predictini Next-Generation Market Intelligence and Prediction Platform for Crypto Trading WHITEPAPER Feb 27, 2018
TABLE OF CONTENTS Executive Summary 3 Crypto Market Overview and Challenges 5 Predictini Architecture 7 Roadmap 10 Predictini Token and ICO 11
EXECUTIVE SUMMARY PREDICTINI AT A GLANCE Predictini is the next-generation market intelligence and prediction platform which is aimed at both beginner and experienced crypto traders. Predictini is the platform which: Offers up-to-date information and data feeds for crypto currencies in the Predictini Terminal Tags crypto news with sentiment and create data feeds with them Captures crowd sentiment using in-platform public or private (on-demand) polls Enable crypto traders to create their own signals and earn when others are using their signals Allows users to define strategies based on crypto-usd exchange rates and indicators, even for crypto-crypto pairs Offers full market data for backtesting and analysis Allows automatic trading using the Predictini Trading Bot The crypto currency market had an explosive growth in 2017 and continues to offer many opportunities, especially with the ever increasing number of Initial Coin Offerings (ICOs). With a current total market capitalization of several hundred billion dollars and more than 1500 digital assets (coins and tokens), it continues to create wealth in record time. For example, Forbes documented two cases of investors who managed to turn initial modest figures of about $8,500 into millions of US Dollars in less than six months. The recent developments in the crypto market caught the attention of many institutional investors. New funds are being created and enter the crypto market every month. According to a recent article, Coindesk, the operator of the largest US-based Bitcoin exchange has reached 13 million users, more than brokerage house Charles Schwab. CME, the world s largest futures exchange, launched Bitcoin futures in December 2017, this movement marking another step toward mass adoption. The crypto market has several unique characteristics: firstly, it is open 24/7, secondly, it has a high volatility, thirdly, most altcoins are traded vs the Bitcoin (BTC) and not directly vs fiat currencies (such as the USD), and finally, the price evolution relies heavily on the crowd sentiment and less on fundamentals. All of the aforementioned characteristics can pose challenges to the individual investor. Monitoring a market 24/7, for example, is practically impossible. Predictini was born from these challenges, issues faced in the day-by-day crypto trading, and offers some unique features in the crypto world. Firstly, the Predictini Terminal (PT), a Bloomberg-like terminal for crypto assets, will offer up to date information about crypto markets, coins and tokens, news, analytics. PREDICTINI WHITEPAPER FEB 27, 2018 PAGE 3
Predictini will automatically read Internet content (news, posts, tweets) regarding crypto currencies and will tag them with sentiment (positive or negative). Users can also manually add tags, helping our AI algorithm to improve. For contributing to the platform, users will be rewarded with Predictini Tokens (PRD). Predictini s advanced analytics features will allow traders and investors to monitor and analyze the crypto assets in real-time, using additional data streams such as the evolution of the number of wallets / transactions, number of views of the announcement thread on bitcoin forums, number of telegram users etc. Technical Analysis (TA) indicators will be computed in real-time and made available for charting and analytics. Ultimately, all these data feeds will allow even novice traders to create and validate trading signals and strategies. Predictini Terminal will be highly customizable, allowing users to create their own portfolios or token lists, alerts based on the available indicators etc. Crowd sentiment can also be captured using the native poll functionality. We will run periodic polls to capture crowd sentiment on various aspects (such as price, attractivity of ICOs) and voters will be rewarded with Predictini tokens. Additionally, the on-demand (private) polls functionality will allow any Predictini user to run his own private polls in real-time for a small fee that is paid in PRD tokens. Secondly, Predictini is a SaaS (Software as a Service) crypto market prediction platform suitable for both novice and experienced crypto traders and investors. The platform is also highly customizable, allowing every user to benefit from advanced algorithmic trading based on machine learning while implementing his or her own trading strategies. Furthermore, traders can adapt the predefined signals or develop new strategies using a user-friendly interface. All of these strategies can be back tested or activated in a simulation mode over a specific period of time. Finally, the right strategies can be activated in live mode using the Predictini Trading Bot. Thirdly, traders can use the trading strategies created by developers for a fee that will go to the developer. Developers can use the Predictini SDK to develop algorithmic trading strategies in Python. By doing so, they are rewarded with Predictini tokens (PRD) and can earn additional PRDs when their algorithms are used (i.e. purchased) by traders. To achieve these objectives, Predictini will conduct an initial coin offering (ICO). PREDICTINI WHITEPAPER FEB 27, 2018 PAGE 4
CRYPTO MARKET OVERVIEW AND CHALLENGES Year 2017 changed the crypto market significantly, both as market capitalization and number of investors. For example, Coinbase exchanged has seen a huge increase in the number of users: from 6 million users in March 2017 up to over 13 million at the end of 2017, and it is expected that this trend continues in the following years. Given to the steadily increasing number of crypto users, we expect a significant percentage of new crypto users to invest in initial coin offerings (ICOs) and trade crypto currencies on a current basis. We also expect an increasing number of private and institutional crypto investors to turn their attention to algorithmic trading platforms, such as Predictini, considering the crypto market challenges that we outline below. 24/7 TRADING A first challenge, especially from an individual investor s point of view, is that the crypto markets (exchanges) are open 24/7, so a continuous manual monitoring or trading is not possible. New crypto currencies and tokens are issued every month, many of them through ICOs, on a market that is not yet regulated. Also, some of the crypto exchanges are immature and may experience problems that restrict their availability, especially during market crashes. DEPENDENCY ON BITCOIN Currently, most of the crypto currencies are traded versus Bitcoin or Ethereum. Therefore, a trader looking to maximize his portfolio value in USD, will need to monitor both BTC/USD and the currency pair that he wants to trade. Obviously there is an acute need to address this particularity - a trading strategy for crypto currency XYZ (XYZ-BTC) should involve also monitoring the exchange rate of BTC-USD in real-time. Ultimately, most of investors are looking to maximize their gains in fiat currency. Predictini will address this issue by offering additional real-time data feeds with the parity of the crypto currencies to the US dollar (and possibly other fiat currencies such as EUR or CNY), so one can create a trading strategy for the XYZ-BTC pair which is based on technical analysis (TA) indicators for XYZ- USD currency pair. This is a unique feature not present in any other trading signals platform. CRYPTO VOLATILITY In a very short period the volatility of a crypto currency can be very high PREDICTINI WHITEPAPER FEB 27, 2018 PAGE 5
therefore only a automated platform like Predictini can give the right signals at the right time and apply them in order to profit during such short periods. While exhibiting high volatility, many crypto currency trading pairs can have relatively low trading volumes, so even getting the correct market entry signal is only a part of the story the trader also needs to adjust his orders both in number and total volume aspects that are very difficult if not impossible to be performed manually. Predictini s Market Replay Technology will allow traders to backtest their strategies in a virtual environment similar to a live exchange - they will have access to full market data (price / volume / order book). CRYPTO WHALES AND THEIR INFLUENCE ON THE MARKET Compared to the foreign exchange (Forex) market, crypto markets are small and unregulated, so it is possible to influence the market direction using relative small amounts of crypto currency. The so-called crypto whales can create pumps on smaller markets. With the market being open 24/7, it is difficult to benefit or protect from these pumps and dumps by only performing manual monitoring and trading. We outlined above what we consider to be the most important challenges regarding trading in crypto markets, and it becomes very clear that a platform that brings intelligence and automation in trading is a must for every crypto investor or trader, novice or experienced. PREDICTINI WHITEPAPER FEB 27, 2018 PAGE 6
PREDICTINI ARCHITECTURE Predictini is a SaaS (Software as a Service) platform that will enable investors and traders in crypto currencies to take better decisions based on data and using artificial intelligence (AI) and algorithmic trading. Users can gain access to the system by staking 2000 Predictini tokens (there will also be a free tier for basic accounts - with limited functionality). The tokens will initially be sold during the token crowdsale and will be available on several exchanges. Therefore, a crypto trader wishing to use the Predictini system must first acquire PRD tokens from an exchange, before enrolling on the platform. Predictini Terminal is the main user interface, web-based. The terminal can be used to access the market data streams, tagged news, polls, trading strategies etc and it will also offer customization features. Developers and data scientists can use the Predictini software development kit (SDK) and the data feeds supplied by Predictini to create algorithmic trading strategies using artificial intelligence (AI) that can be sold on the platform. In other words, users can display the available trading strategies for each currency pair with their past accuracy (performance) so they can decide to use one or several of them for a periodical fee (paid in Predictini tokens). The platform will be aimed at both novice and experienced investors (traders). New investors can rely on predefined trading strategies and adapt them, while learning new concepts and developing their trading skills. Advanced traders can make use of all the features, create complex trading strategies based on technical analysis indicators and algorithms developed by data scientists. CRYPTO CURRENCY DATABASE The Crypto currency database will offer information about the existing coins and tokens, initial coin offerings (ICOs), crypto exchanges and will be tagged with specific tags. Users can also classify the assets by assigning their own private tags that can be used for example to apply a trading strategy only to the tokens with a specific tag. NEWS SENTIMENT DETECTION USING ARTIFICIAL INTELLIGENCE The Predictini Web Crawler Module will read the news/postings regarding crypto currencies (on the relevant sites and forums) and will pass them to the Artificial Intelligence Engine. Using sophisticated artificial intelligence (AI) and language processing algorithms, the engine will determine the sentiment (positive/neutral/negative) and also classify the content by assigning specific tags (such as Ethereum, PREDICTINI WHITEPAPER FEB 27, 2018 PAGE 7
ETH if the article refers to the Ethereum token). Predictini will maintain feeds containing the meta data of the articles; these feeds can be visualized and used in the trading strategies. For example, in addition to a technical analysis indicator, a user can decide to invest in Bitcoin only if the average sentiment in the last week was positive (for news/postings tagged with the Bitcoin tag). Users can also tag content with their own sentiment and tags. Predictini will gather crowd sentiment also through polls. MARKET DATA & DATA FEEDS Predictini will gather trading data from crypto exchanges in real-time using the application programming interfaces (APIs) exposed by the exchanges and make the data available to the user in the Predictini Terminal. Standard technical analysis (TA) indicators will be calculated on an ongoing basis and are available in the Predictini Terminal for both analysis and trading strategies creation. The platform will also calculate additional proprietary indicators, like Popularity Index the percentage of users that incorporate the token in their strategies. To assist the trader in taking the right decisions, Predictini will employ additional data feeds such as: - Evolution of number of wallets / transactions (number or volume) for crypto currencies and ERC20 tokens - Evolution of number of Telegram users in the Official channel of a crypto project / ICO - Number of visualizations of the main ANN thread in the Bitcoin Talk forum. PREDICTION ALGORITHMS MARKETPLACE Predictini will allow developers and data scientists to create algorithms in Python and sell them in the marketplace. Once developed, a market prediction algorithm will be evaluated automatically based on past data and performance in real time and if accepted, the author will receive an initial reward in Predictini PRD tokens. These accepted algorithms will be listed in the Predictini Marketplace so that other users can purchase the right to use them over a period of time. In this way the algorithm developers can earn additional PRD tokens. For example, Alice develops a prediction algorithm for Ripple (XRP) that delivers 70% accuracy and make it available for a fee of 20 PRD tokens per week. If 120 users purchase the right to use it, Alice will earn 2400 PRD tokens (minus the platform fee, needed to cover the operating costs such as the processing power needed to calculate the algorithm in real time). At the initial ICO exchange rate of 1 PRD = 0.5 $, this means that Alice can earn up to $1200 per week (minus the platform fee). PREDICTINI WHITEPAPER FEB 27, 2018 PAGE 8
TRADING STRATEGIES AND SIGNALS Unlike other platforms that deliver the same trading strategy to all its subscribed users (in the form of market entry/exit signals), Predictini allows any trader to adapt existing strategies or develop his/her own strategy based on market data, sentiment indicators, Technical Analysis indicators and prediction algorithms. The trading strategies can be defined and managed using a web interface (very good for novices) or using an English-like language - for experienced traders. Once defined, a trading strategy can be back tested on past market data or simulated over a future period of time, before being used in real trading. ALGORITHMIC TRADING USING THE PREDICTINI TRADING BOT The trading strategies developed in the system can be applied manually (the user can choose to be notified in real-time by various means - such as Telegram or email) or processed by the Predictini Trading Bot (PTB). The Trading Bot will be a stand-alone application running on Windows or Linux that can be installed on user s computer or on a server/ virtual private server (VPS) and can apply the trading strategies created by the user. Access to the crypto exchanges will be made using locally installed API keys, so no exchange passwords or access keys will be stored on the Predictini servers. The Trading Bot will operate in asynchronous mode allowing a user to trade multiple pairs / strategies at the same time and will communicate with the Predictini server using encrypted channels for maximum security. PREDICTINI WHITEPAPER FEB 27, 2018 PAGE 9
ROADMAP Being such a complex project, we will develop and release the modules gradually, therefore we have defined several milestones for the Predictini platform. Development of the third phase features (algorithmic trading and marketplace) is subject to ICO financing as described in the Token Sale section. In addition to the major versions listed below, we plan to add more functionality as the platform evolves. PREDICTINI ONE Q3 2018 Features in this release: Predictini Terminal - Basic functionality Free plan Real time market data from several exchanges AI News Sentiment Analysis (first version) Crypto Tokens Database PREDICTINI 2 Q4 2018 Predictini Terminal - Full functionality Paid plans Technical Analysis Indicators Trading Strategy Module: definition, backtesting, alerts Additional data streams from exchanges / other sources PREDICTINI 3 Q2 2019 (*) to be implemented if more than 4,000,000 USD are raised in the ICO Algorithmic trading using the Predictini Trading Bot SDK and API for Developers / Data Scientists Prediction Algorithms Marketplace PREDICTINI WHITEPAPER FEB 27, 2018 PAGE 10
PREDICTINI TOKEN AND ICO The Predictini platform will have an associated utility token, with the symbol PRD. The PRD token can be used to: Access the Predictini platform by staking a certain number of tokens (2000 PRD for the standard plan) Purchase services and subscriptions within the platform (such as trading strategies, polls) Reward contributors (authors, developers, voters) The PRD token is ERC20 compliant, issued on the Ethereum blockchain. We plan to list the PRD token on several exchanges so it can be freely traded. The majority of the issued tokens (75%, respectively 15,000,000 tokens) will be offered for sale during the pre-sale and token sale. TOKEN STRUCTURE A total number of 20,000,000 PRD tokens will be issued. The distribution of the PRD tokens is as follows: 15,000,000 tokens (75% from total) will be sold during the pre-sale and sale. The unsold tokens will be burned. 2,000,000 tokens (10% from total) will be held by the company to incentivize the contributors in the platform 2,000,000 tokens (10% from total) are reserved for the founders and team (24 months vesting period with a 3 months cliff) 1,000,000 tokens (5% from total) will be used for marketing, bounty program and advisors. The token sale base exchange rate is 1 ETH = 2000 PRD tokens. However, due to the fluctuating exchange rate of ETH/USD, it is possible to adjust the rate before the pre-sale so that 1PRD=0.5 USD. The exchange rate announced before the pre-sale will be locked throughout the entire token pre-sale process. Similarly, it is possible to adjust the rate before the token sale. The exchange rate valid for the token sale will be announced on our website and will be locked throughout the token sale. The contributors will receive their tokens within 10 days after the sale has been closed. TOKEN PRE-SALE The PRD token Presale will start on March 1, 2018, 10:00 GMT and will end on March 25, 2018, 09:59:59 GMT. The transfer instructions will be sent by e-mail to the investors who opt-in using PREDICTINI WHITEPAPER FEB 27, 2018 PAGE 11
the form on our website. The pre-sale is limited to 4,000,000 PRD tokens and the price per token will be discounted (30% discount). The minimum investment in the Presale is 0.5 ETH. As an additional benefit, contributors with more than 10 ETH will have the right to access the platform (standard plan) for free. This special offer is limited to the pre-sale. TOKEN SALE The Predictini Token Sale will start on April 2, 2018, 10:00 GMT and will end on May 15, 2018, 09:59:59 GMT. Up to 15,000,000 PRD will be offered for sale at the following discounts from the announced base price: Day 1: 20% discount - limited to 3,000,000 PRD Day 2-5: 10% discount - limited to 5,000,000 PRD Starting with Day 6: no discount will be offered. A hard cap of $7,500,000 is set up for the token sale, so that if this limit has been reached before May 15, the ICO shall be terminated by anticipation. KYC/AML VALIDATION Participants in the Pre-sale or Sale must undergo KYC/AML process by joining the Whitelist. For investors with contributions below 5,000 USD there will be a light KYC process where personal information will be required, such as first and last name, gender, date of birth, nationality, country of residence, passport/national id number. For investors with contributions over 5,000 USD we will have a full KYC process where an additional scan of the passport or national ID card will be required. OTHER RESTRICTIONS Residents of USA, China, Hong Kong or Canada are not allowed to participate due to regulatory concerns. FUNDS ALLOCATION The projected use of the funds raised in the token sale is the following: 60% - Research & Development of the Predictini platform 20% - Operations 15% - Marketing 5% - Legal / Advisors PREDICTINI WHITEPAPER FEB 27, 2018 PAGE 12