ICO Crowd Magazine Issue 3

Page 45

NOVEMBER 2017

Unless you are willing to become a full-time trader the crypto-market isn’t as transparent as everyone will tell you it is. At this very moment, high value investors, or whales as we call them, are spending hours sifting through large quantities of data, encrypted chats and technical research to establish long and short-term investment opportunities. Sure, you can audit and track all the transactions, but the reality is that we are given an information overload, the proverbial needle in a hay stack. Profitable crypto-investing has been left to the whales in the community and is almost out of reach of the ordinary man. Almost you say?

tasets would have stronger indicators, so to make better predictions in the future. This methodology also prevents the AI from being stuck in a local optimum, while reducing the analysis time.

As a practical example, let's say you want a quick win by finding an arbitrage opportunity. Currently there are roughly 1200 tokens and coins available to trade with, there are 10 major exchanges and roughly 6 fiat currencies available. Given this, that would mean there are 1200x10x6 factorial possible currency pairs. These currency combinations are so enormous that brute force algorithms would take so All investors know, that to long the opportunity find the right investment would no longer exyou will need to research at ist. Our AI however, can learn from previleast 50 poor investments. ous experiences and predict when a speToken holders will have cific arbitrage would emerge. For instance, access to the premium a relatively large voldataset that is usually only ume of tokens has available to the whales in been put on one exchange but not on the industry. the others, that can create arbitrage between exchanges.

AIDAO The AIDAO is here to make the crypto-market transparent again. Not by giving you all the information but only giving you the relevant information. The AIDAO was intended to serve as a private investment algorithm for the current team members of the AIDAO. However, we soon realized that we were building a world class artificial intelligence system, that poses as a novel approach to the information problem. The AI, when fed with such premium information has the best chance of successfully predicting price movements and producing higher returns. Returns that are usually only obtainable for insiders and the whale community. When the premium information is shared with the investors in the AIDAO they can utilize this to reap the benefits as well.

At this very moment, high value investors, or whales as we call them, are spending hours sifting through large quantities of data, encrypted chats and technical research to establish long and short-term investment opportunities.

SO HOW DOES IT WORK? All investors know, that to find the right investment you will need to research at least 50 poor investments. How and when they choose to invest differs per investor and risk appetite. Does the investor have a long investment horizon or a short one? Are they applying arbitrage or noise trading, whatever methodology they are using each will have to go through a lot of data to make the right call. Just like any other investor they’ll have to read into the company's business plan, experience, longevity, crowd sentiment and the list goes on. There is a method in their madness and we have access to the most experienced investors in the industry. Our AI is created in such a way that it can analyze their trading strategy and perform the same analysis as them. Applying sophisticated dynamic data analysis, relevant data sets are added and removed to support a specific trading strategy. This means that the AI will only have strong indicators to support investment decisions, it can back test to check if new da-

TOKENS The AIDAO tokens can be used by any token holder to exploit the predictions metrics of our AI. Our dashboard will give the token holder the option to select any one of our trading strategies and check against past performance. Each trading strategy will give you indicators of risk, volatility, performance and liquidity. We want our members to be fully aware of all the ins- and outs of our strategies that are present in the market. Token holders will have access to the premium dataset that is usually only available to the whales in the industry. All this data will be presented in a way that can support them in their own hybrid investment strategy. As additional data sources are introduced the value of the tokens rise, this is when tokens will be issued to keep the AIDAO stable. Once a quarter we’ll publish a report on the current level of prediction confidence of our AI. Value in cold storage will be used to support our endeavors. CONCLUSION In retrospect we are building an artificial intelligence that will be fed with the information usually only accessible to high ranking investors and make it accessible to the AIDAO community. We’ll display the data in such a way that blockchain investing becomes transparent again, so our members won't need to spend hours trying to find the right metrics. Additionally, we will make investment strategies accessible to our members, so they can invest like pros. 43


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