Cryptocurrency-trading platform Revix, which allows users to invest in token offerings backed by real world assets, has launched in South Africa on the back of raising ZAR11 million (US$794,000) from JSE-listed firm Sabvest.
Revix has the aim of making investments in cryptocurrency funds more accessible to ordinary investors, and was founded by Sean Sanders and Louis Buys last April.
“We noticed the obvious trend in traditional finance where far more capital was flowing into passively managed, low cost ETFs than actively managed funds. In fact, if I’m not mistaken, in 2021 there is expected to be more capital in passively managed ETFs than in actively managed funds globally,” Sanders told Disrupt Africa.
“This may not seem like such a big deal but for the last few hundred years or so the world of finance has worked where people have actively managed your money, whether it be your pension or another investment, so to see this trend moving so strongly in one direction should be a wake-up call for those who don’t adapt to the changing times.”
Revix was formed on the realisation that technology, with AI integration, could be used to buy the assets that make up a sector or broader market, and gain low-cost, diversified exposure without high fund administrator fees.
“Another glaringly obvious issue was the lack of retail investor involvement in alternative assets. I mean why can only the wealthy own shares in venture capital funds or hedge funds? It just doesn’t make sense,” Sanders said.
“When we saw these three problems and how we could use technology to solve them with an elegant simple solution that is Revix the light bulb turned on and we knew we had something to work towards.”
The solution has now launched, after Sanders and Buys secured ZAR11 million (US$794,000) in funding from Sabvest. The firm has taken a 30 per cent stake in the business.
“We are launching in South Africa with plans to expand into Europe and the United Kingdom. South Africa is a key market for us as people are very clued up on cryptocurrencies relative to other markets globally which should drive greater rates of adoption,” Sanders said.
Revix launches with a simple fee structure. There are no deposit fees, storage or performance fees, with the platform charging only monthly rebalancing, transaction and withdrawal fees.