How CoinMint makes crypto investing easier with expert-built strategies
A singular tweet—”doge”—from Elon Musk in 2021, which he then followed up with “dogecoin is the people’s crypto, sent the cryptocurrency soaring as much as 50% in a matter of minutes, with everyone, from celebrities, bodybuilders and YouTube stars, to retail investors flocking to buy the coin.
And this wasn’t a one-off event.
Time and again in the world of cryptocurrency, influencer posts about the hottest coin have swayed markets and impelled investors—especially retail—to put in their bids. Because the market is so new, incalculable and hard to understand, new-to-market investors have found themselves largely left to their own devices when it comes to investing in cryptocurrency.
“People have realised that cryptocurrency is obviously a great investment opportunity for the long term. The problem is that, except for the top 5% of the folks who may be technically informed enough to take sound investment decisions, 95% people in the market are playing a guessing game at some level or another,” says Archit Nanda, a crypto enthusiast and founder of CoinMint.
“In my own trading journey, I realised that unless you weren't monitoring a space, like Twitter, every 30 minutes for updates to understand what was happening, crypto investing wasn’t feasible," he adds.
Archit and Rachit Bansal’s startuphelps solve these issues.
Founded in 2022, CoinMint offers investors—amateur and seasoned alike—the option to let experts handle cryptocurrency investments on their behalf via curated portfolios.
Investors can review these expert-curated portfolios and pick strategies that fit their risk profiles best.
"With CoinMint, our aim is to democratise investing strategies that are normally available to only accredited investors, and make them accessible to retail investors,” Archit tells YourStory.
Accessible via a mobile app, CoinMint has a user-facing platform, as well as an expert-facing platform. Cryptocurrency experts and influencers use the strategy-builder platform to publish strategies, as well as rebalance their strategies from time to time, while the user-facing app helps people invest.
The platform will launch as early as next month.
CoinMint has raised $500,000 in angel funding, so far, from prominent investors such as Unacademy’s Gaurav Munjal; CRED’s Kunal Shah; and Udaan’s Sujeet Kumar, as well as funds such as Blume Ventures and Titan Capital.
The low down
To get started on the platform, users can either log in with theiror accounts or create a new account on CoinMint and directly buy and sell cryptocurrencies.
The app then displays top strategies and experts on the platform.
Every strategy comes with a ‘risk’ tag (such as high/medium/low risk), displays all the coins in the basket and their performance over different time periods, and explains the expert’s rationale behind the curation.
Experts on the platform are vetted by CoinMint.
“We take a number of things into consideration before we sign on a cryptocurrency investing experts, such as the number of years they’ve been investing, the sort of returns they’ve made in their own portfolios, their presence on social media platforms, and the content they’ve put out. We have processes in place to ensure quality control,” says Archit.
Unlike the capital markets where experts need to be SEBI-certified to professionally dispense investing advice to users and manage their portfolios, cryptocurrency experts don’t need any authorisation.
CoinMint derisks itself by letting users know that cryptocurrencies are a risky investment via prompts and alerts before they approve any transactions.
The platform offers theme-based investing ideas that have long investment horizons. Users don’t have to intervene at any point if they so wish—all rebalances (buy/sell orders) automatically get executed in the background, at the moment. But CoinMint says it will soon give users the option to approve or reject rebalances.
While the app is free for users to download and sign up on, they have to pay a 1% management fee. Then, based on their total profit on exits, a 10% performance fee is deducted by the platform.
CoinMint retains 30% of the fee and passes on 70% to the experts and influencers on the platform.
The app is currently in late beta testing; 15 independent experts and strategies are set to go live once it’s launched.
, , and are the other players who offer similar solutions in the crypto wealth management space.
According to reports by Markets and Markets, the global crypto asset management market size is projected to grow from $0.4 billion in 2021 to $1.2 billion by 2026, at a CAGR of 21.5%. During this period, players in the Asia Pacific region are expected to witness "considerable" growth in the crypto asset market.
The way ahead
Archit envisions CoinMint essentially serving the purpose thatdoes, but for cryptocurrencies. Smallcase offers expert-curated ‘cases’ of stocks for retail investors.
Like smallcase, which has its own markets research unit, CoinMint too hopes to set up something similar in the long term.
In the coming months, the platform hopes to launch a subscription model wherein experts can charge fees for their strategies. CoinMint is also building a cryptocurrency trading platform, in conjunction with its investment platform to enable day traders to partake in the markets.
Despite being among a handful of startups looking to make investing in cryptocurrency easy for novice traders, Archit says he believes there's ample room for more players to exist, given the large market size and a growing interest in cryptocurrency investing. For CoinMint, this is just the beginning.
Edited by Swetha Kannan