The First Crypto Hedge Fund — BCUBE
AMA with Guruprasad Venkatesha Co-Founder of one of the most technologically advanced Crypto Projects!
Today we are joined by a Guruprasad Venkatesha as he runs us through the extremely advanced and highly lucrative opportunity that his project, B-Cube, is offering users. An automated trading process that is able to connect directly to your Trading Platform and execute trades like a Proffesional Investor.
Turning your simple Portfolio and Decentralized Holdings into an extremely profitable and highly lucrative Hedge Fund.
Stay tuned and pay close attention, this is an AMA you do not want to miss!
MoonWilly Founder and CEO Kevin has managed to bring on the Co-Founder from one of the most exciting Altcoin projects across Crypto! Guruprasad Venkatesha is here to talk all things Crypto as we take a very close look at his brilliant offering and hear his plans for the future of the project.
Joined by many bullish fans and community members on the Official MoonWilly Radio Hour at 18:00 UTC on the 31th August 2021. We have our questions lined up and are eager to hear about this phenomenal project. Ready for an in-depth conversation, to discuss all things Crypto and speak on the future of the BCUBE project.
Stay tuned, this is going to be a good one!
Do not get confused, this is not a Crypto Trading Bot. The BCUBE Project integrates some of the most advanced A.I, Machine Learning Algorithms and delivers a tidy product that has a widespread appeal for both novice and seasoned Crypto Investors.
Co-Founder Guruprasad Venkatesha is here to run us through the ins and outs of this brilliant project that has performed successfully so far and is ready for some impressive levels of growth in the near future.
Host: How did you get started in trading and how did you get involved in the world of Crypto?
Guruprasad: Well honestly, I’d have to go back many many years ago. A few decades ago to be honest. I was 14 when I first started trading in the stock market.
My closest friend in school, his father used to be a big-time stock market investor back in India. And I was really fascinated and wanted to learn about how trading works. I was also very good at math, I still am today! Back then, it was great to see how these numbers changed and what is there behind them.
This curiously led me to an interview with his father, who is a very big bull in India. Even till today. I had to wait such a long time to just meet him. He said to me straight: “You’re a small boy, go back to school. I don’t have anything to tell you at this time.”
But I didn’t let that deter me. I went back to him and kept pestering him and hassling him. Until eventually he told me to go and take a close look at the stock market. Go back to the basics and take a very close look at the fundamentals. How to select a company, stuff like that. Very interesting to me, especially as a 14-year-old boy. Concepts and things such as a balance sheet weren’t very easy for me to understand.
The interest and passion were there for me. I started making a few small investments at the time, which turned out to be very successful. I really loved the field because it’s all numbers and you have no idea as to what is going to happen tomorrow. And that excited me.
This journey led me to make my first startup. Back when I was learning to trade and discussing it with my friends, I identified a very genuine problem. When software engineers are at work, they are unable to operate a broker account on their computers. So they were struggling to trade in the stock markets.
What we were doing was a basic technical analysis. Nothing in comparison to what we do now. A really simple technical analysis, these sort of strategies we would send through an SMS to their phones.
Back then we never had Viber or Whatsapp or all these platforms. We would send an SMS and if they wanted to follow the signal, they would respond to the letter “Y” to a particular Stock Broker and he would trade on behalf of them.
This was the first thing that we started, I had not enough started my engineering when I started with this one. Later on, after completing my degree, I have always been into trading. I was a trader at Morgan Stanley, then later getting into Bitcoin Trading.
Most of my journey was either in FinTech or Asset Management.
Host: Tell everybody exactly what B-Cube is and what it means for the Crypto Landscape?
Guruprasad: Sure, until December 2017, we didn’t really have any idea of making B-Cubed.ai. It just so happened that in 2017, me and my Co-Founder, we Invested nearly 120 thousand Euros in different ICOs. Because we were both managing private funds for our friends and family.
This was the time when we really invested a lot of money in ICOs. They were looking really good on paper, really looking like tigers. But in reality, they were more like pet dogs.
They were not roaring or aggressive or anything as such!
We believed in these projects and we invested money and we ended up losing a lot of money. But going back and telling these people whose money we were responsible for. And hearing the fact that we’d gotten cheated by someone else.
These were the kind of words we were hearing from everybody. Even after paying all this money back, the relationship was never the same. Did we start thinking, what happened to those families that got cheated by Bernie Madoff, for example?
How would they be facing these situations?
Those innocent investors, like me, that got cheated. Lucky for us, this money was not so big. But there were a lot of people that might have invested much more than they could’ve afforded to lose.
They should not do it. But it does not mean that they deserve to get cheated. We were really thinking about that. We always wanted to empower retail investors.
Back when I worked at Morgan Stanley. I saw a lot of premium quality products that were only available to high net worth investors or some kind of portfolio manager. But it was not really available to common people like us.
That was always a question in my mind. Why is that not possible? Why can’t we do this for retail investors?
All this led us to do something to help retail investors. Then the concept arrived that we would make this kind of asset manager based on our knowledge, our experience running an asset management company and trading.
Our Co-Founder is an expert in A.I, Big Data, Cloud Computing. He has several masters and advanced masters degrees in these subjects. So we thought about it.
But the initial thoughts came to make something like that because Crypto always trades. As opposed to my stock market darling in which I’d start working in the morning and end up my work in the evening. That’s not the same here.
We really needed to help of technology. That’s where our combination really came together and we decided to Co-Found this company. Back in 2018 when we finally thought about it and founded this together.
Host: So users are now able to use your platform to automatically trade for them. Is that correct?
Guruprasad: Absolutely! All they need to do is one simple thing. They just need to integrate their Binance API keys with our platform. All their trades occur in their account. We don’t take custody of their funds, anything as such. All the trades occur automatically in a totally hands-off approach.
They don’t need to set up a lot of things or do a lot of things. Nothing like that at all!
Host: So it’s all an algorithm or logic that you’ve already programmed in. What other exchanges do you currently support?
Guruprasad: We support Binance, FTX and Bitmex. These are the primary exchanges. Soon we expect to release KuCoin alongside other major exchanges.
Host: Emotions and trading are a very deadly combination as they can lead to some less than optimal trading decisions. Bots are not affected by such emotions and trade according to predetermined signals and parameters. A great advantage to both novice and seasoned Crypto traders.
You seem very certain of your trades and earnings. On your website, you actually show your previous experience and previous results right there!
Guruprasad: Absolutely! Every single trade is posted on the website. Whether it is was profitable or otherwise. We are clearly explaining the notion behind the graph or any kind of performance. Everything is fully available through our website.
Even our upcoming bots, we first shared the backtesting results with the community. After that was published, we allowed those bots to operate for a while and people could actually see how they would operate in a real trading environment.
We like to operate with a great deal of transparency!
Host: The community must have been very excited about the release of your product!
It looks like you have several bots available. All of them showing some very good returns. One of them actually showing a 52 per cent month over month return, which is insane.
Are your trading algorithms proprietary? Does the user have any idea as to the sort of strategies you are using?
Guruprasad: The 52 per cent bot is our AltCoin bot. A very popular selection amongst our community. It is actually a BTC accumulation strategy. It is not like putting in 1000 dollars and getting back 2000 dollars. Moreso putting in 1 BTC and getting back 1.5 BTC. The percentage of returns is also in BTC.
We try to give a very small introduction to the technology as well as a brief description of how the bot works. But we don’t dive too deep into it.
In the community, we do discuss the logic behind certain actions. When it would trigger a sell automatically. How the AI models work. We do have a casual chat about it, in that way.
Our community members do have a general idea of how it works but not exactly the technology about it as such.
Host: Different countries have different rules depending on how long you can hold a trade and the tax implications of that.
Does the user have any idea of how often a trade may come up and alter that?
Guruprasad: Most definitely! The majority of that we have built are actually very-low-frequency traders. Even the Altcoin bot has a high statistical significance per trade.
For example, if BTC was very weak or pumping very hard. It would have a huge effect on Altcoins. In that situation, we would increase the Confidence level. That means there would be fewer signals and fewer trades.
As opposed to the Market operating normally, typically bullish or bearish. Then we’d allow it to operate on its own.
Sometimes, users do ask us as to why the bot is not trading. Why it is trading like mad, so many times, so many coins at the same time. And we are there to answer these questions. They need to know it. They rightfully need to know it and we are more than happy to answer their questions.
We do post these signals on the platform as well. So they can see very clearly how many trades happened and what happened. It is all fully available on the platform, users can clearly see there and get some idea about it.
Host: It sounds like you’re always looking for new strategies to be able to implement and offer users more choices. How often are you looking to unveil new strategies to the community?
Guruprasad: We would like to introduce as many strategies as possible. Coming from a hedge fund background, I do believe that diversification is a very important consideration.
Although the bot is doing very well right now with a high percentage of return. It doesn’t mean people should be going all-in right now. We need to have a very diversified portfolio, 3 or 4 bots, something like that.
We always need to have a hedge. This is why we always create new bots. There is so much to be done with Artificial Intelligence and Machine Learning. It is a very, very big world. We can’t ship as many products as we’d like, because the research and production time takes a while.
Even after the product is created, we have to look at it for some time. With synthetic data. We create data on our own and allow the A.I. to make some predictions with that sample set. Only after we receive positive results, it would take another few months of paper trading. Then only would it be featured on our platform.
Not for Live Trading but users can read the signal.
So as you can see, it actually takes a lot of time until a bot is actually featured on the platform. There is definitely a lot of testing. The upcoming bot is actually the most advanced we’ve ever had. A lot of new technologies and in the future, we will be looking to introduce Bundled bots.
This means people won’t need to consider a combination of bots, the AI would determine that for itself and make the trade on its own.
Host: Does this mean that the AI would be able to switch strategies? Can it change strategies based on what the market is doing?
Guruprasad: Definitely. This is what is referred to as Factory Strategy. We have built it already but it is currently in the testing process. This process is roughly 4 to 6 months.
We need to absolutely make sure. These things are very, very sensitive. Even if a single calculation is slightly wrong or even a single statistical analysis returns some kind of error. That can lead to a very big problem. Therefore we need to test it under different conditions and situations.
We are testing it and we are receiving very good results. This Factory strategy will offer, for example, multiple strategies for multiple tokens. It will select the best strategy for today’s trading for particular tokens.
It will also use different statistical tools as well as pattern recognition. Based on this, if it recognizes any type of mistake, it should also make a correction on its own. We are currently looking at this with reinforcement learning.
It will take a bit of time until this gets into the big picture but it is definitely possible and we are actively working on it!
Host: What do you do if things go wrong? If a bot is severely underperforming?
Guruprasad: It has not happened so far! Fingers crossed! Because we went through drawdowns on our Altcoin bot, the one you were just mentioning. But the drawdowns compared to Bitcoin were nothing. The strategies were down like 18% but Bitcoin itself was down like 50%.
The fact that your drawdown is lower than the underlying asset is fine. In Crypto, drawdowns of 15 to 20% are somewhat common.
We do have a hedgefund mentality. We don’t like to call ourselves a bot provider or anything. We consider ourselves a hedge fund for retail investors. I’m not trying to give you a different impression here but I’ll give you a very logical thought on what we do.
Imagine there was a bot development company with a static algorithm based purely on technical analysis or something like that. We don’t use this sort of normal technology with our bot. We use an A.I. and Machine Learning based technology.
If we feel that something incorrect is happening that should not have happened, then we will immediately look to optimize it. Everything is going on in the background that people don’t know and don’t see.
In terms of performance, it will be clear to see!
Until 2020, the Altcoin bot that we were running was almost hitting the target price, then just receding down. It feels bad, you’re so close to perfect and then the bot doesn’t decide to buy and then the price dips. Even the community recognized that, like clearly our strategy was right but we just need to tweak some things.
So we used that period to create and innovate upon that bot and implemented a “Sensitivity Layer.” This layer keeps monitoring the prices at the Target price. If the price approaches the target twice but does not meet it, it would automatically make the decision to make a market order and sell everything on its own.
It’s kind of like a superhuman that is observing everything and going on with his own rules. And what happened? The performance of the bot improved drastically. And this sort of issue rarely occurs anymore.
It is these kinds of optimizations and changes that we look to keep doing. We don’t introduce the strategy on our platform until we have really tested it ourselves for at least 2 months. Doing paper trading ourselves for 2 months so that we optimize it till it’s eligible to be on our platform. Until that point, it will not appear but we will have open discussions with our community.
Sometimes people wonder. We’re talking about it but we’re not implementing it. But once it’s fixed and at the production level, that will be the only time it shall appear on the actual platform.
Host: The systems you’ve developed seemed to utilize some sort of logic. They’re able to determine how close you’re getting to the target which is brilliant.
How do you deal with extremely bullish and aggressive community members? Crypto can be a very volatile marketplace and can certainly attract a certain breed of investor. How do you handle those kinds of borderline unrealistic expectations?
Guruprasad: We’ve come across many kinds of investors through B-Cube. The first is someone that would buy-in, hold and keep shilling. Very supportive kind of investor.
We also meet investors that like to buy in heavy and will find themselves in front of a Lamborghini Showroom. There’s a lot of different names for these kinds of investors.
Our Clients, well, not real clients. They’re our family really. We’re so close at this point. They have been very supportive, to be honest. Even now, they will always support us.
It’s like we know these people personally. In fact, we’ve met a few of them in real life. We have a truly excellent bond with our community. As such we openly discuss the product and crack jokes. It’s really pleasant.
Me, personally, I get very emotional when people lose money. I have personally gone through that myself. I want everyone to make money and be happy, it is sort of like my philosophy. I get very emotional when it comes to topics like this.
I really have a special bond with my community and the fact that B-Cube is here is truly because of them. The team makes technology, products and its good. It’s great. But more than that, it is their support and we should never forget that.
If people really understand what it is that we do. Which our community definitely does and support us a lot in so many ways. For example, we were looking for new talent to join our company. Everyone started posting LinkedIn profiles, referring different people.
I am really proud of our community. Honestly. I am truly speaking from the heart, they are really very great. They take whatever we’re asking as though it was a request from a friend. This encourages us to push and work that little bit harder. That’s how we view the community.
That’s how they put me in the 4th dimension! It’s all their kindness! B-Cube, a Cube has 3 Dimensions. But that 4th Dimension is truly the community.
Without community we are nobody and without the demand for our product or without users, we are actually nobody. And they are doing it and they trust our strategies with their money. We have deep gratitude towards all our community members that were there from Day 1. They supported us a lot.
I do get annoyed with these MoonBoys. How should I react to these kinds of traders? I would lose my patience, to be honest. And I had every reason to do so. I’m not defending what I did, I was probably in the wrong to react in the way I did. I was definitely not thinking logically. I am an engineer, I see everything from that scientific perspective.
We launched our Token on May 30th. People were there in June and July with tokens sitting above 20 cents. Less than 3 per cent bought our tokens at 60 cents during the lottery and auction phase. But these 3 per cent of Investors really didn’t understand the market conditions.
This is April, May, June. The Bearish season. A lot of projects exist where Founders don’t talk to anybody. As opposed to B-Cube or MoonWilly. Many of these projects have no visible Founders. People are begging for some kind of clarification and a lot of these projects just pay for some kind of vague community manager to maintain all the fears and doubts as a layer between the actual Creators and Developers and the angry community.
These kinds of teams aren’t really looking to cure the sickness or the pain. They’re just putting a bandage over it, painkillers. But this sort of behaviour doesn’t happen with us. We’re all there, me and my Co-Founders.
Despite all of this, this 3 per cent of holders keep attacking us directly. Telling us that we took their money and ran. Like, what are you talking about? I’m here? You’re telling me that I’m a cheater and I ran away. I’m here, day and night working on this product and getting it ready for you and this is how you treat us? It definitely hurts sometimes.
Host: What sort of utility surrounds your token? Are there any kind of Minimal holdings required? How do you get access to the features of the A.I. Trading?
Guruprasad: We have a very unique business model actually. It is pretty rare to come across anything quite like ours.
Imagine a number of bots existing across multiple platforms. Platforms such as 3 commas for example. But if you see those bots, you won’t be too encouraged. They’re simply technical analysis based bots with no one looking to optimize them. If they go south, they KEEP going south.
You don’t even get the opportunity to speak to the developer or anyone behind the scenes. If you want it, you pay or else get lost. It’s that type of deal.
That is why our bots are very very very special. Imagine going to a number of platforms, paying a fee to use a bot that doesn’t work. You have no idea what is going on and there is a lot of uncertainty. But we have high-level AI Bots that are operating absolutely free.
That’s right absolutely free.
You just need to stake our Native tokens. Stake our B-Cube tokens through our Smart Contract and get one bot absolutely free of cost. It truly is free!
It is not just the Bots that are free. We’re also looking into Crowd-Funding or moreso a completely Decentralized Venture Capital Fund. We all invest in a fund. B-Cube, Founders and the Community and look to invest in other projects during pre-seed, seed and private sale rounds.
We’re not MoonBoys, we’re investors. Holding these projects and sell them at a later date. Allocation in these types of Decentralized Venture Capital Funds only if you maintain a certain number of B-Cube tokens staked in our Smart Contract.
Our final use-case is quite unique, very much unlike most other projects. B-Cube actually gives an opportunity for investors to purchase B-Cube tokens at the same price that they purchased during the ICO. This is a rudimentary method of price protection.
All these Tokens, until September 2022. Any payment that we’ve received directly in the form of B-Cube will be burned 100%. This is an additional buyback incentive and heavy deflationary concept that we’ve decided to integrate.
Host: Interesting stuff. How big is your team exactly?
Gururprasad: Our team is currently 6 people. But we are doubling our headcount by the end of October. 12 man team because we really need it at this point. We’re looking to introduce some highly specialized and extremely skilled members in the near future.
Selected Questions from the Community
Question #1: If B-Cube is a coin of your Ecosystem, does that mean that the Bots will only be available upon staking on the Smart Contract? Will Fiat payments not be accepted?
Guruprasad: No, not at all! We accept Fiat payments also and whenever we receive Fiat payments, we’re considering using 25% per cent of the payment in order to buy back our Native Token and then burn it.
However, in the future, we’re looking into the development of some advanced bots that will only be available to users that stake tokens.
Question #2: I see that you have a number of huge names across Crypto as partners. Have those partnerships paid off? Have you any future partnerships plans? Perhaps teaming up with the MoonWilly community in the future?
Guruprasad: True. We have made a number of big partners. A lot of Angel Investors, Stock funds a lot of reputable products. Even one of our heads used to work at the AAVE Protocol and connections with Ripple Labs.
We are actually in discussions with them to make many things. They are very open and they would like to engage with us in many, many different ways. We are waiting for the right opportunity.
The best way we can interact with them would be by making particular bots that are geared towards them. They’re quite open about these engagements and we’re currently working with a number of them.
As for working with MoonWilly? We’ll definitely sit down and have a chat and see how we can help each other out! We’re both in the passive income space, so there should definitely be some synergies between the projects.
Question #3: How can you make sure that B-Cube is better than your competitors and what plans have you in store for the future?
Guruprasad: Our major competitors are Financial Technology companies such as Goldman Sachs, J.P Morgan. We compare ourselves to hedge funds, as opposed to any Bot Providers.
The way we design our products and the kind of technology that we have as well as the advancements we’ve made across the Crypto industry specifically.
Even traditional Financiers when they enter the Crypto space will be far beyond us for the simple reason that Crypto does not work the same way that Crypto works.
The Stock markets are about shares, rights issues, bonuses, the results of the company. Lots of sentiment can alter the stock price.
In Crypto, you don’t need any of these factors but they will still shift. It might be a scam coin but it could still 10x.
When we started working on this project, it took us about 6 months until we realized we were heading in the completely wrong direction. Followed by another 6 months until we made a tiny level of progress.
We then had to bring in a Quantitative Analysis Expert from France. A Professor from one of the best Mathematics Orientated Universities in the World. He had his own experience of running his own Hedge Fund, he is not purely an academic and his approach was drastically different.
Question #4: Could you list some of the killer features of this project that set it apart from its competitors? What is the true competitive advantage that your project has that has you feel most confident about it?
Guruprasad: It is a completely hands-off approach that no other bot in the market currently has. You need to put a lot of work into it but before we were asking Investors to adjust their risk level and alter buy and sell levels. There was a bit of friction, although the community never expressed that, I must admit that it used to cause a bit of friction.
But this new generation of bots is a matter of integrating your API keys and just watch the performance through Binance or whatever.
We have built something that is very advanced. We had a radically different testing policy and quality control policy. How we build it and bring it into production. These are things we do very differently. It’s about the technology that translates to performance.
It is clear to see how BCube sets itself apart from the rest. With a brilliant product and a dedicated community fanbase, this is project that purely relies on the performance of its product to speak for itself.
With some huge names and brilliant strategic partnerships currently attached with many more on the horizon. It is only a matter of time until BCube becomes the most effective means of generating healthy revenue for your current Crypto Holdings.