In this episode of the HodlFM podcast, Tanya sits down with Stevan Radonjanin, the CEO of Veli, a cutting-edge platform focused on crypto investment strategies. Stevan, a seasoned entrepreneur in the crypto space, walks us through Veli's journey, from creating automated systems for small investors to building products for wealth managers seeking to navigate the world of digital assets.
Throughout the conversation, we dive into the current trends in the crypto market, from the rise of Bitcoin ETFs to the ongoing shifts in institutional interest. Stevan shares his insights on MICA regulation and its impact on crypto adoption, the future of AI and meme coins, and how small investors can use smart strategies to minimize risk.
If you're a crypto enthusiast or looking to understand how institutional players are shaping the market, this episode is filled with valuable perspectives on navigating the crypto landscape, investing in indexes, and the role of wealth managers in digital assets. Stay tuned as Stevan also discusses the exciting developments at Veli and what's to come in the world of crypto investment!
Watch on Youtube
Tanya:
Hi everyone, and welcome back to the HodlFM podcast. This is the place where we discuss crypto insights, crypto news, and crypto trends. And today, our guest is Stevan Radonjanin, the CEO at Veli. Thank you for joining us, Stevan. Tell us a little bit about your product, what you guys are building, and what you're working on.
Stevan Radonjanin:
Sure! Maybe just very briefly, we have a couple of products. We started initially with a platform for end users, a mobile app where they can buy crypto, kind of similar to how whales are buying: buy when prices are low, sell when prices are roughly high, and so on. In the meantime, we built a platform for wealth managers—a small extension to our mobile app, a web platform where wealth managers can see all their clients and manage their portfolios. And on that platform, besides buying just single coins like Bitcoin, Ether, etc., wealth managers and their users can also buy crypto indexes, or we call them crypto strategies, where basically with one click, you buy 10 different coins, and then the strategy rebalances every month automatically.
What we are now doing is, basically, we have extracted those crypto indexes, and we have an API that offers other investment platforms the possibility to integrate crypto indexes there.
Tanya:
That's really interesting. How did you come up with the idea? Was it you who was the initial idea creator, or did you have someone else on your team?
Stevan Radonjanin:
For the first product, basically, the mobile app, it was me. Back when I was working for Cryptomud, one VC approached me and asked me if I had any idea. I already had the idea because I saw that small investors were getting slashed left and right—every bull market, they’re buying near the top, and when the market drops 70%, they lose money. So I said, "Okay, let’s try to build something where, in an automated way, they can invest smartly."
For the wealth management platform, it actually came from our investors. We got an investor, a VC, and their main LP was the largest Slovenian wealth management company. They asked us, "Hey guys, we need a place where we can manage crypto for our clients. Can you build something?"
So we said, "Of course," rolled our sleeves, and built it quickly.
And then, for this API, how it came, it’s an interesting story. My co-founder, Marco, and I were at WebSummit, and we were approached by Christian, who was the CEO of a large crypto broker. He asked us, "Hey guys, I really like your crypto indices. How can I have this on my platform?"
We had the idea of how to do it, and I previously implemented this product at Bit Panda, Cryptomat, and then at Veli. Every time, it was really successful. We had, I think, more than 80% of the revenue coming from crypto indices.
So we said, "Okay, with that knowledge, we need to somehow build it in a way that benefits the brokers." From BitPanda, I knew that it shouldn't be too expensive because certain index providers charge a lot per month per index. From Cryptomat times, I knew that the platforms don’t want their users leaving and going to another platform. Everything needs to stay on their platform: the execution, custody, and so on.
So, we built this API, and we already have the first client secured.
Tanya:
Really nice, really cool. What about the end users? So, as an end user, for example, I just download your app, and you tell me where and when to buy high and sell low, or do you do it for me in just like a broker with indexes? How does it work from the inside?
Stevan Radonjanin:
It’s an automated system. You have a regular app that you would download and deposit funds there, and then you have those crypto indexes. We have two types of indexes:
- Passive: These move up and down with the market.
- Smart indexes or smart strategies: Here, we attempt exactly that to help people buy when prices are low and sell a little bit every month towards the top so that when the market drops like 70–80%, they’re more or less out of the market and don’t experience this drop as much.
We achieved this through a combination of certain indicators, both related to Bitcoin's hing dates and also on-chain indicators. We tested over 100 indicators and chose the best combination, and it has proven quite good so far. It started buying in November 2022, when Bitcoin was around $16K. Now, it’s already selling a little bit, locking in nice profits.
Tanya:
Wow, that’s impressive. So, what do you think of the current trends in the crypto world? I mean, there was gaming, game metaverses, and all these things. We also had ICOs. What do you think is the most popular thing being built right now?
Stevan Radonjanin:
I think this cycle is dominated by RWA coins, so basically tokens backed by real-world assets. There’s also a lot of focus on AI-related coins. The AI craze is so funny because, like yesterday, everyone on LinkedIn was a crypto expert, and now everyone’s an AI expert!
Meme coins seem to be like a constant, performing well in both this cycle and the previous one.
Part of the reason we’re doing these crypto indices is because people don’t know which project is good in a certain category. But if the whole category is performing well, it makes sense to get an index, as it allows you to ride the wave of a strong-performing sector.
Tanya:
What about the listing of coins? Do you guys list coins on your exchange, or where do you get them from?
Stevan Radonjanin:
We’re not an exchange. We’re a brokerage platform, kind of like Coinbase or BitPanda. Basically, when a coin is listed on an exchange we are plugged into, we can add it to our platform. For example, when Trumpcoin and Melania coins were listed, though I’m not saying they’re good investments, they were quickly added to our platform, and people could buy them immediately.
Tanya:
You mentioned the MICA regulation earlier. What’s your take on it? Do you think it’s helping Europe in terms of crypto adoption, or is it slowing things down?
Stevan Radonjanin:
I’d say it’s a regulation written by banks for banks. I feel like banks have helped write this regulation to fulfill their own requirements. It’s making it harder for smaller players to fulfill the requirements, so we will likely see market consolidation.
However, it does have some positives, like preventing scams. For example, when FTX collapsed, the Japanese regulator had already ruled that customer funds should be separated from company funds. That’s a positive move for the market.
The institutional players are entering slowly, and we are seeing financial advisors and wealth managers preparing for the influx of serious capital into the crypto market.
But in terms of innovation, Europe will probably lag behind other regions like the US and Asia due to stricter regulations.
Tanya:
I completely agree. It’s definitely a balance between regulation and innovation.
Now, you’re raising funds, right? Can you share a piece of advice on how to successfully secure funding?
Stevan Radonjanin:
The timing is crucial. When we started fundraising, we already had an offer of half a million from one VC, but we rejected it. We decided to invest our own capital and raise more with the token.
After the FTX crash, fundraising became difficult, and we had two years of painful attempts. But we built the product, got traction, and raised 450K in revenue last year, which has made it easier now.
We raised from family and friends first, then pitched to angel groups. Once you get one investment group, they connect you to others, and it builds momentum. Also, always deliver on your promises and show consistent progress in your investor updates.
We’re currently raising around 2 million, with Oneird already committed. We’re in three accelerators that are providing matching grants.
Tanya:
That’s a really cool experience. I think we need a separate session just on fundraising because it's a very important topic and valuable for anyone looking to secure investment.
Thank you so much, Stevan, for joining us today. It was an insightful session. I hope to see you soon!
Stevan Radonjanin:
Thank you. Likewise, it was a pleasure!
Tanya:
Thanks again, and goodbye!
Tanya Petrusenko
Disclaimer: All materials on this site are for informational purposes only. None of the material should be interpreted as investment advice. Please note that despite the nature of much of the material created and hosted on this website, HODL FM is not a financial reference resource, and the opinions of authors and other contributors are their own and should not be taken as financial advice. If you require advice. HODL FM strongly recommends contacting a qualified industry professional.
