December 21, 2020

What is AuBit?

The $89 trillion asset management industry continues to grow each year but hasn’t changed in decades. It’s inaccessible for a lot of the world and fees suck the returns out of investor accounts.

For example, unless you already have a lot of money, it can be almost impossible — and in many cases illegal — for citizens of some countries to invest in certain assets in other countries.

It’s an unfortunate matter of fact that, for many people, accessing capital markets to secure a better financial future has long been an impossible dream.

That’s because asset management has been designed and built for the wealthy, not for everyone. That’s partly because the technology that makes investing affordable and accessible for everyone didn’t exist before. 

AuBit exists to change that. Integral to the AuBit mission is a philosophy of accessibility and affordability for every eligible user in the world. That’s because AuBit envisions a world where everyone has equal access to the world’s top investment products from as little as just $1 — no matter where they’re from, what they earn, or where they live.

It is a bridge from the old world of finance to the new — a brand new asset management platform that ‘networks’ the world’s top financial products like gold, stocks, bonds and crypto for greater total returns with no additional risk. 

Greater total returns with no additional risk.

There are two common responses to that statement. 

The first: “Greater returns with no extra risk, really?”

The second: “What do you mean by ‘network’ the world’s top financial products?”

In answer to the first: yes, really. With AuBit, users can achieve the holy grail of investing — better total returns on stocks, bonds, gold, and any other financial asset class, with no additional risk.

We’ll cover the second response shortly, but first, let’s take a look at those additional returns…


Simulations show AuBit users can get as much as 75%
additional gains per year above the market benchmark

In traditional asset management, only the value of the asset varies — the price of your stock, bonds, or gold goes up or down. The volume of assets in your account, the quantity of stocks, bonds, or gold you own, remains unchanged. 

With the AuBit network-enhanced model, however, asset volume grows over time, too, from ongoing trading revenue redistributions. That means that, with AuBit, you get the chance for value growth AND volume growth.

In fact, simulations independently verified by London investment bank 01 Capital show that AuBit users could get as much as 75% additional gains per year above the market benchmark. Of course, until we launch, these remain simulations. However, by April 2021, we expect to have proven the model with real-world results, and we’re cautiously optimistic that early returns may even exceed simulated returns.

Now, to understand how AuBit delivers those returns, let’s uncover the ‘network’ part of the equation.

How AuBit leverages network effects for
better total returns with no additional risk

According to a study by NFX, almost every tech unicorn in the last 23 years — such as Apple, Google, Spotify, Uber, AirBnB and Dropbox — can attribute 70% of their value to Network Effects. 

Like these big tech companies, AuBit is built to leverage the exponential power of network effects. AuBit is the first in the world to bring the power of the network effect to finance for the benefit of all investors.

“The network effect has revolutionised just about every industry. However, no one has yet used the right tech to leverage its potential in the world of finance, until AuBit.” — Joel Krueger, Global CIO at Aon Insurance and AuBit’s Chief Investment Advisor

In economics, a network effect is the phenomenon by which the value or utility a user derives from a good or service depends on the number of users of compatible products.

In AuBit’s case, AuBit redistributes 80% of network revenues back to investors for asset growth. That is, every time anyone places a trade, 80% of the fees they pay go back into the products. 

AuBit automatically uses 80% of that fee to buy more of the same underlying assets and redistributes it among users. For example, if you buy and hold AuBit-networked gold, you get more AuBit-networked gold in your account every time anyone anywhere in the world trades that same product. 

That’s network growth. Good, isn’t it? 

It’s the AuBit Edge Protocol that makes AuBit work. Built using blockchain technology, it automates all trades, transactions, and revenue redistribution. It’s this automation dramatically reducing operating costs that makes it possible for AuBit to redistribute 80% of the fees back to users.

What’s more…

AuBit charges zero ongoing platform
fees on the majority of products

Typically, when you use an asset management platform, they’ll charge a small annual fee that cuts into your returns. If your assets are actively managed, you’ll pay higher fees, perhaps as much as the famous ‘2 and 20’. That’s 2% per year plus 20% of the performance above the benchmark.

AuBit, however, charges ZERO ongoing platform fees on most of its products. That means that, on those products, all your returns are yours to keep. And the differences between AuBit and typical asset management doesn’t end there. AuBit is working to give millions of previously underserved users access to the AuBit Network.

AuBit will be available in more than
180 countries on the Freeway platform

The ability to put capital to work for a more secure financial future has long been an impossible dream for most of the world. Something as simple as buying assets, like gold, stocks and bonds has never been fully accessible to everyone. AuBit exists to change that.

It would have been easy to follow the normal path of creating an asset management platform for the benefit of institutions and high-net-worth individuals. But the team wanted more than that. 

AuBit envisions a world where anyone can benefit from network-enhanced returns on the world’s top investment products from as little as just $1 — no matter where in the world they live.

That’s why the team spent the last three years working on solving complex regulatory conundrums that make that dream possible. And it’s the Freeway platform that brings the idea of access for all to life.

The AuBit Freeway trading platform and app lets users sign up for free accounts where they can access AuBit-networked products from their computer or smartphone.

The Freeway app lets eligible users:

  • Access network enhanced products from just $1
  • Watch as their AuBit holdings grow on every single trade
  • Manage their entire AuBit portfolio in one place
  • Receive extra rewards for inviting friends and being active on the platform

To help users further, they can receive significant trading discounts when using the Freeway Token instead of traditional fiat currency like dollars, euros, or pounds. 

Freeway Tokens (FWT) gives
users discounted trading fees

Freeway Tokens are native to the Freeway platform. They are designed to fuel AuBit Network growth by offering Freeway users discounts on trading and service fees and preferential network-effect growth,

Canadian merchant bank GreenBank Capital was the first institutional purchaser of Freeway Tokens having bought $3.2m worth of FWT at the time of the deal. 

All of this has only been possible thanks to the AuBit team.

AuBit’s world-class management team and advisors have worked at some of the largest financial and technology companies in the world including Goldman Sachs, Fidelity, HSBC, Credit Suisse, Morgan Stanley, IBM, Google and The Prudential.

Would you like better total returns on the world’s
top investment products with no extra risk?

Visit aubit.io now to sign up for the waiting list and be one of
the first in the world to enjoy network-enhanced returns.

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