Sharpe Capital Investing with AI & Machine Learning
About Sharpe Capital
We're building a low-cost, tech-driven investment fund, specialising in global equity markets. Our strategies are backed by cutting-edge Machine Learning algorithms, and we're crowd sourcing sentiment analysis via the Ethereum blockchain.
Our decentralised platform is comprised of two key components:
Firstly, we're building a platform that allows holders of SHP tokens to earn rewards for providing asset sentiment, which provides valuable input to our investment models. By linking rewards to the quality of the sentiment provided, we're able to ensure our platform offers the highest quality of crowd-sourced sentiment analysis in the market.
Secondly, subject to regulatory approval, we will be issuing a 'cryptoderiviative' token (SCD), which will pay dividends based on the performance of our fund.
Artificial Neural Networks
We're using neural networks at the core of our Machine Learning modelling algorithm to look for patterns in financial data that are predictive of future asset price.
ANNs offer powerful Machine Learning prediction cabailities, because they are inspired by the behaviour of the human brain.
Decentralised Investment Platform
We're building a decentralised investment platform, that enables retail traders, hedge funds & investment banks to build, test & deploy Machine Learning and Artificial Intelligence investment models.
Our platform decentralises the things that matter - sentiment analysis, public trading ledgers & verification of performance. Model execution & management of data are contained within our core platform.
Low-Cost Cloud Architecture
We have chosen to leverage the power of Amazon Web Services (AWS) for our off-chain architecture. Amazon provide a large number of fullymanaged, scalable, cost-effective services, enabling us to maintain a lowcost base and operate in highly agile manner. A key distinguishing factor between Sharpe Capital and many traditional investment funds, aside from our novel approach to quantitative, sentiment & cognitive-behavioural modelling of market movement, and our TLS, is that we will constantly strive to operate as leanly as possible. This tech-driven, highly cost effective operating model, combined with consistent market-beating returns, permits us to deliver the highest return possible to our investors, rewards to sentiment providers, and cost savings for users of our bespoke modelling tools (wherein usage costs are shared in SHP, operating in a similar manner to ’gas’ in Ethereum for transaction processing/computation execution). The AWS cloud architecture we are utilising is outlined in Bellow Image
Our modelling is driven entirely by micro & macroeoconmic data. We do not believe historical price is a reliable indicator of future asset prices.
University friends, Lewis Barber and James Butler, meet in London and discuss the feasibility of beating the stock market with algorithmic trading.
After reading a blog about predicitive modelling of commodity prices, Lewis consults James for help with some mathematics...
Machine Learning POC
Inspired by the Lumber conversation, Lewis and James decide to apply Machine Learning algorithms to vast amounts of financial data, in order to determine if the stock market is predictable.
Sharpe Capital is born
Encouraging results from the Machine Learning POC leads to the formation of Sharpe Capital, a 50:50 partnership between Lewis & James.
We started tweeting
Documentation of our journey begins via the @sharpecapital Twitter channel, where we start engaging with investors, hedge funds and the FinTech
Preparing our ICO
Work starts on our Ethereum smart contracts, as we begin the mobilisation phase of our business, and map out a roadmap to ICO & expansion.
ICO Token Sale
Our ICO token sale will commence on November 6, 2017 at 14:00 GMT. For more information visit the tokens page
We will open our HQ in London, which will form the basis of our expansion as we start growing the business.
Growing The Team
The team will include dedicated roles for; DevOps, Marketing, Operations, Testing & Security. We will offer equity options to everyone joining at this stage.
Our Alpha platform will be available to an exclusive set of customers and community members, who will help us refine our product before we move to mass-market adoption.
Sharpe will host a 48 hour Hackathon, where attendees will build, test and deploy investment models on our Alpha platform.
Our decentralised investment platform will launch for mass-market adoption in early 2019.
Sharpe will start live implementation of our proprietary investment models, designed & implemented in-house and verified during the Alpha phase with small sums of capital.
1st SHP Rewards
The 1st rewards will be paid to SHP holders six months after our platform launch.
Hedge Fund Partnerships
We will form strategic partnerships with up-to five hedge funds, who will receive favourable execution fees in exchange for providing liquidity to the Sharpe investment platform.
Sharpe (SHP) tokens will be rewarded at the rate of 2,000 SHP per ETH. This rate will remain constant for the duration of the ICO.
Once the ICO is complete, there will be no further minting of SHP tokens.
Use of Funds
Sharpe - Leveraging the Bancor Protocol: Providing Continuous Liquidity for SHP Tokens
At Sharpe Capital, we understand the importance of providing continuous liquidity to newly issued tokens. Within the current regulatory landscape, the delay between token generation and listing on traditional exchanges is increasing, resulting in market failure.
While decentralised exchanges do go some way to solving this problem, the requirement for a counterparty with whom to trade still exists. In emerging community economies, this can often result in illiquid markets. Enter: Bancor Protocol and smart tokens.
Why use Bancor?
The team behind Bancor have developed a ground-breaking protocol for providing liquidity to tokens on the Ethereum blockchain through the use of currency reserves. Smart tokens act as an exchange medium between themselves and their reserve tokens (e.g. ETH, BNT or any other ERC20 token). Market participants will always be able to liquidate or purchase SHP tokens without having to find a counterparty to buy or sell the tokens.
Bancor achieve this with an asynchronous price discovery mechanism. In a nutshell, this provides a mechanism to determine token price as a function of the amount of SHP tokens being sold or bought, the total supply of SHP tokens, the reserve balance, and the constant reserve ratio. The constant reserve ratio defines the level of liquidity for SHP tokens, and can be changed dynamically to ensure stability. Arbitrageurs will maintain price equilibrium between the smart token, traditional’ and exchanges.
Our Commitment to Utilising Bancor
We have stated an intention to make all funds raised above our $45MM requirement for delivering the Sharpe Platform and its associated fund available for use in Bancor reserves. With a target in the region of $60MM, this provides a maximum reserve size of $15MM. The diagram below illustrates our budget assuming the upper target of $60MM is raised.The Sharpe Capital budget allocation.
The size of the reserve and the CRR are critical in determining both the degree of liquidity (meaning the capacity for trading to move the token price). Therefore, this will be distributed between a BNT reserve, a SHP reserve, funds allocated to providing the price floor, and a private reserve that can be utilised to ‘top-up’ liquidity under changing market conditions. The following section describes our approach to finding the optimal CRR and allocation of these reserves.
Determining Reserve Sizes and the Constant Reserve Ratio
It is important to strike a balance between the size of the currency reserve and the CRR. If the reserve balance is too high, relative to the CRR, then price action is restricted and even large sales or purchases of SHP would not have a large effect on the exchange rate. Conversely, if it is too low, this will result in high volatility for those who use the smart token to buy/sell. In a bearish market, this could quickly drive the token to its price floor. Likewise, in a bullish market, the price of SHP would rapidly increase. However, providing there exists sufficient volume on other exchanges, arbitrageurs would drive the token price to an equilibrium.
We believe that the reserve size and CRR should be determined once the total raise from the token generation event is known. To ensure trust in the implementation of our smart token, we will create well-defined rules for dynamically determining the optimal CRR value.
To that end, we are working on development of a Monte Carlo trading simulator utilising the Bancor Protocol, evaluating how various supply sizes, reserve sizes, price floor mechanisms, and varying CRR values, will affect the exchange price of an ERC-20 token utilising the ‘token changer’ smart token method outlined in the Bancor white paper. Our aim is to identify the optimal CRR and reserve size under varying market conditions, from extremely bearish to extremely bullish.
This tool will provide a mechanism for anyone using the Bancor Protocol to provide continuous liquidity via the Token Changer smart contract to determine the optimal values for their specific circumstances under current market conditions. We will make this tool available for the community to use once it’s in beta stages.
Sharpe Capital Announces Advisory Partnership with TaaS
TaaS and Sharpe Capital are delighted to announce their exciting new partnership. The TaaS — Sharpe cooperation agreement was finalized following a meeting at the recent d10e Blockchain Conference in Kyiv, Ukraine, which was co-hosted by TaaS and attended by Sharpe’s co-founders Lewis Barber and Dr. James Andrew Butler.
“This is a fantastic opportunity for synergy between the leading blockchain fund TaaS and the Sharpe Platform suite of products…”
Sharpe Capital is a FinTech organization developing a platform to crowd-source market sentiment on global equities and blockchain assets, paying service fees in Ether to users in return for their insight. Supplemented with cutting edge, machine learning-driven linguistic analysis and quantitative trading strategies developed in collaboration with leading academic partners at University of California, Berkeley and the University of Oxford, Sharpe Capital aims to deliver best-in-class data-feeds for use by investors.
Sharpe Capital will issue SHP tokens via the Ethereum blockchain during a 7 day discounted pre-sale beginning 6th November, with $1.4MM whitelist registration places remaining. This will be followed by a 28-day crowd sale, with a total cap of $20MM. SHP permits participants to provide sentiment, and institutional investors to access their cloud-based quantitative trading model tools. Sharpe Capital will also operate a proprietary investment fund, both in global equities and blockchain assets, with plans to issue a derivative token instrument tied to its performance in Q1 2019. Sharpe Capital is seeking to raise $20 Million through SHP issuance in November.
Chief Investment Officer of Sharpe Capital, Dr. Butler, described the newly announced advisory partnership: “It is a fantastic opportunity for synergy between the leading blockchain fund TaaS and the Sharpe Platform suite of products, including our market sentiment crowd-sourcing application and machine learning-driven investment funds. TaaS Fund’s advice has already proven invaluable and I’m really looking forward to what will no doubt be a prosperous relationship for both parties.”
Dimitri Chupryna, Co-Founder and a Managing Partner at TaaS will act as the principal point of contact on the Sharpe Capital advisory board. Dimitri graduated with a BA in Economics from the University of San Francisco. Dimitri is an expert in business development and portfolio management. His interests primarily focus on rapid-growth technologies.
TaaS launched the first-ever tokenized closed-end fund dedicated to blockchain assets in May 2017 right after its Token Sale concluded, with $7.6 million USD(T) raised. During its first fully-operational quarter TaaS participated in eleven token generation events with the total amount contributed equivalent to 3 million USD(T). This delivered an unprecedented 61% ROI and over 300% growth in market cap. Since then, TaaS is actively continuing contribution and trading performance accelerating integration and linkages within the cryptoworld.
About Sharpe Capital
Sharpe Capital is a FinTech organization developing a platform to crowd-source market sentiment on global equities and blockchain assets, paying service fees in Ether to users in return for their insight. Supplemented with cutting edge, machine learning-driven linguistic analysis and quantitative trading strategies developed in collaboration with leading academic partners, Sharpe Capital aims to deliver best-in-class data-feeds for use by investors. Sharpe Capital was founded by CEO Lewis Barber and CIO Dr. James Butler, supported by Chief Technology Officer Israel Colomer, Systems Engineer Dan Pilch, and Lead Developer Ali Bros.
Token-as-a-Service (TaaS) is the first tokenized closed-end fund that allows its investors to capitalize on the rise of Blockchain markets. Utilizing the Ethereum blockchain and its Cryptographic Audit technology, TaaS offers a brand new comprehensive approach to capital raising, fund management, and auditing with full transparency for its investors. TaaS token is currently trading on Liqui, LiveCoin, Coss.io, CoinExchange and HitBTC. TaaS was co-founded by blockchain pioneers Konstantin Pysarenko, Ruslan Gavrilyuk, Dmytro Chupryna, and Maksym Muratov and has professional team members from the USA, Ukraine, Poland, Romania, South Africa and China. TaaS produced a 61% ROI for its first fully-operational quarter (May 1 — August 1, 2017) and as per its original White Paper, it paid 50% of that to its token owners, reinvested 25% back into the fund so that it grows in perpetuity and paid 25% to its management.
Sharpe Capital - SHP Token Sale: Now open until February!
There has been much talk recently of how token sales should be structured, with Vitalik himself offering several proposals to mitigate ‘panic buying’ created when token sales have very limited pre-sale windows and time restrictions. The UK Financial Conduct Authority also recently lamented the number of token sales that are not backed by an existing product and the highly speculative nature of participating in these sales — our platform will now be live and usable before the token sale concludes.
We’ve reached out to many of our SHP token sale participants, and those who registered their interest on our whitelist and waiting list. Many wished to participate but felt that the minimum pre-sale contribution was too high, and others have been delayed due to the recent issue with Parity multisig wallets, and general blockchain asset market conditions.
At Sharpe Capital, we have always been highly responsive to community feedback. Indeed, community-led governance is a core component of our platform, in which SHP owners can table motions for voting to guide the direction of the Sharpe Platform.
Therefore, we are pleased to announce that we’re changing the structure of the token sale going forward in response to everything that’s happening in the world of blockchain right now.
Firstly, we are extending the token sale until February 5th 2018. The platform will still be launched on 11th December, and those using the platform will receive their first ETH payment in January, with payments being issued monthly going forward.
Secondly, we are retaining the bonus tiers for larger contribution sizes throughout the sale, to avoid creating a false sense of urgency and to enable interested parties to come to an informed decision, utlimately allowing SHP to find its true market value. We are introducing an additonal bonus tier, in which participants will receive 5% extra SHP for contributions over $1,500 USD in ETH. This new tier will come into effect on Monday 2pm GMT, for those wishing to contribute $1,500–10,000 USD nominal.
Finally, after 11th December — when the platform launches — the offered rate of SHP/ETH will fall by 100 per week, until it reaches 1400 SHP per ETH. This rewards early participants who purchase SHP before the platform launches, incentivising users to engage with the Sharpe Platform, enabling us to test and refine the payment mechanisms during the Alpha period.
To summarise, the sale will remain open until February 5th 2018. The minimum contribution will be $100. The following bonuses will apply throughout the sale:
$1,500 — $10,000 → 5% Bonus
$10,000 —$50,000 → 10% Bonus
$50,000 — $250,000→ 20% Bonus
$250,000 — $500,000 → 30% Bonus
The value of USD/ETH will be re-pegged to the current market rate every Sunday throughout the sale.
Contact Us & Find Out More