Now over a decade old, bitcoin was the first cryptocurrency to hit the market, eventually becoming the market leader. There have been stories of bitcoin holders trading what would be worth hundreds of thousands today for a few dollars of pizza back in the early days—others become millionaires, and a few lost the family farm. But what was once designed to be a decentralized currency, proved far more volatile than ideal for use as legal tender, and shifted towards become an investment medium. However, early cryptos have proved far riskier on average than Wall Street overall, preventing many more potential investors from entering these new markets.
Jose Ignacio Trajtenberg and Fernando Boiero are the Co-Founders of WallCryptoStreet, a Cordoba, Argentina Founder Institute portfolio company that has raised USD $190k for reducing cryptocurrency investment risk by applying artificial intelligence to standardized rules and systems found in traditional trading markets.
WallCryptoStreet manages risk, volatility, and uncertainty for both first-time cryptocurrency investors as well as experienced ones. Through their Robo-Advisor, or WSC Advisor, users are given the chance of setting a tailor-made strategy according to their own objectives. The algorithms use a combination of big data sets, trading strategies, and augmented intelligence to automatically operate 24/7 on behalf of the investor, which can help reduce risks and maximize earnings.
Trajtenberg explains,
Nowadays, we deal with so much information and so many options when it comes to investing that technology is a must. As new assets were born, the diversification of the portfolio changed its meaning. We really believe that when it comes to investing, you have to be diversified in order to minimize risk and increase the benefits. In this case, our clients have to set their investment objectives: currency to optimize (BTC or USDT), take profit & stop loss value (when reaching any of them, the bot will automatically stop operating and turn the investment into the chosen currency), the term of it, and how risky they want to go.
Once an investor sets their boundaries, the robo-advisor does the rest. This comes at a time when 80 billion dollars are being traded every 24 hours, and the largest shifts impact the overall market. A 290 billion capped market that has seen a 600% increase in investors over the past three years, for WallCryptoStreet, is good news that average investors want to join in this capacity.
Robo-Advisors help average investors to diversify, and crypto markets benefit from the same methods.
For the most part today, cryptocurrencies are still managed through “digital wallets,” with very few offering risk reduction or investing strategy capabilities. The initial successes of WallCryptoStreet are beginning to show. This past May the company raised a seed round of $190,000, which will be used to pull in first-time crypto investors who don’t want to deal with the day-to-day risk of managing it on their own wallets.
On the path to internal success, the team is looking to expand from Argentina into Chile, Brazil, and Mexico, and eventually move from a B2C strategy into more of a B2B offering. This is where capital managers, hedge fund owners, financial institutions, and exchange and trading platforms can partner to deliver cryptocurrency investments into their own clients’ portfolios through a risk-reduced setting.
Trajtenberg sees cryptocurrencies as a new asset class well matched to average millennial investors’ lifestyles, saying,
I think cryptocurrencies express the new kind of life young generations want to live. Freedom, decentralization, globalization, liquidity, 24/7 activities, and many more values that this new kind of assets express, matches with their new necessities. Nowadays, the risks of this kind of asset is still lacking a lot of the necessary regulations and laws that bring some rules to this market, so consumers do not easily fall for scams.
The team is looking shift the mindset around how average investors think about cryptocurrency functions today. In the past, beyond the viability of mining, cryptocurrency management was a full-time gig. It’s one of the reasons that motivated WallCryptoStreet to build their automated solution. Trajtenberg says,
There weren't any platforms or services that could enable people to start investing in cryptocurrencies without the tough duty of first studying or being fully dedicated to crypto trading.
This innovation is built upon the Founders’ own home country of Argentina’s history of economic uncertainties. Trajtenberg explains,
We were born in Argentina, a country where a crisis is the usual context and it's necessary to be aware 24/7 of the changes in order not to collapse or have financial troubles. That's the exact context that brings out WallCryptoStreet, a robo-advisor that adapts to every context that the cryptomarket shows, and works 24/7 to help continually deliver wealth to users.
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