MoatFund Quarterly Report (June 2018)
Heads up! We have completed our very first quarter.
At MoatFund, where we are all set to build a platform for shifting all major activities of the Fund Managing Industry on Blockchain — operated by smart contracts, which is publicly accessible and can control the entire network of fund managing capabilities (if you’re reading this for first time, read this article detailing everything about MoatFund).
Ethereum was by far the most obvious choice to build on top of, as it has already won the race to become the foundation of Web 3.0 and will become the fundamental base layer that all major DApp platforms will choose to build on top of in the future.
In this article, I’ll outline our activities, assets under management and our future plans. So far, we have raised 38.76 Ether with 203,493 MTU issued to 25 early investors. Click the respective link for blockchain reflection. Distribution of raised ether is given below in asset calculation.
*out of total MTU, 9,668 MTUs are issued to team as administration charges.
Asset Calculation.
ERC20 stats.
Around 60% of the funds are distributed among 11 ERC20 tokens, rest are kept in Ethereum. Following are the specific details (symbol and invested ether):
- MANA (3)
- KNC (2)
- OMG (2)
- LINK (2)
- REQ (2)
- ZRX (1.5)
- POWR (1.5)
- RCN (1.5)
- RDN (1.5)
- BNT (1)
- NIO (0.75)
…equates to 18.75 ETH which is currently approximately valued at 13.75 ETH (as on 30th June). You can check the underlying assets at MoatAsset Contract (Etherscan).
*we had sold off SIG, BEE, STORM, ABD and a fraction of POWR while migrating tokens to MoatAsset due to being a non protocol token and high risk nature. Click respective links to crosscheck it the Tx.
Ether & DAI Creation stats.
Apart from above ERC20 tokens, we have 24 ETH, of which 4 ETH is stored at MoatAsset contract and 20 ETH is locked in DAI Creation contract with a loan of 3,480 DAI which was again used to buy ETH.
You can read this article to learn more about DAI Stable Coin Creation and how MoatFund is planned to leverage this next wave of Decentralized Loans.
Assets.
ERC20 token valued 13.75 ETH + 24 ETH (calculated above) = 37.75 ETH.
Liabilities.
7.5 ETH (which is equal to 3,480 DAI, as on 30th June).
Profit / Loss.
[(Assets - Liabilities) / Raised Ether]
[(37.75 - 7.5) / 38.76] = 21.9%
MoatFund is currently operating at a loss of 21.9% due to laggard crypto market, loss in non-protocol based tokens & high volatility of tokens as compared to Ether.
Token Migration Stats.
Our new protocol, MoatFund v2.0 only supports upgraded token contract, MoatUnits (MTUv2). All the existing unit holders are requested to migrate their MTUv1 into MTUv2 tokens.
Out of 203,493 MTUs — 134,671 have been migrated. Remaining investors are requested to migrate their MTUs. There is no time limit. Equivalents tokens are locked on . Check this article for more details.
Lessons we learnt.
As a whole, drop of recent crypto market was mostly triggered by a chain of events — China’s relation to cryptocurrencies, Mt. Gox weight, tightening of crypto exchange regulations in Japan, Korean exchange hack & ban on crypto ads by social media gaints. None of which fundamentally changes the crypto currencies though.
However, bullish market helps us earn and bearish market helps us learn. Following are the lessons we would like to share with you.
- Non-protocol based tokens.
- Small cap utility tokens.
- Tokens with no market ready product.
At MoatFund, we will strictly refrain from investing in above range of tokens, reducing the risk to a great extent and making it more predictable to sustain the market volatility in long run.
We sincerely believe that protocol based utilities tokens are here to stay. Non protocol tokens are just ERC20 tokens issued on blockchain which are used on their centralised apps (not dapps). And we are determined to add tokens which are used on dapps like BNT, KNC, OMG, ZRX etc.
Less than 1% of the world uses cryptocurrency today. What will it take to reach next 1%? 5%? 10%?
I don’t think, wide crypto adaptation will happen due to moneyness of cryptos. It will most likely to happen due to DApps. A social media DApp, games on blockchain, prediction market, or a DApp that does something we don’t even know we want yet.
DApps are the key.
Most people trust their social institutions and believe their stories. They trust their money. At least in the developed economies where most of the money is. They aren’t going to onboard onto a blockchain protocol just to undermine their nation’s central bank (well said by Tushar Jain).
Most new users in crypto will be onboard via dApps, and the engineers who are building the smart contract platforms these dApps live on, are engineering ways to make sure their native token is used as money within their dApp ecosystem. And that tokens are also known as protocol based utility tokens (all the tokens except one (NIO) in MoatAssets are protocol based tokens).
Think Long.
The power of being able to program money without permission is very wide. After just five years, the crypto financial system will be used to manage fundraising, trading, lending, derivatives, payments, contracts & insurance.
Trustless, global, extensible, and 24/7.
There’s nothing to be afraid of market crash. Crypto market cap peaked at $833 billion USD. One year ago today the market cap was $110 billion. Today the market cap is $254 billion.
Last 52 week growth is more than double. The recent peak will be a very small hump on long term chart of crypto currency.
Wise investors stay invested for long. Remember, there’s no “get rich quick” scheme, it doesn’t exist anywhere (not even in crypto). Wealth takes time to grow, just as businesses take the time to grow in values. The “get rich quick” people tend to vanish when the “quick” part fades away.
Future Plans.
Expanding MoatFund operations.
As stated in our previous article, we are expanding MoatFund operations to a wide range of Ethereum Blockchain based projects. We already invested in Utility Tokens and started DAI Creation. Our next important target will be to include Security Tokens & Crypto Assets in our portfolio.
Kyber Network Integration.
We have plans to integrate almost all of the DEX trading platform. Our initial launch will include Kyber Network (KNC). It’s one of the best DEX with high liquidity. Instead of matching buyer and seller, they had introduced a concept of Reserve Managers who buys and sells tokens. We have already tested the contract to contract trading on Ethereum testnet.
Pretty amazing to see contracts are exchanging assets with no middlemen at all. A great enhancement in fund management industry.
Base Currency.
Currently, ether is used as base currency for all MoatFund operations. We are planning to replace it with DAI Stable Coin. It acts as a hedge against volatility and also makes the process of tracking portfolio performance real easy.
Liberalising MoatFund Protocol.
Our protocol is fully restricted to MoatUnits. We will draft proposals of renting out our protocols to third party users (other fund managers). The protocol will be fully governed by MoatGovern holders. Issuance of new tokens will liberalise our protocol globally. Early investors will be rewarded accordingly.
Incentivising Governance Mechanism.
We are consistently looking for ways to incentivise the people who assist in maintaining MoatFund security and maintaining the decentralised governance in MoatFund. We will surely come out with some appropriate method in the next quarter.
Get in touch with us!
We are continuously assisting people get educated about how rapidly this technology is advancing and revolutionising our world. Everything will connect like never before.
Our website: moat.fund.
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