Dear Community,
I am Toerezxer Skurl, private investment adviser of a small closed circle of friends and family. I have been trading a wide range of instruments for years and gained a solid understanding of how financial markets work. You may see my Trading View profile to catch a glimpse of what I have been doing in the market: https://www.tradingview.com/u/Toerezxer
I am proud to announce you Skurl Private Investment Fund, or SPIF in short. In what follows, you may find what I have in mind about this project.
Motivation
Many profitable years in the market have culminated into a point where I have finally decided to expand the investor circle and begun exploring the possibilities that would allow me to invest with others’ money to amplify the impact of my skills. Launching an offshore hedge fund was the most straightforward option to this end, but I wanted to keep my targets more conservative and free-spirited, and decided to start with the decentralized economy.
Business Plan
Simply put, our business will be of a well known type of a hedge fund, which involves 4 processes:
- Get the money.
- Invest with the money.
- Make profit.
- Distribute the profit.
A crypto-platform will give us the opportunity to issue our crypto-assets (the fund shares) which are to be sold at a certain price. Then, the investor will hold the crypto-asset in their crypto-wallet and we will transfer the investor’s fund to one of our trading accounts. As profits being made, we will distribute them to those who hold the crypto-assets at the end of the month.
Although our primary target investors are those who are well acquainted with bitcoin, we also want to provide as much ease of access as possible for the outsiders. Thus, for crypto-asset issuance and dividend distribution, despite there are highly developed 2nd generation crypto-platforms such as Nxt, we think that it might be best to keep the fund flow in the bitcoin blockchain in order not to introduce more and more concepts to the potential investors. We therefore thought that the Counterparty protocol might be the best option for maintaining the fund flow. As an alternative, colored coins concept might as well be made use of.
Fund Flow
Since it will take time to transfer the funds all the way from investors to the trading accounts, the fund flow needs proper organization. Following will be our schema, which is subject to change: The fund shares will be on sale in the first 7 days of each month. Investors are expected to make their orders by reaching us via email and deliver the calculated amount of bitcoins to us within this period. Subsequently, the crypto-assets representing the fund shares will be released into their wallets until the 10th of the month. Dividend distribution of the previous month will take place before the asset release, i.e., between 7th and 10th of each month. So, after the 7th of a month, investors will need to wait for the next month to get involved in the pool, or try their chances in Counterparty’s decentralized exchange to give a bid order for our crypto-asset.
Dividends & Fees
The magic ingredient in our business will be our persistent bounty. To begin with, there is no place for management fees in our fee structure. Moreover, our goal is to reach 10% monthly gain. Accordingly, for example, $1K investment in our fund shares will get $100 monthly dividends, a huge fraction of the initial capital such that it could make our fund shine among others. Any excess profit will be appropriated by the fund. Should the monthly earnings, after deducting the liabilities, be less than 10%, all of the profit will be sent to the investors without any cut.
I will have no salary as the portfolio manager but at the moment I am the sole proprietor of the business, so my share from the profits will be limited by the excess profit I make. Our fund administrator and crypto-asset director will get a fraction of the fund shares which are sold during their employment, so their “salary” will be proportional to what the investors get.
Crypto-Asset Director Wanted
A successful hedge fund requires more than the ability to multiply cash. I know how to multiply cash, but I need a team to run a collective investment scheme within the decentralized economy. The team member which I most urgently need is the crypto-asset director who is knowledgeable in how to manage and promote a crypto-initiative. The crypto-asset director will be responsible for managing the campaign, promoting the sales of the fund shares and maintaining investor relations within the bitcoin ecosystem.
The interested may PM me. Previous experience in a project within this ecosystem is preferred.
Reliability & Trust
Everyone would readily agree on the importance of reliability and trust in such a business enterprise. Given the historical failures of hedge funds (the interested may google “LTCM” as a well-known example), even a regulated business whose historical record is quite satisfying cannot be easily relied on. So we leave the issue of reliability to how the fund will actually perform. As for trust, since our business will be of a type of “as is - no warranty” as with almost all of the crypto-ventures, there will be no legally binding contract between SPIF and its investors. Lacking the guarantee of the success or even the legitimacy of the business, we need more than anything your opinions on how to develop the needed trust.
We want to create a balance between anonymity and transparency. As for taxation concerns, we are not going to publicly disclose our identity in the first, experimental stage of our business. I believe this is an unavoidable handicap of starting the fund in the decentralized economy. However, considering the successful enterprises in the crypto-world which are yet anonymous (e.g. btc-e.com, liquidtech.info), we believe we can achieve our goals in a slow but steady manner. Moreover, serious investors with the intention to buy a notable amount of shares may see who we are, and their testimony could accumulate a positive feedback for us.
Future of the Project
Our first goal is to get the fund operative as of January 2016. We are in no rush for total liquidation of the fund shares. The first stage of our business will be experimental to some extent in order to evaluate the public reaction to the performance of the fund. Our aim is to raise $100K during that period, which, we expect to last one year. We have no plan of issuing additional shares until 2017. We will then review the annual productivity of the business and decide for the future of the fund. The chances are that we may decide to relocate our business in the regulated legal world, that we may issue another crypto-asset for an alternative fund, or that we may merely continue what we will have been doing. Should we decide to terminate our business, all crypto-assets will be bought back from the shareholders.
Why SPIF is Important and How It May Help Crypto-Economy
Although the blockchain technology has many potential uses outside finance industry, the current tendency of the bitcoin ecosystem is mostly limited to finance-related services. Nevertheless, the ecosystem is lacking a proper crypto-fund. There are serious hedge fund enterprises, on the other hand, which focus on investing in cryptocurrencies (e.g. crypto-currency-fund.com), but those are traditional hedge funds which use bitcoin as an instrument to invest in. However, what we aim to be is a hedge fund whose shares are issued and bought/sold/transferred and whose dividends are distributed within the blockchain. This is what the bitcoin ecosystem lacks in general. There are such funds using Nxt blockchain, but none on the bitcoin blockchain, to my knowledge. Standing in this breach would undoubtedly help crypto-economy improve, and provide bitcoin users with a chance to gain more and more bitcoins. The high profit opportunities should at the same time attract people’s attention to bitcoin, helping its image be constructed in a positive way by outsiders.
Miscellaneous Details
Fund type: dividend paying closed-end fund
Investment strategy: speculative active investment
Instruments: mostly currencies and commodities in leveraged markets
Offering price: $100
Number of shares: 1K
Decimal points: 4
Minimum investment: 1 share
Initial Public Offering
To be announced.