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South Korean wealth management company: cryptocurrency can be a safe haven

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Jeong Ki-wook, former executive at Cisco and founder of TrustVerse, a South Korea-based wealth management platform company, said that cryptocurrency assets like bitcoin and ethereum can evolve into long-term safe haven assets.

Achieving Stability

In an interview with ZDNet Korea, Jeong said that cryptocurrencies could become safe havens if innovative technologies and solutions could be used to minimize the risks associated with investment. Currently, the cryptocurrency market is extremely volatile and, as a means of payment, digital currencies are still immature.

But, as cryptocurrency adoption by merchants, businesses, individual users, and retailers, the market will become stable, allowing cryptocurrencies to reach a certain level of stability needed for companies to legitimize payment methods.

As an investment, crypto-currencies remain a high-risk, high-yielding asset class, and traders could gain 30% over a 24-hour period or suffer a loss of 50%. For full-time traders and individuals who are deeply engaged in the industry, such a level of volatility is manageable, but for casual traders and institutional investors, it is difficult to deal with highly volatile assets.

Jeong stated that it is essential for investors to have access to systems capable of autonomically detecting risks and altering the portfolio of crypto-currencies and tokens based of the state of the market. To do this, he pointed out that artificial intelligence is essential to autonomously create suggestions for investors and create a balanced portfolio of digital assets.

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In the last three years since the establishment of Ethereum, many organizations and start-ups have tried to use IA and decentralized governance to invest in the market and reduce the risk of investing in cryptocurrency. The Decentralized Autonomous Organization (DAO), the first ICO on the Ethereum platform, was the first project that attempted to commercialize the idea, but which ultimately failed.

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Other projects have followed the DAO and have been trying to develop systems and methods that could reduce the risk to cryptocurrency investors through market-based analysis. artificial intelligence, but had trouble seducing the public. Numerai, based in Ethereum, is one of many projects that have attempted to achieve a similar model by creating a decentralized hedge fund with data scientists, but who has had difficulty achieving large scale.

Minimization of risks

Recently, billionaire investor Peter Thiel, Founders Fund, has invested in a start-up called Tagomi that will help institutional investors and family funds to invest in the cryptocurrency market with high liquidity by equitably distributing orders among themselves. -the-counter (OTC) markets and exchanges of cryptocurrency. Apart from this traditional method of stock market investing, Tagomi should implement other innovative solutions to minimize risk for large scale investors.

As explained by Professor Cornell Emin Gun Sirer, the blockchain sector has not yet seen a practical implementation of artificial intelligence in wealth management and l 39; investment cryptocurrency. But, succeeding in doing so could lead to the mass adoption of cryptocurrency and could interest public investors.

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