When there is a conversation about the biggest publishers in the field of science the names nature and science are always included. Let’s imagine that the ongoing blockchain revolution is incubating a publishing house of such caliber. What type of ecosystem would it bring forth and which groundbreaking technologies would it integrate?
Crypto Commonwealth is considered to be one of the most ambitious projects. Their vision is to create a community that incentivizes effort and quality of publications, with the ultimate goal to create a journal as successful as Nature and Science. The project claims to have a strong network of researchers in top universities and plans to invite more of them to join, as well as funding their research in academia. They intend to distribute 100% net profit back to the authors, editors, and reviewers, paying for their contributions in their native token COMM. Excellent contributions will make the ecosystem stronger, encouraging and inviting more people to play a part within as everybody looks for incentives.
Crypto Commonwealth focuses not only on becoming a top tier publisher of all things, crypto or not. It also envisions becoming a digital and traditional asset manager that can potentially outperform BTC and the stock market growth in the long term. Its strategy construction follows the “trilemma in portfolio management”. Under this model, three variables are considered: high return, low risk, and high capacity. Those who have some experience investing in traditional or crypto assets, either in IPOs, ICOs, IEOs or directly in the secondary markets have learned, maybe the hard way, that it is not possible to embrace these three vertices simultaneously. For COMM the presence of two of these factors excludes the third as well. It is on this understanding that high return and low risk exclude high capacities, such as in alphas and high-frequency trading. Crypto Commonwealth itself encompasses hedge funds including the alpha fund “Sphinx” and the smart beta fund “Stonybrook” under the high return and low-risk classification. Conversely, you could have any of the two other configurations. At this point, the triangle metaphor explains itself.
The merit of a project like COMM is that it merges into an innovative ecosystem the wisdom of an elite publisher house with the profit-making power of a hedge fund. Take for example “Stonybrook”, which is the very first (if not the one and only) crypto smart beta and alpha fund to endorse and publish high-quality crypto strategies and analyses on-site, and make them transparent to investors and readers largely for free. This allows investors to understand what they are trading with and take good control of their asset allocation. Crypto Commonwealth will offer detailed, professional suggestions to help them make the most informed decisions in style selections upon investment. This profit will be redistributed into the ecosystem in a decent cut - up to 50% of management or incentive fee would be shared among excellent authors, portfolio managers, researchers, and collaborators.
Contributors can opt to be external or internal researchers. Internal or ‘book’ researchers are expected to run backtests on the platform and submit alphas for centralized post-processing, including portfolio combination and optimization, however, this is by no means limited thereto. Upon proper evaluation, a certain amount of COMMs will be paid out as a reward, with a significant amount to be followed pending the alpha performance out-of-sample and in live trading. These, of course, are what could be considered the right steps to build a strong and wise community.
COMM’s professional column, ‘Beta for Pros’ is expected to cover smart beta/alpha investigation, factor/risk premium analysis, ETF construction, pair arbitrage, statistical arbitrage, exchange arbitrage, high-frequency trading, risk management, automatic investment, market making, and the applications of portfolio management techniques that improve simple trading methods. They also have two more columns intended for generic readers that serve as educational resources and crypto knowledge base - ‘Beta for fun’ and ‘Crypto Insights’. They cover quantitative and fun crypto analysis, tokenomics and philosophies, as well as non-quantitative articles in the blockchain domain including crypto overviews, insights, token mechanism/algorithm, macro visions, blockchain techniques, etc.
The long term vision of this journal/fund is to acquire high-quality, stable submissions and a good impact factor, then start charging subscription and publishing fees as any other commercial journals. More importantly, it plans to redistribute all profits after operational costs back to the authors, editors, and reviewers. This is a closed cycle that is expected to nourish and sustain the ecosystem as it starts to gain momentum.
What is interesting is that Crypto Commonwealth has a strong background in global stock markets, having amassed a good number of lowly correlated equity strategies at their disposal. The project is seeking to tokenize them as soon as circumstances permit. Those who have been following the cryptocurrency market recognize that tokenization of other financial markets, like commodities, futures, stocks, currencies, bonds and real estate is promised to be even bigger in capitalization than all the current cryptocurrencies. A real pioneer in strategy tokenization, COMM will certainly build a supportive and productive atmosphere for portfolio managers across multiple markets to participate in its ecosystem.
In conclusion, Crypto Commonwealth is a promising project that harbors the first publishing house and investment funds backed by a community of contributors, investors, scholars, and researchers, redistributing profits among its members. In this way, it represents a breakthrough for the technological paradigm that our society is about to experience.
Website: cryptocommonwealth.io
Email: info@cryptocommonwealth.io
Telegram: https://t.me/Crypto_Commonwealth_Europe
Telegram channel: https://t.me/CryptoCommonwealth_ANN
Twitter: https://twitter.com/CryptoSmartBeta
Facebook: https://www.facebook.com/Crypto-Commonwealth-102262581218579/
Medium: https://medium.com/@CryptoCommonwealth
LinkedIn: https://www.linkedin.com/company/cryptocommonwealth
Youtube: https://www.youtube.com/channel/UCpsI9ikWg7HKobrj_1Zq38A
Reddit: https://www.reddit.com/user/CryptoSmartBeta
GitHub: https://github.com/CryptoCommonWealth
Bitcointalk: https://bitcointalk.org/index.php?topic=5201899.new#new
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