Blackmoon Financial Group, a blockchain Financial Service and Fintech firm, and Daneel.io (Daneel), a Information Technology and Services firm whose goal is to develop an AI capable of detecting fake news in the Blockchain market, today announced that they have formed a strategic partnership to create a branded Exchange Traded Index (ETx).

The new relationship between Blackmoon and Daneel will enable the two firms to work very closely together to create a showcase of ETx’s that track the performance of Daneel’s phenomenal sentiment indexes.

Solving the problem of liquidity

Knowing that one can liquidate his or her investment without an impact on price, is a key risk-metric to any and all investment decisions. An STO that supports a thriving and liquid market, immediately increases its perceived value, even if its product, bottom-line or management is not as high a quality as its competitors. The liquidity of the marketplace defines the risk for an investor and the success of the issuer. Without the ease of execution and liquidity, any STO will have limited success, if any at all.

Introducing Blackmoon’s Exchange Traded Indexes (ETx)

Blockchain technology may be a better alternative to raise capital from investors. However, price discovery and trading liquidity also require the inclusion of speculators. The ETx that Blackmoon issues on behalf of its partners’ brands incentivise traders and speculators to take the risk in the market, by offering them a fungible financial product to arbitrage for profit – further adding bids and offers to an STO that would otherwise not exist – effectively creating a balanced and stable price.

“As soon as we met in Malta Blockchain Summit, we were directly aligned with market expectations and the collaboration was the logical next step, we are eager to see how investors will react to this new kind of indices made possible by the AI.” said Harold Kinet, Head of Communication at Daneel.

“Blackmoon and Daneel share a vision and it’s because of this that we are pleased to have discovered such an incredible organization to associate with. We are eager to release the Daneel ETx products as soon as possible to offer this amazing investment opportunity to eligible investors globally,“ said Moshe Joshua, Chief Product Officer at Blackmoon

The strategic partnership with Daneel is one of many that Blackmoon intends to form over the coming months. heir ultimate goal will be to have an entire suite of innovative ETx’s to offer their own clients as well as those of their partners.