Abhinav Ramesh, the CEO of WandX, is building the financial instrument infrastructure
on the rapidly growing Ethereum token market. Imagine the equivalent of a Wall Street,
with securitization and derivatives, except here it would be on tokenized assets with full
transparency and identity management.
Bryan Feinberg, Founder of Etheralabs / ChainDynamics and Partner-at- Large at
Blockchain News recently interviewed Abhinav, founder and CEO of WandX, about his
new erc20 token – the Wand token. The WandX team of blockchain developers,
veterans of the financial services industry, and veterans in the Indian IT sector are
building out the WandX infrastructure on Ethereum (think decentralized Kraken + tools
to create any derivative such as futures, options, swaps, all on one platform).
Here is the Full Interview
Feinberg: Tell us more about the target market for your platform.
Abhinav: For our portfolio trading application, the target market is divided into two
sides. The first side is the creators and sellers of these portfolios; they would create
these token baskets because it would enable them to sell the basket at a markup, as
well as sell multiple tokens with a single transaction. The buyers are the second side;
they would have the convenience of owning a portfolio that has shown good returns
over the past. All the trades would happen through our smart contracts and APIs, which
brings in another potential business model – partnering with fiat-BTC/ETH exchanges.
Exchanges could potentially use our APIs to enable their customers to trade in a variety
of ERC20 tokens as well.
Feinberg: For such a platform to work, trust is key. How do you plan to get users to
trust your platform?
Abhinav: Our smart contract code is open source. The contracts are designed such
that the ERC20 token portfolio either transfers completely, or the entire transaction
would fail, hence no potential for errors.
Feinberg: What’s your 2 month, 6 month, and two year plans?
Abhinav: 2 month – We’re targeting a mainnet release of our portfolio trading
application, along with trade between portfolios, meaning that users can swap portfolios
of ERC20 tokens between themselves. 6 month – Our platform would enable
decentralized creation and trade of derivatives, ETFs, and portfolios built on ERC20
tokens. This would be done through our APIs and smart contracts. We would define a
protocol for decentralized derivatives trade in terms of escrow and margin accounts. We
intend to pilot our product across industries such as loyalty points as detailed on our
blog. 2 years – enable creation, trade, and settlement of any financial instrument across
blockchains and crypto-assets.
Feinberg: Whether it’s blockchain or not, this is a business. What’s you business model
and growth strategy?
Abhinav: Our business model for the first portfolio trading application is a percentage of
the trade. The next application which would enable creation and trade of ETFs and
derivatives would have a similar business model, except that we would also take a
percentage of creation as well. This is because we’ve created the APIs and smart
contract infrastructure to enable easy creation and trade; we’ve added a lot of value
through creating this smart contract framework, hence we would be taking a percentage
for creation as well. We plan to grow by partnering with liquidity providers who would be
willing to trade on our application, pilot real world use cases of our platform, and fast
track to become one of the first decentralized platforms for financial instruments on
Ethereum. With the number of users trading cryptocurrencies increasing by the day, we
believe that we’re well poised to capture a reasonable chunk of the altcoin trading
Feinberg: Coming to the tokens, why are you introducing a new token, how can users
benefit from it, and how does it fit in your business model?
Abhinav: Thanks for the question. We’re introducing the Wand token to incentivize
creation and trade of financial instruments; it’s the equivalent of a loyalty points scheme
in retail. Users are incentivized with a percentage of Wand tokens for every creation and
trade of instruments. In our initial application, users can pay for portfolios with Wand
tokens, and they get a discount on our platform trading fee every time a trade is made.
They also get a discount every time a derivative or ETF is created. The Wand token is a
utility token, and does not have any connection to shares at WandX Pte Ltd.
Feinberg: What does your team bring to the table where others may fall short? How is
your team different?
Abhinav: Our team can be classified into three groups – Software experts, financial
services veterans, and blockchain experts. Our core development team has spent over
20 years in the Indian IT industry, developing software from Java to configuring
hardware in an industrial setting. Our blockchain developers have developed smart
contracts in various industry PoCs. Our financial services veterans have each spent
over 20 years in debt markets, custodian services, management consulting, as well as
research. Some of the team is still working in companies, since bills still have to be paid.
But they’re passionate about getting on board full time once the mainnet release is out. I
believe that we have the right intersection of talent from various industries to pull off our
full fledged financial instrument platform in 6 months time.