Introducing Cryzen’s XEN Dividend Token
Share in the Profits of Cryzen Algorithmic Trading
Last week, we announced to you the upcoming launch of the Cryzen algorithmic trading platform, our industry leading platform for traders to build, backtest and deploy trading algorithms for cryptocurrencies. We have recently finished our closed alpha testing and will be sharing some exciting updates with you over the coming weeks, including a demo video of the MVP in action. We will also be launching our beta testing program for the Cryzen backtester shortly, so stay tuned by signing up for the latest updates on our website.
This week, we want to make a slightly different announcement. For those of you that have visited our website, you may have noticed our updates this week, including the addition of our roadmap and a section on the XEN token.
XEN token will be one of the first dividend tokens, distributing profits generated from Cryzen revenue sources to token holders. Dividend tokens, offered in compliance with applicable securities regulations, will provide a new type of funding opportunity for the crypto space, with companies able to raise money and investors being able to actually value (and profit from) the underlying business they are investing in. The XEN token will be offered in full compliance with the SEC in the US in 2019.
Holders of XEN token will be able to share in three revenue streams on a monthly basis. They will receive 40% of all revenue from:
- The fees Cryzen charges users making a profit on the platform;
- The fees Cryzen charges for premium services on the platform; and
- The trading profits of the Zen fund.
Value as a Service (VaaS) Fees
VaaS fees apply to all user profits generated on the platform: if a user has made a profit through algorithmic trading on Cryzen for a given month (across all trading strategies and algorithms employed), he or she will be charged 5% on those profits.
Premium Service Fees
Basic usage of the Cryzen trading platform will be free, including 1 hour of backtester time per day and 1 live running algorithm at any given time.
Cryzen offers premium services for the development of sophisticated external data and machine learning based trading strategies. These premium services are free to use on the backtester and live for one month. After this one month trial period, a fixed monthly fee applies to the premium service(s) in use. Premium services include access to:
- Twitter data and derived sentiment from tweets;
- Reddit data and derived sentiment from reddit posts;
- Google trends data for cryptocurrency related search phrases;
- Event data, including but not limited to new coin listings, network upgrades, hard forks and exchange hacks;
- Blockchain / ledger level data, including but not limited to network speed / confirmation times, large transfers between wallets and number of unique wallets;
- Pretrained predictive machine learning models, including but not limited to volatility predictors, volume predictors and network speed / confirmation time predictors;
- Raw data: 1 sec orderbook level data for many cryptocurrencies across many cryptocurrency exchanges (no trial period will be available for direct access to raw data).
Note: for our anticipated public launch in October 2018, only price data will be available to backtest and trade on. Thereafter, premium services will be added periodically (our release schedule will be provided soon).
The Zen fund is an algorithmic trading fund consisting of 20% of the capital raised from the XEN token presale and ICO. The Zen fund will be traded by algorithms developed by the Cryzen quant team. The Cryzen quant team will take an AI first approach with initial strategies including (but not limited to):
- Arbitrage algorithms (enhanced by machine learning models that predict the length of and volatility during arbitrage windows);
- Momentum algorithms (enhanced by machine learning models that predict volatility and tendency of prices to move back towards the moving average);
- Social media / sentiment analysis based trading algorithms (algorithms that quantify the significance and sentiment of news, tweets, and community voices to identify and act on actionable market insights);
- Google trends based trading algorithms (algorithms that trade based on Google search data, a window into the collective minds of what people are considering and searching for at any given time); and
- Predictive machine learning based trading algorithms (algorithms that trade based on machine learning models which try to predict future price changes given: past price and volume changes, social media sentiment, google search trends, blockchain / ledger level activity, and more).
Further, the Cryzen quant team will explore the use of reinforcement learning for trading cryptocurrencies.
Profits generated by Cryzen will be published monthly to a publicly available webpage located at cryzen.com/profits. This will include detailed breakdowns of value as a service (VaaS) fees, premium service fees, and zen fund trading profits.
A vault smart contract / oracle system (connected to our company ethereum wallet) will check this webpage on a weekly basis, and using the reported net profit, send ETH to our distribution smart contract. Once ETH arrives at the distribution smart contract, it is locked and cannot be retrieved by us. At the end of the month, all ETH locked in the distribution smart contract is available for withdrawal by token holders. For top token holders, we initiate this withdrawal so that the ETH they are owed is sent straight to their Ethereum wallet. Snapshots of token balances are taken at the end of each month so that we have an exact record of how much each user is owed (our snapshots can be independently verified on the blockchain).
A total of 1,000,000,000 XEN tokens will be minted (no inflationary or deflationary mechanisms will apply to the supply of XEN token). XEN token will be allocated as shown in the figure to the left.
We intend to raise between $1 million (soft cap) and $2.5 million (hard cap) from our presale which will be broken up into two parts:
- A $1m public pre-sale, compliant with Reg CF and run on a crowdfunding platform; and
- A $1.5m million raise via sales to private (accredited) investors in compliance with SEC Regulation D (Reg D offering).
Funds raised from our presale will go into finishing the MVP development of our project (which includes backtesting and live deployment of algorithms with access to 5s price data feeds) and getting XEN token through the SEC approval process to become one of the first SEC compliant dividend tokens.
A full ICO will be undertaken in 2019. The ICO will be conducted in 3 phases with successively higher prices per token. Over the entire presale and ICO phases, we intend to sell roughly 70% of XEN tokens (with 5% to be sold during the presale phase at a considerable discount, and 65% to be sold during the 2019 ICO phase). Please subscribe at www.cryzen.com for further details related to our upcoming presale, product launch, and more.