Digital Assets Power Play is a new platform that will make it easy for crypto traders to build algorithms. This has the potential of creating new opportunities such as more efficient ways to arbitrage or earning passive income by selling strategies to other traders. We recently reached out to one of the founders of the project, Matej Ujevic to find out more.
When did you first hear about crypto and what inspired you to get into it?
I have first heard of crypto during 2012, but at the time I was fully taken by other projects and did not have time to devote my self to it. What really kicked off my deeper interest was one of the regular meetings I have had with Nikola, where he has stirred my interest with blockchain technology and general crypto. This was at around end of the 2014.
Thereafter things have moved quickly, we have devoured as much information as possible, and have decided to start a venture, without a clear vision of what exactly we will be doing, but believing that future is distributed and will rely upon blockchain and crypto technologies. Potential of the technology and its business implications was what draw me to the crypto.
Tell us about the success you’ve achieved with algorithmic trading through Krypto Investment Partners.
We have formed a Krypto Investment Partners at the beginning of 2015, and have spent the next few months further exploring technology and its use cases. What we have come to realize is that there are numerous investment opportunities in such a volatile market, and that we have been approached by some friends and family to take them onboard. Thus what we have decided was to open a minority investment in KIP to the friends and family, whilst providing them with investment into crypto with a lower volatility and correlation than the index.
From most of these investors we did expect feedback, inputs or involvement in the company development, and that is what has happened. As such we have formed our statistical arbitrage strategies and due to the amount of data, number of exchanges have started work on the KIP’s Eye system. We did good, and with the development of KIP’s Eye performance has started to improve. At that point we have come to realize that with the development of Neural Networks and AI we can provide models with time based series data, and that we will obtain an indicator that no one else was using.
We were right, having a Neural Network model with a 69% of time accuracy, we were able to further boost our performance. Overall over period of 25 months we have provided an average return of 8.32% a month, or cumulative return of 523%., with lower volatility than index, and low beta.
What’s your goal with DA Power Play and what problems will it help solve in the industry?
Since beginning of 2017, we have been looking to scale our solution, integrate it with blockchain technology where necessary and provide such a platform to the other stakeholders. The reasons for such a decision were numerous but what we wanted to achieve was to remove some of the obstacles that average traders, funds are faced with when operating within a crypto world. These obstacles range from plain operational ones (opening an account with the exchange, fast and reliable trade execution, strategy and digital investment product definition & development & back testing, trading automation) as well as strategic ones (risk control, asset management, liquidity, strategy co-investment).
What we have come to realize is that we need to offer all platform users an ability to easily create their automated trading strategies, either through drag’n’drop interface, or through more advanced programming language interface, and to offer a single API multi exchange access for a trade routing.
What we saw on the market were certain tools addressing in a singular way certain number of these obstacle aimed at a single type of stakeholder, but not really thinking about blockchain technology (apart from mentioning it and trying to issue own tokens) and how its distributed nature and transparency can create a new ecosystem and distributed economy. As such we have designed our DA Power Play platform based around all possible stakeholders (traders, strategy developers, funds, investors and software developers) and are building a ecosystem based around blockchain transparency and smart contract ability where services can be provided not just by the platform, but also by the stakeholders in a P2P manner for the mutual benefit of each other.
Only by allowing such a community involvement and transparency we believe that platform stakeholders will benefit, by having access to best tools and services for the strategy design, and as such providing themselves or to their investors best possible returns – a power play over the rest of the market participants.
How much of a role do you think algorithmic trading currently has in the crypto markets?
We have tried to obtain this figure from the industry, but it turned out to be impossible. What we see from data collected is that it is currently running at approximately 30%. Knowing that in traditional stock markets it is running above 70% of the market volume, we believe it is going to rapidly increase within a crypto world over coming years. Naturally, DA Power Play will help boost this percentage.
What goals are you planning to achieve for the project by raising funds in your crowdsale?
Our goal is to enable distributed self-sustaining ecosystem between the platform stakeholders, where all platform stakeholders will benefit from its existence.
Naturally to implement such a bold task, we need to globally scale platform and IT solution that will be a mixture of legacy technologies and blockchain technologies, due to speed limits on the blockchain technology.
By having a platform operational and allowing for strategy/investment product opening to third party investors and by opening platform building blocks to the software developers, we aim to establish a marketplaces for such a services and direct P2P transactions on the platform utilizing the DPP token.
Where do you see the crypto industry in 5 years from now?
It seems that industry is approaching a crossroad. It has started almost as an underground movement, trying to avoid the governments or any central control. Distributed is a core value of the technology. But having over recent years attracted plenty of investment, some of it of dubious nature (some ICOs) governments have taken notice and have started to intervene. As over last few months we have been advocating for more transparency and lack of standards within the industry, and looking at the lack of consensus among main industry stakeholders, we are fast approaching an industry wide hardfork.
Part of the industry will certainly remain underground with decentralization as a main aim, whilst as in any industry in order to achieve its full potential more standardization and transparency, and even in some cases government setting regulation in order to clear investment obstacles will be required for the industry to fully achieve its potential.
To learn more about Digital Assets Power Play, join their Telegram group.
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