Guided by an algorithm that is supposed to be able to predict the performance of cryptocurrencies, some New York University students are using their bitcoin profits to pay for tuition.
Konig Chen studies hospitality and leisure management at New York University (NYU). The 22-year-old, who was raised in Brazil and went to high school in Taiwan, says he used the profits from his bitcoin investments to pay his tuition for a full four-year study program at NYU.
According to NYU data, the 2017-2018 full-time tuition of 24 credits (one academic year) plus service fees for Chen’s undergraduate program is a whooping $50,644 per year. Add in room and board, health insurance, and other expenses, and the annual price comes to $78,899.
In hopes of avoiding the dreaded student loans, Chen turned to cryptocurrency investments. He started out small, buying roughly $5,000 worth of bitcoin in February 2017, when the coin was changing hands for less than $1,200.
“I started out as an equity investor,” Chen said.
Thanks to a chance encounter with Brandon — a fellow NYU student who keeps a low profile and goes by only his first name — Chen claims to have made around $300,000 through cryptocurrency investments over the past year.
Brandon had developed an algorithm that is presumably able to predict the performance of bitcoin and other cryptocurrencies. Using Brandon’s algorithm, Chen diversified his portfolio, monitored market movements closely and bought in various dips. By the end of last year, his portfolio was allegedly worth enough for Chen to cash in on roughly $200,000 – the necessary amount for his four-year tuition at NYU.
Moving forward, Chen plans to push on with his cryptocurrency investments. Someday, he sees himself cashing out to buy a resort property.
“After making all this money, I can’t see myself being the manager of a hotel. My plan is to cash out and buy a resort property,” Chen said.
As for Brandon, he decided to drop out of his neuroscience major and focus on cryptocurrency trading full-time. He teamed up with his former roommate, Leo Tulchin, to work on a venture called Trace Capital, which currently manages $300,000 on behalf of 15 fellow NYU students, friends, and family.
“I originally gave Brandon $400, but after it turned to $600 over the next few days, I gave him enough to buy a bitcoin for $1,400,” 21-year-old Tulchin, who studies media and writing at NYU, said.
According to Tulchin, they have already received buyout offers for their ‘crystal ball’ algorithm, but decided not to sell.
The two are spreading out their investments to reduce risk, and are currently holding bitcoin, litecoin, ethereum, and other unrevealed currencies.
“We like to stay as diversified as possible. We really believe in this thing,” Tulchin told the NY Post.
“Brandon and I are working together to incorporate into a cryptocurrency hedge fund. For now, we’re not taking a piece of things but just helping out friends and family. There’s been a pretty good groundswell of enthusiasm, and not just from young people,” he added.
Featured image: Konig Chen/ NY Post