Project Review: Zignaly — Part 1

Published in

Coinmonks

4 min readMar 2, 2022

With thousands of Crypto projects out there & a multitude of new launches coming every day, it can be daunting at times to comprehend where to put your hard earned money especially if you’re new to this space. This is made tricky by the fact that social media is filled with tales of people, often anonymous, who’ve made a 100x (or so they claim) on a particular coin and propagating the next 100x for you to jump the wagon on. This is not it and often you must have found yourself left utterly confused by by the bear vs bull argument, support & resistance lines, charts, tools and on chain data.

If the above is you, and I admit this was me when I entered this space, be at ease. For I have the ultimate Crypto starter pack for you in Zignaly. Here, I give you 3 of my top reasons to pick Zignaly as the platform to commence your Crypto journey with.

1. Solving a Problem

To be successful, every blockchain project needs to have a use case. Consider a company with no products to sell, no manufacturing facility and just an office keeping record of its shareholders. Would you invest in the stock of such a Company? The answer is a resounding No. So what does Zignaly do? Well a Lot.

In its simplest sense, Zignaly is a social investment platform which connects investors with expert traders who invest / trade on behalf of investors or provide signals for them to trade on their own account in return for profit sharing or a fee. Think of this as a mutual or an exchange traded fund (ETF) but in a decentralized context. You invest in a conventional fiat mutual fund and/ or an ETF because you don’t have the expertise or time to research and trade the underlying stocks. Zignaly does the same from the perspective of Crypto but instead of giving you one option to invest in, offers multiple options across various desired strategies including but not limited to spot, futures, low/high frequency trades etc.

You choose who to invest with and what strategy you’re comfortable with by utilizing Zignaly’s platform where profiles of vetted traders with their returns history guides you in making the best choice. Now isn’t that amazing? Well yes but that is not the end of it.

2. Trust less Environment

The overriding ambition since Satoshi Nakamoto wrote the Bitcoin Whitepaper is to create financial systems that are trust less. With conventional fiat mutual funds or ETFs, your money is in the control of a management company which may or may not have your best interest at heart (Bernie Madoff ring a bell?) Of Course, as someone just starting out, it is incredibly hard on someone like you to handover your funds to a stranger on the other side of your laptop screen. Enter Zignaly.

Under the profit sharing arrangement, by the use of an intelligent API, Zignaly ensures that your funds always remain in your own possession safely tucked in your exchange account. Traders you have invested with have no control of your funds except the ability to invest them to a stated strategy. This creates conditions for a trust less environment creating economic exchange. In the Zignaly world, there is no need for an SEC type watchdog to police asset managers and still fail!

3. Goal Congruence

Finally, there is goal alignment. In the fiat world, asset managers invest and manage funds for other investors. However, they rarely put up their own capital. The result is a principal agent problem that the fiat world has tried to police through a myriad of expensive & ineffective regulatory oversight (ask anyone about Enron). Over here at Zignaly, the expert traders are required to put their money where their mouth is. So any trader you invest with is not playing with your money but has a stake in the game too by putting up their own money to the trades they are doing on your behalf (in essence you’re Copy trading in an automated trust less manner an expert trader). If he loses for you, he loses for himself. That kind of goal congruence ensures that your interests and that of the trader you invest with are aligned. No wall street get out of jail free cards here!

As can be inferred, Zignaly is a great product which solves an important gap in terms of helping you take your first steps in Crypto or if you are too busy to do trading full time. Next up, I shall review $ZIG, the coin powering the Zignaly ecosystem which shall give you an in depth understanding why it should be an important part of your portfolio.

Disclaimer: The views presented in the article are the personal opinion of the author & do not represent that of his employer nor are financial advice. Please do your own research before investing in or using any product mentioned in the article. The author may or may not be invested in any particular product.

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Project Review: Zignaly — Part 1

1. Solving a Problem

2. Trust less Environment

3. Goal Congruence

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Written by Ahmed