In this video Frank Steffen, founder & managing director at Lendary.net (https://www.lendary.net/), trainer and also speaker, will be our guest. Lendary develop a platform to provide short-term loans (leverage trading) for cryptotraders. This project is a way to create passive income (in USD) with rates significantly higher than in banks.
In this video we will about the next topics:
- How did Frank Steffen started Lendary?
- What Lendary is?
- What is Lendary’s business model?
- How to build a bridge between traditional investors and modern tech solutions?
- How COVID-19 impacted leverage trading business and fundrising?
- How to increase trust of users?
- When to think about an exit and strategic partnerships?
- Competition with classical banks
- How to reach organic growth? How to explain how product work like?
- How to beat banks and provide higher interest rates?
- Building a team: remote work or offline teams, freelancers or full-time employees?
- Frank shares an advice how to choose a niche for your product
Key dialogue insights:
- When creating a startup it is very important to solve your own problem first, which you understand and know well. This saves your time and resources instead of exploring unfamiliar niches. In such case you can immediately see what solutions are available in the market and what are missing.
- Loans to trade on the crypt exchange are a safe way to profit, as a trader cannot disappear with your money. Remarkably, Lendary works with USD, so you don’t have to own a highly volatile cryptocurrency. All conversions are done automatically via API.
- Businesses related to the cryptocurrency are growing all over the world. More and more startups are trying to create a connection between virtual money and the real world (shopping, loans, etc.).
- In a pandemic situation, when markets are changing around the world, it is very difficult to make any forecasts. Spend resources with care and don’t build long-term strategies.
- It’s early to think about exit strategies at the beginning. If you have found a product-market-fit, you will have a lot of work to do to improve the project (customer journey, improved functionality, etc.).
- Fintech startups should not be afraid of competing with banks in areas which are not in the main focus of their activities (such as Lendary). It is more likely that an interesting startup will become a partner for the bank than its competitor.
- Because Lendary provides very new and unusual service for traditional investors, they have to do a lot of educational work about the project. However, lack of a large number of direct competitors allows the project to grow organically, without investing in marketing.
- Lendary’s competitors are traditional banks and savings funds. This is logical because the problem of saving and multiplication of savings exists and is somehow being solved today. The key difference is that Lendary has higher interest rates on investments with good liquidity. One of the additional advantages is a user-friendly interface for portfolio tracking.
- If you solve a problem, you need to be sure that there are no twenty similar solutions. For example, if you open an investment fund, it will be another fund among many others.If you are not very different from your competitors, who have long experience and impressive success, you may have difficulty in growth. Lendary, on the other hand, started by solving their own problem and then realized that it might be interesting for other users.
- Traditional guest advice: To find creative solutions, it is important to work on your mindset, to observe what is happening around you, to communicate with people about existing problems (not necessarily in the area in which you now have expertise), to notice some difficulties in daily tasks and try to solve them in a new way.