The finance world is buzzing, and right in its epicenter is the intriguing universe of digital assets. As cryptocurrency gains momentum, businesses are striving to bridge the age-old practices of traditional finance with the groundbreaking advancements of the digital world. Enter Darwinbit, a leader in digital asset management that’s crafting a blueprint for success in the crypto landscape.
In our candid chat with the team at Darwinbit, we uncover the vision, challenges, and ambitions driving this remarkable enterprise.
- Can you give us a quick elevator pitch of what Darwinbit is all about?
Darwinbit is a leading-edge digital asset management solutions provider. We offer a range of products and services, from crypto structured products to market-making, OTC option tools, and more. Think of us as the architects who provide the blueprint to success in the crypto landscape — unlocking wealth-generating opportunities for crypto investors and enhancing the liquidity and AUM of CeFi/DeFi platforms.
- What inspired you to jump into the digital asset management space, especially focusing on crypto solutions?
Even though the market capitalisation of cryptocurrencies has grown tremendously over the past decade, it’s nothing compared to the TradFi market. Our crypto solutions combine the best of Web2 and Web3 finance, and we aim to bridge the gap by working with TradFi wealth management platforms that are keen to make their foray into crypto and diversify their portfolio. At the same time, we cater to existing Web3 platforms, which may not have the capabilities to engineer such products from scratch. From a macro perspective, these efforts bolster the DeFi ecosystem and contribute to the mass adoption of cryptocurrencies.
- How do you differentiate Darwinbit from other digital asset management firms out there?
At Darwinbit, we offer a full-spectrum product portfolio with customised solutions based on our partners’ user base (from high reward-high risk products like Twin Win to principal-protected products like Shark Fin). Additionally, we offer fund safety for our exchange partners, alongside a strong balance sheet for deployment with other strategic partners.
- You offer a range of services like market-making, OTC options, and staking. How do you manage to excel in such diverse offerings?
It all boils down to our talented team. At Darwinbit, we emphasise a culture of diversity and excellence. We’ve managed to gather a team of experts who hail from prestigious fintech institutions around the world. Leveraging our human capital has enabled us to design state-of-the-art product solutions and services.
- Let’s talk about your fixed income products. What makes them “guaranteed” and ideal for enhancing a platform’s AUM?
Fixed-income products originated from bonds, but with the evolution of blockchain technology, it now deposits cryptocurrencies into smart contracts. Essentially, it generates a higher interest rate on digital assets, enabling investors to earn a passive income. The key benefit of fixed-income products is that it enhances the platform’s liquidity. Not only does it serve as collateral for loans to fund operations, but also be used as a liquidity reserve strategy, or risk management tool which is essential for navigating volatile crypto markets.
- What are structured products in the Darwinbit context, and how do they cater to diverse risk appetites?
Our structured products are designed by our team of expert analysts with robust risk management and optimised earning potential in varying market conditions. To put it simply, they’re packaged investment strategies based on derivatives linked to an underlying asset. More importantly, their advantage lies in their ability to offer a tailored risk-return profile, which can be customised to suit individual investor needs.
- You offer 8 structured products, can you give us a high-level overview of, let’s say, Twin Win and Dual Investment-Booster?
Twin Win is ideal for events-driven trading as it capitalises on market volatility (both upward and downward price fluctuations) to generate leveraged returns. On the flip side, its risk lies in a lack of volatility.
As for Dual Investment Booster, it shares the same underlying principle as Dual Investment Classic with a diversification strategy as investors can receive returns in either asset. However, it offers a significantly higher APY for greater earning potential, but with higher risk.
- Your products claim to offer “enhanced yield” that surpasses prevailing market rates. How do you manage to offer such high yields?
Structured products entail the purchase or sale of options as part of a package. The increased yield results from the options’ premium or payout. However, this higher yield also brings certain risks, such as the possibility of the principal being converted into other assets
- You seem to have a strong focus on adaptive target pricing in your Dual Investment products. How does that work, and why is it advantageous?
The dual investment approach allows clients to take advantage of buying low or selling high while simultaneously earning a substantial coupon. This structure offers flexibility, allowing us to tailor custom structures to meet specific demands or adapt to prevailing market conditions. Clients can request a specific target pricing, and we can design a structure accordingly. If they decide to change their target pricing, we can swiftly adjust the structure to enable clients to respond promptly to market fluctuations.
Our very first partner is KuCoin, and we’ve been working together since April 2023 to develop KuCoin Wealth. This has enabled KuCoin to gain a competitive advantage as its users can select from five different structured products depending on their investment strategy or risk tolerance.
- Your blog covers a broad spectrum of topics, from market strategies to comparative analyses. How important is content in educating your user base?
It doesn’t matter whether you’re a beginner or an experienced investor. The crypto market is constantly evolving, with new technological trends and macroeconomic factors that shape the ecosystem. Since it’s highly volatile, it’s paramount for users to have a firm understanding of this intricate ecosystem and the mechanics behind each investment product/strategy. That, of course, starts with educational content.
- Speaking of education, what’s the one piece of advice you’d offer to someone new to crypto asset management?
That’s simple — always DYOR (do your own research). It’s a dogma held by seasoned investors where no stone is left unturned — checking a platform’s vitals via proof of reserves or reports, information about their team, whitepapers, social reviews, and so much more. This equips you with comprehensive knowledge to make informed decisions.
- Finally, what’s next for Darwinbit? Any exciting projects or expansions on the horizon?
As mentioned earlier, the cryptocurrency market is highly dynamic and constantly evolving. It’s crucial that we adapt to new trends while catering to user needs. On this note, our next step is to expand our product offerings beyond USDT, to include BTC, ETH and more tokens. Ultimately, this will enable users to further diversify their portfolio and unlock greater earning potential.
As the curtain falls on our enlightening discussion with Darwinbit, we’re left with a profound understanding of their ethos. They’re not just a company; they’re visionaries dedicated to reshaping how we perceive and interact with digital assets. Their commitment to education, client-centric solutions, and the relentless pursuit of innovation sets them apart in this ever-evolving domain.
As Darwinbit charts its future course, expanding horizons and introducing new offerings, one message rings clear: they’re here to guide, empower, and revolutionize the digital asset experience for all.