ceo / Founder at suprafin
We say goodbye to 2020 with a recap on the cryptocurrency industry and on SupraFin. Since Jan 1 2020, the cryptocurrency market has exhibited a large increase in market capitalization. As expected, as savvier investors have started to enter the cryptocurrency market, the differentiation of expected winners and losers within the cryptocurrency industry has sharpened. However, risk is never static and a winner today might not be a winner tomorrow.
SupraFin, which successfully soft launched the SupraFin app and its underlying risk models in Nov 2020, creates diversified cryptocurrency portfolios which target different risk profiles, which might appeal to lower risk tolerance crypto investors and higher risk tolerance crypto investors. The composition of these portfolios are expected to change as time passes by, because risk changes. The SupraFin focus is on picking & recommending the winning cryptos for medium term to long term, with a goal of avoiding the ones that might temporarily perform well but which will eventually crash.
The SupraFin higher risk recommended crypto portfolio has a year to date cumulative return of +329% (this portfolio does not include Bitcoin). There are many cryptocurrencies in the top 5 or top 10 from a market capitalization perspective that have had an almost zero % year to date return (some were doing relatively well during the year but recent news might have tanked their values). From a diversification perspective we observed that in March 12, when all markets collapsed as the USA was going into lockdown, Bitcoin had a year to date cumulative return of -26%, while our lower risk portfolio had a +1 year to date cumulative return; but more importantly the SupraFin higher risk portfolio had a cumulative return of -12%. Hence, in 2020, the SupraFin portfolios have outperformed the cryptocurrency market and Bitcoin, not only when the markets went up but also when the markets collapsed.
In 2021, SupraFin expects to launch the SupraFin platform to the public and to enter the B2B space through partnerships with Private Wealth Managers, with three prospects already in the pipeline. While SupraFin is currently focusing on the UK market, SupraFin aims to enter the USA market in 2021, among others.