Cindicator, a hybrid intelligence fintech company, has announced the launch of a crypto hedge fund based on hybrid intelligence and quantitative research.
According to the company’s announcement on Wednesday, it uses enhanced machine learning models and hybrid intelligence data to forecast and thus making investment strategies.
Commenting on the newly launched fund, Mike Brusov, co-founder & CEO of Cindicator, said: “Today, the Cindicator ecosystem is entering the next level of its development, preparing to start the onboarding of external capital from a fund of funds, family offices, VC funds, institutional investors and high-net-worth individuals. The combination of the collective human mind and machine intelligence provides a unique and sustainable data source for seeking alpha.”
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The company also detailed that it has invested $500,000 of the corporate treasury into the fund’s strategies and aims to gradually extend the amount to $2.5 million. Part of the fund’s revenues will also be distributed among the network of analysts of the company spread across 135 countries for their efforts in quantitative predictions.
A tough time for hedge funds
Cindicator is launching the fund at a time when the crypto hedge fund industry is seeing a tough time. According to a recent report by Crypto Fund Research, as many as 70 crypto hedge funds closed their operations in 2019. This was primarily led by the low institutional turn out for crypto investments.
The struggle in the sector can also be seen with the newly spawned funds – last year, 284 new crypto hedge funds hit the market while in 2019, the number is still only 128.
“We are happy to launch the first-ever ecosystemic hedge fund, the financial institution of the new era. The symbiosis of human and machine stands behind the investment vehicle, which is a game-changer for the money management industry,” Yuri Lobyntsev, co-founder & CTO of the company, added.