Caviar Quarterly Report — Q4 2018

Dear Community,

As many of you know, the markets did not improve in Q4. We maintained a relatively neutral posture with continuous exposure to real estate debt and some crypto. A lot of our holdings have been liquidated in Q3 and Q4 and moved to stablecoin. We feel that there is likely more downside ahead, but we are slowly finding a bottom. As a matter of fact, we have been slowly purchasing ETH, BTC and XRP on dips, gradually adding small amounts. We are optimistic that either this quarter or the upcoming one should show a trend reversal to the upside.

Even though we outperformed the market once again, we were unfortunately unable to have a profitable quarter and, therefore, there will not be a profit-sharing distribution in Q4.

Our performance and market outlook are summarized below.

— The Partners and Team at Caviar

Market Outlook for Q1 2019

While we do not feel we have reached a full bottom yet, we are optimistic in the mid to long term. With Bakkt and other institutional exchanges coming online, we feel there will be new liquidity injected, and the markets will move to the upside. However, we do not feel we are going to have a major bull run like we had in years before, and frankly, these types of runs are not healthy, lead to bubbles and eventually, selloffs. We think we are going to see a slower, more sustained trend to the upside.

Major Initiatives for Q1 2019

Algo Trading and Data Science — we are continuing to pursue a few algo strategies, however, we have scaled this back some, as we have not yet been able to reach a consistent desirable return from the strategies we have been testing.

Real Estate Lending — we are investing a lot of effort here, as this continues to be one of our core businesses we’ve had a lot of experience and success with, that can bring real revenue regardless of the market conditions.

Exchanges — we are looking to list on mid-tier exchanges after the end of January. See note below.

*Community Request*

If anyone out there can make introductions to mid-tier, reputable exchanges outside of the United States of America, we would welcome those introductions. We are looking to list on exchanges that do not “wash trade” and do not charge large listing fees. Feel free to contact us with your suggestions on the Telegram group, or send us an email at help@caviar.io.

Financial Results

In the 4th Quarter of 2018 Caviar had a net investment loss of 16.9%.Here are the leading market indicators during the same time period for comparison:

Total Market Capitalization -43.0%

Bitcoin -43.3%

Ethereum -39.4%

Below is the Caviar portfolio overview by asset type as of the end of the 4th Quarter. You can view a more detailed breakdown in CAView .

In other news, starting in 2019 we will provide updates on a monthly basis.

Disclaimer: Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. Future profits are not implied nor guaranteed, past performance does not guarantee future outcome. The information does not constitute investment advice or an offer to invest. Caviar tokens are not, and will not, be registered with the SEC, and are not offered or sold to persons and entities from the USA and the Cayman Islands.