BotOcean - Automated Trading Directly From Your Wallet
The cryptocurrency space is like an ocean, teeming with various tokens and coins with their unique utility. While these are not investment vehicles in a pure sense, these assets have spawned one of the most volatile, rapidly-growing markets since the Dotcom bubble of the 90s.
2020 and 2021 so far has seen a wave of new traders and investors, ready to set sail in the wild waters that those before them have grown accustomed to: 24/7, highly speculative and volatile markets. With this comes the possibility of both large profits and large losses, with the latter often arising from lack of trading strategy including risk management. In the absence of technical and fundamental analysis, an investment or trade decision can only be guided by one thing - emotion. This often doesn’t end well, and in fact, 80% of all traders lose money.
Among the myriad of projects, exchanges, data analytics services, charting platforms, and the ever-evolving offerings in the DeFi space, sometimes seasoned traders forget how much there is to learn before making informed decisions. Of particular importance, is learning how to spot fraudulent projects or even nefarious or accidental flaws that could have a detrimental effect on the price. One example is a token contract that has the ability to infinitely mint tokens, allowing the team to dump these on the open markets.
Nevertheless, cryptocurrency offers an exciting opportunity, which would be unfortunate to miss out on, simply due to it seeming too complex in the beginning stages. For this reason, services that cater for beginners, or simply those who are time-poor, has an important role to play.
Today we’ll cover one such platform, BotOcean, which simplifying the trading experience for both beginner to expert traders. BotOcean is building a fully decentralized platform that automates the trading experience.
BotOcean’s mission is to provide crypto traders with trading signals, easy-to-use tools, trading bots with a range of strategies, and automation tools that can be customized to their wishes.
Unlike many trading bots that have come before it, a standout feature of BotOcean is that it doesn’t require the user to deposit funds. In fact, it can connect to their exchange accounts through API codes with limited access, to enable the bot to trade on the account - but not to withdraw any funds. Below is a list of features being developed for BotOcean, which users will be able to access for a fixed monthly fee.
Some stand-out features are the autonomous trading bot, strategy designer with back-testing and the option to use social copy trading.
Autonomous Trading Bot
A key difference between the traditional markets and cryptocurrency markets, is that while there technically is a daily combined open and close at 00:00 UTC, these markets do not actually close. Ever. With the impossibility of monitoring the charts and news 24/7, many may find automated trading to be very advantageous.
The Autonomous Trading Bot on offer, will use massive historical data set to execute trades on behalf of the account holder. The bot will integrate with the user’s existing exchange accounts through the use of APIs.
The strategy designer could become a very valuable feature. Especially when used with back-testing, as this enables the user to reflect on their chosen strategies and bot performance. This puts an emphasis on continually improving profitability via tweaking solutions, which without automation, is an arduous task, one manual trade at a time.
While not a particularly unique idea, the ability to automatically copy a successful trader would be very appealing. With this of course comes the addition of human-error not present in the strategy designer mentioned above. At this stage, information surrounding this feature is slim, but for it to be worthwhile, it must contain the ability to determine position sizes based on the personal risk management criteria of the user. Why? Because, a whale using 20x leverage on a trade may be low risk for them in the grand scheme of their total capital, but it could wipe out a copy-trader’s holdings.
Something that may set BotOcean’s offering apart is that they plan to only allow the “professional” trader to charge fees on winning trades. That’s at least one step in motivating them to make profitable trades...
Users Vs Strategy Creators
BotOcean categorizes the users as Anglers and Shipwrights, who are the bot users and strategy creators, respectively.
Most users will end up being Anglers. Whereas, confident traders may become active contributors, and therefore aim to achieve higher rankings in the shipwrights section. Shipwrights represents users who create trading strategies that can be leveraged by users and are rewarded by payouts on a monthly basis.
Anglers too are part of a ranking system, based on their 30-day trading volume. The higher the ranking, the more benefits and data they get access to. To read more about the different rankings and options of both Anglers and Shipwrights, check out the white paper.
BotOcean introduces the BOTS token, a utility token that is going to be the platform’s core ecosystem driver.
The main use case for the BOTS token is fee discounts. Users purchasing subscriptions using the BOTS token receive a 50% discount on all fees. Fees are distributed among strategy creators as well as the platform, where any tokens the platform receives automatically get burned and are taken out of circulation. This reduction of supply over time should increase scarcity, which speculators may like.
In addition to fee discounts, token holders will have the opportunity to participate in the Ocean DAO. This offers a democratic way for users (token holders) to decide on the business strategy, strategy index components, developments, and more. All proposals and voting will be taken on-chain to guarantee full transparency.
BOTS tokens aren’t on the market yet. In fact, BotOcean is starting their token sale today, February 7th, 2021 through Poolz Finance. It would be wise to check out the official announcement for more information on how this token sale is structured. Excitingly, it will be the first ever IDO to launch on the Poolz launchpad.
Something that may perk the interest of speculators is the very low initial market cap of $168,000. With the trends we’ve seen with fund-raises, it seems very likely that this $96,000 raise will sell out instantly. However, do take into account that like with any start-up, token sales include significant risk. Let’s also not ignore the fact that gas costs are astronomical at the moment.
$100,000 of the proceeds will be used to provide liquidity on Uniswap and will be locked by the BotOcean team in a smart contract. Update: $1,500,000 of locked liquidity has been provided by the BotOcean team as per a recent tweet.
As with many projects of late, the white paper appears to be a work in progress, meaning the roadmap shared in there is subject to changes as the team moves forward with development. However, the team states they expect to achieve $1,000,000 yearly revenue within 12 months after launch.
That would be an accomplishment on its own, on top of all the development and releases that have yet to happen. The white paper showed a beta launch was scheduled for Q4 2020. Unfortunately, it seems that the team didn’t deliver on that promise, as they now communicate that the beta will launch in Q1 2021.
Q1 should also see testing, bug bounties, a strategy marketplace beta and the release of the final platform. Q2 will be mainly focused around acquiring licenses for global expansion and new features that use the BOTS token.
Q3 aims to bring the exciting migration to a fully decentralized, non-custodial trading and wallet platform. For the full roadmap, check out the white paper.
Typically, we are wary of using bot platforms. However, BotOcean is building a fully decentralized and non-custodial platform, which would provide more transparency and a more trustless experience that opens us up to exploring the upcoming beta.
If BotOcean manages to deliver (on schedule) and manages to grow their user base at a rapid pace the uptake of the BOTS token could take off.
BOTS is also the first IDO on the Poolz Launchpad, which brings additional hype and project exposure. Therefore, it’s expected that the token sale will sell out fast, providing the team with the proceeds needed to continue the long-term development of the platform.