After serving as an executive vice president for Web2 team members of the founding teams of startups for many years, Anurag Dixit was intrigued by the world of Web3 and cryptocurrency. However, he realized that, like him, many new investors in this segment were unable to grasp cryptocurrency.
To allow easy cryptocurrency investments He teamed up with his long-time crypto trader buddies Pankaj Jangid, Vivek Pandey as well as Harivadan Pandya to start Kunji.
It was launched in June 2022. the Kunji platform was a centralised cryptocurrency system for asset management that allows users to make passive investments in crypto.
Many investors are attracted to crypto for its potential as an asset as they are intrigued by it and don’t want to be left out of it. However, due to a lack of understanding, inadequate crypto trading skills, and a lack of time, many investors are reluctant to invest in crypto Says Anurag.
In a study carried out by The Economist Intelligence Unit , 51% of investors who participated in the study had indicated that ignorance regarding the cryptocurrency asset market was the most significant hurdle to investing in this sector. A little over 34 percent of Web2 users reported being concerned about security concerns as well as 29% who claimed they didn’t know the best place to purchase cryptocurrencies.
Virginia-headquartered Kunji also intends to educate investors through digital asset managers.
Contrary to traditional asset management firms that manage traditional assets, crypto asset management includes tokenised assets, which is any asset that is transferred to blockchain.
Anurag draws an analogy in Kunji and digital keys. Digital keys are vital in cryptography. Also, there is an important shift in the ways assets are controlled, sold and financed. We would like Kunji to be the main component of this digital platform for wealth management.
How Kunji works
The startup works with expert cryptocurrency traders, just as any traditional asset management system does. They function under the name of Digital Asset Managers (DAM).
These DAMs, which have a substantial domain expertise, can provide an investment proposition to investors. They develop strategy, focal areas and risk assessments , and make funds for investment (DAP–Digital Asset Pool) for investors.
Investors have to sign-up to our platform, input the code and complete the KYC to be able to join our beta list. Once that’s done and verified, investors will receive the pools’ names on their dashboards which allows them to view their the strategy, risk and the pools’ previous performance. Investors have the option of choosing several pools based on this information. When investors invest DAMs will oversee their portfolios at present.
Given the recent market turmoil, Kunji intends to keep the details about the pools as clear as is possible to investors.
DAMs have identified three investment pools based upon the risk preferences of their users. The three pools comprise the The Top Cap Digital Assets Pool, Arbitrage Opportunities Balanced Pool as well as the Alpha Blue Chip Focused Pool.
Top Cap Digital Pool focuses on investing in 15 different cryptocurrencies in terms of market capitalization. The two other pools concentrate on digital assets such as DeFi as well as Metaverse tokens in addition to Bitcoin as well as Ethereum.
The tokens available can be found on the exchange based on the strength of the project the liquidity of its users, as well as applications.
We do this in order to keep potential risky assets from the game. There is no way to completely eliminate risk however, we can eliminate those that we consider to be unsafe and risky, he adds.
The platform is currently in the beta stage which has more than 200 registered users. DAMs take 30 percent of the return to the client as component of commission.
Anurag states DAMs are only revenue-generating when the pool’s investors are earning money. If the pool of investors isn’t performing, then DAM’s do not make any money.
Kunji is still deliberating the percentage of revenue it will earn, however, after the platform goes live it will earn money through platform fees, which include DAMs as well as transaction fees. the cost of reconversion or conversion.
Model and market
As per the data from Markets and Markets the global market for managing crypto assets size is predicted to grow by $0.4 billion as of 2021 and reach $1.2 billion in 2026 with a Compound Annual Growth rate (CAGR) that is 21.5 percent. In this time frame, Asia Pacific region (APAC) is predicted to open the opportunities for significant growth for companies who operate in the market for crypto assets.
Numerous new players like KoinBasket, Flint, Pillow and others are providing solutions in the area of crypto wealth management. Financial centralisation through cryptocurrency (CeFi) platforms such as WazirX Coinbase remain top of the line as they offer custodian services and user-friendly interfaces.
Majority of players provide an array of tokens, their shares are not changing because the market’s opportunities change over time. The main difference is the method we are applying to deliver solutions. We allow investors to exercise authority and control. DAMs can only trade on the platform. No person is allowed to withdraw funds besides the user Anurag adds.
The company says DAMs often communicate with users in order to update users on the current market condition as well as to provide an explanation of how trade’s financial performance was arrived at. If buyers seek help from the digital asset manager their names are not disclosed.
The co-founder claims that they cater to a global market , and will abide by the rules the government enforces. Each government has their own set of rules. We do not only focus exclusively on only the Indian market. It isn’t restricted to a specific country or region. We’re targeting the global market , and we adhere to local laws of every country, Anurag adds.
The path ahead
Kunji is aiming to go live before the end of August. At the moment, we’ve got three investment pools and we’re planning to launch a third pool prior to the launch date, the CEO says.
The company has 14 employees comprising co-founders, the co-founders, and DAMs and, in the near future the company plans to grow its team.
The company raised an undisclosed amount of capital in the seed round , which was led by angel and private investors. The company is trying to raise capital.