The complexities of the financial and equity markets are hard to understand even for seasoned individuals.
The environments of these tough markets are not particularly suited for beginners either; instead, it is only accessible to those who have deep knowledge about the markets.
Hence, there needs to be a solution that fixes all of the problems above and reduce the barrier of entry.
Sharpe Capital is a cryptocurrency investment fund which also includes a prediction platform where participants receive rewards for correct predictions of market movements.
These predictions are then fed to the quantitative trading models of the Sharpe Capital investment platform.
How does it work, exactly?
The rise of the blockchain technology has enabled Sharpe Capital to develop an advanced trading algorithm that offers users the possibility to express contextual sentiment about global equity markets.
As mentioned earlier, participants then receive a service fee that is directly related to the accuracy of the offered sentiments.
The sentiment data is then collected and processed to be complemented with Sharpe Capital’s Natural Language Processing (NLP) strategies.
All of these data are processed and combined to become extremely effective sources of information for hedge funds and asset managers. These insights can be also be traded and sold to become a revenue stream.
The platform’s roadmap strategically plans its growth starting with the establishment of the company’s HQ in London early in 2018, to the formation of strategic partnerships with hedge funds later that year.
Sharpe Capital will also launch its platform to a number of selected customers and community members after which an official mobile app and hackathon will be held to strengthen the growth of Sharpe Capital.
2019 will see the launch of Sharpe Crypto-Derivative (SCD) tokens with live trading happening in the same year which will distribute the first dividends to investors of the platform.
The biggest advantage of Sharpe Capital is its contextual sentiment platform which allows users of the platform’s mobile app to earn ETH in exchange for providing their opinions on equity markets and blockchain assets, which will be available in 2019.
How this works is that users are presented with recent news announcements and updates on topics selected by Sharpe Capital. They then have to either indicate a positive or negative sentiment on the topic.
The amount of ETH rewarded to users will depend on the number of SHP tokens held by an individual as well as the number of correct predictions.
Significantly cheaper platform
Sharpe Capital is built on top of Amazon Web Services which utilizes the most advanced technologies of cloud computing.
This enables the platform to keep costs low, making Sharpe Capital a low-cost and attractive option for users.
Intelligent network analysis
Network clustering and analysis is used on the platform to group similar assets together based on their financial similarity.
By understanding how similar the assets are to each other, Sharpe Capital ensures that it constantly runs a well-diversified portfolio.
Implementing artificial neural networks
The platform uses artificial neural networks (ANNs) at the core of their machine learning models to look for patterns in financial data that can predict future assets prices.
These work extremely well because ANNs are extremely similar to the behavior of the human brain.
Sharpe Capital’s modeling is driven entirely by micro & macroeconomic data as the team does not believe in historical price as a reliable indicator of future asset prices.
Because of this, the platform’s models can make price predictions for a list of assets for diverse timelines which can be as low 4 weeks to as long as a year.
Smart natural language processing
All of the features above complemented by advanced NLP algorithms that analyze current trends as well as integrating with social media to constantly monitor market sentiment in real-time.
Sharpe Capital has a unique token structure which includes two types of tokens.
The first is the SHP token which is obtained during the platform’s token sale.
SHP tokens act as a platform fee for hedge funds and institutional investors to access Sharpe Capital’s services while allowing platform participants to earn rewards in ETH for providing sentiment in the platform.
Holders of SHP also earn the right to make predictions about the future performance of assets in exchange for rewards. These predictions serve as valuable input to the investment models deployed on our platform.
Rewards will be paid to SHP holders on a monthly basis.
The second token is the Sharpe Crypto-Derivative (SCD), a token that will be issued to all SHP token holders on a 1–1 basis when it launches.
SCD tokens are a financial instrument that connects the cryptocurrency market with global equities and assets like stocks and commodities.
Sharpe Capital’s blockchain-based platform ensures 100% transparency by making all historical trading activity by Sharpe Capital entirely public. Biannual reward payments will also be given to token holders.
This is automatically enforced by smart contracts that are connected to Sharpe Capital’s ETH reserve funds so token holders do not have to worry about not being rewarded on time.
Here are the details of the upcoming Sharpe Capital token sale:
Token name: SHP
Token base: Ethereum (ERC-20 compliant)
Token supply: 130,000,000
Token sale duration: 13th November, 2017 – 13th December, 2017
Token sale target: $20,000,000
Token exchange rate: 1 ETH = 2,000 SHP