Our new Disruption by Blockchain series aims to highlight companies that are leveraging the incredible potential of blockchain technology to disrupt and revolutionize their industry. Through one on one interviews, we'll speak directly with industry leaders to cut beyond the hype and get directly to the heart of practical use cases and examples of how it will change the world, one industry at a time.
The following is an interview we recently had with Daniel Feldman, Chief Development Officer of Take Profit.
1. What’s the history of Take Profit? How and where did you begin?
DF: On March 17 our CEO started Cryptoconsulting, a channel for crypto traders in Telegram. Its organic growth was huge and he started to receive tons of feedback and questions from members. One common thing among all those questions was pretty simple. Many newcomers want to trade independently but do not want to learn. So here is the gap. And that is where the thought process usually starts.
2. Who are the founders and key team members?
Ivan Tumanov, CEO
I am a professional coder and trader, and this is what I do for life. I understand that the best investment of my money is my own project.
My goal is to create a better platform for traders, which would be useful for both professionals and beginners.
Daniel Feldman, Chief Development Officer
7 hard years of mathematical education. 2 wonderful years of selling cloud services in Microsoft. 1 chance to change the world of crypto trading with TakeProfit.
I fell in love with the product, and I want the market to love it the same way.
Alexey Kurepin, Backend Developer
Experienced professional with more than 15 years of practical experience.
I took part in creating exciting and well-known products for the markets of Russia and the CIS: Lenta.ru, «Vedomosti» and the largest on-demand cleaning service — Qlean.
Alexey Astafiev, Frontend Developer
I studied graphic design but became a developer.
Previously he worked for Tinkoff Bank as a senior elementary developer. With more than 8 years of experience, he joined the TakeProfit team to create the most advanced product in the field of crypto trading.
3. What problem are you solving? Who are you solving it for?
DF: Here is how you would typically get into cryptocurrencies. After waves and waves of media hype around bitcoins and it's new all-time highs you finally decide to purchase some. Even at that point, you are surprised that purchasing them is not quite easy. Secure storage is a more difficult subject. But at this point, things are only starting to get complex.
Now you have your money invested in BTC. Unlike your other investments, it's fluctuating. Yes, not just growing. You can't resist regular checking your deposit. And one day you see that your deposit in USD decreased. The rational part of your brain says “Keep calm, it's temporary, BTC is here to stay”. But the emotional says “Hey you are losing money! Fix it right now!”
Well, things are pretty easy if you invest 50-100k $ or more plus live in a megapolis. You just bring your money to one of crypto investment funds in your city. And they secure your funds. But most of us are not ready to invest 50k $. At least in the first stage. So a brilliant idea comes to our mind. “I should start trading BTC to USD. It looks easy. Buy low, sell high.” People with such approach do not need much time to lose all their funds. Most of them start saying crypto is a bubble and never get back to investing.
But some are ready for the second shot. This time more serious. And there are two options. Get the expertise or buy the expertise. Getting the expertise is tough. Well, at least for me. Investing time and effort to learn crypto trading requires a lot of motivation. The subject is hard and you surely will not get any quick results. Most of us would give up here. On the other hand, there are hundreds of crypto trading courses out there. Few of them are cheaper then 300 USD. And it's really hard to decide if it is worth it.
Not to mention that trading is psychologically tough. So most of the people decide not to trade independently. And the best option for them is to join a pool of experts or receive advice from one particular expert. Such trading advice is called “signal”. You receive a short message saying what currency to buy when to take your profit or stop your losses. Sometimes it's backed up by chart and argumentation. Pretty easy to use. Just copy-paste and profit, right? Of course not. Subscribing to signals is pricey, typically 200-600$ per month. And there is no way to check profitability of previous signals from this expert. You only rely on is promises and his screenshots.
So here is the huge gap. More and more “regular people” are becoming crypto investors. But there is no 100% working way for small and midsize investors to secure their funds.
4. What is your solution to this problem?
DF: Crypto market is very very volatile. Which means that a lot of people are losing some money, and some are earning a lot. Yes, professional crypto traders earn a lot, typically 10-20% per month in USD. Some of those traders work independently, some work for funds and some are selling trading signals in Telegram.
Take Profit is a marketplace for signal providers. We take traders of all 3 types and motivate them to post trading signals on our platform. All their signals are verified and the traders are rated according to their profitability.
What is really important for a regular investor is that he can take a look at any traders performance. He sees full history of signals given and profits received. Based on that he can start a free trial. Absolutely risk-free and scam-free for him. And he only starts paid subscription if he is satisfied with the quality of signals during trial.
Our roadmap is even more exciting. This spring we will release 1-click integration with major exchanges. Here is how it works. You receive a notification that your favourite trader posted a signal. For instance “Buy Ethereum. Potential earning 40%, maximum loss 10%.” All you need to decide is what share of your deposit you are willing to invest. Then one click and it is executed in your account. And in a few hours or days, you will be notified of this signal's results. Killer feature for lazy investors.
We are also working on a lot of tools for more curious investors. Spreading investing culture is one of our goals. Free and crystal clear online trading courses and tests will be available for all our subscribers. You will learn to manage risks of your portfolio, assess new coins and stay calm whatever is going on in the market.
Take Profit stands for transparency and so is our development process. We release a beta version with absolutely free access to trading signals. Plus we do regular contests for best traders. And most importantly, we develop new features based on feature requests from our beta testers chat. I am not trying to sell you anything but would really appreciate if you become a beta tester to shape our product together.
5. Why is your industry ripe for disruption?
DF: We conducted a huge research on crypto investments industry and will gladly share key insights.
– Over 800 000 people have subscribed to crypto trading channels in Telegram alone. During 2017 this number has been growing approximately 10-15% month over month.
– Many of them are already paying for daily trading insights (signals). Monthly revenue of this market is approximately 140 BTC (1,4m $). And it's just in Telegram! If we add huge communities in WeChat + small independent resources it may reach astonishing 350-400 BTC per month. And keep in mind that this market is just 1 year old!
– There are almost 6 million active crypto wallets. Every 50th wallet owner is trading on a regular basis. The rest are simply storing cryptocurrencies there
The switch to more “independent” trading already took place in 2013-2016 with traditional currency trading. Signal providers and copy-paste trading companies like ETorro has been growing even when the market declined. Top platforms for independent trading currently earn approximately 14-16m $ per month.
6. What’s the future of your industry?
Prediction #1: Many existing cryptocurrencies may collapse but few of them with the actual team, product and value will be valued somewhere around top of SNP 500 companies. Which means less risk and less volatility for them. And this will bring the majority of “regular” investors to the crypto assets.
Prediction #2: Era of decentralisation. ICOs are actually the most relevant way to raise money for young tech companies. So we may see new cryptocurrencies booming. It will be harder for them to raise funds, but if they do we will see new high scores in “worlds fastest unicorn startup” category.
Prediction #3: Unlike traditional markets, investment funds and asset managers will not be a mass success in crypto. The community here is a strong advocate of decentralisation. So their investment strategy is “Pay for the insights but don't hand over your money to any kind of 3rd party.