were focused and had the space to provide control. So our company is working with regulators in order to find solutions.
What kind of profit could regulators and governments gain from blockchain?
The interesting point is that regulators have more to gain from the technology than anyone else. The entire focus of developers is on information gathering, recording, recognition and storing. They can use it, and it is going to help them more than us. And that is the real key. But regulators simply do not have mechanisms to take advantage of it because it is decentralized. The processes need money and time. Each government is the system, so they have limitations and cannot be as creative as developers are now. And there is another related problem. We are the technology company that can do whatever it wants. But every company meets a point when it has to be self-regulated like Facebook or Google. They have own strong limitations and terms of work. So there is an existing game and new companies have to follow the rules of the market.
What differs cryptocurrency regulations from traditional business rules?
Cryptocurrencies are outside of the bank control. But we still have to be regulated in order to protect investors. So we have mechanisms like KYC and AML, which are the base instruments.
Why did you choose Cyprus to register the company?
Cyprus is advantageous because it has regulation and laws to maintain business. But the government here has to learn how to work with blockchain ecosystems to create more clear regulation for cryptocurrencies. They met a challenge because they have to regulate the sphere they cannot inforce.
What is your strategy for the further developing?
Now we have the working platform and ecosystem. So our next step is to create a secondary market for trading. We can create tracking funds of crypto that nobody else can do because they do not have a platform for it. Blackmoon is also a bridge between the traditional capital markets and the cryptomarket. We can build a functional investment tool that will combine both these worlds into one.