Zignaly, a social-crypto investment platform, has announced, on February 22, that it has secured $50 million in funding from GEM Global Yield LLC SCS SCS (GGY), a Luxembourg based alternative group investing in emerging markets. Zignaly intends to make use of the capital in order to expand its international reach.
It offers many products and services to help retail investors get into crypto investing. Profit Sharing is its flagship product. It allows users to choose from experienced traders, and then start trading automatically by following their strategies. The concept shares similarities with the copy trading approach popularized by eToro and Robinhood with respect to stock and foreign exchange trading, but it goes one step further by imitating the pro traders’ strategies in real-time on crypto futures exchanges.
The fees are paid exclusively from the profits – a business model that attracts many beginners. Over 400,000 global users have so far entrusted $120,000,000 to more than 300+ crypto traders, vetted and verified by Zignaly. These figures will not be relevant long as Zignaly adds 100,000 new users per month.
Bartolome Bordallo, CEO Zignaly, commented on financing:
“Our goal has been to provide regular investors with new opportunities to profit from crypto economies. This includes enabling managed and high-leverage investment vehicles previously only available to the super wealthy. This financing from GEM will allow the company to propel significant new product development and global adoption of the Zignaly platform, so we can empower the masses with a vastly better way to invest.”
It has everything necessary to grow its global reach. To begin with, it is built upon the Binance broker program, meaning that it relies on Binance’s technology, liquidity, and market depth. Binance has the highest trading volume of any cryptocurrency exchange in both the futures and spot markets. On February 22, Binance’s futures platform saw its trading volume exceeding $55 billion, which equals the volume figures of the next five competitors put together. For Zignaly, this is a ticket to success, considering that it’s the only Profit Sharing platform leveraging the Binance broker program.
Zignaly users have the option to connect to KuCoin (or BitMex), two of the most popular and well-known crypto exchanges, as they operate derivative platforms.
Many traders prefer crypto futures – investment instruments that let users speculate on the price fluctuations without owning the underlying assets – because they can maximize potential gains thanks to a feature called leverage. On top of that, futures trading platforms make it easy to go short, i.e., bet on the price decline, enabling traders to seek profits even during bearish markets like the one we have today – Bitcoin has consistently declined since November’s all-time high at over $68,000.
Zignaly, in addition to its global adoption goals, is working on products to improve the accessibility of crypto investments. It recently introduced ZIGPAD (a launchpad-style incubator) that allows Zigcoin holders with little knowledge to participate in the fundraising efforts of blockchain projects.
Zignaly’s multi-chain, multi-exchange infrastructure supports sales and IDOs for blockchains such as Ethereum, Binance Smart Chains, Polygons, Solanas, Harmony and Avalanche.
Parataxis Capital led the initial $3 million private round that saw GEM Global Yield LLC SCS invest $50 million. This is in addition to an earlier $3 million sale round. Parataxis Capital is an industry leader multi-strategy investor firm. The round, conducted in March of last year, sought financing for Zignaly’s NFT-based insurance protocol powered through its native token Zigcoin.