Cryptocurrency Startups Like Tagomi Have Pegged Institutional Investors To Cater Services For Their Business
Tagomi, a trading platform startup based in New Jersey City, is seeking institutional investors who are looking to invest a lot of funds. Forbes notes that the company is run by a Harvard graduate and former head of Electronic Trading at Goldman Sachs, who also has experience as a consultant for private equity firms and venture capitalists.
Tagomi provides institutional clients with onboarding into the cryptocurrency space. It pools liquidity from about 10 exchanges and finds low prices by algorithm. The commission can run anywhere from 0.10% to 0.25% per trade.
As the platform’s co-CEO Greg Tulsar stated,
“The current exchange model requires you to prefund your trade. When you want to buy $1 million of bitcoin, we need to have thought through where you’re likely to want to buy.”
Institutional investors have been a big force in the cryptocurrency space and some seem to believe that their funds are on the sidelines. However, others believe that such a position is misguided because those who are most successful can also buy at the bottom and sell on top. Thus, institutional investors may be adopting hits practice as well.
“Current trading volumes underestimate what we see in terms of institutional interest.”