From The Fund Manager
This week began with a promising move in both ETH and BTC but volatility quickly died down. By Wednesday, I was thinking we would be reporting our worst week to date, but by the grace of the Crypto Gods volatility returned to the market and provided Mintie (our algorithm or trading bot) with all the movement she needed to bring the week back into profit.
As I have mentioned before, we are on a winning streak at the moment. We do expect to have loss weeks, but at the moment the market has been particularly well suited to our algorithms. I mention this as I don’t want to be setting unrealistic expectations.
This week has also been busy away from trading. Our team will have some internal changes, including taking on a new team member, which will be publicly announced upon finalization. We have also been kept busy with our upcoming projects, together with and some changes being made to our website. These changes will be implemented over the next few weeks.
I want to take a moment to cover the audit. The search for a firm that is able to undertake our requirement is still ongoing. We have approached a wide variety of firms from accounting firms to hedge fund assurance bodies, all running in to issues around us being Seychelles based. We are waiting on correspondence from a couple more places in different global locations that we believe can assist us. It has also been suggested that approaching a lawyer based in the Seychelles might be another approach that we could take.
As we pursue these options we will continue to report the outcome. I have included a redacted email (to protect the identity of the company involved to prevent them being harassed) showing a hedge fund assurance company’s response to our request, just to give you an insight into the resistance we are trying to overcome.
Image: Email correspondence for audit.
As you can see, even though this company can do some off shore jurisdictions, they are unable to assist us in the Seychelles. This has proven to be an unexpected side effect of being Seychelles based and the delay on the audit has been nothing short of an embarrassment to both myself and Countinghouse. However, we will continue to do our best to find a solution.
We are still looking to produce some more content as far as blogs and vlogs go. Mike has produced a blog looking back over the past few months, and we have been making weekly prize vlogs. Moving on, we also want to get back to making more discussion vlogs about investing and trading. Our more informative, discussion based vlogs have proven to be a lot more popular and we intend to bring the light-hearted style that we use for the prize vlogs into our more informative videos. We hope it will prove to be a good mix.
The Buyback page on our website has now been updated. Now if you click onto the buybacks tab on our website, you will be taken to a page with fields you can fill out to be added to the buyback queue. It’s just one less step in the process to make it both easier on our investors and on our staff. As you can see from our screenshot below, it is a very simple form to complete and you are in the queue!
These processes will continue to be streamlined over time, as we always say ‘progress not perfection’.
That is all from me this week. Please also be patient with us next week, as it looks to be a continuation of this week’s craziness.
Once again, thank you for taking the time to read through the report and on behalf of myself and the rest of the Countinghouse team, we would like to wish you and your loved ones a safe and enjoyable weekend!
Market Activity Snapshot
Weighted Average: 0.003512457 ETH or USD$0.77 per CHT
Non-Weighted Average: 0.003548950 ETH or USD$0.78 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).