How a VC fund increases transparency in their cryptocurrency trading operations with Aplo
Overview
In the dynamic realm of decentralized technologies and digital assets, venture capital firms serve as crucial catalysts for fostering innovation. This case study delves into the experiences of a crypto-native VC fund, managing a substantial AUM of hundreds of millions, specializing in investments within blockchain technology and cryptocurrencies. Their portfolio encompasses a diverse array of projects, ranging from gaming applications to innovative protocols, providing exposure to both liquid and illiquid tokens. However, navigating the complexities of cryptocurrency trading can present significant challenges, especially when it comes to liquidity management and transparency in execution.
The challenge the VC Fund faced
Before integrating with Aplo, the VC fund primarily depended on a selection of OTC desks to liquidate the 70+ tokens within its portfolio. Relying solely on these desks not only limited the firm's control over execution strategies but also restricted its ability to capitalize on trading opportunities across a diverse range of assets. Additionally, the lack of flexibility in execution schedules, largely dictated by OTC desks operating during US business hours, further compounded their difficulties. Moreover, opacity surrounding trading costs undermined trust and impeded informed decision-making. Faced with these challenges, the VC firm recognized the pressing need for a regulated entity offering best execution services and self-service trading capabilities to empower them to navigate the complexities of cryptocurrency markets confidently and efficiently.
Why they chose Aplo
In search of a solution that would address these pain points, the VC firm turned to Aplo, a regulated entity renowned for its comprehensive suite of cryptocurrency trading services. Aplo stood out for several compelling reasons:
- Regulatory Compliance: As a regulated entity, Aplo provided the VC firm with the assurance of compliance with industry standards and regulatory requirements, instilling confidence in the security and legality of their trading activities.
- Multiple Liquidity Sources: Aplo's access to 10+ liquidity sources ensured enhanced market depth and minimized slippage, enabling the VC firm to execute trades efficiently and at optimal prices across various cryptocurrency markets.
- Best Execution Services: With Aplo's best execution services, the VC firm gained access to advanced trading algorithms and smart order routing technology, empowering them to achieve superior execution outcomes while mitigating execution risks.
- Self-Service Trading: Aplo's intuitive and user-friendly trading interface allowed the VC firm to take control of their trading activities, enabling them to execute trades autonomously and seamlessly around the clock, independent of geographical and temporal constraints.
The COO of the VC firm emphasized: "As an early-stage crypto venture fund, Aplo offers us access to a variety of top exchanges via a white glove or self-serve interface. Their customer service is great and keeps our team operating in confidence."
Results and Outcomes
By onboarding with Aplo, the VC fund successfully overcame the challenges associated with OTC trading and unlocked a new level of control and transparency in their cryptocurrency trading operations. With Aplo's comprehensive trading infrastructure, the firm was able to optimize their trading strategies, reduce trading costs by 20%, and capitalize on lucrative market opportunities with confidence and ease.
Contact Aplo at contact@aplo.io if you are eager to get more control over the trading of the cryptocurrencies you got from your portfolio investments.