From The Fund Manager
Another week has come and gone and we have seen a steady growth on the fund. This growth was mainly through the algorithmic trading as our current arbitrage strategy is beginning to exhaust the markets we are using of the particular arb we have been exploiting. This has meant that on Thursday we have moved a greater portion of the fund into the algorithmic trading to continue growth while we develop another arbitrage strategy. This is the nature of arbitrage, any given arbitrage strategy only ever lasts for a while.
All this being said we had a slightly higher than average gain this week, so a good result considering we had to re-balance the fund part way through. As the exchanges are already indicating, we would expect that most investors would be in a buy or hold position with regard to CHT this coming week.
Many of our investors would have already been made aware of our appointment of Chris our new Investor Liaison. Chris has already been engaging with our investor community and has some plans to develop our social media channels and Telegram chats in such a way that investors will be able to get the most from them. Those who have subscribed to our mailing list will also soon be receiving updates and notifications from Chris. If you haven’t had the chance make sure to introduce yourself to Chris on Telegram, he is keen to start building relationships with our investors and the community at large.
One other piece of news that I am sure many of you have already been made aware of is our upcoming listing with LATOKEN exchange. The reason that we have to wait to be listed is LATOKEN are one of very few exchanges getting the proper licencing to list security tokens like CHT. We believe this will position LATOKEN and the few other exchanges getting the licencing to become the preferred exchanges of professional and institutional investors, making it the perfect place for CHT to be listed.
That’s all from me, please peruse the below report at your leisure and you will hear from me again next week.
Market Value Report
Weighted Average: 0.002156863 ETH or USD$1.00 per CHT
Non-Weighted Average: 0.006000000 ETH or USD$2.79 per CHT
Valuation – Jae Jun Method
Fundamental value (sometimes referred to as intrinsic value) is a calculation to determine the actual value of a share, unit or in this case a token when looked at as an investment.
We have chosen the Jae Jun Intrinsic Value Formula. The main reason we like the Jae Jun is because it is one of the most conservative calculations there is.
Now we have kept to how this is traditionally used and that is to base it on a 10 year return, factoring in the yield reducing over time. We have also taken an extra step to be even more conservative on this calculation; Jae Jun reduced the ‘no growth PE ratio’ from 8.5 to 7 but due to the increased volatility in the crypto market we think it is more prudent to reduce this value all the way to 1 (this value operates as a multiplier in the calculation so reducing it to one is very significant in the results the formula we return).