Countinghouse ICO Review – Hedge Fund Meets Cryptocurrency

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June 15, 2018

Countinghouse ICO Review – Hedge Fund Meets Cryptocurrency

countinghouse ICO

One of the major use-cases for cryptocurrency has been for investment purposes, with a number of ICOs coming forward to provide people with the chance to invest in ways they may not have done previously.

One such example is a new ICO that has just got underway and it is called Countinghouse. This is a little different to some previous offerings in that it is an existing hedge fund which has performed very well in the forex markets over the last few years and is now turning its attention to cryptocurrency.

With returns of over 100% per year in forex for the last three years this project is generating a lot of interest and may well end up being oversubscribed.

Below we’ll take a look at what the project is all about, how it will work and at the details of the ICO itself.

What Countinghouse is All About

Countinghouse is a foreign exchange (forex) hedge fund which uses algorithms and mathematical techniques to make profit from trading the markets.

They have been around for a few years and have netted 70–120% profit per annum for their clients.

Last year they began testing their algorithms and techniques in cryptocurrency markets and found that these strategies worked even better, netting around 600% in 12 months of trading. You can view the full report of their crypto trading here.

They mainly profit from the volatility in markets and with cryptocurrency markets being so volatile, they are ideal for Countinghouse’s strategies. They don’t use swing or position trading and can profit in both bull and bear markets.

Now after a year of testing, they are going to take their crypto-trading live via an ICO and give members of the public the chance to participate in their activities where as previously it had just been professional investors.

Countinghouse — How It Will Work

In terms of how the fund will work, it will be quite straightforward. If you buy Countinghouse tokens, you will be getting a portion of their fund. So if you own 10% of the tokens for example, you would own 10% of the fund. Then if this does well, the value of the fund will grow and therefore your investment.

Countinghouse also plan to use some of the profits to buy back tokens, thus decreasing supply and helping to drive value upwards.

As mentioned above, most of their strategies are based around algorithmic trading, so that will form the basis of their portfolio. The exact apportionment will be:

  • Algorithmic trading: 60%
  • Double-sided arbitrage: 30%
  • Passive reserve (ICOs, debentures): 10%

Public reports will be produced each quarter on the performance of the fund and the profit/loss achieved.

Countinghouse are predicting that the returns from the fund could be as high as 600% in the first year, although it must be stressed this is just speculation and the profits could turn out to be lower or there could even be a loss.

Benefits of Countinghouse

There are some notable benefits to Countinghouse’s approach to trading. These include:

  • Accessible to All: whereas their other fund and hedge funds generally tend to require a large investment ($100,000+), people can participate in this for just $200 for example, making it much more accessible for people
  • Their traders have decades of experience
  • They are an established business with a fund that has already been running for a number of years, so they don’t need to use ICO funds for setting up or putting together a product like many other projects — they can put over 90% of the ICO proceeds straight into their fund
  • Funds can be liquidated quickly and easily by just selling tokens — there are no long waits like with some more traditional investments
  • They use mathematical techniques to reduce risk for investors

So all in all there is a lot to like about Countinghouse’s approach.

ICO Details

The token sale commenced on 3rd April with a pre-sale and they have already raised over $4.3 million. Here are the main details about the token sale:

· Token: Countinghouse Fund Tokens (CHT)

· Maximum number of tokens: 20 million

· Tokens available during ICO (hard cap): 14,585,000 (i.e. 73%)

· Token price: 1 ETH = 1000 CHT (i.e. 1 CHT =$0.77 at time of writing)

· Soft Cap: n/a

· Hard Cap: 20,000 ETH

· Sale starts: Pre-sale 3rd April — 9th May, Main sale starts 17th May

· Sale ends: 12th June

There are bonuses available of 30% up to 9th May and then 15% for the 7 days after that.

ICO Ratings

The ICO has been reviewed by ICO rating sites and received some mixed scores, although most of them are good. Here are some of the main ones:

  • ICO Bench: 3.6/5
  • ICO Daddy 4.8/5
  • Track ICO: 4.8/5

Conclusion — Countinghouse ICO

Countinghouse is an interesting proposition and certainly on their past results seem like they could do very well.

However, as investments funds are always keen (or required) to point out, past results are no guarantee of future returns so it is probably not to wise to presume they will achieve the kind of returns being talked about.

It is possible of course that they will, but when it comes to investing the proof of the pudding is always in the eating, so we will see how well they do.

However, certainly the crypto markets do suffer from spectacular volatility so they are ripe for a strategy that exploits this through trading. There are also very good opportunities for arbitrage between the various exchanges for people who have the software and capital to exploit these situations.

The project is a little like another one I have invested in via my Crypto Dividends Portfolio, Rialto, so it will be interesting to see how the two compare in their performance.

So overall this looks like a promising project and could do very well if they can deliver the kinds of returns being talked about — but only time will tell on that.

In the meantime you can check out the Countinghouse ICO here, join them on Telegram here and follow their announcements on bitcointalk here and the bounty here.