CoTrader — A Blockchain-Based Investment Fund Marketplace that will Democratize and Disrupt Hedge-Funds and Regulatory Bodies cotrader.com Follow Apr 21, 2018 · Unlisted

The good news is this: There’ve been many 1000x returns in crypto. Top crypto and ICO investors are enjoying phenomenal gains in the crypto market, and other investments.

The bad news is that most people don’t have the time or resources to achieve these results with safety and privacy. It’d take 24 hours a day and in-depth technical, marketing, and business analysis skills to even scratch the surface of properly researching the crypto market, with 1000s of cryptos out there, and 1000s of concurrent ongoing ICOs. This isn’t your grandpa’s investment marketplace. They’re not selling simple things like Coca-Cola and Gillette razors here. These markets are full of complex software products.

Fortunately, CoTrader has the solution. No matter if the crypto market is going up or down, from the billions of people in the world, the top 1% of crypto investors outperform most of us, most of the time.

We call this fortunate because CoTrader enables anyone to automatically invest exactly like the best crypto & ICO investors. And CoTrader also enables anyone to try their luck as a fund manager.

For the shorter version, read here: https://medium.com/@cotrader.com/the-good-news-is-this-thereve-been-many-1000x-returns-in-crypto-e4c8cbd298b8

With CoTrader, anyone can be a hedge fund manager and prove her performance on the blockchain. Investors can invest together with her, even if she chooses to hide investment strategy details, while still proving Return-On-Investment (ROI). This combination of functionality is achieved with CoTrader’s cryptographic algorithms.

A fund manager can be an existing hedge fund with billions under management, a social media influencer, a genius anywhere in the world, or a machine-learning network of algorithms. CoTrader can help steer needed funds to good and useful projects, as these tend to perform better than outright scams.

CoTrader is a revolutionary decentralized investment fund marketplace that’s built on the Blockchain. CoTrader fund managers can invest in cryptos, ICOs, and any assets, tokenized or otherwise, such as the, literally, quadrillions of dollars in global real estate, insurance, stocks, financial assets, shorts options, and other derivatives.

AirBnB, Uber, FB, Google — these are huge companies with no inventory or content of their own.

Likewise, CoTrader owns no investment funds, yet aims to become the world’s largest investment funds marketplace.

Our mission is to protect and increase people’s financial freedom with safety and privacy.

All this can be done safely with privacy from your own hardware wallet like Trezor or Ledger. With CoTrader, investors choose which fund managers to use, from a list, with proven results. The investors send cryptos into smart funds, and only the investors own wallet address can pull the funds back out. The fund manager can only make allowed trades. The fund manager can keep the trades secret while still proving her exact earnings.

Fund managers can charge whatever they like but it’s unlikely the market will bear locking periods or management fees. Most likely the best performers will choose success or incentive fees only, with far higher upsides for the best. Bad fund managers may fall out of the market, and the strongest providers will thrive along with their consumers.

Market research suggests that top performing fund managers may charge 10% of what they earn for investors. If a fund manager is managing 1000 times their own money, then 10% of that would be 100. This fund manager would multiply her earnings by 100x in this case. Instead of making, for example, only 2x in a good month on her own, she’d earn 2x times 100x, which is 200x.

Fund managers are therefore very careful to do the best they can for their investors, because they can multiply their earnings by so much if they perform well. The market will likely be attracted only to those fund managers that perform extremely well for the competitive rates they charge.

Let’s talk about the competition to CoTrader. Competing copy-trading platforms such as eToro or Covesting allow users to copy-trade each other — that is, copy the trades of a leading trader, who always buys and sells first and therefore often at better rates than his copy-traders. While eToro started out for the stock market, and has its place in the marketplace, solutions like it bleed their users with outrageously high fees. Similar competing copy-trading platform typically also require investors to keep all copy-trading funds with 3rd parties such as centralized exchanges, forever (or until these likely get hacked) and offer no proof of performance or privacy.

With CoTrader, users don’t need to send anyone any assets at all, and fund manager performance is publicly verifiable on the blockchain.

Competing copy-trading platforms don’t typically support ICOs or ICO pre-sales. CoTrader supports these!

ICO and pre-sales are normally especially hard to follow and enter, and not possible with most competitors. CoTrader even supports such ICO pre-sales with a simple 1-time, global KYC pre-whitelisting process, and can therefore pass on bulk-buy discounts from token issuers. That means fund-managers can lead CoTraders into extra attractive ICOs.

Another problem with ICOs and pre-sales is investor liquidity is tied up for some time. With CoTrader, as each fund gets its own token, CoTraders are able to immediately trade fund shares even while ICO tokens themselves have not arrived or are still locked.

This create a completely liquid market for ICO-Futures.

CoTrader consists of smart contracts on the Ethereum blockchain that we call “smart funds”. Via smart funds, CoTraders invest together and simultaneously with their fund managers, so there is no par in their buy and sell prices.

Here’s how CoTrader works:

Investors send their CoTrader COT cryptocurrency from their Ethereum wallet address into smart funds, and only these same Ethereum wallet addresses can pull the funds back out (and at any time). This is controlled by public code and requires no human trust. As such, these smart funds are essentially an extension of investors’ own wallets.

Fund managers can only issue trades with the smart funds. For example, Fund managers can trade COT to ETH or EOS, or invest in allowed ICOs or even pre-ICOs.

Fund managers ROI performance is proven on the blockchain, because the trades happen on the blockchain using “decentralized exchanges” (DEXs).

CoTrader provides maximum liquidity and power with what we call “Super-DEX infrastructure”. This pulls together other DEXs such as Bancor, Kyber, AirSwap, and 0x, while proving fund manager performance while keeping investor assets in their own wallets.

Fund managers can choose what incentive fee they can command in the CoTrader open marketplace. For example, an unproven fund manager may charge just 1% of what he’d earn for CoTraders. By contrast, a proven high-returns fund manager with an impressively long and broad history of insightful investments might command 20% incentive fee from what he’d earn his CoTraders. In this case, for every 10x he’d earn his CoTraders, he’d keep 20%, or 2x, and the CoTrader would keep 8x. Some other copy-trading platforms set a global success fee such as 18% for all their traders. At CoTrader, we let the free market decide the best prices for each individual fund manager.

Crypto, ICO and other investment analysts and signals influencers on YouTube, Twitter, and other social media are highly incentivized to join CoTrader and prove their skills. This is because, with their hundreds of thousands of followers, they can likely get 100 times their money or more, to CoTrade with them. Now, suppose that a social media influencer charges a 10% success fee from his CoTraders. 10% of 100x is 10x, so he’d multiply his earnings by 10x. So, instead of earning say, 5x in a given period of time, with CoTrader, he’d earn 50x.

CoTrader would charge 1% (10% of the 10% from the fund manager). These profits would go the CoTrader DAO (“decentralized autonomous organization”) to be allocated to needed projects. By default, half of the profits get burned. That is to say, the profits are used to buy COT, and then half of that COT gets burned. The rest of the COT may get burned as well, if no DAO vote passes to use the profits for further platform development.

If fund managers charge rates that are fairly high, such as over 10%, CoTraders may likely attempt to find their wallet addresses and use a free tool to copy their trades, even if these would suffer some delay or doubt. For this reason, CoTrader’s patent-pending zk-SNARKs algorithms enable fund managers to hide their secret investments even while proving their ROI and allowing others to copy their unrevealed investments. This is possible because zk-SNARKs (a type of “zero-knowledge” proofs) can prove a calculation was done correctly (such as an ROI calculation from a trade), without revealing the private inputs to that calculation (the trade details — which assets where trades, for what prices, at what date and time). CoTrader is also working with Wanchain for its ring-signatures privacy and cross-blockchain methods.

CoTrader supports future tokens contracts, such as from ICOs (“Initial Coin Offerings”), CoTrader can even support pre-ICOs, as long as these sales are governed by smart-contacts, which CoTrader can generate for companies requiring them in a safe and pre-audited way. This is in itself a high value and typically expensive service that CoTrader can offer to improve the entire tokenization community.

CoTrader’s own decentralized exchange (DEX) enables trading smart fund shares. Every user in CoTrader has a smart fund, and each smart fund mints its own tokens which represent shares in the smart fund.

CoTrader’s DEX therefore creates a secondary market for future contracts such as pre-ICO tokens. This creates complete and instant liquidity. For example, a fund manager might have invested into an ICO such as Telegram’s ICO. His CoTrader’s might have been very happy at first. Some investors, however, might have wanted to cash out of the fund, without waiting a long time for the Telegram tokens to be sent and unlocked. These investors would be able to trade away their smart fund token shares on CoTrader’s own DEX. CoTrader would charge a typical fee of 0.2% for such trades. Again, the profits would go to the DAO to be used or burned.

CoTrader can thus support options, derivatives and other financial instruments with the same safety and transparency. These are quadrillion dollar markets.

CoTrader can support non-ERC20 cryptos such as bitcoin as well. Firstly, bitcoin can be tokenized on Ethereum by other projects, or by a trusted party that can point to the bitcoin wallet and easily prove that it’s holding the bitcoins it claims, per each Ether contributed.

More immediately, CoTrader will support bitcoin and all other major coins found on major centralized exchanges. While a decentralized escrow smart contract can be used for the deposits and withdrawals, trusted accounts in centralized exchanges may be required for cross-blockchain support. In this case, CoTrader will charge a small trade or deposit fee, which, again, will get sent to its DAO to be used or burned.

In this way, CoTrader can support even non crypto and off-chain assets such as non tokenized stocks, options derivatives or any other tradable assets, in this case, with proof of performance provided by our smart contract escrow and commit-reveal algorithms.

With that said, as cross-blockchain methods from Wanchain, BlockNET and other advances, it may be possible to have fully decentralized cross-blockchain trades with such mechanisms as atomic swaps.

More and more assets are being tokenized, from real-estate, FIAT, gold, oil, financial assets. CoTrader is in talks with companies aligned with major global institutions undertaking such tokenization projects.

As more of the worlds assets become tokenized, CoTrader will grow evermore as the most secure way to invest.

CoTrader will provide advanced investment and trading tools from a common interface that will service not only the existing cryptos, but the the rapid growth of tokenized assets and non tokenized assets that are tracked on-chain. CoTrader will create an open trading tools marketplace where 3rd party developers can sell plugins and other advanced mechanisms that help investors and fund managers of all asset types.

As CoTrader is a self-audited marketplace, the extent to which additional regulation is required might be challenged by liberty groups. Meanwhile, standard regulatory practices and laws can be followed with easy to use tools provided to comply in all typical scenarios. As such, CoTrader stands to “disrupt” regulatory bodies, thinking, and procedures as well.

CoTrader is built on the blockchain from the ground up. It tends to direct funds to good projects while providing an easy, low maintenance and frictionless way for investors to safely invest with proof of performance.

In short, CoTrader aims to be a key pillar in global finance2.0 — finance on the blockchain — that will bear the fruits of finance for all its users.

The philosophical question remaining is: what will happen to those poor souls that don’t use CoTrader? Don’t worry, even within the CoTrader ecosystem, there will be competition of fund managers to outperform each other. Nothing survives better than competition itself.

With CoTrader, when top traders win, we all win.

CoTrader’s pre-sale is starting, and you can join it now

For the shorter version, read here: https://medium.com/@cotrader.com/the-good-news-is-this-thereve-been-many-1000x-returns-in-crypto-e4c8cbd298b8