Futures Truth revisits the successful and innovative Blockchain Equipment Company NFN8 Media that was showcased in #4-2018 Issue. In that issue, the underlying philosophy of how the Company operated was discussed.
The Company had been successful in developing a multifaceted business to profit from a new financial marketplace using equipment, technology, software, and programmatic algorithms. They added additional proprietary software that calculated the relationship between equipment/infrastructure costs to market prices and how they all relate to each other. This helped them determine exactly what cryptocurrency to manufacture at any given time.
So NFN8 Media has had a consistent track record of creating crypto-assets below the spot market value at the time of their creation. Now, if the Company operated on a create and hold philosophy, that would negate the benefit of lower than market price creation. NFN8 has a wholly-owned sister Company named CryptoTech Holdings. That Company is responsible for taking the cryptocurrency created by NFN8 and high frequency trading those assets on world-wide cryptocurrency exchanges to leverage what NFN8 creates.
The Company trades one cryptocurrency against another. They trade crypto currency against fiat currency. They arbitrage against multiple world-wide exchanges. They don’t hold anything long term. They systematically and automatically execute thousands of profitable trades 24 hours a day-7 days a week – 365 days a year. The output of all these efforts comes in the form of US Dollars.
All the assets created each day as well as all the trading revenue created each day are simply put back into the trading account and traded again. There are more advantages here that are achieved beyond what would be seen by the “traditional trading mindset.” Other factors, besides more money, can be leveraged to increase trading profitability. These include buying up mining computers for pennies on the dollar from failed operations, contracting for electricity now, way into the future, direct connecting with exchanges through APIs, and operating in a zero commission environment.
It is also important to remember why the Blockchain and Cryptocurrency began and, more importantly, why it has been so well accepted on a world-wide basis. Today’s wide acceptance of this new and innovative financial market started as a reaction to the 2008 financial meltdown along with remedies and “bailouts” that seemed to skip over those most affected to the benefit of large traditional institutions. The benefits of the market “fixes” did not roll down to those desperately in need of money in their pockets. The average person saw nothing while corporations paid senior executives huge bonuses and bought back their stock to raise company financial status.
One of the reasons by Satoshi Nakamoto invented cryptocurrency is that he embraced the concept of a decentralized currency that would directly benefit the regular person over “too big to fail” institutions. The idea behind this new currency and marketplace is that it could offer an alternative, trusted financial environment. This concept took hold and has resulted in a robust, widely adopted and trusted cryptocurrency market.
That was where everything stood before the current pandemic. Many are speculating whether cryptocurrency is a true hedge against disasters and unforeseen events. The answer to that will be decided in the future as analysts take a long look back as to how these alternative markets performed during the COVID-19 attack. However, NFN8 Media and CryptoTech Holdings can be judged as to how they are faring during these challenging times.
NFN8 Media and CryptoTech Holdings check all the boxes to thrive during this crisis,” remarked Company Executive V.P. Steven Greene. Here are additional comments he made when he was asked by Futures Truth how the Company is managing during this unanticipated crisis.
WE ARE IN THE MINING BUSINESS NOT THE BITCOIN BUSINESS
Mining provides consistent cash flow for our business operations in any market conditions. It allows participants to move money without central banks but still have the security of verification by millions of computer systems just like ours, called nodes. When you swipe a credit card, transfer funds via ACH/wire, cash a check, or pull cash from the ATM banks go through a verification procedure, and this process is run through sophisticated computer systems. So as we can see, procedures are similar, but now individuals can be a part of a decentralized process without banks. The adoption of Blockchain technology and cryptocurrencies like Bitcoin empowers individuals to become a part of processing financial transactions. Mining digital assets is an alternative to buying a CD, Annuity, or a Mutual Fund. When an individual joins with us, they own a piece of the equipment infrastructure that makes this all possible. We create a variety of crypto assets. We are not locked in to any one token such as Bitcoin. We have proprietary software that tells us what to mine and when.
WE ARE IN THE TRADING BUSINESS
The reason we create the crypto tokens is so that we can high-frequency trade them. Anyone who is in the trading business will confirm that volatility is good for short term trading. That is what we do. Of course, it’s true if you are not a talented trader, you can lose. However, no talent traders always lose. We have been doing this successfully for over four years, during many ups and downs in all markets. Here is a differentiator. We count on volatility. While some speculators fear volatility, we count on it. Profits are made through volatility. Another of the advantages we can profit by in cryptocurrency trading the absence of broker’s fees, commissions, and high market exchange fees. In order to diversify, hedge, and maximize profits from mining efforts, we developed a robust portfolio management system and trading platform that continually seeks a better exchange rate and executes many profitable transactions. We are aggressive, but conservative. To use a baseball analogy, we don’t try for home runs. We try to hit doubles consistently. That philosophy limits downside risk while driving predictable revenue. While many cryptocurrency mining companies use the mine and hold or mine and dump strategy, we mine and trade tens of thousands of times a month. Our trading system was built to take full advantage of volatility within a hand-selected digital ecosystem and arbitrage across several cryptocurrency exchanges. Volatility is what our system is built to take advantage of.
A DOWNTURN IN MARKETS INCLUDING CRYPTOCURRENCY PROVIDES UNIQUE OPPORTUNITIES FOR CRYPTO-ASSET TRADERS WHO ARE CASH FLOWING.
We have been cash positive from our first week in business. Internally, our Company operates like a fund. However, we don’t take any money from “investors” and pay them a return. We sell proprietary computer equipment to owners and pay them a fixed lease payment. Our internal operation uses the computers to create a product. That product is a monetary crypto-asset. From a practical point of view, the product is money. Now, there is a cost to produce that money, which includes our cost to procure and modify the computers which we then sell. As the price of Bitcoin and all cryptocurrencies drops, our cost to buy the computer equipment drops as well. Since we are cash positive, we can take advantage of these market forces. With lower equipment acquisition costs, we can produce the raw material (cryptocurrency i.e. money) less expensively. Therefore, our trading dollars are multiplied going into the trading marketplace. These are the kinds of advantages Bitcoin buyers and holders or folks trying to hedge do not have any chance to take advantage of. This is another way we mitigate the risk inherent in our business.
WE HAVE A UNIQUE SALE/LEASEBACK PROGRAM
We built our Company with our own money. We did not take in investors, partners, or note holders. We did not create an ICO or STO. We have no outsiders at the core of our Company. The only thing we sell to outsiders and the only money we get from outsiders is for computer equipment. This is the exact same proprietary equipment systems that we developed and use for our business. The sale/leaseback program allows for others to participate without the headaches of equity ownership and mitigates the risk. Mining digital assets requires a high level of technical expertise across several arenas, so it can be logistically challenging. Trading and exchanging digital assets manually is stressful, and building a successful software system is challenging. We have done all of that. Hundreds of thousands of trades are automated but overseen by us, the Company owners who created and constantly tweak our proprietary trading platform.
WE ARE FORTUNATE TO BE VERY WELL POSITIONED FOR THIS CHALLENGING TIME
With markets tumbling, businesses closing, dividends canceled, and a future that is unclear, we have just sent our monthly lease payment to all of our owners. We have paid each month to all of our equipment owners, on time, without interruption during all economic conditions. Our Company’s owners and management are socially distanced from each other. We operate from three different cities with direct access to all control panels.
Our assets, business, and operations are redundant computer hardware and software systems housed in state of the art secure data centers. Low- density requirements and large square footage provide our technicians plenty of space for more than adequate safe distancing.
We rely on a few team members with plenty of backup. If all of them were to become incapacitated, we have 24/7 immediate access to all our facilities so we can take over duties in the unlikely event that should that become necessary.
Our Mining Farm computers work in varying markets and produce cash flow in all market conditions. We have checked all the boxes for consistent achievement in difficult times, lived up to our commitments, and will endeavor to continue to do so each month. As market conditions improve, life will get back to normal. Hopefully, this presentation has allowed you to see how we are successfully surfing this wave of uncertainty while continuing to serve our equipment owners each month exactly as promised.