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SMARTER THAN CRYPTO (“STC”)

SMARTER THAN CRYPTO (“STC”) is the world’s first cryptocurrency-only SMARTER THAN BETA tokenized portfolio, and aims to provide a solution to this problem. The portfolio will autonomously maintain a diverse portfolio of up to the top 20 cryptocurrencies by market capitalization. The SMARTER THAN BETA strategy can outperform any index in any asset class by 40% more return and 40% less risk. In order to continue to have an efficient portfolio in regards to return and risk over time, SMARTER THAN CRYPTO’s asset portfolio is adjusted regularly in a process called rebalancing. SMARTER THAN CRYPTO is not a platform nor is it a fund, it is a fully functioning product in the form of a Comingled Managed Account (“CMA”). SMARTER THAN CRYPTO cuts out the middleman and is thus able to offer the lowest fees in the industry.Salus Alpha’s SMARTER THAN BETA strategy has consistently outperformed indexes and their passive index trackers. For the last ten years investors poured significant amounts into index tracker funds, while actively managed funds experienced outflows during the same period. One reason why index funds outperform actively managed funds is due to their low annual fees.

SMARTER THAN CRYPTO has an annual fee of only 0% whereas competing crypto offerings have fees of 3% per year. All crypto offerings built on one of the many recently launched fund platforms will apply their fees over and above those of the platform. SMARTER THAN CRYPTO can offer such low fees because it is independent and automated. Index strategies are a set of rules that an algorithm can act on with no human intervention required. SMARTER THAN CRYPTO is a utility token that is representative of a portion of the total value of the Crix -Crypto index. The initial tokens can only be acquired during the token offering process which is a one off, closed cap offering. The tokens provided will represent a participant’s share of the portfolio. 100% of the total amount contributed during the offering will go directly towards buying the underlying cryptocurrencies. SMARTER THAN CRYPTO is an ERC20 token based upon the Ethereum blockchain. Operating on the blockchain allows for global accessibility, 24/7 trading, transparency, public verification of SMARTER THAN CRYPTO’s holdings and no expensive legacy banking fees.

LIQUIDATION OPTION

High-volume traders may seek to exploit pricing to the detriment of the community by initiating sell-offs that cascade and result in flash crashes so that they can purchase the cheap tokens. The liquidation option offers a price floor protection – this ensures the price never drops below that of the underlying assets because of market manipulation. Prices are, however, free to increase as speculative value is created by the high demand for a low-cost, diversified and automated cryptocurrency portfolio that can be held as a single token. A small, dynamically allocated percentage of SMARTER THAN CRYPTO’s assets will be held by the smart contract (in ether) to facilitate the liquidation option. This amount will be controlled automatically as usage demands. The vast majority of other cryptocurrency assets will be held in various cold storage wallets. During a withdrawal, the SMARTER THAN CRYPTO tokens are transferred back to SMARTER THAN CRYPTO’s wallets. These tokens are then resold on exchange at the current NAV per token or market price, whichever is higher. This ensures that the underlying assets can be rebought in the event that an investor uses the liquidation option – which would be unlikely due to the market price floor explained above.

TOKEN DISTRIBUTION AND STRUCTURE

There will be no token creation, minting or mining after the ICO period. Tokens will be transferable and tradable once the ICO is successfully completed and the underlying assets have been acquired. Investment can be made in ETH, BTC or LTC. The USD equivalent amount of any ETH, BTC or LTC invested will be locked in at the time of investment according to market rates and considered the  participant’s contribution.

TRADING STRATEGY

As SMARTER THAN CRYPTO’s strategy is unknown and a full investment constrained is not forced, front runners will have no information to anticipate portfolio re-allocations. Additionally several strategies will be employed to mitigate this risk:

1) Cryptocurrencies will be sent to the exchange 1-24hrs in advance of the trade so that traders cannot follow the hot-wallet to know exactly when a purchase or sale will be made. A weekly rebalancing window affords sufficient time to do this.
2) Trades will be executed over multiple exchanges.
3) Trades will be executed at varying times within the rebalancing window to prevent predictability.


For more information, visit the Website or read the Whitepaper.

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