$94k GVT Part 4: Positive Feedback Loop

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Preface

While Genesis Vision has had trading tournaments in the past with managers returning handsome profits, the most recent tournament has been the largest and most ambitious.

The most recent tournament no only tests the manager’s ability to attract investors and manage portfolios, but also allows users to test the integrity and user interface of the GV App.

The huge prize pool has attracted managers who are old time favorites such as bitkolik and new celebrity traders such as Mr. Swing Trade [Eric Choe] who has over 127K Twitter Followers. Time and time again, the top managers have demonstrated above market returns in FOREX and crypto in both bullish and bearish market conditions.

The Most Important Thing to Consider about GVT

The most important question an investor should be asking in regards to future GVT price has now been answered several times.

And that question is:

“Can managers on the GV platform generate above market returns?”

(I define above market returns as the greater of: portfolio returns greater than GVT price growth or portfolio returns greater than the average crypo market cap growth rate)

And more confident than ever, this question can be answered with a resounding “YES!” by looking at the past results of the trading tournaments.

In laymans’ terms, this means that if you invested 1 GVT in a top percentile manager, you would receive MORE than 1 GVT back at the end of the investment period.

Since managers are able to generate positive returns through the platform, the demand for GVT will be increased through both “hard” technical drivers, and “soft” social drivers.

“Hard” Technical Drivers of GVT Demand

The number one “hard” technical driver for GVT demand is: above market manager performance. Since all investments and payouts are denominated in GVT, an above market performance from a manager means that more GVTs are paid back to investors than were initially invested.

For Genesis Vision to succeed, this needs to happen on a macro scale. The weighted average returns of all managers on the platform has to be “above market”

Fortunately there are rules built into the platform that can be best described as a Darwinistic level up system for top performing managers. Only those managers that demonstrate consistent profits over time may level up and manage larger portfolios. While there will certainly be poor performing managers, the risk will be signaled to the investors by their low manager level and their low hard-cap on their maximum portfolio size. This level-up system augments the effect of top performing managers and mitigates the risk of low performing managers within the GV platform, effectively adding more “weight” to top performers and reducing the “weight” of low performers.

Exhibit 1.

1. Investors invest GVT with Managers
2. Managers generate positive returns (10% is illustrative,)
3. 110 GVT is returned to the investors, and the 10 additional GVT is purchased through the market, increasing price pressure.

After the pay out, the investors have more GVT, and may choose to reinvest their gains generating consistent positive price pressure, creating a positive feedback loop.

“Soft” Social Drivers of GVT Demand

(and price fluctuation)

The “soft” social driver for GVT is also reliant on above market manager performance. It would be logical that all non-GVT investors who have investment returns lower than the weight average returns of the GV platform consider buying GVT for the sole purpose of being able to achieving higher returns. This social aspect of investors being attracted to higher gain investments will compound the demand for GVT in addition to the “hard” technical drivers. Again, this social attraction to GVT is dependent on above market manager returns.

Exhibit 2.

1. Average investors notices that GV average returns are higher than his or her own (10%>8% illustrative)
2. Investor decides to buy GVT from the market to invest in the platform
3. Investor begins cycle illustrated in Exhibit 1

Rinse and repeat… this will happen thousands and thousands of times.

Economics of GVT

Demand

The “hard” technical demand drivers of GVT price will have the largest influence on GVT demand. The “soft drivers” will augment demand, but since this driver is based off of social sentiment, a greater range can be expected which can be observed through price fluctuation around the equilibrium defined by the “hard” technical drivers.

Supply

The maximum supply is 4,436,644 GVT. There will never be more GVT than currently exists.

With the release of Genesis Markets, there will be an additional constraint on the circulating supply of GVT from Option 4. With this option, users of Genesis Markets are incentivized to hold GVT to passively reduce trading fees. It is expected that number of tokens taken out of trading circulation by this feature increases proportionally with the number of users on the Genesis Markets platform. Effectively, this decreases available supply.

Other Considerations

You may be thinking “Where will all this GVT come from to satisfy the growing demand???” My answer to this: Everyone has a price. There will never be a shortage of people willing sell if the price is right. And this is why I am so excited about this project!

Exhibit 3.

(D1 & D2) Demand will increase over time from the hard and soft drives illustrated in Exhibit 1 & 2. These drivers will shift the demand curve to the right.

(S1 & S2) Circulating supply will diminish over time as incentives to HODL arises via Option 4 from GV Markets. This will reduce the circulating supply, so the supply curve will get pushed to the left

(E1 & E2) Equilibrium and Price is the intersect of supply and demand, as demand increase and circulating supply decreases, the equilibrium price will increase. However, since trading price is dictated by the market, there will be a trading range centered around the equilibrium based on social sentiment.

How big can this get…

You’ve read this far already. You know that:

1. GV Managers have demonstrated above market returns

2 . Demand will increase from “hard” and “soft” drivers

3. Supply will decrease from incentives to HODL from Option 4

This is a continuous positive feedback loop — so where does it end? and how big can it get?

To put things into perspective, GVT market cap fluctuates between $50M–$100M, with an all time high of around $150M. The addressable market for assets under management by 2020 will be $100,000,000,000,000 — $100 trillion. At it’s all time high, GVT’s market cap only represented 0.00015% of the addressable market.

If GVT were $94,000 per token, Genesis Vision’s market cap would only represent .4% of the addressable market. Genesis Vision does not intend to compete with other cryptos, Genesis Vision is a disruptor to all Assets Under Management, a soon to be $100 trillion market.

Is $94k by 2021 just a meme, or can it be real? Decide for yourself with this graph below.

Thank you for reading!

I work really hard to put these articles together for you guys. I do it because I love this project, and truly believe in it. If you enjoyed this article, or any of my past articles, a donation would be highly appreciated!

ETH, GVT, and other ERC20 Tokens: 0xFb0e76064a531030A933d1369fdB8809b949CD3B

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