What makes Cloud Token different? What is it and how does it work?

We are not an ICO. There is no token allocation. We (the developers) have to invest our own money into JARVIS to get our own CTOs.. It’s a fare game even for the people who are doing the actual project.

We are thinking about how to make the system to be as transparent as possible so that everybody can be assured that what we are doing and where we are.

So basically the idea of Cloud Token is very simple. We want to become a global wallet that is able to be used anywhere around the world with any merchant, so we want to become the biggest payment network on mobile around the world.

To do so we need to do a lot of things. We need to get a lot of users, partners, members. We thought a lot about how to achieve this. Having your crypto grow is not uncommon thing. There are many ways to do it now.

Just hodling the crypto in the wallet you depend on the market, it’s very passive.

We take a pool of the assets and do the trading. To do that we have actually written the AI robot. It’s not new there are many AI bots in the marketplace in the crypto and Forex, or stock world.

We have written our own bot and our own strategy which we call VAROOM to actually do the trading.

VAROOM trading strategy is very different than other robots because of one simple thing. Most of the robots they actually take in the value of the crypto, they always try to buy when it’s low and to sell when it’s high. It’s always a good strategy if you have a low AUM (Asset Under Management) – anything under 30 BTC. Most of these strategies that involve large AUM – 1000BTC or so – normally the strategies for these guys they do it in multiple multiple high frequent trades. The problem with those strategies is the fee of the trades itself that will be high.

Level VIP 8 in Binance it’s like 0.005% percent fee it’s still going to be expensive if you are going to accumulate, accrue or compound all of these fees together.

The strategy that we are doing is a bit different. We buy in large volume to push the market up, and in order to liquidate or to sell we would normally either we do what we call crypto pairing arbitrage.

So on the same network itself we would calculate through the different pairs how much of the quantity of the other coins we are going to get extra. The trading strategy is based on quantity not on value. So 1 ETH is still 1 ETH, we need to give you back 1ETH regardless the price, our strategy is to grow this ETH itself day by day. Jarvis is growing the quantity of the coins regardless of the price.

In order to prove this point, it’s quite different way of thinking and doing things. We gotta show the members how it is done. That’s why I’ve opened up the Binance account to show how much we are trading. Binance has this level thing where you need to trade a certain amount of BTC in about 30 days. To get into VIP 8 you need to trade over 150,000 BTC in 30 days, we have traded over 120,000 BTC in the last 30 days, that is a huge amount. How can you actually trade that much? 4,000 BTC – 5,000 BTC a day on average to get to this level..

If you look at the market at the last 2 weeks, it went from a high point of $13,000 and dropped down to low point to $8,800 and now it’s about $11800 something.

If you look at the market itself there are 4 ways of categorizing the market. The direction where it’s pointing up, the direction where it’s pointing down. Normally people look at direction whether it’s going up and down. We don’t look at directions in these way. At every direction we are doing a trade. That’s the only bad thing about doing the quantity. We are looking whether it’s a sideways market or a volatile market. Volatility is our friend, regardless whether it’s up or down. If it’s sideways it means that it’s very stable, it’s going to be very difficult to trade, volatility is very low and margin is so low that we are unable to do a lot of trades. Which means we need to hodl a lot and we can’t hit 4,000 BTC a day in volume.

If you look at the last 2 weeks regardless of the direction it was quite volatile. +$2,000 and -$2,000 in a couple of hours, even minutes. We can have swings of $500 plus and minus which are good for us. The robots are able to do a lot of trades. Just yesterday we made 5% of our AUM profits. Our AUM is about $150 million in size (on that one Binance account) and 5% in 1 day is really a huge feat.

To show you how things work we need to show you the Binance account which I’ve done as well.

How our price is settled? We have 2 different wallets. The first wallet is a trading wallet itself so the trading wallet is the wallet whereby VAROOM – the brain behind the trading – it will allocate assets based on its calculation, based on the signals generated from all the exchanges and the pairing, it will actually spawn JARVIS to trade based on the signals. This wallet is called the trading wallet, where most of the assets that are being added to the system sit.

When all the trading that is going on, each of the JARVIS that is spawn has a target to achieve, we call it PERFORMANCE TARGET. Once Jarvis hits the performance target it’ll actually shut down and the amount of profits it earns will be transferred to RESERVE POOL.

The maximum a month is 6% – 12%, so if you were to make 15% in that particular month all the additional revenue is actually put back in the trading pool, to back up our reserve, in case the reserve wallet itself a lot of people will do a withdrawal or conversion and is all from the reserve pool and take back their profits. The RESERVE POOL is the most important here because the number of assets that we have there is what is backing the CTOs.

The CTOs we have 2 numbers – total supply which we don’t need to look at it – and the total circulation what is in the market itself. Based on the total circulation that is available it needs to be supported by the number of assets that is accrued or compounded in the particular reserve wallet itself, that’s how the price correlates. Just like stable coin itself is backed by local currencies, we are backed by the cryptos that we are trading. That’s how the price of CTO is set.

Because we are trying to become accredited as a financial institution in Australia, there are lot of requirements that we need to follow. One of the requirements is to actually get the FSL – Financial Services License from ASIC Australia, one of the things that we need to do is get certification for ISO 27001 which is more about security, business continuity and things like that..

Let’s talk about business continuity – In case servers go down like in Amazon, how the business is going to continue to run? That’s why we are working closely with 3 partners – The first is AWS which is where the bulk of our service is and we are working with Microsoft Azure which is a new Cloud provider which we are using and another back up provider in Malaysia.

For the firewall CDN portion of it we are using ISO 270175 Cloudflare which is used by almost every big guys under the sun out there.

ISO 27001 has a lot of requirements, and at least we got those done, another thing we need to do has to do with security of the internal staff, how we handle our passwords, how we handle our data and things like that. And in FSL we need to get certified for the way we handle personal DATA, luckily we are not using personal servers but servers from AWS Amazon and Microsoft azure which are already certified, we are working through that. So the progress on getting the certification we already started the Audit and we have one guy which is very knowledgeable with all the audits and hopefully we are going to get it very soon. The first step is to get ISO 27001 ready and then we actually confirm for FSL, and then we can become ADI – which stands for Accredited Deposit Institution, which means that I can start receiving FIAT or local currencies to actually do traditional investments.

Even though you are ADI in Australia it doesn’t mean that we can do crypto to fiat swap or become a liquidity provider, so what we are doing is actually we are getting a certification from CESAR in Philippines to have our own OTC and our own exchange, we are also working on that now, next week our lawyers are flying from Malborne to Kuala Lumpur to sit down and see where we are and the things that we need to do in order to have this license in our asset.

Once we get the license we can actually have a legit merchant program which can help merchants liquidate the crypto instantly so the merchants are not exposed to the volatility of the crypto market. Let’s say I am the owner of the coffee shop and I want to use the crypto POS from let’s say CT, let’s say they accept BTC, ETH, CTO. If you were to hold the BTC or ETH in your wallet as the shop owner you are exposed to the volatility of the market. It’s not very profitable and it’s quite dangerous for a particular merchant, especially when the merchant itself don’t have so much liquidity in their own ecosystem. If you are a merchant you are paying in fiat to your suppliers and you are collecting cryptos, you are run of liquidity very soon. Our POS system does that conversion for you. Basically if I am the merchant I can set that 95% of the crypto accepted will be turned into FIAT currencies and 5% of the income that is collected will sit back in the wallet itself.  So when someone goes to your coffee shop and pays with Crypto ok it is sent to our OTC to liquidate into USD or whatever and is sent to the merchant bank account within 1-3 days depending on the working hours and the bank, which is not as fast as peer to peer OTCs but it’s still pretty fast and it’s a legit way of doing things. We are actually paying tax on your through CESAR, and for you it’s not an issue probably, but for  South Asia countries these double taxation laws will deduct tax from your sales tax, we are working with South Asia first and then be viable for US. Our merchant program itself it does the liquidity as well, unlike some of the other projects where the merchant itself keeps the crypto and needs to liquidate himself. That’s one of the things that are rolling out.

Because there is transaction involved and OTC involved here, all the profits will go into RESERVE POOL directly. As I said earlier the RESERVE POOL will affect one thing – the price of CTO. I’m not giving out CTO but the reserve pool increases because of the OTC fees, which means the PRICE ITSELF WILL GO UP. That’s what we are doing.

We are going to have a lot of other projects which will be added to our ecosystem directly. Our Mastercard will be launched by mid of August, we will allocate about 200 cards to C4 to test it out. We test and gather data and feedback and we will fix this and by October when we have Kuala Lumpur celebration event people who applied for the card C2 and above can apply for the card and get the card during the event itself.

Prepaid card will work this way. Unlike the TenX or MCO cards whereby you have to sell the cryptos directly to get the FIAT to fund the card, in our case all the cards are prefunded which means they already have the fiat in these cards they are just not enabled for the holders. The holder itself needs to take the CTO itself and use it as a collateral. You lock in the CTO as a collateral and when you use the FIAT we will draw down from the CTO itself. You don’t sell the CTO, you hold it as a collateral, and if you were to pay back in Fiat which you also have another interface to do that, the CTO will not get converted and will return to the system. The whole flow itself while we release the documentation or the leaflet that comes with the card itself. It’s not a bying and selling process which is very typical to Mastercard, VISA, JCV or Union Pay.

So we have the card system and we also pushing out our CLOUD SIM. The Cloud SIM itself is a regular SIM card that is we actually strike an agreement with about 8 carriers with 8 different countries to provide an automatic roaming provisioning. When we put the card in the phone and you are in the Philippines you will be able to use the package and travel to say Thailand and you enable the roaming. You can choose from 3 packages – 1GB, 2GB and 3GB for 1 week, I think it’s sufficient. Let’s say you buy the 3GB package and you travel to 3 different countries, you use it and it’s automatically will be switched in each country.

The earnings that we will have from the CLOUD SIM will also go to the RESERVE POOL which will affect the price of the CTO and it will go up. The Cloud SIM are given free at the event only, we have no plans to sell it yet because we want to test out with 10,000 cards to see if there are any issues and to get DATA which countries most of our members are and to negotiate better prices for data packages with the particular carrier. Our goal is to cover all 148 countries that our members are in but some countries are really expensive like Cambodia and Japan and some parts of Africa and some parts of Europe some carriers are really expensive. We are trying to work out a deal with all these carriers to actually let our members take this card to anywhere in the world to be able to access our wallet.

One of the reasons we push out the Cloud SIM is because in China itself most of the things are blocked by the Firewall and by using this SIM they won’t need to use VPN, it’s directly bypassing the VPN to our servers so it’s good to Chinese and people from India. Local SIM cards the price is usually cheaper but our CLOUD SIM is also not expensive as well, we are competitive in pricing. We will reveal the pricing of the SIM cards soon. When you get the SIM during the event, all the information will be there and I will share more about this in the coming weeks.

We are also pushing out several new projects, because JARVIS itself has a limit in terms of how much it can trade, so we introducing the block program by the end of the year, wherby we are going to put a limit on how much participation the JARVIS is going to happen. A lot of members worry that how I can grow my network if there is a limit to JARVIS itself, don’t worry because more projects are coming out.

We figured that in JARVIS itself we have 3 classes of users. The first class of users are the users that pull a lot of resources together for example to qualify for JARVIS is $500 USDT and a lot of the developing countries like India they can’t afford $500 so they take for example 3 people to fund an account itself and that itself is a bit troublesome so what we did is qualify these people as low investment group.

The middle one group are people who put in $500 – $5000 and the third group put higher amounts.

We are moving the whales out using the FRIDAY PROJECT so we don’t burn too much CTOs. (The Friday project is for people who have over $3,000,000 in Bitcoin and we are going to trade on their exchanges for a fee in BTC based on contract, and this BTC is going to be added to the RESERVE POOL as well). Now we are covering the bottom group, we are introducing a new passive way of earning CTOs. It will be open up with low participation I mean you just need anything less than about $100 USDT or maybe $50 USDT in order to participate with the new project that we will be pushing out before October. More things are coming out on the projects side.

Another alternative to JARVIS that can give you a very stable income and revenue is coming out. A lot of these things are coming out, more details will come out soon. We ourselves our figuring out how to properly introduce this without affecting our current project and how the affiliate payouts are going to be when we will introduce the passive program out.

The experience centre in KL is coming along well, we did our 5th revision of interior design. Of course when we first started it’s the first huge office that we actually own, we actually bought the place we are not renting it, it’s like your first home, we are trying to make it as grand as possible so one of the ideas was to not use any walls, but we wanted first to cover every wall with video wall so it has proven to be quite costly so we are doing part of it on the trading floor. The trading floor itself will have a slight angled LED wall, whereby we are going to shoot 24 hours through IB camera to YouTube or whatever, and all partners will able to see live trading on our trading floors through all the 32 different exchanges and 200 different bots and all the accounts 24/7 you can just pull it up! We are trying to make the camera as clear as possible so everyone can see what is going on from there. We are planning to do that to actually show the live trading.

The office itself is progressing well, we released some of the photos of the progress itself. The 5th revision has been approved and hopefully everything will be ready by the first week of September. If we complete by beginning of September we can move in by mid September. The event itself is in October so it will be a celebration event. It’s a huge space 4,500 square feet, it can host about 50 – 60 people – our developers, traders, media people and the brains behind the system itself will be there. All the members who are C3 and C4 can actually make a booking to come and visit the office at any time, it’s 24 hours office.

OTA (Travel Agency) will be ready by September – the first thing we are doing is to handle for our own event first, Matt is hardworking, he has to talk to all the 4 stars, 5 stars and 3 stars hotel around town and we have got such a great package ready for anyone who wants to come to KL celebration event which will package for the celebration.

For the booking of plain tickets and things like that hopefully we get it ready by September so you can start booking the flights. The hotels we are packing with the tickets. It will be cheaper that anyone with VIP level in booking.com can get the price. We are trying to get it done as soon as possible.

ETH private keys are already given to the members, we are using this time to gauge the feedback from the members. So many users coming to us and saying I have lost my key.. And we are telling them sorry we can’t help you. They are shouting and cussing, but we told them that if you lose your key there is nothing we can do, it’s your key. For the developed countries is easy but for the multiple members on one account issue and when you give a key and one guy takes the key and runs away it becomes CT problem, so these are the things that we are facing. So that’s why we are not releasing the private keys for other wallets until we figure out how we can solve this issue. We can also take the attitude of “fuck it” just give you all of the keys, but trying to become a global wallet which everyone can use we can’t really do that. That’s the dilemma we are facing now and we are working with our team to see what we can do.

We are dealing with USDT so we are just a crypto exchange without FIAT intervention. Cloud Token itself is going to be rebranding with Cloud 2.0 where they are going to remove the working TOKEN and WALLET, change the logo. To be less ambiguous. Instead of using the word deposit, we are going to change the word. In the app itself we need to rephrase the contract, we need to come up with end user license agreement and ASIC investment contract which is standard document that uses a 3rd proof. These are coming before the event.

We have plans to be in Canada in November, close to USA.