A review of the De-Fi scene in April 2021.
CyberTrade is planning three funding rounds, by offering the CYBER Utility Token at different risk/reward price points.
1. Seed Funding: $0.03 (Open Now)
2. Private Pre-Sale: $0.06 (Q3/Q4 2021)
3. Public Sale $0.09 (Q2 202
The public sale will coincide with the release of CyberTrade's first trading services. The public sale will also be accompanied by the listing of the CYBER token on a number of crypto exchanges. The exchange listings will establish a free market in CYBER, approximately 12 months after the closing of the seed funding round.
The CyberTrade Seed funding round is now open.
CyberTrade proposes to raise approximately $1.2m by distributing 48m (20%) of CYBER utility tokens. Of those, 40.8m tokens may be purchased by investors, via private sale @ $0.03 each, to raise $1.2m (The remainder of the tokens are allocated to the team).
At Seed funding stage, the minimum Angel Investment is $13,000 (£10,000 GBP)
(e.g. each $13,000 investment receives 433,333 CYBER UTILITY TOKENS) (Volume Discounts are available)
- The valuation of CyberTrade after the seed funding stage is therefore $5m (fully diluted) after Seed Funding stage.
- Value may be expected to grow between x 2 and x 5 by the time of the Initial Token Offering (ITO/IEO/IDO), scheduled for 12 months after software development starting.
Actual value, depends on the quality of the MVP (Initial trading services) and demand for CYBER tokens at the time of the ITO/IEO/IDO.
- Interested Angels Investors should contact CyberTrade via Invest@CyberTrade.io
Target Market (Crypto Trading)
1. Crypto Market Size
Market Capital (All 7,000+ Coins/Tokens) = $2 Trillion USD)
Daily Trade Volume = $300 billion (24 hours)
Number of Ethereum User/Wallets = 150m+ (Approx 1m active at any time)
40% of crypto investors are crypto newbies (<12 months), Market growth rate = 50% p.a.
Average newbie age = 35, average investment = $2,500 - $5,000
Primary motive = Capital Growth
Highest 'western' population adoption = USA (14% of population, and rising)
Mobile devices are used to manage the investments of 90% of investors.
Investor professions: Engineers, IT professionals, Trades people, Laywers
Binance is the exchange of choice for 70% of investors
35% of investors, re-invest weekly, 40% of investors re-invest monthly
The problems CyberTrade solves
1. Initially, crypto investors join the 'passive' buy-and-hold community. Capital growth is the main objective. However, the value of the capital goes up and down with the crypto market cycles in a stomach-churning, roller coaster ride. New investors often panic-sell when the market falls and regret it afterwards as the market bounces back. Newbies yearn for more predictable (e.g. straight line) capital growth, in which gains are not constantly wiped out by losses.
2. Many new investors try 'active-trading' to improve upon buy-and-hold results. However, about 70% of this group lose money in their first year of trading. Mostly, due to lack of trading knowledge and poor risk management. Additionally, investors often find active-trading to be too time consuming. Most of this group return to the 'buy-and-hold' community.
CyberTrade aims to solve these problems by providing 'active' automated trading services that enable the buy-and-hold community to benefit from active trading.
The result being acceleration of capital growth, in a more predictable manner.
Automated trading, Alpha Yield and Capital Growth
Alpha yield is created by switching from a 'buy-and-hold' strategy to an 'active' trading strategy. Within Crypto, there are several reliable ways to create Alpha.
One way (not the only way) is to actively trade 'waves' occurring within price cycles.
In the typical (Elliot) wave pattern shown in the graphic, the profit (P) from active trading is produced from three 'long' trades (P1, P2, P3) plus profit from two 'short' trades (P4 and P5). Provided the moves can be anticipated, the Alpha profit is substantially greater than the buy-and-hold profit (X to Y).
The 'Alpha' amount substantially increases the profit, as compared with a passive buy-and-hold strategy, thereby accelerating capital growth, regardless of market direction.
Within Crypto there are several other ways of creating alpha yield, including yield farming, flash loan arbitrage etc. Also, automated trading services may use a moderate amount of leverage and perform short trades, to gain advantage.
CyberTrade - Exchanges
The cryptocurrency world encompasses a rapidly expanding range of over 500 Spot and Derivative Crypto Exchanges, implemented using either Centralised or De-Centralised architectures. as of May 2021, the combined trading volume exceeded $300 billion per 24 hours.
The CyberTrade approach is to be 'exchange independent' and therefore at liberty to utilise any crypto exchange that offers a large trader/investor community and/or valuable trading instruments.
In theory, CyberTrade has access to all crypto exchanges, from Binance down, and the trading facilities offered. In practice, CyberTrade will dynamically select exchanges that offer attractive attributes/facilities, at any point in time, such as:-
Large / Growing Trader/Investor communities
Currency Pair Trading - Short/Long (with leverage), - Arbitrage, DeFi Flash Loan Arbitrage, Index Trading, Options / Futures / Perpetuals, DeFi Yield Farming (aka Liquidity Pool Mining), Market Making, Crypto Commodity Trading, Crypto Forex Trading
/ Smart Contract.
Within the Crypto Decentralised Finance' sector DeFi trading services (aka Recipes or Lego blocks) can be implemented as 'smart contracts'. These are usually Solidity / Ethereum computer programs comprising of a number of trading steps (say, 4 to 20 steps), often executed 'atomically' (In a batch).
Example: In a Flash Arbitrage, all steps are executed atomically. Amazingly, the trade(s) are executed only if there is a profit available. If a profit is not available the execution is cancelled.
In general, most 'smart contracts' contain the following ingredients:-
1. One or more Exchanges
2. A Stake or a loan
4. Trading Instrument(s) (Arbitrage, Currency Pair etc)
Utilising 'composability', combinations of ingredients, are used in trading recipes to produce the desired results. The smart contracts run, on the Blockchain and execute steps / trades at each required Exchange.
Competition to CyberTrade.
Currently, there are a handful of automated crypto trading systems available on the emerging crypto market. The systems fall into two categories:
a) Systems designed for hedge funds (Requires expert-level trading knowledge)
b) Systems designed for retail traders (Requires intermediate-level trading knowledge)
Both categories provide above average returns but require a good level of trading knowledge. This limits adoption to less than 5% of all crypto investors.
CyberTrade has a different approach, an automated trading system designed for the mass market, requiring zero trading knowledge. A system that is downloaded to a mobile phone and controlled (Start / Stop / Deposit / Withdraw) from an app.
CyberTrade has several possible revenue streams. One revenue stream is profit sharing, in each profitable trade. Another revenue stream is monthly subscription (paid using CYBER tokens as 'gas').
Assume a customer base growing in increments of say, 3,000 users . Each customer commits $3,000. The average trading return is 1.0% per trading day = $30 return per trading day (after fees) x 240 good trading days = $7,200 in trading profits, per year.
The overall trading profit is thus $7,200 - $3,000 = $4,200 per year x 3,000 customers = $12.6m per year.
If, for example, profits are shared, 80% Customer and 20% CyberTrade, then CyberTrade profit sharing revenue is $2.5m p.a. from each 3,000 customer increment.
In addition, each subscriber pays, say, $70 per month in 'gas' to run the trading services (of which 30% is burned), resulting in a further $1.75 = of revenue (per 3,000 users).
The combined revenue is $2.5 + $1.75m = $4.25m per annum, for every 3,000 customers.
(Note, CyberTrade is targeting tens of thousands of users).
For each increment of 3,000 customers, with an average commitment of $3,000 each, CyberTrade will be trading funds worth $9m every day. Enabling well over $1 bn worth of trades per year. (Per each 3,000 customer increment).
High customer growth by removing barriers and sharing profits.
To encourage high customer growth, CyberTrade proposes to operate a SaaS pricing model having low/no up-front barriers to entry to the ecosystem:-
Mass Adoption will be have the following characteristics.
a) Mobile phone application download.
b) Entry via a 'freemium' / 'trial' levels of entry.
b) Layered upgrades based on more advanced trading instruments
c) CyberTrade / User - Profit Sharing
b) Payment-by-results for trading services / app developers.
c) Low/No administration costs due to automation) Crypto Investor and CyberTrade interests are 100% aligned via trading profits.
Using a SaaS business model (High automation / low overheads), CyberTrade expects to break even after 12 to 18 months of trading operation.
User & Revenue Growth
CyberTrade services may be used in both Retail and Financial Institution markets.
In the retail market, CyberTrade expects that the number of crypto investors using the trading services will grow as illustrated in the graphic.
In the Financial Institution market, the number of customers will be relatively small, but the funds invested will be relatively large.
ICO - Q2 2022- Initial Token Offering
- Yield producing trading begins Q2 2022
(Based upon current Blockchain CAGR = 50% per year)
(Measured in months of continuous trading operations):
12 months - 3,000 Customers - Revenue $5m
24 months - 4,500 Customers - Revenue $7.5m
36 months - 6,750 Customers - Revenue $11.3m
48 months - 10,125 Customers - Revenue $16m
60 months - 15,188 Customers - Revenue $25m
Market Capital Expectations.
At the conclusion of the seed funding round, CyberTrade expects its market cap to be $5 (fully diluted). At the Initial Token Offering (ITO/IEO/IDO), CyberTrade expects its market capital to be approximately $10m. This will rank CyberTrade just inside the 'top 1,000' coins/tokens on the Coingecko league table of cryptocurrency projects.
After one year of sucessful trading, CyberTrade expects its market cap to rise to about $20m.
After say, 2 years of successful automated trading operations, CyberTrade expects to achieve a market cap of between $50m and $100m, positioning the organisation in the top 500 Crypto organisations by market cap.
After say, 5 years of successful automated trading operations, CyberTrade expect to increase market capital and climb the market capital league table.
Why be an Angel Investor in CyberTrade?
a) Built-in Token Price profit
- Heavily discounted CYBER utility token pricing at Seed Funding stage, provides a built-in profit taking opportunity at the Initial Token Offer (ITO/IEO/IDO) Stage (12 months after seed funding closes).
b) Interest bearing loan option
- CyberTrade is able to consider part-token / part-loan arrangements, for investors who prefer to offer interest-bearing, unsecured loans to start-up projects.
c) Equity share option (including voting and dividend rights)
CyberTrade is able to offer equity to Angel Investors interested in becoming shareholders in CyberTrade Ltd.
The majority of new crypto investors lack formal training and solid trading experience. This results in 75% of them losing substantial amounts of money in their first year of trading.
Crypto investors can utilise Yield producing trading services, which use automation and Artificial Intelligence to perform trades like a trained and experienced professional trader.
The existence of a real need and genuine CyberTrade solutions, provides a good investment opportunity. Tokens bought for cents can be expected to be worth dollars as the company grows..