Copy traders give permission for investment decisions made by a more knowledgeable trader to affect a portion of the funds in their own trading accounts.
The startup CoinPennant[1] plans to elevate this concept by channeling advice from established traders for those who want to enter the fast-paced cryptocurrency investment space by using a combined social network and blockchain-based copy trading platform.
Companies like eToro and ZuluTrade already provide copy trading services for foreign currency trading, and they have also ventured into cryptocurrency. CoinPennant wants to specialize in the cryptocurrency space by reinventing copy trading on a blockchain-based platform.
David Hoverman, CoinPennant’s lead business developer, said that the fast-moving and volatile cryptocurrency market is beset by risk and fear, uncertainty and doubt that can be daunting to newcomers.
“It’s not necessarily due to lack of access but just lack of knowledge,” he said. “Good, reliable information, especially in relation to trading, is hard to come by, and generally when you come by it, it’s expensive to obtain.”
The CoinPennant team originally envisioned a subscription-based model that would use algorithms to analyze market data and push market indicators to a user’s dashboard. During its research, it noticed online “signal groups” offering trading information and opinion for a regular financial payment. Some were unreliable, but some were legitimate, Hoverman said. This gave the team the idea to expand its services.
Alongside its original data analysis services, the company will fold a marketplace for crowdsourced trading advisory services into its platform. Investors will access the market via a social network that lets them collaborate with each other and follow those with “master trader” status in the community.
Newbie traders can shadow these established traders in two ways. The first is by purchasing trading tips that master traders publish on the system,
