Valentin Mihov: Co-founder at Finexify Explains How they Provide DeFi Services to Tech-Savvy Investors

We recently connected with Valentin Mihov, Co-founder, and Chief Investment Officer at Finexify, a boutique investment company that offers an opportunity to gain exposure to the decentralized finance (DeFi) space.

The team at Finexify thinks that limited access to DeFi means “extraordinary” alpha with limited exposure to the cryptocurrency market volatility. Reserved for the crypto- and tech-savvy, their team of professionals claims they are prepared to provide meaningful opportunities to investors.

Our conversation with Valentin Mihov is shared below.

Crowdfund Insider: You’ve noted that you’re a boutique investment firm having a team of qualified professionals with expertise in DeFi. Tell us about how Finexify simplifies the complex space of decentralized finance while offering meaningful opportunities for users. How do you manage multiple cryptocurrencies on a single platform?

Valentin Mihov: Decentralized finance offers a myriad of opportunities to generate profits, but the hard part is to discern which are the ones that do not compromise the safety of your funds in the search for high yields. Our expertise and added value lie in this – auditing and monitoring multiple protocols to find the opportunities with the best risk-reward ratio. We identify and assess all potential risks and deploy various risk mitigation strategies when needed.

Our clients simply sign a contract and deposit their funds with us, while we manage them via a traditional regulated investment vehicle. We are currently incorporating our Cayman-based fund, a structure plenty of investors are already familiar with. We are partnering up with local established auditors and administrators which allows us to manage multiple cryptocurrencies in an easy and secure way.

You’ve explained that your company was established in Bulgaria and that you empower users to gain alpha via DeFi. How would you define your target audience? Tell us about the process of how you help users limit their exposure to the price fluctuations and volatility of the digital assets market.

Valentin Mihov We have two types of clients. The first ones are long-term crypto holders, specifically Ethereum investors. Those clients hold Ether long-term regardless of the price fluctuations and are firm believers in the future of the cryptocurrency, which is the backbone of the Decentralized Finance space. On the other hand, we have those that are not as crypto-savvy but see the profit potential. They enter our fund with the so-called stablecoins (i.e. USDT, USDC, DAI), which are cryptocurrencies pegged to the US dollar at 1:1 rate.

What is important to understand is that we do not speculate with the market. Our goal is not to time it by buying low and selling high in the search for profit, but rather to increase the number of each cryptocurrency our clients invest with us through yield generating strategies such as liquidity mining. We are able to book profits and we have been doing it for the past year irrespective of the market sentiment.

Crowdfund Insider: Could you please highlight some of the features that set Finexify apart from its competitors? How would you like to position Finexify amid the rapid growth of global adoption of cryptocurrencies?

Valentin Mihov: We bridge the gap between the traditional and decentralized finance worlds for corporate and individual investors alike. Our traditional investment vehicle provides a safe entry to the complex, not user-friendly space which leaves inexperienced users with a lot of room for mistakes or to fall prey to scams.

To be successful in the DeFi space you must have in-depth knowledge in the financial industry and blockchain space as well as expertise in computer programming. This is what we possess and we are extremely proud to have gathered such a team. At the same time, we popularize and are a part of an ecosystem that is building a global financial system, which is to become more efficient and accessible than the current one.

Crowdfund Insider: There’s been a rise in cryptocurrency-related fraud and theft. Due to these issues, existing and upcoming investors are now extra cautious with regard to investing in cryptocurrencies. How future-proof is Finexify and what steps do you take to ensure that the users are not exposed to such fraudulent activities?

Valentin Mihov: As the blockchain industry matures, it is becoming harder for fraudsters, scammers, and hackers to operate but indeed we still have a long way to go. Our main job is to ensure that our client’s funds are safe and secure and that is why we are extremely diligent when evaluating the protocols we are providing liquidity to.

Our experienced team of blockchain experts performs ongoing code security reviews to ensure that they meet our risk appetite. Thanks to this approach and the business acumen we have developed over the years through different projects in the blockchain and fintech industries, we have a spotless track record of investments in lucrative protocols without compromising the assets under our management.

Our objective is to mitigate risks while sustaining long-term profitability for our Ethereum and Stablecoin (USDT, USDC, DAI) investors.

Crowdfund Insider: Have you raised funding? If yes, please talk about a challenge that you faced in the process and the strategy that you implemented to tackle it? What would you like to say to our readers who want to invest in Ethereum and other crypto-assets but are somewhat hesitant to enter the DeFi space?

Valentin Mihov: We manage USD 4 M+ in stablecoins and Ether and all our current investors have found out about us through word of mouth. This has helped us immensely with building trust as our clients have been our greatest ambassadors. In order to achieve a 10-20x increase in our AuM, however, this is not enough and that is why we are setting up a regulated Cayman-based fund. It is suitable for both individual and institutional investors within a familiar, trustworthy, and compliant regulatory framework.

Investing in cryptocurrencies requires a lot of research and also some technical background in order to understand the technology behind them. Our advice is for people to start with Bitcoin and Ether without margin trading as the cryptocurrency market is extremely volatile and can wipe out leveraged positions very quickly. If you want to dip your toes into the world of DeFi, be cautious, start small, do your research and don’t fall for the unrealistic returns which come with great risks. For those that do not want to be subject to the price volatility, stablecoins are a great choice.

Crowdfund Insider: What are your plans for 2022 and beyond?

Valentin Mihov: We plan expansion across two verticals – an increase of the AuM and increase in the investment options we offer to investors. We hope to attract capital from venture funds, hedge funds, portfolio managers, and other institutional and individual investors once our regulated entity is set up at the beginning of February 2022.

In 2021, we achieved solid results – 55.72% gross profit on Ethereum and 72.01% on stablecoin investments. As the market matures, we expect a gross monthly return of around 2-3% in the year ahead. In the meantime, we are exploring and developing other strategies that can be deployed in the DeFi space and are also planning a partnership with an emerging Proof-of-Stake network with very promising blockchain economic features.

2022 will surely be an interesting year not only for us but also for the cryptocurrency industry. We are yet to see the results from the upgrade of the Ethereum network on the decentralized finance space, how regulation will unfold, and whether other countries will follow in the footsteps of El Salvador.



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