The project aims to create profits from this ongoing series of trades and infuse it into the market(s) of OptiToken itself to provide constant sporadic upward price pressure. The tokens purchased are then destroyed by sending them to an unspendable address to create ever growing scarcity in the token supply and disallow the tokens from re-entering the ecosystem as ‘sell pressure.’ The remaining OptiTokens will gain
value each time this cycle occurs.
Diversity: An expertly curated and diversified portfolio of cryptocurrencies used to jet-fuel a single
Cryptocurrency in a deflationary manner. Opti will be traded on at least one major exchange.
Algorithmic trading: Exposure to an algorithm that has consistently outpaced Bitcoin. Developed by crunching data from the work of experienced traders. Will integrate machine learning.
24/7 Algorithm: Crypto doesn’t stop and neither will OptiToken. Constant, round the clock automatic trading to identify trends in order to support the currency.
Buy pressure: In every automatic buy cycle, a portion of the profits created will be used to buy.
OptiToken on the market thus providing upward price pressure.
Strategic Scarcity: 100% of the tokens bought back will be sent to a provably unspendable address that can be verified transparently. OptiToken will be the first project to use this strategy for the purpose of raising value for adopters. It will in effect be the first hyper-deflationary currency in history.
Transparency: The portfolio will be externally audited on an annual basisand as needed to maintain integrity for OptiToken. All movements can be tracked and verified using the blockchain.
Problems and Solutions
Problems with Automation
The major problem to date is failure of robust and consistent safety measures. For example, in 2012
Knight Capital lost a total of $440 million dollars when its stock trading automation accidentally sold all the stocks it had bought a few days prior.
Optitoken’s theory on prevention of such events is to split the actively traded portfolio into smaller groups based on different fail-safe measures and also different strategies. A portion being left to human trading and rebalancing. Furthermore, OptiToken seeks to create customized solutions by working with the exchange itself to implement backup fail-safe measures and controls.
Problems with Machine Learning Implementation
The major idea that spurs development is to implement machine learning based on social network and media events. We believe this to be a fundamental flaw for several reasons.
a) The case is more often than not that once an event is in the "news" it is too late to partake in a particular trend. In the team’s experience this is very common, and chasing trends is never a shrewd trading strategy. However, one may still answer, what if you programmed to”sell the news?” The problem here is that any machine in this day and age is not sophisticated enough to weigh the importance or relevance of any particular headline. It would be reckless to try to game this strategy in a contrary manner.
b) With little to no regulation in place as of now, headlines can be manipulated too easily to supply concrete data to quantify or execute actions for. Not to mention the presence of propaganda social media accounts and social automations. An automation set to track increase in the posting of a particular cash-tag such as "$NMC" may be adversely affected by one individual acting as many, through the implementation of multiple fake accounts programmed to promote said coin in some public manner on the social media platform.
OptiToken is actively researching mechanisms peculiar to the space and will eventually implement learning patterns and behavior based on cryptocurrency metrics such as mining, transaction volume, hashing power movements, mempools and more. We believe these fundamental numbers tell the story of true sentiment and can be acted upon in small sized trades to "squeeze profit." We believe that this
type of trading is best when done only with a small portion of portfolio as to hedge against its inherent risk, yet still allows accumulation of significant profit over time.
OptiToken ($OPTI) is an ethereum ERC20 token, which derives its value from an underlying portfolio and the price support created through careful buy pressure induced by buying Opti Token directly on listed exchange(s) with the profits of trading said portfolio. The tokens bought back are destroyed all these bought tokens immediately afterwards creating scarcity. The trading of the basket is based on a simple algorithm that is designed to buy low and sell high, and uses the Euro as a fiat
instrument for stability when no buy target is available at the time ofasell. Tokens in the basket were selected by the founder and team based on months of experimentsand success creating profits from a similar but more primitive strategy.
Tokens in the basketare not limited to atop market capitalization filter. The formula has been refined and will continue to be optimized as it moves forward. The picks
that Opti will focus on are tokens with strong communities, sufficient volume, strong marketing presence, strategic partnerships and especially active open-source development on their respective source codes. Unique niche market coins that could be considered to have reasonable or undervalued market capitalization are also part of the strategy and in special cases Opti Token can seek to incorporate, in a small amount, cryptocurrencies or investments not listed on Bitfinex. All of the tokens in the basket should have concrete and active development.
A portion of the profits, 16% to start, created when selling or exchanging the token when completing a cycle will be used to buy OptiToken on available exchanges in equal parts, thus providing upward
price pressure. A cycle would consist of a coins meeting a certain criteria and than being sold into the next coin that meets buy criteria, assuming the two have a pair. If they don't, the trading balance will need to be turned into bitcoin or ether to be exchanged into the optimal cryptocurrencies that meet buy criteria. If no tokens meets buy criteria, then a portion will be sold into fiat, primarily the Euro, to stabilize and lock in gains.
Along with the prior, the profit balance from each successful cycle would be split in the following way:
- 82% will go toward rebuying the next targeted oversold coins in basket in order to increase the portfolio’s value.
- 16% will go towards buying Opti coins in order to create upward pressure on the price.
- 2% will go toward operating expenses.
- Launch of testnet tracking gains and gathering data for use in the final algorithm.
- Initial starting team assembled - including one dev, one business developer/project manager, one quant
and legal team.
- Launch of website and initial press releases and marketing strategies.
- Launch of social media channels to start building a community.
- Targeting and acquisition of initial purchases.
- Launch of ANN, white-paper to follow soon.
- Onboarding of further help and developers.
- Further development of BETA testing algorithm infusing more value and growing initial portfolio.
Acquisition of advisor team.
- Final draft white paper released.
- Further onboarding of advisors and team.
- Further development on algorithm and any user interfaces phase 1, wallet etc.
- Token sale marketing and PR campaign
- Begin coding and implementation of backend testing interface on exchange
- ITO: 90 days
- Start work on algorithm
- BETA launch on exchange(s), growing the portfolio right away after 1 month of ICO. Portfolio will not sit idle but instead go right to work after a month.
- Further work and optimizing of algorithm and security
- ALPHA interface launch on Exchange(s) and continued token sale push
- Last month push of token sale and continued business development and second addition of ITO sales
- After the token creation event is finished, distribution of tokens to ICO buyers.
- Begin the purchasing of tokens phase on exchange(s) for buy pressure of OptiToken with profits to date and then the addition of remaining ICO.
- Creation and testing on any 2.0 user interfaces.
- Continue to grow find and improve algorithm, possibly starting an integration of machine learning. Onward
- Continue growth driven operations along with searching for new ways to improve e.g. do we incorporate pre-sale discounts since there will be ability to buy the minimums? This can be very interesting strategy in times of an overbought market.
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