[APIS] | Changing the Scope of Investments and Hedge-Fund Utilization
The Intention of APIS:
The APIS (Advanced Property Investment System) token is the world’s first digital token providing exposure to hedge-funds with a proven track record of profit!
Proven Track Record?
Through simulated (and backtested) returns from the years 2009-2015, the initial Fund had generated gross annualized (and audited) returns of 70% over a existing 28-month span.
It is also important to note that there is NO minimum buy amount for (non-US) investors.
The Difference in APIS Hedge-Funds:
Hedge-Funds are often locked away for long periods of time, but APIS tokens
will be immediately re-sellable. This type of '...tokenized fund structure (decentralizes and) democratizes access to investments that previously required substantial capital commitments, making previously private pooled investment vehicles accessible to the average non-U.S. investor (APIS, WP, p.5).
Blockchain['s] Use:
The APIS WhitePaper indicates that 'every time a token is exchanged, the transaction is recorded on the Stellar blockchain. This allows the issuer to track the location of all tokens without major administrative overhead costs..'
The blockchain technology utilized will provide a natural, immutable ledger with the transparency that will change the complexion of investments completely. This is world changing technology and will breach how finances are dealt with in general.
Token Redemption:
Users who choose to redeem their tokens must submit a request to do so, and once the redemption occurs, that token will be taken out of circulation.
As of now, APIS will only open token sales to Non-US investors. According to the APIS timeline, August is still the 'ICO phase'. Each APIS token is equivalent to $1 USD. There is a $50,000,000 hard cap to ensure the ecosystem eventually flourishes, and from September 1st onward the tokens will be sold publicly (to indeed fill the cap). Also listed in the WhitePaper, 'the [token] Issuer will not collect management(administrative) or incentive (performance) fees from investors or tokenholders after tokens are distributed. While traditional funds typically charge an annual management fee of 2% plus an additional 20% based on performance to cover administrative and overhead costs, the Manager will not do so'.
The lack of fees alone makes APIS a completely drastic change to the way people will invest, and to whom exactly they trust their (digital) assets.
Risk Management in a Volatile Market: </b<
Although there is no assurance of investment return, there is a high level of security posed with the APIS platform. 'The Fund uses an aggressive risk management algorithm, adjusting options positions that have gone into a “danger zone” (where losses would begin at an accelerated rate) back to safety' (APIS, WP, p.10). 'Redemption of Tokens for their proportionate value of the Fund’s assets will occur at regularly scheduled intervals, with the first redemption occurring 12 months after Token issuance (APIS, WP, p.10).
The Fund also provides an allowance of entering and exiting trades on a daily basis. Tokenholders will also be able to feel confident with the constant flow and influx of tokens within the ecosystem (as that type of liquidity and volume creates value.
All in All:
APIS looks like a very promising platform with the intention to empower users and help their digital assets grow. I will keep up on updates about whether the US may be allowed to purchase tokens eventually, but as of now, things look up. To the moon!
APISWebsite
APISWhitePaper
This article was created in exchange for a potential token reward through Bounty0x
Bounty0x Username: @rocketmutt