TakeProfit wants to tap into cryptocurrency market advice
New Ethereum-based service will offer coin recommendations based on trader history.
With cryptocurrency markets still in their infancy and market analysts unable to agree on what will be happening in the longer term, traders are looking for tools to help them make better decisions when it comes to trading or cashing out their coins.
A new Ethereum-based platform called TakeProfit wants to use signals for traders that they deem reliable and use those as a tool for providing guidance to other traders. The subscription service uses "investment advice" from established traders, with all the signals that are published verifiable on the blockchain. The company says: "TakeProfit provides professional traders with an opportunity to monetize their skills by directly selling them to their subscribers. Subscribers can earn income using the skills and recommendations of traders."
In theory, this means that traders can verify for themselves whether a trading signal came from a legitimate or a less reliable source. They'll also be able to view a signal's origin and look back to compare what was predicted with what actually happened on the markets.
TakeProfit will make money by taking a cut from the XTP Ethereum-based (ERC20) token, which will be used to pay traders for signals and which is paid by subscribers when they sign up. Initial funding for the platform was provided by the collection of 2,000 Ethereum (ETH) (US$2.206 million) in a presale of XTP, which will be used to create a "minimum viable product" to test TakeProfit's technology, according to the company's white paper.
There will be a free subscription option that lets users see the historical performance of the traders who choose to share their advice over TakeProfit. The target audience is established as novice traders, the company says. TakeProfit says established traders will benefit by learning about new strategies and getting fresh ideas for their own trading strategies.
With traders clamouring for advice on how to create a profitable cryptocurrency trading strategy, TakeProfit might be able to tap into a need. Traditional finance market analysis is struggling with the nascent cryptocurrency markets, particularly as they are still very volatile. However, as Goldman Sachs has pointed out, there is a strong correlation between cryptocurrency price movements across different currencies, which makes picking individual coins more challenging.