In a rush? Take a second to check the link, dates, and value proposition.
- Website: https://www.countinghousefund.com/whitepaper
- ICO Date: started April 3rd, 2018, ends June 12th, 2018. ETH and Paypal accepted.
- Value Proposition: a cryptocurrency hedge fund that comes from a Forex (Foreign Exchange) background. It makes use of proprietary algorithms to generate value from asset volatility.
Since Mediaeval ages, it has been perceived that every asset comes intrinsically as a combination of “equity” and “liability.” It’s an easy rational relationship that comes loaded with not-so-rational implications such as risk and reward.
In a way, it’s the story behind the hedge fund business, that grew to be a three-trillion-dollar industry in 2017.
Fast-forward to recent times and money can be a decentralized, mathematically verified asset. This virtual asset native to the Internet (rather than the up-street bank) mostly gets its value from supply and demand. There is also a fixed supply, and a power-hungry transaction verification process – referred to as mining. In minable cryptocurrencies like Bitcoin – this can also be a factor in market dynamics.
This new world is growingly appealing to the big guns of finance that can identify great potential. Besides, some projects out there allow crypto-investors to capitalize on their assets like ICONOMI, Enigma, and Prism, transposing many aspects of traditional finances into the geeky world of Blockchain.
But what makes Countinghouse intriguing is its parent company; A respected Forex hedge fund launched it. From fiat money to math-based assets, Countinghouse is determined to wonder in the immerging market of cryptocurrencies. Let’s take a closer look.
Countinghouse at a Glance
Countinghouse is an investment group specialized in hedge funds with a proven track record in foreign exchange (Forex). It puts forth investment products such as algorithm trading, investment strategies, and venture capital, that can yield profits for its users.
The new Countinghouse Crypto Fund aims to leverage the volatility and movement in the cryptocurrency market and turn it into profit. In a way, what makes cryptocurrencies a risky investment would make them a juicy opportunity using the right tools and investment strategies.
Furthermore, the use of Blockchain in this industry is rather disruptive in nature. By employing a trustless, transparent, and untempered technology such as a distributed ledger, Countinghouse Fund ultimately provides more financial freedom. It enhances the governance capacity of any crypto-investment for the profit of its prospective users.
The Key Difference Between Crypto Hedge Funds and Traditional Hedge Funds
The differences flow from the very nature of both currencies involved. On the one hand, we have cryptocurrencies, decentralized money with no central authority. They come with significant volatility and face regulatory hammers spreading fear and uncertainty now and then, to plummet prices and swipe away gained ground towards adoption. On the other hand, fiat money is widely accepted, easily tracked, and utterly regulated. Its volatility is mitigated and so is the risk of investing in common hedge funds.
However, the “risky” crypto-hedge funds come with a higher reward. In 12 months, Countinghouse Fund was able to capitalize +600% on an initial crypto-investment made in September 2017.
Furthermore, there are no call options available for crypto-hedge funds. The reward is paid in tokens (in the Courthouse Fund case, CHT tokens) as compared to being paid in the hedged asset in common hedge funds.
The Ongoing ICO
The ongoing ICO aims to raise funds for the creation of an independent entity that exclusively hedges the risks of crypto-assets through proprietary algorithms and investment strategies.
“We are raising capital for a new fund in order to apply our existing techniques to the world of cryptocurrency, which shows greater volatility than fiat currency exchange”,
reads the whitepaper.
Before investing, prospective users undergo a through KYC / AML that lines up with regulatory requirements and is not too dissimilar to the process of investing in common hedge funds.
Here are some numbers
- Start date: April 3rd, 2018
- End date: June 12th, 2018
- Soft Cap / Goal: 50,000,000 CHT
- Token Type: CHT, an ERC-20 security token (cleared with the specialized regulatory bodies)
- Hedge Fund location: Seychelles (Australian Offices)
Tokens Distribution & Allocation
The whitepaper explains that 73% of all issued tokens (exactly 14,585,000 tokens) will be made available for purchase in the token sale event. The remaining 26% will be distributed among community members and advisors while 1% goes to the project team.
The majority of proceeds from the ICO (60%) will be used to maximize crypto-based algorithmic trading. 30% will be used for the deployment of a Double-sided Arbitrage Strategy, while the remaining 10% will be stocked as a passive reserve.
The Team Behind The Project
Tim Dawson (pictured right herewith) will lead the Countinghouse Team as the director of quantitative analysis. He comes from a math and programming background.
The Director of Operations of the newly launched fund is Mike Pomery, a published author, trader, and statistics professional. The whitepaper also lists a total of seven other members, with some being advisors. They range in seniority and backgrounds between investment banking, internet security, blockchain, and communication.
Milestones and Road Ahead
The team’s upcoming milestones are set to begin after the token sale event. In fact, crypto traders will be able to start using the system the day after the ICO ends (on June 13th, 2018). To ensure scalability, the team promises an “advanced trading” phase that improves over time with more traders embarking on using the hedge fund.
A Final Word
I’m keen to see this ICO come to fruition, and with just a couple of months until stage 1 arbitrage begins, we shouldn’t have to wait very long. The Countinghouse team are experienced and qualified, as shown in the documentation available on their website. The professionalism and extensive know-how of this team coupled with the excellent use case make this ICO one to watch.