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Last year has brought terms like bitcoin and cryptocurrency to the vocabulary of more than half the world’s population. Estimates indicate that as many as 1 in 20 people own some form of this new asset class. However, the recent rush has brought many to mistake cryptocurrencies for “corporate stocks”, and not as utility tokens, currencies and/or commodities. One start-up is showing the advantages of tokenization, as compared to the corporate stock structure, in a completely unique way. Optitoken (ERC20) is the first algorithmically traded crypto fund, which will allow token holders exposure to a carefully selected basket of tokens that will be traded automatically with the intent of creating a profit. The project introduces the idea of “Strategic Scarcity” and coin supply control, amongst other interesting strategies put in place solely to benefit the value of token holders and community.
What is “Strategic scarcity?” One could liken it to some of the techniques used by central banks in regards to controlling the circulation of currency available in order to affect inflation/deflation. In this case, the tool will only be implemented to positively affect price through the means of deflation. How do they do it? That brings into subject some of the other techniques the team is implementing such as algorithmic trading amongst a basket of carefully selected tokens with the intent of creating the most optimal amount of profit possible. The tokens in the basket are backed by the funds raised in the token sale event which is scheduled for early 2018. When a profit is created, the profits are used to buy, in equal amounts, OptiToken directly on each exchange that Opti is available for trading. This first step induces upward price pressure and adds volume to the Opti market(s). To protect from those tokens re-entering the market as potential sell-pressure, the bulk of the tokens are purposefully sent to an “un-spendable address.” Meaning the tokens will be lost forever but still viewable on any ethereum block explorer as to maintain transparency. The remaining small amount, only a few percentage points of each cycle, is sent proportionally to token holders supporting the OptiToken technical infrastructure.
Each cycle which can only occur, based upon creating profits from the fund. That’s going to be watched over and managed by 3 professional traders, who between them, have years of experience in the cryptocurrency space trading and the profits and wallet balances to prove it. The portfolio to date has outpaced Bitcoin by nearly 100% since the funds test-net inception. You can track its progress on the company’s website at https://OptiToken.io.
The founder, Sean Donato, says, “With so many newcomers buying at all-time highs than selling in panic, such as was witnessed in the sharp crash today (December 22nd), the need for something like this is greater than ever. A truly unique token that has the ability and potential to actually be almost as profitable in bear-markets, as it is in bull-markets. This project makes it possible for someone who’s barely beginning to grasp blockchain technology, to potentially profit at equal or higher rates than self-proclaimed seasoned vets.”
In the future, the team seeks to incorporate machine learning and smart-contract automation to further enhance the projects capabilities. You can whitelist for the private pre-sale and ICO now and learn more about the project at https://OptiToken.io or follow them on Twitter @OptiToken. The project will be available for Non-US and Non-Chinese citizens to start but may open up to those geographies in the future if regulation eventually allows.