Topic: [idea] An altcoin investment service with a twist. (Read 270 times)

Yes a majority voting system is what I'd go with.

If we only use +2 green trusted members or higher then I'd be happy to use a multisig with those people and a majority voting system could be accomplished that way (depending on  who is in the scheme).

Independent investments could follow the scheme although it might be useful if a voting system is used to ensure that everyone puts in the same amount. Maybe 1 btc, a half or 0.1 or even 0.01 just to get things going and tested. A multisig address is probably easier to handle and use than a security token system as the e are trust issues with maintenance unless you're wanting to pay a fee for hosting on eth or something.

The FCA and the SEC are both controlled by the banking elite. I host in the US, so any site I hosted needs to comply with SEC and FCA regulations, and it makes life easier if you try to follow their guidelines, especially if you have an international range of members. If fact, if you have an investment policy which is based on voting and suggestions by members, then I believe it does not have to have government approval. I think you are suggesting this structure anyway.

I don't think any fiat would be a good unit of valuation. In fact Bitcoin, despite its volatility, may be the best. Members can always buy a portion using fiat, and transfer that easily. You need to use Bitcoin to buy most of the alts. You will also need to decide on the wallet holder(s), and I would suggest that it needs to be a member with at least a green trust ranking of 20.

I'd be interested in participating in two types of club. One would be a simple investment club, and this could have individual investment, or a group holding. The other would be a more sophisticated club, and would include the use of tradable security tokens, and their value would be determined by the value of the club investments. I'd be happy to provide domains and hosting if members felt that this would be useful in either case.

I was thinking of making this one with a fixed start date.

If you pay into something with all of the terms stated directly then you have stipulated to read and agree to that contract (payment is usually what is used as a form of contract nowadays as handing £10 to a company is deemed a better form of agreement than actually signing something as it's easier to prove the agreement - It's similar to coinbase getting you to send £2 to them when you make an account with them).

As long as everything is decided on at the start then any investment or reinvestment sent to the scheme from the investors can prove an agreement of the aformentioned terms.

We're not governed by the SEC we're governed by the FCA who stipulate "don't mention us and we won't come after you as we have no idea how these computer coins work".

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As an addition to this, a way to withdraw funds from a timelocked transaction timed for 10 years in the future would do alright for me... In a way I think it might be better to do something where all that is shared is knowledge and everyone takes their own due dilligence.

This was the sort of thing I was considering for the crypto coin tree. My idea was to invest in coins with potential, and a very low initial value. At the moment I'm collecting BitBlocks and Basic Attention Token for no investment, other than a bit of time. I didn't want to set stop loss or auto profit taking levels, as I thought it was better to make those decisions by community discussion. This will also allow a member to buy coins from the pool if he wants to speculate on his own account.

I wanted to create a security token to reflect a member's investment, and one would need to work out how to value a new coin that a member was adding to the pool. Maybe the current value of Bitcoin should be used as the yardstick. Everything needs to be based on community voting to avoid falling foul of the SEC as well. Another problem is the wallets and blockchain maintenance. It would need to be centralised, and that may introduce trust problems. Not just with issues of honesty, but safeguards against accidents.  For example, if I was in charge of the wallets, and I managed to kill myself in a motor accident,then there needs to be a mechanism for somebody else to take control.

It was all starting to get a bit complex, and that it why I put it on the back burner for a while.

Ah yes, I forgot I'd mentioned thst...

Eth, ltc and doge from what I've seen do move by 2x now and then but seem to have a value in btc that they don't pass both at their highs and lows. It's true that if another coin does fall thats new then it won't likely reach its previous high. Decred and a few others are a good example of essentially perpetual loss coins... Which is an extreme example of what can happen without a stop loss...

I mentioned implementing a stop loss because your OP talked about having a stop loss:
A 50% drop is a very large drop, most coins do not move that much, and when they do, they are generally very new coins with a small market cap and is susceptible to manipulation. If a coin has fallen 100%, this means it is trading at zero.

A coin may rebound after falling, but it will not necessarily rebound back to its prior highs. A stop loss is a good tool for a trader to cut his losses, and redeploy his capital into another, possibly profitable trade. 

Hi thanks for your response. The idea behind not adding a stop loss is that, if we use long standing currencies that are fairly well known, the value is more in the coin to me than it is in its conversion.. I feel the name and the community really decide the market cap of a coin.

My idea is that if a coin has fallen by 50 or 100% recently and its got a strong community or been round a few years, it's likely going to go back up... Usually those sorts of coins don't shoot to zero either even under extreme hacks like we had with ethereum.

I'd be happy to add stop losses and take profit levels but I'd rather do it manually than automatic because I don't think people should ad too much on exchangea as theyre not the best places to store them. But it does mean we'll get liquidated at some point automatically though if people are worried then their funds can remain there.

I don't think there is any coin that is ever "set to rise soon" with any reasonable certainty. If there was, it would have already risen because many people would be buying it.

What you are describing is having a criteria in which coins will be purchased and sold as a trading strategy. You could decide to sell a coin if it raises above a certain technical indicator, or has risen by a certain percentage amount, and as a stop loss, you could sell if it meets some other criteria. After it has been sold, you can purchase the coin back if it meets some technical criteria, rinse and repeat. This could be automatic or done manually.

This sounds like something that would be fun for me.

I've been looking at what LoyceV did and I feel it can be improved upon somewhat. I sent these improvements but I think they're somewhat difficult to pull off for what he was tryting to make (it being fixed to 10 months).

Instead I want to propose the following:
• Everyone in the group participates 1 altcoin they have in mind.
• The coin must have fallen or be set to rise soon (if the coin generally doesn't go below a certain value then this is it).
• There must be a target for how much the coin is set to rise and it must be over 50% (for a lot of coins there's usually a good chance of this happening) - by this I mean there should be proof it has done it before.
• A stoploss could be put in place that will be around 10% of the value of the coin.
• Thre could be a potential expiration period as I see no reason in keeping the coins held forever, once the expiration has passed, anything over 10% should be what the coins are sold for.

Have I overcomplicated this or should this work? I'm thinking it would be a good idea more for experience traders so that we are able to diversify our assets a bit more as it's easier to watch over 1-3 coins as it is to watch over 10?
Most long standing coins bought strategically should profit this way.