Algorithmic trading and investing are potent tools for those who dream of making passive income from the volatility of the cryptocurrency markets. The idea of “set it and forget it” strategies that provide a yield is enticing indeed. However, there are significant barriers to this utopian ideal.
The main challenge is that successfully using algorithms to play the financial markets is still mainly the preserve of a small niche of people who sit in the center of the Venn diagram that merges “knows how profit from the financial markets” and “knows how to write code.” Most of us would struggle to find the time to master one of those disciplines, let alone both.
There are some positive signs of change. Bots that can be programmed by users based on an intuitive user interface are starting to emerge. Elsewhere, copy trading offers newcomers a means to replicate the strategies and tactics of more experienced market players.
However, a new up-and-coming Indian startup called Mudrex is now developing a platform based on “financial infrastructure legos” that offers an intriguing fusion of copy trading along with an intuitive drag-and-drop strategy builder. The overall aim is to make automated trading and investing accessible to everyone – even newcomers.
What is Mudrex?
Mudrex aims to become a full-fledged brokerage platform providing a multitude of services, including fiat to crypto on ramping, a custodial wallet, and trading and investing as a service. However, as a startup, it’s rolling out services according to a development roadmap.
The core functionality that kicked off on the Mudrex platform is the Strategy Builder. This offers four components: data fetching and aggregation from ten exchanges, order execution infrastructure, account and portfolio management, and the drag-and-drop strategy builder tool. Based on this functionality, Mudrex was able to assemble an initial user base of 1,000 people who were able to create, test, and deploy their chosen trading strategy and, most crucially, without needing to know any code whatsoever.
The next features to go live were the copy trading of algorithmic trading strategies and a payments and subscription management service. This enabled the company to 10x growth to reach 10,000 users. Currently, anyone can sign up for the platform free of charge to become a copy trader or investor. Users can browse through the investment strategies that traders have already put live on the platform and select one or more to copy based on returns, the number of investors, asset type, their chosen exchange, or more.
Experienced or advanced traders can use the Strategy Builder to upload their chosen strategies, for which they pay a subscription of $16 monthly to become a premium user. Traders can then earn a fee from the users who are copying their strategy. Fees range from 0.5% to 2%, so they are fairly reasonable, which makes sense when you consider that the Strategy Builder traders have to compete for users to copy their game plan.
Within the next few weeks, Mudrex will launch the next phase of the functionality on its platform. These are a fairly significant extension, introducing fiat on-ramping, liquid spot, futures, and options order books via a Binance Broker license, hot and cold wallets, and identity management with KYC.
The global crypto brokerage service will be expanded to include several new products for investors. These include a cryptocurrency index to be introduced in Q1 and low yield-bearing crypto savings accounts, along with a mobile app in the second quarter. Mudrex is also planning to expand into providing services to institutions as well as retail investors. In the second quarter of 2021, it will launch an institutional-focused cryptocurrency investment fund offering bespoke products to funds, corporations, family offices, and high-net-worth individuals.
By the end of January, Mudrex expects to hit $5 million in assets under management and $100 million in all-time trading volume. The company has achieved 50% month-on-month growth in the time since launching the first features last summer. Throughout 2021 and based on achieving the milestones on its roadmap, Mudrex is aiming to achieve a minimum of $100 million in assets under management and $5 million in annual recurring revenue. The firm also wants to lay the necessary groundwork to expand into new asset classes starting from 2022, namely equities and forex.
Mudrex has already received backing from Y Combinator and has so far raised $750,000 in funding from investors including Better Capital, First Principle VC, Angelist, and Woodstock fund. The company is aiming to close a Series A round with further backing this year.
A Timely Entry?
As the cryptocurrency space becomes more crowded, it becomes more difficult for firms to differentiate themselves from competitors on the market. In the retail space, offering newcomers the opportunity to automate their cryptocurrency investments based on proven strategies from experienced market players could prove to be a killer combination for standing out from the crowd. With 2021 starting off as the biggest bull run in crypto history, there couldn’t be a better time to capitalize on an influx of newcomers.
Disclaimer: The writer does not have any relationship with Mudrex. The Daily Chain encourages you to carry out your own research before you make any form of investment and educate yourself about how to stay safe in the crypto space. This article is informational/educational and does not represent financial advice.