Los Angeles-based blockchain company Skraps is the first startup to bring micro-investing to the cryptocurrency space. Its new investment app will allow users to round off credit and debit card purchases of connected cards to the nearest dollar and invest that spare change into a diversified cryptocurrency portfolio in a fully automated fashion.
Micro-investing refers to investing small amounts of money on a daily basis into a predefined investment portfolio to grow your investment capital over time. The idea behind micro-investing, which was pioneered by California-based Acorns, is to allow those who have little investment capital and limited investment knowledge to partake in the financial markets by automatically putting small amounts of money into a portfolio every day. The first micro-investing apps invested in portfolios composed of stock and bond ETFs.
Skraps takes this concept and applies it to the cryptocurrency space to allow users the same easy and convenient way of investing but for digital currencies. In light of the growing interest in cryptocurrency investing, especially from millennials, Skraps’ micro-investing app offers an ideal solution for those new to the cryptocurrency markets as well as those who prefer a hands-off approach to investing. Skraps comes with no minimum investment requirements, requires no minimum balance, and charges no withdrawal fees. These features make the app an easy and convenient way to get started as a cryptocurrency investor even for those who have only a small amount of capital at disposal.
To get started, you need to choose one of five possible portfolios, which are ranked by riskiness, and connect their wallets and bank cards to the app. Once that is completed, the app will automatically round off purchases made with the connected wallets and cards to the nearest dollar and place that spare change into the user’s chosen cryptocurrency portfolio.
Investors Are Loving the Concept
Skraps launched its token sale on January 15, 2018, and managed to exceed its $1 million soft cap within the first ten hours of the ICO by raising over $1.75 million. This clearly shows that there is demand for a cryptocurrency micro-investing application and that investors believe in the value that such an application will bring.
To date, Skraps has raised over $3 million despite the challenging market environment the crypto asset market has experienced since the start of the year.
Kal Mokhtar, co-founder of Skraps, said: “We are delighted by the positive feedback and the financial backing we have received since the start of our token sale. This proves to us that the market is ready for the type of micro-investing app we are launching.”
Skraps micro-investing app has the potential to attract more first time investors to the cryptocurrency market as well as offer an alternative way of investing for seasoned crypto investors.