I almost bought a bunch of compcoin thinking that I would get paid back in compcoin based on the returns of their AI forex trading bot. Seemed like a cool idea and in my digging they seemed pretty legit. I dont think there is anything nefarious here but I want to call something out in case other folks made the same false assumption I did.
Compcoin is basically a software access license. You need to have an active, funded forex trading account and grant the bot access to it. The bot will trade (and I may not have this 100% right) 100x in $ of whatever amount of compcoin you have on your behalf. If I was an active forex trader I would probably definitely add this to my portfolio but I dont think it is targeted at a much wider audience at the moment.
Details are described in Section 7 of the Whitepaper
How Compcoin Works
To access Compcoin’s proprietary, automated, algorithmic forex trading platform (ART), investors must first set up an account with Compcoin and download the cloud-based software application to their computer.Next, investors must purchase Compcoin, which grants them access to the proprietary trading platform. Investors may purchase Compcoin either directly, through existing Compcoin owners via the Compcoin network, they can be acquired on the open market by trading Bitcoin or Ether for Compcoin on an exchange. Compcoin will announce partnerships with several coin exchanges soon.Once purchased, Compcoin are stored in a secure digital wallet, or an encrypted computer stick. The minimum number of Compcoin needed to access ART is 25 coins, which authorizes a minimum investment of $2,500. Next, investors need to set up and fund a forex trading account with the broker of their choice, and connect the account to the Compcoin platform. Compcoin provides a list of all compatible brokers at www.compcoin.com and will continuously add new brokerages to this list.
To begin trading, investors use the Compcoin software to indicate how much of their forex brokerage account they would like to leverage for trading and “deposit” the appropriate number of Compcoin into ART. A few times a week, ART automati-cally forwards its USD/EUR predictions – based on algorithmic trading models that have been rigorously back-tested using historical data and predictive analytics – to the investor’s broker in the form of an order for automatic execution. Investors will have complete transparency over all transactions, and can increase or decrease the investment amount at any time.
I still may dip my toes into it just for the capital appreciation but I thought this was worth calling out to anyone else that may be looking to invest and is getting a little too caught up in the ICO wave to read all the fine print.
Happy Investing!