Home General Investments Meet Kunji, a Startup Simplifying Crypto Investments Through Digital Asset Managers

Meet Kunji, a Startup Simplifying Crypto Investments Through Digital Asset Managers

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After working closely as VP with the founding teams of startup Web2 for decades, Anurag Dixit was intrigued by the world of Web3 and cryptocurrency. However, he observed that, like him, most new investors in the segment find cryptocurrencies difficult to understand.

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

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

“Many investors are attracted to cryptocurrency as an asset class because they find it intriguing and do not want to miss it. ‘a lack of time makes investors reluctant to invest in crypto,’ says Anurag.

In a survey conducted by The Economist’s Intelligence Unit, 51% of investors who participated said that lack of knowledge about the cryptocurrency asset market was the biggest barrier to investing in the industry. About 34% of Web2 users said they were worried about related security issues, and 29% said they didn’t know where to buy cryptocurrencies.

Virginia-headquartered Kunji also intends to educate investors through digital asset managers.

Unlike traditional asset management companies, crypto asset management incorporates tokenized assets, which is any asset whose value has been transferred to a blockchain.

Anurag draws an analogy between Kunji and a digital key. “Digital keys are essential in cryptography. Likewise, there is a paradigm shift in how assets can be managed, sold and financed, and we want Kunji to be the key digital wealth management platform.

How Kunji Works

The startup partners with expert crypto traders just like any traditional asset management platform. These traders function as digital asset managers (DAM).

These DAMs, with significant business expertise, offer an investment thesis to investors. They create strategies, focus areas and risk assessments and then create investment pools (DAP – Digital Asset Pool) for investors.

“Investors need to register on our platform, enter a code and complete KYC in order to join our beta list. Once this is completed, investors will see a list of pools on their dashboard where they can see the strategy, “the risk and historical performance of the pools. Investors can choose from one or more pools based on this information. Once investors make an investment, DAMs will manage their current portfolio,” says Anurag. Jhe deciphers the story.

The minimum investment in these pools is Rs 10.

In light of the current crypto market crisis, Kunji intends to keep pool information as transparent as possible with investors.

DAMs have currently identified three investment pools based on users’ risk appetite. The three basins are: The Top Cap Digital Asset Pool, Balanced Pool Arbitrage Opportunitiesand Alpha Blue Chip Targeted Pool.

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

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

“We are taking this action with the aim of keeping potentially dangerous assets out of the game. We cannot completely remove risks, but we can eliminate those that we deem 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 states that “DAMs only generate income if the investors in the pool make money. If an investor’s pool isn’t performing well, DAMs don’t make money.

Kunji still decides the revenue percentage, but once the platform goes live, the startup intends to generate revenue through DAM’s platform fees, transaction fees, and conversion or conversion fees. fiat conversion.

Market and model

According to reports from Markets and Markets, the global crypto asset management market size is expected to grow from $0.4 billion in 2021 to $1.2 billion by 2026, at a compound annual growth rate (CAGR) of 21.5% . During this projection period, the Asia-Pacific (APAC) region is expected to pave the way for considerable growth opportunities for players operating in the crypto asset market.

Several new players including KoinBasket, Flint, Pillow and others offer solutions in the field of crypto wealth management. Centralized cryptocurrency (CeFi) based financial platforms such as WazirX Coinbase continue to be market favorites as they provide custodian solutions and user-friendly interfaces.

“The majority of players offer a basket of tokens, their share is static as market opportunities change over time. The biggest differentiator here is the approach we incorporate to provide solutions. We leave the power and control to investors. DAMs are limited to trading on the platform, no one is allowed to withdraw funds except the user,” adds Anurag.

The startup claims that DAMs communicate with users frequently, whether to provide updates on the state of the market or to explain how the trade’s financial results have been achieved. When investors seek advice from digital asset managers, their identity remains confidential.

The co-founder says they cater to a global market and will comply with government imposed regulations. “Each government has its own set of rules. We are not just focusing on the Indian market. It is not exclusive to any particular region or nation. We are targeting the global market and will comply with local regulations in each country,” says Anurag.

The path to follow

Kunji aims to go live by the end of August. “Right now we have three investment pools, and we’re creating one more before launch,” he adds.

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

The startup raised an undisclosed amount of funds in the seed round led by private and angel investors. Currently, the startup is looking to raise funds.

Edited by Affirunisa Kankudti

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