Crypto Investing ‘Seatbelt’ Libertify To Enter Grand Finale Of Hong Kong Fintech Fast Track
AI-powered crypto investing risk management platform Libertify has just been named as the winner of the Hong Kong Fintech Fast Track in Paris. The project was selected by a jury of crypto experts from companies including Axa Next, BPI, Les Echos, AngelHub and others to take part in the grand finale of the contest in Hong Kong in November.
Libertify bills itself as the “crypto seatbelt”, and is designed to help automate investors’ trading strategies to overcome market volatility.
In a blog post, Libertify founder and CEO Steve Rosenblum explains that the app is basically a kind of investing assistant. It works by providing AI-powered advice as soon as a market occurrence signifies that it may be advantageous for the investor to make a change in their crypto portfolio. Users simply decide whether or not to follow that advice in a single click, and the app will then make the necessary changes to their portfolio. It’s an automated trading solution that helps investors to drive bigger gains while minimizing their losses.
One of the best things about Libertify is that its trading strategy can be tailored to each investor’s risk appetite. The app works by analyzing the user’s trading behavior in order to assess their level of risk tolerance when faced with the possibility of a loss or a gain. It then uses a nudging framework that interprets data from the risk assessment in order to create customized trading suggestions that offset the user’s cognitive biases to improve their risk-adjusted performance. It also incorporates a natural language processing framework that’s able to generate human-understandable explanations of unstructured data and the nuances that suit an investor’s risk profile.
Most important for users are the AI-generated recommendations, which are based on a smart and dynamic “Buy & Hold” strategy developed by Libertify. The basic strategy involves splitting each asset between a non-volatile cash reserve and the actual token that’s subject to market volatility, Rosenblum explains.
Libertify notifies investors whenever it spots an opportunity to exit a trade that protects the value of the underlying asset (to minimize or prevent a loss), or the chance to take advantage of a potential rebound or uptrend (to try and make a profit). In addition, it will also recommend position sizing for each trade, based on the investor’s overall portfolio, their diversification strategy and risk tolerance.
With its promise to help investors squeeze higher returns while minimizing their losses, it’s not surprising that Libertify has gotten quite a bit of attention already. To date, it has raised €3.5 million in funding. It works with multiple crypto exchanges, including Binance, Coinbase and Kraken, and is now expanding its plug-and-play risk management platform to multiple banks, neo banks, online brokers and other exchanges.
“By continuously optimizing our clients' risk/reward ratio through AI, we make investment safer for everyone,” Rosenblum said in a statement. “In a challenging market environment, we help every investor stay on the right track.”
The Hong Kong Fintech Fast Track is a prestigious annual contest for fintech startups, with finalists winning not only additional funding but also receiving expert guidance on business opportunities from more than 50 “Global Fast Track Champions” representing a wide spectrum of Hong Kong’s biggest companies. The contest is hosting semi-final events at 12 global cities from June to September, ahead of the grand finale that takes place in Hong Kong in November.
Having already launched its platform for cryptocurrency traders, Libertify’s next step is to integrate with traditional stock market platforms too, bringing its automated risk management to every kind of trader.
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