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OMTrade: Received investment from StepN developer and is committed to building a "trading community" copy trading platform

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“In the long term, we hope that all users will find their tribe – their spiritual home – on OM Trade, just like many have done in their Reddit subreddits.”

In the encryption industry, copy trading is a commonly used trading strategy for investors. Investment followers replicate the trading operations of another successful trader in the hope of achieving similar investment returns. Currently, copy trading functionality has been embedded as a regular requirement in many trading platforms.

On November 19th, OMTrade, a cryptocurrency trading platform, announced the completion of a $6 million seed round of financing. According to information, the round was led by Find Satoshi Lab (the developer of STEPN), Folius Ventures, and Incuba Alpha, with participation from KSK Fund, a star-studded lineup of Web3 founders, Web2 entrepreneurs, hedge fund managers, and traders. What makes OMTrade special? BlockBeats has made a summary of this.

"Find Your Trading Master"

OMTrade founder Michael Lee said, "OMTrade's mission is to break down the barriers of the cryptocurrency trading world. We provide tools and insights for everyday investors to trade with confidence like professionals, without the need for years of experience."

According to the introduction, the core of OMTrade is to readjust the interests of traders and followers through innovative product features such as same-batch trading, monthly high-water settlement, and market-oriented profit sharing structure. OMTrade introduces the role of the initiator to attract trading talents and cryptocurrency investors.

OMTrade believes that many copy trading platforms currently cause a misalignment of interests between traders and followers. For example, there is a high price slippage in follower trading. Most platforms only allow followers to settle positions once a day, while the diversity of trader information or strategies is limited. These factors together hinder the participation of more professional traders and users.

So, how does OMTrade balance the profits of different participants on the copy trading platform?

Introducing the "Promoter" Role

For professional traders, they often face a choice between focusing on trading itself and spending energy on promotion. OMTrade introduces a new role between the current binary of trading leaders and followers: promoters. Essentially, promoters are talent scouts for star traders. They discover professional traders worth paying attention to, spread information to their communities, and receive a commission fee of 5%-10%.

With the help of promoters, professional traders on OM will be able to gather funds from followers who are solely focused on gaining popularity for themselves. Therefore, traders can focus on maximizing team profits without distraction.

With the power of traders, promoters, and followers, OMTrade has the potential to change the way copy trading works in Web3, giving everyone the opportunity to share cryptocurrency profits freely and fairly.

This setting is based on the concept of OMTrade, which believes that the essence of copy trading is community, and is committed to cultivating a vibrant community where retail investors can learn trading skills and cryptocurrency knowledge from professional traders, while traders can in turn benefit economically and socially from the increased assets under management (AUM) in their copy trading accounts, with the contribution of promoters.

Adjust Settlement Mechanism

According to the introduction of OMTrade, the trades of followers will be settled in batches together with the trades of the traders they follow. The followers' trades will receive the same price as the traders, thereby eliminating the common malicious front-running phenomenon that currently exists in many copy-trading platforms.

In addition, besides the daily settlement schedule, OMTrade will also introduce multiple settlement schedules for traders and followers with different risk preferences, mainly through the monthly high watermark.

Longer settlement options not only encourage traders focused on long-term investments to thrive on OMTrade, but also ensure that followers can enjoy the many benefits of longer investment periods.

Leaders in trading on OMTrade enjoy a high degree of freedom in incentive structures and data privacy. They will be able to adjust profit-sharing ratios based on different market or competitive conditions. Traders can also customize data disclosure beyond certain minimum requirements on OMTrade. As long as there are enough voluntary and informed followers registered, advanced professional traders may choose to display very limited social and receive above-average commissions from copy-traders.

In short, OMTrade hopes to create a mutually motivating platform that readjusts the different interests of followers and trading leaders, in order to welcome users and traders who have left cryptocurrency copy trading platforms due to conflicts of interest.

Interactive Trial

BlockBeats has tested the copy-trading feature of OMTrade.

On the copy trading interface, users can filter traders based on indicators such as Followers, AUM, Followers' PnL, PnL%, Abs. PnL, Win Rate, Drawdown, Avg. PnL, Avg. Holding Period, and Trading Frequency. Compared to traditional trading platforms, OMTrade offers a wider range of selectable trading indicators. Additionally, each indicator can be settled using either daily settlement or high-water mark settlement.

After selecting the trader to follow, on the follow-up trading interface, you can see that the range of follow-up amount is 10U-1 million U. Like conventional follow-up trading platforms, users can view the trader's past trading data and profit statistics, and set their own follow-up parameters.

What sets OM Trade apart from other copy trading platforms is that it displays recommended links and provides users with the ability to compare different traders. Users can compare up to three traders' trading indicators at the same time.

Currently, OM Trade is still in the testing phase and there are not many traders on the platform. The highest number of followers for a trader is 145, with a maximum profit rate of 200%. Most of the currency pairs traded by traders are Bitcoin.

Team Development and Financing Situation

Michael Lee, the founder of OM Trade, is a successful veteran trader in commodities and foreign exchange. He has won world-class awards in global trading competitions and was involved in the establishment of one of the top ten copy trading platforms in the Asia-Pacific region. In 2016, Michael began actively trading Bitcoin and officially entered the cryptocurrency industry.

After that, Michael has been an enthusiastic early investor in many top encryption projects, including some public chains ranked in the top 15 by CMC and centralized exchanges ranked in the top 3 globally; he has close connections with the major cryptocurrency founders in the United States, the European Union, Japan, South Korea, and Greater China. The Gamestop legend in 2021 and STEPN in 2022 inspired Michael to create an idea for a social copy-trading platform.

"In the long run, we hope that all users can find their tribes - their spiritual homes on OM Trade, just like many people do in their Reddit subreddits."

According to official introduction, in addition to Michael, OMTrade also has a strong technical team. The core members include Forbes' 30 under 30 serial entrepreneurs, full-stack developers who have led more than 20 Defi/NFT projects, and the main architect of the futures trading department of a top 5 ranked exchange in the world. In addition, OMTrade has obtained a cryptocurrency exchange license in Australia and appointed a compliance officer who has provided financial and crypto business services to multiple ASX-listed companies.

In order to start more smoothly, OMTrade claims to have hired many top traders. OMTrade has just hired an all-star trader who has achieved a cumulative return rate of 400% in two years on Japan's largest copy trading exchange. In addition, institutional crypto funds and trading communities such as Avalanche Alpha, Defi Long, and Helios Tech have established partnerships with OMTrade and will soon deploy their products on OMTrade.