What does Tagomi offer that other exchanges or individual trading doesn’t?
Cryptocurrency is a notoriously fragmented market structure, with users holding accounts in multiple exchanges and platforms to manage different assets and currencies. This creates a huge management headache for the user, and also incurs costs from improper asset management and exchange fees. Tagomi automates trading across multiple liquidity platforms. In doing so, Tagomi sets up settlement solutions at major cryptocurrency exchanges like Coinbase, Gemini, Bittrex, and Bitstamp. Users can use one platform to trade their own funds across multiple accounts, to maximize returns.
Tagomi also enables much larger trades. The daily trading volume of cryptocurrency approximates to less than 19 billion USD without accounting for inflation (for reference, the NASDAQ trades daily 100 billion USD). Already a smaller market with a higher amount of fragmentation, Tagomi enables larger trades by aggregating liquidity and given the client full market access by linking all of a user’s funds to their Tagomi account, which allows them to use their funds in aggregate to make trades.
Tagomi also offers algorithmic trading strategies to maximize returns and minimize losses incurred from inefficiencies. OTC trading and traditional crypto exchanges charge a high markup on placing trades, whereas Tagomi prioritizes best execution via smart routing and the use of algos. Tagomi’s premium models have been trained on huge amounts of past market data by some of the best quantitative trading algorithm designers in the world.
Why does Tagomi matter now, more than ever?
Compared to securities and other traditional financial assets, cryptocurrency is an insanely premature market. Over the past few years, investors in the space have accumulated incredible funds from small ICOs and a massive bull market that came with great returns. But if the past few months have taught us anything about cryptocurrency, it’s that it’s incredibly volatile––we’re now in the biggest bear market ever with Bitcoin, which makes stomaching additional markups and hidden fees even more difficult for both the average and big-scale institutional investors.
At the same time, institutional investors are picking up on the potential of Bitcoin and becoming increasingly interested in the space––by October 2018, they were the largest buyers of cryptocurrency transactions worth over 100,000 USD. This momentum could be curbed by lost confidence in Bitcoin from its prematurity and price drops.
Tagomi brings the infrastructure of quantitative, large-scale trading to the cryptocurrency market. There’s been few other developments in this space (namely, Omniex and Sfox), but none of them offer such an easy, end-to-end platform that handles both cash and coin movement, as well is committed to trading only on a best execution basis. Tagomi’s offerings help restore investor confidence in the cryptocurrency trading market, by helping centralize asset management, providing an algorithmic basis for best priced execution, and bringing some institutional ethos and trust to the market.
With the new funds, Tagomi plans to expand its sales efforts, while also developing the infrastructure to support other financial actions like lending and shorting.
Who’s running Tagomi?
Frankly, the best of the best. Tagomi was co-founded by Jennifer Campbell, Greg Tusar, and Marc Bhargava, all of whom have incredible experience in the cryptocurrency, asset management, and electronic trading space. Previously, Campbell worked on the investment team at Union Square Ventures. Tusar previously was the Global Head of Electronic Trading at Goldman Sachs, which he found his way to through an acquisition. Bhargava previously worked investing in the blockchain space while at Brainchild and at roles in private equity and consulting. Even beyond the founders, the team is pretty incredible with folks from Two Sigma, Citadel, KCG, Virtu, Google, etc.
Now more than ever, a solution like Tagomi is needed to restore investor confidence in the cryptocurrency market. Despite the long-term drop in prices, cryptocurrency offers a very promising space for investors––but it needs more maturity. Tagomi brings the market structure we’ve seen evolve in other asset classes by creating a one-stop, end-to-end platform for investors to manage their cryptoassets, make large-scale trades, and make smart, algorithmically-verified trading decisions. With tools like Tagomi deploying on the market, we can hopefully expect a lot more confidence and investment––and more returns––than ever before.