Scenario 1: Manager generates 20% profit, Price of GVT increases 10%

Number of GVT returned to investor: 10.9 GVT — 9% increase in GVT Tokens

Scenario 2: Manager generates 20% profit, Price of GVT decreases 10%

Number of GVT returned to investor: 13.3 GVT — 33% increase in GVT Tokens

Scenario 3: Manager generates 20% loss, Price of GVT decreases 10%

Number of GVT returned to investor: 8.8 GVT — 12% decrease in GVT Tokens

Scenario 4: Manager generates 20% loss, Price of GVT increases 10%

Number of GVT returned to investor: 7.3 GVT — 27% decrease in GVT Tokens

If you would like to have a deeper understanding on price drivers, please refer to an article I wrote earlier regarding Genesis Vision Token Positive Feedback Loop.

Why will Genesis Vision Succeed and be Profitable?

The platform is built in such a way so that the actions of good managers are rewarded and their impact to the platform is multiplied; and the actions of bad managers and bad actors are minimized and punished.

Managers make money in two ways.

Management fee. This is a fee that is taken off the top of the initial investment amount. If you invest $100, with a manager who has a 2% management fee (annual basis), the manager earns $2 regardless of performance. Success fee. This is a fee that is a percentage of profit that the manager generates. If a manager has a 20% success fee, and generates $100 in profits, the manager would earn $20 based on the performance.

Genesis Vision introduces gamification for the mutual benefit of managers and investors. There are seven levels for a manager to progress through, and everyone starts at level 1. A manager’s level is determined by his or her historical average gains over time. A manager’s level determines the maximum size of assets under management.

The performance of a level 1 manager is relatively unknown. To level up, managers need to demonstrate consistent profits over time. As the manager levels up, the maximum size of funds a manager can have under his or her management increases. Obviously the larger the fund size a manager may manager, the more he or she may earn from management fees and success fees. Assuming managers are self interested, managers will try their hardest to achieve the highest manager level within their ability. Along their journey to level up, many investors will reap profits from the manager’s performance.

What about underperforming managers and bad actors?

As long as humans are involved, there is always the risk of stupidity or malice. However, I believe with the Genesis Vision Platform, these risks are more transparent and better managed than in traditional money management. Because of Genesis Vision’s transparency and profit distribution via smart contracts, certain schemes that existed in traditional money management world are impossible to pull off in Genesis Vision.

Manager levels are transparent to the investor, and this is one of the biggest indicators of the manager’s quality. I believe it is unlikely that risk adverse investors would choose to invest in low level managers, since they are unproven and the risk profile is unknown. Personally, I would prefer to invest with managers with higher manager levels, and I believe many others like me share this mindset. The “level up” system, should be effective at containing poor performing managers to lower levels — and due to the low maximum cap of low level managers their impact to the ecosystem will be diminished as well.

A hypothetical example that is often discussed online are bad actors. These scenarios begin with “What if a manager with bad intentions sets up sell orders on a low volume coin and uses their managed money to run off with the money?” While this could hypothetically be possible, I don’t think this is a problem that should concern most investors. First off, this would only work once before the manager is identified and banned from the platform. Secondly, it is unlikely that the manager will be a “high level” manager, therefore the impact to the ecosystem and risk exposure to the majority of investors would be quite low. This is due to the fact that high level managers can earn more money through legitimate trading and fund management than by being a bad actor. In short, bad actors can’t level up, and those managers who can level up would earn more money through legitimate work than by being a bad actor.

Keys to Success

For Genesis Vision to succeed, certain boxes need to be “checked”

I like to pay attention to recent updates and announcements from the team, and ask myself “Which box does this announcement check?”

Sufficient number of performing managers

For obvious reasons, this is one of the most important factors for Genesis Vision to succeed. Fortunately Genesis Vision has conducted several trading tournaments in the past, and each time there have been many managers who demonstrated double digit returns in FOREX and in crypto. The upcoming marketing campaign should accelerate the effort in attracting more talented managers.

Liquidity and access to markets

Having ready, willing, and able traders won’t mean much if they don’t have access to the markets they want to trade in, or if those markets lack the liquidity for them to trade effectively. This is actually a VERY important issue that many people overlook when assessing the project. However, the most recent partnership with LMAX completely settles any doubt on this issue. LMAX is one of the largest exchanges with annual volume of over $4 Trillion. Managers on Genesis Vision will have access to an ocean of liquidity.

Sufficient number of willing investors

Managers on the platform won’t have much to do if no one invests GVT with them. Therefore investors are just as necessary as any of the components described above. The upcoming marketing campaign should be able to provide visibility to many new eyeballs who have never seen or heard of Genesis Vision. However, I believe nothing will get the word out on Genesis Vision as quickly as the first batch of investors who see a substantial return on their investment on the platform. There truly is no force like FOMO.

Platform Utility and Security

Finally, the platform has to work. Period. It should be easy to use. It should display data in a way that is easy to understand and display it beautifully. It should be easy to learn quickly and feel responsive. For me, it is comforting to know that Genesis Vision hired the design team responsible for TradingView.com, to develop the UX/UI.

Additionally, it must be safe, and be bullet proof to hackers. A little known fact about Genesis Vision is that they have a cyber security expert and hacker on their team. This person is none other than Vlad Roskov. Vlad was the team leader of “More Smoked Leet Chicken”, the number one global sport-hacking team in 2012 according to CTFtime’s overall rating. You can rest assured knowing they have the right talent to ensure that your funds are safe.

How should I select which manager to invest in?

In the beginning — I’m talking about when the platform is freshly released on day 1 and all the managers are level 1, there will be a great deal of uncertainty. You really can’t tell who will be a great manager or who will be a terrible manager. If you do decide to invest in this period, I would recommend investing with someone who has a track record of success, such as one of the previous tournament winners or a celebrity trader.

Personally, I would wait until there are several higher level managers before I would invest. Additionally it was announced by the team that there will be a “ETF” consisting of the top managers. I think this ETF would probably be the most consistent and safest place to invest, and personally I can’t wait to see the performance of this fund over time.

What should I do now?

Given the time line we know that the release of the functional product will come on October 30th 2018. This means that in a short time, all of the things I have been describing will become reality. I believe those who buy GVT earlier will profit greater than those to who buy later. If you’re curious of what the price might do in the coming days, I’ve got an article coming out soon that is all about price. Stay tuned.