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BOSAGORA opens its door to a Blockchain-based Digital Stock Fund Enterprise with FMway
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BOSAGORA opens its door to a Blockchain-based Digital Stock Fund Enterprise with FMway

by Rooney
2020-11-19
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A new era begins in the financial investment

Stock investment is a typical traditional finance investment method. This is supported by the strong public confidence in-stock products made up of global companies, as well as excellent access to investment and numerous analyses that help investors.

As of 2020, the global market capitalization is about 80 trillion US dollars, and the impact of stock investment in the financial market is still absolute moreover irrevocable. On the other hand, the market capitalization of the world’s crypto market is about 500 billion US dollars, which shows that the stock market is still 100 times larger than that of the crypto market. More people are starting to understand blockchain and are investing in crypto-currency compared to the past, but it still seems to have a long way to go compared to the strong traditional investment market called stocks.

Many crypto projects have come up with numerous services, grafting the actual economy with crypto, but there have been no successful cases yet. As there are no successful cases of that, Users at best, invest in existing cryptocurrencies, And astronomical amounts of investments are rushing into passive financial investments like earning interest returns on DeFi.

So, what if there’s a product that allows users to invest in the existing stock market based on cryptocurrency?

BOSAGORA x FMway Contracts a Strategic Partnership

BOSAGORA has formed a strategic partnership with FMway Inc., which has state-of-the-art stock investment algorithms based on big data, to launch the world’s first blockchain-based digital stock fund.

FMway analyzes the latest corporate financial data released quarterly according to a stock investment algorithm based on self-developed big data processing and pursues stable returns by investing in the top 50 stocks with high growth potential for 3 months.

FMway’s algorithm can be applied to stock markets in all countries around the world, and as a result of backtesting simulations over the past 20 years for major global stock markets, the annual average return of 39.7% was remarkable.

Track Record, which has been making actual investments in the Korean market since 2014, is showing similar results to backtest.

Based on this partnership, BOSAGORA plans to launch a blockchain-based digital fund product that anyone around the world can easily invest in the global stock market with cryptocurrency.

Like asset tokens, stock funds are planned to be tokenized, which is much more efficient, low cost, and can be traded anytime compared to ETFs. The structure is similar to ETFs, But, Furthermore, it has many more advantages, including transparent transaction details.

BOSAGORA plans to use BoA Coin when signing up for FMway’s global equity-type digital fund and distributing operating income so that the fund’s sales and return are reflected in the price of the Boa coin.

Proven Stability and Profitability of FMway

FMway reconstructs its stock portfolio every three months when the corporate performance record is released. By selecting stocks according to a preset algorithm, the subjectivity of fund managers are completely excluded, and consistent investment based only on the algorithm can be carried out. Depending on the size of the investment, the propensity of the investor, and the nature of the fund, various strategies can be used and selected. In some cases, a market-neutral portfolio can be formed regardless of the fluctuation occurred in the market.

  • Aggressive type (Long-Only): 100% cash invested in stocks composed of a portfolio
  • Growth type (Long 80%- Short 20%): 80% cash investment in portfolio constituents, index inverse ETF (20% investment)
  • Market Neutral type (Long 50%- short 50%): 50% cash investment in portfolio constituents, index inverse ETF (50% investment)

The Results of the Backtest Simulation

The results of the Backtest Simulation based on past financial data for the previous 20 years are phenomenal. The results of applying this algorithm based on the performance data of companies listed in 12 global stock markets including Korea, the US, and China are shown in the chart below. Of the 753 investment quarters (11 countries, average 18 years), 602 quarters earned about 76% of the investment quarters, and the quarterly average rate of return reached 9.2%, and the annual average rate of return reached 39.7%.

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The gap between the returns of each country’s benchmark index (benchmark, BM) during the same period and the returns of FMway products is so large that it is impossible to compare them as shown below. It has been proven that this algorithm can successfully select excellent stocks from the entire market.

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Actual Investment Results

FMway is actually investing in the Korean stock market from June 2014 to November 2020. Out of a total of 27 quarters, 20 quarters earned an average of 13.7% and cumulatively earned 684.7%, which is similar to the above backtest simulation investment results.

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FMway’s algorithm can be applied to stock markets in any country around the world, and currently, it has a portfolio of stocks in Korea, the US, China, Japan, Vietnam, Thailand, Singapore, India, Taiwan, and Europe. The rate of return for each market is updated daily on the website, and more details can be found on the FMway website.

BOSAGORA’s unique financial investment method for a ‘Better World’

FMway, the world’s first blockchain-based stock digital fund, will provide an environment where anyone in the world can easily invest in global stocks.

Therefore, FMway is expected to help eliminate financial blind spots as it is easily accessible to not only the general investors but also those outside the financial service system. Through this, it is expected that BOSAGORA will be able to take one step further building the vision ‘Make a better world’.


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