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Author Topic: BTCD mutual fund and market-making asset, MMBTCD  (Read 63745 times)

Cassius

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The BTCD asset MMBTCD (8122396658538927693) has sold out in a little under three days. 1,000,000 NXT were raised from the sale of 200,000 assets at 5 NXT each. Thank you to all investors. You can read the original asset description here. 600,000 remaining assets have been sent to NXTinspect for escrow (tx 6380943481629195485). These may be used to raise further funds, as necessary, but only if the price reaches 10 NXT. None of the 200,000 assets retained by the issuers - Coinomat, Azeh, Cassius - will be sold below 10 NXT either.

Trading account: http://nxtreporting.com/?a=NXT-MXYZ-URGH-HTF5-HE9AU&c=EUR
Portfolio/cash account: http://nxtreporting.com/?a=NXT-PNVQ-B5RN-QHHR-3BC7U&c=EUR

Asset update: mutual fund strategy
The aim of the asset is to reward BTCD holders and stakers by bringing liquidity to what is a very thin market. Payouts will be in mgwBTCD / superBTCD, weekly on Wednesdays, starting 27 May, putting gentle upward pressure on the market.

Asset holders will be aware that BTCD has low volumes and the price has suffered in recent months, for reasons explored here. Unlike NXT arbitrage and market-making assets, there is very little volume to work with, limiting profits and the potential for dividends/growth/BTCD price increase. It is therefore MMBTCD's intention to inject liquidity into the market as well as work with what there is, hopefully bringing about a virtuous cycle.

This will be achieved by investing a proportion of the ICO funds in a portfolio of revenue-generating assets. The aim is to create a balanced portfolio, chiefly low-risk and highly reliable assets, with some higher-potential elements such as forex/PAMM. We appreciate that the nature of this asset has evolved and is continuing to evolve with feedback from investors (particular thanks to whale), though its aims remain the same. The purchase of revenue-generating assets as well as bot activity makes it more like a mutual fund than a pure market-maker like MMNXT, which was the initial model. To our knowledge this is the first asset of its kind, similar to a multipool or mining assets in principle (which we do not plan to include), but without the risks inherent in these. We believe this gives the asset a much stronger outlook.

The proposed division of funds is:
  • Market-making and arbitrage (AE, Poloniex, Bittrex): 500,000 NXT equivalent
  • Revenue-generating portfolio/cash reserves: 500,000 NXT
  • BTCD capitalisation is covered by the asset issuers

Coinomat is converting a proportion of the NXT to BTC to trade on regular exchanges. (He can use his own bots to gain a price 2-3% below market for this.)

For the asset portfolio 100,000 MMNXT has been purchased (txs 3243262207740160278 and 5783558449155573656). This will provide a solid baseline of revenue to convert to BTCD. In the coming days and weeks we will be making strategic purchases of other assets. Investors will appreciate that we cannot discuss these openly before purchase because that is likely to lead to opportunistic traders driving the price up.

We'll aim to keep you updated regularly. Please ask any questions here or on Slack.
« Last Edit: May 20, 2015, 02:00:36 pm by Cassius »
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whale

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It is great to see some established NXT members in the community releasing an asset. I can confirm that NXTinspect is holding the escrow for MMBTCD and will not release the remaining funds until the asset's price reaches (or exceeds) 10 NXT.
« Last Edit: May 19, 2015, 01:27:15 am by whale »

Cassius

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Update. For transparency, we have two separate accounts:

Trading account: http://nxtreporting.com/?a=NXT-MXYZ-URGH-HTF5-HE9AU&c=EUR
Portfolio/cash account: http://nxtreporting.com/?a=NXT-PNVQ-B5RN-QHHR-3BC7U&c=EUR

Some funds are also kept on-exchange for arbitrage and trading.
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Cassius

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Update:

As I posted yesterday, coinomat has very generously donated 100,000 coinomat assets to MMBTCD. To clarify, these are personal assets. They were already dividend-paying, and will not dilute existing shareholders' stakes. Coinomat is taking the hit on these because he believes in this project.

The confusion yesterday was around the coinomat1 assets. Somebody raised the question as to whether the donated assets would dilute the assets of existing holders. Whilst the coinomat assets were personal assets, the coinomat1 assets came from the Issuing Account and so that was a legitimate criticism. Thanks for drawing that to our attention: it was an oversight. Coinomat has sent these back to the Issuing Account.

I don't think anyone bought or sold MMBTCD specifically on that information, and no dividends were paid on coinomat1 (they go out on Mondays) but as a goodwill gesture coinomat has sent a further 60k personal coinomat assets to the MMBTCD portfolio account. I will also point some earnings from an existing personal mutual fund asset there for the next month. I'll send these in the form of mgwBTC each Monday.

Overall this should total around 3500 NXT equivalent, or 45 BTCD. This should give MMBTCD a great kickstart while we allocate the remainder of the portfolio and get bot trading up to speed. This is aside from any further revenues from our 100k MMNXT (already purchased), and bot trading (active on Poloniex and AE, with Bittrex to follow), or any other portfolio allocations (to be decided in the coming days/weeks).
« Last Edit: May 25, 2015, 10:19:15 am by Cassius »
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Nippybrit

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Thanks for the clarification, it's good to be aboard!
Get 5 EUR off your first crypto purchase with coinimal.com! (note that I also stand to gain if you use my referral link)
omg, password to a NXT account! : badgersbadgersbadgersbadgersmushoroommushroom!ohlookasnake!

Cassius

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There is a 50,000 buy wall at 5 NXT - 250,000 NXT or 12.5% of issued assets.
If anyone regrets buying in, now is your chance to get out. :)

Should have some more updates in the next day or two.
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TwinWinNerD

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100k coinomat ---> 0.5 NAV to all MMBTCD assets. that is very generous. 10% donation

Cassius

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100k coinomat ---> 0.5 NAV to all MMBTCD assets. that is very generous. 10% donation

Yes, it means our initial payouts will be quite good.
 
Seems there has been some buying today. Mostly one big buyer by the look of it. Not sure why they have chosen now. Hopefully things will not get too far ahead of themselves. Steady, sustainable growth is what we're after.

Incidentally, I take MMNXT as the closest analogue for this asset. MMNXT has been paying out reliably for many months. At 0.6-0.7%, this means the price of 1.0x represents around 150x weekly dividends. That seems to be the multiple that the market has decided for a stable asset from a well-known issuer. On that logic, MMBTCD is valued reasonably for its earnings right at this point in time, plus a little extra for the potential represented by the remainder of its portfolio (400k NXT unallocated) and trading bots.
« Last Edit: May 26, 2015, 04:21:15 pm by Cassius »
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prometheus

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Looking forward to this asset. Nice work guys, I think this'll be a good one

Cassius

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2,364 NXT just got paid into our portfolio account from the coinomat assets. At current market rates that represents 31 BTCD.
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Cassius

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I will also point some earnings from an existing personal mutual fund asset there for the next month. I'll send these in the form of mgwBTC each Monday.

http://nxtreporting.com/?tr=14780776373609709512
My MGW deposit address generation is playing up, so I just sent as NXT.

Edit: at current market rates this totals around 4,300 NXT for the week, which comes out as a total dividend of ~59 BTCD.
« Last Edit: May 25, 2015, 03:46:28 pm by Cassius »
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JamesList

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did this asset paid dividend or why many people received mgwbtcd?

Cassius

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So a bit of a round-up:

First dividend has been paid. The total NXT value was:
1230 (trading bots)
4000 (mistaken payment: bonus!)
1293.4 (temporary kickstart from separate portfolio while we get things going - see above)
2364.52253 (coinomat assets)
632.11379421 (MMNXT assets)

Which gives us...

MMBTCD (8122396658538927693) Total issued assets: 1000000, Assets to be distributed to: 400000
Summary of proposed distribution of 134.06 [mgwBTCD] assets to 65 assetholders
Based on ownership at timestamp 47424257 (Wed, 27 May 2015 09:24:17 GMT)
Message included-->Dividend from asset MMBTCD(8122396658538927693): MMBTCD dividend

A few other pieces of news:

We have acquired 16,000 BTCOR assets. We were intending to pay 100k NXT in all, but only 96k NXT were available at the given price in the end. 4k NXT was sent back, which we mistakenly incorporated in the dividend payment. This will just have to be an unexpected bonus for this week as we won't try to recoup it by reducing future payments. It's not a big deal in terms of the overall portfolio funding, because we were able to secure the BTCOR assets at significantly below market price. This should put us in a strong position for the future and it's another great asset to have in the portfolio. BTCOR is a great company and we have a lot in common with them, so I'm looking forward to working together to benefit both parties. It's also worth saying that house was extremely gracious when we had to back out of the initial arrangement for a tranche of assets at market price, when the lower offer suddenly came up. Big thanks all round.

Another piece of news is that BTCDdev is working on a call that will be incorporated into the BTCD protocol, enabling anyone to create a list of stakers and pay out to them. This is what we will use to pay 10% of MMBTCD dividends to stakers, and what will be used for all the other BTCD revenue streams coming online in the next few months. Hopefully this should be up and running next week, if not before. Meanwhile, assetholders got that 10%, so another little bonus.

Lastly, coinomat has been working on the Bittrex bot, which should be up and running next week. AE volumes are low, Polo ones quite a bit better, and hopefully adding the third bot should make a reasonable difference to dividends.
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prometheus

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3.38 BTCD received, thank you!

Cassius

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Quick update: BTCDdev has done a great job creating a call that will allow payment to stakers, but it needs a bit more testing. We'll hopefully have this working for next week's dividends.

Bear in mind that next week won't include the 4,000 NXT we paid by mistake this week. But it may include dividends from our shiny new BTCOR assets, if they come through by then (they're monthly). The rest won't change much, except that coinomat's Bittrex bot should be trying out its moves by then. Otherwise, we're researching the best options for the portfolio and will make purchases at the right times.
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Cassius

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Received    2364.68543200 NXT    0.11421431 BTC    24.23 EUR    1 NXT    13792481396542437643    01.06.2015 10:28
Received    5307.33892479 NXT    0.25634447 BTC    54.39 EUR    1 NXT    6862225720278939840            01.06.2015 10:04

A couple of very nice dividends just come in from Coinomat and BTCOR. BTCOR is monthly, but it means this week's MMBTCD dividend will be impressive.
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Cassius

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MMBTCD (8122396658538927693) Total issued assets: 1000000, Assets to be distributed to: 400000
Summary of proposed distribution of 135 [superBTCD] assets to 70 assetholders (rounded up)
Based on ownership at timestamp 48028045 (Wed, 03 Jun 2015 09:07:25 GMT)
Message included-->Dividend from asset MMBTCD(8122396658538927693): MMBTCD dividend

A good week, thanks to a boost from BTCOR dividends and coinomat’s Polo bots coming online. Bittrex bots should be up and running next week. Although the payment appears similar to last week, it is actually much higher - BTCD has strengthened a lot in the last week compared to NXT.

90% of revenues were paid out to assetholders. The remaining 10% will be distributed to stakers later today. Big thanks to BTCDdev, who has written the calls and Python script to do that.
« Last Edit: June 03, 2015, 09:37:09 am by Cassius »
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whale

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Another incredible dividend, thank you! MMBTCD is off to a solid start.

Cassius

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We have purchased a further 150,000 MMNXT at 1.1 NXT each = 165,000 NXT. These were coinomat's MMNXT, held on Poloniex. The balance of the MMNXT issue had already been sent to NXTinspect for escrow until the price reaches 2 NXT (i.e. no new MMNXT will be issued until then).

This is a stopgap measure. We have a substantial amount of funds in our portfolio account, and while we do not want to rush into asset purchases, we also did not want this money sitting there doing nothing for assetholders. The best solution seemed to be to buy a tranche of low-risk, reliable assets that provide a solid dividend and are liquid enough to sell if a better option comes up. MMNXT fits that bill well. We will hold onto them either until we need some spare NXT to pick up a different asset, or until the price rises to a point where it makes sense to sell some. Now that supply is capped until the price = 2, there's good reason to believe that will occur, giving us further funds to work with and increasing MMBTCD's NAV.
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Cassius

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Another pretty good week, despite there being no BTCOR dividend this week (it goes out monthly). Coinomat’s bots did a pretty good job; volumes on the AE were up a little, and a large spread on Polo (buy at 0.004, sell at 0.005) meant decent profits. The Bittrex bot is coded and in testing, so hopefully we’ll add that in the coming week or so.

Result:
MMBTCD (8122396658538927693) Total issued assets: 1000000, Assets to be distributed to: 400000
Summary of proposed distribution of 112 [superBTCD] assets to 70 assetholders
Based on ownership at timestamp 48634928 (Wed, 10 Jun 2015 09:42:08 GMT)
Message included-->Dividend from asset MMBTCD(8122396658538927693)

Very nice, thank you to all. Azeh will send out stakers’ dividends later today. Thanks to Mivond and one or two other donations, they will be much higher than last week.

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