Meet Kunji, a startup that simplifies crypto investing via digital wealth managers – YourStory | Omd Cialis

After decades of working closely as Vice President with founding teams of Web2 startups, Anurag Dixit became fascinated with the world of Web3 and cryptocurrency. However, he noted that most new investors in this segment, like him, found cryptocurrencies difficult to understand.

To facilitate easy crypto investing, he teamed up with his longtime crypto trader friends Pankaj Jangid, Vivek Pandey, and Harivadan Pandya to found Kunji.

Launched in June 2022, Kunji is a centralized crypto asset management platform that allows users to make passive crypto investments.

“Many investors are drawn to cryptocurrency as an asset class because they find it fascinating and don’t want to give it up. However, due to lack of awareness, inadequate crypto trading skills and lack of time, investors are reluctant to invest in crypto,” says Anurag.

In a poll by The Economist Intelligence Unit, 51% of participating investors said that a lack of knowledge about the cryptocurrency asset market is the biggest barrier to investing in the industry. About 34% of Web2 users said they were concerned about related security issues, and 29% said they were unsure where to buy cryptocurrencies.

Headquartered in Virginia, Kunji also intends to educate investors through digital wealth managers.

Unlike traditional wealth management firms, crypto wealth management involves tokenized assets — any asset whose value has been transferred to a blockchain.

Anurag draws an analogy between Kunji and a digital key. “Digital keys are indispensable in cryptography. Likewise, there is a paradigm shift in asset management, sales and financing, and we want Kunji to be the key to the digital wealth management platform.”

How Kunji works

The startup partners with experienced crypto traders much like any traditional wealth management platform does. These traders act as digital asset managers (DAM).

These deep domain DAMs provide investors with an investment thesis. They create strategies, focus and risk assessments and then create investment pools (DAP – Digital Asset Pool) for investors.

“Investors need to sign up on our platform, enter a code and fill out the KYC to join our beta list. After this is complete, investors will see a list of pools on their dashboard where they can view the pools’ strategy, risk and historical performance. Investors can choose from one or more pools based on this information. Once investors make an investment, DAMs manage their current portfolio,” says Anurag The decryption story.

The minimum investment in these pools is Rs 10.

Given the current crypto market crisis, Kunji intends to keep the pool information as transparent as possible for investors.

DAMs have currently identified three investment pools based on users’ risk tolerance. The three basins are: The Top cap digital assets pool, Arbitrage Opportunities Balanced Pooland Focused alpha blue chip pool.

Top Cap Digital Pool focuses on investing in 15 cryptocurrencies by market cap. While the other two pools focus on digital assets like DeFi and Metaverse tokens alongside Bitcoin and Ethereum.

Tokens on the platform are ranked by factors such as a project’s strength, liquidity, and use cases.

“We are taking this action to keep potentially dangerous assets out of the game. We cannot completely eliminate risks, but we can eliminate those we consider untrustworthy and dangerous,” he adds.

The platform is live in the beta phase With 200 users. DAMs take 30% of the user’s total return as part of the commission.

Anurag says: “DAMs only generate revenue when investors in the pool make money. If an investor’s pool isn’t doing well, DAMs aren’t making money.”

Kunji is yet to decide the revenue percentage, but once the platform goes live, the startup intends to generate revenue through platform fees from DAMs, transaction fees, and fiat conversion or reconversion fees.

market and model

As per the reports by Markets and Markets, the global crypto asset management market size is forecast to be in the range of 0.4 billion. During this projection timeframe, the Asia Pacific (APAC) region is expected to pave the way for sizeable growth opportunities for players who operate in the crypto asset market.

Several new players including KoinBasket, flint, pillow and others offer crypto wealth management solutions. Centralized cryptocurrency-based financial platforms (CeFi) such as WazirX coin base continue to be the market favorites as they offer custodian solutions and user-friendly interfaces.

“The majority of players offer a basket of tokens, their stake is static as market opportunities change over time. The biggest differentiator here is the approach we take to providing solutions. We leave authority and control to investors. DAMs are restricted to trading on the platform; Nobody except the user is allowed to withdraw funds,” adds Anurag.

The startup says DAMs frequently communicate with users, whether to provide updates on the state of the market or to explain how the financial results of the trade came about. When investors seek advice from digital wealth managers, their identity is kept confidential.

The co-founder assures that they will serve a global market and comply with government-imposed regulations. “Every government has its own rules. We don’t just focus on the Indian market. It is not exclusive to any particular region or nation. We are targeting the global market and will comply with each country’s local regulations,” says Anurag.

The way ahead

Kunji aims to go live by the end of August. “Currently we have three investment pools and we are creating another pool before launch,” he adds.

The startup consists of 14 members, including the co-founders and DAMs, and intends to expand its team in the future.

The startup raised an undisclosed amount of funds in the seed round, which was led by private and angel investors. The startup is currently looking for donations.

Edited by Affirunisa Kankudti

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