Problem definition

Rapid Growth of the Cryptocurrency Market

The cryptocurrency market is being adopted globally, meaning new users with diverse economic, social, and cultural backgrounds are entering the market. This change is rapidly increasing the influence and market size of cryptocurrencies. However, this growth presents significant challenges for retail investors to accurately understand and make decisions due to information asymmetry and the market's rapid volatility.

Information Asymmetry

One of the biggest problems in the cryptocurrency market is information asymmetry. This means the quantity and quality of information are unevenly distributed among market participants. Information asymmetry causes the following problems:

• Information Overload: The cryptocurrency market operates 24/7 globally, continuously generating new news and data. With thousands of news articles, analysis reports, and social media posts produced daily, it is practically impossible for retail investors to keep up.

• Lack of Time and Resources: Retail investors have limited time and resources for analysis compared to professional investors. They often have jobs or other daily obligations, making it difficult to quickly acquire and analyze all the latest information. The larger the volume of information, the greater the problem.

• Regional and Language Differences: Information asymmetry in the cryptocurrency market is exacerbated by regional and language differences, meaning the accessibility and understanding of information vary among market participants. Most latest news and information are primarily provided in English, and these language barriers lower understanding and accessibility, increasing the risk of missing or misinterpreting important information for global investors.

High Market Volatility

The cryptocurrency market shows much higher volatility compared to traditional financial markets, caused by various factors, and is one of the main problems faced by investors.

• Price Fluctuations: Cryptocurrency prices can fluctuate sharply within a short period, posing significant risks to investors.

• Unpredictability: Market volatility makes it difficult for investors to predict future price changes, posing a significant obstacle to making strategic investment decisions.

Limitations of Retail Investors

Retail investors lack market experience compared to professional investors and do not have easy access to advanced analytical tools and information, causing the following problems:

• Lack of Analytical Ability: Retail investors struggle to analyze vast amounts of data and make decisions based on it.

• Limited Information Accessibility: Retail investors have limited access to reliable information, negatively affecting their investment decisions.

Limitations of Traditional Media

Traditional media is losing its competitiveness due to the typical business model, especially in the digital media environment.

• Excessive Banner Ads: Traditional media websites include so many banner ads that it becomes difficult to read articles. These ads distract readers and can cause them to miss important information.

• Promotional Articles: Traditional media often posts indiscriminate promotional articles, reducing their credibility. These articles confuse readers and can lead to incorrect judgments.

• Biased News: Sometimes, due to contributors' or media's interests, readers encounter biased news. This bias distorts facts and confuses readers based on interests.

Conclusion

The rapid growth of the cryptocurrency market, along with issues of information asymmetry and high volatility, presents significant obstacles for retail investors in understanding and making decisions. Information asymmetry is exacerbated by information overload, lack of time and resources, and regional and language differences. Retail investors struggle to quickly acquire and analyze vast amounts of information and have difficulty accessing reliable information.

Additionally, the high volatility of the cryptocurrency market presents significant risks to investors due to rapid price fluctuations and unpredictability, making strategic investment decisions difficult. Retail investors lack market experience compared to professional investors and have limited access to advanced analytical tools, making it difficult to effectively respond to such volatility.

The limitations of traditional media also act as factors that hinder the reliability and accessibility of information. Excessive banner ads, indiscriminate promotional articles, and biased news distract readers and cause confusion, leading to incorrect judgments.

These issues are major factors that undermine the efficiency of the cryptocurrency market and weaken investors' trust. Assemble AI aims to solve these problems using artificial intelligence technology. Assemble AI's innovative approach will support investors in making wise decisions by resolving information asymmetry in the cryptocurrency market and providing solutions to effectively respond to high volatility. This will ultimately contribute to enhancing the transparency and efficiency of the cryptocurrency market.