SwissBorg is a blockchain based wealth management platform that provides its users with the infrastructure and tools to manage their cryptocurrency investments more efficiently.
The project’s aim in creating this easy-to-use platform is to assist users in navigating the new financial field of cryptocurrencies. The founders of SwissBorg saw a need for such a platform in order to overcome the sometimes complex nature of cryptocurrencies, and the scattered infrastructure and tools that hasn’t found any standardization yet.
In the following review we will take a deep dive into SwissBorg and investigates what problems it attempts to solve, how it is going about doing that, and the pros and cons of the platform, among other things.
What Is SwissBorg?
The SwissBorg project is the brainchild of founders Anthony Lesoismer and Cyrus Fazel. The two initially raised $53 million to back the project and then launched in at the height of the 2017 cryptocurrency rally in December.
While the project is headquartered in Switzerland its team members are spread all across the globe. It counts members from over 20 countries as part of its multi-cultural and multi-disciplinary team.
SwissBorg is a blockchain-based secure wealth management platform for cryptocurrency investments. It is the very first of its kind, and its aim is to simplify the process of investing in cryptocurrencies. It does this in a number of ways, including integrating with the major cryptocurrency exchanges, and by featuring a community-based ownership model.
In addition to the desktop platform there are also two mobile applications – the Wealth App and the Community App. Both are available for iOS and Android devices and they make the process of accessing the platform far easier.
The top achievements of the project as of early 2021 include its successful $53 million fund-raising effort, the creation of a large community, the increasing usage of a gamified Bitcoin prediction app, and a high-performing native token (CHSB).
SwissBorg Wealth App
The SwissBorg Wealth App is the center of the platform, allowing users to create and manage their crypto portfolios. It is an easy and intuitive way to manage crypto-wealth.
Users will find the dashboard to be quite intuitive, but also extremely powerful. It can help to take any guesswork out of the process of cryptocurrency investing.
It is also flexible, allowing users to fund their SwissBorg accounts using a number of fiat currencies, including USD, EUR, and GBP. Withdrawals are easy and since the SwissBorg banking partners belong to the SEPA and Faster Payments network bank transfers can be completed in as little as 5 minutes.
New assets are added regularly and the Wealth App will soon be available for both IOS and Android operating systems.
To learn more about some of the features that make the Wealth App stand out in the crypto investing community read on:
The Smart Engine ensures that users of the Wealth App are given access to the best liquidity and exchange rates available at any time in the broader crypto markets.
The Smart Engine analyzes hundreds of trading pairs in seconds by connecting to and searching all the major cryptocurrency exchanges. This allows it to discover the best rates for buying or selling in any of the supported fiat or crypto currencies.
Analytical Tools and Advisors
The Wealth App continually analyzes the assets supported, and through its deep learning algorithms users are able to gain a better insight into the own portfolios. This includes analyzing the overall performance, providing real-time advice on ways to improve that performance, and advice that helps users to understand the weak parts of their investing strategy.
The robot advisors within the Wealth app are also capable of predicting the direction of trends in order to assist users in making better timing decisions when investing in any of the cryptocurrencies supported by the Wealth App.
Because SwissBorg understands the dangers presented by hackers they put the security of the Wealth App and the users’ funds as a top priority. Because of this they have invested heavily in security practices, including MPC cryptography, platform stress tests, and the creation of advanced security software. As a result the Wealth App is stable and strong, and remains safe from both hackers and bugs, ensuring user funds are always secure.
Some platforms and entities in the crypto industry promise no fees or low fees, but have no transparency to back up their claims. SwissBorg has created one of the most transparent fee structures in the crypto-industry. It is focused 100% on offering users the best exchange rates and no hidden fees.
That’s not to say there are no fees at all, but where there are SwissBorg is completely transparent about them. This allows users to always be certain of their costs, and allows them to compare to be sure they are getting the best exchange rates available at all times.
Multiple Assets in Crypto Bundles
Users of the Wealth App can easily diversify and take the guesswork out of their investing by utilizing the Wealth App crypto bundle. These are pre-selected groups of cryptocurrencies bundled together in much the same way a fund operates. This can help lower risk and improve performance. The crypto bundles are rebalanced all the time as funds are shifted into the best performing assets and out of the worst performing assets automatically.
All of the above features allow SwissBorg users to employ sophisticated techniques for portfolio management with relative ease.
Smart Yield Account
The Smart Yield account is a relatively new addition to the Wealth App that allows users to earn annual returns for depositing various cryptocurrencies. Because it is a new program SwissBorg is currently accepting requests to be put on a waiting list, and then slowly on-boarding users.
The Smart Yield account connects you to selected counterparties with a full range of decentralized financial applications to create a best-in-class yield program. This ensures you benefit from the best market opportunities, resulting in the highest return for the most acceptable level of risk.
Currently the only asset support is USDC, with an APY of 10.35% for standard Wealth App users, and 20.69% for premium users. The team is also working on adding BTC, ETH, BNB, and CHSB to the Smart Yield account.
SwissBorg Rewards Program
The SwissBord Rewards Program is a referral program that allows users to invite their friends and earn BTC in the process. Every successful invite earns the user and their friend a Rewards Ticket valued from €1 to €100. The process is quite simple:
- STEP 1: Share your invitation link by opening the Rewards Tab in the SwissBorg App and sharing the unique rewards link.
- STEP 2: Your friend downloads the SwissBorg app and makes a deposit of €50 or more (or equivalent in their currency).
- STEP 3: Both the user and the friends receive a rewards ticket and can claim their Bitcoin reward. Then keep sharing to earn more tickets and rewards.
SwissBorg Premium Members
Becoming a premium account holder unlocks benefits such as reduced exchange fees and dramatically increased yields in the Smart Yield Account. Users interested in upgrading to a premium account need to purchase 50,000 CHSB tokens and then stake them for a 12 month period. During these 12 months the tokens are locked and cannot be withdrawn or exchanged.
After the initial 12 month period is over the staked tokens unlock. At that point the user can keep them staked to maintain their premium account status, but they are also free to withdraw or exchange the tokens at any time.
The SwissBorg Community App is an interesting concept in that it allows users to speculate on the future price of Bitcoin and earn Bitcoin if they are right. Basically it gamifies learning about Bitcoin. It’s available in both Android and iOS versions and once installed registering and getting started takes just 90 seconds or less.
SwissBorg calls itself “a team of finance and technology experts dedicated to improving the crypto industry by making it fun, fair and meaningful for all.”
While the SwissBorg website only shows the eight top members of the team, including its two founders Anthony Lesoismer and Cyrus Fazel, it also goes on to say that the full team spans 20 different countries. Many of the SwissBorg team members bring years of experience in portfolio management and financial advisory services to the table. Many of them have also graduated from some of the top business schools in Europe.
Cyrus Fazel is one of the founders of SwissBorg and acts as its CEO. Cyrus is a multicultural fintech professional with more than a decade of experience in asset management and algorithmic trading. Prior to founding SwissBorg he was Head of Investment Management platform & Senior Hedge Fund Advisor at SEQUOIA Asset Management SA.
In addition to his role at SwissBorg, Cyrus is also the co-head of Disruption Disciples, a decentralized global collective of innovators and technology enthusiast united by shared values and the desire to build a better world together with the help of exponential technologies. Via local meet up’s and international gatherings, continued thought exchange and collaborations they explore and develop creative solutions to pressing issues.
Anthony Lesoismer is the other co-founder of SwissBorg and its CSO. Prior to founding SwissBorg Anthony was Head of Financial Market Digital-Advisory at JFD Brokers. He also held several sales positions in derivatives and ETFs.
On the technical side of things the CTO is Nicolas Remond, an experienced software engineer. After obtaining hid Masters of Science in Computer Science from Ecole nationale supérieure des Mines de Paris he went on to several roles in creating and designing software. One thing missing from his resume however is any experience with blockchain technology.
Looking at the overall team it’s clear they have extensive experience in finance and investing, however they seem to be quite weak in terms of blockchain technology. Of course SwissBorg is not an extremely complex blockchain project, so the limited blockchain experience of the leadership team might not be a huge issue. Within the other individuals spread across 20 countries we’re sure there must be some blockchain experts.
Currently SwissBorg can be used in over 115 countries around the world, and they have plans for the inclusion of many more in the future. One thing to consider is that residents of some countries cannot access the full range of SwissBorg features. You can see if your country is included and what is supported by visiting this page.
One notable exclusion from the list is the United States. Investors in the U.S. are unable to open an account with SwissBorg or use their Wealth App due to the stringent financial regulations in the U.S.
Currently (January 2021), SwissBorg has support for 15 different cryptocurrencies and 15 different fiat currencies.
They are adding new assets all the time and have ongoing votes on which other assets should be included in their Wealth App.
Private Wealth Management
The private wealth management industry has grown significantly in recent years in response to the rising levels of affluence around the world. In the U.S. alone the number of millionaires has more than doubled since 2010, and there are similar trends around the rest of the world, particularly in China and in other emerging economies.
Another thing driving the growth in affluence and the need for private wealth management of course is the cryptocurrency and decentralized finance revolution that is making millionaires out of many more people.
A crypto private wealth management platform like SwissBorg is considered to be Fintech private wealth management. The traditional wealth management industry has been slow to include blockchain technology, despite the urgent need for wealth management to become more transparent and accessible to all.
Partially this is due to the large financial firms and players continuing to underestimate the exponential growth and disruptive nature of blockchain technology. In addition, because cryptocurrencies continue to be subject to confusion and uncertainty regarding their status as an asset class there are few in the traditional financial advising community willing to craft solutions for cryptocurrency holders.
In short, the financial industry, in particular the private wealth management industry, needs to redefine itself and catch up with the revolution of decentralized finance and blockchain technologies.
The decentralized finance platforms offer many benefits that are missing from traditional centralized finance and investing solutions. This includes greater transparency, lower fees, time savings, and increased investment solutions.
When SwissBorg was founded it was one of the only decentralized wealth management projects. The only similar projects were the crypto funds that existed at the time. SwissBorg is considered superior to these centralized solutions as it gives the community the right to choose the direction the platform will take.
There have been competing projects that have sprung up more recently, but with its first mover advantage SwissBorg remains one of the largest blockchain-based crypto wealth management platforms. Even considering the emerging competition, the private wealth management industry is large enough to support a number of platforms.
SwissBorg Network Token (CHSB)
The utility token used on the SwissBorg platform has the ticker CHSB. It is an ERC-20 token, with a total supply of 1 billion tokens. The current circulating supply is just shy of that number at 933 million.
The remaining tokens are being held in reserve for the development and promotion of the project. The majority of CHSB tokens are traded at HitBTC, although there is some small volume trades at KuCoin and Uniswap. Most of the major exchanges like Binance and Bittrex do not support trading the CHSB token.
In terms of price performance the CHSB token has exploded in 2020. Prior to that it was quite depressed, having started in February 2018 at $0.10, but falling to under $0.01 by August 2018. The price remained there until January 2020, when it more than doubled to over $0.02.
Price remained there until May 2020 and then exploded upwards to reach $0.15 within a month. Price retreated to reach just under $0.07 by late October 2020 before exploding upwards again. As of January 1, 2021 the price of a single CHSB token is just over $0.26.
Benefits of the CHSB Token
Aside from the potential for price appreciation, there are a number of other benefits gained by holing the CHSB token. These benefits include:
- Access to future exclusive wealth management products and services in the app.
- Premium membership with very competitive exchange rates and zero fees. This is referred to as “Staking” on the wealth app.
- Voting rights on the referendums and future of the SwissBorg Platform.
- Earn amazing rewards for investing in the SwissBorg Ecosystem.
Speaking of price appreciation, the CHSB token also has a feature called Protect & Burn which protects the price of CHSB by burning tokens to reduce the circulating supply. This feature is meant to protect the token from flash crashes and devaluation, and is expected to provide a constant upward pressure on the price of CHSB. Currently 20% of the fees generated by the Wealth App are burned in order to reduce supply and protect price.
CHSB Use Cases
Because the CHSB token powers the entire SwissBorg ecosystem it has great utility. Not only can users stake CHSB to offset some of the platform fees, the token also grants voting rights to participate in the governance of the platform.
It is also used in the reward distributions set out by the Proof of Meritocracy concept, and is part of the Protect & Burn policy that maintains upward price pressure on the token by increasing the scarcity by burning circulating tokens.
Proof of Meritocracy
The Proof of Meritocracy features allows CHSB token holders to participate in the development and progress of the entire network. When holding the CHSB token there are RSB tokens generated, and these are used as voting tokens for referendum proposals.
The more CHSB held, the more RSB generated, and the greater voting power the holder has. Besides just helping to determine the future course of SwissBorg, users are also rewarded for participating in referendum voting.
Protect and Burn
The Protect and Burn policy helps support the price of CHSB tokens by buying back and burning circulating tokens any time the price of CHSB is trending lower. This is advantageous because it avoids the arbitrage that can take place when buybacks are announced ahead of time.
In the traditional buyback where the buyback is announced ahead of time it is not uncommon for arbitrageurs to buy tokens ahead of the scheduled burning and then sell their tokens for a higher price just after the supply of tokens is lowered. This does not protect long-term token holders and loyal community members in the way the SwissBorg Protect and Burn policy does.
Each month SwissBorg adds 20% of the Wealth App fees to a reserve meant to protect the price of the CHSB token. If the price of CHSB moves into a bearish-zone (using the 20-day moving average as their indicator), SwissBorg will automatically place buy orders for CHSB using the reserve funds.
The SwissBorg Decentralized Autonomous Organization (DAO) was create to assist in the governance of the ecosystem. It is a unifying bridge between the SwissBorg team and the community members. Through it the community members have the ability to help determine the direction the project will take, while also being rewarded with CHSB tokens for participating in the governance of the ecosystem.
The team has defined some different roles for community members to participate as. Here are several of these roles:
- Digital Artist: This is a content creator that is tasked with creating any type of content (videos, presentation, blobs, pictures, etc) that helps promote the SwissBorg project.
- Translator: Translators are tasked with translating any important documents and articles into their native languages. This incentivized position helps SwissBorg complete one of the most difficult yet important tasks.
- Promoter: The promoter is a marketer who is responsible for spreading the word about SwissBorg, mainly on social media platforms. The promoter is key to increasing the adoption and usage of the platform, thus increasing the value of CHSB tokens.
- Moderator: A moderator is similar to an admin found on forums and discussion boards. The moderator regulates communications on the various channels used by SwissBorg. These responsibilities include enforcing group rules, moderating the flow of discussion and promoting healthy discussion, removing inappropriate content, and more.
- Campaigner: The campaigner is similar to the promoter, but rather than working with social media channels they work with real-world channels. This means networking with other groups and people and organizing events to promote SwissBorg. This might include city meetups, AMAs, group meetings, and other in-person events.
- Business Introducer: In essence the business introducer performs the role of an ambassador, trying to make connections with business partners, investors, and influencers within the crypto-community.
The $53 million fund raiser in 2017 was ne of the most successful in the blockchain industry at the time. SwissBorg didn’t squander the funds either, but have delivered an impressive product that solves many of the problems associated with private wealth management for cryptocurrency. It also makes investing in cryptocurrency simple and accessible for everyone.
The Wealth App that’s been developed by SwissBorg is a powerful and yet simple solution to cryptocurrency investing. Users are able to buy and sell, deposit and withdraw, manage all their crypto assets and even trade all within the same intuitive interface.
Even more impressive is that SwissBorg has become fully compliant with all the regulatory frameworks for the more than 115 countries that can take advantage of the Wealth App. This means users can take part in cryptocurrency investing without worrying about the legality of their actions.
We also appreciate the community driven approach and decentralized governance, which is already working very well for SwissBorg.
Taken all together it seems apparent that the SwissBorg Wealth App is realizing the mission of the project to make cryptocurrency wealth management simple and more accessible. Investors seem to agree given the huge price increase seen in the CHSB token in 2020.
If SwissBorg can continue on the path they’ve set for themselves this could be one of the foundational blockchain projects that will continue to set the pace for wealth management for decades to come.