This piece is a tribute to John McAfee for famously tweeting that he will eat his dick on live tv if the Bitcoin price does not reach $1 million by the end of 2020.
When I predicted Bitcoin at $500,000 by the end of 2020, it used a model that predicted $5,000 at the end of 2017. BTC has accelerated much faster than my model assumptions. I now predict Bircoin at $1 million by the end of 2020. I will still eat my dick if wrong. pic.twitter.com/WVx3E71nyD
Although McAfee’s previous Bitcoin price prediction for 2020 was $500,000, he changed his prediction based on the fact that he was using a model which predicted Bitcoin’s value to be just $5,000 at the end of 2017. It was much higher than $5,000 at the end of 2017.. in fact more than double that.
Bitcoin or Bitcoin and other Bitcoin Forks?
Since McAfee is a strong supporter of Bitcoin Cash (BCH) and he has stated that he believes BTC and BCH will ultimately fight a war for the “Bitcoin” name, some speculate his prediction includes Bitcoin and all Bitcoin forks.
In my opinion, Bitcoin can reach $1 Million and also not retain the dominance is has today at over 40%. There is so much potential for cryptocurrencies over the next couple of years, that a roughly 100X increase in any single coin’s price is not hard to fathom.
Props to McAfee for Bolstering Crypto Confidence
In any case, whether McAfee was referring to only “Bitcoin Core” or Bitcoin and all Bitcoin forks, this prediction is a bullish one and helps bolster confidence in the cryptocurrency space.
Way to put it on the line for the pump, McAfee. Well done.
Similarly to “HODL” (Hold On for Dear Life), “BTFD” (Buy the Fucking Dip) is another term used in the crypto world, which encourages investors to take advantage of lower prices in a falling market, as opposed to panic selling which is the worst thing you can do when prices are down.
The truth is that timing the market in the long-run proves to be a losing strategy for over 90% of investors and traders. Hindsight is always 20/20, but the truth is that very few could have predicted what’s happened in the crypto market over the past 5 or so months.
Once Bitcoin crossed the $7,500 and $10,000 levels, even the most renowned technical analysts such as Tone Vays didn’t even know what to say about which direction the Bitcoin price would go.
Buying the dip, which means buying coins when prices are down, has been a winning strategy for Bitcoin investors since 2009. This concept isn’t new. There are quotes as old as Finance recommending to “buy when there’s blood on the streets”.
With this in mind, it’s safe to say that one of the easiest and fool-proof strategies one can use is to both hold your coins long-term and buy the dip when prices are down to accumulate more.
You can find some rather amusing tweets on Crypto Twitter just by searching the #BTFD hashtag.
There is a wide spectrum of opinions about the on-going Bitcoin (BTC) vs. Bitcoin Cash (BCH) war. Some experts argue over which coin has the better long-term solution for scaling. Some also argue over which coin has become more centralized by the powerful mining companies who control large portions of the hash power. Yet, others find less technical issues to be more concerning, such as whether or not Bitcoin Cash is hijacking Bitcoin’s brand name or which coin Satoshi Nakamoto, the anonymous creator of Bitcoin would approve most of.
The Polarization of the Two Bitcoin Camps
Both camps have had their fair share of attacks since the Bitcoin hard fork this past August. Since then, this on-going and highly controversial battle has involving some of the top thought-leaders in the space chiming in with their opinions, and overall it’s caused a great deal of confusion for the cryptocurrency community.
The extent to which the debate has been polarized can be seen in sensational statements on the far ends of both sides of the Bitcoin/Bitcoin Cash spectrum, ranging from “Bcash is a scam” to “Bitcoin Cash is the Real Bitcoin”.
Disclaimer: Satirical Artwork
Before diving deeper into concept behind this design, I’d like to state that I am a neutral party in this “war”, and in fact do not have a problem with Bitcoin Cash. I personally would like to see both projects succeed and use both coins.
The featured artwork is purely satirical and done mostly to poke fun at Roger Ver and to reflect what I perceive to be the community’s reaction to his incessant shilling of Bitcoin Cash.
Roger Ver has been a top advocate of Bitcoin for many years. This is why he was kknown as “Bitcoin Jesus”. He is a very vocal anarcho-capitalist and his both his early involvement investing in Bitcoin and renouncement of his US citizenship are demonstrative of his political idealogies, which are very in-line with those of the cryptocurrency movement.
However, Roger’s story has changed over the past couple years from evangelizing Bitcoin’s benefits and promoting adoption to being more of a detractor from Bitcoin with his constant involvement in project designed to displace Bitcoin.
Roger has said on record countless times that people have stopped using or investing in Bitcoin and switched to altcoins because of Bitcoin’s scaling issues and corresponding high transaction fees. The truth is that if people stopped using Bitcoin, there would be no scaling issue.
In Satoshi Nakamoto’s whitepaper, he said that Bitcoin is a peer-to-peer cash system. The truth is that, although Satoshi demonstrated genius foresight in the Bitcoin design and code, he wrote it before the current Bitcoin ecosystem was built.
One of Roger’s fundamental arguments detracting from Bitcoin Core is that Satoshi hinted at a blocksize increase in one of his last posts before disappearing. Satoshi hinted that larger blocks could be a good idea, after some optimization.
Bitcoin XT, Bitcoin Classic, Bitcoin Unlimited
Bitcoin XT was created by Mike Hearn and Gavin Andresen to aggressively increase the blocksize to 8MB. Roger Ver supported it but it never caught on. This is where he began complaining about the censorship on Reddit /r/bitcoin.
Bitcoin Classic was Roger’s second attempt. Instead of increasing the block size to 8MB they tried 2MB. In March 2016 they managed to get 7% of the Bitcoin network hashing power to support Bitcoin Classic. In a desperate attempt they tried to set up as many fake nodes on AWS as they could to try to look more popular.
Bitcoin Unlimited was the third attempt, this time they tried bribing. Bitcoin Unlimited received a “500,000 usd donation” and now additionally there is a 1 million dollar grant for alternative implementations. I think this kind of falls under the “bribing” part that I will discuss later.
The Final, and by far most successful project detracting from Bitcoin is Bitcoin Cash. Roger says that Bitcoin Cash isn’t exactly a ‘better Bitcoin’, but a return to the original functionality that Bitcoin intended. In an interview, Roger Ver said:
Bitcoin Cash is the real Bitcoin and will have the bigger market cap, trade volume and user base in the future.
Roger’s main argument is that the Bitcoin Core team intentionally increased transaction and confirmation costs, and lowered transaction rates. He believes that Bitcoin Cash is a better solution, and will become bigger than BTC in the future.
Bcash pump and dump scam or Legit?
Some members of the crypto community speculate that Bitcoin Cash’s price rise was a pump and dump scheme to trick traders. If you’ve been paying attention to the prices since the fork in August, it may very well seem as such.
Due to Bitcoin Cash’s shady price movements and mining centralization, many have chalked Bcash up to be just another anti-bitcoin scheme driven by Roger.
Bitcoin supporters changed Roger Ver’s nickname from ‘Bitcoin Jesus’ to Judas as a result, symbolizing his switch from supporting BTC to BCH. Some believe that Roger Ver is shilling for major BCH stakeholders. He does so every chance he gets.
So, What’s your take?
Do you favor BTC or BCH or a different crypto altogether? Drop a comment below.
It’s been a rough ride for crypto investors over the past couple months.
We’ve faced a crypto bear market where over half the market’s value vanished, leaving most investors holding the bag and coping with short term losses.
Nearly three months ago, on January 7th, 2018, the cryptocurrency markets set an impressive all-time-high in Total Market Capitalization of $834 Billion USD. To put into perspective how impressive this is, the Total Market Cap was just $102 Billion USD as recently as September 15th, 2017 during a big sell-off.
This means a well-diversified investor in the crypto space could have made 800% gains in a matter of only 4 months.
This sell-off and short-term low last September was caused by bearish media reports of China banning cryptocurrency exchanges as well as Jamie Dimon’s infamous “Bitcoin is a Fraud” comment.
The Current State of the Crypto Markets
Just as quickly as we saw the upwards price movements in Q3 2017, we have seen severe downward price movements in Q1 2018.
At the time of writing this, the Total Market Capitalization is just $340 Billion USD, nearly 60% less than the all-time-high of $834 Billion set in January. Investors have seen the same coins that pumped to the sky just months prior being slashed by over 50% in a matter of days.
Two particular events causing massive sell-offs:
(1) The first expiration of CBOE Bitcoin Futures contracts on January 17th
(2) China completely banning and blocking external cryptocurrency websites.
Currently, the market no longer reacts to expirations of Bitcoin Futures contracts from CBOE or CME, likely due to the fact that they are settled in USD and NOT in Bitcoin.
We can only hope that the market will do the same eventually for any negative news out of China. There have been countless occasions where China banned cryptocurrencies in one way or another.
Coping with Short Term Losses in the Bear Market
Whatever the reasons for the sell-offs and price crashes, these are hard times for crypto investors.
It is a good time to take a step back and learn from any mistakes that were made; such as FOMO buying when prices are high, investing in scam coins, and not taking profits.
Understanding What Happened and Why
Last year’s growth came from a mix of old players increasing stakes, bullish developments and advancements in blockchain technology, ICO mania, and last (but not least) stupid money rushing in and looking to get rich quick.
To some extent, the valuation achieved by the cryptocurrency markets was driven by long-term levers such as the technological advancements and increased investment from long-term players. However, much of what we saw was driven by short-term thinking and FOMO.
It’s important to understand that these short term trends will come and go. They have no bearing on the long-term trajectory and potential for cryptocurrencies.
The ICO mania has calmed down, the FOMO buyers have all panic sold, and they will return later this year; along with even more newbies, as the adoption rate continues to increase.
Focus on Fundamentals and use more Tools
As a crypto investor, it’s important to understand that everything we put into this market is 100% speculation.
There are no established or reliable valuation methodologies for crypto. Keeping this in mind, Focus on the fundamentals and use as much information as you can (see this post for crypto valuation metrics) and use all the tools at your disposal before making investment decisions.
There are also a number of projects that aim to help crypto investors leverage more advanced tools such as Signals which will provide users with access to data science and algorithmic trading.
CoinFi is another project which plans to be the “Bloomberg of cryptocurrency” and bring advanced market intelligence tools to the market.
Develop a Long-Term Mindset and HODL your Crypto
At the very least, learning to HOLD during bear markets will save you from serious losses from emotion-driven selling.
It takes strong hands and thick skin to HODL through these crypto bear markets, but this is the price you pay for the opportunity to experience the enormous gains we saw last year and in prior years as well.
Investors should be fully prepared to experience these losses and practice restraint in going “all-in” so they are able to buy when prices are low; dollar cost averaging down on positions.
It’s also important to truly believe in the future for blockchain technology, If you’re a true believer and you have the vision for the future, the current downturn doesn’t mean much.
Over the past couple years, every crypto bear market has been followed by a more intense bull market.
Keep those hands strong and Hold On for Dear Life.
The concept behind holding on for dear life, or “hodling” is nothing new to the world of invsting, nor is it only applicable to cryptocurrency investing.
You should manage your crypto portfolio as you would any other investment portfolio. The fundamental idea behind hodling is to let the winning trades run because doing so is both the easiest and most certain way to make large returns over time.
At first glance people often assume that hodl is just a typo of ‘hold’. This is partially correct.
The term “hodl” originated during the 2013 December where a Bitcoin investor vented his frustration with a post titled “I AM Hodling”. Here, he explained that only good traders know when to sell Bitcoin and identify bear markets. He also admitted that “Hodling” was a typo.
Hodling has moved on to become a strategy for investing in cryptocurrencies and an abbreviation for “hold on for dear life”. But should you always hold on for dear life or hodl each cryptocurrency?
FUD in the Crypto World
The crypto world moves very fast. So much so, we sometimes refer to “crypto time” as a different scale of time, similar to “dog years” in which there are so many new projects popping up almost daily, price pumps and crashes, and of course media stories promoting FUD (fear, uncertainty, doubt) causing novice investors to panic or at best feel uneasy.
While there is little we can do individually about any of this, having an understanding of these factors and their regularity can pay off for the newbies. They will keep calm and HODL.
Be like Chad HODL, not the Virgin Panic Seller
Prices should continue to be wildly volatile, governments should continue to threaten to ban crypto and then rescind these threats, and new projects certainly will continue to emerge claiming they will dethrone major cryptocurrencies and blockchain projects with their superior technology.
If you truly understand this, you will be able to see through the FUD and be more like the Chad HODL.
Not all coins are worthy of Hodling
Most cryptocurrencies are currently in a price-discovery mode. As the crypto markets are so young and rapidly changing, it’s very difficult to apply standard valuation methods as with equity investments to determine the fair price and whether a coin is overvalued or undervalued.
Instead of having things like price-to-earnings (PE) ratios and discounting cash flows (DCF) as methods to value equities, cryptos are often valued by factors such as:
Max & Total Circulating supply of tokens
Use cases and potential for adoption
Github repositories and activity
Number of transactions
Transaction fees & Mining profitability
Performance of the blockchain
Social media interest (Telegram, Reddit, Twitter, etc.)
Google search trends
Whether you’re a hodler or a swing trader it pays to learn about some of these valuation metrics for crypto, as coins that rank well comparatively on these metrics tend to outperform and outlive coins that don’t.
Always remember to think Long-Term & Hold On for Dear Life.
Welcome to the Church of HODL CRYPTO, where holding is acknowledged for the skill that it is amidst the volatile crypto markets. We hodlers dollar cost average our cryptocurrency holdings when prices are low, which results in a level of solvency higher than that of the average investor.
It is commonly said that 80% of crypto investors buy high and sell low.
While it’s entirely understandable for someone to (unfortunately) buy close to an all-time high, selling at a lower price after buying at higher prices is flat out dumb.
Not selling at a loss is a principle rule for many traders, who only break this rule for serious exceptions such as a change in the fundamentals of the underlying investment.
These 80% of crypto traders who (allegedly) buy high and sell low are primary reason for the fear/greed hype cycle we see so prominent in the crypto markets.
This is why Elliot Wave theory works so well at times for technical analysts in the cryptocurrency space.
For those unfamiliar with Elliot Wave theory, it’s basically a form of technical analysis that traders use to analyze market cycles and forecast trends by identifying extremes in investor psychology, highs and lows in prices, and other collective factors.
This is precisely where the concept of “Hold on for dear life” comes in. Yes, it’s true that the term “HODL” originated from a typographical error committed by an early bitcoin adopter who was under the influence at the time; however HODL has become an iconic mantra for investors in the cryptocurrency community to encourage others to hold their coins and not panic sell under times of extreme volatility.
At the time of writing this March 21st 2018, the Bitcoin price has recovered a solid 22% from lows set just 3 days ago, amidst a 3-month bear trend.
We are still over 50% below the all-time-highs set in December, however hodlers who may feel the sting of short-term price decreases also had an amazing opportunity to add to their Bitcoin holdings just 3 days ago a 65% discount from December highs.
The strategy I prefer to use, however un-scientific is may be, is to wait for those panic levels to add to my cryptocurrency holdings. In essence you are using those same emotions to your advantage to dollar cost average into a larger position at multi-month lows.
As the crypto-clueless Warren Buffet has so famously been quoted, “Be fearful when others are greedy and greedy when others are fearful”.
This is excellent advice when it comes to crypto investing. If you follow this advice, you will be the one buying up all the cheap coins when panickers sell their precious coins at huge discounts.
Follow the gospel of the church of hodl crypto and dollar cost average your way to the pearly gates.
All you have to do is Buy,Hold, and Spend your favorite cryptocurrencies.. and don’t forget to tell your friends and family!
I encourage every crypto user to become a crypto evangelist. Tell all the animals on the farm.
Cryptocurrencies and blockchain technology are the holy-grail of 21st century technology.
If the decentralized crypto community achieves mass adoption, it may just be our best chance to save all humanity from perdition brought on by the global central banking systems.
Maybe this sounds like an extreme viewpoint, and maybe i’m an extreme person, but this revolution will not be a smooth transition by any means.
It involves a total redistribution of economic power from a few members of a global banking elite to anyone who wants to participate in the cryptocurrency movement.
Government control vs. Decentralized control
Bitcoin can’t be controlled by any government, company, or individuals whatsoever.
As a decentralized peer-to-peer network, any attempt to control it will fail and people will continue to use Bitcoin as it was always used, leaving the attacker talking alone.
Governments and regulators all around the world, spoiled by total control of people’s finance for over a century, are very threatened by this.
They still haven’t realized that they have their hands tied and are now beginning to treat crypto-currencies like any other asset.
Print & Destroy
Central banks are printing and destroying your wealth on a daily basis and you have no say or stake in the outcome of central banking system and their failed experiments such as the European Union.
According to the US government, the US Dollar has lost about 95% of it’s value since the beginning of the 20th century. That’s official data.
The data effectively dismantles the main argument Bitcoin opponents use; that “it’s not stable enough”.
Sure it’s highly volatile due to speculators, but personally I’d rather have a currency that can become more or less valuable in the future than a currency that will always increasingly devaluate.
Limited Supply & Mining
Most cryptocurrencies have a limited supply, are controlled by open source software, and are secured by a decentralized network of users.
Although the total supply of most major legitimate cryptocurrencies are capped, you are able to participate in the generation of the limited supply through Proof-of-work and Proof-of-stake mining, where you essentially have your own “money printing machines” to print coins in return for your efforts to secure the blockchain networks.
Protection from a Central Banking exit scam
Don’t leave your security and wealth in the hands of the banks. The Central Banking system is the biggest ponzi scheme in human history.
If you want to see an EXIT SCAM, just wait for the bank runs that will occur when hyper-inflation gets out of control.
Cryptocurrency is a revolution in banking. Now you can truly be your own bank.
As long as you control your own private keys, no one can seize or censor the use of your cryptocurrencies. There is no central bank to debase your currency and impose hidden taxes such as inflation on your income or stored wealth.
Don’t be left holding worthless or empty bags of fiat. Join the cryptocurrency revolution today.
There has been a transformation in financial markets and trading over the past couple of decades where traditional trading is being replaced by algorithmic trading systems.
Currently there is no widely available solution for algorithmic crypto trading for users who want to be able to “set it and forget it” as opposed to being tied to the market constantly to adhere to their trading rules.
Signals Nework is a new blockchain project that plans to democratize machine learning and algorithmic trading for crypto traders to make smarter and faster trades.
Throughout the ico frenzy of 2017 there were a number of platforms claiming to be using Artificial Intelligence (AI) and Algorithmic Trading to earn investors daily “interest” payments. Many of these have exit scammed and none of them transparently proved to be using algorithmic trading to produce investor returns.Signals is not one of these money grabs.
Signals is a data-centric platform and marketplace where data science and programming professionals can share their data and strategies for users to use to trade with their own holdings.
“Our mission is to empower crypto traders with state of the art algorithms from the datascience community, which will allow them to optimize their profits.
The Signals Platformprovides these tools in a user-friendly way. From advanced charting and classic technical indicators to complex statistical models, crowd wisdom based inputs and machine learning algorithms based on media monitoring and sentiment analysis.
The Signals Platform is a place where anybody can create fully customizable trading robotswith no advanced technical knowledge required.”
Why Machines and Algorithmic Trading?
Machines take emotions and other psychological factors out of trading,turning it into a numbers game.Cognitive biases sometimes interfere with trading decisions, especially if a trader does not have a well-structured trading plan.
As traders use trading signals to make decisions, cognitive biases still weigh heavy on the decisions they take.Machines ignore the noise of trading signals and process more data than a normal human ever could in order to inform their decisions.
Computer algorithms can also execute trades infinitely faster than humans and never sleep, running 24/7.
How does Algorithmic Trading Work?
“Algorithmic trading” may seem like an intimidating term to many, so let’s break it down into simple terms and steps.DATA: First, you need to pick out a data set to serve as the foundation for further analysis.
Example: specific trading pairs such as BTC/USD or LTC/BTC.
INDICATORS: Next, you need to choose the different types of indicators which act as filters for analyzing the data.
Examples: trading volume, moving averages, support/resistance, etc.
STRATEGY: Lastly, a strategy should define the ways to use the indicators to trade the pairs you have selected.An algorithmic trading system will use these inputs to create a robust trading strategy, which can be tested and then used.
The Signals Algorithmic Trading Platform
The Signals platform has marketplaces where data, indicators and strategies can be put together into an automated trading strategy using their “Signals Strategy Builder”.Signals platform has a nice visual design and it’s very user-friendly so anyone can use it.
I cannot overemphasize how important this is for adoption, so Signals has done right here. If it’s not easy to use and nice to look at, unfortunately most users will probably overlook the technology behind a trading platform of this sort.
1) Data Marketplace
Users and external vendors provide data sets in the Data Marketplace.These data sets include historical and current market data, social network, and data from other crypto-related media and sites.
Any type of data set can be uploaded to the Data Marketplace and priced accordingly. Data crawlers that provide live data streams or API access can also be integrated easily.
2) Indicators Marketplace
Signals plans to include the following indicators in their platform:
Basic “Freemium” Indicators: I’m always amused when companies use this word.
“Freemium is a word companies use to make sure you understand what you are not paying for is valuable enough for you to pay for.. but lucky you. You’re getting it for free!Signal’s freemium indicators can monitor the price of a crypto and send signals based on “if-then” conditions.
Using the visual interface, users can combine basic strategies like stop losses together with proprietary Signals features like their ‘Flash crash detection system’.
Combining both can make for a more robust way to protect from downside risk.Technical analysis indicatorsTechnical analysis (TA) applies statistics to historical data to find patterns and trends in the market. As many crypto traders have found TA to be a useful tool for trading, they are also very useful when combined with machine learning technology for algorithmic trading.
Sentiment analysis indicators
Using natural language processing (or sentiment analysis) based on media monitoring is becoming a standard tool for analysis in the crypto world and other financial markets.The Signals Platform provides sentiment analysis indicators with data from social networks and crypto media.
Machine learning based indicators
Deep learning neural networks designed for processing time series, such as LSTM (long short term memory) recurrent neural networks
Crowd wisdom based indicators
Future economic trends can often be determined from surveying the masses.
This is basically how prediction markets work -they let users speculate on what they know (or think they know) by buying and selling stakes in the outcome of an event.
If they predict the outcome correctly, they make a profit; otherwise, they lose their money. The current price of event outcome (based on its probability) quantifies the knowledge of the crowd.
Blockchain monitoring indicators
Analysis to be conducted on the movement of every coin and token, especially those held by whales.
When most of the coins are held by whales, tools that monitor the blockchain for “whale” movements can signal when major holders are buying or selling.
Github commit indicators
Traders will be able to monitor Github updates on all coins and tokens they trade.
Developers and data scientists can monetize their skills by developing indicators to sell to Signals users.After a subscription fee set by the owner of the indicator is paid, these indicators can be used for free for testing and trading on the Signals Platform.
Using the Strategies Marketplace, developers and traders can list their trade strategies for copy trading and offer it to other users.Users will pay for receiving trading signals from a third-party bot, which can be traded through the platform.
Third party bots integration
Although signals is providing a tool for creating trading bots, other popular trading bots can be integrated into the Signals marketplace.This would be great for data scientists who can create trading algorithms but have no experience with UX design.
Signals Strategy Builder
The Signals Strategy Builder allows users to create their own trading strategies.There are two main components to each strategy — indicators and signals.
Indicators are blocks of code selected from the Indicators Marketplace.
Signals are actions that are triggered in response to indicators.
In the Signals Strategy Builder, users can drag and drop indicators and define the conditions of the indicators under which the signals should be triggered. Users can also create optimal
strategies and test them before using them for live trading.
Connections to crypto exchanges and mobile
Signals provides both a cloud based solution and an open source desktop app to perform automated trading in the background. The desktop version is important for traders who strongly prefer to store and encrypt their tokens on their own devices.
Trading bots can be connected to smartphones using the Signals app. Users can receive notifications whenever their strategy identifies a trading opportunity.
STOX crowd wisdom indicators will be integrated to let users create hybrid trading models combining machine learning with crowdsourced opinions.
iExec, a blockchain-based cloud computing platform, will solve complex computational problems while keeping things affordable for users.
SGN is an ERC-20 token built on the Ethereum blockchain. The Signals Platform will be accessible exclusively using Signal tokens.
Signals’ business model is based on two main revenue streams.
1) Signals charges a fee on each purchase in the Signals marketplaces.This includes: • Purchases of user-created indicators • Purchases of data streams • Renting of user-made strategies for copy trading
Using premium machine learning features
2) The Signals cloud solution for deploying strategies.
A subscription model will be implemented with different tiers based on the number of strategies used.
Like any platform, the success of Signals depends entirely on user adoption.The Signals team will set up transparent competitions using smart contracts and the results will be evaluated using publicly available data like strategy statistics and endorsements.
Indicators development competitions
The most successful strategies which are offered for copy trading to other traders will be selected based on publicly accessible statistics regarding the strategy’s performance, risk-taking or other parameters.
Each data source on the Signals platform will have public usage analytics.
The most useful data sources will be evaluated and supported with Signals
User endorsement competitions
Users that contribute to the community by answering questions and sharing their knowledge to earn points based on positive reviews. This is the main metric that will be used to reward active users.
The Signals token sale begins March 12th
20% of Signals’ tokens are reserved for users and early adopters.There will be a maximum of $18M worth of SGN sold during this phase.
• SGN prices are nominated in ETH before the beginning of the token sale
• At the beginning of this phase, there will be a 15% discount on the first token sold,
which will then gradually decrease, with the last token sold having no discount.
• Minimum transaction amount in Ethereum is 0.1 ETH.
A trading platform that leverages real data science using both technical/statistical analysis and natural language processing, or sentiment analysis can be a very useful tool for crypto traders.
Currently some of the most trusted trading bots run solely on trading strategies set using technical analysis indicators. These bots do not get smarter as they do when machine learning is used to refine and adapt strategies to changing market conditions.
Although trading bots provide the advantage to traders to not have to constantly be monitoring the markets, the strategies do need to be monitored and changed at times when settings are no longer optimal.
Machine learning takes things to the next level for those wanting to truly “set it and forget it” with algorithmic trading.
Signals network is addressing a major pain point for traders and has a solid plan to execute their solution for it.
For this reason I am supporting the project and will update periodically as the project progresses through major milestones in the roadmap.
Polymath is building a platform to help companies issue securities on the blockchain.
Companies will use the Polymath Network to legally tokenize financial assets and give more access and liquidity to investors.
To guide venture capital firms, investment funds, and public companies through the complex technological and legal processes of a successful token launch.
The Need for Regulation
The token sale process is complicated and requires guidance to avoid legal and financial issues. Regulators are actively pursuing startups who take the “ask forgiveness, not permission” approach to disrupting regulated industries.
In the cryptocurrency world there are no shortage of shady ICO tokens (a.k.a. scam coins) currently trading on the market. The regulatory hammer will come down on these inevitably.
Startups need to launch their token sales by doing the right things from the very inception.
How Polymath wants to flip regulation upside down
Instead of a central regulatory body ruling from afar, Polymath will involve attorneys and government officials from the beginning of the process for each security token.
This will theoretically eliminate the need for an agency like the SEC to get involved and ultimately lead to a more legitimate blockchain and cryptocurrency market.
Legal Agreements for Tokenized Securities
Polymath has partnered with Agrello, an Estonian legal technology company that offers blockchain-based smart contract agreements.
“A partnership with Polymath will allow us to showcase Agrello’scutting-edge KYC and digital signature services in the highly regulated financial industry.”
– Agrello CEO and Co-Founder, Hando Rand.
Smart contracts have the potential to change how people interact with each other, as well as legal authorities. Polymath and Agrello have a shared vision of successfully implementing smart contracts in heavily regulated environments.
Issuers and investors on the Polymath platform are able to execute agreements with Agrello’s legally binding smart contracts.
How Legal Compliance works on Polymath
Issuer creates security tokens and uploads issuance details to be reviewed by Polymath Legal Delegates.
Legal Delegates propose compliance templates to the issuer.
issuer selects the template and applies it to the security token with the required documents to upload for verification.
Once verified, the Legal Delegate approves the securities token for initial offering on the polymath network.
Investors request access to a security token.
Polymath gives KYC requirements to the investor based on the compliance template.
Investors submit KYC requirements for verification.
Polymath approves investor to participate.
The ST-20 Standardized Securities Token Protocol
Polymath’s ST-20 Protocol embeds regulatory requirements into the tokens themselves.
Polymath facilitates compliance at the legal layer and the app layer. Compliance is baked into the token itself, as shown in this illustration of the POLY stack:
It verifies each wallet address to ensure only authorized investors that meet the criteria for each particular security token offering are able to transact with that token.
This is an important consideration because decentralized exchanges, also known as DEX’s are the future for cryptocurrrency markets. DEX’s will be able to facilitate trading with POLY tokens, because the they can only go to authorized participants.
Issuers will receive several bids from legal delegates, lawyers, but it’s up to the issuer to perform due diligence and compare their fees. Once they choose a legal delegate, they send POLY to a smart contract and begin working with the lawyers through the compliance process with the necessary documents.
Part of the process entails delegates working with developers to build a smart contract specifically for your token. The smart contract enforces investor requirements such as jurisdiction of investors, type of offering, hold period before tokens can be resold, etc. After the necessary documents are sent and the smart contract completed, the legal delegate will set the address of your initial offering contract and then the token will be ready to trade.
POLY tokens are the fuel for the Polymath platform
Similarly to how ETH fuels the Ethereum platform, POLY will be used for Polymath smart contracts.
Four ways POLY tokens are used
An issuer can post a bounty in POLY tokens to encourage legal delegates and developers to bid on providing services. The more complex the security is legally, the more POLY you’ll probably need to pay.
Developers earn POLY for creating ST-20 smart contracts.
KYC providers pay with POLY to join the Polymath network and earn POLY by verifying investors.
Investors must pay KYC providers in POLY tokens to join early investor whitelists for security tokens.
Legal delegates earn POLY when they are selected to issue a new security token.
Three types of Securities Tokens
On the Polymath Github you can see that there will be 3 main types of securities tokens: Equities, Debts, and Units
An equity security represents ownership interest held by shareholders. Equity holders are typically not entitled to regular payments (although equities can pay out dividends), but they are able to profit from capital gains when they sell the securities.
A debt security represents money that is borrowed and must be repaid, with terms that stipulates the size of the loan, interest rate and maturity or renewal date.
With unit securities, holders own a stake in a trust/partnership, having right to the income generated by the trust/partnership. This trust/partnership could own multiple investments.
Polymath’s Trillion Dollar Opportunity
Let’s not under-emphasize the size of the prize the Polymath project is going after. Aside from a global currency, taking existing financial assets onto the blockchain is the biggest opportunity for blockchain technology.
Polymath is the first major blockchain project associated with securities tokens.
As Ethereum had the first mover advantage for decentralized applications, Polymath has the first-mover advantage locked in for securities tokens.
ICO’s vs. IPO’s
In 2017, ICO’s raised about $4 Billion USD. In comparison, Alibaba’s IPO alone raised over $20 Billion USD.
Global Financial Assets
There is a massive untapped potential of assets that can be tokenized.
According to the whitepaper, “the global securities market is composed of three major instrument types: equities, debt, and derivatives. In 2016, these three markets had total notional values of US $67 trillion, $99 trillion, and $1.2 quadrillion, respectively.”
These numbers of course do not consider all the private and illiquid assets that can also be tokenized. Securities Token Offerings for these assets alone represents a potential of trillions of USD.
Polymath believes the impact of the coming “stampede” of securities tokens will be felt more immediately in the small business sector.
As an investor, you don’t have a way use your localized knowledge to invest in small businesses without investing large sums or even buying entire businesses.
Let’s say, for example you like dining at indian restaurants. You try a new one and it’s the best indian dining experience you’ve ever had. As you finish your meal, you could decide right then to invest whatever amount you desire.
Securities tokens provide a new liquidity layer for small businesses who could never dream of going public with an IPO.
Just as much as the small businesses themselves, securities tokens are a huge benefit to investors. Investors will be able to access companies with the potential to grow quickly, which they can also directly impact.
Individuals will finally have the same access to investments as venture capitalists.
In the ideal scenario, all forms of securities become tokenized. Trillions of dollars of financial assets go flowing onto the Polymath platform once the “stampede” begins and a strong network is built where is makes sense for companies of all sizes to use the POLY network.
As a result, businesses of any size have access to capital and Investors would have access to transparent information to easily avoid scam coins. The big challenge ahead for Polymath is to bring investors into their ecosystem.
As the saying goes, “if they could just capture 1% of the market”, in this case trillions upon trillions of market capital, Polymath will be a huge success and one of the top cryptocurrencies.