recap of ama with andrey diyakonov, cco at choise.com | apr 07, 2023
Speaker: Andrey Diyakonov, Chief Commercial Officer at Choise.com.
For BitDriven, 12x at the moment sounds crazy. How will you achieve this?
“Hey folks, glad to be with you. Let me just say how excited I am to share those exciting updates with you! It is certainly a great time to do that and regarding the question. It's all about opportunistic strategy. It's all about leveraging the developments in the market and developments in certain coins such as Bitcoin, and in a number of associated coins that are known for correlation with Bitcoin. It's just the material reality, and some of those coins are even outperforming Bitcoin especially on the halving cycles. It's all about the waves, and our models are showing that Bitcoin will be on the upside.
Let me just give a little bit more context to that as well. This strategy has already been tested and successfully implemented by a great colleague of our own Asset Management entity called One More Fund. And as the fundamentals of the market are still out there, the strategy is leveraging through the current volatility of the crypto market as it’s chasing the Bitcoin halving cycle. So, it is all about, whether we believe or not in fundamentals, the Bitcoin having certainly diminishes the returns of miners and thus pushes the price of Bitcoin up.
Now let me highlight just a couple of more points about how we picked those coins that are going into the basket. Obviously, we were looking at the very firmly standing coins, with strong fundamentals, looking at the market cap and trading activity. And now we’ve got exactly 12 of them.
This allows us to leverage the technology in which we're able to determine local highs and local lows for every coin that goes into the basket. And this allows us to make profit on them the number of times: at the point of entrance and at the point of selling, at the local highs and at the local lows the same.
Now for those Math geeks out there, let it be said that obviously the main model that we were using for prediction was a regression model and the patterning based on the Bitcoin price and the price of the correlated assets that were a part of my previous speech. So with the next halving cycle being forecasted around April 2024 (we're about a year away from now), the basket of those coins is set to create from 8x to 10x returns. And if Bitcoin hits all-time highs, it will be 12x.”
What are the disadvantages of this strategy?
“Well, “disadvantages” is not that exact word, let me guide you through some of the possible challenges. Now, obviously the biggest risk out there is the fact that for whatever reason the pattern of Bitcoin performance and those coins’ performance will not be similar to those associated with the previous BTC cycles. That's the strongest challenge. But I will admit that obviously what we're seeing on the market so far, is that a considerable amount of money is pouring into the similar strategies, and it's a prevailing sentiment for most of the folks.
Having said that, I want to briefly touch upon the question: why is this strategy fortunate statement wise or important to you because of that? Being opportunistic players we certainly believe in certain fundamentals about the market that other market participants also believe in. I am talking about the support of this strategy, right? So we believe that those fundamentals in that pattern are strong enough to replicate themselves once again, and other market participants are also taking notice that that's exactly the strategy to put money into. And of course that's very important. Having said that, the other minor risk associated with that strategy is the portfolio. However, due to the fact that our portfolio is pretty diversified, it’s only minor.”
What is the percentage of loss that can occur (because there is no product (99%) without risk)?
“Let me highlight that we really need to understand how long the modeling works in the following way. The regression-based models that are used to extrapolate the certain events and to draw conclusions on the basis of the events in the past are able to forecast the upside, not so much the downside. Now obviously the question of the downside is a very important one, and I guess there are two matters to take into consideration.
So to properly assess your risk of the downside you really need to be able to quantify the risk of one of the main patterns on the crypto market – failing to replicate itself. Which again is a very obvious and impossible task. As I said, the majority of the market is leading towards the thought that it will replicate itself due to fundamental reasons, not just certain psychological beliefs of the market participants. There's a demand for Bitcoin.
Now the second part I want to highlight is a portfolio of risk. Of course, we're striving to use advanced technology and modeling technology. We’re trying to maximize the returns of each given asset inside the duration of that entire portfolio. And of course that allows us to maximize the returns and the rebound.”
If you can make x10 why would you help others and make only 15% profit?
“Thanks for the question. And I'm really thankful because it allows me to once again catch upon the core of what we're doing out here. We want to become your choice to earn more, and that obviously depends on our ability not just to come up with different strategies and advanced instruments for you to earn more. It's also about the infrastructure. It's also about creating very convenient and seamless on- and off-ramp for you to get exposure to those things. I'm talking about our wonderful App. I'm talking about our DeFi, I’m talking about how much it really takes to keep the lights up on operations, right? So, of course, we're not just we're not just opportunistic trainers. We're also infrastructure providers, and it is in our capacity of being retail focused product among other things that we strive and we rejoice. Because we're not just for fun, we’re not just that profit-making enemy.
We are on a mission, and our mission is to empower you by giving you the ability to earn more on your crypto. And crypto just happens to be our main focus. And of course as much as the circumstances allow us, we take advantage of our own advanced strategies. And of course we do put our money in those very same tried and true tools that were spreading.”
If everyone starts fixing profits at the same time the BitDriven price will fall. How will you deal with that?
“That's a very interesting challenge, I must add. Well, the fear of our strategy underperforming due to the fact that there will be a certain amount of individuals who want to fix their profits and sell the token actually doesn't address the core of how our strategy is formed. Our strategy is an index. The index is a basket of assets that are not the token itself. Right? So the token is just a representation of a certain share. And we are having more than five million dollars as it smacks capacity now given the fact that we're only investing into tokens that have more than 50 million dollars in market cap.”
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