DIGITAL ASSET ANALYSIS – RIALTO AI (XRL)
Source: Coinmarketcap
Summary: Rialto AI is composed of a team of high level academics, mostly data scientists and machine learning specialists. They have successfully engineered an ICO over summer of 2017 to raise capital for their Digital Asset Pool (DAP), which gives the underlying XRL token it's base level of value. Since their initial fund raising program they have developed and are currently testing their automated trading bots in the Cryptocurrency markets. Token holders are eligible to receive their portion of 100% earned profits on a semi-annual basis with the first opportunity to withdraw funds stated as March 15th 2018.
Valuation: XRL tokens are effectively backed by a basket of Digital Assets, in order of value based on the last update (December 9th); Ethereum, Bitcoin, Ripple, Bitcoin Cash, Euro's, USA Dollars, Dash, and Litecoin. Total value of stated DAP positions is slightly over $25,000,000 based on today's prices (Dec. 17th). Current market cap for the XRL tokens is under $21,000,000 per CoinMarketCap.
Based on the currently available information, Rialto is profitably testing it's three proprietary trading algorithms in a very conservative manner. Less than 25% of the DAP is being utilized during this testing period which started in October. It is not possible to accurately forecast future profitability of their trading techniques at this point, we don't know whether they're using 1% of the DAP or 24%.
Author's Speculative Valuation: Until the first financial report and audit, which will be preformed by E&Y, a major global accounting firm, we won't know too much about the ceiling of this digital asset. With a digital asset pool providing $0.25/token base value to this coin, anything around this level is excellent value for anyone with a long term perspective.
Based on it's DAP and position in the emerging world of Cryptocurrency Finance, anything under $0.50/token is a buy prior to the first audit and financial report when a more accurate data based projection can be calculated. When asked what my favorite Alt-Coin is, Rialto will continue to be my answer until it hits a minimum of 2x it's DAP value, or $0.50/token based on today's prices.
Math doesn't lie, and right now the only thing keeping this coins prices suppressed are FUD (Fear, Uncertainty, & Doubt) being expressed through social media and community forums. Anyone with a multi-year investment perspective and a desire to gain some exposure to the Financial sector of the new Digital Economy would be well advised to look towards Rialto as they build a portfolio.
Project Highlights:
Rialto AI currently employs three separate techniques to create value for token holders;
1 – Automated Arbitrage Trading bot: Arbitrage is the difference in price between the same asset on different markets. Looking at the Top 10 exchanges for BTC as an example, today BTC is currently trading at a high of $20,217 with a low of $17,931. This difference of $2,286 between Bittrex (high price) and Binance (low price) is called an arbitrage opportunity. Rialto's trading bots identify these opportunities between all connected exchanges or gateways and automatically purchase the low while selling the high. In this example, Rialto would earn the token holders +11% BTC per trade.
2 – Market Maker: Using it's connection to multiple Exchanges and Gateways, this technique would effectively eliminate the barrier separating exchange Order Books. If Exchange #1 has more bids than offers, while Exchange #2 has more offers than bids, Rialto's trading bot would purchase from Exchange #2 and route those coins to the buyers on Exchange #1 while keeping a small percentage of the transaction.
3 – Automated Trading Bot: Using oodles of data and analysis, this 3rd Trading Bot identifies trends and patters in the connected Cryptocurrency markets (including the Top 40 Ethereum Tokens) and uses funds from the DAP to profit from those trends and patters. This program is currently stated as profitable and is using a small portion of the DAP to further test and fine tune the algorithms.
These three techniques give Rialto the opportunity to earn value for Token holders in bear or bull markets, which is very valuable in the volatile world of digital assets. As the volume of money entering these markets increases Rialto is in an excellent position to increase profitability and earn a percentage of that volume in automated fashion for many years to come. This would be like owning shares of Goldman Sachs trading department in the legacy financial markets, without all of the negative Vampire Squid baggage attached to that company.
During the later part of 2018, Rialto is planning on developing a single entry point to the Cryptocurrency markets which would be available to token holders. This means if you own the XRL tokens, you would be able to purchase or sell the digital asset of your choice at the best available price without having an account on an outside exchange. This in itself would be hugely valuable and is not priced into the current market.
Buyer Beware: Rialto is attempting to become the leading Financial Service company in the new Cryptocurrency field, as such it will be cooperating and complying with all the different regulations and rules put in place as the regulators catch up to the industry. Don't expect to escape the Tax Man with your profits from this token.
Conclusion: This token is not a hot pick which will give you quick moon shot gains. It's team doesn't try and market the token in this manner and they don't need to. The value is in the long term income which will be generated and distributed to token owners. As the industry increases in value and absorbs the wealth exiting the legacy financial markets, owning XRL tokens provide an opportunity to get in on the ground floor. This party is just getting started.
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Disclaimer: I own and am actively accumulating this token. Don't rely on me to choose your investments, do your own research and be responsible for your own decisions.