About Efficient Frontier.
Thank you for taking the time to get to know us. We’d like to get to know you too.
We are passionate about Bitcoin, blockchain and crypto. Some of us think of ourselves as revolutionaries.
This is a time like no other before where massive positive global change is being created through technology. At this very moment there are 1000’s of developers around the world with their fingers on keyboards writing code to invent a new world based on new monetary schemes, blockchain and crypto. If you’ve arrived at this understanding already or if you are just starting to learn we welcome you to our blog and to our company. We want to learn, think, create and make positive change together.
We are serial entrepreneurs, bitcoin ambassadors, physicists, traders, investors, computer scientists, mathematicians, nerds, business professionals and some other things in between. We have a deep desire to be (and believe we have already become) an important participant in the blockchain ecosystem. Our fingers are also on the keyboards.
Everyone has a personal story about when they “got into crypto”. We’d love to hear yours.
As a company, our story goes like this…
We started our professional endeavor in the space in early 2017 when Tradomatics (our sister company who’s powering over $5B in annual trade in traditional markets and been doing so for 12 years) started playing in the crypto field with its algo and quant strategies.
During this time we were meeting entrepreneurs and companies in the space to learn and share experiences and findings.
While we were going further into the rabbit hole, one of the first major insight we got was that the teams we have been meeting came with very strong tech background and many times with solid idealism, wanting to change the world, however they knew very little about the public financial markets and the challenges involved.
During the 2017 golden rush it was harder for us to convey the message that companies planning to be publicly traded (crypto style) need to think about their actual use case, “underwriting” process, strategy, planning, investors relations, funding, publicity and many other areas, MUCH earlier in the process.
We were hearing things like “we’re not worried, we’ll put it on the exchange and it will 4X the next day..” to us this was a red flag… it continued more than we expected though… then reality kicked in.
That lead to another major insight which was the highly degree of token price volatility due to the lack of liquidity in the market, happening because of few major crypto market specific characteristics:
- There are many traded companies and pretty low (real) trade volume
- Most assets held by retail investors
- The market trade 365/24/7
- Almost all assets are sitting in drawers, and not on the market.
This volatility leads to price swings unassociated with the larger market trends or facts (negative or positive) about the company performance.
As official market makers for over 12 years in the traditional markets, this was obvious to us and we were well positioned and equipped to tackle this problem.
Over the past two years we’ve adapted our trading platforms to the specifics of the crypto exchanges and blockchain assets. Effective market making offers a massive impact on the short and long term financial viability of a company trading in public markets. We’re talking multi million dollar outcomes. We’ll be publishing expansive articles on this topic. Please follow our blog or reach out to us directly to learn more.
We found that token distribution mistakes, poor managed bounty programs and lack of strategic planning destroy value in the illiquid crypto markets.
This has destroyed a major portion of value for many tokens issued to date. We developed predictive algorithms that determine the optimal times and quantities to sell tokens allowing large orders to be sold off over time intending to cause minimal price impact. Our customers are now establishing agreements with their major token holders so that all large token sales run through our algorithms combined with more rational lock up periods and vesting strategies.
We found an interest in understanding how tokens move across wallet types and specific addresses on the blockchain and the correlation to the financial markets.
We could see this was important data that would inform trading algorithms and investor sentiment. Because tokens can be traded on numerous exchanges at the same time we found it advantageous to consolidate order book and price data across all exchanges in real time to understand the full market price at any moment and identify places where order books were weak and price gaps were wide across all exchanges.
Our roadmap around analytics is big and exciting. We’re rolling this data into customer facing dashboards and feeding it into our algorithms.
The market rise and crash of 2017 to 2018 has been nuts. ICOs that raised 10, 30, 60, 100 mill USD equivalent and more largely in Ethereum and Bitcoin and who did not sell off to USD or to a stable coin found their treasury (Bank accounts) fall by a factor of 5. Some projects have gone bankrupt. This has been incredibly painful for some.
We should not feel sorry for everyone. With a wider historical lense on, there are many projects in a quite reasonable if not positive or ridiculously positive situation given almost all projects are in a pre revenue state.
This massive reduction in financial resources lead us to begin exploring the area of treasury management. Simply stated treasury management is the activities a company undertakes to manage, grow and protect their financial assets. This is an expansive area that comes with a great deal of responsibility depending on how much of it one takes on.
We’ve been developing and testing crypto trading algos for over 2 years now. These algos trade only on the major cryptocurrencies, not on our clients ERC 20 tokens. They find arbitrage opportunities across the crypto exchanges.
For the last six months we’ve been piloting the trading algorithms with several strategic clients and our own portfolio. Even in this down market the returns have been impressive. Stay tuned to see if we make this a commercial offering.
If it’s not obvious by now, we’re highly entrepreneurial. We’re in constant search of new high value products and services we can develop and commercialize that fit within our core competencies and that help blockchain companies. We will never turn down an opportunity to talk and explore with you.
Today
We support few dozens blockchain companies and growing. This combined with 12 years algorithmic trading in traditional markets makes us a valuable consulting partner on a wide range of topics related to digital assets, strategy planning, financing and ongoing treasury management.
Beyond the results of our products, our customers get a LOT OF VALUE out of the time they spend with us as do we with them. It’s become obvious and we hope you see this in this article that we should be involved in the early planning discussions when a company is preparing to raise capital through an ICO, STO (Securitized Token) or other digital asset. We plan to offer formalized consulting services constructed around specific high value topics soon.
Which leads us to the name of our company — Efficient Frontier.
The efficient frontier concept was introduced by Nobel Laureate Harry Markowitz in 1952. It is a cornerstone of modern investment theory. The efficient frontier is the set of optimal portfolios that offers the highest expected return for a defined level of risk. We are involved in multi million dollar outcomes when we engage with our clients. What we do has to be highly calculated and harded. We geek over data, mathematical insights and market knowledge. We see ourselves and our customers working together to build something new… a new frontier if you will.
With all of this we felt Efficient Frontier did a good job encapsulating the spirit and science of what we do every day.
We hope you do to.
Roei Levav
Co-founder, CEO
Efficient Frontier
www.efrontier.io
