LeapRate Exclusive… LeapRate has learned that a new Asia-focused social trading and investing site called CopyCash (at copycash.io) has launched.
The new Blockchain-based project is being backed by some names familiar to those in the Retail FX world, including Lior Nabat, founder and still CEO of Tradency which pioneered the mirror trading concept during the infant years of the Retail FX sector, as well as Mario Singh, CEO of New Zealand based FX brokerage Fullerton Markets.
We’d note that Mr. Nabat and Mr. Singh know each other quite well, with Fullerton being a client of Tradency, implementing Tradency’s RoboX and Mirror Trader platforms last year.
Other Advisory Board members include Blockchain Age co-founder Derin Cag, cryptography expert Amir Eslampanah, and Richard Wang, a partner at DFJ Dragon, the China arm of billion dollar VC firm DJF founded by Tim Draper.
Acting as CEO of CopyCash will be Bobby Lieu, who co-founded the Shenzhen Digital Assets Exchange. The company will be based in Singapore.
CopyCash did not, of course, invent social or copy trading, which has had a very mixed history (mainly negative) in the Retail FX sector. While social trading – enabling novice traders to gain from the expertise of experienced traders while giving the experienced traders an income stream from “being followed” – it simply has been difficult to put into practice, with perhaps one recent success being at Ayondo.
According to CopyCash, a common problem in the social trading world is one of prevalent fraud. This happens because much of social trading is done via a centralized service. Thus, verification and credibility become a common problem. Many such frauds are found in countries like India and China. There is no platform for bona fide traders and investors to benefit from a social trading service via a decentralized platform.
CopyCash is looking to change that, via an ecosystem that is made transparent and genuine as it is built on blockchain technology. CopyCash has coined its own term for social trading and investing called “Social Travesting“, which it states will be the hallmark of the CopyCash platform. The CopyCash platform will allow traders to build their own networks and participate in the successful trading results of others.
CopyCash states that it will be able to provide a transparent social trading and copytrading platform built on blockchain, where trading signals from top traders are made public. The platform is based on Ethereum, completely decentralized and governed by a dedicated system of smart contracts, which promotes security and transparency. Thus with CopyCash, everyone can leverage on the expertise of others in foreign exchange, cryptocurrencies, indices, stocks, CFDs and commodities, thereby creating a win-win situation for top traders and for customers alike.
CopyCash plans to connect with more than 30 exchanges or brokers such as CME and Coinbase via APIs. Users may open broker accounts in these exchanges to copytrade easily. Data information like the amount traded, time, price, currency and assets are stored in smart contracts. The rewards are also issued by smart contracts on the Ethereum blockchain.
Users send legal tender or cryptocurrency to accounts that connect with
exchanges and brokers. The accounts will interact with smart contracts to
trade and get rewarded by smart contracts automatically.
Traders are professionals working in financial institutions or corporations. They buy and sell cryptocurrencies or Forex on a daily basis. CopyCash will display the performance of each registered trader, allowing users to choose a trusted trader to follow and add his/her strategy into their investment portfolio.
CopyCash will also be open to affiliates. Affiliates can send new users to the CopyCash platform and get paid with CCC from CopyCash’s affiliate smart contracts. CopyCash’s token contracts and trading contracts will be deployed on the Ethereum blockchain. Traders’, investors’ and affiliates’ crypto assets are also stored on the Ethereum blockchain.
As far as business model goes, CopyCash plans to charge customers what it calls an affordable annual subscription to access its social travesting eco-system. It will also charge commissions from profits generated by copytrading. CCC – Copycash’s internal token – will be used as a privilege to pay commissions for profits generated by copytrading.
CopyCash has already held its ICO private pre-sale, and plans to soon launch its public pre-sale soon.
As we noted above, this isn’t the first crack taken at truly democratizing and expanding the notion of social trading and investing. But at least in theory, this might be an example where the Blockchain provides a neat solution to some of the nagging issues social trading has faced in the past.