The bull market that started at the beginning of the year brought a large number of new users who were eager to profit from the crypto-asset industry, and there were even many white people who had no contact with traditional investment channels such as stocks and funds. In the cryptocurrency industry, where the cognitive threshold, operational difficulty and risk factor are much higher than those of the traditional securities market, it is difficult for new small and medium-sized investors to make sustainable profits.
In response to this pain point, Zignaly, a social crypto asset quantitative trading tool recently contacted by Odaily Daily Planet, replicates the quantitative trading and order-following tools in the securities market to the crypto asset circle, and puts online a 7×24-hour watch function, which to a certain extent liberates the energy of the majority of retail investors and alleviates the learning pressure of understanding the project and the industry. Followers only need to follow the strategies of experienced trading experts, which is also considered to reduce the risk of operating on their own.
On March 31, 2021, Zignaly secured $3 million in private funding. The round was led by Parataxis Capital, with other investors including OKEx’s Block Dream Fund, exchange AscendEX (formerly BitMax), and Sino Global Capital.
So, why do many investors see this model and believe Zignaly has a competitive advantage in this segment? What are its main products and services, and how has Zignaly performed in practice? Can ordinary users really use it to maximize their profit and minimize their risk? We will give a comprehensive and in-depth explanation in the following.
First, no prepayment, users pay commission after achieving profit
From the product system level, Zignaly can provide users with buy and sell signal sources, replicate trading expert strategies for order-following services, and profit sharing services (PAMM) similar to pooled funds or full commission trading.
Zignaly’s three product systems
Specifically, the profit-sharing service allows retail investors to replicate the strategies of trading experts without having to pay upfront. The user shares with the trading expert only in case of a profitable situation. The majority of the profit goes to the user, the trading expert receives a percentage of the profit according to his request, and the remaining 5% goes to Zignaly and is used for platform maintenance. The principle of the follow-on and profit-sharing services is roughly similar, except that the user pays a monthly fee, regardless of profit and loss. Users who choose this service can set up their own trading strategies and receive the platform’s recommended buy and sell signals (point B and point S in the K chart).
In addition, Zignaly has its own smart trading terminal, which supports users in executing the following operations: Stop Loss, Take Profit, DCA, Trailing Stop.
The “flagship” of Zignaly’s three services is the profit sharing service. The total number of Zignaly platform users exceeded 95,000, of which 6,300 were registered in May 2021. The platform’s total turnover was $681 million, of which $340 million came from profit-sharing services. The platform’s total assets under management also exceeded $100 million.
The “win rate” of the trading experts is essential to achieve such results. Unlike many similar platforms, which are operated by accumulating the biggest names in the industry and quantitative experts, Zignaly’s path to trading experts is more popular: in Zignaly, users with high trading standards can create their own trading strategies. How do you measure the level of trading?
Regular users can also choose to share their personal trading strategies
The platform will decide whether they are qualified based on their trading records and profitability in the last month. After successfully obtaining the trading expert qualification, the “trading expert” can open a personal account in the corresponding interface of Zignaly platform for users to choose to follow. By clicking on the trading expert’s account, other users can view his or her trading strategies, data reports, personal email address (the platform stipulates that the trading expert must provide the necessary answers to the user’s questions), and relevant background information (including investment preferences and experience). In addition, the platform mandates that the trading experts themselves must execute the strategies they make public on the platform in order to maintain the trust of users.
Trading experts’ personal account interface shows corresponding information
At present, with the surge in the number of users, the platform will also raise the application threshold for trading experts and take stricter vetting measures; at the same time, it will also set up a trading expert ranking to promote competition and improve quality. The most powerful trading experts will also receive bonuses.
For ordinary users, the operation of Zignaly is simple and convenient: after completing registration, create a trading account or directly import the API KEY of other mainstream exchange accounts (currently supporting platforms such as Cryptocurrency, AscendEx and FTX), and then you can tap on a trading expert. No other settings or position management are required, and the trading expert will operate on behalf of the funds in the account.
Users can directly import other exchange accounts for operation
In terms of the richness of investment targets, the platform will promptly launch the follow-up service of popular coins to meet the multiple needs of users.
It is worth noting that Zignaly has been successfully selected for the “Coin Security Sphere Brokerage Program”. To become a broker node in this program, you must meet the following requirements: have an independent product and account system, a user scale of 20,000 or more, a monthly trading volume of over 1,000 BTC (after successful selection, failure to reach this level in two months will also result in disqualification), a locked position of 3,000 BNB in your CoinSec account, and an independent brand to gain customers independently. The benefits you can enjoy are: get the maximum 60% commission share, share the high liquidity and trading depth of CoinSec, get CoinSec’s user fund security management and marketing guidance, be invited to the annual CoinSec Brokers Node Conference, and the top 10 brokers in terms of trading volume can share 10% of CoinSec’s annual brokerage business revenue.
Second, funds are escrowed by the exchange, NFT insurance underwriting for users
In the traditional securities market, similar to Zignaly with a single tool, the risk posed to users are mainly two aspects: one is the safety of funds, the second is the loss of transactions. For this reason, Zignaly also systematically reduces these risks from two aspects.
For the safety of funds, Zignaly focuses on two aspects: mechanism and technology.
Zignlay’s smart trading interface
Mechanically, firstly, all assets of Zignaly users are stored in exchange accounts such as Coinan, which itself does not act as an asset custodian. Second, trading experts also do not have the right to withdraw any of the user’s assets, as the only right Zignaly gives to trading experts is to trade on behalf of the user, and they do not have the right to perform operations other than trading, such as withdrawing coins. Likewise, in a profit-sharing pooled account, the Trading Expert cannot withdraw coins under any circumstances.
Technically, although Zignaly holds the user’s API key, it is stored in an isolated DMZ with no public access, in RSA encryption, and is not disclosed to any entity or individual. In addition, Zignaly has hired technical consultants, one of whom was formerly the CTO of CoinMarketCap, to provide security advice to the platform throughout. In the long term, Zignaly is also actively working with authoritative security auditing companies to rule out additional technical factors that threaten the security of assets.
For trading losses, Zignaly has adopted the NFT insurance mechanism, which is to set up an NFT insurance pool. the NFT insurance pool is funded by three major sources: Zignaly platform revenue, premium income and sponsor support. In this pool, each NFT is an insurance policy, and users provide Zignaly platform pass ZIG for purchase, and the platform will pay out with USDT when the insurance mechanism is triggered. Thus, Zignaly has also become one of the few platforms that combine NFT with insurance.
According to the introduction, the NFT insurance trigger mechanism: Zignaly will set a “maximum loss ratio” indicator based on the historical data of each trading expert, and disclose it to users at the beginning of the month. If the loss exceeds this value at the end of the month, the insurance will be triggered. The assets paid out will be directly transferred to the user’s account.
Third, around the ZIG wallet to build a quantitative trading value ecology
ZIG, as the platform pass of Zignaly, also takes up the heavy responsibility of fueling its ecosphere. In order to enrich the application scenarios of ZIG and optimize the trading experience of users, Zignaly has developed ZIG wallet. Currently, the platform supports users to pay profit sharing to transaction experts and the platform with ZIG as a means of payment and receive certain discounts through the ZIG wallet. In addition, the trading experts who choose ZIG payment can only be included in Zignaly’s trading experts list and gain exposure. In addition, 5% of the total ZIG amount will be used for “Trading Expert Incentive”.
Support multi-currency top-up method
ZIG wallet security will be entrusted to Cybavo, a professional wallet development agency, to assist in the responsibility. Cybavo will also act as the custodian of ZIG tokens, ensuring the security of ZIG wallet and assets from the technical end.
In addition to the profit sharing payment, the application scenarios of ZIG are
1、 Transaction fee rebate: the larger the total amount of tokens in the ZIG wallet, the higher the rebate amount.
- Buyback and burning program: ZIG will run a token destruction program to build a deflationary model. The first token destruction was completed on June 3, with a total of 330,000 ZIGs destroyed.
- Liquidity mining and other plans: 12% of ZIG will be used for liquidity mining, and related plans such as rewards and guarantees. This will incentivize users to hold a large number of ZIGs.
- Governance and incentives: ZIG holders can vote on key platform updates and features, and users with high loyalty to ZIG will also be incentivized by the platform.
The logic of rising ZIG pass value consists of three points: the necessary means for users to pay for profit sharing; the deflation mechanism to enhance its scarcity; and incentives, transaction mining and a series of offers to increase the value of users’ holdings.
In addition, the Zignaly team is currently working on a mobile Zignaly tool that integrates with the ZIG wallet to fully optimize the experience of using it. Within weeks, Zignaly fully interfacing with the Coin Smartchain (BSC) to enable cross-chain interoperability for follow-the-money transactions will become a reality.
Overall, as a social crypto asset quantitative trading tool, Zignaly is launched in the midst of the bull market wind, targeting the pain point of new users to enter the circle, while its NFT insurance mechanism also plays a certain role of underwriting to some extent to dispel users’ worries. However, in the face of extreme volatility and an uncertain policy environment, it is impossible to predict whether Zignaly will become the leader in digital asset banding tools.
But this innovative model has been fully recognized by the capital and the market, and the volume of nearly 100,000 and growing users is enough to show this. The value of followers and fund-like platforms will also be magnified when the market sentiment fluctuates significantly and more and more investors realize the risks of cryptocurrency investment.
Posted by:CoinYuppie，Reprinted with attribution to:https://coinyuppie.com/read-about-the-crypto-quantitative-trading-platform-zignaly-in-one-article/
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