From The Fund Manager
This week has been a lot slower than the last, but it was still a profitable one – So no complaints from us! The middle of the week was dull, but thankfully, we had good trades at the beginning of the week and also near the end of the week. All in all, it was a week in the right direction.
On the issue of fund audit, we have continued our conversation with the firm in consideration and we hope to have some concrete news for our investors soon. We note that it has been a longer process than we anticipated. However, it is nice to finally have some promising development on this and less ambiguity.
As many of our Telegram community may have noticed, we have taken on a new team member to help moderate the channel. We are pleased to welcome Samuel Anthony to our team, and he is currently going by the name of ‘The An*tidote’. Samuel resides in a part of the world that will further cover our operational time gaps. He has a strong experience in both the Crypto sphere and in social media. Please do not hesitate to approach him on our chat, and I am sure you will find him very engaging.
The work on trading more pairs continues and is showing some positive results. This will take more time as we need to balance the opportunity of increasing the maximum fund size versus taking on additional risk, which does not increase in a linear fashion as the price movement of all the pairs look to be somewhat correlated. Furthermore, we will need to also take into consideration the issue of re-selling bought back tokens to increase capitalisation in the fund to enable the addition of these other pairs. Meanwhile, we are happy to receive investor feedback on this matter and to engage in discussions in this matter.
On Monday, CHT was listed on is DDEX as they also offered a double pairing of CHT/ETH and CHT/TUSD. DDEX is a decentralized exchange that facilitates wallet to wallet transactions, allowing all our investors to easily trade CHT. Do have a look on our Exchanges page for the link to check it out. We are still in the teething stage with DDEX and are currently ironing out some minor issues as we go. Soon, there may be an option to buy CHT direct from our webpage, thanks to some help from the team at #DDEX. More on this as it materializes.
I have been working on some improvements to the coding of Mintie, and it has been difficult to balance that intense work with the other ongoing tasks around Countinghouse. So, it has been decided by the team and myself that I am to move my focus primarily to algorithm development, and the rest of the team will be filling in my absence on social media and other aspects of my role -- We are calling this my Coding Sabbatical. This is something that is important to do and we will all hope to see improvements in the returns as a result of these efforts. We anticipate this to take me between 4 to 6 weeks to finish. For that period, you will see less of me on Telegram and other social media platforms.
That’s it from me this week. On behalf of the team and myself, we would like to wish you and your loved ones a happy and safe weekend.
Market Activity Snapshot
Weighted Average: 0.005793734 ETH or USD$1.18 per CHT
Non-Weighted Average: 0.005583000 ETH or USD$1.14 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).
Credit: Photo by Jimi Filipovski on Unsplash