What is Countinghouse?
Countinghouse is a tokenized cryptocurrency hedge fund. This means that the native token, CHT represents a unit of ownership in the underlying assets and thus the net asset value of the fund.
A hedge fund is much different than just a collection of cryptocurrencies or a platform for trading crypto. The Countinghouse fund will employ algorithms and coded trading strategies, developed through years of running a FOREX hedge fund, to attempt to profit from cryptocurrencies regardless of market conditions.
This article only provides a business analysis on Countinghouse, for a more thorough overview see my previous article here.
The strength of Countinghouse lies in its simplicity and its already established infrastructure. The team behind the project, Dawson Pomery Pogacic (DPP) has managed a FOREX hedge fund for over five years.
The trading strategies that utilize advanced algorithms and code were adapted from the FOREX fund and tested for 12 months on cryptocurrency. These strategies and a well-formed infrastructure for trading will allow Countinghouse to rapidly deploy the new fund.
The simplicity of the project is also highly beneficial. The project is not creating a new technology stack but rather using Ethereum to launch a new token for the purpose of raising funds for the hedge fund. The token is only representing ownership in the fund and not required for staking or other more complex utilities.
At present, the weakness of the project is the lack of some very important details in the whitepaper. The whitepaper does not explain a key component of the project which is token buyback at liquidity level.
The whitepaper also does not discuss a timeline for the project although it is likely very short due to the team having the infrastructure already in place.
When the cryptocurrency markets were booming a high of 226 crypto focused hedge funds were in operation. These funds were all traditional hedge funds that accepted only accredited high wealth investors.
Countinghouse has a huge opportunity to introduce the hedge fund world to ordinary people in exchange for a small amount of cryptocurrency.
There are no obvious threats to a hedge fund since they are inherently risky. By definition, a hedge fund subjects itself to calculated risks in order to maximize returns (or losses).
As with any blockchain project the ultimate risk lies in government regulation that can be created at a later time. This is not unique to Countinghouse but must be mentioned for any crypto project.
For More Information on Countinghouse
📅Token Sale Dates: June 12
📈Token Ticker: CHT
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I wasn't really into the token sale on this one but the project interests me. Going to keep an eye on exchanges to see what happens once its listed.
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I'm going to closely watch the liquidity price of CHT too. If the team determines the value of the token fairly it will gain much more interest in the future.
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In crypto, people often want very high returns. So team would have to keep up with the high promised return to keep investors to hold tokens.
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For a hedge fund I think the key is to have better returns when the market is poor. When everything is going well most people are happy with their gains.
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