The financial world is changing at a much faster pace these days. With the induction of Blockchain and other technologies entering the financial market and trading industry, each with a common goal to change the trading market once and forever while at the same time improving many services that we currently have in use.
Crypto trading is one of the most discussed topics in finance due to the fact that the cryptocurrency market has been on a downward trend for almost 7 months. Many have lost money and even filed for bankruptcy because they were affected by market manipulations and didn’t have professional trading software that they could rely on.
Currently, modern cryptocurrency traders are investing without professional trading software to assist them in trading effectively. It’s vital to keep track of trades, follow the current news and constantly analyze the market with surgical precision. Enter FinSafe, a platform planning to adapt and implement advanced trading instruments which have been recommended by classic stock markets and combine them into one platform to help traditional and crypto-traders start their activities within the cryptomarket. The executives behind the idea are Victor Murga and Dan Dzhulai, with a goal to reveal the truth about the future of crypto-trading, the cryptomarket and the stock market as a whole.
Here’s an interview with both Victor and Dan from FinSafe:
Media: What’s your prediction for the next 5 years of crypto trading?
VM: We’re convinced that within the next 5 years two totally different markets will slowly merge into one common trading platform. There’s a big chance that stocks traded on the classic market will eventually be transformed into the form of Security Tokens currently in use within the cryptocurrency market. It’s a tricky proposition which may take some time, but we’re confident it will take place.
DD: Transforming the current stock exchange to Security Tokens allows people to send and receive stocks instantaneously without having to wait for hours or even days. Each of the stocks can easily become paired with various cryptocurrencies thus dramatically increasing the money flow. If you didn’t know, the current capitalization of the stock market fluctuates around $30 trillion. That’s a lot of money compared to the cryptocurrency market which has only $208 billion in capitalization at the moment of recording this interview.
Media: So why would Wall Street be interested in such an idea? Isn’t there too much risk involved?
VM: Compare for just a moment the huge $30 trillion stock market and the smaller crypto market. Converting even a small fraction of this amount from the first one into the second may provoke a tremendous cryptocurrency price rise. The volatility of this market will attract even more traders from the stock market because it could start to promise vast financial opportunities.
DD: We’re elated to play a role in this complex process while at the same time provide an all-inclusive professional software for traders that will eventually work in two different financial worlds.
Media: Is this likely to attract institutional investors? And if so, what timeframe do you give it?
DD: We must not confuse two types of institutions, those that invest and those that trade. We believe that there’s a very small chance that an institutional investor will start investing in cryptocurrencies as the market is way too young and too few people want to attach themselves to such high-risk funds.
VM: I think rather than those institutional investors it will be more of the professional trading companies will most likely flock to the cryptocurrency market and start trading even more aggressively with new tools available compared to what we’re seeing today.
Media: We were comparing stock and crypto markets, but what about Forex? Do you think traders from this market would be interested in next-gen crypto trading software?
VM: The Forex market is vastly reaching an estimated $5 trillion in daily trading volumes. It definitely has financial potential to enter the crypto market. Moreover, from the trader’s perspective, a highly volatile environment grants more space for getting good returns.
DD: Even the Forex market needs a complex solution to ease its way into crypto. With such volumes, traders are eager to find new ways to increase their revenues. But to that end, they lack a good trading platform adopted specifically for the cryptocurrency market. I’m convinced that the traditional traders are going to find interesting opportunities to trade new types of digital assets.
Media: It seems like it’s going to be a long game. Another topic that we hear about so often in the IT industry is AI. What do you think about those platforms that are currently developing AI Trading Platforms, will they negatively affect Wall Street and your product in particular?
VM: To my knowledge, there’s currently no AI that’s capable of doing a fundamental analysis of the market as it involves synthesizing dozens of different trading factors.
DD: I would also add that currently about 84% of the trades performed within the stock market are actually placed by Algorithmic Bots. Programmed to do the technical analysis of the market but regardless of this fact they are not perfect trading algorithms. They still require some assistance and fine-tuning from professional traders. Unfortunately, AI can’t do all the fundamental analysis and basically, play a supporting role in traders’ activities most of which is routine work.
Looking to the future, I do not see that AI will be able to analyze the same way as human beings for at least the next 10 years. AI’s current ceiling is working as the trader’s assistant and not replacing the trader altogether. Therefore, it won’t affect FinSafe or Wall Street in the near future.
Media: Will you implement some of the AI solutions into your product? If no, why don’t you think that this implementation will be helpful for you?
DD: AI solutions will be implemented in the near future. Currently, we’re concentrated on FinSafe product development for traditional and crypto-traders. The experience that we acquired while working on the algorithmic trading project has helped us to develop our complex product.
VM: Our specialists are eager to research the machine learning field as we have a very strong interest in this area. Once we’re finished with the trading platform release and the infrastructure for deployment within artificial intelligence, only then we’ll start implementing AI into our product line. Currently, we’re trying to build a complex infrastructure which will have the capability to work flawlessly with external systems through our API, including machine learning high-frequency trading, real-time analytics, post-trading systems, price forecasting and more.
Moreover, we’re actively collaborating with different cryptocurrency exchanges to implement ECNs, while they’re still not ready for it because of the transaction speeds which are slow compared to classic stock exchanges. We’ll be putting our efforts here to implement new protocol standards that offer faster data transfers.
We’re definitely entering a new age of discoveries. Our idea is to help traditional traders enter the crypto market, which will help stabilize it and improve the whole Financial Sector.
The last time we saw such changes in the technology sector was Elon Musk’s drive to attract more businesses to the internet when he was working in Zip2 during the dot-com era. Now things have changed but we see the same parallel when a team and company want to bring something new to the world. FinSafe will lay a new foundation for the whole financial sector as a catalyst for further important technological developments. Eventually, Finsafe will play the key role in one of the most important financial events in history.