Singapore Crypto Copy Trading Platform Raises $ 3 Million Ahead of Launch

0


SINGAPORE – Singapore-based cryptocurrency copy trading platform Alpha Impact raised $ 3.1 million in a funding round led by LuneX Ventures, Genesis Block Ventures, Solidity Ventures, SMO Capital and a undisclosed high-frequency trading company, co-founder Hayden Hughes told DealStreetAsia.

Other investors in the round included Axia8 Ventures, Krypital Group, Spark Capital and angel investors.

Alpha Impact raised the $ 3.1 million through a private sale of its tokens, which it plans to list on the Uniswap crypto exchange in May. The investors – who have a six-month lock-in period – bought 15% of the company’s tokens, valuing Alpha Impact at around $ 20 million, Hughes said.

He added that unlike an initial coin offering, in which token sales target retail investors, this fundraising has only been done from accredited investors and venture capitalists.

The fresh funds will be used to hire more people, especially developers. Alpha currently has six employees, but plans to increase its workforce to 20 by the end of the year.

The startup was founded in September 2020 and just graduated from venture capital firm Antler’s startup generation program in January. So far, he has received $ 100,000 from Antler and has generated income through consulting work with family offices on investing in crypto.

Hughes said having blockchain and cryptocurrency-focused investors such as Hong Kong-based Genesis Block Ventures and Singapore-based LuneX Ventures helps give the company credibility. and build trust with customers.

LuneX Ventures was born out of Golden Gate Ventures in 2018 as one of Southeast Asia’s premier cryptocurrency and blockchain funds. Genesis Block Ventures, meanwhile, has invested in around 100 startups to date since launching in October.

Alpha Impact, which will begin selling its tokens on Uniswap in May, will also launch its copy trading platform early in the third quarter, Hughes said. A copy trading platform allows users to mimic the trades of more experienced traders. Alpha Impact users will be able to choose which trader to follow based on their risk appetite.

” There is a lot of noise [in the crypto market]. It is very difficult and very confusing for new investors to understand the space and separate fact from fiction, “said Hughes.” So the idea for us is to give everyone access to different investment strategies. “

So far, 15 traders have agreed to allow users to copy their trades, including Hughes and his co-founder Austin Chaird. These traders, which include those working for high-frequency trading companies, will appear anonymously to users but are first selected by Alpha Impact, which aims to expand its network to 100 traders by the end of the year. .

Alpha Impact will charge users a 1% fee for each transaction, which will be shared with merchants. Traders will also have a social media profile on the platform so that they can share details about their trading strategies.

To use the Alpha Impact platform, users will first need to open an account with an exchange like Binance. Alpha Impact will connect user accounts to track traders, but will not be able to access user funds.

“We get limited authorization to trade from their exchange account [but] we don’t sell crypto, ”explained Hughes. “No one deposits crypto with us, so it’s a non-custodial way for clients to access crypto investments.

About 1,200 people signed up to be test users ahead of the web platform’s launch, said Hughes, who hopes to have 5,000 users by the end of the year.

While there are already a few copy commerce platforms available, such as eToro and Zignaly, Genesis Block Ventures partner and co-founder Leslie Tam said he was confident in Alpha Impact’s ability to execute. its platform smoothly, as Hughes and Chaird know the crypto markets and go to great lengths to ensure that there are “no product-side start-up issues.”

“There are a lot of new UX UIs that need to be created [for] social business needs [and] we thought they were professional, ”Tam said.

He added that fundraising through tokens benefits both the startup and the investor. “We generally only invest through tokens [because] we can exchange it. We don’t need to have to swap it somewhere, we can swap it anywhere we want [or] we can hold it [and] use the tokens as a stake, ”he said.

Crypto startups trying to raise funds can sell their tokens on exchanges instead of spending time talking to venture capital firms. And the market decides the value of the business through the tokens. “It’s beautiful because it’s so self-regulated,” Tam said.

Hughes was previously chief distribution officer for blockchain technology investment bank Techemy and director of institutional sales for Crypto.com. Chaird was previously vice president at JP Morgan in charge of technical operations.

Interest in the crypto market has increased in recent times.

Other companies that have recently raised funds include India-based cryptocurrency exchange aggregator CoinSwitch Kuber, which raised $ 25 million from Tiger Global Management, and Enjin, an ecosystem builder of Singapore-based blockchain that raised $ 18.9 million in a funding round led by Crypto.com, Groupe DFG and Hached.

According to a report released by OpenNodes, Temasek, IBM, PwC Singapore, EY, and SGTech, the number of blockchain companies in Singapore increased by 50% year on year to reach 234 in 2020.

Singapore has also decided to regulate the industry. Last year, it introduced the Payment Services Act, which requires companies to obtain a license to provide payment services, including digital payment token services.

For the original story of DealStreetAsia, click here.

DealStreetAsia is a Singapore-based financial news site that focuses on the private equity, venture capital and investment activities of companies in Asia, particularly Southeast Asia, India and Greater China. . Nikkei owns a majority stake in the company.


Leave A Reply

Your email address will not be published.