Work in Progress
Work in Progress
Work in Progress
Globally, cryptocurrencies have gone from the fringe to mainstream in record time. As
recently as February 2020, Warren Buffet told CNBC
Since then, Buffet’s peers in the asset management industry have taken opposing views.
Citing similarities between Bitcoin and Gold in the 1970s, veteran commodities expert Tom
Fitzpatrick predicted that Bitcoin could hit $318K in 2021.
Veteran Investors Paul Tudor Jones and Michael Saylor have also begun allocating BTC
into their portfolio. Of course the most recent and noteworthy case is Elon Musk, CEO of
Tesla, who in SEC filings disclosed that $1.5B was allocated into BTC with customers
soon being able to buy cars with the currency.
One key indicator demonstrating where we are in the market cycle is the BTC Last Active metric.
We see speculative interest at the bottom in the chart (red and orange), expressing BTC that has
been moved recently. The top of the chart (purple and blue) represents BTC that has not moved
over longer timeframes. The light yellow band represents BTC that has moved between one and
two years ago. Our analysis (red overlay) shows that during bear market cycles, roughly 25% of all
BTC in circulation has been is sitting still for 1-2 years while at the peak of each bull cycle, between
6 and 8% of BTC in circulation has been sitting still for 1-2 years. The current proportion of BTC that
has not been active for 1-2 years is 12%, indicating we are not yet at the peak of the current cycle.
Alpha Impact’s vision is to create an exchange agnostic solution offering crypto investors
the ability to harness advanced trading strategies. At present, successful cryptocurrency
traders have no ability to monetize their own trading by taking in outside capital without
going through complex and difficult fund management processes, or risk managing third
party funds without a license. Both approaches are slow and cumbersome.
Alpha Impact’s social network will use exchange API connectivity to create a bridge
between successful crypto traders and enthusiasts who want to themselves execute top
trading strategies. Unlike existing social media channels such as Telegram, Youtube and
TradingView, Alpha Impact provides traders with the ability to build a following and directly
monetize that following without having to bear the administrative burden of handling user
funds. Users gain the ability to seamlessly follow their top traders with pre-determined risk
limits without having to send funds to any third party. Users can rest safely knowing that
funds remain on their exchange account of choice. Providing a network to connect
followers and traders enables the industry to transact more efficiently, allowing traders to
gain AUM and execute capital intensive strategies that may previously have been out of
reach.
BCG reports that the asset management business is booming globally. The number of
traders, the amount of money entering, and the market value of underlying assets are all
higher than ever before.
Platforms such as Robinhood, Paypal, and Cryptocurrency exchanges are grappling with
an explosive amount of retail demand. Bandwidth constraints at firms such as Robinhood
have led to cryptocurrencies being restricted. Crypto exchanges also face structural
issues, with outages reported across major exchanges during periods of high volatility in
Q1 2021.
This is Alpha Impact’s first opportunity: to transform and industry that already transacts
$89 Trillion USD annually by helping retail traders find a much needed investment
strategy, regardless of their personal investing style.
The rise of the Reddit Investor has created an attractive target for exchanges. But there’s
a problem. Many retail investors lack the skill, expertise and understanding to successfully
interact with cryptocurrency exchanges. Misconceptions abound, with many first time
investors wrongly believing that they need to buy an entire BTC in order to enter the
industry, among other beliefs. Customers also believe that using cryptocurrency
exchanges might mean they are purchasing crypto from a criminal or worse.
The largest problem facing would be crypto investors is that they lack the expertise to
effectively manage a portfolio. Even if they can figure out how to buy crypto on exchange,
they lack the tools to determine who is a worthwhile source of value. Sadly, these
investors are susceptible to ‘pump and dump’ schemes or investing in questionable
tokens.
By acting as a platform agnostic ‘everything store’ for crypto investors, Alpha Impact will
educate first time investors about different exchanges, trading pairs and key metrics such
as the fear and greed index, on chain metrics and basic technical analysis. Crucially, first
time investors will gain access to a network of top traders whose investment performance
is transparently displayed.
Alpha Impact will display top level data including pricing for many different exchanges, as
well as metrics such as the fear/greed index, on chain metrics, and most importantly
access to top traders whose performance has been rigorously vetted.
This is Alpha Impact’s second opportunity: to transform and improve an industry that
already transacts $54 Trillion USD annually by acting as the ‘first time store’ for new crypto
investors.
Alpha Impact’s solution is an online Social Media Network that gives first time traders the
ability to learn about crypto in a risk free way before giving them access to highly vetted
trading strategies.
**Architecture
Top Traders
-Create account and log in
-Complete KYC (and receive higher share of earnings)
-Toggle profile settings; anonymous mode, regular mode, toggle portfolio sharing settings,
select pay out currency
-Provide read-only API key
-Upload historical trading performance data
-View earnings
-Provide wallet address to receive
-Hide account, cancel account, log out
-Reset password, enable 2FA, Change log in details
Alpha Impact’s vision is to create a decentralized, non custodial trading platform where all
investors have access to sophisticated strategies. Followers will pay a percentage based
transaction fee (based on amount of AUM and amount of AIT staked) which will be shared
with the top trader. The AIT token facilitates four key goals:
Frictionless payments
After an initial launch period where customers pay via credit card, all payments will take
place in our native token. Customers will have a wallet containing their AIT tokens, and
trading fees will be automatically deducted based on the customer’s activity on an
instantaneous basis. Traders will receive their share of fees by having tokens sent to their
AIT wallet. Facilitating AIT wallets on the Alpha Impact platform allows seamless and
instant payments, reducing friction for top traders.
**CHANGE THIS
Incentivizing adoption
In order to incentivize adoption, customers who stake tokens will receive discounts on the
trading fees they pay. Traders can also stake tokens to receive a revenue fee, as a
percentage of the transaction fee charged to followers.
Liquidity Pool
In order to ensure that the market between AIT and other major pairs remains highly liquid,
Alpha Impact will create a liquidity pool which will allow ecosystem participants to add
liquidity to make the market between AIT and the following tokens:
AITETH
AITBTC
AITUSDT
AITDAO
For customers choosing to stake tokens, we will offer access to our own proprietary data
analysis as well as third party plug ins. Customers will receive access to real time
sentiment analysis, HODLWaves analysis and other on chain metrics, and real time
technical analysis.
Our customers will also gain the ability to work with specialist cryptocurrency tax
companies who offer our solution out of the box assistance preparing tax returns.
Our USP
Alpha Impact is building a platform that will serve as the bridge between experienced and
inexperienced traders. Because we are platform agnostic, we allow enthusiasts and
traders of all types to find each other. Whatever the customer’s desired trading strategy,
be it spot trading on Coinbase for $100 or leveraged gamma hedging on Deribit, our
platform is designed to give customers access to advanced trading strategies and give
traders an effective tool to monetize their existing trading. Crucially for us, the degree of
behaviour change is very small for both participants: linking an exchange account with
Alpha Impact takes minutes, and the only extraneous input required is inputting an API
key.
Differentiators:
-Automated: Alpha Impact’s platform will allow customers to seamlessly follow top traders,
giving the follower the ability to delegate portfolio management
-Automated
-Transparent
-DeFi enabled: when
-Non-custodial
-Proprietary insights
-Insights in a box - fear/greed indicator, HODLwaves
-Index Products|
-Follow Uniswap traders
Roadmap
V1 Signals & Mock account copy trading
V2 Manual copy trading by API connection
V2 Automatic copy trading
V3 Integrate with analytics platforms
V4 Decentralized - Metamask, Uniswap integration via smartcontract
V5 Follow Uniswap traders
V6.5 Follo
V7 Lending and other products
V8 Index products
Team
Advisors