What if the volatility of cryptocurrencies could be eliminated, making crypto more of a feasible, mainstream investment?
An established fintech company is working to achieve just that. Rise, which was founded in 2012, is planning to adapt its artificial intelligence (AI) trading technology to the cryptocurrency markets – enabling users to manage their investments and trade across dozens of exchanges.
The Germany-based software firm began life in 2012, and its algorithms are already being applied to stock markets, forex, precious metals, and other commodities. Since its launch, Rise says its technology has been “proven to outperform major markets.” Unlike other platforms which have excluded clients because their investment size is too small, the company says it has taken pride in offering its products to all.
In recent years, Rise’s user base has grown – and according to its white paper, it currently has more than $50 million in committed assets under management. Hedge funds, insurance companies, large conglomerates, and financial institutions are among the big players who have started to use its algorithms. Its customer-facing, cryptocurrency focused app is going to be based on an existing program called UpTick, which has amassed more than 100,000 downloads to date.
Careering into crypto
Rise is now hoping to replicate its success in the fiat financial world in the crypto sphere – without charging the high fees that many investors face. Its white paper explains: “The playing field is being leveled for all who join Rise, as well as bolstering the cryptocurrency market itself with data-driven investment strategies that are free of emotional human bias, ignore hype, and avoid the pump-and-dump marketing or boom-and-bust cycles that inevitably bring unnecessary risk to the market.”
The company is upbeat about its position in this competitive marketplace. Rise claims it has a long-term team of mathematicians, ex-professional traders, AI specialists, and crypto experts – as well as a technological agility which “large, slow-moving players” cannot match. In addition, the platform believes “high regulatory barriers for newcomers make it difficult for follow-up runners trying to copy models.”
Rise also believes that time is running out for regular human traders who are looking to make a profit from cryptocurrencies. The firm fears that, over time, this sector will go the way of the traditional stock market, where gains can only be extracted by “machines to which access is restricted to a small population of the uber-wealthy.”
How its format works
The firm is now launching the Rise token, which it describes as the entrance point for its ecosystem. According to the company, token holders will be able to “access award-winning technology,” but as part of the company’s business model, they will also be profit participants – sharing 20 percent of the revenues that Rise accrues by licensing its technology to banks and third-party funds. Users will also directly receive returns generated by Rise algorithms, the company says. All those returns shall be paid out as dividends on a quarterly basis. It also plans to offer margin trading schemes – increasing the investing power of token holders “by 50 percent or more.”
Rise says its security token will be fully compliant with “one of the strictest jurisdictions in the world” – Germany.
A private presale of Rise tokens has been taking place from Sept. 1 to Oct. 31 2018, with a public sale taking place throughout November in three stages.
Following the end of the security token offering (STO), a full version of the Rise app – complete with all trading features – is set to launch in the first quarter of 2019.
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