⚡ Crypto trading, the best growth marketing strategy to bootstrap / grow an audience in B2C Fintech⚡
Paxful Interview, Digital Remittances, Binance, BitGo, B2C2, SFOX, Bitbond, Elliptic raised $5m and Wintermute seed round!
|Etienne Brunet||Feb 16|| 1|
Hi Everyone, Thank you for supporting the European crypto ecosystem 🇪🇺.
Thank you for all of those who came to the first Coinscrum Pro last week. We were overwhelmed by the interest from the institutional investor ecosystem. We had over 120 attendees of which 60% from the buy-side. We will share a report laster next week.
We already are planning the next two events in London and one in Switzetland. If you are interested in sponsorship or to give a keynote, Don’t hesitate to reach out!
Etienne ( Twitter, email@example.com)
ps: don’t hesitate to send me an email if you enjoy this newsletter, Always great to have feedback :) and Subscribe to
💡Thank you NovitasFTCL for supporting the 🇪🇺 Ecosystem
We want to thank our partner NovitasFTCL, a leading boutique firm of corporate finance advisors to the European Financial Technology sector.
Based in London, NovitasFTCL has 45+ years of combined experience in the FinTech sector and executed over 120 transactions across Europe including M&As and Fundraisings.
Do not hesitate to contact me if you want an introduction.
🕵️♂️Crypto trading is the best growth marketing strategy to bootstrap / grow an audience in the B2C Fintech investing ecosystem
If you want to build a successful Fintech company you basically have two choices. The first is to build a back-end solution that is a must-have for all front-end Fintech solutions like Plaid or ComplyAdvantage. Here, you sell the building blocks to build a neo-bank.
On the other hand, you can build a customer acquisition machine using the building blocks that are now available. However, the customer acquisition in Finance is known to be pretty high (c. $150 / user / new bank account). Hence, Fintech entrepreneurs are focusing on underbanked users or, in other words, the GenZ, Millenia and other unprofitable clients. The bet is that these clients will over time become highly profitable.
However, a great user customer strategy is to use crypto trading. You target profitable clients and do not compete with incumbents by offering a unique offering. Let’s look further.
The chart above lists the top 19 websites in the investing category ranked by the number of views. Fidelity.com is the most popular *in the world* in this category with 68.1m visits per month of which 98% are from the US!
For many Finance folks, none of these names are big surprises. However I would like to highlight two names TradingView and CoinMarketCap
TradingView #7 is a social network for traders and investors on stock, futures and forex markets. They have about 57m monthly visits and an international user base with the largest country (the US) representing only 13% of their audience.
Their growth strategy was very smart: (i) Build something complicated and a must-have for any Fintech stock trading company, i.e. charting, (ii) offer charting for free and with a freemium model, (iii) build a social media platform for technical traders powered by their charting solution. (iv) Obtain world domination in the charting world by leveraging social and trading drivers.
It is also worth to note that TradingView was one of the best venture investment in crypto capital markets outside of Binance BNB. The company raised $3m back in 2015 and then raised $37m from Insight Partners, Jump and DRW in May 2018 at a 20x valuation. All of this without a Token!
CoinMarketCap #18 is the most well-known cryptocurrency market cap ranking website. What’s very impressive is that the company was bootstrapped by a single founder. Today, it has 34m monthly visits and a huge international viewers base with the biggest market (the US) representing only 13%.
Let’s look at the rest of the list. What do you see? What does Binance, Etoro, Robinhood, Blockchain all have in common?
They all offer crypto / digital assets information and trading execution. In other words, crypto is the best growth marketing strategy to bootstrap / grow an audience in the B2C Fintech investing ecosystem. As crypto assets are (still) highly speculative assets with a high level of volatility, users are checking the price variation multiple times.
On the other hand, the incumbents financial investing players lack crypto information and trading capability. You can’t easily find the price of TRON on Fidelity. Hence, you check CoinMarketCap!
Most B2C Fintech companies success is only about distribution. Hence, their distribution success is highly improved if they offer a product that is not available by the incumbents. Crypto is perfect.
Companies like Revolut, Robinhood, Square Cash and Etoro have all understood this. Let’s talk about Revolut
For Revolut, cryptocurrencies was the most viral product it has launched to-date. The impact of cryptocurrencies was enormous for Revolut and proved a huge hit with Revolut prospective users, resulting in a huge growth in user acquisition. Revolut’s valuation soared to $1.7 billion, three months after the company launched the crypto trading service and its user base has increased by 70% [source]
Beyond the simple price information, these Fintech companies have simplified the process of buying digital assets to a few clicks, whereas most crypto exchanges have a clunky user interface and a cumbersome on-boarding process.
You may ask ‘where is Coinbase?’ Well, Coinbase would be ranked #21 in the investing ranking just before Binance. They are the poster child of ‘crypto driven growth user acquisition strategy’ with 30m+ users
In summary: If you have a neo-bank company and don’t offer crypto trading then you are missing out of the best growth user strategy.
🐦 Tweets of the week
A great conversation by Boris from Copper!
and meanwhile Transak just launched its global fiat on/off ramp!
🤹 Startups News
Bitcoin and Entrepreneurial Philanthropy: A Q&A With Paxful CEO Ray Youssef - Great interview! [Source]
I haven't seen a place where [Bitcoin] can be practically used. If you're going to actually do something on the ground in these places, forget about the blockchain. People are not thinking about it. If you actually want to do something there, we learned you have to work with the instruments that people have there.
The total transaction value of digital remittances, cross-border transfers made over the internet, has reached almost $95.96 billion in 2020, representing a year-over-year increase of more than 21% [Source]
🎁 Startups Product & Partnership
Binance Adds Russian Ruble to Its P2P Exchange. The P2P platform now supports three fiats - ruble, yuan, and dong. The P2P platform will allow Binance users to purchase services of Tether, Bitcoin, Ethereum, and Binance Coin with the newly added fiat [Source]
California-based digital assets financial service firm BitGo is expanding its global presence by launching 2 new cryptocurrency custodial platforms in Switzerland and Germany. The new custodial companies are aimed at providing BitGo customers with more jurisdictions to choose from, depending on which is most suited for their business [Source]
B2C2, a London-based over-the-counter (OTC) market maker, is sharing its data and allowing transactions on the Los Angeles-based exchange aggregator SFOX. [Source]
Spanish soccer powerhouse FC Barcelona, or Barca, has teamed up with fintech platform Chiliz to create a blockchain-based token for the sports franchise [Source]
Munich-based Bank von der Heydt, established in 1754, had partnered with blockchain financial services provider Bitbond to help integrate tokenization into its established securitization platform. The partnership will allow the bank to tokenize digital securities onto the Stellar blockchain, which it can offer to institutional clients via private placements [Source]
🏦Regulations / Universities
The American government’s long-running war on privacy escalated this week following the arrest of Coin Ninja’s Larry Harmon on money laundering charges. A Department of Justice statement that “seeking to obscure virtual currency transactions in this way [using mixers] is a crime” means that bitcoiners risk prosecution simply for exercising their right to privacy [Source]
Two letter bombs exploded in the Netherlands on Wednesday and an anonymous criminal is asking for a Bitcoin payment to prevent future attacks, Dutch police say. The first bomb went off at a postal sorting office in ABN Amro bank in Amsterdam on Wednesday morning. The letter bomb exploded moments after a mailroom worker tossed away the package. “The colleague who was sorting the mail heard a hissing sound, and threw the package away,” Mr. van der Varst said [Source]
The German regulator has warned against Nexo – Group, an entity which claims to offer foreign exchange (forex) and cryptocurrency trading. According to the regulator, the entity does not have the authority to do so in the country [Source]
Ukraine's Ministry of Digital Transformation has indicated it won't be creating regulations for the crypto mining sector [Source]
💰Fundings & M&A
Wells Fargo, the fourth-largest bank in the world, has set its eyes on the blockchain technology sector, making an investment into London-based cryptocurrency compliance firm Elliptic. This was reportedly done by Wells Fargo’s venture unit, to accelerate development of Elliptic’s product that helps banks to assess hundreds of crypto exchanges operating worldwide [Source]
Wintermute Trading, a United Kingdom-based algorithmic trading firm, has completed a seed funding round led by Blockchain.com’s venture arm Blockchain.com Ventures [Source]
About the author: Etienne used to head principal strategic investment (Companies, Funds and token investment) at Elwood, One of the largest European digital assets investment firm spun off of Brevan Howard, billion-dollar Macro Hedge fund. Previously, he was part of the founding team at the largest Capital Markets Venture Fund in London, Illuminate Financial