AiCoin - Machine Learning Crypto Hedge Fund (ICO closing TODAY on midnight: Monday 28th of August)
I'm here today to introduce AiCoin, which is likely the first hedge fund / venture capital fund in the crypto sphere that is accessible to anybody.
If you have any further questions please feel free to ask them, I should be able to answer just about anything regarding this project due to the fact that I've translated and worked through all the documents.
If you enjoyed the post and would like similar analyses of other projects in the future, please leave a short comment and/or like the thread.
What is it?
AiCoin is a fund that consists of two parts, namely a Trading Pool and an Investment Pool. The profits of the Trading Pool partially flow into the Investment Pool. The goal of this strategy is to ensure short-term gains while simultaneously creating opportunities for large returns in the long term. As such, this project is uniquely placed to offer consistent returns to its investors over any time horizon.
The Trading Pool
The Trading Pool is directed by a state of the art Machine Learning algorithm that runs on Google's TensorFlow. The biggest advantage of Machine Learning is the capability of considering incredibly large amounts of data and turning them into valuable insights and highly accurate predictions. This is something that no human or traditional quantitative analysis can achieve.
The same technology builds the basis for almost everything that you use on the internet in your daily life, be it your favourite search engine, Amazon, Netflix, Youtube, Facebook, Twitter, you name it. It is also the foundation of self-driving cars.
As such, it is no surprise that a strong Machine Learning algorithm is in a unique position to reap profits during bull and sideway markets, while simultaneously avoiding the declines during bear markets. This fact is also reflected in the live performance of AiCoin's trading bot (see ouraibot.org), which saw an increase of 125% within 15 weeks and thus raised the initial portfolio with a value of $23939 to $54045. For comparison, Bitcoin only increased by 92.5% before declining in the same time frame. As such, AiCoin outperformed the Bitcoin benchmark by an astounding 32.5% while simultaneously avoiding Bitcoin's price decline.
Furthermore, Machine Learning algorithms learn from data, which means that the longer the bot runs, the better it gets at predicting profitable trades and at successfully navigating bear markets.
As such, the Trading Pool alone is going to provide profits that are extremely likely to outperform Bitcoin by a large margin.
The fact that the Trading Pool will trade several of the top 10 currency pairs will ensure that liquidity is not going to be an issue regardless of pool size.
However, as already mentioned, this is only one part of AiCoin. Half of the profits that the Trading Pool achieves will be redirected into the Investment Pool.
The Investment Pool
The Investment Pool is going to invest into promising ICOs or traditional seed-stage startups in the areas of Blockchain and Machine Learning. Both of these are currently seeing tremendous momentum and will continue to do so in the coming years. Indeed, both the Blockchain and Machine Learning algorithms are anticipated to become the pillars of the next stage of technology, with the last comparable technology being the Internet itself.
The team behind AiCoin has several decades of experience in the world of finance and will carefully screen potential investments before choosing up to five for voting by the collective of AiCoin holders through the Voting Central that is a unique feature of the AiCoin wallet.
The Voting Central
The Voting Central is a part of the AiCoin wallet and allows any Token holder to participate in votes that concern all matters regarding AiCoin. These include the appointment of board members, deciding on future investments through the investment pool after screening and due diligence through the investment board, votes regarding the continuation of AiCoin, and others. The votes are weighed by the respective amount of tokens that a voter holds at the time of the vote. This feature is unique in the crypto world, as funds such as Iconomi do not offer this whatsoever and force you to be at their mercy.
Fee Structure
AiCoin takes 10% of the initially raised funds to cover for all expenses and management fees. Whenever the portfolio reaches a new All-Time-High, 10% of the difference between the old and new ATH will be paid out to the founders of AiCoin. This fee structure is in line with traditional hedge funds, indeed it is quite a bit lower.
This fee is also drastically lower than that of Iconomi in the long run, which charges an annual 3% of the total amount of held funds. Unlike Iconomi and similar projects, AiCoin is thus directly motivated to ensure the continuous success of the fund as they will not receive any money if they do not create repeated profits and keep reaching new All-Time-Highs.
It should be self-explanatory why a fund manager that only profits when the fund is successful is vastly superior to a fund that collects money even when the fund is marking red numbers.
Who is AiCoin for?
It would probably be easier to ask who it is not for. If you are a hedge fund manager, a quantitative trader with decades of experience in finance and access to state-of-the-art technology, then you may or may not be able to outperform the AiCoin fund on your own.
Everybody else is statistically expected to be dramatically outperformed by AiCoin on any time scale, be it short, mid, or long-term investments.
As such, anybody who would like a very strong investment that does not require much or any attention on their part is going to benefit hugely from an investment in AiCoin.
Anyone who wants to actively participate in the decision making process of ICO and start-up investments of the fund can do so as well through the voting mechanism.
Inexperienced investors can use the opportunity of the transparency that AiCoin offers to learn about investing and trading without having to risk losing capital by making mistakes of their own. They can just watch and learn from the decision making process of AiCoin while simultaneously watching their investment grow first hand. This is something that only Bitcoin itself offers in the crypto-sphere and AiCoin is bound to outperform its benchmark regardless.
Due Diligence
AiCoin is going to register as a legal firm in Singapore. I've translated both the Whitepaper and Legal paper for AiCoin and I have not been able to identify any risks that do not stem from counterparty failure or a poor performance of the trading bot. The counterparty risk is always there (think exchanges getting hacked or similar) and AiCoin has made it very clear that they will be mitigating this risk to the best of their capability. The bot on the other hand has been live trading with great success and there is no reasonable cause for doubt about its capability for me as a Mathematician. Going through the Blog and the Whitepaper made it clear to me that the developer of the algorithm knows what he's doing and understands state of the art algorithms, resources and tools in the field of Machine Learning. The bot performs as I would expect from somebody with that level of expertise as well. As such, the Trading Pool alone is enough to secure against loss of capital for any reasonable event. The only conceivable possibility of a trade failing would be a start-up or ICO failure, which will not cause any losses for investors since these investments will be made with trading profits. The investments will be carefully analyzed for their capacity of succeeding by highly experienced investors, which lowers the chance of default below the level of any single individual. Furthermore, the risk of the Investment Pool making losses is further mitigated by having up to 5 investments per investing period.
Overall, profits that outperform the stock markets by a large margin are to be expected beyond any level of reasonable doubt.
The legal paper has left no conceivable room for any "scam" either. In fact, every ambiguous point that I have come across during the translation of the legal work has been addressed and adjusted immediately the moment I've brought it up.
With all this said, I still recommend that you do not blindly take my word and do your own due diligence process. From my perspective this is an exceedingly rare opportunity for one of the greatest investments period, once you consider that the majority of people is not able to invest into VCs, Hedge Funds and similar.
Accepted Coins
You can invest using Bitcoin, Bitcoin Cash, Litecoin, Ethereum and Ethereum Classic.
Referral
If you found my post helpful and decide to invest in AiCoin, you can choose to support me by up-voting this post and/or by investing in the ICO through my unique referral link: https://aicoin.io?reference=nalien
To make the referrals more interesting, I've decided to pay out 25% of the total referred amount to the highest contributor. In order to participate in this, please take a screenshot of your AiCoin page and make sure to save the deposit address, the address from which you've sent your contribution from, as well as the transaction ID for your contribution. The highest contributor will be the contributor that sends the most combined funds through any cryptocurrency that is accepted by AiCoin.
Of course, you may always invest into AiCoin without going through my referral link and I would recommend doing so before not investing at all.
Thanks for sharing. Can you explain how this differs from Numer.ai (NMR)?
Certainly.
Numer.ai is playing a different market for starters. AiCoin focuses on trading cryptocurrencies as well as making VC like investments in very early staged start-ups, as such they differ quite drastically.
Since Numer.ai is focused on the stock market, it does not have access to the type of start-ups that AiCoin does and can only invest in firms that trade on the public stock exchange. Stocks in general have a far lower volatility than cryptocurrencies and they exclude the "ultra-high" reward type of investments that venture capitalists play in.
Another thing to watch out for with Numer.ai is the fact that stock markets are not nearly as inefficient as they claim. In fact, stock markets are very mature and Machine Learning / Data Science has been applied to them for years now.
The biggest traditional hedge funds have hundreds of millions and sometimes even billions of dollars at their disposal and are thus in a position to throw overwhelming amounts of resources at hardware, software optimization and big data algorithms. And they have been doing this for a while. As such, I have severe doubts about Numer.ai being capable of reasonably competing with these big players in the stock market and there have been hedge funds that attempted to play the data science game in the stock market with no success.
I am certainly not saying that Numer.ai is incapable of competing, but it is highly unlikely given the maturity of the stock market and the overwhelming resources of its participants, which include the world's largest hedge funds and investment banks.
AiCoin on the other hand focuses on a new market, namely cryptos for its trading portfolio. This market is indeed new and highly inefficient with very few big players having dedicated the type of resources that would make Machine Learning trading highly successful.
On top of that, AiCoin offers the opportunity to participate in Venture Capital investments through its investment pool (this happens automatically for token holders), which is a highly profitable field that the majority of people on this planet wouldn't get access to even if they tried.
Becoming a VC investor normally requires very large amounts of capital, while AiCoin offers the opportunity to participate in that market with literally any amount of money.
The documentation that Numer.ai offers is also very lackluster to me as a Mathematician/Statistician. The information provided is very basic and could be written up by a person that has taken a free online course in data science or statistics.
While it's certainly possible that Numer.ai chose to keep technical information brief on purpose (since most investors wouldn't properly understand the details anyways), I could not find anything that got me personally interested.
In short: Numer.ai trades stocks and has to compete against multi-billion dollar corporations, hedge funds and investment banks.
AiCoin trades cryptocurrencies and offers the unique opportunity to participate in venture capital investments for the anyone and any amount of money, while currently having no comparable counterpart/competition in the field.
Congratulations @nalien! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
You made your First Comment
Award for the number of upvotes received
Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOP
Interesting! Nice! My upvoting power has exhausted so sorry i am unable to upvote such a lovely article hope you don't mind fella
PD: join me in this world of steemit looking my posts, rare content about this world, maybe you like it, maybe not, anyways, We can grow up together follow me and I follow you! :D
Thank for share information.
Good luck.
Your post is promoted. Promotions make SBD & STEEM stronger.
Your reward is an upvote and 1.75 SBD extra promotion.
Good job, see you next time in
Promoted
! ;)#steam4steem
Congratulations @nalien! You have completed some achievement on Steemit and have been rewarded with new badge(s) :
Award for the number of upvotes received
Click on any badge to view your own Board of Honor on SteemitBoard.
For more information about SteemitBoard, click here
If you no longer want to receive notifications, reply to this comment with the word
STOP
Thanks for sharing. Need to investigate this subject.
Informative one
Following and up voted! So much great information in one place. Thanks for all the hard work and DD you have done
I was interested in the project myself anyways, so I just wrote up for others what I have found. Glad it was useful to you!
make sure u do research before investing, sounds too good to be true - also this is members first post
very good said I see you dont have crowd sentiment