2018 showed crypto users the essence of blockchain projects, many of which did not enter the launch phase after collecting funds through an ICO. Now the crypto market is waiting for the actual proof that the blockchain technology is really a necessity for various sectors of the economy. DeCenter spoke with Gregory Kim, CEO of Quantfury, whose product and company offer an application for trading on the traditional and crypto markets without commissions and is an example of true blockchain implementation in Fintech.
Let’s begin by talking about your current state of affairs: how was 2018 for you and your platform?
It was an exciting year. We raised institutional funding, grew our team, and we saw through our long term vision – making the Quantfury app available to cryptocurrency holders worldwide.
Can you tell our readers about your platform in more detail?
Quantfury is taking on the retail trading industry and giving the crypto owners the opportunity to use digital currencies as collateral and to trade across traditional and cryptocurrency markets with fiat funds, avoiding any commissions, leverage fees or any other type of fees, and at the best available market prices.
The Quantfury app start page displays trading pairs and open markets. Gray color shows the closing of a trade. In the right corner there is a search option where users can add any of the 825 financial instruments.
What lead you to this crypto project? What, generally speaking, sparked your interest in the cryptocurrencies?
I graduated with a bachelor's degree in economics, and for more than 10 years held managing positions in the field of trading at such large investment companies, as Merrill Lynch, Credit Agricole CIB, ING Wholesale Banking and others. My banking career gave me an excellent insight into risk management and alpha channel generation, as I was operating with over a billion dollars in daily trading volume, generating income and operational growth for Asia and the Pacific regions.
After that, I became interested in cryptocurrencies and realized the broad possibilities that they open up for the retail industry. In 2017, I co-founded Quantfury to promote business development as the core of growth, market understanding and leadership. I represent a talented team of people here at Quantfury. My co-founders are from the Fintech and traditional trading world and are talented ‘A’ players with the deepest understanding of the industry, which is plagued with disadvantageous conditions for retail traders.
What do you mean by' “disadvantageous conditions for retail traders”? And how did you come up with the idea of creating Quantfury?
Trading in traditional and crypto markets can be unprofitable for many traders due to high commissions. This is what drove our vision to develop a business model that aligns the interests of all participants of a traditional retail trading model. Trust is a long gone notion that was once present in financial markets. The limited number of players who operate those markets do not necessarily have the best interest in mind of those who they serve, and provide access to the markets. We operate a business model that goes beyond “not being evil”, transforming, thanks to blockchain, to we “cannot be evil” to our users.
Demonstration of the VTS / USD trading pair.
It is a known fact that cryptocurrency exchanges earn profit on commissions, which are set by default. How does your project earn profit?
The Quantfury operating model is based on the use of assets most valuable for any trader, their trading data. For example, no one pays for paying Google, Instagram or Twitter. These companies gather user data and monetize it through advertising. Our platform uses machine learning to study the behaviour of traders and obtains predictions of the results of their incoming purchase or sale requests.
But why do you need a blockchain? A trading platform can be organized using other tools.We are not a crypto company, rather we are a fintech company. Using blockchain and cryptocurrencies gave us a few key advantages: reaching and onboarding our customers, tremendous cost-effectiveness, tokenizing the business model, so our investors, the tokens holders, reap the benefit of our operations, which are also transparent and auditable.
In several interviews you have stated that your project unlike others uses blockchain to its full potential. Can you provide examples that would prove that Quantfury has an actual use case for blockchain and that it gives your project a competitive advantage?
Quantfury app reaches a global user base, that is able to onboard and use their crypto, in return to receive a value proposition within a multi billion dollar industry that is unmatched compared to people using the same industry with fiat. Our token offering represents the asset, and the value that the Quantfury business model generates.
What observation or research led you to believe that this approach to working with crypto-assets is a necessary one for the crypto community given that the current state of crypto market is less than favorable with many players selling off their holdings and leaving the industry altogether?
It’s true that we could offer onboarding with PayPal or Skrill, or even credit cards. We would be very popular, with a much broader reach. We are not saying we will not do that. Our token holders would love it. Having said that accepting cryptocurrencies at first as the means of transactional value for us was always a strategic choice. Crypto holders fit our target audience - those that know that their parents’ financial markets were different and search for new exciting financial and technology opportunities. We look at them as early adopters, the core of our community. We believe in global strategic long-term value of crypto because of platforms like Quantfury, because it allows us to do things differently and offer better conditions for users globally.
What problems to do you encounter in crypto trading the most?
If you’re talking about the part of our platform that lets people trade crypto pairs – it’s volatility. We hate to see people get hit by huge price swings, despite trading without any maker and taker fees and at the existing best bid and ask prices mirroring global exchanges.
Indeed, high volatility of digital assets is the main problem for cryptocurrency holders. What advantages do traders in traditional markets have compared with crypto-traders?
First of all, let’s define the major difference between the traditional markets and the crypto markets, which is the history. More history a market has i.e. more mature the market, more tendency to reflect the fundamentals with abundant public information through 24/7 news on companies, economics, and geopolitics, which should be reflected in the asset prices efficiently.
Crypto market on the other hand, has a short history, with lack of available information with uncertain fundamentals, which means the price movements are more prone to the rumours and speculative moves. I also think having a 24/7 market can be tiring but also prone to unpredictable in price movements during illiquid hours.
In the appendix under each trading pair there is a section with news that affects the value of assets. In this case, a summary is presented at BTC.
What are your short-term and long-term goals for this project? How will it develop in the future? And how will you attract new members of the crypto-community that have lost their faith in the working efficiency of blockchain projects?
Our short and long term goals are the same. We are listening to our users, and want to give them the best value possible by offering the best execution platform condition-wise to trade traditional and cryptocurrency markets. Our app speaks for itself, we plan a lot of cool features, our roadmap is packed, we are on it 24/7.
How would you describe the current state of the crypto market? What is the cause of the prolonger bearish trend we are witnessing? And how will the market develop on 2019?
It’s very easy to tell after the fact, and hard to predict long-term. Crypto market is here to stay, and as any market that goes into maturity, it goes through different stages. And today I believe we are living through one of them.
How soon will the mass adoption and implementation of blockchain technology in the global production happen? Do you believe that integration of this technology into different projects is truly necessary?
Look at Quantfury app. It’s about beautiful minds of people and their creativity, focusing on delivering real value through product that has actual use-case, problem solution and value proposition. It’s not about paying $1000 to sit at one of those conferences discussing the future impact of blockchain. I’m actually surprised that outside of Quantfury, there are very few products out there that offer far-reaching actual value to people using blockchain.