European buying and selling platform Bitpanda initially began as a cryptocurrency change. Over the previous few years, it has expanded to different asset varieties, reminiscent of shares, ETFs and treasured metals. And now, customers should purchase and promote commodities, reminiscent of pure fuel, oil, aluminum and wheat.
The timing of this launch traces up with necessary fluctuations in commodity costs in Europe because of the ongoing battle between Russia and Ukraine. And Bitpanda is properly conscious of that.
“I’m excited we’ve been ready so as to add commodities to the platform at a time when inflation is biting into folks’s financial savings. Bitpanda clients can now wager in opposition to their fuel invoice and profit from the short-term value actions of key commodities like oil, pure fuel, corn, wheat and lots of extra,” the corporate’s co-founder and CEO Eric Demuth mentioned in an announcement.
As at all times, buying and selling is a dangerous exercise, and it’s simpler to lose cash than to generate income.
Behind the scenes, Bitpanda doesn’t purchase and promote commodities straight when customers commerce within the app. As a substitute, the corporate has constructed contracts that allow publicity to commodities. These exchange-traded commodities (ETCs) observe the value of particular person commodities. The corporate at present presents 30 commodities.
Whereas Bitpanda doesn’t cost any fee or administration charges, there’s some unfold between the purchase and promote value — that unfold varies over time. The corporate generates income on inventory buying and selling utilizing the identical technique.
Final yr, Bitpanda raised greater than $400 million and managed to achieve a $4.1 billion valuation. It additionally launched a white-label service in order that different fintech apps and providers can provide buying and selling providers by Bitpanda. For example, Lydia has partnered with Bitpanda for its buying and selling function. The corporate additionally has its personal crypto token, the Bitpanda Ecosystem Token (BEST). It has reached 3.5 million customers.
And but, in June, the corporate introduced layoffs because of market adjustments, geopolitical tensions, inflation and a possible recession. Including commodities is a crucial step for the platform, because it desires to diversify its product providing. It’s the one strategy to face crypto winters extra serenely.