CountingHouse is an existing foreign exchange Hedge Fund using algorithms and mathematical computations to beat the Forex markets; this way the company makes profits for its clients. The organization has been around for a while recording profit margins as high as 70-120% for their investors.
The rise of the cryptocurrency markets has sparked excitement and curiosity at the same time depending on a players approach. CountingHouse is among the few Hedge Funds investing heavily in research within this inefficient market as of now. The team has been running trading strategy tests on the crypto market in the past year and has identified a potential net profit of 600% annually from this class of assets.
The opportunity identified by this Hedge Fund has resulted in the launching of an ICO related to CountingHouse. The Pre-sale for this ICO close on 9th May 2018 in order for the main sale to commence on the 17th of May. CountingHouse is hopeful that volatile nature of cryptocurrencies will be a good fortune given that the business makes a profit from volatile trades hence experience. Finally, members of the public will be able to participate in CountingHouse crypto trading via the ICO which is more scalable than previously when only professional investors could participate.
How Will the Fund Work?
The arrangement is quite simple for any investor who has been in stocks or any form of stake investments to understand. Interested parties will purchase the CountingHouse tokens as a form of security tokens which means holding a portion of the investment. The Hedge Fund will in return invest the monies in the crypto markets applying their trading strategies to avoid risk and make profits. Investors will then grow the value of their portfolios if CountingHouse does well in capitalizing arbitrage and profitable trades. In addition, the company plans on buying back some tokens to drive the demand up for value addition in future.
CountingHouse will stick to algorithmic trading although some of the funds will be apportioned to maximize arbitrage opportunities. This will be done in the following proportions:
- Algorithmic trading: 60%
- Double-sided arbitrage: 30%
- Passive reserve (ICOs, debentures): 10%
Just as is the norm in the financial services sector, this project will be releasing quarterly reports to keep the public updated on their progress. The team is very bullish on their speculations suggesting returns as high as 600% for the first year but this can also be the loss given the volatile and young nature of digital assets.
The question of how to regulate cryptocurrencies has been a hot topic in the recent past with the SEC cracking down on some ICOs. CountingHouse has identified a jurisdiction in which they will have minimal compliance to do when it comes to crypto trading and it is for this reason they set up their crypto fund in Seychelles. A couple of investment companies find this location regulation friendly especially in terms of transfer of capital due to minimal foreign exchange controls.
Cryptopreneurs are currently facing a couple of challenges with banks trying to comply with their regulators hence less capital is flowing into the potential crypto arena right now. CountingHouse has somehow managed a way to go about in evading heavy crypto regulations but we are yet to see how sustainable this model will be.
CountingHouse Competitive Edge
Most people would not be willing to leave safe havens in stocks and bonds for an unknown market unless the risk is well compensated for. CountingHouse has the following benefits when it comes to its trading strategy;
Unlike most Hedge Funds where large investments are required, CountingHouse can accommodate investors with as little as $200.
Investments have long been known to be economic drivers but in some cases have consumed the economy especially where assets were not properly valued. The experience within CountingHouse is in a better position in picking up the valuation of cryptocurrencies than most players in the financial services sector.
CountingHouse stands at an upper position having operated within Forex markets for a couple of years. This makes it easier for them to acquire and allocate proceeds than their counterparts who have just begun crypto trading without prior experience in any markets.
Investors can be able to liquidate their funds within no time by selling their ownership/tokens. The probability of receiving these funds is increased by mathematical techniques for risk aversion.
Countinghouse Fund Difference to Other Finance ICOs
Most finance ICOs are new platforms whose development is still in progress while survival is pegged on the regulations to come in future. CountingHouse is quite different as the fund is hedging investments directly right now via access to the Forex markets.
This is the idea that the company aims at implementing within the crypto markets as well. The company is not a trading platform but instead uses brokers to execute their trades within markets. In addition, this Hedge Fund is not reliant on swing or position trading hence profits in bearish and bullish markets altogether. Crypto markets might turn out to be a good area for this ICO given that the issuer prides of thriving in volatile markets.
This project seems quite lucrative given the past figures of CountingHouse business profits. However, we cannot always predict the future with certainty and if it were possible then financial bubbles would never be. It is safe to say that this ICO can only be evaluated once the project has generated significant returns for peer comparison.
On the brighter side, crypto markets are indeed volatile which creates an atmosphere that can be well exploited by CountingHouse trading strategy in addition to arbitrage opportunities.