I Want To Grow Like You — How FNDZ is Bringing DeFi Copy Trading to New Heights
Mimicry is the Ultimate Form of Fl̵a̵t̵t̵e̵r̵y̵ Investment Strategy
We’ve all seen the TikTok videos, Reddit posts, Tweets, and other forms of social media content that showcase a trader’s succesful positions. Most of the time, these posts utilize a type of “follow-my-lead” call-to-action or at least some form of “let’s get rich together” rhetoric. In some cases, these traders even explicitly call out the millionaires and billionaires whose positions they are emulating. While the majority of these individuals are hoping to gain more followers or start some type of trading course side-hustle, they’re all in some way taking part in the rapidly expanding market of copy trading, also known as social trading.
What is Copy Trading?
Copy trading is by no means a new invention. Although, the rise of social media and the growth of eTrading platforms (particularly those in the crypto world) have created a relatively recent explosion of activity in this sector. The concept is fairly simple and makes perfect sense for most amateur investors.
In a nutshell, this form of trading revolves around the idea of “monkey see, monkey do”. You place your faith in traders that you follow and you take the same positions that they do, either manually or through the use of an automated trading platform. It’s the obvious result of a growing shift towards transparency in financial markets combined with a huge increase in retail trading. And, of course, copy trading fits pretty perfectly within the realm of DeFi and cryptocurrency.
Social vs Copy Trading — Betting On the Investor
Some in the DeFi community attempt to make a distinction between social trading and copy trading. The former is often pointed to as a broader term that encompasses anyone receiving trading ideas from another person via social platforms. The latter is used more for explicit copying of an individual’s position(s) based on past performance. This distinction is useful when we’re talking about platforms that actually offer this type of information or these specific investment services.
If you just want to get ideas about how to potentially grow your portfolio, then you can watch Mad Money, read the Wall Street Journal, or take a look at r/WallStreetBets. These resources can occasionally provide glimpses into the actual investment strategies of specific investors, but they usually just offer general guidance and the occasionally humorous meme. If, however, you’re hoping to actually mimic the positions of successful traders, then you’ll likely need to join a platform or community that provides some form of automated trading & full transparency of the traders’ positions that you’re interested in. While standard forms of trading are essentially a bet on the investment, copy trading is more of a bet on the investor(s).
Not Just a Copy & Paste Enterprise — Issues with Current Copy Trading Platforms
On its surface, copy trading probably seems like an absolute no-brainer. Why wouldn’t I want to simply copy experienced traders and generate the same returns that they do? Well, up until the relatively recent explosion of DeFi, the average trader’s ability to take part in automated copy trading has been stymied by the exploitative and intentionally convoluted systems that are commonplace in the realm of centralized finance.
The exact size of the copy trading market is a bit hard to pin down, but the modern platform industry alone is expected to reach $70 billion by 2025. That includes popular platforms like eToro, ZuluTrade, and PrimeXBT, to name a few. These sites have done a somewhat decent job of providing copy trading solutions to the average retail investor, but they’re certainly not without their pitfalls. The current problems in the copy trading industry run parallel to the larger issues that centralized financial institutions face, most notably a lack of true transparency, confusing and hidden fee structures, too much focus on derivative investments, and unnecessarily complicated or difficult-to-use interfaces.
The Worlds Best DeFi Social Trading Platform — FNDZ
FNDZ is a DeFi copy/social trading platform that’s designed to address all of the problems of the current market while providing some additional exciting features to promote community, growth, and adoption. The primary selling points of FNDZ are its completely transparent fee structure, the ability to retain total control of your assets, the use of smart contracts to reduce the risk of exploitation, and its easy-to-use, readily accessible platform interface.
Like many platforms in the DeFi space, FNDZ works with blockchain verification to provide total transparency of fees and trades. All profits and losses (PNL) are Onchain verified for every featured trader, meaning that the average user can rely on 100% true and transparent performance data to determine which investors they’d like to copy. This focus on transparency is mirrored in the FNDZ fee structure, which essentially equates to a performance fee of 2% incurred by the “copier” taken from the purse of successful traders, a management fee that’s shared between the FNDZ platform and the individual traders, and a redemption fee that’s incurred once funds are pulled from the trading vault.
Another tactic FNDZ is using to promote the adoption of their platform is total control over your assets. Unlike many centralized ecosystems, FNDZ enables each user to retain complete control over the assets that they deposit into the vault. There are no holding requirements or withdrawal maximums and all traders can access and withdraw their funds at any moment using a unique wallet ID.
Lastly, FNDZ is utilizing smart contracts (with audits) and a user-friendly interface to ensure its platform is designed for traders of all experience levels while also maintaining secure & transparent exchanges. The smart contracts significantly reduce the exposure to third-party exploitation and essentially enable traders to exchange without the risks that many centralized platforms encounter. The easy-to-use interface and uncomplicated setup ensure that amateur and veteran traders alike can feel safe and secure while they enter the incredibly lucrative world of copy trading.
More Exciting Features
On top of the standard, yet DeFi optimized feature-set that FNDZ is offering, they’re also including a few fun and exciting elements within their ecosystem. These include weekly trading challenges, a trading leaderboard, internal advertising options, and a potentially very profitable referral system.
The trading challenges are posted each week and are essentially competitions with corresponding prizes set out for the top traders who can succeed within the given parameters. While some self-proclaimed “serious investors” might scoff at this feature, the truth is that competition and gamification are tried-and-true methods for increasing adoption and expanding upon the overall social engagement within the platform. They also offer traders the ability to showcase their skills beyond the performance metrics of their standard portfolio positions.
The leaderboards are another way FNDZ is helping traders optimize their exposure and grow their following. The top traders on the platform will be featured on the leaderboards based on their Onchain PNL certified performance. This helps incentivize traders to “beat out the competition” in order to maximize their potential following and rewards the top traders with a featured listing that all users have access to.
If the trading challenges and the leaderboards are not cutting it for experienced traders who are new to the platform, FNDZ is also including an advertising solution where FNDZ tokens can be leveraged to boost exposure through “sponsored” listings. Of course, these traders will still need to present their transparent portfolio performance through Onchain PNL verification. This allows for a fair distribution of exposure between veteran FNDZ traders and newcomers with a proven track record outside of the FNDZ copy trading platform.
Finally, FNDZ is providing its retail investors with an additional avenue for profit by including a referral system. With FNDZ referrals, 0.5% of each performance fee is paid out to users who refer traders to other succesful investors. Like most referral structures, this creates an obvious win-win-win scenario for the retail investor, the professional trader, and the FNDZ platform. It’s a perfect example of how FNDZ is exploring every single opportunity to increase overall adoption, improve engagement, and reward its users.
“Let’s Get Rich Together”
FNDZ is committed to creating an easy-to-use interface and an intentionally simplified toolset so investors of all types can easily access and engage with its platform without being bogged down by onboarding & confusing financial rhetoric. The goals are to help professional traders monetize their ability to create succesful investment strategies while also allowing the average trader to place their faith in the pros “while kicking back on auto-pilot.” Leveraging state-of-the-art DeFi solutions and combining them with the popular investment strategy of copy trading, FNDZ is democratizing the ability for professional investors to tell their retail followers “let’s get rich together”.