Our mission and the ultimate purpose of AICoin is to enable investors in our token to build wealth through the power of artificial intelligence and the public blockchain.
AICoin is specifically designed to benefit individual investors by allowing them to become part of a collective. This collective is created with the recognition that to hold investments in other companies and hold assets with value, a framework must be built that recognises and respects the rights of all owners of this collective. With that said, our vision for AICoin is to bridge the divide between a conventional trading / investment company and a DAO without formal structure.
We envision a steady flow of profits and reinvestment using a distinctive two stage strategy. Trading cryptocurrencies with artificial intelligence will provide short term gains and the fuel to drive our longer term vision of becoming one of the most successful seed investors in the AI and Public Blockchain space. We believe this bold vision is completely attainable even with a relatively modest starting point because of our unique two stage strategy.
Frequently Asked Questions
Q: Are the AICOIN Tokens going to be held by the Singapore company or distributed to purchasers?
A: The token holder has 3 choices;
1. The Singapore company can host the tokens – token holder retains control of private keys.
3. For people that are concerned about managing their private keys the tokens can be hosted in a secure First Global Credit account. The token holder will need to go through the KYC process to take advantage of this facility. Contact [email protected] for more information about this facility.
Q: Will there be more AICOIN Tokens created in the future?
A: This is a one off issuance of XAI which, prior to market trading is linked to the price of bitcoin: 1 BTC = 100,000 AICOIN. After the end of the subscription period sufficient tokens will be created to meet XAI obligations. No further tokens will be issued after the ICO is over and 100% of the held assets will be used for cryptocurrency trading.
Q: How are bitcoins stored during the ICO?
A: When investors deposit bitcoins they go into BItgo Multi-sig wallets.
Q: Does everyone have an equal vote when selecting start-up investments?
A: Everyone’s vote is weighted by the number of tokens they hold. An important point to make is that the structure of the ICO is a collective. The AICoin tokens are not purchased, they are exchanged for bitcoin. The AICoin tokens are then owned and held by the holder, the bitcoins and other cryptocurrencies are held, collectively, by all token holders as are any equity or convertible debt instruments invested in by The Collective (the combined token holders).
Q: Is it possible to make an early exit from AICOIN?
A: We are aiming to ensure a liquid market on a number of exchanges, including First Global Credit. To facilitate this, and ensure an exit path for investors, part of the mandate from The Collective in the terms is that up to 10% of the Investment Pool may be used to buy back coins at 5% below the current asset value of the coins. This will provide an ongoing opportunity for investors to take profits even if new buyers are not aggressively purchasing the tokens. These tokens that are purchased back will then be offered to the market at 20% over what they were purchased for. Because there will be no further issuance of new tokens we believe that, as we build a portfolio of promising seed investments, demand will increase for the coin, above its asset value.
Q: If I commit to buying AICOIN now won’t I miss the bitcoin price increasing?
A: When you commit to buying AICOIN your bitcoin are retained as bitcoin until the ICO is over. Just before trading starts the value of your bitcoin will be converted.
Q: What protocol is AICOIN built on?
A: The coins are built on the Ethereum platform and are ERC-20 standard.
Q&A from Reddit AMA July 2, 2017
Q: When I explain this to people, I am asked, “How is AICoin different to Iconomi?
A: Iconomi is a platform which allows people to hold a basket of digital assets in a convenient form, which are then rebalanced as market capitalisation changes. AICoin is an active trading model that looks for inefficiencies that it can exploit in the cryptocurrency markets to generate excess returns.
There is also another very important difference and that is the Investment Pool. By utilising the combined expertise of our token holders; the “wisdom of the crowd” effect, to select the best seed investments in the fields of AI and blockchain I believe we can create a stronger set of portfolio companies than even the best VC’s.
Q: What inspired you and your team to begin this project?
A: The answer to the second question … the genesis moment. I was working with the developers on the AI model and the original plan was a simply a “passive investment fund” where investors could invest funds and have AI models trade their capital for them and charge a management fee. At the same time for my own benefit I was looking at making an investment in some small start-ups. What struck me was how limited just my own resources were when making those investment decisions. I like the concept of the DAO but wanted more security and structure and the ability to invest in equity and convertible instruments as well as digital assets – that’s where the second pillar of the investment process came into being. The blockchain provides the perfect mechanism to harness the voting and the presentation of information to investors which is how it became an ICO with the holders of the tokens also being “The Collective” who, collectively, own all the assets. Like a modern day cooperative.
Q: Are there development plans for another platform for AICoin? Will the User Interface for the exchange of the information evolve?
A: One of the enhancements currently in development that will be released prior to the formal subscription period is an Open Source wallet. Holders of the coin can either host the wallet themselves or have it hosted on our site. This wallet will provide the communication mechanism with the token holders. They will be able to: 1. See upcoming votes (and execute those votes) 2. See information on the candidate companies 3. Drill down and see the pitch decks and other information 4. Ask questions to the companies (via the investment committee)
There will also be open channels where token holders can discuss the merits of the different propositions prior to a vote.
The key for us is the governance – we are committed to this being a genuine collective where the token holders decide how their assets collectively are utilised.
Q: Will the AI trades be fully disclosed to token holders?
A: Yes, all trades will be published no later than 4 hours after the trade has been completely executed (execution may, in turn take a number of hours to minimise slippage). In addition all results and assets will be independently audited and the audit report made available to token holders.
Q: The models are profitable now, how do you know they will remain profitable?
A: The models are designed to adapt to changing market conditions – this is essential when working with financial markets that are non-stationary in structure. The way we look at the models, they are in an arms race with all other models and participants out there. When a new competitor enters the market and knocks the profit of the AI models they are designed, using the Genetic Algorithm selection process, to find offspring models that perform better and can outperform the new entrants – in effect they are learning to out-trade the new guys on the block.
Q: My question is simple: Does the project plan to create more AICOIN after the ICO? And is it possible to take money out of the token if needed?
A: The coin will be tradable just like any other crypto asset so you could sell some or all of your holdings in the market just as you would any other ICO. To ensure there is sufficient liquidity to absorb the selling pressure, each month the coin will use up to 10% of the funds in the Investment Pool to buy back coins in the event that there was insufficient demand in the marketplace.
Q: Is there any concept of dividend payments? Or is the only way to take profit to sell a portion of AICoin holding?
A: For the initial launch there are no dividend payments scheduled. The AICoin token, however, does support the payment of dividends. Because the governance is controlled by the token holders this can be proposed and if voted for by the majority then can be executed.
Q: Crypto currency markets are currently quite inefficient and Wintermute may well be the first sophisticated bot to enter the space. I’m assuming that it won’t be the last, so how do you feel it can keep an edge when its trading against other AIs as opposed to emotional retail investors?
A: The bots we have deployed are similar in design to those being used successfully in regular markets. Margins have certainly declined in regular markets as more models now use an AI element, they are still quite unique in the way they combine the deep learning approach with genetic algorithms. The way to look at it is an evolutionary arms race. As new entrants enter the marketplace and temporarily reduce the opportunities then the Genetic Algorithms kick in and learn how to out-trade the new entrants. As a secondary boost to this one of the reasons we have a second pillar to the strategy, making seed investments in AI companies is for exactly this reason. We won’t have all the best ideas and by investing in small growing companies in the field we have the opportunity to collaborate with these companies to build better trading models, as well as their core AI product development.
Q: how is the seed money invested in new startups translated to AICOIN book value? is it just ‘marked to the market’ at the point of investment?
A: We will follow a very conservative valuation approach on non-tradable assets. We will value everything at either. 1. The entry price of the investment. 2. zero if the seed investment has failed. 3. We will only increase the valuation to a higher than entry price when we have an exit opportunity to realise some or all of these gains. This will clearly understate the value of the successful investments but this will be coupled with full transparency of the investments so individuals can make their own assessment as to interim valuations. Obviously if we have participated in an ICO where the coins are tradeable then we will revalue basis the coin value on a real-time basis.
Q: I wanted to put some bitcoin into this because I’ve been watching the trading on ouraibot.org. But I think there are other coins that would be good to add. Is it possible to add other coins to the mix. And how long would that take?
A: Yes it is possible to add other coins. The models work on a single model / multiple market approach so we don’t train a separate model for each market. Therefore it is quite easy to add additional markets to the mix. The key element for us is that there is a liquid market in the coin. One of the things we are looking into is gathering ideas from our token holders about new coins to trade (not invest) this is something we will do before the end of the subscription and then on a regular basis after the launch.
Q: How will the decision be made to sell interest in projects? Will this be all or none?
A: It will depend upon the offer that has been presented. Where possible we will present the offer to AICoin token holders but, in exceptional circumstances, a decision may need to be made quickly. In this instance it will be made by the investment board. The typical set of options presented to token holders will be: 1. Sell none 2. Sell 25% 3. Sell 50% 4. Sell All This will be more manageable than providing an open range to choose from.
Q: What would happen in this scenario to protect coin value?:
The AI becomes unprofitable in trading for an extended period of time, the project pool is empty, there is no bid interest in the AICoin. In this scenario, could any of the AIcoin trading funds be used to directly support the AIcoin value? Could the board make a decision to directly distribute the remaining assets to coinholders? Is there any other mechanism which could put a floor on the AIcoin trading value if the project pool is dry?
A: There are 2 mechanisms here to protect token holders: 1. If there are no funds in the investment pool then the token holders can authorise the company (through a blockchain vote) to use 10% of Coin Pool funds (trading funds) to buy back AI Coins at 5% below current asset value. 2. There is a liquidation clause in the terms where if over 80% of token holders elect to liquidate the collective then all assets will be converted into the primary crypto asset (currently bitcoin) and distributed to token holders. The liquidation is likely to be over a period of time so there will be multiple distribution tranches (first the easily liquidated crypto assets followed by holdings in less liquid crypto assets and finally holdings in equity and debt instruments.
Q: Is it correct to assume that the 10% of Coin Pool funds route could be done more than once? How often? Would the option to vote for that be continuously available or initiated in some way?
A: Yes in the unlikely event that the Investment Pool remains empty for a significant period of time then this facility can be introduced on a monthly basis to ensure there is always an exit for token holders.
Q: How will the book value be updated? On a dynamic basis, or perhaps monthly?
A: The book value of tradeable assets will be updated on a real-time basis and made available on the AICoin.io website. The positions information will be updated but with a delay – this is to prevent other market participants front-running our orders. We will provide full trade details up to 4 hours after the completion of the trade.
Q: There’s sometimes a big difference in the price of coins on different exchanges. Is that a problem?
A: We actually use that information in 2 ways. 1. We feed key markets into the model as we have found that the markets tend to diverge during periods of market “stress” and that is valuable information that the models can use. 2. Once the AI models have made a trade decision this is fed into the hedging algorithm that has the sole responsibility of executing the trade in the best way (if the AI is the trader then the hedging algorithm acts as the broker). It is designed to take advantage of the anomalies across different exchanges and feed order slowly into the different exchanges starting first at the highest value (if we are selling). This has the dual purpose of maximising our returns and also making the selling (or buying) less obvious and reducing slippage. The hedging module is also responsible for managing counterparty risk. We tier our counterparties (using the same risk control methodology that we use at First Global Credit). Tier 2 counterparties (the highest possible for a cryptocurrency exchange) has no more than 15% of assets held with it, a tier 3 has no more than 10% of assets held with it and a tier 4 no more than 5% – this helps minimise the impact in the event of any suspension or failure by a single exchange.
Q: Could you give us an idea of the company’s plan to retain and attract developer talent as well as the possibility of branching out into other markets such as Forex.
A: We are fortunate to have some key developers with extensive knowledge of financial markets within our core founders of First Global Credit. One of the real benefits that I see in the second pillar of the AICoin, the investment pool, is the capability to invest in exciting new start-ups in the field of AI. While we may have a lot of experience applying these models to financial markets, we are also aware that there are always good people out there coming up with exciting new ways of applying the technology. By investing in these companies at an early stage the AICoin collective has access to these companies to develop JV’s and look at bringing their techniques to bear in the cryptocurrency field – providing them an additional revenue stream and the coinholders with an ongoing pool of exceptional talent to enhance the AI models.
Q: What happend with BTC I’ve deposited during the subscription period, if the price of BTC goes down?
A: No there will be no change in the effective valuation as you are simply exchanging bitcoin for AICoin. Bitcoins raised are still held, collectively, by all the AICoin token holders so they still hold that value. We looked at different models for the subscription period, one was to value the subscription in USD but, as the assets will be held in cryptocurrency during the subscription period then we felt it made sense to denominate the exchange rate on the same basis. We are expecting to open up the subscription to other coin types during the formal subscription period starting on 17th July. For these other coins we will value them vs btc on the date they exchanged their crypto asset for AICoins.
Q: As I understand it the cap on the number of coins is finite based on how much is raised in the ICO. I believe this is a very important aspect for consideration. Recently TEZOS ICO raised over 100 million dollars in a matter of minutes. (I still am incredulous). My question is am I correct in the market capitalization thought, and is there a minimum/maximum on the amount raised during the AI∙COIN ICO?
A: Yes the amount raised will be fixed during the subscription period. There will be no further issuance after this date. Any new entrants wanting to hold ICoin will need to purchase the coin in the open market. We have included a clause in the terms that allow us to close the subscription early in the event that we start to exceed the optimum amount that we can effectively deploy in the cryptocurrency markets.
If you have any questions, please email them to: Marcie Terman.
REDDIT AMA from August 6
Hi, my name is Gavin Smith, CEO of First Global Credit. I’m happy to answer any questions you have about the AI coin ICO (https://aicoin.io) that we are launching.
Q: Hello Gavin, and thanks for doing this AMA. My question is about BCH. What will happen to the newly generated coins. Will AICOIN be able to accept them as deposits, or enable their withdrawals?
A:Hi bitlitguy, yes we have enabled BCH deposits as of yesterday. The confirmations are still taking some time because of the blockchain delays but we credit the subscription as soon as it’s seen on the BCH blockchain.
It’s also worth mentioning that we will be setting up the AI models to actively trade the BCH markets once trading begins in September. We believe there are likely to be some good profitable opportunities in the markets early days.
It’s also worth mentioning that we will be setting up the AI models to actively trade the BCH markets once trading begins in September. We believe there are likely to be some good profitable opportunities in the markets early days.
Q: Hi Gavin. It’s great to be able to talk to you. I think this is a great idea. I’ve looked at the trading results from your bot. When this starts making a profit, how do I access that?
A: On the launch the coin will be using a percentage of the profits each period to buy back the AICoin tokens. This will have two effects; first it ensures a liquid market for token holders to buy and sell coins. Secondly it has the effect of increasing the token value for remaining token holders. Following the launch we also intend to put a vote to the token holders about whether to introduce dividends. This will be the first vote using our unique democratic structure for the operation of the investing collective.
Q: Morning Gavin!
I wonder why is there no clarity on the funds raised so far? When can we know more about it?
A: Hi, It was something that we didn’t appreciate would be important to subscribers…sometimes you can get so focussed on the technology and the trading aspects of the offering that we forget that there is additional information that is important to people. To address this we will be adding a public record of subscription totals on the site. This will show an up to date record of subscriptions over the life of the ICO. The developers are in the final stages of ensuring that the information is presented cleanly before releasing it early next week.
Q: Thank you Gavin! If I’m not mistaken AICOIN is pegged to the price of BTC? 100 to 1 BTC. I wonder why is it so high? That actually makes it hard to trade. What are your thoughts about it?
A: Hi, yes, it’s OK, we don’t ration questions :-).That’s a question that we’ve been asked during the course of the ICO. While it makes no difference from a true coin value perspective as the funds raised are still collectively held by the token holders – it may make a difference to the perceived cost of the coin and the after issue liquidity of the coin. One of the things we are looking to do that will help address this is to change the subscription ratio of bitcoin to AICoin. We are considering changing the ratio from .01 to 0.00001. By implementing this, effectively, as a coin split it will not adversely impact existing subscribers (they will still have the same subscribed value in bitcoin) and it will allow all AICoin token holders to benefit from the increased liquidity provided by the higher subscription rate. We will have a definite decision on this shortly.
Jon Matonis: Very informative AMA. This should be a regular feature.
A: Hi Jon, I yes I agree, it’s a great way to answer questions on subjects that that may be a little unclear or of concern (such as the recent hard fork). Maybe a monthly FGC AMA.
Q: What coins the bots trade when the ICO closes?
A: The original plan was to trade bitcoin, ethereum, ether classic, monero, dash, ripple, and zcash. We have since decided to introduce bitcoincash to the portfolio.
One thing we are interested in hearing from people is other coins they would like to see the models trading. Will will consider requests in advance of the launch. After the launch we will suggest new coins on a regular basis but it will be the decision of the token holding collective to decide whether to add them to the trading portfolio.
Q: Hi Gavin. I was wondering if you could speak a little bit more about the Investment Board. I noticed earlier in the week there was some news surrounding the board itself and would like to hear more about your thoughts regarding the types of companies that the ICO will invest in and how the other board members will be selected. Thank you.
A: Hi, The investment board is made up of 5 members. Two represent the developers and FGC, two are elected by the token holders and 1 is an independent appointee, a role that Jon Matonis has kindly agreed to perform. The investment board will be selecting from the pool of potential investments the most exiting and innovative companies in the fields of Artificial Intelligence and Public Blockchain. We have selected these two fields as we believe that both will offer truly disruptive solutions in broad areas of the economy with the potential to provide outsize returns to our token holders.
Thank you everyone for your questions. If there further questions we have a slack channel, you can register here: https://slackpass.io/aicoin and we will be happy to provide additional information.
Hi, this is Gavin from First Global Credit for the evening session to answer any questions that may have come up during the day.
Q: Hi Gavin. It’s great to have the chance to speak to you. We’ve been in a bull market this year. Can you talk a little about how the models will still make money when the run breaks.
A: Hi, thanks for the question. The models are trained to adapt to different market conditions and also pull back when market conditions look to be changing. This was demonstrated quite well during our live test where you can see the live trade by trade action. The models benefitted from the strong rise then, when market conditions changed to more choppy sideways action they pulled back and held onto the profits already generated.
Q: So the models are flexible in understanding different types of markets. What about different coins? Could you get them to trade other ones?
A: We’ve trained the markets to trade crypto markets as a common asset class as opposed to a separate model for each market. This has a number of advantages when dealing with limited data sets and history – a real challenge when applying deep learning to cryptocurrency markets. An additional advantage with this approach is the ability to add additional cryptocurrency markets. Provided a market has some key essential characteristics; namely reasonable liquidity, reasonable spreads relative to daily move, and multiple exchange participation then we are able to apply the model to trade that market. A good example of this is bitcoincash – despite having a very short history we intend to add this coin to the list of assets traded by the AI models.
Q: Hi Gavin. I work for NewsBTC. We are talking to a lot of people right now who are wondering what will happen with bitcoin cash. Do you see that as something your models could trade? Could First Global accept the risk of taking bitcoin cash deposits in AICOIN?
A: Hi, yes we will be trading bitcoincash. We have also opened up bitcoincash deposits as subscription for AICoin. We are handling it slightly differently to other coins because of the additional expected volatility. We will hedge a portion of any bitcoincash deposits that are received into bitcoin so reducing the exposure for all our subscribers.
Q: OK, we’ve just had a question from bodoublex on our slack channel which I will copy and paste here: “Hello how are you? Is the potential of AICOIN price on the exchanges similar to IOTA’s and EOS’s after the ICO is finished. What price range are we expecting and are there dividend distributions?”
A: The price range achieved immediately after the ICO completes is always a difficult question to answer, much depends on the sentiment at the time of the launch but there are a few things that we believe will help the launch go smoothly: 1. We have decided to split the AICoin into a smaller denomination (obviously subscribers won’t be adversely impacted – they will simply receive more coins of the lower value per coin) but we believe that by doing this we will increase liquidity and increase the after ICO demand profile. 2. Because of the associateion with First Global Credit we will be providing a market making activity for the coin immediately after the ICO launch. This should help provide a two way market in the coin and provide some stability to allow confidence to grow and the price to increase.
With regard to dividend distributions, this was not in the original user terms so we cannot simply add them (our original plan was to do regular coin buybacks with part of the profit as a way of enhancing returns for token holders) – but dividends is something a number of subscribers have requested. This gives us the opportunity to use the power of the collective governance model we have used with AICoin. Immediately after the close of the ICO we will be creating a vote that allows the token holders to decide if they want dividends paid and what percentage of the profit should be distributed in this way.
Q: If I wanted dividends I’d buy a stock. What really excites me is the opportunity to invest in start-up companies. How are you going to select start-ups for investment. If we hold AICOIN can we still submit a startup for consideration?
A: Hi. Yes absolutely, we welcome new investment proposals presented to us from the AICoin token holders. Obviously the proposal needs the agreement of the company or ICO seeking investment but the central belief of the seed investment model is that many heads are better than one and that applied to finding investment opportunities as well as deciding which companies to actually invest in.
Q: Another question from the slack channel: mudasar asked “If I understood correctly, there is no pre-mine with AICOIN. 10% of trading profits go to devs, but that doesn’t vest as far as I know.”
A: There is a 1% allocation of coins that goes to First Global Credit and the devs for setting up the infrastructure and the technology. Apart from that you are correct, the developers receive 10% of new profits made by the modesl. We believed that this was the fairest way to allocate profits – the developers only gain if the token holders gain. All the team have, however, invested their own capital into the AICoin proposition so we are fully vested in the success of the investment collective.
I’m going to wrap up the questions now. Thank you for your participation in both sessions and I hope the answers were useful. If you have further questions the best forum is our slack channel which you can join at: https://slackpass.io/aicoin
Q: Hello Gavin, Where will the coin holders vote and how will we liquidate coins if they are stored on your site?
A: Hi, the AICoin token is an ERC-20 ethereum token so can be held in a standard mist wallet or other erc-20 aware wallet. In addition we will be publishing an open source wallet interface that sits over the standard wallet interface. This will make voting and managing the votes much more user friendly (it will allow you to view current and past votes plus the results of historic votes). In both of these instances you hold the coins in your own wallet. The final option, for holders that don’t want to hold their own wallet, we will provide an interface for token holders to manage the coins on our node. This will provide the same easy to use interface but wont require running a full ethereum node locally. We will be publishing the open source wallet details shortly on our GitHub page.