Response to Concerning Post

Response to Concerning Post

George (Mirocana CEO)

We, at Mirocana, appreciate constructive feedback, especially if it is provided after a careful review of our product and documents.

We were provided with the review of our project conducted by one of the recent members of Mirocana telegram group (hereafter is referred to as the “author”). We were asked to provide the answers to the questions raised in the review and despite we believe that some of the questions were driven by the misunderstanding, we believe that it is a good chance for us to tell more details about our project to our community of the followers in order to avoid similar cases with any other users.

However, before reading our response, please, consider our qualifications to the provided review:

  1. The author represents the competing project with close client groups and which is developed in the area of cryptocurrencies (one of our main markets). The author stated this in his opinion, however, we would like to stress that we do not know precisely what is the real extent on what this influences his opinion.
  2. The author represented himself as the experienced investor and developer. We would like to point out to our community that we do not check his profile and his experience. We consider his review as one the review of one of the backers. You should remember this while acting on behalf of his statements.
  3. The author invokes the community to buy tokens as the speculative instrument. We consider this as inappropriate and, despite you can act based on your own views about our utility tokens, do not encourage speculative investment into our tokens. We are seeking clients during the token sale and we are keen to build the community of our clients and supporters.
  4. The article emphasizes that the author is not very familiar with our white paper and terms of the token sale because of several facts, which are presented as is, are incorrect and have a different meaning in our documents. Please, read them carefully before considering the purchase of our tokens.
  5. The author clearly charges Mirocana and its team with fraud and scam. We do not want to distract our community and are open for any discussions, but we would like to point out that we consider such kind of unproven statements are completely inappropriate and non-legitimate. We will do all necessary actions (including legal) in the future to prevent such defective statements about our project, team and especially our community who supports us.
  6. The author claimed he was banned because of the fact providing his review, which is completely not correct. The author was banned, because, despite several notifications and clarifications that any links to external resources are forbidden in the official Telegram group from inception, he continued to post links to his article and challenged the group admins that deletion of the article will be considered as the scam signal.


Taking into account the qualifications above, we would like to respond to the questions and concerns raised in the review:


Concern №1

The author claimed our public historical performance, which can be seen from the bot, differs to the statement provided by us in the telegram chat. 

Above you can see the dynamic of my personal portfolio return since March of 2017 as an example of how the algorithm works in reality.

We will provide you with the more detailed split of our returns by instruments and risk groups within two weeks from now. Please, be patient.


Concern №2

The author claimed Mirocana will unlikely get the required historical data to train its neural networks. 

We already have quotes and other market data to train our neural nets. We receive our data from 40+ paid and free data sources that are described on our technology page. We constantly negotiate with new data vendors and seeking for an exclusive data edge. Predicting financial markets is a pure feature generation problem - the data itself has no value, the insights that you could "mine" from this data does.


Concern №3

The author pointed out that our crowd-sourced learning platforms are too complex to be developed.

Our roadmap was released in September of 2017. Our crowd-sourced learning platforms will be released according to our roadmap or earlier.  We do not plan to release all the platforms at once. We plan to gradually launch our platforms and keep the room of their adjustments to address the users' needs. We also believe that the strategy is the core, thus, we are not limited by our current view and plan to test other solutions for our clients and constantly improve our development plan. 


Concern №4

The author also pointed out we do not have enough servers capacity for our neural network.

We have enough computing power to cover our current needs. We constantly adding new strategies and test different configurations of neural nets and it's clear to me that we will need more servers power in the future. We will rent additional servers as we mature.


Concern №5

The author claimed Mirocana Target platform has no reasonable future.

Mirocana Target platform will be the platform where the system predicts the success of ICOs based on the performance of past ICOs and users rating data. This platform will have a believability-weighted decision-making, meaning each forecaster will have its own weight based on past performance and assessments. The success of this platform will eventually depend on the number of users. We negotiate with a co-founder of CoinTelegraph the potential partnership in which we develop the platform and they provide traffic - if we will come up to an agreement we will launch the platform this year. For now, you can explore the prototype.


Concern №6

The author claimed that Mirocana bot is disabled.

Trading activity of the bot was suspended in September 2017 but the other functionality of the bot is available. You can request a recommendation for any company that is listed on NYSE or NASDAQ stock exchanges or see real-time fundamentals data for these companies using in-line mode.

To use in-line mode just type "@MirocanaBot" and space in any chat.


We will restore bot's trading operation this or next week. Currently, we apply the new version of our predictive system to this bot.


Concern №7

The author claimed the lack of leadership and poor management.

I started the development of the system in March of 2015. Since that time I tried many approaches and rewrote the codebase 6 or 7 times. It involved the creation of my own syntax and backtesting framework for writing new strategies since any existing solution was limiting my ideas. For instance, I rewrote the majority of the codebase to switch to ClickHouse (the fastest database by many benchmarks that was released in July of 2016) in order to optimize and speed up the development. I understand that some might worry that I, as 21-year old, may manage the company inefficiently, but I'm very motivated because I see very decent results and a huge room of potential. There's no way we stop. 

In total, we have raised over $400k to support our project: $170k as investments in May, $260k while selling our tokens on a closed pre-sale on 7th of October. 

We are building a sustainable business of asset management. We already manage our own funds and funds of our investors and we profit from that. So far, we have spent just nearly 10% of the raised money, I spend money rationally and consider that as a very cost-effective result. We will become operationally profitable by the end of this year. I assure you, that we will invest more in product development and we will be hiring as many talented people as we could after a Token Sale. I deeply understand that our customers would like to see the system in action - that's why we will work twice as hard to make our products available before Token Sale starts. I have a strong vision on company development and we will continue iterating our system for better results. 

Our mission is to make our complex AI-powered trading system available to our supporters on reasonable terms and grow the value of MIRO token.


Concern №8

The author claimed the weak team problem.

The author used social networks, which pretend to be the indicator of one's experience but do not present the full picture. We worked as the team in parallel to our main employments in the past.

  • George Petrov (CEO, founder) - previously he was managing information security company, developing high-load backend infrastructure for mobile games and he was working in several IT-companies on leading positions as developer or data scientist.
  • Eugene Ulyanov (co-founder) - has a Ph.D. in Law. In the past, he was a founder of a marketing agency and several start-ups together with Embria Ventures.
  • Alexy Dementyev (tech-lead) - was working on leading positions as a developer and engineer in several companies in Russia. He has an extensive experience of building high-load infrastructure and scalable systems.
  • Vasily Boychuk (data scientist) - analyst and developer of predictive models. In the past, he was a leading employee of a Research Institute for the Analysis of Social Network Data and the author of scientific publications on the subject of predictive modeling. He is responsible for developing and implementing simulations for strategies.

You can read more detailed information on our team members on our website. We have 11 team members and have been gradually expanding our team since the day one. We will hire more people as we mature.


Concern №9

The author claimed the lack of developers.

Today, 4 engineers are involved in the development of our predictive system in a full-time capacity. It's not enough, we are hiring more in coming weeks. I invite any interested person to our office in the center of Saint-Petersburg.


Concern №10

The author claimed the fake advisors.

There are no and never were any "fake advisors". Currently, we have five advisors and they are shown on our website (except Vadim Koleoshkin from Zerion who joined yesterday - they conduct an audit of our smart-contract). Now we negotiate with four more, two of them awaiting compliance approval. I think we will grow our advisory board to 12 before the token sale starts.

He referred to our research group as "fake advisors" and it's wrong primarily because these people do not advise us on the blockchain, trading, legal or on any other aspects. It is a community of people that are interested in product development and have skills in data science. You can join this group too. We work with these individuals on a part-time basis and pay for each research task. They all agreed to participate in our research by providing us an email and answering a few question on their experience. Two months ago we added few of them on the website without of consent of doing so. It was my mistake since some of the people would like to remain anonymous while participating (some didn't want their employee to know they are working on something else). We deleted information about research group from the site and decided to make our research tasks available to everyone - we will conduct first predicting tournament in mid-November as a beta version of Mirocana Sigma platform. We are preparing the dataset (~19 GB) and finalizing the design of the platform's page. 


Concern №11

The author claimed the low-profile advisors.

We are constantly working with the market and best in class professionals to strengthen our advisory board. We plan to engage several specialists in quantitative trading, crypto trading and blockchain from the market to help us with our plans and, if necessary, adjust our strategy. However, we believe that our pool of advisors represents a solid set of different professional qualities. In addition, we would like to clarify that, Denis Efremov is not only assisting us with strategic operations of Mirocana as the corporation, he is also assisting us in building the partnerships with capital markets providers and crypto institutions being the fin-tech professional with capital markets focus; and George Baziladze is not only advising us with ICO preparation but is also sharing some insights on crypto turnover solutions, which are essential for our platform.


Concern №12

The author claimed we are issuing tokens in Canada.

By stating this concern the person acknowledges he is not familiar with terms of our token sale.  We have two-entity structure, the Canadian company is the main intellectual property owner in the group, hence the Estonian company provides the services to the clients using the technology of its Canadian affiliate. Estonian company is the one issuing tokens.


Concern №13

The author claimed our tokens are security tokens.

Our international legal advisors analyzed all legal base in Canada and provide us with the opinion that tokens are not securities in Canada neither per the federal nor per the regional law. We also conducted Howey Test with the help of professional lawyers and confident that our tokens are not securities under the US legislation. We are conducting external legal review of our ICO and will release the independent legal opinion next week.


In closing

I have no doubt that our company will be successful. I personally work as hard as I can to achieve super-results. Dealing with the posts that try to harm your reputation is very important since the reputation is not something you get, it's something you earn. We will make every effort to earn more credibility from potential token-holders. We will not charge any fees or commissions during the first 8 months after a Token Sale, during this period we hope to build the trust between customers and the system. If you still have any concerns or ideas how we can increase the level of transparency in the company, please write directly to me