Technology has entirely transformed how people do business for good. Artificial intelligence (AI) is the future of computing, and blockchain technologies are the future of finance. Despite the fear and the apprehensions, more people are investing in cryptocurrencies each passing day. Moreover, in recent years there is an increased co-integration of AI and blockchain technology, which has opened tremendous growth potential for blockchain based business concepts.
Some technology experts are referring to this as the ‘merger of innovations.’ The combined use of these technologies can effectively be used for a secured transaction and intelligent business analysis. Hyde & Co. (HCO) Investments has combined all these features and developed a prediction service, by using artificial intelligence helping you to buy and sell securities. All token holders of HCO can use the service.
Objective of HCO Investments
As already said, HCO uses AI to predict the market’s movement. The market here does not only refer to cryptocurrencies but is comprised of currencies, future, options, stocks, and so on. Their ‘collective’ hedge fund operates via cryptos. The company purchases and sells securities by using artificial intelligence (AI). In fact, they use AI to scan the market and track those securities which have potential and are possibly going to increase in value and also those securities whose values are going to decrease and trade them accordingly.
HCO uses a cluster of blockchain algorithms to evaluate the market conditions and uses the data to make business decisions. The system probes through various options, analyzes the profitability and opportunities that arise globally, and trades equities.
A significant amount of the funds raised during the ICO will be channeled for direct investment on ‘long-short’ funds, which shall be able to provide a reasonable profit for the investors (token holders). The business model supported by AI will identify the opportunities by analyzing complex data and help to make the right decision.
Working module
The company shall scan the vast amount of market data by using the power of artificial intelligence to find profitable stocks of trade equities all over the world. Even though the securities will be traded globally, more emphasis shall be given to American securities. HCO uses the AI to understand the behavior of specific equities over a period. At present, the company is restricted to work only in the stock market, but soon they are planning to expand to other sectors as well. Also, the fund is closed-end which implies that people not in possession of HYD token wouldn’t be able to invest in it.
Initial coin offering (ICO) detail
The symbol of the token is HYD, which is based on ERC20 and uses Ethereum blockchain for the creation of the smart contract. The pre-ICO started on January 17, 2018 and ended on February 1, 2018. The ICO started on February 2 and shall end on March 3, 2018. The minimum amount that you can invest in the HYD token is 0.01 Ethereum (ETH) or 0.1 BTC, and in the case of fiat currency, you can invest 1,000 GBP. Only ETH, BTC, and GBP will be allowed as payment methods.
Out of the total fifty million tokens, the company has offered only ten percent of the pre-ICO sales. As per the ICO plan, the unsold pre-ICO tokens shall pool back to the ICO sales. The presales conclude at the rate of 1 Ethereum = 1,000 HYD. Out of the above fifty million tokens, one million shall be kept as a reserve for the bounty program, and nine million will be earmarked as a reserve for the employees of Hyde & Co Ltd.
The ICO is planning to complete in four tiers. In the first tier, 0 to 5,000,000 HYD tokens will be sold at the rate of 1 ETH= 850 HYD. In the second tier, 5,000,001- 15,000,000 HYD tokens will be sold at the rate of 1 ETH= 700 HYD. In the next tier, 15,000,001 – 25,000,000 HYD tokens will be sold at the rate of 1ETH= 600 HYD. In the last tier, 25,000,001 to 35,000,000 tokens will be sold at the rate of 1 ETH= 550HYD. All unsold token will be destroyed, and it will not form part of the market cap. The company is planning to distribute the first dividend in January 2019 for the token investors. The tokens are payable only by BTC, ETH, and GBP, and during the pre-ICO, the minimum transaction is 1 ETH, which is equal to 0.1 BTC or 1,000 Pound (GBP), and during the ICO, the minimum transaction is 0.1 ETH which is equal to 0.1 BTC or 1,000 Pound (GBP).
Fund distribution
Hyde & Co is aiming to get a thirty percent return each year before deduction of the management fee. The funds generated from the pre-ICO and ICO shall be distributed in the following manner. Three percent of the funds will be used for acquiring market data, one percent for hardware, three percent for legal expenses and fees, ten percent for the development and growth of the team, and the main part of the fund (83%) will go back to the trading system. It is imperative to mention that this will only be possible if the company can manage a successful ICO of a soft cap of 100 ETH. If not, the company shall refund investments and the refund will pool back to the same wallet which was used for purchasing the token, either in Bitcoin or ETH without any processing charges.
Apprehensions
Just like any other business, the risk factor of HYD also requires a close analysis. In the case of HYD, there are two ways by which investors can profit: (1) by buying the HYD token and selling it later at an increased value, and (2) holding the HYD token and receiving the dividend share. If the HYD token performs poorly, and the cost of token falls below the purchase rate, the investors will be at a loss. In the second case, since the fund is more focusing on American stocks, the profit will also be received in USD. Hence, if the value of USD falls with respect to ETH or BTC, the investor’s profit will reduce. Since the HYD token is Ethereum based, any problem in that cryptocurrency will have an adverse effect on HYD too. Also, the regulations relating to cryptocurrencies have been tightening all over the world. It might adversely affect the business as well. Therefore, before investing, it is important that you pay full consideration towards the risks and the costs involved.
Conclusion
Few companies have already been integrating AI with blockchain technology, but the step taken by Hyde & Co is an innovative idea. The standard hedge fund requires at least one million dollars in investment, but in this case, the minimum investment is just 0.1 ETH. Every year, the company will give back part of its profit to the HYD token holders. For the first year of its operation, the company is optimistic to offer a dividend of forty percent, which is very well achievable reading through the scope of the business model. It is a unique business concept, and it can make investors rich and that too very soon, if everything works out in the right manner.
