April 4, 2020
0% Fee Investing! So how exactly will Pynk make money?

With the onset of the global Coronavirus pandemic —it’s at times like these you think to yourself ‘there is more to life than making money’.

Making money has never been the start point for the Pynk founding team; rather it has always been about tackling the problems everyday people encounter when working towards a better financial future. It’s not an easy thing to do in the best of times, but even harder at times like these.

In the original Pynk Paper the founders penned some years ago, Pynk‘s CEO Seth wrote in his opening letter:

“As the global population continues to grow at exponential rates, more pressure is put on finite resources. And with the current manifestation of capitalism feeding increasing levels of inequality, we at PYNK believe new and improved financial, economic and political models are needed.”

While some of the nuances have evolved over time, the fundamental elements of the Pynk approach remain consistent. Ultimately, we are trying to level the playing field for investors by working together. In doing so, re-distribute some of the value from the ‘haves’ to the ‘have nots’. Today, we believe in that mission more than ever and have been developing a business model that does exactly that.

For those that have been following Pynk for some time; you’ll know we share as much as we can with our Pynk community. In the interest of complete transparency, we are sharing our plans for monetising the Crowd Wisdom system. These revenue channels will pay for the 0% Fee Managed Portfolio (sign up here!) and numerous other value add products we have planned for Pynksters.

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The above diagram, which we refer to as the ‘Pynk Flywheel’, is lifted from our pitch deck. We use it to explain the model to investors. It’s called a flywheel since the more Pynksters that join our movement on the left hand side - the more prediction data we have that feeds ROSE AI (if you missed my last blog, take a look to see how Pynk predicted the market crash).

The more data we have, the better ROSE AI’s ability to predict future pricing and events — and the more the demand for Crowd Wisdom Data we experience from businesses. In turn, the more demand from businesses for our product — the more we can invest back in to Pynk for People, with higher competition prizes for predictors and better financial products for investors. Not to mention that the more data Pynksters provide, the more they can profit from any money they invest into the portfolio — because Rose is working even better for them. It’s a virtuous circle of growth, with value being redistributed from the ‘haves’ (big business) to the ‘have nots’ (everyday investors).

Below are our planned revenue channels that will go on to increase the Crowd earnings (since each deal will added to reward pool):

  1. We plan to charge non-active Pynksters 0.12% per month. To qualify for the 0% Fee Crowd managed portfolio you must be an active Pynkster; that means making one price prediction a week. For those that do not — they will of course pay a fee to access (in the same way that HNW and Private Investors do). We anticipate this will be a small % of Pynksters.
  2. We may sell ROSE AI signals to Financial Institutions who manage money (e.g. trading desks, investment companies, funds). We will start with crypto funds since the asset we have the most Crowd Wisdom data on is Bitcoin.
  3. We may build and manage white label Crowd Wisdom products for Financial Institutions and big business. These companies have tens of thousands of employees, inside of which there is significant untapped potential. Management teams that want to unlock the potential inside these Crowds come to us and we build customised products.
  4. We plan to place our investment products on challenger banks’ mobile apps, opening up our managed portfolio to new audiences. Not only does this ‘democratise’ our product, but it supplies ROSE AI with yet more prediction data — powering the Pynk Flywheel.
  5. We plan to charge High Net Worth (HNW) and Private Investors a fee for Assets under Management (AUM).

The Pynk business model is novel in its attempt to re-distribute value to Pynksters around the world, so that the Pynk community may create its own ‘walled garden’ of prediction data and enjoy a return. Unlike certain tech giants that harvest unsolicited user data - Pynk is engineered to return value, monetary and otherwise (i.e. financial education), to our Pynkster partners who make consistent and positive contributions to the co-operative.

By working together in this collaborative manner — we can achieve more than as individuals. As we say at Team Pynk; when good people work together, great things can happen.

As always, please leave any comments or questions below and I will respond as quickly as I can. Or you can message me on Twitter or Linked In. In the meantime, stay safe.

Disclaimer: Please bear in mind that this information does not constitute any form of advice or recommendation by Pynk One Ltd. and is not intended to be relied upon by users in making (or refraining from making) any investment decisions. Appropriate independent advice should be obtained before making any such decision. When investing, your capital is at risk and you may recover less than the initial investment.

Written by
Mark Little
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Pynk is a registered trademark and copyright of Crowdsense Ltd. Crowdsense Ltd is a company registered in England and Wales (No. 11339494) with the registered office at 20-22 Wenlock Road, London, England, N1 7GU.

Crowdsense Ltd is an unregulated firm and the information contained herein does not constitute investment advice or investment research and should not be relied upon to make any investment decisions.

Crowdsense Ltd is partnered with Pynk One Ltd, trading as Thesis Portfolio. Pynk One Ltd (FCA reference no. 942958) is an appointed representative of WealthKernel Limited (FCA reg no. 723719), which is authorised and regulated by the Financial Conduct Authority.

Investing involves risk to your capital. Past performance is not an indication of future results. The value of your investments can go down as well as up, and you may get back less than you originally invested. References to specific assets or securities are included for illustrative purposes and should not be understood as an endorsement or a recommendation to engage in investment activities.

Please invest aware.