Topic: [PRE-ANN] Crypto Arbitrage opportunity – feedback request for ICO (Read 75 times)

Dear All,

▪   We are an experienced fund management team based in Western Europe coming out of the hedge fund industry with 10-year track record in arbitrage strategies (trading equities). We have developed a rich technology set for systematic investing using advanced algorithms, including an automated trading platform with prime brokerage houses (a.o. Goldman Sachs).

▪   We plan to offer ICO investors a safe and simple way to earn a profit from the Cryptocurrency Market, by benefitting of arbitrage opportunities offered by the strong volatility in cryptocurrencies. From our initial results the arbitrage strategy is generating 100-600% annual returns (depending on the volatility of the crypto markets). To give a specific example, we applied one of our strategies developed initially for equity trading to BTC trading. The back-test of this strategy using real-life BTC pricing achieved a return of 270% over the last 5 months.

▪   Benefitting of our track-record and technology, we are currently exploring the launch of an Initial Coin Offering (“ICO”) for an automatic arbitrage strategy in cryptocurrencies, starting with Bitcoin (BTC) and Ethereum (ETH).

▪   Using the proceeds of the Pre-ICO Sale, we plan to build a fully automatic Arbitrage Platform to enable investors to automatically profit from coin price differences across markets (cash/futures/other derivatives), across multiple crypto currencies, and among exchanges, while remaining market-neutral.

▪   For ICO funds utilization, we see two stages:
       ▪   Pre-ICO sale at discount price: approx. 50%/50% share between investing in underlying assets (trading the arbitrage strategy) and OPEX (platform development, marketing, legal, listing costs, others);
       ▪   ICO sale: 98% in underlying assets, 2% for operating costs (trading support costs, marketing, legals and financials). 

▪   The team is led by a seasoned Stanford PhD with +20 years experience in technology and hedge fund management focused on arbitrage strategies.

We are kindly requesting the feedback of forum participants in respect to the product launch, strategy, competitive environment, ICO funds utilization structure, and ,pre generally anything you see relevant. It is the first time we are exploring ICO, hence initial feedback is very valuable to us.

Many thanks in advance for your feedback!

CryptoArbOpp Team