Token: STC

Index Outperformance Token

ICO dates
Start date: 2018-01-22
End date: 2018-03-31

Registrated in: British Virgin Islands

Platform: Ethereum
Type: ERC20


KYC passing required Yes | Whitelist Yes | Restriction for countries USA
Hard cap 100,000,000
Tokens for sale 87,000,000
Token distribution in ICO
Price 1 STC = 1 USD
Price in PreICO 1 STC = 0.90 USD
Acceppting ETH
SMARTER THAN CRYPTO search trends in Google
Random whitepaper excerpts

Cryptocurrencies have grown exponentially since their creation in 2009, with the total cryptocurrency market capitalization
currently standing at over $650 billion. While growth has been strong, the market capitilization of cryptocurrencies as a
whole is still only a fraction of that of Gold or US Equities - which is itself only a fraction of the global stock investment
market. There is still room for considerable growth.
There are now thousands of cryptocurrencies to choose from, with more appearing each day. Choice paralyzes - choice
adds cost, complexity and the need for advice. High risk, extreme volatility and practical difficulty compound to render
buying and safely storing an effective and diverse portfolio of coins (cryptocurrencies) a complex problem.
SMARTER THAN CRYPTO (“STC”) is the world’s first cryptocurrency-only SMARTER THAN BETA tokenized portfolio, and
aims to provide a solution to this problem. The portfolio will autonomously maintain a diverse portfolio of up to the top 20

The SMARTER THAN BETA strategy is intellectual property of the fully regulated and licensed investment manager Salus Alpha
Capital. The SMARTER THAN BETA portfolio optimization technology is in production since 14 years on hedge fund strategies
and will be used for disrupting the ETF market. The SMARTER THAN BETA portfolio optimization technology is able to
outperform any index in any asset class by delivering 40% more return with 40% less risk. We call this products “SMARTER
THAN BETA” whereby we are not referring to SMART BETA products which are simply a linear scaling of returns and risk
proportionally by doing factor extraction.
Salus Alpha Capital has stored all relevant cryptocurrency data since mid 2013. After approximately six months of trading this
deep dataset will be utilized to optimize rebalancing and produce trading strategies for future SMARTER THEN BETA token
issuance. SMARTER THAN CRYPTO ICO participants will have priority access to other SMARTER THAN BETA products and the

have consistently beaten Index funds and the average managed fund.
SMARTER THAN CRYPTO is not a platform, it is a fully functioning product and its token value is not based on speculation but
rather the product benefits and net asset value of up to the 20 market capitalization cryptocurrencies. There are no broker
fees, advice fees or exit fees. SMARTER THAN CRYPTO’s utility token is called SMARTER THAN CRYPTO. It can be traded at any
time, holdings are fully transparent and there are no legacy banking fees or expensive fund managers.
SMARTER THAN CRYPTO tokens are directly tied to the underlying assets with a novel liquidation option that can be
exercised via the smart contract. This function ensures a floor on the market value of all SMARTER THAN CRYPTO tokens.
SMARTER THAN CRYPTO allows for access to a diverse cryptocurrency portfolio by holding a single token. The tokens will be
tradable on exchange post-ICO and no further tokens will be issued. The top 20 cryptocurrencies by market capitalization
change, and so ...

whereas selling shares takes them out of circulation. Shares are bought and sold on demand at their net asset value, which is based
on the value of the fund’s underlying securities and is calculated at the end of the trading day. When a large number of shares are
redeemed, the fund may sell some of its investments to pay the investor. Shares are bought directly from the fund administrators.
Exchange-traded fund (ETF):
An exchange-traded fund is like an open-end mutual fund but instead trades as a common stock on a stock exchange. It is not
purchased directly from fund administrators. An ETF may trade at a premium or discount to the NAV but this is often very
short-lived due to arbitrage by institutional investors.
Closed-end fund (CEF):
A closed-end fund is seeded once-off via an IPO and then traded on exchange thereafter. No further shares are issued and
CEFs may trade above net asset value as buying and selling the shares on exchange has no effect on the underlying assets.
The structure of SMARTER THAN CRYPT...

given time, the market consists of the cumulative holdings of all investors, and that the aggregate market return is equal to
the asset-weighted return of all market participants. Since the market return (beta) represents the average return of all
investors, for each position that outperforms the market, there must be a position that underperforms the market by the
same amount, such that, in aggregate, the excess return (alpha) of all invested assets equals zero before costs.
It is a misconception that investing is a zero sum game whereas poker is a zero sum game since winner takes all. The ‘beta’
delivered by the market goes to passive managers as well as active investors it is the ‘alpha-chasing’ part of active
investment that is a zero sum game due to the fact that active but unskilled investors “pay” the market outperformance
(alpha) to the active but skilled active investor and costs further reduce the potential outperformance.
The distribution of market returns will thus be centered around a mean - an index ...

function automatically calculates the ether amount to send to the participant account based on a forward
pricing policy which uses the asset based NAV price of the tokens less a 1% trading fee. This trading fee is not a fee for the
benefit of the manager but for the benefit of the remaining investors of the closed-cap structure. The price will be updated
regularly to accurately reflect the value of the underlying crypto assets.
High-volume traders may seek to exploit pricing to the detriment of the community by initiating sell-offs that cascade and
result in flash crashes so that they can purchase the cheap tokens. The liquidation option offers a price floor protection – this
ensures the price never drops below that of the underlying assets because of market manipulation. Prices are, however, free to
increase as speculative value is created by the high demand for a low-cost, diversified and automated cryptocurrency portfolio
that can be held as a single token.
A ...

Eventually crypto returns will likely settle and resemble real-world investment returns as the market
becomes more efficient, and as altcoins reduce bitcoin market capitalization dominance. Exchange fees will then be more
relevant as they become larger with respect to profits.
The rationale behind a SMARTER THAN BETA index strategy was previously established – we will now focus on increasing market
exposure and decreasing the costs of running such a system.
Test Assumptions and Conditions:
It is apparent that weighting based on market capitalization is uncorrelated to the fact that a bigger index component reverts
back to the mean more likely than a smaller index component. Therefore to eliminate the effect of weighting we propose an
equal weight system to determine the portfolio parameters in regards to rebalancing frequency.
Back-tests for portfolio value were carried out over the period 31
May 2013 – 6
December 2017 and from...

A back-test of S&P100 EW, S&P1-50 EW and S&P51-100 EW with monthly rebalancing frequency was performed
Analysis and Conclusion:
A1: Figure 1 below shows that the S&P100 EW has a better performance than the S&P100 in regards to return as well
as risk.
Figure 1
A2: Figure 2 below shows that the S&P51-100 EW did outperform the S&P100 EW and did outperform the S&P1-50
EW. It therefore has been proven that for active investors it is a zero sum game but the market can be outperformed
through skill. It has also been shown that the unskilled investor underperforms the market and pays the
outperformance versus the market (alpha) to the skilled investor.
Figure 2


JUNE, 2017
Initial Research and Development.

Developed the Team and concept, conducted thorough backtests to determine if SMARTER THAN BETA strategy can be applied to cryptocurrency.
Develop Smart Contract and Autonomous Trading System.

Developed innovative SMARTER THAN CRYPTO smart contract to best practice specifications; developed back-end for multi-exchange trading.
Finalize Smart Contract and Trading Protocol.

Complete smart contract to audit-ready state. Optimized of autonomous trading algorithm to mitigate front-running and slippage. Consultation with industry expert advisors.
Test Trading System; Security Audits.

Security audit and code review process. Trading system tested and completed.
22. JANUARY – 31. MARCH 2018

10% Bonus for first 10,000,000 SMARTER THAN CRYPTO Tokens.
16. APRIL – 13. MAY 2018

5% Bonus for first 48 hours of ICO.
Public auditing from audit SMARTER THAN CRYPTO ICO and release statement verifying holdings.
MAY – JUNE 2018
Initial Top 20 Coin Acquisition and first Rebalancing Procedure.

Initial coin holdings acquired, final information sheets and reporting structures released to retail investors. First portfolio rebalance is performed and monitored.
JULY 2018
Public Launch on Exchange; Regular Operation.

SMARTER THAN CRYPTO Token is listed for trade on exchange.
Dataset will be used for future development SMARTER THAN BETA funds. SMARTER THAN CRYTO ICO participants will have priority acceptance into these very limited SMARTER THAN BETA funds and SMARTER THAN CRYPTO Tokens will be transferable into these funds.
Harald Heidinger
Harald Heidinger Managing Director

Mangesh Pharande
Mangesh Pharande Senior Database Spesialist and Data analysis

Mayuresh Mirajkar
Mayuresh Mirajkar Software Engineering and Development

Prashant Navale
Prashant Navale Full Stack Designer and Front-end Development

Anke Engel
Anke Engel Communications and Channel Management

Viktiria Lenth
Viktiria Lenth Brand Management and Marketing

Oliver Prock
Oliver Prock Founder & CEO

Brock Pierce
Brock Pierce
Chairman, The Bitcoin Foundation; Co-founder, Blockchain Capital,
Oliver Prock
Oliver Prock
Founder & CEO
Victor Chow
Victor Chow
CEO, M&A Advisor, Venture Capital leader, Entrepreneur, NAGA & ICO Advisor, Partner in Blockchain Financial Services Innovation
Co-Founder & COO
Chief Operations Officer
ICO Business Adviser
IDACB Advisroy Board Member Singapore, Hong Kong, Japan and China
Business developer and advisor
Yuan Li
Yuan Li
SelfSell Founder