How Crypto Index uses AI for portfolio rebalancing

0:00I'm Ashlyn Addison from event chain for investmentpitch media and FinTech news network and today on blockchain interviews we have Caroline Mateus oh the CMO of crypto index welcome to the show Caroline it's a pleasure to have you here hi it's a pleasure to be here awesome thank you would you please start by telling us what is the value proposition behind

0:22crypto index and how are you guys changing the blockchain industry of course cryptic index is the first and only keep the currency index based on artificial intelligence and their own networks it's one of the most high technology projects nowadays on the crooked currency market the technology Katinas is based on is narrow networks which have been trade on trained on the

0:53entire crypto trade history from 11 exchanges during the last 5 years processing more than 10 terabytes of data in total all these ll put us to which a courtesy of forecast and improve it about 82% which allowed us to predict almost all the highs and lows that have occurred in the market humans last year so everything is based on our neural

1:24network ok algorithm called zorak's which uses more than 200 factors to determine the most promising coins to be included in the index so that's a brief explanation of the project that's awesome that sounds really exciting so I really like what you guys are doing because you guys are using artificial intelligence to rebalance the the portfolio which is very interesting so

1:53do you guys have any insights onto how you're using AI to balance this portfolio oh it's rather difficult to answer this question in a few words the whole technology is explained in our white paper as we have few occasional videos where our mathematicians are showing how it really works as technology is really

2:22very difficult and it has been developed for a few years so it's explained it simple for all the cryptocurrency integers I tell you that the coils which are included in the cryptic index are selected and balanced by specially trained set of neural networks as I mentioned previously and an algorithm

2:49called zahrk's the system is analyzing for millions of trade transactions from thousands of currents every day also jerks examines signals from social media from github from telegram and that's a huge amount of data and very datatex dated data from social media which is analyzed every day so after after each

3:21zerks examines signals which are important finds promising coins analyzed is possible changes in France and then from the index structure yeah I know artificial intelligence algorithms are very complex so thank you for that basic understanding of that so would you guys say that indices that represent multiple coins are necessary for the mainstream adoption of cryptocurrency why or why

3:50not I think that at this stage of the current market development of indices is something that is really needed victimization of the crypto markets has increased more than 50 times if I remember right you in the last five years and the number of course nowadays is more than 2000 sets crazy amount and

4:18right now for common krypton to ask for an average person it's absolutely very well to learn about all these coins to read all the news happening and of course to examine all the transactions happening on the exchanges and of course some tool is really needed and when

4:48traditional Google file system went through the same development stage creation of stock indices was a major milestone so the formation of cryptic arts index is next logical step in adoption of the credit Oh awesome awesome so so do you think that I think the the index itself you know needs to

5:20be tested for six months or a year before it goes out into the public did you guys do testing and how did you test the performance of the index compared to the market index one hundred has been in life testing since October 2017 so all more than one year and it we have also our MVP our platform crypt index dot and

5:54I and there you can see and of course not only you but everyone everyone can see the results of zorks will work and really our algorithms show the ability to successfully select goals for for every testing for this testing period and it shows that it can be the Bitcoin and outperforms total market utilization

6:23by uh by up to 80% and it sounds very interesting that's great so as a business crypto index has to manage these indices you know for investors what is the business model for crypto index sorry taking a management fee part of the profits how does the business revenue generation work it's the most important in our business model is our platform

6:52which I'll describe a bit answering this previous question we'll be developing the platform right now yes it's in life tasting mode so all the information is open to everyone but when it starts to work not in testing mode and and new features will be in it of course

7:20so we'll be charging subspecialty and there will be a payment for every additional feature we are not taking a percentage of profits from the returns because it's not our story and the heart of our project is a platform where everything connected to our index is oryx of the factors the list of coins forecast and everything will be

7:51available that's awesome that's great to hear actually so as you guys develop out past the live testing and the platform is working do you guys have a strategy for marketing and growing the community for criminal index of course of course we have our strategy nowadays market is big more difficult than it was for

8:20example one year ago when there was so much hype and people were so push if in their hopes about the market and so on but we need to work on the market that we have right now oops a lot of people just jump right into the industry when they see the prices going up but it is known by a lot of the professional traders that it's

8:47very possible to still make profits in a bear market as well but I could see how having the price of Bitcoin in aetherium rise brings traction to all projects so let's hope that the market has an uptrend in 2019 also but the current station is really good because now when it's so you know we can say some kind of crisis it brings some professional

9:17instruments such as indices for example and professional players to the market so we of course believe in the market and that everything will link to development development what about our strategy of course we want to grow our community we are interested in rather wide range of auditoriums we are interested in people who have never even tried to buy crypto we want

9:50for people also to buy crypt the index because I see X 100 is top hundred coins in one heart and it's the pro tool for krypton you bees for crypt integers also we are in discussion with a few pals because they are also they also need need such an instrument we use approved track record which in this is candy

10:19that's awesome yeah I could see how attracting people who are just getting into cryptocurrency would be advantageous because it only makes sense that with all of the options for them to choose from there's so many coins as you mentioned it's almost impossible to learn about them all that investing in indices that represents certain portions of coins in portfolios it makes it a lot

10:42easier so what is the road map for crypto index look like in the next six months what is this is it going to be live what are we looking at coming into 2019 okay so right now we have our MVP and as I mentioned previously contain index dot a also we're planning to launch our product platform which is under development

11:09right now very soon we hope it will be in the end of ISIL or even earlier its it will be very good for the credibility of the project right now it's only for our team but we want to share and stand firm with everyone and also we are planning to create indices along with partners a well known

11:37stre stantly partnership with LDX and intuitive exchange and during the next six months we want to develop further the communiques platform to add new features to create new indexes of course our algorithms our works will be updated and approved and we want to add new factors to the model by the way right now in our model we have more than

12:05200 factors when we launched our project it was in in spring we had only 17 so and I just want people know that while we're working out our marketing strategy on our pair activities and so on our team of ultimate issues is working every day on zorks to prove the model and make

12:34it perform even better that's awesome it sounds like you guys have made a lot of progress since the spring so that's great to hear so as as you guys develop with the platform you're getting ready for the the main launch what is the best way for people to follow along with the progress get involved in the community early so that they can get on crypto index when

12:55it comes out I think so is that the best way is to follow us on social media such as telegram where have a very very interesting group on Telegraph where all the updates are all us we have very interesting interviews articles with our team members up on the station ellipticals market bus in six months we'll be posting forecasts or

13:24Dirks for the next month it's it can be very interesting information which is absolutely free right now we'll share it with all our community and I think it will be interesting to follow as a medium on video on our blog where we've also got a very useful content for every equipment is that awesome yeah I will leave a link to the crypto index

13:54telegram as well as the medium in the description box below and that's all the time we have for now I was a pleasure speaking with you Caroline I'm looking forward to seeing how the crypto index platform grows and let's follow up in the coming months when the platform is live and we can see how the project has flourished so thank you for your time thank you so much for your time also it

14:15was pleasure do it opens you auditory really thank you for your attention you