FAQ by strategic investors
Can you describe your project in 3 sentences?
We have over 40-combined years in the most advanced electronic trading of financial products in both spot and derivative markets and we have built a proprietary trading system stemmed from years of trading and exploiting the information asymmetry in the American, European, and Pacific Asian markets.
We position ourselves to be a top automated-trading service provider in the world that bridges the gap between the major crypto exchanges and the institutional investors /traders once the floodgate is opened to the managed money in Wall Street, the City of London, and Frankfurt.
What is the project and what needs are met by this project?
We bring a comprehensive professional high-performance crypto trading system to high-volume traders.
We help exchanges meet the needs of the institutional investors and traders: Crypto trading has been in its early-development stage thus far. We are leveraging our experience in high-performance, high-frequency trading and our business relationship with the professional money management industry to help exchanges improve their trading platforms with better trading technologies, professional portfolio management tools and risk-control algorithms. We also help drive large-volume traffic to the best exchanges.
We help professional traders and investors: Offering a real-time Market Analytics service. Besides providing a state-of-art high-performance trading system, IOB champions a unique defensive trading strategy that derives data from PoET and offers a real-time automated trading advisory service to professional investors in all financial markets. We advise our institutional clients to play a self-preserving defensive game at all times while devising a full suite of active offensive strategies that will take full advantage of the market inefficiency ethically.
How and where do you acquire customers?
The institutional crypto trading market is just emerging. IOB currently has access to over 160 institutional clients within our network of partners, sister companies and subsidiaries located in the US, Germany, and the UK.
In the next 6-12 months, IOB anticipates an organic growth of users as the regulatory landscape on crypto custody and crypto ETF approvals becomes more clear, crypto index funds emerge, professional-grade exchange trading platforms become more available as well as an increasing number of products and features being added to the IOB Market Analytics and Smart Trading™ System.
Currently, we have a large professional network and enjoy a word-of-mouth advantage due to our leading position in technology and trading strategies. The cost per new client acquisition is at a minimal at this Phase-I business development stage.
What are the biggest risks that your project are facing? How can we avoid these risks?
Data Loss and hacking:
Data loss due to technical or operational failures and security breaches could cause risks of losses or misuse of investors and clients’ proprietary information and digital assets.
Cybersecurity as a top priority: IOB is committed to investing in the best available cybersecurity technologies, building a team of expert researchers, engineers and talented hackers in this field, adhering to the highest industry standard, and using the best business practice at all time.
Competitiveness and potentially missed opportunities:
IOB operates in a highly competitive market for trading performance measured by short-term results. We may misidentify the winners of the next generation technology and lose the competitive edge we now possess.
Investing in R&D: We must budget a considerable portion of available resources in trading, blockchain development, artificial intelligence, and data science and strive to be future proof at all times.
A global business and technology network: Don’t be complacent and stay up to date by keeping in touch constantly with our subsidiary offices, clients, partners, innovators, and friends in major global financial and tech centers in Wall Street, Silicon Valley, Frankfurt, Paris, London, Shanghai, Beijing, Hong Kong, Shenzhen, Singapore, Tokyo, Seoul, Sydney, Toronto, and Dubai is a way for us to be well informed.
Please provide 3 competitors of your project. What is your position in the market? what is your winning strategy? Please list what you did and the results.
1) Financial transparency blockchain protocol competitor:
- Main competitor: None. There is a void in this space.
- Our position in the market: We are the publisher of a market transparency protocol.
- Our winning strategy: For the first time in the history of financial markets, we’re getting to the bottom of all orders to unveil the completely hidden canceled orders and make them available to anyone on blockchain.
- What have we done and the results: We are in the process of acquiring data, designing the best ways to store, hash and verify the historical all-order financial data, which will not only be applied to the crypto trading data, but also to traditional financial markets such as stocks, bonds, commodity futures and more.
2) Market research provider:
- Main competitor: We consider Bloomberg to be our main future competitor. However, Bloomberg does not have professional-grade crypto trading products yet. Even if they do later, along with their existing traditional analytics and equity trading platform, data and news services for financial companies, they will likely stay away from revealing the market-manipulating orders due to the fear of alienating their existing client base.
- Our position in the market: Market data aggregators such as coinmarketcap.com provide historical price data, the ‘tip of the iceberg’ that accounted to a very small percentage of the executed orders. It is not a full picture of all of the market actions. IOB Analytics mine all the orders, canceled and executed, to provide real meaningful trading intelligence to pro traders.
- Other data and analytics companies such as bittsanalytics.com collect market sentiment data from social media. Their trading advice is largely based on charts and indicators that were developed before the sophisticated electronic trading era (pre-2005) when traders manually clicked the ‘buy’ and ‘sell’ buttons.
- IOB Analytics data and services are for traders with automated quantitative trading systems by high-performance network servers processing a large amount of data that is not meant to be seen as ‘candle stick or line charts and indicators’ for manual human traders.
- Our winning strategy: IOB Analytics help pro traders like ourselves to process and take advantage of the market inefficiency when trading, playing an offensive role. Meanwhile, we also help large-volume investors protect their orders by playing defense with a true market insight, a clear view of all the honest and dishonest orders. Our position and strategy are unrivaled for a foreseeable future.
- What have we done and the results: We are developing our Analytics product categories by collaborating with partners in Wall Street, the City of London and Frankfurt.
3) Algo trading:
- Main competitor: eToro is our main social trading platform competitor. Althogh they are aggressively expanding into crypto trading from their traditional ‘buket shop’ background, their focus is on social trading. They are not directly competing with our algorithmic trading business. We have no visible algo trading platform competition at this point in time.
- Our position in the market: While Knight Capital and Citadel LLC are famous in the traditional algo and HFT trading markets, with the ‘most successful’ ones being hidden and unknown to the public, no one is offering or planning to offer their trading platforms to third parties. IOB will remain one of the very few that will open up their trading system to the public. This gives us a leading position to capture a large public market share and will likely put IOB as an enemy among Wall Street rivals. We believe a large number of pro traders want to have access to our trading technology that they cannot develop in-house.
- Our winning strategy: We have been trading successfully for over 40 combined years in the financial markets, developing HFT trading systems, making our own software and hardware connected with a cross-ocean trans-Pacific dedicated data fiberoptics feed. Our trading strategies are based on far more than the commonly visible ‘charts and indicators’ most traders’ strategies are based on. We dig deep, find and use the mostly hidden data for our trading systems.
- In the blockchain age, we believe deeply now is the time for a much more transparent market practice. We are willing to open up our trading secrets, even though that may offend some of our colleagues in Wall Street, and may cause us to lose some ‘competitive edge.’ We believe it is worth it.
- It is time to end the financial markets as a pure zero-sum game. It is time to truly create value together in participating in the markets and to help more people survive and stay in the markets.
- What have we done and the results: We are porting our high-frequency and quantitative trading systems in commodity and index futures markets to trade crypto markets. In order to make it an open platform where a third-party trader can plug-n-play, and even build their own trading strategies on the platform, we are changing our .exe-based UI into a browser-based user experience. Obviously, the nano-second trading speed does not apply to the crypto trading presently. Our focus for the public system now is on the automated trading, portfolio management, and risk control components.
Where is your team located?
We currently have offices in the US, German and China
Can you provide your funding information?
As we are seeking a strategic partnership and investment, not the full funding of the project, we are offering up to $5 million in a convertible equity stake at a pre-money valuation of $98 million.
How can a strategic investor add value to your project?
We understand the world of blockchain and cryptocurrencies is changing faster than most people realize. The biggest risk for us is losing our competitiveness and missing the boat when the world is changing in a fundamental way that we alone cannot grasp. We need to be part of a strategic investor’s ecosystem to be engaged constantly with the industry leaders, visionary partners, and talented newcomers alike.
Please give 3 most important reasons why a strategic investor should invest in your project?
- We understand the financial markets: A financial market trading place where 95% of the people losing money is not a sustainable business model. We want to help most people accumulate wealth by participating in the markets for a long time. A lifetime client is invaluable to our business and our own IOB Token Ecosystem.
- We have the advanced technology: Our technology can help investors and traders play both defense as well as offense. Through PoET, advanced IOB Analytics and opening up our proprietary trading system to clients, we are building a new financial infrastructure to ignite a fire that will transform the financial markets worldwide.
- We are not short-sighted: Getting the funding is not the purpose of our business. Building a large enterprise that will change the world for the next 50 years is.
What can a strategic investor get from this collaboration?
We can help build a more advanced institutional trading platform: Based on decades of financial investing and trading experience in Wall Street and other major European markets we and our partners have, exchanges improve institutional trading APIs, and add on to features and functions that are vital to stay in business.
We drive institutional traffic to a strategic investor : Through IOB market maker accounts and APIs, we can direct our institutional clients and partners using IOB Smart Trading™ System a strategic investor. We also bring in additional traffic to exchanges through our managed products in a later stage. We help exchanges have a better retention of clients by helping them avoid the typical quick crash-and-burn cycle.
We can provide advanced features and products that can be bundled into a separate professional trading platform for its exchange clients: Over the years, Yale ReiSoleil’s trading team has developed advanced institutional-grade portfolio management tools and sophisticated risk control algorithms that are ready to be deployed out of the box. We are open to offer them to a strategic investor and/or exchange partners for integration. We help exchanges achieve higher client retention rates by making more features available to them.
Access to our regulated financial licenses: Through our investments, IOB has access to a UK FCA-regulated full financial license, several German BaFin-regulated financial and banking licenses, as well as broker-dealer licenses in the US through partnerships. We are more than happy to share the licenses with and help a strategic investor obtain its own local licenses in the US, Germany and the UK, and other jurisdictions.
To be future-proof: Finance and financial markets are changing in more fundamental ways that have not fully been revealed. What has been considered successful may not be profitable in the near future. An investment in IOB is an investment in the future for a strategic investor’s business.
What is your purpose for starting this project?
To change the status quo of all financial markets.
We feel lucky to be alive when the distributed ledger technology is at its early stage of disrupting the traditional financial markets, and we have the understanding and know how to be a transforming force leading that change.
We want to help most financial market participants succeed, to create more value for investors and traders, and to help them stay in the financial market for the rest of their lives.
One of the ways to achieve that is to bring a market transparency protocol to the financial world. Additionally, we want to help individual and institutional investors alike play both offense and defense when they are in the market.
And for the first time in the history of high-frequency trading, we will apply for patents as one of the top players.