What is Swarm?
Swarm is a decentralized, community owned marketplace built on the blockchain. The project aims to give people access to investment opportunities that are usually limited to insiders. By leveraging asset backed tokens and smart contracts, Swarm can give investors access to deal opportunities with no middlemen involved. Combining automation and new types of token backed assets including real estate, hedge funds, solar installations and more allows Swarm to open high return investment opportunities to people who normally don’t have access.
What is the problem?
The reality of the investment landscape is that most people don’t have access to high return investment opportunities. Many of these opportunities are limited to insiders and high wealth individuals. Getting access to these opportunities requires working through costly and possibly untrustworthy middlemen. In addition, money is often tied down in these investments for a long period of time.
What is the Swarm Fund solution?
According to the Swarm whitepaper “Swarm allows experts to run their own syndicates and have other crypto investors join them in projects and deal opportunities, with no middlemen involved.” Participants who like opportunities on the Swarm platform can pool funds together with other investors and invest as much or as little as they want in the opportunity. These investments become tradeable and asset backed tokens that can be bought or sold whenever investors like.
What is the point of the token?
The Swarm ecosystem uses a two-tiered token model. The SWM token is a utility token that powers the Swarm platform. It is an ERC20 token built on the Ethereum blockchain. This token can be used for gas, transaction settlement, governance and other services. The second token is an SRC20 token which represents investment opportunities on the Swarm platform. Each asset on the platform has its own, unique SRC20 token. These tokens are created by the manager of the investment opportunity and represent ownership in the opportunity.
The Swarm team has a diverse background with experience in finance, technology and blockchain. The CEO Phillipp Pieper is a serial tech entrepreneur who also has a finance background with companies like Deutsche Bank and Allianz Group. BlockWolf believes that Swarm has a very strong team. Click here to read up on the rest of the team members.
The biggest concern that BlockWolf has about Swarm is the regulatory issues surrounding tokenizing securities. Selling securities directly to unaccredited investors doesn’t seem like something that the SEC is going to be getting on board with anytime soon. Just because Swarm has the technical framework required to sell tokenized securities does not mean that it has the regulatory/legal framework in place to do so.
BlockWolf believes that Swarm is a very promising project. The team is very legitimate and they already have 6 projects launched on their platform. Swarm’s new model of financing businesses has the potential to open up investment opportunities for people who normally don’t have access to them. BlockWolf is concerned that regulatory issues will stifle Swarm’s growth. That being said, all cryptocurrency and blockchain projects are speculative and we believe this project has a greater chance to succeed than many others.