RE: Finally Here: Arbok
The fund itself is not a scam, it is using real equity to profit from High Yield Investment Programs, which are all Ponzi schemes that promise huge returns. Strategically investing in these HYIPs is actually profitable because many of these schemes attract large amounts of capital by paying reliably for a year or more before absconding with the money. By analytically vetting for which scams are the most likely to continue paying, it is possible to realize great profits on a high risk, high reward basis. Furthermore, much of the risk is mitigated by diversification, where the fund invests in a variety of different ponzi schemes so it is not substantially effected by one HYIP running off with the money. Also, extra capital will be re-invested under a different name to benefit from "Affiliate Programs." The fund itself is not a scam, you can watch where your money is going on the blockchain, and you will see it going to a diversified array of Bitcoin HYIP's. I believe it is entirely possible for anyone of moderate savvy to invest using this strategy themselves, but it takes a large amount of time to keep track of all the HYIP accounts, and they may not have enough capital to get the highest return programs. Also, the use of fake accounts to profit from referral bonuses is best accomplished by means of vpn, and many people may not want to buy vpn. Most people also lose money even if they set out with a successful strategy because they start investing emotionally. For these reasons, the use of an anonymous, centralized investment fund could be profitable and worthwhile for some investors.
Essentially what you are trying to do is time the market, which has been shown to simply not work. How exactly are you going to ascertain how long the HYIP is solvent before it stops paying ? The factors that you listed are very vague on how you value the quality of HYIP, the only way to know when the HYIP is going bust is if you are running that HYIP fund. I do not think you understand diversification if you think that investing in different scammy HYIP actually reduces the total risk of your portfolio. All your assets still come under a very specific class which is crappy HYIP funds that face insolvency the moment the price of bitcoin falls below a certain threshold. With the volatility of bitcoin that will happens sooner rather then later. And then using the rest of the money to create fake accounts under an affliate scheme; seriously ? Why use the money to propagate dodgy schemes when the same return could be obtained using legitmate methods. Even if the money is on the blockchain , ultimately the investors are at the mercy of a group of people who will not reveal anything about themselves. You control access to all those addresses and can clean out the accounts whenever you choose to. If you guys are genuine about this you have to show some proof of identity and show some proof that you guys have done this before , that it is a strategy that has yielded returns. If not you end up being just being another bunch of scammy opportunists in the crypto world.
Having the perspective of seeing the people who are working on this and the people who are rightly skeptical, I wish there was a better way to advertise to the public, but there are problems associated with being transparent about any Bitcoin-based collective investments venture (See the prosecution of Eric T. Voorhees). The people who are working on this are working on lots of bitcoin-related projects on the side, as well as, in many cases, full time employment, and in one case, college, and no one is expecting people to blindly invest in a random online posting. For this reason, most of the capital is expected to come from real world sources, initially. The online presence is only meant to be a supplement that gains traction over time. As for diversification, is it better to go all in on one HYIP that could go bust tomorrow, or 5-10 well-made HYIP's that will probably stay up for an average of 40-50 days? If the HYIP's are paying 4% per day on average, plus affiliate bonuses of 3%, you are making roughly 280 to 350% in that 40-50 day period. So what if they run off with your initial investment when your making that kind of return! Such a return certainly cannot be matched by legit investments unless its getting really really lucky with ICO's, but the market is inundated with ICOs right now. Even the most secretive HTF funds like Rentech can't make that much return, albeit managing a lot more capital. It is usually easier to make huge returns with small amounts of capital because exploiting small inefficiencies yields a massive percentage gain.
That maybe but its hard to trust people over the internet when no details are given by them about themselves. If you guys are using your own money, then soliciting investors online is not really required. You could probably try using this strategy with your money , show returns for the next few months. Then map all the transactions that have been using for this fund as a 'history' of your fund and to try and build some legitimacy. Thats the only way I can see you guys gaining any sort of trust right now if your are not willing to give more information about yourselves. Though 25% performance fee is a bit ridiculous even in crypto land. If your fund is going to make as much as you say it is then you do not need to charge that much
That is a legitimate concern, I don't yet project or promise any specific returns because testing of this strategy is still ongoing, and I will post on the results of it every weekend. Success should not be presumed until it actually eventuates. Hopefully, when you see the results of it over time, especially once there is enough capital for the affiliate bonus scheme, the fees will seem low compared to returns.
Yeah maybe just use your own money for now, its the only way I see you guys managing a fund. Then use this page to document what you guys are doing, it will be a slow grind before people trust you with their money, but this is what it takes. If you guys are genuine about this then this is what would be the best way to build trust.