Crypto-Currency Risks? v2.0 : July 25, 2017
Singapore’s Finamatrix (FIX) initial coin offering or ICO starting August, offers Custom-built Blockchain Smart Contracts using state-of-the-art Risk-Cybernetics technology applications from AI-crowdsourcing to automatically decode price discovery functions of Cryptos or any asset for Selection Bias reduction, providing potentially super-normal returns.
Summary: Driven by increasing cryto-currency risks, Finamatrix offers custom-built Blockchain Smart Contracts embedded with proprietary Risk-Cybernetics Tech to decode the price discovery functions of any asset including crypto-currencies, reducing the problem of Selection Bias in a risk-hedging portfolio setting. Different assets have different pricing functions. To estimate the functions, time-varying MVSK utility optimization is implemented to classify assets into logical groupings. The results are then coded into smart contracts for seamless execution, with automatic iterations and re-calibration internally. This solves the problem of risk-estimation for different asset price discovery functions so as to reduce statistical bias in an optimized portfolio setting.
Finamatrix ICO will be offered to both the English and Chinese-speaking worlds and the company has a deep understanding of China and the China investor market. The Singaporean founder, Dr Lanz Chan, was based in China for 12 years (2004~2016) during the fastest growth periods in China’s history after a posting to UBS in HK, to develop the China markets. When the authorities approved the first stock index futures in April 2010, he then launched a CSI300 stock index futures fund with PingAn Securities while working for Galaxy Asset Management, one of the oldest hedge funds in Hong Kong founded in 1998. Lanz then embarked on a country-wide roadshow and within 3 months, client funds were fifty times the seed capital.
Finamatrix introduces innovative features to the token market.
- Finamatrix owns proprietary Risk-Cybernetics tech that can be developed and applied across industries in machine-learning algorithms to solve real-world problems. By developing a software protocol in smart contracts, risk-cybernetics can be applied to crypto-token selection in a portfolio setting with MVSK utility optimization, where MVSK is mean-variance-skewness-kurtosis paradigm that better describes and captures the inherent risks and returns of crypto-currencies, which are non-normal and usually skewed or fat-tailed.
- Finamatrix manages the private boutique Finamatrix Quant Fund which was setup since 2006 and is managing approximately 30m USD and this year the firm has setup with partners a 20m USD regulated Cayman fund. FIX token holders are able to access these funds with a very small amount of capital.
- Finamatrix also offers a 3-B token-pricing and liquidity mechanism for FIX ie. buyback and/or burn tokens when there is excess supply and/or issue bonus tokens when there is lack of supply (Buyback/Burn/Bonus, the three Bs). We are obligated to buyback FIX tokens in the event that there is insufficient liquidity in the exchanges but subject to quarterly cash-flows and overall audited performance. The firm will use not more than 50% of net profits to buyback FIX tokens. These functions will be manually performed to determine the equilibrium price and manage expectations (with regular updates) within a reasonable time frame to promote balance, stability and predictability, while Finamatrix will focus on boosting the demand function of the token by providing real and measurable value.
- By keeping things simple, the ownership of FIX tokens is proof-of-membership (via asset holdings) and large token holders may be awarded bonus tokens on a regulary basis according to quarterly audited corporate performance. A maximum of 50% of net profits will be distributed.
Finamatrix provides superior value to investors by capitalizing on inefficiencies in assets that cannot be detected with conventional methods, so as to increase risk-adjusted returns. Finamatrix will further build its global network of fund of funds, family offices and institutional partners and will continue to expand the network for crowdsourcing, synergistic and sustainable growth. With the advent of robo-advisory wealth management platforms, a range of new channels will be made available for Finamatrix to reach markets. The ICO of Finamatrix will be a low cost alternative for investors to gain access to these offerings.
The value proposition presented supports demand for ownership of FIX token as token holders circumvent all the costs associated with setting up a similar structure. We believe we have a highly-efficient and super-scalable platform that results in sustainability as we partner selected crypto-platforms to promote accessibility to decentralized crypto-markets.
Finamatrix claims that they have no competitors in the crypto space as the business model is unique in that any party can be a partner since Finamatrix will include new and existing crypto-currencies in its portfolio via its smart contracts. The models created will also be particularly useful for market makers and brokers in the crypto space.
The capital raised from the ICO will be initially allocated into a well-balanced, diversified and highly scalable portfolio as follows:
Software & Infrastructure Development : 30.00%*
AI-Selected Cryptos & Global New Techs : 20.00%*
FIX-Token 3-B Pricing Mechanism : 30.00%*
Capital in Regulated Quant Fund : 20.00%*
TOTAL : 100.00%
*allocations subject to change according to market conditions and requirements.