In today’s article, we’ll be getting into the topic of copy trading and how, more specifically and nowadays, it is possible to do it in “DeFi-Style”, thanks to professionals like the peeps at FNDZ. We’ll be fleshing out all the details throughout the article, but it’s also important to introduce the FNDZ project in a nutshell – so much as to have a clear “preface” of what’s coming next.
Basically, FNDZ aims to be “the first” DeFi, blockchain-based social trading platform facilitating copy trading by connecting retail investors with a network of experienced, proven, and profitable traders. From this perspective, FNDZ tries to bring to the table easy-of-use, transparency, and secure ways of profiting from the experience of more senior traders, all via a truly decentralized angle, thanks to the integration through DeFi compatible wallets, such as Metamask. It’s a lot of stuff in just a few sentences. So let us unpack most of the above by going in order. You might not be familiar with the concept of “Social Trading”. And that’s the first concept that we’ll be trying to clear up.
- What is Social Trading?
Social media has been able to change and modify how we relate and interact with one another. Personal finance makes no exception. Just like finding new ways to relate can make us more resilient and expose us to new information in the social environment, the same way social trading helps us meet a basic human need for connection.
Put it simply, social trading allows users to exchange investment-related knowledge. It is a form of trading that supports and empowers retail traders by helping them monitor the activity of skilled traders on the network and also mimic them. Traders can use signals to express their positions to followers on a social network and users can then automatically copy their strategies. This allows for new and less experienced traders to diversify their portfolios and a time-saving and convenient way, reducing the time spent on acquiring new skills or even searching for information.
Social traders are also able to openly and transparently discuss trading or investment ideas and copy/follow strategies that mirror their risk/rewards appetites.
Now, this might be all too familiar to you if you’re a trader on “conventional” trading platforms (some renowned examples might be eToro, TradingView, etc…). In that case, you might already recognize several common issues that are often present in many of these “canonical” platforms.
Demystifying the promises of conventional platforms
All social trading platforms have their own USP. Determining which one is best for you can be difficult. Listing and enumerating all the (often not-so-public) fees – conversion fees, transfer fees, withdrawal fees, overnight rollover fees, deposit fees, non-trading fees, commission-related charges, and variable spread costs — is often a lengthy, arduous path to tread carefully (and to explore/study well in advance) before engaging in social trading activities when it comes to conventional platforms.
It’s not just hidden costs though. There are other sources of risk that may not be obvious. Traders are not the owners of the stock they trade; instead, they sign contracts for difference (CFDs) – that means they own only one side of an equity swap contract, which is a legal agreement to swap the return on an underlying stock with the provider’s fees.As a result, the trader faces a major risk: should a supplier fail or go bankrupt, the value of their CFDs vanishes, and the trader has no other way to recover their investment.
Many would refer to this aspect as “the price of intermediation”. Here’s where DeFi and FDNZ step in with a paradigm switch – and a potentially revolutionizing way to social trading.
- Here comes the sun: FNDZ’s DeFi Trading
To avoid these issues, FNDZ uses decentralized finance (DeFi) to minimize costs, mitigate risks, automate transactions, and provide a more transparent fee structure. DeFi is a blockchain-based financial system that uses transparent, permissionless, and interoperable protocol stacks and smart contracts to operate automatically.
DeFi social trading involves double disintermediation: the smart contract plays the role of financial intermediary, while the copied traders play the role of the financial advisor. This enables traders to direct capital to more seasoned and professional investors while avoiding the use of unnecessary middlemen.
In practice, this lowers entry barriers, allowing more people to participate in the vast market of cryptocurrencies
- Here comes the sun: FNDZ’s DeFi Trading
FNDZ is designed as an ecosystem of traders interacting via the FNDZ platform and the FNDZ token. Its mission is to create a decentralized and transparent medium for effective traders, as well as their personal networks, supporters, and followers. Let’s dive bit deeper, by looking at FDNZ’s competitive advantages and distinctive features
FNDZ’s Value Proposition – points of differentiation:
- A simple and easy-to-use platform where users can earn money while relaxing on autopilot
- Assets are always safely stored in a user’s wallet and under his/her full control
- Smart contracts (audited by Zokio) significantly reduce exposure to third-party risks
- Fair and simple distribution of order book with decentralized liquidity pools
- Transparent fee structure: thanks to which users have the possibility to know exactly to whom and how much they are charged to copy a trader
And these represent – according to FDNZ vision and according to the foundational tenets of DeFi – the hallmark of truly, decentralized finance. And that’s also where, in accordance with these principles, the FNDZ token gets the stage, with a concrete utility that puts the power in the hands of the users.
- The $FDNZ Token – Tokenomics & Features
Token Metrics
The total supply of FNDZ tokens will be 100,000,000. The circulating supply following the recent public sale event is about 7,800,000 FNDZ tokens, reflecting both the 2,000,000 fully unlocked tokens released for the public sale and 10% of the tokens allocated to the team, advisors, and participants in the seed and private sales, with an actual market cap for the FNDZ token of about $13,500,00, according to CoinMarketCap.
Token Allocation
According to the corresponding whitepaper section, the FNDZ Token allocation follows eight separate categories, which are split between investors, team members and advisors, and functions of the platform. These categories are shown clearly in the infographic below, then followed and referred to by a mini-chapter that goes into further detail – specifically for those readers that love “crunching the numbers”.
Seed Round
The seed investment round saw the allocation of 12,000,000 FNDZ tokens, which represent a 12% share of the total supply. The tokens were sold at $0,08 per token. 10% of the tokens will be unlocked at the token generation event (TGE); the remaining 90% will be distributed through block-by-block vesting over 24 months (which works out to monthly 3,75% allocations).
Private Round
The private investment round received 20,000,000 FNDZ tokens or a 20% share of the total supply. The tokens were sold at $0,12 each. Similar to the seed round, 10% of the tokens will be unlocked at the TGE, and the remaining 90% will be distributed over 24 months in monthly 3,75% allocations through block-by-block vesting.
Launchpad
The IDO event represented the public sale of the FNDZ tokens. 2,000,000 FNDZ tokens, a 2% share of the total supply, have been allocated via the TrustPad LaunchPad event at the price of $0,24. All of these tokens were fully unlocked at TGE.
Advisors
FNDZ advisors allocation is equal 6,000,000 FNDZ tokens, which represents a 6% share of the total supply. These tokens will follow the same scheme as the seed and private round: 10% of the tokens will be unlocked at the TGE, and the remaining 90% will be distributed over 24 months in monthly 3,75% allocations through block-by-block vesting.
Team
The FNDZ team’s allocation is of 20,000,000 FNDZ Tokens, 20% of the total supply. These tokens will follow the same scheme as those allocated to the advisors, 10% of the tokens will be unlocked at the TGE, and the remaining 90% will be distributed over 24 months in monthly 3,75% allocations through block-by-block vesting.
Rewards
10,000,000 FNDZ tokens are allocated as rewards. These are tokens that are reserved for trading challenges and tournaments between professional traders on the FNDZ platform.
Treasury
20,000,000 FNDZ tokens will belong to the FNDZ treasury. These tokens will be reserved as funds for further protocol developments.
Marketing
Finally, 10,000,000 FNDZ tokens are assigned to marketing activities for the platform. These tokens are out of circulation until the team or the community decides to use them for marketing activities.
$FNDZ Features
The FNDZ token also boasts many utility features, aimed at promoting and fulfilling an inclusive ecosystem for all the users involved in the various “spheres” of the protocol:
Governance
The FNDZ token can also be used to vote on governance proposals, providing governance power to its holders. Users can vote on and influence fee models & structure, even the hiring people for protocol creation via treasury funds, as well as many other aspects – all through proposals and community suggestions.
Referral
Each trader will be able to create his/her very own referral link, which will be shareable with new platform joiners on a one-time basis. If the new user’s trading performance is profitable, then the promoter will be entitled to receive 1% of the 20% performance fee, once the performance fee is due.
Advertising
Traders who achieve a minimum of 10% performance over four weeks will have the chance to buy FNDZ tokens to advertise their vault – that is, their services – on the front page — attracting new followers. But that’s not all. There are many ways users will be able to build a profitable following:
I. By Accomplishing Trading challenges — the FNDZ platform features trading challenges in which users can participate and win FNDZ tokens by outperforming other users. Any user can participate by paying a small entry fee in FNDZ tokens.
II. By Going Up the Ranks of the Leaderboards — traders can participate in leaderboard rankings by using FNDZ tokens. Higher scores and scorers will draw more fans, with higher positions on leaderboards leading to higher earnings, favoured by the improved exposure to the community.
III. By Submitting the Trader Profile Onchain via the Verified PNL — this will guarantee users that the trader they are copy-trading is showing the real results.
Transparent Fee Structure
This is all nice and cool. But what about the fee structure we had hinted at earlier in this article? What kind of fees will users incur?
There’s a carefully designed – and yes, I daresay, very transparent – Fee Structure underlying the FDNZ Ecosystem. Once again, another marvelous infographic comes to our aid.
There are four main fees:
Management fee — which is levied for the trader’s performance and goes partially to the trader and to the FNDZ platform.
Performance fee — for which FNDZ token stakers receive two of the 20% performance fee from all successful traders realizing performance.
Creation fee — charged when a trader creates a vault. This fee is automatically swapped in exchange for the FNDZ tokens and then burned.
Redemption fee — which is charged on novice traders when they exit a vault.
- The Team
Just as with the Fee Structure, the FNDZ core team members’ information is public and all of the information regarding the core members is available at the project’s website and via Linkedin. The team features highly-regarded, experienced professionals in the field of entrepreneurship, finance, investment law, marketing, design, and, of course, the blockchain field.
- Roadmap
As outlined in the infographic below, the FNDZ team has been heavily delivering throughout 2021. Q3 culminated with the TrustSwap IDO and the TGE & listing events on PancakeSwap. For the 4th Quarter of 2021, users will finally get their hands-on the MVP app and the platform demo. Vaults and Staking are bound to come as well with a Beta version that will pave the way for the product’s official launch, thus adding many reasons for FNDZ enthusiasts to be excited about the upcoming weeks/months.
- Conclusion
With the crypto space constantly growing and – as we speak – with new blockchain ecosystems, Decentralized Applications, exchanges, and tokens coming to life every day, both crypto traders and investors (either retail or professional) will definitely need a comprehensive, all-in-one solution like FDNZ, in order to maximize their potential. Both private and retail market participants will enjoy the chance and many possibilities provided by FDNZ to learn from experienced professionals, thanks to the ability to follow their strategies through copy trading. At the same time, professional traders will benefit from the many trading tools across multiple exchanges that the platform will bestow upon them – and these are all aspects that we believe will favor the participation in the FDNZ ecosystem, fostering a positive trading experience and performance for new and old trading practitioners.
- Community and Social Channels (as of October 10th, 2021)
FNDZ’s Website
For everything you need to know about FNDZ, visit the official FNDZ Website.
FNDZ’s Telegram
Join the conversation on Telegram to stay in the know about FNDZ.
FNDZ’s Reddit
To keep up with the latest updates from FNDZ, follow them on Medium.
FNDZ’s Twitter
Get in touch and social with other members of FNDZ’s community. Join the community on Twitter.
Legal Disclaimer
Both Satoshi Club and the article’s authors are not providing readers any individually tailored investment advice. The article does not constitute financial advice. The material is for educational purposes only and Satoshi Club nor any of its authors are responsible for any gains or losses that result from your cryptocurrency investments. Investing in cryptocurrency involves a high degree of risk and should be considered only by persons who can afford to sustain a loss of their entire investment. Investors should consult their financial adviser before investing in cryptocurrency.