The current state of investment research for cryptocurrencies is inconvenient and leaves a lot to be desired. Thousands of new tokens/currencies will be offered this year alone. This will doubtlessly include tremendous opportunities for investors. But the large number of choices presents a wild landscape. The lack of specialized financial information makes it hard for investors to pinpoint the tokens that will outperform the market, especially given that there are more coins being released every day. Investors will be challenged to differentiate between these opportunities and seek tools to help devise and implement an investment and allocation strategy. (1) Currently, finding information on investment in the cryptocurrency space is often a fairly random process. The major sources include: Youtube, Industry news sites, Research reports, Bloggers, Exchanges, Market data sites and Forum posts. There is an information platform called Steemit. Steemit provides a useful source of advice and forecasts and may include a compensation-feedback mechanism. However, their broad focus on social sharing of information about “almost anything” leads to a more diffuse stream of information.
The Pareto Network is a peer to peer financial content marketplace. It connects providers of financial information in the cryptocurrency space with investors, providing foresight into market inefficiencies and opportunities. Content creators can earn money by sharing financial information that benefits people in the network. When investors compensate content creators, their ranking goes up which gives them faster access to more actionable information in the future. (2)
The Pareto Network is creating a new ecosystem that will improve efficiencies in the generation and distribution of information of value to investors. The ecosystem will provide incentives and a mechanism for a wide range of individuals and organizations to create and share this information and subsequently receive compensation for their effort. It will broaden the range of available information and provide a market-based mechanism for investors to obtain access to information of value. It replicates the function of research desks at investment banks, providing a flow of information that anyone can access, and aligns economic incentives to promote that reality.
Prospective users of the Pareto Network must own Pareto tokens (PARETO) in order to access the Pareto Network. By means of its rewards mechanism, the Pareto Network encourages the production of actionable market information and helps Pareto token users filter noise from meaningful information. The Pareto Network will ingest and distribute a broad range of information that may be of value to its participants in making investment decisions in the cryptocurrency markets. Such information will include for example: Analyst reports about tokens, Sector reports, Analyst reports about mining, Technical reports, Codebase reviews, Code vulnerability and security and Reviews about certain tools.
Content contributors may be individuals, groups or organizations. They may generate ongoing streams of information. There will be two phases to adding content contributors.
– During the first phase, Pareto will recruit qualified contributors to start building a flow of information that can be used immediately by token users. These initial Content Contributors will be compensated by the Pareto to ensure that the database on information available to users is robust and has value.
– In phase two the contributors will grow organically, as the contributors will be drawn to the Network; they will be incentivized to add content to earn rewards and PARETO tokens from users. Submissions of content to the Pareto Network are open to anyone. Content Contributors will pay a fee to Pareto to make their content available to the users. This fee will also prevent spam or other inappropriate or irrelevant content.
Incentives and Rewards
The Pareto Network uses a ranking algorithm to determine the order in which Pareto token users are provided with the information created by the Content Contributors. The outcome of the ranking algorithm is called the waterfall, and it’s a kind of leaderboard. There are a variety of criteria which have an influence on a user’s position within the leaderboard and these can be used strategically to obtain information sooner than other users. Content Contributors are likewise incentivized to create content which can be actionable amongst the users as well as compete for the optimal kind and price of information for the Pareto Network.
1.Content Contributors submit content to the Pareto Network.
2.Pareto Network distributes the content to Token Users in a prioritized sequence. The higher the leaderboard rank, the faster you get the information.
3.To maintain or improve their position on the leaderboard, Token Users award PARETO to Content Contributors. Users that do not spend their tokens, or attempt to use Pareto tokens for speculation, are at a disadvantage by not maximizing their place in the network. Tokens are awarded to Content Contributors, this supplements direct rewards from Pareto Network.
Use of the Pareto token (PARETO)
Pareto tokens are as valuable as the information in the Pareto Network is, or as valuable as future information in the Pareto Network will be. People are incentivized to put information into the Pareto Network because they can earn more from distributing the information than from acting only on the information themselves.
– In order to prevent spam in the kinds of information that is published, Content Contributors must hold a predetermined amount of Pareto tokens in order to be eligible to post content on the Pareto Network. In addition, there is a cost for publishing.
– In order to address the possibility that the minimum holding of Pareto tokens is too high for a new Content Contributor, users can lease their Pareto tokens for the benefit of the Content Contributor. This enables the new Content Contributor to participate by sharing some portion of their earnings in Pareto tokens with the sponsor
– A ranking algorithm (the waterfall) is used to create a hierarchy of all token holders. The ones with the highest rankings get access to information before everyone else.
– In order to rank higher in the leaderboard, token holders have to spend Pareto tokens by voting on the content that benefits them. The number of Pareto tokens they hold and the amount of time they have held them for will also factor in the ranking algorithm.
40%: Crowdsale; 30%: Strategic Reserve; 18%: Team; 8%: Pareto early content contributors; 4%: Advisors & Ambassadors.
– EndoTech distilled BlockChain Intelligence is distributed via the Pareto Network to Pareto token holders. EndoTech is an Israeli company specializing in artificial intelligence (AI) and machine learning (ML) systems to provide guidance, trading ideas and news for the cryptocurrency space in an organized and filtered display. In over a decade within the financial sector, EndoTech has provided algorithms and guidance to over one hundred hedge funds in the U.S., Europe and Asia. (3) (4)
Company and team
The team currently exists of 8 members and 3 advisors. Four team members are explained below.
Co-Founder & CEO: Eric Lamison-White, Bachelor of Computer Science; Cryptocurrency developer since 2013, Manager of Blockchain Development Company, Former FDIC investigator, 8+ years of software development and engineering management. (5)
Co-Founder & CSOO: Ted Lanpher, Bachelor of Administrative Sciences; IBM Satellite Business Systems, Experienced startup CEO and entrepreneur in software apps, fintech, cybersecurity, enterprise blockchain consulting. (6)
Chief Economist: Chiara Longo, PhD in Economics; Bank of the West/BNP Paribas, 15 years in econometric modeling of commodities and currencies. (7)
Lead Data Scientist: Dr. Anna Becker, PhD in Artificial Intelligence; MS, Computer Science; Designer of end-to-end multi-asset algorithmic trading platforms. 20 yrs. leadership in algo development for hedge funds. (8)
Pareto is working with an Interactive Roadmap on Github, which can be found here. Some of the steps are:
‘18 Q2: Content: code review and vulnerability disclosures; Technology: Add redis cache, Implement Orbit-db for IPFS storage of encrypted content data, Re-Implement visual dashboard GUI on par with the Alpha design (profile info, nested content, upstream content), open API for developers. Marketing: Institutional partnership announcement(s); Crypto-ecosystem partnership announcement; Undisclosed marketing partnership
‘18 Q3: Content: Open up network for adhoc content providers;