Starting any new business is risky. Starting up on the blockchain sometimes feels like madness.
That said, Elitium has already taken strides to overcome the most significant risks that face our business. We’ve built, released, and iterated on products. And every day, we see new signals of success that suggest we might just be onto something.
Still, we see five hurdles to overcome to ensure we continue to hit our milestones.
5 Biggest Risks Elitium Faces
Given that the blockchain is a relatively young technology, you might think it’s one of our leading risk factors.
However, we’ve already developed most of our infrastructure. So, we don’t see ‘the build phase’ as a challenge to overcome. On the contrary, we’re confident we have robust technology in place: as proven by our staking program and a well-received masternode network.
But every technology has inherent risk-factors. And that brings us to Elitium’s first potential obstacle.
There’s a prevailing risk with every technology: hacks.
The blockchain design removes most of the danger. But that’s not to say a network can claim immunity from such vulnerabilities — thankfully, Elitium has the expertise of co-founder Jean-Pierre to fall back on.
JP’s extensive experience in building secure technical solutions has been pivotal to Elitium. And by hiring a team with an equally impressive background, we know we can keep our systems safe from a hack.
While we can keep ourselves secure, we can’t control what happens elsewhere. There’s always the risk a partner will fail to operate in a way that supports our ambitions. And we have to work with every eventuality in mind.
That’s why we mitigate risk by only integrating proven and reliable technologies: just as we’ve done in securing HUSD as a liquidity partner for Elitium Capital. HUSD is the stablecoin of Huobi: one of the most reputable exchanges around.
In using solutions that we know we can trust, we offset the risk of any integration becoming a point of weakness.
Competition is a risk that every company faces. But Elitium outranks our closest competitor by a significant margin. Moreover, we remain confident that our early steps into the luxury blockchain space will only stretch the gap. Be it between crypto or more traditional incumbents.
We have the most diverse product suite around. Our technology is more evolved than many blockchain projects. And while established FinTech companies could pivot into our space, they’d have a lot of catching up to do.
Concepts like tokenization are starting to find a more mainstream audience. Still, if authorities ban digital currencies or digital shares, or even just certain aspects of what we’re creating, this will impact our ecosystem.
However, ongoing developments suggest the opposite. There’s increasing acceptance. Plus, we’re close to securing all the licenses we need.
5. Macroeconomic Events
Black swan events like Coronavirus represent an existential risk to every business, emerging or otherwise. However, we see such occurrences as an opportunity as much as a risk.
They create an immediate need for products like Elitium Capital.
So where some might see COVID-19 as a reason to delay, Elitium has only ramped up development. And while the downturn will call a temporary halt to specific luxury experiences, it will force companies to find alternative paths to financing — putting our digital share platform in a strong position.
If We Can Educate An Audience, We Can Succeed.
We believe we are well-positioned to counter our threats. Our focus today is on attracting users — that way, we can set the wheels of our vision in motion.
We are already proving the concept behind our Digital Economy. We’re evolving our products in line with our users’ feedback. And our native digital currency EUMis only growing in popularity. It’s all proof our educational efforts are starting to pay off.
Today, we’re watching momentum grow, both within the crypto-world — and beyond.
See what the Elitium team has been working on over the last three years:read the Elitium Development Report 2020.
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