Icoinic outperforming the market - icoinic
Franklin Feringa - Fundamental Analyst - Icoinic B.V.
Franklin Feringa

Icoinic outperforming the market

Icoinic has always stated that investing in cryptocurrencies is a good way to diversify risk. That being said, cryptocurrency investments can be extremely risky if the right strategy is not implemented. This became evident once again during the volatility of the past month.

Recent price movement

A couple of weeks ago we discussed how we believed that cryptocurrencies, and Bitcoin in particular, could be a great way to diversify risk for traditional investors, especially in the uncertain times that the Coronavirus brings. Despite our initial beliefs, the Bitcoin price tanked with that of the equity market. The chart below shows the strong correlation between the price of Bitcoin in USD and the Dow Jones (purple) during the sell-off. 

Source: Tradingview.com

From the high in February to the low in March, the Bitcoin price dropped 63% while the Dow Jones lost 38%.

Adaptive capital

Needless to say, many have suffered severe losses during this period. Not just the retail investors suffered the consequences, but professionals also had a hard time as became apparent in this article. The crypto hedge fund Adaptive Capital sustained massive losses that caused it to shut down. Its management cited infrastructure insufficiencies of certain exchanges as a reason for its troubles. During the time of the Bitcoin crash on the 12th and the 13th of March, certain exchanges halted trading activities that left the fund unable to respond to the price decline. 

This shows just how important it is to make use of multiple exchanges to spread the operational risk as a professional fund since this is actually a reasonably common occurrence in the cryptocurrency market.


Despite all the bad news coming from both the cryptocurrency as well as the equity markets, it can still be quite lucrative to invest in cryptocurrency. Don’t forget that every hedge fund has its own strategy and risk management. So despite the shutdown of Adaptive Capital, there are other funds out there that might actually be performing better than the price of Bitcoin. 

Icoinic is one of these funds. While Icoinic did lose money during the recent price drop, the losses were limited. An overview of the fund performance compared to the price of both Bitcoin and two major European and American indices shows how well the fund has managed to perform between the 19th of December and the 19th of March. 

As you can see, despite the huge losses of the indices and especially Bitcoin, the Icoinic Algorithmic Fund has managed to generate a positive return for its investors.

Icoinic is able to outperform the markets due to its solid strategy. The fund applies multiple strategies that are developed by the team of developers and analysts that constantly work to optimize them. Since the trades are not based on the opinions (or reaction speed) of humans, the fund is able to get in and out of positions in no time and can, therefore, benefit from small price movements, allowing it to lower the impact of huge price drops. 

At the same time, Icoinic ensures that it uses a range of exchanges in order to minimize the risk of not being able to trade in times of volatility or other exchange-related risks. This combination has enabled Icoinic to realize such a good return on investment during these difficult times. 


Implementing the wrong strategy can expose an investor to unnecessary risks as shown by the recent price drop. Allocating a portion of your overall investment portfolio to the right professionals in the cryptocurrency space can make a huge difference. A well thought out strategy can cause a crypto fund to be even more risk-averse than investing in the large indices.

Luc Correia Cabrito