The crypto world has often been compared to the wild west. While some people have made 10x returns in just a few hours, others, more seasoned players, have been pouring little dumps of cash every week on proven projects. However, everyone wants to be the former, and a lot of people are just looking to make a quick buck. This had led to a lot of people losing money. However, a crypto investing platform Mudrex is here to change the world’s attitude towards cryptocurrencies, and has raised $2.5Mn led by Nexus Venture Partners for its goal.
The YC backed Bengaluru and San Francisco headquartered company claims to have created the mutual fund layer of crypto using AI to predict the risk to reward ratio on long term concepts.
The company allows users to invest in cryptocurrencies in a hassle-free and safe environment. But that’s not new. However, it has a key differentiating factor that might help it become one of the biggest names in the market.
The firm notes that investing in crypto is broken, adding that the greed for 10x returns in five days is borderline gambling and is exactly what prevents the general retail audience from participating in this new emerging financial ecosystem.
Instead it proposes the idea of investment products like Mutual funds, ETFs, Index Funds, etc to solve this problem for long term wealth generation. For this, Mudrex is creating simple-to-invest products with a better risk/reward ratio that will help the next billion users join and participate in crypto.
The company uses algorithms to create, and assign a risk to reward ratio to these funds, so that investors can make the right choices and not just go along with the latest fad in the market and end up losing thousands of dollars on random coins. These algorithmic strategies are created by professional traders to help others gain the benefits of the currency of the future.
Thanks to this, Mudrex has been able to host over 25,000 active portfolio managers acquired both organically as well as through a referral system and has witnessed more than $1 Billion in trading on the platform. The company at present holds an AUM of $15 Million and counting.
Commenting on the fundraise, Edul Patel, CEO & Co-founder of Mudrex, said, “Mudrex is bringing wealth tech to crypto. We’ve been able to scale the business profitably with a growth rate of 30% m-o-m over the last 10 months. Today, Mudrex is a global platform with users from over 90 countries. Our vision is to become the leading crypto asset management platform that provides users state-of-the-art products and services to improve their trading decision making and hence returns on investment. We will achieve this through expanding our user community, providing superior tools to advanced portfolio managers, debunking myths about crypto trading as well as new product introductions like crypto indices, high yield crypto ‘savings account’, building out our mobile apps and more. ”
The company plans to use these funds to scale up the team and operations, as well as acquire global regulatory compliances, and create innovative products.
