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

    Fundamental Analysis


    Our modelling is driven entirely by micro & macroeoconmic data. We do not believe historical price is a reliable indicator of future asset prices.

    2016

    April

    Pre-Launch

    University friends, Lewis Barber and James Butler, meet in London and discuss the feasibility of beating the stock market with algorithmic trading.

    Nov

    Quantitative Modelling

    After reading a blog about predicitive modelling of commodity prices, Lewis consults James for help with some mathematics...

    2017

    Jan

    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.

    Mar

    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.

    May

    We started tweeting

    Documentation of our journey begins via the @sharpecapital Twitter channel, where we start engaging with investors, hedge funds and the FinTech

    Jun

    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.

    Nov

    ICO Token Sale

    Our ICO token sale will commence on November 6, 2017 at 14:00 GMT. For more information visit the tokens page

    2018

    Q1

    London Office

    We will open our HQ in London, which will form the basis of our expansion as we start growing the business.

    Q2

    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.

    Q3

    Alpha Platform

    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.

    Q4

    Sharpe Hackathon

    Sharpe will host a 48 hour Hackathon, where attendees will build, test and deploy investment models on our Alpha platform.

    2019

    Q1

    Platform Launch

    Our decentralised investment platform will launch for mass-market adoption in early 2019.

    Q2

    Live Trading

    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.

    Q3

    1st SHP Rewards

    The 1st rewards will be paid to SHP holders six months after our platform launch.

    Q4

    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.

    Token Sale

    Distribution Mechanism

    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

    https://s3-eu-west-1.amazonaws.com/sharpe-website/img/dist.png

    Team:

    White Paper:

    Website:

    Website:

    Blog:

    Github:

    Twitter:

    Facebook:

    Telegram:

    Slack:



  • 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.

    About TaaS

    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

    You can reach out to the whole team on our Telegram, or email [email protected]. Read the Sharpe Capital white paper here.



  • Sharpe Announcing Exciting New Co-operation Partnership with ETHLend

    November 20th 2018, London — Sharpe Capital and ETHLend are delighted to announce their exciting new cooperation partnership.

    The Sharpe-ETHLend partnership was finalized following a meeting at Web Summit 2017 in Lisbon, Portugal. The newly established relationship provides ETHLend with privileged early access to the Global Sentiment Index data-feed during its Alpha and Beta developmental stages, delivering realtime insights into how the market perceives individual blockchain assets. Sharpe and ETHLend will work together to refine the product and optimize the product for further commercialisation.

    This partnership is a key proof of the value of one of Sharpe Capital’s core products and future revenue streams — Sharpe is working to ensure the Global Sentiment Index becomes the world’s leading source for market sentiment data.

    Sharpe Capital Co-founder & CEO, Lewis Barber, at Web Summit 2017

    Through collecting real human insights and combining them with cutting edge machine learning, Sharpe can far surpass the traditional approach to sentiment analysis derived from often highly unreliable analysis of social media feeds and news sources.

    By joining forces with ETHlend, Sharpe Capital is able to tailor the Global Sentiment Index to an increasingly diverse customer base, and help to reduce risks associated with blockchain-driven lending — Dr. James A. Butler, Co-founder and COO at 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 at University of California, Berkeley and the University of Oxford, Sharpe Capital aims to deliver best-in-class data-feeds for use by investors.

    ETHLend has been available since May 2017, providing a global lending market where all loan conditions are agreed between borrowers and lenders, and parties can participate on both sides. ETHLend is a transparent, borderless and decentralized market and erasing interest rate differences between countries by providing competition on a global scale. ETHLend solves key issues regarding collaterals, decentralized credit rating and exchange volatility risks with fiat pegging option

    Through partnership with Sharpe Capital, ETHLend lenders will now access to the leading source of decentralized and crowdsourced asset sentiment, allowing lenders to assess collateral risk on loan request using real-time data from the Global Sentiment Index before choosing to fund a loan — Jordan Gustave, Chief Operating Officer of ETHLend

    Going beyond simple metrics of price and implied volatility, the Global Sentiment Index will let users know precisely how the market perceives an asset’s viability over timeframes from one week to one quarter. Following the Sharpe Platform launch on 11th December, ETHLend will have access to the Global Sentiment Index as it is collaboratively developed and refined during the Alpha and Beta stages of the product.

    ***

    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 sentiment-based data-feeds, including the Global Sentiment Index, for use by investors and risk-assessors. 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 a world-class team of engineers, developers and business development advisors. The Sharpe SHP token sale is now live, allowing you to earn ETH for your sentiment toward blockchain assets and equities. Visit Sharpe.Capital to participate today!

    About ETHLend

    ETHLend is a fully decentralized peer to peer lending dApp founded by Stani Kulechov, to lend and borrow crypto by using any ERC20 token as a collateral Being decentralized and transparent, no-one can stop lending or borrowing transactions, not even ETHLend. Everything goes through Ethereum Smart contracts and no assets are held by ETHLend. Every transaction is visible as they can be seen on any block-explorers. You do not need a bank to lend or borrow. You are your own bank on the Ethereum network, loans are sent within seconds or minutes. No middle-men, just the borrower and lender Strong of a 20 people team scattered around the globe, ETHLend has everything needed to become the go-to place for crypto lending. Enroll to the KYC-whitelist to participate to the token sale



  • Sharpe Platform Month One Sentiment Fees: January ETH Payout totalling $105,000

    At Sharpe Capital, we’re building a decentralised ecosystem to help retail traders and institutional investors better understand financial markets.

    This ecosystem is driven by the Sharpe Platform, in which users receive ETH service fee payments in exchange for acting as sentiment providers, making predictions on blockchain assets and equities based on current events.

    Sharpe Platform iOS dApp, earning ETH for providing market insight on our unique prediction platform

    This month, our proprietary investment fund generated an 85% ROI benchmarked against USD. We allocated 40% of profit derived from the fund to distribute to users this month, totalling $105,000.

    As the first month of the Sharpe Alpha being live comes to a close, ETH service fee payments are due to be issued to platform users on 13th January. SHP is available for purchase during the ICO until 5th February 2018, with the second payout slated for 13th February.

    Approximately 15,000 predictions have been made on assets by over 100 registered sentiment providers on the Sharpe Platform alpha. The average payout per user equals $972, whilst the specific amount depends on the number of predictions provided (proof-of-work) and the amount of SHP held (proof-of-stake). As the one month time horizon has not elapsed for most predictions, total number of predictions were used to calculate service fees for January. Accuracy will be reflected in each user’s reputation score going forward.

    The whole Sharpe team would like to take this opportunity to give an enormous thank you to our community of supporters for contributing to the Sharpe Platform, both through providing sentiment and purchasing SHP. We have had a stellar first month and look forward to continued success as we begin to scale and grow our revenue streams.

    Month one: By the numbers…

    The table below includes some key statistics from month one:

    The average service fee payment this month per SHP token staked is $0.02, reaching $0.12 for those with the highest work and stake.

    This plot illustrates the distribution of service fee payments, with each dot corresponding to a user.

    The following chart shows the service fee received for each user (vertical axis) based on the amount of SHP owned (horizontal axis). The variation across users with similar stakes arises from different numbers of predictions made on the platform.

    SHP Owned

    About Sharpe Capital

    Sharpe Capital is a FinTech organization building a decentralised ecosystem to help retail traders and institutional investors understand financial markets better. We crowd-source market sentiment on global equities and blockchain assets, paying service fees in Ether to users in return for their insight. Returning 85% ROI from the Sharpe proprietary investment fund, Sharpe Capital will distribute $105,000 over 108 registered sentiment providers on Saturday 13th January, averaging $972 per user. The next payment is scheduled for 13th February, and SHP tokens are available to purchase until 5th Feb. SHP ownership is required to use the Sharpe Platform. Visit Sharpe.Capital to participate today!

    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 sentiment-based data-feeds, including the Global Sentiment Index, for use by investors and risk-assessors. Sharpe Capital was founded by Lewis Barber and Dr. James Butler, supported by Chief Technology Officer Israel Colomer, and a world-class team of engineers, scientists, analysts, developers and business development advisors.

    The Sharpe SHP token sale is now live, allowing you to earn ETH for your sentiment toward blockchain assets and equities.

    Contact Us & Find Out More

    You can reach out to the whole team on our Telegram, or email [email protected]. Read the Sharpe Capital white paper here.



  • 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.



  • May Service Fee Payments: Month 5

    We are delighted to announce that our fifth service fee payment and prize draw has been successfully completed as of 12th May 2018. The Sharpe Fund has performed remarkably well following a difficult open to 2018, achieving 26% ROI (year-to-date), despite the crypto market taking an approximately 25% hit. We are therefore very happy to announce our second largest service fee payment to date, coming in at $70,000 USD (equivalent, spot rate $700 USD/ETH) averaging $255 per sentiment provider, plus 10,000 SHP. This brings the total amount distributed since our product launch in December 2017 to $312,000 USD (equivalent) and 30,000 SHP.

    If you missed some of our updates this month, we have outlined our thinking and investment thesis over the coming quarter in this article, and released an updated ledger for automated tracking of Sharpe’s proprietary investment activities across both crypto and equity markets.

    There has been some interesting discussion within the community recently, on the role of media pundits, analysts and prediction markets — specifically relating to reputation. Sharpe published our mathematical approach to quantifying and immutably storing user reputation on the blockchain long before the debate had even begun. Sharpe differs from a prediction market, in that we curate sentiment on blockchain assets and equity markets, paying users an ETH service fee for each correct ‘prediction’. By coupling these payments with the users staked SHP (a metric for their confidence in the market and their own ability) and the users reputation (a metric that captures their long term, historical accuracy), we can understand what the market as a whole is thinking — producing contrarian market indicators from those with low reputations, and positive market indicators from those with higher-than-average reputations.

    The Sharpe platform effectively incentivises users to provide honest data by rewarding users in proportion to their immutable reputation score. Users with the highest Sharpe reputation received a 20% premium on their service fees compared to those with the lowest reputations. We can see this in action by looking at the cents (USD) received per user, per correct prediction, per SHP token hold as a function of their reputation:

    Left: Cents per Correct Prediction Per SHP Held, Bottom: Provider’s Immutable Reputation Score

    As our fifth month of distributing service fees draws to a close, we have seen the distribution between the highest and lowest user reputation scores continue to diverge, as those at both end of the distribution continue to move away from the mean. We have begun developing various metrics to ‘slice’ the sentiment data we’re collecting, as we now have over 1 million data points over a five month window on 600 assets across both equities and crypto. We will share more insights as we begin to understand the complex relationship between user reputation, time spent per prediction, and user proof-of-stake.

    Users ranked by Reputation Score, highest to lowest

    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.



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