1. New Developments
2. What Shall We Call It?
3. Does Your Project Need Funding?
4. New Website
5. Financial Report
1. New Developments
Robin Hood is a project developing new tools of finance, giving everybody access to finance and its powers. Why? Because finance has a power to open new possibilities. We just haven't had an access to its operating system. This is the raison d'etre
for what we are doing. The cooperative form itself is one innovation here, and combined with the use of the Parasite algorithm we have become a wealthy and strong cooperative, with a growing membership and visible presence. We are not only about "wealth management" but essentially about making something new possible.
Now we are launching another innovation: a share & member management system on the Ethereum blockchain. This new technical platform makes possible many new operations and services - it gives us all something like new superpowers! - some of which will be rolled out immediately once the system is ready, and some of which will take more time to bring to full fruition.
The development work has taken place within the rocky waters of the wider Hedge Fund sector. 2015 saw many Hedge Funds wiped out entirely
(with some reports estimating the number at more than 1000). At the same time, in the AGM we decided to use funds (max. 50 000 €) for the Robin Hood development work. These two things together, the use of coop funds for development and the challenging market situation, have led the Net Asset Value of our portfolio in the negative. We operate a lean and mean organization with minimal costs and in the coop model there are only two sources of resources for the coop itself: membership fees from new members and the assets of the coop. This spring we have used money from the common pool for the development work, which means that the NAV is lower than it would be purely on the basis of the performance of our portfolio. On the other hand, what we get from this is something extraordinary: new financial tools and new opportunities for all members that otherwise would not have been developed at all. Thank you belongs to all the members for making this possible.
We have engineered the world's first asset-backed crypto-equity.
2. What shall we call it?
With the new system, the shares of the coop will be issued as cryptographic tokens on the blockchain.
The shares are booked and paid for in a simple interface; in fact, from the user's perspective it will be much more simple and easier than the current system.
But we really have engineered into existence a new financial animal: when the "coop share" becomes digital it gains all kind of new powers and capabilities, it starts to do new things, like it became alive, and mutated into a new kind of creature! We are thinking that it is no longer just a "share" but, in fact, your first own economic pet.
Ultimately, when all the ne features are rolled out, it can:
- manage your assets, and get fatter, or more numerous
- chip away portions of itself as money, can turn into money
- participate in projects you have chosen
- follow your instructions in sending money to suitable projects
- represent you, act as collateral
- communicate with its sisters and brothers
- join with other pets into a pack that
- can jointly “hunt together”
- can start a project, pool and allocate resources
- patiently keep on, working your money, with no fatigue
- can be retrained
- can multiply, with or without mutations
But what should we call it?! Something so special requires its own name.
In terms of finance, we are talking about a first generation Collateralized Equity Note: an equity note, because it is issued to represent a claim, and collateralized, because it is backed by the portfolio of stocks of the best companies in the world. Or we could say that it is an Asset-Backed Crypto-Equity: crypto-equity, because it is registered and managed as a cryptographic smart contract, and asset-backed, because it is backed by the common assets in our dynamic portfolio.
Last year, in the various stages of mulling about the idea, names such as HoodNote ('Hoodie') and RobinHoodCoin were floated. HoodNote has the advantage that in "note" it is explicitly connected to the long history of issuing notes, from the Dutch East Indian Company onwards. And of course, we love the Hood, which is the place where things happen and where our new financial creatures live. On the other hand, RobinHoodCoin points by "coin" towards the shared DNA with cryptocoins. The shares to be issued on the blockchain are not a currency, but their technical architecture as tokens on a blockchain is similar to cryptocoins.
Hoodie? HoodNote? HoodieGotchi? RobinHoodCoin? Robin Hood Asset Management Cooperative's Asset-Backed Crypto-Equity? RHAMCABCE?
Let's get the ideas & discussion rolling.
3. Does your project need funding?
It is again time for the Robin Hood projects.
This year we will do even something better than just invest money to interesting projects. We will offer for the chosen projects the beta-testing of new kind of P2P financial tools which people and projects can use themselves to finance their projects!
So we are again looking for interesting projects that need funding. If you have one, let the project team know. More detailed information coming soon, but you can already write to email@example.com if you have an idea for a project, especially one that has existing social and trust networks and is innovative in how it engages people
If the digitalization of the coop share is the first, and the member-market for selling and buying shares is the second, then opening up of a digital space where people can come together to create finance themselves is the third step of our blockchain operation. The new network technology will produce a radically different economy.
4. New Website
During the writing of this newsletter our website went down, which brings into sharp focus the fact that in connection to moving on the new blockchain system, we need a new website. So let’s set up a task force for doing that.
We need people for webmastering, graphics, developing the financial graphs, etc. And also ideas of what there should be, in addition to the stuff that already exist on the old site.
Who is interested?
5. Financial Report and the Shadow Parasite
A financial report and exciting development news from Sakari:
"We know we are behind indexes this year, but that is the choice Parasite recommends: the best investors in the market are divided. Some of the best see another recession coming, some see new highs ahead. Of course we could be fully on cash. But then we would lose the dividends the best companies pay. So our solution has been to keep the good companies and hedge against major moves down. On average that will keep our position little on the plus side in all conditions.
Here are some factors supporting bull market view:
interest rates are very low and can turn negative as in Europe. Where they go is in the hands of FED.
oil is cheap and should be net positive for economy
consumer sentiment seems strong
employment situation in the US is good
Here are some factors supporting bear market view:
dollar is expensive and forms a major drag for US export companies
revenues of US companies have been coming down big time
China data becomes more and more unreliable
US companies are expensive P/E = 19
this is US presidential election year. Republican candidate will have very low odds to win if economy is looking good. They have a lot of money power and also an interest to make economy look bad.
This is a great situation to introduce a new product: Shadow Parasite. It is the ugly brother of our well-known Parasite: it tries to find the worst stocks in the US market and short them. It makes money, when those stocks fall. At the same time as we launch Shadow Parasite we abandon the hedge position of the original Parasite. After that members can adjust their own position in the market by combining Shadow Parasite and Parasite in the way they want. For example 50% of Parasite and 50% of Shadow Parasite creates a position that goes up in good time and bad times. This is because in good time returns of good stocks exceed losses in bad stocks. And in bad time losses in bad stock exceed losses in good stocks (remember we are short on bad stocks).
This is a necessary step for us in any case: this is an old bull market and markets won’t go up forever.
We are now well over 900 members, 919 at the time of writing this! And with the new exciting tools we will surely hit the 1000 mark soon.
Keep your networks informed, come discuss at the forum and volunteer if you can!