Vaibhav Kadikar founded, a new blockchain-based derivatives trading platform CloseCross in 2007.

The CEO chats to Real Riviera about his reasons for doing so and how his platform helps investors to trade on a level playing field (peer-to-peer) without the involvement of the major banks who control the issuance of derivatives.

Why did you start up CloseCross?

I traded classical derivatives for almost a decade, when one day in 2007 I thought that there has to be a way that the traders can trade derivatives without the need for centralized derivative issuing parties. I resented the way in which the traditional derivatives market is/was setup and how it put the trader at a distinct disadvantage. Not to mention the vast majority of the population, that while being knowledgeable enough to see where the markets might head would stay out of the derivatives market.

I assumed that if I was thinking of it, it must exist somewhere already. So, I searched for it for a month or two.

On the realisation that nothing like that existed, I started writing my white paper on what it would take to create a complete decentralized derivatives market without any centralized derivatives issuers where traders alone traded between themselves.

That white paper turned into the patent application with the United States Patent Office (USPTO) in June 2008. The patent, for the multiparty settlement mechanism, was granted in April 2011. Within a decentralized, trader-only environment, we also need the mathematical algorithms to mimic/duplicate the Efficient Market Dynamics and balance the risk-reward equation. For this I wrote the “Knowledge value of time” algorithm, which is essentially a build on the Black Scholes formula for Time value of money. With these two pillars, we built CloseCross.

What does CloseCross do?

CloseCross transforms derivatives trading. It’s the world’s first blockchain-based platform offering smart contracts for traders and removing the need to deal with central issuers.  It is fully regulated under MIFID II rules offering increased protection and transparency for customers.

Our platform reduces costs and complexity enabling traders to use multi-party derivatives to forecast movements on forex, crypto, stocks, commodities, and stock market indices worldwide. Investors can try a demo or sign-up at www.closecross.com, and trade by selecting an asset class and making a forecast over a time frame of a few hours or over months. Investors can make money on forecasting price stability as well as volatility.

The platform includes CloseCross Crowd Wisdom which provides real-time data on the views and investments of other traders enabling investors to make a more informed forecast based on increased transparency. People can choose to follow the crowd or go on their own views.

How will CloseCross help investors?

 CloseCross enables investors to trade peer-to-peer on a level playing field without the involvement of the major banks who control the issuance of derivatives. The global market is worth around $1,200 trillion a year but has always been highly concentrated and exclusive with issues around complexity, ease of use, high costs, and unquantified risks.

Our patented multi-party system means investors can enter single smart contracts instead of multiple traditional one-to-one contracts and can also see what other people are doing, therefore increasing transparency as well as offering great potential returns without the need for leverage.

Our patented multi-party system means investors can enter single smart contracts instead of multiple traditional one-to-one contracts and can also see what other people are doing, therefore increasing transparency as well as offering great potential returns without the need for leverage.

Our unique model means leverage is not needed to achieve amazing returns.  You can participate with as little as $0,01 so there is no need for large capital, and fees are up to 90% cheaper than other trading platforms.  Put simply, CloseCross is the most innovative platform for financial market predictions.

Online trading is growing rapidly – we estimate that more than 29 million people currently trade online with numbers expected to continue to grow rapidly as more people turn to trading during the COVID-19 pandemic. Our analysis of industry data* suggests that the number of people trading online could have trebled from around 9.6 million in 2017, and in Europe alone there could be over 6.5 million people trading online.

Our unique model means leverage is not needed to achieve amazing returns.  You can participate with as little as $0,01 so there is no need for large capital, and fees are up to 90% cheaper than other trading platforms.  Put simply, CloseCross is the most innovative platform for financial market predictions.

Online trading is growing rapidly – we estimate that more than 29 million people currently trade online with numbers expected to continue to grow rapidly as more people turn to trading during the COVID-19 pandemic. Our analysis of industry data* suggests that the number of people trading online could have trebled from around 9.6 million in 2017, and in Europe alone there could be over 6.5 million people trading online.

What are CloseCross’ fees?

Unlike other trading platforms, there are no participation fees for using CloseCross. Investors only pay commission if their trades are profitable while those who get it wrong lose their original investment but do not pay anything.

What is better to invest in – crypto or gold?

Without a doubt, it would be crypto, if by crypto you mean the blue-chips in the crypto world i.e., Bitcoin and Ethereum. I am not so sure about substituting Gold with the thousands of altcoins that are yet to make it to the blue-chip status. Altcoins are good for trading and volatility-based gains but not to substitute Gold with. I would wholeheartedly buy Bitcoin over Gold any day. It is the new (long-term) store of value and wealth-preserver.

Do you think crypto is here to stay?

Bitcoin increased in value by 300% last year and has roughly doubled so far this year taking its market value to around $1.1 trillion. Investment banks such as Citigroup are saying it may be “optimally positioned to become the preferred currency for global trade”. That is just Bitcoin. Institutional investors are taking notice while companies such as Tesla are investing in it.

Crypto is too big to ignore and while it will continue to divide opinions and experience volatility, we believe it is here to stay.

What are your plans for the future?

Derivatives are only the first market that we want to disrupt with the multiparty settlements. The next step is to disrupt the tradable notes sector within financial trading. We are also working on a range of other innovations, over the course of the next five years, that will naturally build on the primary innovations that we are bringing to market with CloseCross.

 

 

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