Stackr's Digital Assets Fund Advantage: Exploring Opportunities for Wealth Growth
What is a Digital Asset?
A digital asset refers to an asset existing in a digital format, often encompassing a usage right. Prominent instances include assets associated with blockchain and cryptocurrency, such as cryptocurrencies themselves, non-fungible tokens (NFTs), and virtual properties within the metaverse.
How digital assets work
Operating through blockchain technology without a central authority, decentralized digital assets like cryptocurrencies and NFTs function uniquely. In this context, a blockchain, a public ledger for cryptocurrency transactions, plays a pivotal role. Transactions are categorized into blocks, each containing a collection of transactions. Devices running the blockchain software validate these transaction blocks and incorporate them into the continuous chain.
However, blockchain’s potential goes beyond transaction recording; it embraces smart contracts as a core feature. These contracts are automated programs functioning on the blockchain, executing when specific conditions are met. In the context of NFTs, these smart contracts hold significant relevance.
Smart contracts facilitate the creation, purchase, and sale of NFTs through blockchain technology. For instance, to mint an NFT, a creator establishes a smart contract on their chosen blockchain, often Ethereum (CRYPTO:ETH). Within this smart contract’s code lies the framework to determine NFT ownership and manage its transferability. This utilization of smart contracts defines the essence of how blockchain technology empowers NFT activities.
Why invest in digital assets?
Digital assets offer substantial growth potential in contrast to traditional financial counterparts. Originating in 2009 with Bitcoin, a decentralized digital currency underpinned by blockchain technology, the digital asset realm witnessed evolution as its community recognized the transformative power of blockchain in constructing decentralized applications. Ethereum, a pioneering public blockchain, brought smart contracts to the forefront, catalyzing the emergence of significant domains like decentralized finance (DeFi) and non-fungible tokens (NFTs). Despite experiencing fluctuations in recent years, the digital asset sphere has exhibited remarkable expansion since inception and currently stands as a trillion-dollar industry, as of September 2022.
Why invest with Stackr?
When considering a Digital Asset Fund, the journey commences by understanding your investment objectives and evaluating if the chosen fund resonates with those goals. Additionally, when opting to invest via Stackr, it’s important to take into account these advantages:
Provides a one-stop-shop for managing traditional and alternative assets
Regulated environment ensures investor protection
The ability to nominate beneficiaries to inherit assets without incurring high costs
Risks Relating to Digital Currency Price Volatility. A principal risk in trading Digital Currencies is the rapid fluctuation of its market price. The price of Digital Currencies may be affected generally by a wide variety of complex and difficult to predict factors such as Digital Currencies supply and demand; rewards and transaction fees for the recording of transactions on the block chain; availability and access to Digital Currency service providers (such as payment processors), exchanges, miners or other Digital Currency users and market participants; perceived or actual Digital Currency network or Digital Currency security vulnerability; inflation levels; fiscal policy; interest rates; and political, natural and economic events. Please refer to the relevant Offering Memorandum and supplement for the full list of risk associated with these investments.
Please note that the exposure to Digital Assets will be via TechBridge International SPC, and the digital asset will not be held directly by the Stackr Master Trust.