Why dont we just make a crypto hedge fund or something like that?
we can take money from normies and promise 2x returns, take their money and buy up shitcoin, pump and dump. make a killing and give normies enough returns to keep em coming?
hedge funds are supposed to invest in volatile short-term high-risk stuff right?
Where am i wrong in this? or are the whales already doing this? pumping and dumping with other peoples money?
i`ve unironically had the same idea. I would also make it 100% legit with a real business structure, website, books,... would use normie bait as: double your money with bitcoin and stuff like that.
because it would end up being the worst performing piece of shit hedge fund in the history of hedge funds. Would get a "buy high sell low" award from risk.net. Thats why, you fucking retard.
disagree. Sure, it's high risk but considering the hype train you can make good bucks on a crypto hedge fund imo. Lots of ppl will get in, regardless of the risk. Multiple official instances have already warned normies for btc, with no effect on the price or hype.
I actually spoke to 2 law firms about this idea, as I worked as a financial planner for 5 years (was gay af). Anyway, basically you need to get sponsored by someone massive or be looking at 100k-200k in legal fees at minimum to start a true hedge fund, annual audits/legal fees/ trust accounts are in the 100k range
I actually just spoke with an attorney in Singapore about this: $50k for the first year to get set up (but you also get to avoid taxes) so you need to have a minimum tax bill of $50k to justify the cost of the fund.
I think there's more money in creating a normie accessible crypto news/advise media organisation (aka the crypto wall street journal, crypto business channel).
Create a twitter/facebook. Then create some normie friendly content (what is crypto blah blah blah). Buy a ton of fake followers, likes, shares, etc...
Once the normies are following enmasse you get advertising revenue and you can easily pump and dump coins that you run an article recommending.
Only 100k-200k legal fees doesn’t seem that bad TBQH
that seems pretty doable to me.
Its called ICONOMI, with the token ICN which they basically used to fund their hedgefund, but it has no inherent value. The value of the token has atleast crashed 90 percent and is my first ever cryptobag. Always buy tokens with value people. I still have them as a reminder to never do it again.
true!
You could even go further and offer some kind of payed "advice". omg i am becoming teeka, aren't i?
the conclusion I came to was this boys, I need business partners that are like minded. I don't have friends that are into crypto and I don't think I want to front up that kinda money, and then start doing the prospecting. If you guys haven't worked in financial industry, in sales, you're in for a surprise. Also, the structure hedge funds use for stocks is generally 20/10, 10% annual fee + 20% profits taken. It's definitely doable, but you guys likely aren't really familiar with the work it takes to prospect people, run a financial business with all the KYC and regulations, actually sell people the idea to write you a cheque for 100k, deal with their customer service and nagging issues and emails.
It's way more work than you can realize, if you plan to just have friends/family, you won't make enough cash. You need 100 clients, you need a book of 100 million probably
You need staff, you need support, you need to work everyday at it, and your clients might hate you if something goes wrong with their money and even take you to court. I was sued by a former client for some bs reason, luckily professoinal liability insurance took over but I dunno if such a thing exists in crypto
I basically decided i don't want to be an early adopter in this space
Already doing this.
I agree this is a good model, subscriptoin model with a newsletter and the ability to call you / email you for advice and get a reply in x amount of time. People could pay 100 per month for something like that
Maybe learn what a hedge fund is before starting one?
I think the big difference here is that crypto will not be a niche market like the traditional hedge funds . Both oldfags and new kids are investing. This means you do not need a cheque for 100k from 1 person, you can easily get a larger amount of smaller cheques (imo).
Sure it will be hard work, but isn't that always the case when starting a business? I honestly cannot sit down thinking bout this idea, super bullish.
I think the gambling tipsters seen on Instagram and other sites have a good model.
I know a hedge fund is basically a small private organisation with all members being investors, one member acts as captain and does all the work while the rest are dormant partners.
They mostly invest in bankrupt firms etc. To get cheap money.
I'm not talking about a registered business here, just a website with a semi legit business where we actually payout to investors,it's crypto so we don't really have to worry about taxes.
>the structure hedge funds use for stocks is generally 20/10
yeah no, it's 2/20 (2% annual, 20% of returns).
some kids i went to highschool with went all in on this fucking FOREX advice pyramid scheme that was literally this. i wish i could remember the name of it because it's literally paying for market advice but as a pyramid scheme.
hedge fund won't work. you gotta sell stupid ass normies on instagram with jets and shit. but how...
TAAS