Etherical Alpha Quarterly Update – Qtr ended September 30, 2018

The bear market in crypto continues to grind prices downwards. This has hit particularly hard in the area of alt-coins, most of which are now down more than 90% from their highs.

Etherical’s investment strategy has isolated us somewhat from these negative effects, since some of the tokens in the Alpha portfolio have not been listed yet.

Compared to the quarter ended June 30, the book value of Etherical’s Alpha portfolio is down 8.15%, to $231,818.71

Our baseline comparison shows what would happen if we had not made any investments and just kept the underlying tokens. The baseline portfolio would have been down 35.61%, to $96,389.06.

We have outperformed the baseline by 140.5%

Etherical’s public ICO of our ZEA token has been put on hold until market conditions approve. We are hoping for a shift by Q1 2019, but it is impossible to predict.

The overall climate for alt-coins is developing slower than we anticipated, but still extremely rapidly. There are now 2105 cryptocurrencies listed on Coinmarketcap. Total alt-coin market capitalization is at $207.7 billion, down from a peak of around $800 billion. Bitcoin dominance is 54.1% of the market.

Some highlights from our portfolio:

Copytrack (CPY) has issued a 2:1 split and changed their name to Concensum. They are using a proof of stake model, which means that our coin allocation is continually growing.Image result for concensum

Telegram are about 70% of the way through their development roadmap:

Olyseum are re-building their app to integrate blockchain and plan to raise further funds when they have a beta version in use. They have shared some examples of their app’s user interface:

SHELTERCOIN have established a non-profit foundation in Estonia and have been granted 2 government cryptocurrency licenses. They are looking at integrating a large-scale purchasing software system that would solve many problems in disaster relief management. Their ICO has been postponed due to market conditions.

Invictus Hyperion Fund have made investments in 9 companies so far:

Their portfolio was down 26.7% for the quarter, but their IHF token was up 61% when priced in ETH. You can read their quarterly report here.

Etherical is now raising funds for its Bravo portfolio, which will invest in public tokens as well as pre-listing tokens. Purchase tokens here.

Etherical Invests in Olyseum Sports ICO

Etherical Bravo token pre-sale is now open. Purchase now before public sale with +50% bonus tokens

This Etherical Alpha investment took place some time ago, we have been waiting to receive confirmation that the ICO was proceeding.

Token: OLY

Web site:

White paper


In 2018 we live in a world of influencer marketing, and the biggest influencers of all are sports stars. There is no bigger sport in the world than soccer, or football as it is known everywhere except Australia and the United States.

You have probably heard of David Beckham, former player for Manchester United and Real Madrid, captain of England and husband of Posh Spice. He makes more money from endorsements than he ever did from football – $75 million in one recent year.

As big and famous as Beckham is, according to Google trends he pales in comparison to Andrés Iniesta and Carles Puyol of FC Barcelona. These are not just some of the biggest footballers in the world, they are among the biggest social media accounts too. Iniesta is currently ranked #78 in the world on Twitter, with 23.3 million followers. He’s also #84 on Instagram, where he has 24.2 million followers. Carles Puyol is no slouch either, with 11 million on Twitter and 8.1 million on Instagram

Last year they created the Olyseum mobile app for Iniesta’s community. Now they are making it available to other sports stars as a way to connect them closer to their fans. They are creating the OLY token to monetize those interactions.

To do this they have teamed up with infamous hacker Kevin Mitnick. Mitnick went to jail in 1995 for 5 years but since then has been consulting to the world’s biggest companies to improve their cybersecurity.

There have been a number of celebrity-linked ICOs before, with names such as Floyd Mayweather and Paris Hilton providing endorsements. Olyseum is different from these because they have an existing application, a direct link between the sporting activities of the players and the use of the app, and some solid technical people. Etherical is looking for drivers of demand that can be sustained.

The proposition that a sports star can have their own app and connect directly to their fans seems like an easy sell. It is clear that brands want to pay money to advertise to those audiences. There is no restriction of OLY to soccer, the technology could apply to individuals or teams in any sport – as well as non-sport organizers. Adding a token which creates an economy around the community brings the existing Olyseum app into Internet 3.0, which means it has potential to become a disruptive new business model. The big-name endorsement of Iniesta and Puyol brings an existing massive audience as well as media attention. This is paying off with a profile in Fortune already.

The Olyseum Pre-ICO hit its $3 million cap in about a week, with 130 investors.

Olyseum’s CEO is Carlos Grenoir, who envisages a new world connecting brands to sports audiences via social media.

Olyseum have just posted their roadmap:

Football is a massive economy. The revenues just of FIFA are predicted to be close to $4 billion this year. Behind that money are a large number of players. Most players these days have social media profiles and large followings, but very few are able to monetize their fan bases directly over the Internet.


Football is definitely the global game, as search data from Google shows. Even in the countries where it is not the national sport, it still has enormous followings.



Etherical Half-Year Update – June 2018

Payout, Split and New Token Complete

Our new token ZEA is on the blockchain.

Address: 0x95B933F6Fd4A14BCF985fbBCce7eF11779DA48A0
Decimals: 8

ZEA now sell for 0.00003 ETH per ZEA

We have completed our combined two payouts followed by 1000:1 token split. You should have received your new tokens.

When Etherical Alpha exits a position profitably, half the net gain is paid back to token holders, half gets reinvested in new token sales. Payout #2 (BFT) was 0.04013 ZEA per ZEA; payout #3 (BFT) was 0.02159 ZEA per ZEA. These amounts were both added to the old ZEA balance, then the 1000:1 split was applied.

The new ZEA is actually a whole new token, the old one is being deprecated.

ICO Date Set

The ICO date is set in the token for September 23 2018. This is subject to change, if we are ready earlier then we may launch earlier, if the market is still weak then we might delay the launch.

The ICO will offer bonus tokens to early purchasers, with the amount of bonus decreasing over time.

Right now the base bonus is +50% and the price is 0.00003 ETH per ZEA. Funds raised between now and the ICO will be spent marketing the ICO.

Referral codes work as before with additional bonuses.

Performance to date

Etherical’s first sale was November 10, 2017, so we are officially half a year old. Here are the numbers as of June 11, 2018

ZEA issued: 32,596,669
Market Cap: $521,494.55

Investments made: 12
Current portfolio (Alpha): 11
Portfolio book value: $260,036.24

Payouts made: 3
Payout total: $19,180.90
Payout return (ZEA): +21.89%
Token splits: 1
ROI (incl payout): 57.8%

Here’s what we’ve raised, about US$177,000:

BTC 4.50  $6,801.74  $30,615.58
ETH 259.17  $521.78  $135,229.72
LTC 59.18  $105.65  $6,253.26
EOS 342.54  $11.27  $3,860.53
BCH 0.31  $929.29  $296.72
CASH/EQ  $700.00

Adding the payout to book value, Etherical Alpha has outperformed the market by 57.8%. Factoring in the expenses, Etherical has increased its position +90%. We think it is still early days for most of the tokens in our portfolio, and there is the potential for significantly more growth. For example Presearch just hit 125,000 users, we expect them to continue growing exponentially.

zMint Costs 10%  $17,695.58
Maintenance Fees 2%  $2,693.14
Performance Fees 20%  $9,590.45  $29,979.17


Plus Payouts ROI
Payout 1 PRE 266.82%  $12,030.56
Payout 2 BFT 92.62%  $4,622.84
Payout 3 BFT 111.33%  $2,527.50  $19,180.90
Average ROI 156.92%

Closing the Alpha Fund.

We have spent 90% of the token sales on buying other tokens, and only 10% on expenses. We have come a long way on $17,000 but a high-profile ICO can cost millions.

Some people like to see a large team, famous advisors and a prestigious law firm attached to an ICO. All these things cost big money for dubious benefit. For what Etherical is doing, it is the performance over time that matters. We think we have built a solid portfolio with good medium term prospects, and we are happy with the way we have outperformed the market and generated returns from successful trades.

We are going to keep things lean, but no matter what there are going to be marketing, back office and exchange listing expenses. If we raise enough funds to do the next phase properly we will be able to promote ZEA at crypto conferences, as well as banner advertising and influencer marketing.

Right now we have 138 token holders, 32,596,669 tokens issued out of 1,000,000,000 maximum, and a portfolio worth US$260,000. In the public ICO we could add thousands of new ZEA holders. This could dilute the payouts from the current portfolio significantly.

To have the most successful ICO we should do an Airdrop and Bounty program, and aim to build a Telegram group of 5000+. A large community in theory means a healthy market for the ZEA token to trade in, so this is desirable. It would not be fair if people joined later for free and that meant those who spent their own money ended up with smaller payouts.

We would like to reward our earliest supporters the most. So how do we raise the money we need for a full ICO without substantially diluting payouts for everybody?

It has taken some time but we think we have found a solution that creates value for everyone. We are going to have multiple funds, early supporters get payouts from everything. New supporters will join each new portfolio.

We have now closed the Alpha portfolio. It will continue buying and selling tokens and making payouts, but it will only grow from profit. We have taken a final snapshot of all wallets and ZEA amounts. To earn payouts from this portfolio, you will need to keep your ZEA tokens in your registered wallet (Proof of Stake). The number of tokens in the wallet on the blockchain as of June 12, 2018 is the maximum possible payout share for that wallet from Etherical Alpha portfolio. The payout is per token, which means if you hold less than your maximum amount in your wallet, you will get less payout. If you have more ZEA than the maximum, you will not get any more payout than the maximum.

If you want to change your registered wallet address that will be possible. One wallet can be linked to multiple portfolios, or you can have a different registered wallet for each Etherical portfolio if you prefer.

This creates more value for everyone because now the wallet itself becomes valuable, even if you sold all the tokens. You could sell someone the private key to your wallet, they could purchase ZEA from our crowdsale or an exchange and transfer them to that wallet and earn payouts from its portfolio up to the maximum token level. Any time anyone with a registered wallet sells their ZEA, that means that the other Alpha participants will get a bigger share of future payouts.

The Etherical Alpha wallets will be whitelisted for Etherical’s new Bravo portfolio, so you will be eligible for payouts from both portfolios.

If we do not sell out all the ZEA during the ICO, we will do the same thing again: close the Bravo fund once a portfolio has been established, and raise other funds in future ICOs.

In summary, existing ZEA token holders will get payouts from every Etherical fund. Future participants will get payouts from any portfolio their wallet is registered to, but will not be able to register their wallet to portfolios that have closed before they joined.

We reserve the right to completely liquidate any portfolio at any time. When a portfolio is liquidated, all positions will be sold at market price and the total amount converted to ETH and shared amongst the registered token holders.

Our Next Portfolio: Etherical Bravo

We are going to make some changes to payouts and scope for Etherical Bravo.

The ICO market has changed substantially since we launched Etherical Alpha in Q4 2017. Institutional money has entered the crypto market and daily trading volumes have skyrocketed. A bearish market for Bitcoin and Ethereum has had a strongly negative affect on alt-coins. Many promising ICOs have seen their token plummet to a fraction of its value after listing on exchanges. This creates a great buying opportunity in line with Etherical’s philosophy of Buy Low, Sell High. Etherical Alpha was designed to invest in pre-ICOs, not tokens that are already public.

The market has changed from a savers market (HODL), to a speculators market (trade). The dynamic between Bitcoin, Ethereum, Tether, and alt-coins creates many interesting opportunities for traders. We remain extremely bullish on crypto and both trading volumes and daily transaction volumes on the blockchain are continuing to grow strongly. This is just the beginning.

Accordingly, Bravo will take a broader approach – considering both pre- and post-ICO opportunities. We are still looking for early stage tokens where market cap is small, there is a strong sense of community and the tokenomics suggest demand will rise over time. We will not always be investing before or during the ICO. Although the fund will trade its positions, it will not be high-frequency. Some of the funds raised in Etherical Bravo may go to tokens already held in Etherical Alpha, if buying opportunities seem good.

The fund will pay out quarterly, provided the position has increased more than 10% for the quarter. Payouts will be made in the first 15 days on each calendar quarter. The payout amount will be variable based on market conditions.

Registered wallet holders will be given the option to take their payouts in ETH, or ZEA at a bonus multiplier rate. The bonus multiplier will be available until all ZEA have been issued. After that payouts will be in ETH.

Know-Your-Customer (KYC) Compliance

We added code to our token for compliance with European Union KYC/AML laws. We will also be changing our website over the coming weeks to support individual logins. zMint Group OÜ will be handling Etherical’s token sale, they are licensed by the government of Estonia to operate cryptocurrency wallets and exchange tokens. Etherical’s web site is hosted in Estonia and our smart contracts and wallets are operated from Estonia via virtual private network.

KYC compliance means that we are introducing whitelisting. To participate in the ICO, the ERC20 wallet must first be approved. Participants are required to upload 2 forms of ID: a passport or drivers license, and something with proof of address such as a bank statement or utility bill. We require the full name, address, and email address of every ZEA purchaser.

All existing wallets in the Alpha portfolio have been registered and will be whitelisted for the ICO.

Whitelisting is not available to residents of the United States, New Zealand or Estonia. Exceptions can be made for corporations or professional investors who wish to invest more than 10 ETH, subject to documentation. Please email for details.

We thank you for your support of Etherical, and look forward to what the next half-year will bring.

Best regards,
The Etherical Team

Please join us in our Telegram community group:

Etherical Buys IHF Tokens: Invictus Capital Hyperion Fund

Token: IHF

White Paper

Web Site


Invictus Hyperion is a pre-ICO investment fund, as is Etherical ZEA. We are investing in this as a hedge for our token holders. If Hyperion’s IHF outperforms ZEA, Etherical token holders are still exposed to that upside.

There are thousands of ICOs already underway in 2018 and our job is to pick winners out of those we evaluate. We cannot guarantee that we will find every good deal or that every token we buy will be successful or every trade at the best the price. There is always a chance that we miss out on a hit token that earns million % returns, like XVG did in 2017. Broadening our portfolio with Hyperion exposes ZEA holders to more opportunities for hyper-growth.

The team behind Hyperion are from South Africa, and have already had success with their Crypto20 fund – an index fund of the top 20 cryptocurrencies by market cap. The C20 token often trades at a premium to Net Asset Value and we are expecting that IHF and ZEA will be the same. The Hyperion fund is operating out of the Cayman Islands.

So far they have raised more than 10,000 ETH and 420 BTC, over US$11 million. They will now be embarking on a worldwide “summer scouting tour” looking for ICO investments.

The “Bodin burn” payout structure of Hyperion is different from ZEA. Instead of paying out directly to holders, they will spend 50% of profits every quarter to purchase tokens on the market then burn them. They see this as a way to deliver price stability and reduce potential tax issues with receiving payouts:

The team has made an important update to the structure of the Hyperion Fund. Rather than issuing dividends quarterly, 50% of profits realised in each quarter will be applied towards purchasing IHF on the open market, and burning those tokens. This effectively reduces the circulating supply – increasing the value of the remaining IHF tokens. This is simpler to manage from the fund’s perspective, when compared to dividends, and it should also assist with liquidity. This further addresses concerns raised by many speculators about potential taxation issues related to issuing dividends frequently. It also effectively places constraints on the size of the fund.

There is some controversy over this. The payouts will only begin once the fund has hit $30 million in assets under management – right now, an increase of 170%. Based on the performance of the Top 30 cryptocurrencies in 2017, they could achieve this just buy holding onto their ETH and BTC and not making investments. However 2018 has been a more difficult year for crypto so far. It will probably take several consistent quarters of growth for the fund to be fully invested and become large enough to make its first payout.

Hyperion are also not employing the traditional “2 and 20” fund management and performance fee model. Effectively 37.5% of profits get invested back into the fund, compared with 40% for Etherical. We believe our model of paying out an additional 40% directly back to ZEA holders whenever we successfully exit a position is superior to theirs of buying back tokens once a quarter to destroy them. This is a philosophical difference similar to listed companies paying a dividend or conducting a share buy-back – both approaches are valid. We are purchasing IHF with the expectation of token price growth more so than profiting from payouts, so as short-to-medium term investors this suits Etherical. Existing ZEA holders may prefer Etherical’s  payout model which shares returns more directly.

Etherical has taken a different tack from Hyperion. They have chosen to hire a big team and do the marketing first, and then raise money and find deals; whereas we have started small and lean with the intention of having a solid portfolio and track record of payouts when we launch our public ICO. We will be watching closely to learn how the market responds to this token post-ICO, and will be improving our own marketing before our public launch.

The Hyperion Team:

The Etherical Team:

Etherical Now Accepts Bank To The Future BFT for ZEA

Bank To The Future tokens (BFT) are now traded on Bitfinex and and listed on Coinmarketcap.

We have added BFT to the list of coins we accept in exchange for ZEA tokens. BFT is one of 10 tokens so far in Etherical’s portfolio. This is a way for BFT holders to diversify their holdings and increase their chances of positive returns with a broader portfolio of investments, while at the same time still having exposure to future upside moves in BFT.

BitCoin and Ethereum are the main cryptocurrencies exchanged for ZEA. Etherical also accepts EOS, Bitcoin Cash, Litecoin, and tokens from our other portfolio companies CPY, EVN, PRE and STQ

To purchase tokens during our pre-sale and earn +25% bonus tokens click here.

Etherical Now Accepts Storiqa STQ for ZEA

Cryptocurrency shopping cart specialists Storiqa are now publicly traded on HitBTC, Tidex, and IDEX, and listed on Coinmarketcap.

So far the coin has struggled to perform, which can be said of every other alt-coin right now too. We believe there is significant long-term upside in Storiqa, especially at the current prices.

Accordingly we have added STQ to the list of coins we accept in exchange for ZEA tokens. STQ is one of 10 tokens so far in Etherical’s portfolio. This is a way for STQ holders to diversify their holdings and increase their chances of positive returns with a broader portfolio of investments, while at the same time still having exposure to future upside moves in STQ.

BitCoin and Ethereum are the main cryptocurrencies exchanged for ZEA. Etherical also accepts EOS, Bitcoin Cash, Litecoin, and tokens from our other portfolio companies CPY, EVN, and PRE

To purchase tokens during our pre-sale and earn +25% bonus tokens click here.

Etherical Invests in Telegram

Token: GRAM

White Paper

Web Site

Telegram’s private sale is one of the most hotly demanded crypto offerings to date. Telegram has almost 200 million users, and is adding 500,000 per day, making it one of the fastest growing apps in Internet history.

Etherical has 2 channels there, please join us:

Telegram have raised $850 million so far from 81 investors in their private sale, including Silicon Valley venture capital heavyweights Sequoia Capital and Benchmark. They have extended their capital raising to a second private round, aiming to raise a total of $1.6 billion – which would make it the biggest ICO ever.

The funds will be used to expand Telegram’s platform beyond messaging to payments, storage, and identity management. They are creating TON – The Open Network, designed to host a new generation of cryptocurrencies and distributed applications.

Once a customer has passed Know Your Customer identification checks on TON, they will not have to supply this information for every new ICO they want to participate in.

The total number of blockchain wallets worldwide was estimated at around 21 million at the end of 2017. Telegram’s gigantic user base offers the best opportunity we have seen yet to bring cryptocurrency to the mass market.

So far Telegram’s sale is not open to the public, beware of scams claiming differently. Forbes just published an article Dear Crypto Enthusiasts, Forget The Telegram ICO, It’s Not For You.

Shelly Hod Moyal, co-CEO of Israeli-based venture capital firm iAngels, is part of the Telegram capital raise. “I really can’t predict the price of [GRAM] because there are so many variables at this point, but if they accomplish even half of what they set out to do I think it can be a top 10 coin,” she says.

[Source: Forbes, March 2018]

Etherical invested at a 35% discount to the planned public sale price. This is a great example of how Etherical Alpha provides ZEA holders with the opportunity to participate in deals that they couldn’t get into otherwise. You might not have a spare $20 million lying around to invest in the hottest new ICO, but with ZEA you can have similar investments in your portfolio as the biggest professional investment funds.



Etherical Now Accepts Copytrack CPY, Envion EVN and Presearch PRE Tokens

Some of the tokens in Etherical’s portfolio are now publicly traded. We believe there is still significant upside in these tokens. Accordingly, we are pleased to announce that we have expanded the cryptocurrencies we accept for ZEA purchase to include these alt-coins.

For holders of these tokens, swapping them out to Etherical is a smart way to hedge your investment. You are still rewarded from upside moves of the token, because Etherical makes a payout when it exits a position profitably. You also get upside exposure to the other tokens in Etherical’s portfolio.

ZEA token holders benefit because purchases being made with these tokens will increase the size of Etherical’s position, leading to more potential gains in the future.

To purchase ZEA using PRE, CPY, or EVN just fill out our Token Sale form and select the appropriate token from the Currency drop-down list. Send an amount equivalent to at least 5 ZEA to our ERC20 token wallet:




Etherical Invests in BnkToTheFuture (BFT)

Bank To The Future ( offers a platform that standardizes investment pitches, making it easy for investors to buy into ICOs and early-stage ventures.

Token: BFT

White Paper

One Page Overview

They have 47,500 investors using their platform including Virgin group founder Richard Branson.

The company began in 2010 and has helped some well known names in Fintech to raise funds.

Bank To The Future raised $30 million in 15 hours from their existing client base for their pre-ICO. Their public ICO offered tokens at the same price (US$0.10) with a maximum of 100,000 tokens. It sold out in 2 minutes 17 seconds.

Etherical was able to get into the public sale, purchasing the maximum amount.

We believe the large existing community of high net worth individuals (HNWIs)  and strong demand for BFT tokens will lead to significant price appreciation.

Etherical Invests in BitCar

Etherical has bought into the first tranche of the public token sale of Bitcar, based in Singapore and coming out of Perth, Australia.


White Paper


Token Sale

Medium post

Bitcar are selling 250 million of 500 million tokens in 4 tranches, after having raised US$5 million in their pre-sale.

The basic idea of BitCar is tokenizing ownership of Exotic Cars. As well as their BITCAR token, specific CAR tokens will be issued to provide fractional ownership of each investment asset.

Other than cryptocurrency, exotic cars have been one of the best performing asset classes. This type of super-rare, highly valuable, coveted asset increases in demand as world population grows, and tends to be recession-proof.

In this sense Bitcar is a hedge, by putting crypto into a non-crypto asset. We think that Bitcar has the potential to do very well as a token. You might not be able to afford a Bugatti Veyron or Mclaren P1, but you can afford some tokens in the ownership of one (no, you don’t get to drive the cars; cars at this level are an investment, one which depreciates with mileage).

Investment in this high-performing asset class was previously open only to the very wealthy. Tokenization makes it available to anyone.

The demographic of who is active in cryptocurrency in the world today is mostly men, and mostly young. Young men are into exotic cars, but usually lack the resources to acquire them outright. Tokenization makes it possible to become a part owner of an exotic car.

Bitcar seem highly aware of their market niche, and have already partnered with  one crypto-supercar dealer Moonlambos who will accept BITCAR as payment. We like the underlying business of Bitcar, but we believe the “cool factor” of hypercar appeal could drive appreciation in token value even more than  revenues and profits in the business.

Most of Bitcar’s team were also involved in the recent PowerLedger ICO, their POWR token has been very successful since launch. They know what they are doing and have the resources to ensure the success of their ventures. The members have a personal passion for this market space, which could add to the already strong enthusiasm for this coin.

The technology and business have been under development since 2015. A working prototype of the technology was built and used in 2016, and updated in 2017. It usually takes 2-3 initial generations of software to build something lasting. The presence of the prototypes reduces risk for investors, since the development challenges have already been solved.

We expect Bitcar’s token to outperform the underlying assets, and that token demand will be particularly strong in Asian markets. The appeal of “owning a Lamborghini for $100” is potentially even stronger than the desire to invest in this asset class.