Swiss-based crypto trading platform First Global Credit (FGC) announced they are developing a passive investment fund which will seek to invest in promising startups in the public blockchain space. The company with CEO Gavin Smith spearheading the project is drawing up plans now that will raise funds to be placed into an investment pool to trade an assortment of the world’s leading cryptocurrencies.

The project and ICO are known as the Ai-Coin and will be incorporated in Singapore.

Gavin Smith said investing and trading in leading cryptocurrencies “will form the first part of the pool’s profit generation strategy.”

The investment model being designed will trade these coins and, at the end of each month, FGC will take 50% of the profit and plow that back into the trading pool to increase the money available to the models. The second part of the investment strategy will see the other 50% of profits set aside to be used to seed new companies in the public blockchain space.

First Global Credit will create a forum where founders of interesting public blockchain companies can present proposals.

CEO of First Global Credit Gavin Smith regarding the new project said:

“We will utilize the combined expertise of our investors which we believe will allow us to use the “wisdom of the crowd” effect to guide the investment pool into promising startups and create exceptional returns for the pool over time.”

“The beauty of this approach is that the system based trading generates the capital which is then used to invest in the riskier proposition of seed startups. So the investors themselves should benefit from the cryptocurrency trading strategy and also not have to reach into their pockets to benefit from the potential of early stage company investment. There is also the added benefit that we are giving opportunities to public blockchain companies which have been previously limited to relying on VCs and fintech accelerators who tend to be interested in funding banking / private blockchain comanies for their investments.”

“Like I said, it’s early days – we have a live account that has been trading the first part of the plan – the system based cryptocurrency trading. When we are happy with the performance achieved by these models we will consider the structure of the investment pool – whether open or closed to subsequent investments and how the voting mechanism for company seed investment should operate.”

“We are truly living in a period of massive change where individuals can influence the investment choices made on their behalf – I believe the blockchain provides that mechanism and those opportunities.”

Details on AI-COIN

AI-COIN is an altcoin holding an Initial Coin Offering (ICO) on the 19th of June that differs from many of the ICOs currently available today. These coins are being used as a mechanism for crowd funding new ideas with significant potential. The value of these coins will ultimately lie in the founder’s ability to execute a single strategy that brings a new service to market. If that strategy is a success, the coin holders will benefit from holding the coin. If the founders fail to execute their plans, the coin value could fall to nothing.

However, AI-COIN is based on a two-stage strategy that immediately generates a return for AI∙COIN coin holders. Further, this strategy not only benefits AI∙COIN holders but the public blockchain ecosystem as well.

Stage 1: Cryptocurrency trading
First Global has been working with a talented team of artificial intelligence developers to create a cryptocurrency trading strategy based on a series of models that profitably trade the 7 cryptocurrencies with the highest market cap. The live trading results can be viewed on the developer’s blog site – ouraibot.org.

One hundred percent of the assets generated through the ICO will be used to execute a strategy based on the trading decisions of the AI, which is known by the code name Wintermute. Then, to ensure the best possible entry price for positions, we will use the existing First Global Credit hedging software to distribute orders across a range of exchanges.

Half the trading profits will be allocated back to the trading pool to increase trade volume and profit. But it is the allocation of the other half of the profits that make the AI-COIN a truly unique enterprise with outstanding growth potential.

Stage 2: Public blockchain and AI start-up investment
Every quarter, 50% of that quarter’s trading profits will be allocated to an investment pool designated to fund an equity stake in an early stage public blockchain or AI start-up. The decision which company to invest in will be made by coin holder vote. This leverages off ‘The Wisdom of the Crowd’ theory that allows us to benefit from the experience, expertise, and knowledge of coin holders to make the best choices about which companies to take a position in.

AI-COIN will be fully tradable on various exchanges including the First Global Credit platform which will provide an aftermarket for the purchase and sale of the coins. The fact that there will be no new coins issued once the Initial Coin Offering has closed should cause the coin to trade at a multiple of its asset value as the company starts to make trading profits and holds a growing number of equity positions in promise new start-ups.

Existing First Global Credit customers are able to pledge to purchase AI-COINS at a 5% discount to the subscription price by visiting the AI-COIN site, and logging in using your First Global username and password.