With $20 million in financing, is the Crypto Quant Trading profitable?

According to Coindesk, LedgerPrime, a self-operated digital asset trading company, has successfully raised $12 million in funding and $8 million in guaranteed financing. LedgerPrime Chief Investment Officer Shiliang announced on Thursday that

The raise is reflective of LedgerPrime’s track record and success through the 2018 crypto crash, and shows the opportunity associated with trading cryptocurrency derivatives and the demand for strategies that can generate returns in both bear and bull markets.

It is worth noting that LedgerPrime is a company owned by Ledger Holdings Inc., which is also the owner of the cryptocurrency futures platform LedgerX. LedgerPrime began offering cryptocurrency spot and derivatives market transactions starting in the fourth quarter of 2017.

New York-based LedgerPrime focuses on quantitative trading strategies, led by Tang, who is the chief investment officer of LedgerPrime, and Dr. Johannes van Ziejts, who is the company's chief technology officer.

Tang is also the co-founder and chief operating officer of WorldCover, an insurance technology startup, with eight years of experience as a UBS and Merrill Lynch derivatives trader. Van Zeijts is a founding partner of Sibyl Trading and a portfolio manager at Quantbot Technologies. He has worked as an advanced quantitative developer for 10 years at Merrill Lynch and Credit Suisse.

The company also hired Bitcoin Core developer Bryan Bishop, JPMorgan "deal maker" and fund operator James Greenberg as consultants.

LedgerX launches new "bitcoin-only" binary options

LedgerPrime's sister company, LedgerX, released a news in early February, announcing the release of a new derivative contract that is unique to Bitcoin.

According to the company's announcement, "LedgerX halved contract" is a binary option, which is to wait until the next bit of bitcoin mining rewards is settled. (A binary option is a contract in which the return is either a fixed amount or nothing.)

In fact, if the next bitcoin halved (#630,000) occurs before a certain date and time, LedgerX halved the contract "will allow you to get a fixed return. If the halving occurs after this date, then the contract expires. Will return to zero."

According to the processing speed of the current transaction, the bitcoin mining bonus will be reduced by about half every four years. The last halving of Bitcoin occurred in 2016, when the Bitcoin block reward fell from 25 BTCs to 12.5 BTCs.