In an attempt to hook crypto traders, Tagomi, a Cryptocurrency corporation, declares cuts in the trading cost.
This New Jersey startup has decreased the new rates by 70%, a tariff that is bound to attract crypto traders’ attention. With its revised rates, 0.1% or less, would be charged per trade.
That is, on cryptocurrency exchanges Coinbase and Gemini, if one wished to buy, say $10,000 worth of bitcoin, then as per the new declared price, one would be paying 70% less than the earlier rate. So, by conducting trade on this large scale at such a price, investors would end up saving around $25 through Tagomi.
Compared to over the counter (OTC) pay, the revised rates are lower. Jeff Dorman, chief investment officer at asset management firm Arca, notes that the fees usually range between 0.1% and 0.25% in Bitcoin trades through OTC desks.
Another company, Fidelity, has been reported to own a product that might contest with Tagomi’s. Without willing to reveal the rates, the Boston based asset management company’s spokesperson informed that for many months, their investors had been successfully using it.
Tagomi accumulates buy and sell orders from 10 different crypto exchanges (Coinbase, Gemini and Binance U.S., to name a few) as it does not have its own; and route its clients’ dealings to exchanges giving the best offers. Owing to Tagomi’s large (275) client base and the capacity of catering huge trading, it has been able to get discounted rates from the exchanges.
In its endeavor to aid investors to trade digital assets, Tagomi’s this move is sure to charm crypto traders. Though it would lure average crypto traders, Tagomi cofounder and president, Marc Bhargava amply made it clear that they are not keen to serve traders who wish to buy $500 of bitcoin; they are rather inclined to clients who would deal with $250,000 to $2 million and would be interested in opting for state-of-the-art tools.
Peter Thiel’s Founders Fund and crypto funds Multicoin Capital, Pantera, and Paradigm comprise Tagomi’s list of eminent clients.
Tagomi is currently emphasizing more on creating a powerful network that would ensure that more people use the product, which in turn would assume a greater value for every user, stated Bhargava.
This is why the 22-person, 2-year-old corporation is luring clients with their slashed rates, hoping to upsell them on “prime brokerage” components such as allowing users to loan crypto assets, cash, and sell as well (assuming that their price will decrease). 10 of Tagomi’s clients are subjected to its advanced features testing, as of now.
Tagomi, committed to creating a best-in-class trade execution platform for digital assets, has been cofounded by Jennifer Campbell (Forbes 30 Under 30), Greg Tusar, (Goldman Sachs’ former head of electronic trading) and Marc Bhargava.