Last year 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, many people entering the space are left without a clear-cut strategy as to which cryptocurrencies to hold that may appreciate over time. One start-up proposes a potential solution in a completely unique way.
Optitoken (ERC20) is the first algorithmically traded crypto portfolio, which will allow token holders exposure to a cryptocurrency that systematically implements strategies solely with the intent of increasing its value. OptiToken uses profits created by trading amongst a carefully selected basket of tokens in a manner designed to maximize profit. The project introduces the idea of “Strategic Scarcity” and coin supply control, amongst other interesting strategies put in place solely to benefit the tokens price and community.
The OptiToken protocol works in cycles. Each time a trading cycle is completed in the portfolio and a profit is created, 82% of the gains are reinvested directly into the fund, while 16% is devoted toward buying OptiToken itself evenly amongst all exchanges Opti is listed on. The remaining balance is split between the following: 1% to the people supporting the infrastructure and 1% toward operations. The first step induces upward price pressure and adds volume and demand to the Opti markets.
To protect price from those tokens re-entering the market as potential sell-pressure, the majority of the purchased OptiTokens (98%) are purposefully sent to an unspendable ethereum address to permanently remove them from the coin supply. The tokens will be lost forever but still viewable on any Ethereum block explorer which in turn provides transparency. The remaining amount, only a few percentage points of each cycle, is sent proportionally to token holders supporting the OptiToken technical infrastructure. One could liken this to techniques used by central banks for controlling the supply of currency available in order to affect inflation or deflation. In this case, the strategy will only be implemented to positively affect price through the means of deflation.
The tokens in the basket are comprised of the funds raised in the token sale event that is scheduled for early 2018. Each cycle can only occur based upon creating profits from the trading operations and will be managed by 3 professional traders who have years of experience in the cryptocurrency space.
Since the trading strategy has been in place as a test net, the portfolio has outpaced Bitcoin by nearly 100%. Meaning at this rate, or close to it, there should be a wealth of price support for the cryptocurrency. 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 and then selling in panic, as witnessed in the sharp crash today (December 22nd), the need for something like this is greater than ever. A truly unique and economically optimal cryptocurrency that has the ability to go to work its holders. As opposed to sitting dormant and waiting for adoption, OptiToken proactively begs for it.
The portfolio is not an investment fund but instead is a cryptocurrency that actively focuses its resources on hyper-deflation with the goal of producing massive price appreciation over time. In the near future, the team will incorporate machine learning and smart-contract automation to further enhance the project’s capabilities and reach.
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, Non-Chinese and Non-Cayman Island citizens to start but may open up to those geographies in the future if regulation eventually allows it.
Images courtesy of OptiToken