JCF Feb. 2020 Update: Building the Safest and Most Accessible Crypto Fund

Joint Commonwealth Fund (JCF) user dashboard

Greetings!

I’m happy to report that our crypto index fund to make basic income truly universal, Joint Commonwealth Fund (JCF), has been growing and improving steadily over the past month, some highlight are below:

• We were invited to a meet-up in Taichung’s local chapter of Business Network International (BNI), thanks to our Chief Investment Officer Robert’s arrangement. As a result, we now have at least 23 token holders (25 token addresses in total, but 3 are for JCF operation purposes, for “dividend pool”, “team token”, “donation token”). Assets size is also now grown to be over USD 30,000 (see above image).
• To help people participate and onboard JCF more easily, we’ve collaborated with Idea9 Marketing and offer the CryptoShop Crypto Purchase service, it’s essentially a “buy-on-your-behalf” service to facilitate the purchase of Ethereum (ETH) and JCF tokens. The service currently is in Chinese and offered only to Taiwanese.
• We decided to change our investment strategy to be 70% holding in cold storage and 30% on active monitoring with trading strategy, to both cut down the “systematic risk” of an overall downward crypto bear market.

For the last point, I’d like to elaborate a bit more: we intend to build JCF as the safest and most accessible crypto fund out there for ordinary people to build passive / basic income for themselves and people they care about. For accessibility, JCF has a very low minimal entry at just USD $10 minimal investment, and 0% entry / annual management fee.

For safety, right now we have 3 main mechanisms:

1. To avoid “non-systemic risk”, which is the risk of the failure of a single cryptocurrency, we adopt a top 10 index approach that re-balances monthly. This way we don’t bet on any single crypto but the overall crypto market. Even if Bitcoin itself fails in the future, as long as the overall market is on an upward trend, there should still be positive profits / return on investment (RoI).
2. To avoid “hacking risk,” we keep as much assets as possible in “cold storage” (Ledger NanoX), which is considered by industry experts as the safest way to store crypto assets. However, keeping asset 100% on cold storage creates another risk, which is the sudden drop in asset value due to market volatility. In other words, there’s still a potential “systemic risk” for any crypto fund.
3. To avoid “systematic risk”, or a long-term downward bearish crypto market, we believe the best approach is to have automatic monitoring in place, /would exit our crypto positions should any sudden downtrend happens, and, if the downtrend prolongs, we can exit all crypto positions into some stable coins such as USDT manually. So to monitor, we’ve decided to keep 70% of the assets on cold storage, but 30% assets on a reliable exchange for live monitoring, this way should any sudden drop in price happens, we will still be protected.

This is a quick overview of our current thinking and strategies, and we’d be happy to get any feedback or questions you may have. Please feel free to leave a message, send to contact@jcf.world, or post to our FB page. Thanks to all your support and let’s build a more generous world together, by making basic income as universal as possible!