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Author Topic: Cryptocoins, the first crypto hedge fund bridging euro and Asset Exchange  (Read 31668 times)

DoM P

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I am pleased to announce the relase to the CryptoCoins hedge fund, result of months of work at CFA Consulting.

CryptoCoins is a hedge fund invested in crypto currencies, mainly Bitcoin. Based on the Nxt Asset Exchange (asset ID: 615502203617265072), it use it as the backbone for its trading, but since it is primarily aimed at attracting people from the non crypto world, it will be tradable directly in euros through the CCEDK exchange platform, chosen among other reasons for its quick reaction time.
It aims at hedging the risks associated with the high Bitcoin volatility.
The CryptoCoins hedge fund was backtested between October 2013 and October 2014:
 


We hope with this fund to bring people to cryptos, attention to Nxt, and money to investors.

Documentation is available for this fund here:
A six-page fund’s presentation:
•   In English
•   In French
A fourteen-page procedure to learn how to buy the fund from the Asset Exchange:
•   In English
•   In French
A thirty-page procedure to learn how to buy the fund with euros from CCEDK:
•   In English
•   In French
A two-page procedure to learn how to actively participate in the trading choices of CryptoCoins and earn money from it:
•   In English


Updates concerning the fund can be found here.

The marketing campaign will start soon.
Have you heard of CryptoCoins? You should!
Crypto Finance Analysis Consulting: cfa-consulting.ch
Nxt : NXT-LP8G-9NHV-VUQB-58ZZF

CryptKeeper

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Great news, I'm interested!

When will it be available on CCEDK? I don't find any sell walls in the CCS trading pairs.
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DoM P

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Great news, I'm interested!

When will it be available on CCEDK? I don't find any sell walls in the CCS trading pairs.

Just did it.
I sent the asset to CCEDK during the night, and had to sleep a few hours while they were processing the incoming funds... ;)

So now it's all ready to go. 300 CCS for euros, 100 for Nxt, and 100 for Btc.
Have you heard of CryptoCoins? You should!
Crypto Finance Analysis Consulting: cfa-consulting.ch
Nxt : NXT-LP8G-9NHV-VUQB-58ZZF

CryptKeeper

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Great news, I'm interested!

When will it be available on CCEDK? I don't find any sell walls in the CCS trading pairs.

Just did it.
I sent the asset to CCEDK during the night, and had to sleep a few hours while they were processing the incoming funds... ;)

So now it's all ready to go. 300 CCS for euros, 100 for Nxt, and 100 for Btc.

Thanks mate, I'm thinking about putting some sleeping bitcoins to good use! :-)
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DoM P

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Great news, I'm interested!

When will it be available on CCEDK? I don't find any sell walls in the CCS trading pairs.

Just did it.
I sent the asset to CCEDK during the night, and had to sleep a few hours while they were processing the incoming funds... ;)

So now it's all ready to go. 300 CCS for euros, 100 for Nxt, and 100 for Btc.

Thanks mate, I'm thinking about putting some sleeping bitcoins to good use! :-)

That what I did with mine... ;)
Have you heard of CryptoCoins? You should!
Crypto Finance Analysis Consulting: cfa-consulting.ch
Nxt : NXT-LP8G-9NHV-VUQB-58ZZF

TwinWinNerD

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What are those numbers "BTC -600%"?

Also this chart is highly missleading, how do we know that you didn't optimize your strategy for high past returns. Backtesting as a predicting method is highly frowned upon.

Still. interested ;)

DoM P

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What are those numbers "BTC -600%"?

Also this chart is highly missleading, how do we know that you didn't optimize your strategy for high past returns. Backtesting as a predicting method is highly frowned upon.

Still. interested ;)

This is indeed no proof of future return. It is only an indication of what we would have done, had we started, with the current strategy, a year something ago.
Backtests, not any more than past performances actually, do not guaranty future performances.

Sorry if we gave this impression.
They are tools to understand the strategy. And they help optimizing.
Naturally, we could, technically, cheat and say whatever we want. But I think people who would want to invest money in a fund, any fund, do have to trust the managing team a minimum.
Else, people shouldn't invest in funds, but trade themselves.


To answer your question, the -600% for Bitcoin is for someone who would have invested at the peak (November 2013)
Have you heard of CryptoCoins? You should!
Crypto Finance Analysis Consulting: cfa-consulting.ch
Nxt : NXT-LP8G-9NHV-VUQB-58ZZF

TwinWinNerD

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Alright.

How can someone lose more than 100%? Or do you mean it lost 600% of its relativ gains since start?
« Last Edit: December 11, 2014, 12:12:52 pm by TwinWinNerD »

monsterer

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Lets see some forward tests, then you'll have my attention :)
https://metaexchange.info/
NXT<->BTC instant exchange - low spread, no registration

DoM P

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Alright.

How can someone lose more than 100%? Or do you mean it lost 600% of its relativ gains since start?

Leveraging... ;)

But that is not the case. It's -600% on this scale, starting at 0% on October 2013. But you are right, it's misleading, I should comment differently.

Lets see some forward tests, then you'll have my attention :)

It may be too late then... ;)
Have you heard of CryptoCoins? You should!
Crypto Finance Analysis Consulting: cfa-consulting.ch
Nxt : NXT-LP8G-9NHV-VUQB-58ZZF

CryptKeeper

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How often do you adjust the NXT and BTC rates at CCEDK.com to reflect the euro price?
Follow me on twitter for the latest news on bitcoin and altcoins!
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monsterer

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https://metaexchange.info/
NXT<->BTC instant exchange - low spread, no registration

DoM P

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How often do you adjust the NXT and BTC rates at CCEDK.com to reflect the euro price?
Every day, if needed.
But it's more complicated than that.
We have a large Excel sheet with all our investments, and, every day, it downloads the values of everything, add them up, divide the total by the number of shares, and gives us the day's value in term of dollar, euro, btc, and Nxt.
If the value significantly changed from the day before, I'll adjust the buy and sell offers according to it.
Have you heard of CryptoCoins? You should!
Crypto Finance Analysis Consulting: cfa-consulting.ch
Nxt : NXT-LP8G-9NHV-VUQB-58ZZF

kimmel

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hello,

Good to see this projects show up in next; interested; although I have some questions:

- I don't see anywhere "dividends" advertised; so, are you planning to distribute the profit to your shareholders or you rely that the price of the share will adjust to the value of investments behind the share? If that the case; by now, I'm out.

- About the web, I see a big team there...you seem to have experience and see people from the nxtforum onboard which is always + (although scams can happen everywhere) the question is: why a so badly designed webpage??? there's plenty, hundreds of Do-it-yourself, visual editors that let you create professional looking websites in some hours with nice templates; you have quite a big team of people and this scary 90' looking website...that's not what I would be expecting of a top-edge high standard profile traders and tech guys  ???

It would be really nice if you could further explain about your asset

Thanks!! ;D

DoM P

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hello,

Good to see this projects show up in next; interested; although I have some questions:

- I don't see anywhere "dividends" advertised; so, are you planning to distribute the profit to your shareholders or you rely that the price of the share will adjust to the value of investments behind the share? If that the case; by now, I'm out.
As explained in the doc, we will actively maintain the Nxt-CCS pair on the AE, and the Euro-CCS pair on CCEDK. This means that will will reajust the selling and buying prices once per day, every time it is needed.
If the value per share increases, we increase the price. And vice versa.
So no dividend. Works exactly like any standard hedge fund. Dividend are usually paid by companies.

Quote
- About the web, I see a big team there...you seem to have experience and see people from the nxtforum onboard which is always + (although scams can happen everywhere) the question is: why a so badly designed webpage??? there's plenty, hundreds of Do-it-yourself, visual editors that let you create professional looking websites in some hours with nice templates; you have quite a big team of people and this scary 90' looking website...that's not what I would be expecting of a top-edge high standard profile traders and tech guys  ???
The site is still being developed at the moment.
Businessmen and traders finished their job before the devs. So that's our temporary page, to show something.


Good remarks. Happy to answer.
Have you heard of CryptoCoins? You should!
Crypto Finance Analysis Consulting: cfa-consulting.ch
Nxt : NXT-LP8G-9NHV-VUQB-58ZZF

buybitcoinscanada

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« Last Edit: December 23, 2014, 04:42:00 am by buybitcoinscanada »

kimmel

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hey, thanks for your answers. some more questions:

- Are you starting with your full funding or fundraising? when this fundraising stops?

I'm asking this because it's not the same selling "new" shares because you are adding funding to your hedge fund; than spectulating on the shares. I guess there shouldn't be speculation there. The fund can grow up or down, it means the total amount can increase or decrease; but that shouldn't affect the value of the shares. Maybe you are trading with 500.000 eur and getting 15% one day, so the value of the share should increase 15%. If someone gets out of the fund, and next day you have 400.000 eur but get 15% more, the shares should reflect this increase.

could you explain further??

- then are you doing an online-transparent accountancy of our money and how you invest it?? Where?


As you buy/sell and move that money/crypto we should be able to "see" it's "market value". I mean, do I have to believe when you tell me that today your share value is for example 300 eur???

You should be showing and proving us the market value of your investments, notjust telling us. The only way of doing that is with an on-line proof-of-existance of your assets and investments; an excel sheet with some functions may be fine for you, but shouldn't be enough for your investors.

Understand me, I don't mean you are trying to scam; I'm sure you have the best intentions; I'm just making common sense questions on how do we control you move our money, and how do we control if you really win money or loose money. One great thing about crypto is it's transparency and ability to see and control it in real time; there are many opaque-hedge fund in fiat money quite regulated and even like this they keep "scamming" people (see the financial crisis of 2008 with mortgage-backed securities (MBS) and collateralized debt obligations (CDO))...

soo...ok you are a crypto hedge fund, so I guess you are going to act in a TRANSPARENT way, unlike the traditional hedge funds, giving your costumers an online minute to minute accountancy of the funds/crypto and assets you are in; and THIS will be ONE of your KEY VALUES. Right?? Am I wrong?



DoM P

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If someone wipes out the 5% bidwall, when do you replace it?
Yes, asap. That's what we call the liquidity guaranty.
Unless we face a MAJOR sellout (dozens of 5% sell walls wiped in a few hours/days), there shouldn't be any problem with that.
At the very worse, we'd have to delay the sell wall renewals until we have time to convert our investments to euros and/or Nxt and bring them to the corresponding platform.

hey, thanks for your answers. some more questions:

- Are you starting with your full funding or fundraising? when this fundraising stops?

I'm asking this because it's not the same selling "new" shares because you are adding funding to your hedge fund; than spectulating on the shares. I guess there shouldn't be speculation there. The fund can grow up or down, it means the total amount can increase or decrease; but that shouldn't affect the value of the shares. Maybe you are trading with 500.000 eur and getting 15% one day, so the value of the share should increase 15%. If someone gets out of the fund, and next day you have 400.000 eur but get 15% more, the shares should reflect this increase.
I think you understood this right.
It doesn't matter whether shares are bought or sold. The performance of the fund is linked to the quality of our investments.
Let me take an example:
Suppose we have 100,000€ in the fund, with 1000 shares.
  • Each share is worth 100€
  • If we are 100% into bitcoin and the bitcoin rises by 10%, then we'll have 110,000€, and each share will be worth 110€
  • If we are 50% into bitcoin and 50% in cash, and bitcoin falls by 10%, then we'll have 95,000€, and each share will be worth 95€
  • If people buy 1000 shares at this point, the fund will be worth 190,000€, the price of each share will not bulge

Is that clearer?
 

Quote

- then are you doing an online-transparent accountancy of our money and how you invest it?? Where?

As you buy/sell and move that money/crypto we should be able to "see" it's "market value". I mean, do I have to believe when you tell me that today your share value is for example 300 eur???

You should be showing and proving us the market value of your investments, notjust telling us. The only way of doing that is with an on-line proof-of-existance of your assets and investments; an excel sheet with some functions may be fine for you, but shouldn't be enough for your investors.
Absolutely not. The guaranty of our honesty is the fact that we always offer to buy the shares back at 95% of their value. That means we have the money.

Quote
Understand me, I don't mean you are trying to scam; I'm sure you have the best intentions; I'm just making common sense questions on how do we control you move our money, and how do we control if you really win money or loose money. One great thing about crypto is it's transparency and ability to see and control it in real time; there are many opaque-hedge fund in fiat money quite regulated and even like this they keep "scamming" people (see the financial crisis of 2008 with mortgage-backed securities (MBS) and collateralized debt obligations (CDO))...

I perfectly understand your concerns. That is why we do the following :
  • Communicate on our own names
  • Create a company to back this up
  • Guaranty the liquidity, thus guarantying the fact we do have the money
  • Use my pseudo as proof of honesty. I've been a Nxt treasurer for months, and haven't run away

Now, why NOT being transparent?
  • Being transparent is a really hard thing to do. We could say we have something, but how do we prove it? We are certainly not giving you access to our Kraken, Bitstamp, BTer, CCEDK, and other platforms' accounts, right?
  • The choices we make are the results of months of work and years of studying. We are not going to give this up for free so people can just replicate us
  • We intend for this fund to become quite large. If we succeed, saying what we do will actually change the market data. And that would be very bad. We are not market makers



I hope this will clear your concerns.
Have you heard of CryptoCoins? You should!
Crypto Finance Analysis Consulting: cfa-consulting.ch
Nxt : NXT-LP8G-9NHV-VUQB-58ZZF

kimmel

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ok, I understand some more questions...

But then my concerns; maybe 5% is not enough to "rebuy" or create buy walls. Actually through basilea III if my memory doesn't fail, banks are nearly 10% of costumers funds (that's not exactly the amount but is something around there I think); so a big european bank, ok, maybe 10%, but you are not as big as them (by now ::) ) so I guess your reserve should be greater.

Then what I suggest; proof-of-ownership by showing us you control some wallets:

Why not create:

 wallet nxt1
 wallet nxt2
random small amount transactions announced through your webpage and then done once a week, to show you effectively own the wallets. Also could create much more complex ways of doing that; just telling a simple fast easy way.

And if you are trading with many other crypto; then; show some of that wallets with the same system: wallet1 - wallet2 for proving - random transactions announced through your webpage and then done.

 We don't need to see all the funds; but we might want to see that you actually own an important amount of funds once a week.

Of course between 100% transparency and 0% transparency there are many "colours".

So I guess you can easily achieve a way of showing your investors you are in control of some wallets with enough founds to give us some guarantee.

I guess you are flexible on that and open to suggestions from your costumers. Are you?  ::)

What could you do for us? What is your transparency offer to your clients?

DoM P

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But then my concerns; maybe 5% is not enough to "rebuy" or create buy walls. Actually through basilea III if my memory doesn't fail, banks are nearly 10% of costumers funds (that's not exactly the amount but is something around there I think); so a big european bank, ok, maybe 10%, but you are not as big as them (by now ::) ) so I guess your reserve should be greater.
Actually, we have 2 sell walls at 5%.
One on the AE in Nxt, one on CCEDK in euros (this one not yet available, funds are being transfered)
More would kill the fund's performance.

Quote
Then what I suggest; proof-of-ownership by showing us you control some wallets:

Why not create:

 wallet nxt1
 wallet nxt2
random small amount transactions announced through your webpage and then done once a week, to show you effectively own the wallets. Also could create much more complex ways of doing that; just telling a simple fast easy way.
[...]
The details you are asking for are confidential. We will not show wallets, accounts (and pay the withdrawal and deposit fees), and bank accounts with euros.
No one would ever do that.
We could show that to an auditing firm, but not to the public.

Quote
And if you are trading with many other crypto; then; show some of that wallets with the same system: wallet1 - wallet2 for proving - random transactions announced through your webpage and then done.

 We don't need to see all the funds; but we might want to see that you actually own an important amount of funds once a week.

Of course between 100% transparency and 0% transparency there are many "colours".

So I guess you can easily achieve a way of showing your investors you are in control of some wallets with enough founds to give us some guarantee.

Again, our guaranty is that we buy back, so anyone can get out, any time.
We are not going to go through the lengthy and expensive process of moving funds around once a week.
Which would prove nothing more: We could run away right after that, too.


Quote
I guess you are flexible on that and open to suggestions from your costumers. Are you?  ::)

Actually... Not that much. Open to suggestions, yes. To transparency as you describe it, clearly not.
Once a month, as said in the fund's presentation, we will show charts and numbers.
The remaining data has to remain confidential, like all other funds do in the world.

Quote
What could you do for us? What is your transparency offer to your clients?
No more transparency than your bank gives you.

Sorry, I don't want to sound harsh. But what you are asking is for us to work for free, to kill the market, and to spend time and money in that process.
Have you heard of CryptoCoins? You should!
Crypto Finance Analysis Consulting: cfa-consulting.ch
Nxt : NXT-LP8G-9NHV-VUQB-58ZZF
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