Upcoming services, sustainability, marketing, and more!
Below is a recap of the XETA Capital community AMA hosted on October 14th, 2022. We answered your questions, showed some upcoming changes, a new 2022 Roadmap, September profits report, and much more!
Question 1: "I am wondering if I understood this correctly from Showtime’s AMA. Inside the blue-chip service, do the rewards compound, or do they just sit and do nothing? If they do compound, how often? Once a month?"
A: If you don’t ever claim, they’ll continue to compound over and over. It’ll happen on a daily basis. Some days, you’ll be at a gain. Some days you’ll be flat, and some days at a loss. Anything at a gain will automatically compound. That’s one of the beauties that these financial services can provide. If you don’t do anything, it works for you. You still have the wealth management firm trading and making that profit on the backend (using your XETA token) to automatically compound for you.
The performance fee will be taken monthly regardless of whether or not you withdraw, but the fact that you don’t have to do anything until you want to pull your profits out? That’s the concept that’s been spoken about, making your money work for you while you’re sleeping.
Question 2: "How much history is behind the various capital funds? I think it’s Gaxsys managing these in Tradfi, so I’m asking about their experience with the three specific vehicles to be offered through XETA Capital: Blue Chip, Private Equity, and High-Frequency Trading."
A: Many years. I know that’s a vague answer. They’ve been doing traditional finance for many years. Specific equities will be difficult to pinpoint in terms of past performance because different equities do become blue chips over time. But the actual services have been up for many years. For example, the Blue Chip report showed at least 3 years. It’s been longer than that. Whereas, for example, the HFT uses three different algorithms. Low-risk, medium-risk, and high-risk, and I can tell you the low-risk for sure has 8 years of past performance history.
The higher the risk, the less performance history there is. When you look at 8 years for the low-risk algorithm, that’s 8 years that at least the algorithm has been in use. Along with the console and all the tech behind it, with Gaxsys utilizing that. As you climb up to medium-risk and high-risk, the management firm might have 10-15 years in performing HFT, but the actual algorithms are considered higher risk because the algorithms themselves have not had long performance histories. You have to look at algorithms, software, and AI behind the wealth management firm. It’s kind of a two-step question and answer.
For instance, when you’re looking at trading bots, you want to look at not just the firm operating the algorithm but the algorithms themselves. Are they being tweaked on a daily basis? What kind of past performance do they have? Have they been through uptrends, downtrends, and flat markets? Gaxsys has been doing this for at least a decade. The primary question is, when it comes to the technologies, how seasoned are they? It’s just professionals utilizing different tactics and strategies, and as strategies advance, how do they advance with them? I can tell you, just dealing with XETA, Gaxsys is tweaking, enhancing, and changing things. Especially in these markets because these markets are a little unique.
Especially for example, when you have big drop-offs in currency pairs, you might lose initially, but as it becomes more volatile, you gain a lot more in the short run. You have this initial loss, but because it’s so volatile, you’re going to make a tremendous amount over the next weeks. It’s tweaking strategies for the market but also tweaking strategies based on different strategies.
For example, HFT. When it first came out, it was difficult to set up. You had to have a lot of money and the right algorithms. You had to have the console to make the calls, etc. As the tech and strategies advance, you want to advance with them. These are just 3 services. There are many more ways that Gaxsys makes money in the traditional markets than these. These are the 3 we happen to be using at the moment and the 3 we are offering back to you.
Question 3: "What can you tell us about the NFT development idea? Is it related to HFT Lite?"
A: You’re going to see that in the road map later. You may have this question fully/partially answered. There’s a lot that we’re not unveiling at the moment, but that is being worked on behind the scenes. There is an NFT project in the works. Some people may ask why? So, in the passive income space, when you compare the community and community funds next to the NFT community, it’s like setting a grain of sand next to a house. It’s not even comparable.
The amount of money and the sheer size of the NFT community is thousands of times bigger than the passive income space. The idea is you have all these different communities. No one’s brought them together in a way they can feed off of each other in a single project. So the idea is, how do we bring both of these communities together in a way that everyone wins? Is there a way to do that with the utility we have? Nobody has the utility we have, and I would be bold enough to say that.
So it’s kind of sort of related to HFT Lite. We’ll discuss this a little bit more once the roadmap is up.
Question 4: "So, does Gaxsys hold GRS (global registered share) in the blue stock portfolio, and we get a slice of the GDR (global depository receipt)? If it is a GDR that we get a slice of, which bank will be the main counterparty to clear the trade?"
A: You are not receiving a security. You’re not going to be able to say, “hey, send me the Blue Chip equities to my account”. We’re dealing with crypto as an intermediary, meaning you purchase XONs, get access to these services by owning enough XONs, and then use your XETA token to deposit into the service. Based on the USD value of your XETA token, that determines how much you’re depositing into the service in USD equivalent.
That FIAT USD value is sent to Gaxsys to trade and create a profit, and what you get is the profit minus a performance fee. All you do is send crypto and receive crypto. When they’re trading the Blue Chip, it’s trading in and out of positions to make a profit. You deposit XETA and receive USDC. You don’t receive the security. Gaxsys invests that for you, in and out of positions, depending on the market, to earn a profit. On your end, it’s always cryptocurrency. On the backend, it’s more complicated.
Question 5: "If for some reason XETA didn’t work out, but we were already in the FS from Gaxsys, do we then lose our position with them?"
A: The answer is no. There is no such thing in my mind as XETA not working out. Obviously, you have backup plans, but there is no plan B with XETA. A lot of projects walk away with nothing to give their community. There’s no money or utility. I’ll just say, (big if) something were to happen. There’s nothing stopping us from allowing everyone access to our utility through services. That won’t happen because nothing will happen to XETA, but my point is when you have something, you can give something. I see XETA growing into something far bigger than what it is now.
However, it’s an evolutionary process that has to grow over time.
How do you bring all the slivers of crypto together?
Why not bring them together and find a way for everybody to coexist in a way where everybody wins?
There has to be a far bigger vision than where you start. If something did happen, which it won’t, we would make sure you guys are taken care of.
Question 6: “What makes this HFT service better than if I go on my own and have bots do the trading for me with another company?”
A: Everybody is going to start offering trading bots as a service. The moment you see something copied, you’re going to have good, better, best. But that aside, there’s a difference between a trading bot and a high-frequency trading service. It has an algorithm. You can’t just set it and forget it. There’s constant improvement. There are people working on them constantly, on a daily basis.
The console has to make the calls, and it has to make them in an efficient manner. You have to have the computing power. High-frequency networks are built with direct fiber connections so that these trades can be made in milliseconds. It’s different than coding a bot based on some trading service and offering that as a “trading bot”.
Even if you had access to the high-frequency trading platform, you wouldn’t have access to the professionals running it. They detect things going on in the market because they have their ears to the railroad tracks, so to speak.
With many of these bots, I would ask if they have past performance history for years or were just built.
How do they perform in uptrends/downtrends?
Do the individuals running the bot account for changes in the market to take advantage of potential swings in forex, crypto, equities, gold, metals, and commodities?
Having the utility with the professionals running it. That’s the mix. Right now, trading bots may just be another catchphrase.
“How long after the full financial service's release should we wait to see XETA start marketing itself?”
A: It would be shortly after. I will also say when you see the roadmap, you’ll see other projects aside from the financial services that’ll be marketed and have an impact on marketing XETA. Before marketing, you need to have a fully fleshed-out product. You want to have your selling point readily available. The whole ecosystem will work together, powered by XETA, and indirectly market XETA itself.
Question 8: “I don’t want to claim my XETA until after one year for less tax obligation. The XON expires one year after creation. Will I lose rewards if I don’t claim before the XON expires?”
A: I do not recommend waiting a year to claim. If you wait one year, assuming you have more than 10 XONs, you’d need to claim 36 times just to get all your XETA. It would take more than a month to claim. I would suggest you consider claiming just before the end of the calendar year that you’d still need to play catch up, but you could technically do something like that.
Question 9: “What date will the accelerators come out?”
A: The updated roadmap will expand. A lot of these updates require dashboard changes. Right now, we’re working on our audit, which has delayed things a few days.
Question 10: “Where can I see the wallet used for buybacks and pools? Is that available?”
A: The buyback wallet won’t be shared because people like to manipulate things, not necessarily any member in particular. Similarly, we won’t share a ceiling price. Market conditions are outside of our control, so we can control only so much as a project. I’ll point back to the strategic selling video. Let’s work together as a community to support the ecosystem.
The Discord is going to be upgraded to be a little more interactive and informative. For example, it’ll be acting almost like a website in terms of information and what we show about XETA in Discord itself.
We’re working on our audit. For those unaware, that’s essentially going through your smart contract and looking for any vulnerabilities. It’s with a very reputable third-party auditing firm. We’ll let you know who it is as soon as it has concluded.
We’ve donated another $5,000 to James Project. That’s a total of $15,000 to James Project. If you’d like to support them yourself, look them up at JamesProject.org.
Updated 2022 Roadmap
For more information, please visit our article: Updated 2022 Roadmap
September Profits Report
For more information, please visit our article: September Profits Report - Revealed