Kay Khemani on Spectre.ai's decentralized trading platform

0:00i'm ashton addison from block west capital for investmentpitch media and the Crypto Coin Show and today on blockchain interviews we have kamani the managing director at hatchworks who's working on spectre ai okay welcome to the show and thanks so much for taking the time to come on thanks for having me you're very welcome i'm excited to dive into spectre ai's platform this is really

0:22unique in the cryptocurrency space but before we begin i would love if you could give a little bit of background on yourself and finance and blockchain and how that led to joining spectre ai sure so my background is basically in equity research and i was there for around six years in the sector i worked at jp morgan and then goldman sachs

0:44in a relatively senior capacity and after that i kind of left and started my own entrepreneurship journey back in 2012 the tail end of 2011 and around 2014 2015 we got into financial technologies predominantly we were into financial education and automatic trading algorithms and we spotted a problem in the retail trading

1:12markets and that was predominantly the fact that when you're trading centralized generally speaking as a retail trader you need to send your money to a broker and 80 of the time there won't be any problem right if you're trading with interactive brokers or saxo bank these are these are some of the big regulated shops nothing really goes wrong there generally

1:36but when you go towards the brokers that offer cfds highly leveraged products binary options things like this the quote-unquote starts to hit the fan and so we noticed this problem really accelerating in 2015 2016 and 2017. with a lot of incidents where clients were winning and they were just not getting their money back or the price fees were broken or they were

2:03manipulated or account managers would trade on the behalf of the client without their permission this is just the tip of the iceberg and then eventually in 2016 or 2017 there wasn't there was an event in canada and i won't get too much into the specifics but basically a retail trader who had saved up around 250 000 for his kids education and you know for his pension and what

2:30have you some brokers stole his his money basically over a period of six months he ended up shooting himself in the head and the fbi got involved and it was it was this huge incident and that kind of woke us up and we said you know what blockchain technology is allowing retail traders sorry blockchain technologies allowing through smart contracts the ability to disintermediate

2:56Any centralized human being you know in this case with brokerages so what we did is we created a smart contract and through this the doubt the decentralized autonomous liquidity pool concept was born and this would allow a retail trader to use ethereum to trade against a market maker but directly through a smart contract so if they win the trade

3:18they get the money if they lose the money goes minus whatever commission to the technology provider to the market maker and obviously uniswap did this fantastically now that we see you know it's become the go-to place for decentralized trading of tokens but so we basically that's that's what we created a way for people to trade very short term duration smart contracts

3:44using smart contracts to trade smart options and we effectively took three or four years to you know scale the product to where it is today now we are very different in what we do in the blockchain i don't know if you want to talk about that a little bit now but basically you have finance to trade tokens kraken coinbase these are the ones where you

4:08can buy you can hold long-term you can also trade in some of these exchanges futures and perpetual futures with a lot of leverage we are all about low risk trading however we still allow you to earn very high returns just not the crazy returns that like two three four five six seven hundred percent and that comes with excessive leverage so all of our

4:30contracts are completely zero leverage you cannot lose more than the amount you commit to any trade but where we really specialize is duration right so where spectre really specializes is in the sort of the short end of the curve in terms of traders wanting to generate let's say 70 or 90 percent or 100 roi within just five seconds or 10 seconds or 20 seconds or one minute

4:56right so you can basically on our system you can say i believe bitcoin is going to go up in the next two minutes or two minutes and 30 seconds i want to take a 100 trade and if bitcoin is even just half a percent higher or even a basis point higher i want to get paid a certain percent and based on market volatility based on liquidity at that time the system will

5:17create a market for this specific trade and generally speaking on average traders are earning anywhere from 70 to 100 percent with some certain upgrades it can go as high as 400 percent but the most important thing is that it's zero leverage and so it's it's all about short term high return trading but with a medium risk profile so we just don't touch the

5:41leverage side of things right now we have around 400 assets that are being deployed as we speak on the system they're already around 80 80 to 100 and you can basically trade around i would say 30 to 40 top cryptos around 20 to 30 top global stocks and then a range of exotic products like reverse futures and also we have

6:11we've added recently a version of cfds which is in demo mode great okay yeah a lot of information there to unpack obviously starting out with that you know 80 of the time it works that's a pretty big gap for you know 20 of the time where there's issues and obviously blockchain is a great solution to disintermediate those brokers out of there

6:36i really like that you are differentiating the strategy with the short term you know on these major exchanges like finance and coinbase yeah you can buy futures on bitcoin you can do scalping but it's not really designed for you know five second traits and that's something that i think a lot of people that got into cryptocurrency and trading but not are in the stock market

6:59and traditional equities probably are not familiar with that and so it's interesting to see that spectre has you have bitcoin but you also have these other you know traditional market products and you're combining those in there can you talk about exactly can you talk about that like is it is this design for crypto traders this is designed for equities or it's designed

7:20for anybody that's looking for this kind of strategy that's a really good question ashley it's designed for the ladder so it's it's we want to introduce this to the crypto industry because people have their fantastic options with kraken coinbase unit swap you know they can kind of play their 10x is there with the pre-sales and all the exciting

7:40tokens are always launching all that you know that's not what we provide so with us no trader ever actually owns the underlying asset and you're right we have a diverse array of assets you know what we want to do is tell the crypto community that look you have all these options that you've been using for all these years check out spectre if you're interested

7:58in generating a high return in a very short period without leverage right so it's a very focused offering and you're totally right it's not necessarily just bitcoin right i mean we offer 40 cryptos and that should ride rise to around 400 by the end of next year but ultimately anything that goes up or down anything that you can research in the market fundamentally or technical

8:19analysis wise could be currencies you know traditional euro us dollar but it can also be of course volatility based products and it can of course be your traditional cryptos equities and i think soon we're going to be adding some more exotic things like orange juice futures and durian futures so the bottom line is we just we will be flooding the

8:43system with assets and we create markets for traders to basically to come in and generate a very good risk adjusted return but in a very short period without leverage definitely no it's very exciting and with you know it sounds like such a differentiation in the market you know i really have not heard of a product like this inc that includes cryptocurrencies

9:10And i'm not familiar with you know a lot of the traditional equity platforms where people are trading but it sounds really exciting and obviously to have the dalp and the decentralized platform that's going to be the key factor in having all those problems solved where nobody's going to take your funds you know you're the one who has access and

9:28you have control of the funds yeah that's that's that's a really important point so a retail broker lives and dies by their online reputation these days right and if you look at spectres trust pilot scores or their forex piece army scores or generally speaking online of course you will find the odd disgruntled trader this is this is normal 75 of traders lose money when

9:57they trade a derivative a contract for difference so we of course are always look looking at what traders are saying about our platform responding to customer feedback but it is very important to know that when it comes to fraud when it comes to the fiduciary responsibility that spectre has towards its its traders that's where it really stands apart if you go to the online

10:19reviews you'll see spectre generally has a superior reputation relative to competitors and we really like that part of the of the product and the offering and you know this is built over four years now three and a half four years so if there was any any fraud it would eventually have been weeded out by retail traders because these days they

10:43have so many options right robin hood interactive brokers saxo crack and finance i mean you can trade in so many places in the world today so in order for us to stand out we offer very unique product to crypto that's the first thing and we do it of course in a way which is which is fraud free and when i say we i mean it's probably worth noting that you

11:02know although i am a representative the spectre team is based in asia and a lot of the growth has come to come in there and also we're seeing that coming for specter in asia from the cryptos side of things definitely yeah the markets are are crazy over there and you know speaking of you know the blockchain part i wanted to also touch on the

11:26token system because i was reading into the fact that there's a two token system and i'm curious on you know if there's other functionalities within the platform is that required for trading fees or staking or lp and how does that function throughout spectre so basically with sx ut which is a utility token that spectre offers you can use it to upgrade whether you're

11:51trading trading decentralized or centralized on spectre.ai however what we've seen is the vast majority of traders they deposit in fiat currencies or they use crypto to convert to a fiat currency and then trade there and then they will just upgrade on traders bay which is sort of the marketplace where you can buy upgrades and most use fiat however what

12:14spectre.ai does is they use the fiat that's generated to pay for these upgrades by traders and then they mark it by sxut and they burn the tokens so this has been a multi-year burn that has been happening so it is driven by utility in some respect and then of course for people that understand crypto that are that understand how to use a dex they can buy

12:36a sxut and upgrade the other token that you made reference to is sxdt which is the spectre rewards token that's just a passive income yielding token that has been around now since may 2018 that's when the first dividend or reward was paid they have a spectre team has paid around i believe it was 2.8 somewhere in the range of 2.8 to

13:05point two million dollars back and that's fiat cash you know that's not tokens paid in tokens it's actual that's the amount of dividend that has been paid back to the sxdt token holders and then there we have a few thousand token holders who are just kind of you know huddling and seeing how the story plays out over the years where we update them and

13:26that token is basically nourished if you want to put it with rewards based on how spectre.ai does as a platform so when it grows the token rewards grow when the investments in the firm do well then part of that goes to token holders as well that makes total sense and that's a great amount that has already been contributed back so that's great to hear for those

13:53token holders right now yeah and yeah it's around 17 i think roughly speaking 15 to 17 returned three and a half four years in the journey obviously if you take into account the ethereum price has gone up as well so the actual amount returned is going to be higher the week the payment has been i think weekly and then we moved to a monthly

14:19model last year but assuming no price changes in ethereum that is the amount yeah that's great k and you mentioned that there's a lot of more products that are coming out on spectre and i'm curious if you can give any hints into you know whether it's new products or just overall one of the major milestones that your team is looking to deliver you know in by the end of this

14:46year and into 2022. yeah great question so for us it's all about getting more assets onto the platform so we can identify with different types of retail traders around the world who are used to trading a specific type of asset so we want to offer that as well the second important bit for us is of course listening to the vast amount of customer feedback

15:10you know that spectre ai has been getting over the years it's important to note that our platform is still in its infancy relative to other brokers this means that from a technical standpoint spectre still has areas to fill and that means much faster charts much quicker entries and trading much more seamlessly in general if you look at for example

15:35trading view which is used by so many traders around the world it's such a well put together trading platform right and it's it's just a fantastic information nexus and also you can speak to other traders and there's so much happening so that team has really done things really really well and so our charts we are working on really upgrading them to make them

15:58very seamless very quick when they load these things really matter for retail traders so in answer to your question that's the rollout that we are looking for those two things more assets and a better trading platform beyond that i would say i know the team is working in indonesia on adding more and more payment service integrators and providers specifically on the digital

16:19asset side and on the legal side the legals are always working on getting more and more regulated licenses through definitely well that is something that i value a lot as well i think the trading charts and the user experience are going to be super important to getting that to the next level so i'm excited to see that happen and come out on spectre

16:44and more products you know when more derivatives are always great as well for the viewers that are looking to you know start utilizing spectre and follow along with all of the updates that your team's working on what's the best way for them to learn more sure ashton so the best way is just go to www.spector.ai it's probably worth noting that spectre is not open to

17:07around 15 countries so the u.s citizens is one of them we don't offer services to u.s citizens but if you are in a jurisdiction where inspector offers services then you just go and you would create a demo account i would not advise trading with real money if you're not a trader if you've never traded i would actually advise using the demo account for a few

17:28months get in touch with the team learn a little bit about what the product is because it's very exciting and then when you're ready you know you dip your toes and eventually you end up on the deep end so that's the way we do it we never advise to just deposit money and you know blow your account go slow and i think that's the best way

17:49To do it sounds great kay thanks so much for taking the time to come on to talk about spectre ai all the best with these updates moving forward and let's follow up in the near future thanks ashton see you see you soon