Using Codeless Technology, This Startup Created By IIT Graduates Enables Crypto Investors To Build Their Own Trading Robots

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Serial entrepreneurs Edul Patel and Prince Arora along with friends of Eduls Rohit Goyal and Alankar Saxena set to work on their belief that crypto will remain one of the largest asset classes in the world.

They are trying to democratize cryptocurrency investment opportunities through their startup Mudrex, which was launched in 2018. Simply put, it functions as a layer of investment in crypto mutual funds, providing simple and transparent investment products.

Globally, the focus is on trading cryptocurrencies, and although we have been introduced to crypto trading, there is little explanation on how to invest and how to grow it. and that’s what Mudrex aims to solve, Edul says.

While Edul, Rohit and Alankar are alumni of IIT Bombay, Prince is an alumnus of IIT Kanpur.

Edul Patel

The exchange that didn’t work

Originally, the four friends also started building a cryptocurrency exchange in 2018. They built the infrastructure, including the order matching engine and custodial wallets.

We had onboarded our first 100 clients and were ready to launch, but just a week before that the RBI banned crypto trading in India, Edul says.

This move prompted the team to rethink everything and decided to focus on building a global product, rather than just focusing on India, as crypto is a global asset.

They also realized that trade would become a commodity and then businesses would need to have massive scale. Finally, automation was the only way to trade and scale crypto investing. But at the time, no company was building the infrastructure or the tools to enable this.

Edul explains that with a market capitalization of $ 2,000 billion, crypto is one of the fastest growing asset classes today. However, there are some obstacles to manual trading.

Ask someone who has done it manually and they’ll tell you about the long nights spent staring at the screen for entry / exit. We saw an opportunity to build everything above the stock market, from asset management to blue chip brokerage and we steered towards it, ”says Edul. Building the new platform

The four started by creating a no-code editing tool, which allows anyone to create a trading algorithm. The beta was launched in October 2018. In December, the startup got its first 100 users and was also selected for the 2019 Y Combinators winter cohort.

At YC, Mudrex has grown to 500 users. The founders say they learned two key things during this time, good and bad traders need help investing, and starting a business by selling a SaaS tool wouldn’t be the best use of the product. When the tool came out, the algorithms were more valuable. Edul adds that Mudrex was in the best position to obtain distribution and monetize it.

This led the team to create a monetization layer and a marketplace. The first version of the marketplace launched in August 2019 and by December it had 2,000 registrations and lots of returns.

We went back to the drawing board to reiterate our strategy and launched version 2.0 to the market in April 2020 and renamed it Mudrex Invest. Since then, there has been no turning back, says Edul.

On Mudrex, traders create their own trading bot without any coding. The platform uses analytics and historical data to help them assess their bot strategy. Right now, it hosts a 95-97% investor base with a 3-5% creator base that has grown organically.

The moats that distinguish them

Cryptocurrency is clearly a hot topic in the startup ecosystem with players like WazirX, Giotuss, Unocoin, Coinbase, and CoinSwitch in the space. But while most of them focus on trading and act like exchanges, Mudrex wants to create a global base for investors.

Currently, the metrics are increasing for Mudrex. According to Edul, the startup is generating volume, and there are traders who rely on the platform to grow their business, investors who use the product to profit from it, and trading communities who earn from referrals.

These partnerships follow the Metcalfs law and provide benefits to the network. The more nodes in the network, the more valuable the network. That said, partnerships can be bought, he explains.

The startup claims to have registered more than 25,000 registrations, more than 2,000 investors and more than $ 15 million in assets under management, and more than 270 different products in which to invest. Edul says the algorithms collectively generate more than $ 200 million in transactions each month.

Almost 80% of income comes from the market.

We crossed $ 1 billion in trading volume in April 2021. We are growing 40% month over month over the past 10 months. Our growth over the past six months has increased tenfold and we have achieved this without any marketing expense, he adds. Next steps and future

So far, Mudrex has raised $ 750,000 in pre-seed from Y Combinator, Better Capital, Woodstock Fund and several crypto-angels. At the moment, the startup is working on four major points

Mudrex Exchange An end-to-end crypto trading and investment platform. Users will be able to buy, store, trade, and invest cryptos on it. The team has already formed an integration with Binance. Crypto indexes and thematic baskets Mudrex adds crypto indexes and token baskets to allow the user to quickly invest in crypto themes. Most of the users who want to invest in crypto want to take directional bets in some specific thematic areas such as DeFi, Smartcontract, Web 3.0.Mudrex Capital This would be dedicated to institutional investors, focused on asset management, providing products on measure to HNIs, funds and institutions. The minimum check size for this is $ 250,000. Investment as a Service Mudrex wishes to provide investment options directly to exchanges, portfolios and sources of liquidity as a service to enable their users to invest. Currently, the pilot is underway, integrating with the European crypto exchange GokuMarket, with 100,000 users. There are five more confirmed integrations and 13 more in the works.

Our current assets under management are approximately $ 10 million and we aim to grow 20 times over the next 12 months. Now we want to build strong distribution pipelines and complementary products to create sustainable moats. There is a demand, which we have not been able to meet due to resource constraints. This is why most of our capital is going to be used to build a bigger team, explains Edul.

Edited by Saheli Sen Gupta

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