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This repository has been archived by the owner on Feb 25, 2023. It is now read-only.
Carlo P. Las Marias edited this page Mar 27, 2018 · 3 revisions

What is CoinAlpha?

CoinAlpha is a platform that connects investors with tokenized hedge funds.

What components make up the CoinAlpha platform?

  • Fund protocol (github.com/CoinAlpha/fund-protocol): An Ethereum-based protocol for creating tokenized hedge funds.
  • Investor portal (investors.coinalpha.com): a web app that enables investors to discover, invest in and manage a portfolio of tokenized hedge funds.
  • Fund (TBD): A fund that utilizes the protocol.
  • Fund manager portal (TBD): a web or decentralized client app that enables fund managers to create and administer tokenized funds.
  • Trading infrastructure (TBD): a suite of services that help fund managers access data, connect to exchanges, and execute cryptocurrency trades.

Can any investor participate in funds created using this protocol?

Participation in funds depends on local laws and regulations. We anticipate that our funds will utilize exemptions under Regulation D and Regulation S of the 1930 Securities Act, which means that U.S. investors need to be Accredited Investors or Qualified Institutional Buyers, as defined therein.

Is this an initial coin offering (ICO)?

No - all funds issued using the protocol are denominated in Ether. Currently, there are no plans for a separate CoinAlpha platform token. Since shares issued by funds utilizing the Fund Protocol are Ethereum ERC20 tokens, the process from an investor standpoint is similar to that of an ICO. We expect the value of this token to closely track the fund net asset value per share, a regularly updated variable publicly available to all.

Are your funds Decentralized Autonomous Organizations (DAOs)?

No - we cater to institutional and high-net worth investors who seek professional, active management for the cryptocurrency portion of their investment portfolio. As such, our protocol is designed to enable an centralized asset manager to make investment decisions and generate alpha for investors, while utilizing the blockchain to reduce costs and to protect investor rights.

What happens to investor proceeds after investment?

Once shares have been allocated, the smart contract immediately deploys investor capital to a CoinAlpha-registered account at a reputable cryptocurrency exchange such as GDAX or Gemini. The fund manager has trading authority over this account and employs proprietary trading strategies to actively manage the portfolio. If and when CoinAlpha opens the platform to external fund managers, their authority over exchange accounts will be limited to trading and exclude withdrawal rights.

How do investors know that the fund valuation is accurate?

On a daily basis, the smart contract utilizes the real-time value of the exchange portfolio to calculate the fund net asset value per share. Inputs, intermediate steps, and outputs are emitted as blockchain events, enabling full audibility afterwards. In addition, each fund's trading activity and historical performance are available to fund investors via the Investor Portal.

Is CoinAlpha hiring?

We're always interested in hearing from interesting people! If you have an interest in working for CoinAlpha, feel free to reach out to us at [email protected].