CXOToday has engaged in an exclusive interview with Edul Patel, CEO and Co-founder of Mudrex, a global crypto investing platform.
1. Can you elaborate on the concept of crypto index investing and how it provides a diversified approach to cryptocurrency investments?
Index investing is a well-established strategy in traditional finance. It is now making its way into the crypto world. This approach provides a diversified investment method to navigate the volatility of the crypto space. By investing in a crypto index, investors can reduce the risk associated with individual coin investments while gaining exposure to a diversified basket of cryptocurrencies that represents the overall market performance. This strategy aims for better risk-adjusted returns, mitigates volatility, and offers a convenient and efficient way to participate in the crypto market. With its potential for long-term growth, crypto index investing provides a valuable opportunity for investors in the ever-evolving crypto landscape.
- Could you share the story behind Mudrex, including its inception, key products, and notable milestones achieved so far ?
Our journey began in 2018 when the four of us Alankar Saxena, Prince Arora, Rohit Goyal and myself began to explore our fascination for blockchain technology and Bitcoin, along with the massive potential to revolutionize finance. We researched extensively, and conceived the idea of Mudrex, a combination of the words Mudra (the coin) and Exchange.
We are on a mission to simplify crypto investing for retail and everyday investors on a global scale. We recognized the need to provide an accessible platform that allows investors to start their crypto journey with as little as $5. That’s why we developed our flagship product, ‘Coin Sets,’ which enables investors to invest in baskets of tokens based on specific themes and sectors within the crypto ecosystem.
Our in-house Mudrex team, with their extensive experience in fund management, curates and designs these Coin Sets. To ensure better risk-adjusted returns, the tokens within the Coin Sets are regularly rebalanced every month. This approach not only diversifies the investment but also maximizes the potential for growth in the ever-evolving crypto market.
Furthermore, we have introduced a Systematic Investment Plan (SIP) feature, allowing investors to set up regular investments in Coin Sets. This feature enables users to automate their investments and benefit from the long-term potential of the crypto market.
Overall, our goal is to empower investors with the tools and expertise needed to navigate the crypto space effectively and achieve their investment goals. With Mudrex, anyone can participate in crypto investing, regardless of their level of expertise or the amount they can invest.
At Mudrex, we aim to provide individuals access to low-risk and high-yield investment funds reflected through our global users. Of these users, most of them are from India, whereas the rest are spread across the US, Europe and Southeast Asian markets. We truly believe investing is for everyone.
- What are the expansion plans for Mudrex?
We recently announced our expansion into Europe. Mudrex is registered as a ‘Virtual Asset Provider’ in the European Union allowing us to operate as a registered broker dealer and crypto custodian within the E.U. We launched our flagship product called Coin Sets in Italy this April. To ensure compliance, we have also established an OAM and branch office in Milan, Italy. Our mission is to democratize crypto investing and to make it accessible to everyone. After Italy, we are likely to launch the platform in Spain, Netherlands, and Germany.
4. How does Mudrex ensure the safety and security of user’s funds, and what measures are in place to protect against potential hacks or breaches ?
At Mudrex, safety and security of our users’ funds are of utmost importance to us. To ensure this, we have insured all funds by Lloyds of London, providing an additional layer of protection. Additionally, we employ encrypted secure storage to further enhance security. These measures safeguard funds against potential hacks or breaches, reassuring users on the safety of their funds.
- In what ways is Mudrex actively promoting and creating financial literacy around crypto investing among its user base and the wider community ?
At Mudrex, we are committed to educate and empower users to learn about the crypto ecosystem. One of our flagship initiatives is Satoshi School, a free platform designed to educate individuals about the world of cryptocurrencies. Through Satoshi School, users can access a wealth of knowledge, from basic concepts to advanced topics related to Web 3.0. The platform’s interactive and intuitive interface offers a seamless learning experience, as it incorporates real-world examples, analogies, summaries, and interactive quizzes. Whether you’re a novice or an experienced learner, Satoshi School seeks to ensure that everyone expands their knowledge and skills in the crypto space. Additionally, we offer a certification program for individuals who successfully complete specific coursework, enabling them to showcase their expertise to the world.
Additionally, we have a daily and weekly newsletter called “The Flippening” which delivers essential updates and insights about the crypto ecosystem, to ensure that our users stay well-informed and up-to-date with the latest developments.
Furthermore, Mudrex has launched WAGMI, a student-led Web 3.0 community aimed at bridging the technological gap among students. Through strategic partnerships with over 20 clubs across top institutions in India, including prestigious institutions such as IITs, NITs, ISB, FMS, and MDI, WAGMI facilitates innovation in the Web 3.0 space. The community organizes various events, including live projects, trivia competitions, case competitions, AMA sessions, and panel discussions with industry experts. These events offer students the opportunity to learn from experienced professionals and network with like-minded peers. Currently, WAGMI is an invite-only club with a vibrant community of over 1500 Web 3.0 enthusiasts.
Recently, we also launched SatoshiGPT, a crpypto-specific AI bot which aims to empower individuals with comprehensive knowledge about the cryptoverse and enable them to make informed decisions. With SatoshiGPT, we strive to empower individuals by equipping them with the knowledge and understanding necessary to navigate the dynamic world of cryptocurrencies confidently.
6.With the increasing adoption of cryptocurrencies, how do you view crypto as an emerging alternative asset class for investors ?
At Mudrex, we believe that the increasing adoption of cryptocurrencies is a testament to their growing acceptance and potential as an investment class.
We think that crypto offers unique advantages that make it an attractive alternative asset class. First, cryptocurrencies provide diversification opportunities beyond traditional assets\ helping investors manage risk and enhance their overall portfolio performance.
Second, cryptocurrencies have the potential for substantial returns as witnessed by the market’s significant growth over the years, with cryptocurrencies like Bitcoin and Ethereum delivering impressive returns to early adopters. This potential for high returns has attracted the attention of investors seeking opportunities for capital appreciation.
With the maturing of the cryptocurrency market and the evolution of regulatory frameworks, we are currently witnessing the entry of major financial institutions into the crypto space, to offer a range of services. Notably, industry giants like BlackRock, Wisdom Tree, and Deutsche Bank have recently applied to provide crypto-related services. This development not only adds credibility and legitimacy to the crypto ecosystem but also opens up new avenues for investors to participate in this alternative asset class. As more financial institutions enter the crypto space and innovative financial products are introduced, the perception of cryptocurrencies as an alternative asset class will be cemented.
With E.U and U.K. passing progressive regulations around crypto,this will signify a growing confidence and acceptance of crypto as an asset class. Such positive regulations not only provide a secure framework for investors but also encourage broader adoption of cryptocurrencies.
- Can you discuss the transition of traders towards crypto investing and the factors driving this shift in behavior ?
The traders of 2016 and earlier only targeted the crypto market for earning profits. However this started to change from 2017 when many retail investors entered the market and drove that year’s bull run. This market change launched Bitcoin into the mainstream markets, which resulted in price volatility. Retailers similarly played a crucial role in 2021’s bull run taking over a space earlier dominated mainly by a few large private institutions and high net-worth individuals or HNIs.
The paradigm shift from traders to investors was aided by two significant factors. One was the unfortunate COVID-19 pandemic that caused massive trouble to the traditional asset classes and drew people towards exploring the possibility of crypto as an asset class. The second factor was the $2 trillion aid, also known as quantitative easing, offered by the U.S Federal Reserve to the U.S ecosystem. This caused a tremendous rise in the awareness of the popularity of crypto and web 3 among retail investors. Today’ retailers believe in the potential of cryptocurrencies in this digital era to achieve financial freedom.
8.What are the current regulations surrounding cryptocurrencies in India and at a global level, and how do these regulations impact Mudrex’s operations ?
The legal and regulatory landscape surrounding cryptocurrencies vary across different countries. While some developed nations have embraced cryptocurrencies and established regulations, others have adopted a more cautious approach or even prohibited their use. In the case of India, the government has taken steps towards regulating cryptocurrencies, starting with the inclusion of crypto taxation in the 2022 budget and incorporating crypto into the anti-money laundering act. Similarly, countries belonging to the European Union (EU) and the United Kingdom (UK) have passed progressive crypto laws to provide clarity and oversight in the crypto space.
At Mudrex, we prioritize compliance with the rules and regulations set by the governments of the countries we operate in. By adhering to these regulations, we ensure that our operations align with legal requirements and provide a secure and transparent platform for our users. As the regulatory landscape continues to evolve globally, it is crucial for crypto companies like ours to stay updated and compliant with the rules of the jurisdictions they operate in.
- Can you provide insights into the performance of Bitcoin in 2023 and its impact on the overall cryptocurrency market ?
Bitcoin started trading this year at the US$16,000 level, following a challenging year in 2022. However, there have been positive developments in the crypto space that have generated hope among investors. With the European Union introducing the MiCA Act and the phased regulation of crypto in the UK, have played a significant role in shaping this optimism. These regulatory initiatives signal a growing recognition and acceptance of cryptocurrencies in mainstream financial systems.
Moreover, the involvement of prominent financial institutions like BlackRock, Wisdom Tree, and Invesco, who have recently applied for licenses to provide Bitcoin spot ETFs, has further boosted investor confidence. The involvement of prominent financial institutions has not only propelled Bitcoin’s price above the US$31,000 level for the first time this year but has also added a sense of legitimacy to the broader acceptance of digital assets. It signifies a significant step toward cryptocurrencies becoming an integral part of the global financial landscape.
These developments highlight the increasing importance of cryptocurrencies and their potential to reshape traditional financial systems. As regulatory frameworks continue to evolve and major financial players enter the crypto space, it becomes evident that cryptocurrencies are here to stay and have the potential to play a substantial role in the future of global finance.
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