Sharpe Capital April Service Fee Payments: Month 4

We are pleased to announced that our fourth service fee payment and prize draw has been successfully completed as of 13th April 2018. It has been an admittedly challenging quarter, with both the cryptocurrency market and US stocks in significant decline. Despite this, we are pleased to be in a position to provide our Sentiment Providers with $17,000 USD (equivalent), plus 10,000 SHP.

We have exciting news regarding several investments in the crypto space to announce in the coming week, both private equity deals and in token pre-sales — including a $200,000 investment in equity and tokens for a fully decentralised derivatives exchange, supporting both blockchain and traditional assets. Sharpe takes a ‘value investment’ thesis, and in light of the recent downturn in US markets, we are working to expand our strategy to focus our equity allocations toward emerging markets, with particular interest in Sub-Saharan Africa. We recently hired a market analyst to work with us on that (welcome to the Sharpe team, Max!), who will be sharing more information on our refined investment thesis in due course, so stay tuned for that!

Service Fees received (ranked highest to lowest) vs Proof-of-Stake and Reputation Score

The chart above shows service fees received (ranked highest to lowest), relative to their proof-of-stake and reputation score. We can clearly see an increase in the ‘volatility’ of reputation scores for users with the highest proof-of-stake, due to the larger number of predictions provided, and therefore a greater opportunity for the reputation to move from the default of 50. We can investigate this further be looking at the relationship between reputation and number of correct predictions provided:

Reputation vs Number of Correct Predictions

We can clearly see in this chart that users providing more correct predictions (ignoring incorrect predictions) are more likely to have a higher reputation score. We are consistently seeing outliers who deviate significantly from the average reputation score of 49.81, and although it is still early days with just four months of data collection, we are seeing notable persistence month-to-month in the accuracy of user sentiment. We will share our insights as we begin to perform more rigorous analysis of the sentiment data we are collecting, with all early indications suggesting it will be an incredibly valuable data-set for fund managers.

The distribution of user reputation scores ranked from highest to lowest are shown in the chart below. We are currently developing a leaderboard to be built into the platform, and will share the designs we have for this in our next status report, due next week.

User Reputation Scores by Rank (highest to lowest)

We’d like to close by saying a massive thank you to our community of Sharpe supporters. We are optimistic for Q2 in the crypto-markets, have a whole raft of new features to roll out, and confident that our ever-improving investment strategies will help Sharpe to see continued success.

Talk to the Team

The best place to reach out to the Sharpe team is through Telegram, at t.me/sharpecapital. Alternatively, please feel free to email us at [email protected].

How Can I Buy SHP?

We recommend purchasing SHP using the Bancor Protocol, requiring just 5 clicks! SHP is also available through IDEX and ForkDelta.