Coronavirus, recession fears, oil price war – prices have been falling worldwide since the beginning of March. Still, INVAO’s crypto-portfolio keeps gaining in value. How that works and why investors should invest in crypto-assets.

Since the beginning of March, all markets worldwide have taken a deep dive. On 9 March alone, on “Black Monday,” the S&P 500 recorded a loss of 7.6% and closed at 2,746, almost wiping out the gains of the previous year.

Source: Tradingview

The markets continued the bearish trend that began last month, triggered by growing concerns about a global recession and the economic impact of the coronavirus. This week, the threat of an oil price war between Russia and Saudi Arabia fueled tensions, which caused a sudden drop on Monday. 

All asset classes are affected. Bitcoin is down about 9% since the beginning of the month as well, and most Altcoins are also in the red. Nobody can predict today when markets will pick up again

IVO Bond continues its growth trajectory: proven risk management strategy 

But there is good news as well: The blockchain asset portfolio underlying the IVO bond is up by more than 3% since the beginning of March. Times like these show the real strength of the IVO-Bond.

Source: INVAO Group

INVAO’s Blockchain Asset Pool also outperformed the overall market in previous months. From December 2018 to February 2020, the portfolio generated a total return of 138%, which is 96% more than the benchmark index of the top 30 crypto assets. 

Source: INVAO Group

The explanation lies in INVAO’s investment strategy: INVAO has developed a robust risk management system that allows us to red flag critical risks before they manifest themselves. Since the IVO bond does not follow any index but is actively managed by INVAO’s fund managers, we can react flexibly to market developments and secure our assets in cash or stablecoin positions when markets turn bearish. 

The diversification strategy of the IVO-Bond also proves effective in times of crisis because not all crypto assets are equally affected by the current downturn. On the other hand, those who invested their entire crypto assets in just one project (such as Bitcoin) – a typical mistake made by many crypto investors – are heavily affected by this month’s sell-off. 

As the global economy is drifting into a recession, investors have to look into crypto assets. Nobody can say today how and when markets will pick up again, so massive allocations into gold and crypto-assets offer the much-needed stability. With the IVO Bond, INVAO has the right product to hedge against the current high-risk environment.