STABILIZING DIGITAL TOKENS’ UNIVERSE Tokenized low-volatility arbitrage hedge fund
The need Cryptocurrencies are a vital innovation. However: token price instability is slowing down adoption by new users. - price differences make life more difficult for current users of cryptocurrencies.
The need (2) When we asked our friends & family, the #1 or #2 reason NOT to invest in cryptocurrencies was: „They are just too risky.” Indeed, an outright purchase of digital tokens results in 5-10 times higher price variablility than financial assets (stocks and bonds).
The solution We approach the problem from three angles: 1) We will create a token with 5-10x lower volatility, 2) We will stabilize other tokens' markets, 3) We will close price differences between markets in different geographies and currencies. Activities 2) and 3) should bring economic benefits (profits) that, net of costs, should increase the value of the STABLE token.
The project – general concept
The project The ICO lasts between 3rd of Sep and 1st of Oct. Early crowdfunders get 6%, 4%, 2% in the 1st, 2nd, and 3rd week of the ICO, respectively. No maximum level of funding (no hard cap). The need and strategies can easily accommodate tens of millions of USD in liquidity/funding.
The project The STB tokens generated in ICO are distributed as follows: 99.5+% to ICO crowdfunders Up to 0.5% to ETH miners The Project Team gets no STB tokens. There’s no „reserve fund”, „advisor fund”, „bounties”. The Project Team is compensated by: up to 2.5% annual fee + 20% success fee (charged on the increase in Net Asset Value per token)
The Team A seasoned team with the following expertise: Asset management, Algorithmic trading, Financial management, IT Startups, Programming, IT Projects/ Systems, Banking.
The Team (2) Maciek Kolodziejczyk, Founder Cryptocurrency Trading (6+ years) Asset Management Financial Management Krzysztof Kolaczynski, Founder Algorithmic Trading Banking
The Team (3) Both co-Founders are currently employed by fully regulated asset management companies with total Assets Under Management: 2.5 billion USD. Specialization in: Precious metals (monetary aspects), Volatility trading / selling, Systematic strategies, Algorithmic trading.
The Team (3) Konrad Szalapak, Lead Developer Algorithmic Trading IT Startups Programming Bartlomiej Kolodziejczyk, IT Advisor IT Systems IT Technology & Trends Highest IT budget in Poland
Case Studies (1) The following chart presents the differences between bitcoin prices on two crypto exchanges. Please note that these are not the highest price differences recorded. Japanese and Korean price differences have been 15+% and 35+% during this time frame.
Case Studies (2)
Case Studies (3) The following chart presents the results of a strategy that systematically traded on the price differences on the two exchanges presented on the previous slide. The results include trading costs.
Case Studies (4)
Case Studies (5) - Korea
Case Studies (6) The following chart compares the investment in bitcoin and in US, European and Japanese equities (stocks). The investment assumes the same level of risk. It employs the so-called „volatility targetting” strategy. Results of investment in bitcoin have been 5-10x better (at the same level of risk) than for stocks over the past 5 years.
Case Study (7)
Case Study (8)