If we’re near crypto bottom, will ICOs get the highest ROI again during a coming bull-run?

CoTrader.com
6 min readSep 13, 2018

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If we’re near crypto bottom, will alts and ICOs have huge spikes of 10–100x like we saw in previous bull runs?.

ETH has experienced a massive fall as ICOs have been selling off their ETH reserves to pay operation costs. One argument is that this pattern will reverse because:

First, as price falls, more ICOs run out of funds and sell all, or close shop. The bears go to sleep and end the push to sell ETH.

Second, only great ICO project teams survive.

Third, this leaves mostly only bulls in the ETH market.

Forth, due to the hard conditions in a falling market, many ICOs are now very low priced, relative to this last year’s better market conditions. Many projects now have hardcaps around $5M or even below. This is yet another reason that ICOs may be undervalued now.

These 4 combined factors may contribute to explosive growth of ETH and it’s ICO and tokens ecosystem.

The ETH market features fractal-like patterns found in so many other domains across nature. The repetition of the patterns, seen below, illustrate how ETH’s 2017 climb strikes a fractal-like resemblance to it’s smaller 2016 rise.

So, is now a phenomenal ICO buying opportunity? The 4 reasons above suggest it is, but this is not investment advice.

Take CoTrader for example (https://cotrader.com) It’s a $3M hardcap (for up to 50% tokens), and the platform is already live on Ethereum (at https://mainnet.cotrader.com)

CoTrader is like the “The Uber of Hedge Funds”, where anyone can create or join an investment fund. As such, it democratizes the $85 trillion dollar global funds industry with blockchain proof of funds’ past ROI performance. Investors, called cotraders, can invest with the best traders.

Cotraders send assets to Smart Funds — smart contracts that enable traders to trade or invest on behalf of everyone’s assets in the fund. Only investors can ever withdraw their assets from Smart Funds, at any time. Fund managers can set their own performance fees and compete to earn the highest ROI for their cotraders, because they can multiply their own gains enormously.

Influencers are therefore drawn to try their hand at fund management. Top traders may attract large volumes of cotrader funds to leverage to multiply trader gains. Top traders are therefore highly disencentived to do anything other than obtain the highest ROI for their cotraders.

The CoTrader platform itself will take minimal or even 0% fees. The value is in the tokens that will get automatically converted and held, or staked, at 10% the value of every fund on the platform. Upon withdrawing from the fund, investors get their stake back.

The platform can now be used without staking, as the tokens aren’t yet unlocked in circulation. Once tokens are staked, demand for CoTrader tokens would have to grow at least in proportion with use of the platform, speculation aside.

CoTrader solves the problem of investing, which is so time-consuming and easy to mess up. Emotional trading can lead to losses even in bull markets. There are 1000s of cryptos and ICOs, and even 24 hours every day wouldn’t be enough for an expert to properly analyze more than a sliver of the whole market. CoTrader solves the long tail of this explosive market data by enabling everyone in the world to take part in the work and the rewards of fund management.

Traditionally, investment funds have been hard to enter and even harder to form, with many costs, licenses, regulations and bureaucratic red tape, which prevents the explosive growth from creative crowd participation. There are some good reasons, such as protecting consumers, in this case, investors, which may include elderly people risking their entire retirement funds. However, blockchain has the potential, in time, to offer great, perhaps better, regulation and oversight via technology, while protecting freedom.

Blockchain, and specifically, Ethereum decentralized applications (dApps) offer a censorship-resistant platform for people to interact with each other in ways that express and expand own financial freedom.

CoTrader is a great use of blockchain because it offers immutable history and transparency of exactly what you funds have earned.

CoTrader plans to develop a DAO where the 51% token holders (by circulating supply) could vote to change the owner that can upgrade future smart contracts and the ability to collect unsold tokens that unlock over time, until another owner takes control, by 51% vote. This is different than “the DAO” structure than the SEC called a security. Here only an owner is assigned via vote.

The CoTrader platform can allow fund managers to trade into pre ICO contracts such as those pooled via platform like PrimaBlock. ICO average ROIs have been reported to be high given certain parameters, especially for seasoned sophisticated investors. One problem with ICO investing, however, is liquidity. Projects may take longer than expected to get to the market. Because CoTrader smart funds each have their own tokens, investors could trade away these tokens which contain what are essentially ICO futures. The new owner of the smart fund tokens would then be the new recipient of the ICO tokens when they arrive at the smart fund. This would create the world’s first trustless ICO trading, without trusted IOUs used today.

Beyond ERC20 tokens, the CoTrader road and vision describes Smart Escrows that offer the liquidity and asset diversity of centralized exchanges, from Binance to Ameritrade, to support not just cryptos, but potentially stocks, options, and beyond, via the transparency and safety of dapps. Asset buyers would send funds to smart escrows, then order a broker counter party in the escrow, to buy some asset immediately, at the price shown on the centralized exchange, and send it. The trader’s funds in smart escrow would not be sent to the broker until the smart escrow detects, via decentralized oracles, that the assets were sent to the buyer. As mentioned, the asset need not be a crypto, but may be a stock, option, or other instrument. The CoTrader protocol thus, in effect, automatically tokenizes all assets on any exchange.

Privacy is another feature on the roadmap using CoTrader’s patent pending technology. Fund managers would be able to trade without revealing their valuable investment strategies. This is, cotraders can invest together with traders, have cryptographic proof of the traders’ ROIs, and yet not know exactly when and what the traders are holding. This would be achieved by moving assets to anonymous smart funds using privacy-preserving smart-contract mechanisms such as zero-knowledge-proofs (ZKPs), and anonymously reporting back with the ROI, stripped of any trade details. The ROI calculation function is public for all to verify, while keeping the private inputs private — ie, the traders, traded assets and quantities can all be kept private.

CoTrader is an exciting ground breaking technology that is built to last forever. It’s sale is still ongoing, at https://cotrader.com. Join 10,000s of fans by following the other CoTrader social channels, to make sure you have a chane to win also, and not miss out.

This is not investment advice, and don’t invest more than you can afford to lose.

It’s important to take time to do proper market research. CoTrader’s mission is to virtually do this research for people, by crowdsourcing the problem, and offer the world the best solutions at their fingertips. CoTrader aims to bring billions of people more financial freedom.

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