- RIALTO.AI December AMA Session Answers
Dear community, thank you for participating in the last AMA of 2017. We are looking forward to fulfilling the development roadmap in 2018, starting with the launch of RIALTO.AI platform where every XRL token holder will be able to use selected trading algorithms and manage his funds.
Q1: Do you have plans to make use of arbitrage opportunities in Asia? Especially in Korea prices differ vastly from western exchanges.
We have been discussing a potential partnership with two major exchanges in South Korea, but so far there has been no feasible legal solution for utilization of the trading differences on a large scale, especially related to the fiat rebalancing challenges between South Korea and Europe.
Q2: Last AMA you mentioned that the bot was only running for about 9–10 hours a day and had to be fully monitored by a human during this time. At what point do you expect to collect enough data and statistics etc to have the bot run by itself 24/7 under minimal supervision? Or if this is not possible, do you plan on having someone watch it during a night shift perhaps so it is running for a longer period? Also, relating to this, at what point in the future do you foresee a full utilization of the DAP? It’s been a couple months now and it is still under 25%. The profits we have been seeing have been seeing thus far have been somewhat lackluster considering the amount of time the arbitrage bot has been running and now that the trade bot has been added there seems to not be a positive increase in trade frequency or profit. In summary, do you have a timeline for when rialto will be running at its max potential?
The running time of the bot is not limited to the collection of additional data or statistics but can already run automatically. The monitoring is often necessary due to a failure of requests on the side of exchanges. Two examples:
- Transfer of a selected cryptocurrency not booked by the receiving exchange causes the unbalance between the expected amount of cryptocurreny in trading and the actual amount.
- Downtime of Ripple or other specific exchange causes the need for hedging (neutralizing) potential open positions at the time manually.
Given the increase in the USD value of the DAP, we do not see the possibility of exceeding the 75% utilization before Q3 2018. With the platform launch, users will be able to manage allocated funds freely e.g. withdraw or store unused funds.
Q3: TOKEN HOLDER PROTECTION — Given that the team’s tokens are due to be unlocked in January and the team has insider information on the performance and strategic partnerships and discussions which may affect the token price, are their any safeguards and/or mechanism which will protect ordinary token holders that gets extremely limited information on a need to know basis? I believe your answer would make comparisons to other ICOs, however other ICOs that has actual results or the prices are increasing so this question is probably less relevant for them. However, given that the profit has been dismal and the prices of XRL has fallen nearly 3x from its highest point, as a result there is a genuine need to address whether the team will dump the tokens given that they have first mover advantage. I m less concern with the team buying more tokens when they know something good is to be announced as it is unlikely to hurt the XRL prices in the short term and I believe we also want the team to do well with their investments, but is genuinely very concerned with dumping at price point.
RIALTO.AI has an internal policy for managing tokens in possession of team members which is designed to ensure the integrity of XRL trading and prevents market manipulation or price dumping. Majority of the team also voluntarily extended their sell restrictions.
Q4: TIMEFRAME FOR IMPLEMENTATION OF EXCHANGES — If the tweet https://twitter.com/RialtoAI/status/880419628387897345 contained misstatement then I believe some contributors invested in Rialto based on these estimates (I certainly did and recommended a few others to contribute as well). So given that token holders may have expected 80–120 BTC profit, the question is what is the expected timeframe in achieving full implementation of all exchanges?
We are currently at 35% utilization regarding the trading time and 40% utilization regarding the suitable trading exchanges out there. We are aiming to double those numbers in 2018. The indication of return is still accurate given the dollar value of BTC at the time and assumed full utilization of the DAP.
Q5: How does Rialto make sure that it’s compliant with current (and future) laws and regulations? Rialto is dealing with fiat and crypto currency and you have to deal with ‘dividend payments’ to XRL holders/investors. So I would expect that (now or at least in the near future) some KYC and other regulations might be applicable. What are Rialto’s thoughts on this and how will you deal with this?
Until the end of the January 2018, registered users will be able to access RIALTO.AI platform which is fully compliant with AML 4th EU directive. Once the platform is launched, there will no longer be dividend payments since every individual user will create profit by using RIALTO.AI algorithms and trading strategies with his proportionate share of DAP. The user or more precisely the XRL holder will manage his own funds that are part of RIALTO.AI DAP. The platform design, available functionalities, and user guidelines will be introduced in the Medium blog post next week. You are invited to follow the shared updates also through other social media channels. Please use only our official channels and do not use any third party links or share your data through other potentially similar sites.
Q6: When you say 100% of the profits are distributed, does that mean revenue from trading minus salaries for founders/employees, rent etc, or are you using your share of the XRL tokens to to pay for salaries and upkeep? If the former, will you be transparent about how much salaries and upkeep are when you release your quarterly reports?
Currently all operational costs (e.g. salaries, office rent, software and hardware expenses etc.) are covered using the allocation for development and not from P/L, this will remain so for in the foreseeable future and at least until 2019. Should this change at some point we would communicate it in an open and transparent way. At this stage, the operational costs will already be as optimized and efficient as possible. We are aiming for maximal automatization of business processes; therefore the headcount will be reduced substantially in 2019.
Q7: Are the five exchanges you are trading on fully operational? When will additional exchanges begin the testing phase? Is the AI trader bot limited to these same exchanges?
We have two development environments. The first one is a deployment environment which is the main algorithm connected to 5 exchanges that utilizes 90% of the deployed assets. The second one is a test environment that represents the algorithm where additional exchanges (currently 8) and additional cryptocurrencies (currently 8) are being tested. Once the tested cryptocurrency or exchange passes the test criterion, it is deployed into the main algorithm.
The developing AI trade bot can be deployed only on one exchange and is not interconnecting exchanges as part of its strategy in contrast to market making.
Q8: PREVIOUS PROFIT FORECAST — Is Ryan Cordell who posted this tweet https://twitter.com/RialtoAI/status/880419628387897345 with the official Rialto account an employee or was employed by Rialto? Do the team now consider his statement on the profitability that should be generated in the 1st month of trading (i.e. November 2017’s) a misstatement? Yes or no answer is sufficient.
Ryan Cordell was a very active member of the community and proved helpful also to other members by providing answers and sharing guidelines. He was not compensated or anyhow employed by Rialto. Please find the answer to the second part of the question under the number 4 answer.
Q9: INSTITUTIONAL INVESTORS — The team mentioned the macro plan is to attract institutional funds to invest in the Company, given the results are not close to the expected 80 to 120 BTCs per month how is the team looking to attract institutional investors money to grow the digital asset pool and generate additional profits?
Given the low utilization of the DAP, there is no current need for including additional assets. We are aiming for consistent track record with minimal drawdowns and robust system reliability. If needed, this would enable us to attract new assets in the future.
Q10: What’s your vision on the position of Rialto in 2022–2025? What is the goal of Rialto and the token with this time frame in mind? No limitation on your dreams, please! Thank you.
RIALTO.AI will be the leading back-end system provider to service many of the cryptocurrency products, some of them yet to be introduced (single access points, trade platform partners, market maker, designated rebalancing of Crypto Traded Indices, ETNs, ETFs, dark pool connections, and data analytics).
- Date of publication:
- Thu, 01/04/2018 - 13:54
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