Zignaly Research

7 min readJun 7, 2021

I’ve been mentioning Zignaly ($ZIG) since it launched back in April and wanted to take some time to delve into it a bit deeper and explain my reasoning

It goes without saying that Crypto is one of the most complex asset classes

Its nerve-wrecking volatility, fundamentals that go over an average investor’s head and never ending 24/7/365 trading can put the best of us under stress

To counter these problems, crypto communities around the globe rely on collective intelligence over mediums such as Twitter and Telegram

This revolution brought about the concept of “Social Trading”

Although we see social media being used to discuss other asset classes, I think it’s reasonable to assume that it’s a more important driver in crypto than any other market at this point

Where other asset classes have evolved over a long time, or launched within an existing institutional framework — crypto has long been community led and only just recently begun to receive any meaningful institutional interest

The Founders at Zignaly were quick to capitalize on this trend and effectively put it to use for solving a crucial problem in cryptosphere: enabling inexperienced newcomers to trade sensibly by leveraging the experience of seasoned crypto traders and portfolio managers

The idea was to develop a transparent marketplace where expert traders could provide their portfolio management services to investors of the crypto asset class in a secure environment

What started off as a barebones trading terminal and a signal providing service in crypto-winter did not take too long to evolve into a beast of its own kind

In a relatively short span of time, the Zignaly platform introduced an improved version of “copy trading” compatible with major exchanges such as Binance, Kucoin, and Bitmex with the pairs and liquidity they offer

It does not end here; Zignaly then moved on to completely revamp the copy trading solution due to its underlying inefficiencies, and came up with the “profit-sharing” solution

Not only did it improve the user experience and system efficiency but also offered top-notch performance based incentives to the expert traders

Considering the fact that Zignaly is the only “social investment” platform offering a state of the art profit sharing infrastructure backed by the Binance broker program, one would imagine that it comes at a cost for the user — but in reality Zignaly is absolutely free to use

With the profit sharing model in place, top expert traders have moved to a highly lucrative success fee model instead of the upfront fee based model — WIN — WIN for all!

There are quite a few reasons why I’ve been bullish on this token, and with this article I’ll take you through them

A few glimpses of the platform used by over 90,000 users

As the profit sharing model and Zignaly as a product gained popularity proven by the Key Performance Indicators starting to gain real traction, the team took a proactive approach and launched a private sale for the $ZIG token that ended in March 2021 (complete info & whitepaper)

This was done with an aim to fund the newly planned “NFT based Insurance Protocol” along with additional utilities

See more details on the insurance protocol here

The team said they were overwhelmed with the market’s response as VCs piled in offering funding and support

With names such as Sino Global Capital, Parataxis, Block Dream Fund by OKEX and more, the interest was high along with features on Forbes & Yahoo Finance

Here’s a publication from Sino Global capital as to why they invested in $ZIG

My followers will know that I’m a little bit of a secret Sino Global fanboy — I have nothing to do with them directly at all but it often seems to turn out that we invest in the same projects and share a lot of the same longer term vision in the market

So seeing they invested was just another plus for me

The sale was quick to conclude with Zignaly achieving 100% of the raise goal, which was set at USD 3 Million

This was followed by listings on Uniswap and a partner exchange Ascendex

The token did 24x on day one

As the market had a major pullback it wasn’t immune but I was very happy to see it hold up much better than the majority of smaller cap coins

I think this had a lot to do with the belief that many of the holders have in the mid to long term use case of the token and them being willing to lock up their tokens in the staking currently being offered on Ascendex

With competent advisors such as Julian Gropp, Pino Tedesco, Matthew Graham, Mauvis Ledford and Ceco Gakovic onboard, Zignaly was quick to announce their plans moving forward, that included:

ZIG token updated utilities
Updated road map
And a much anticipated Token Buy back and Burn program

They are active on Medium, and update the community with their progress regularly here

More About the $ZIG Token

The ZIG token natively came with a rather interesting design and they continue to build upon it, with the following use cases:

NFT based insurance protocol
Use $ZIG to pay success fees
Hold $ZIG to get trading fee rebate
Stake & Earn
Buyback & Burn Program

And many more utilities to come

However, where things get really interesting is the vesting schedule and how the burn program adds to it

Following is a glimpse of the vesting period and token allocations:

As I mentioned previously, $ZIG also offers a very competitive staking APR of approx 110%

It’s always great to make money while HODL’ing if you’re bullish on the token mid to long term

Not only that, Zignaly has 12% of its supply dedicated for liquidity incentives

I’ve been told that we can expect in-platform staking as well as pool partnerships in weeks to come

For me, the tokenomics of the $ZIG token seem to be well thought out and the way it integrates with the heart of the Zignaly platform means I can see it having a lot of potential in the future as the platform gains more traction

My Thoughts on the Future of Zignaly

For anyone that’s been around for a while, we know that the last few months have been amongst the easiest to trade of all time in crypto

You were forgiven almost all mistakes just by holding long enough, and almost every coin was getting technical pullbacks followed by breakouts with continuation

Well, this kind of environment doesn’t make up the majority of the time in the market, as we well know!

Solid traders with enough knowledge and experience can still make good profits in the current environment but for the vast majority of retail traders — this is the stage of the market where they are chopped up and give back all of their profits (and often more!)

I think it’s reasonable to assume that retail traders are still very interested in being in the market but the vast majority of them don’t have the time, mindset or inclination to spend the literal years (of pain!) that it takes to become a consistently profitable trader

I’m asked every day, even now, “how do I trade”?

I tell people about DCA strategies, about buying indexes but mostly — no, they want to feel like they’re trading the markets actively

So I send them some nice easy resources to get started with, like CryptoCred’s playlist

If you’re reading this I don’t need to tell you what happens next 99/100 times

Let’s just say — they don’t finish the videos and go on to become profitable traders

With that in mind, I feel like there is a huge space in the market for solutions that allow participants to feel like they are actively engaged with the market without taking on the task of actually, personally, taking the trades

Zignaly has empowered expert traders to monetize their skillset, all while providing a valuable service to the crypto investors with no upfront fee

The fact that it has taken “copy trading” and “profit sharing” mainstream with top-notch VCs onboard only adds to my belief

Zignaly does not disappoint from a core fundamentals standpoint either; it’s a working product since 2018 with over 90,000 users, the KPIs show progress and the roadmap is solid

For me, the future of $ZIG is looking bright and I look forward to seeing how it continues to develop