Gate Institutional AMA Series 22 - Moonbit: Decoding Cryptocurrency Investments

2024-04-08, 03:56

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![](https://gimg2.gateimg.com/image/1712547977363872737blog1.jpeg)
**Gate Institutional Department hosted an Ask-Me-Anything session with Alexander Thomsen, Founder of Moonbit.ai, on Gate Group YouTube channel: https://www.youtube.com/watch?v=UGNa51RY-wg&list=PLE_x6o4N6eXY28rgJA0RRQLadTq-qDbrS&index=11
**
**Follow Moonbit.ai on social media
Official Website: https://www.moonbit.ai/
Twitter: https://twitter.com/Moonbitai
Linkedin: https://www.Linkedin.com/company/moonbit/
Instagram: https://www.instagram.com/moonbit.ai/**

**Guest**
![](https://gimg2.gateimg.com/image/1712547977642556024blog2.jpeg)
Alexander Thomsen, Founder of Moonbit.ai

Welcome to the 22nd episode of our Gate Institutional AMA series with special guest Alexander Thomsen, Founder of Moonbit.ai. Dive into the fascinating world of Moonbit as Alexander unveils the platform's journey, innovative strategies, and the future landscape of cryptocurrency investing. Explore Alexander's background, the inception of Moonbit, and the distinctive approach the platform takes to revolutionize asset management in the crypto space. Gain insights into the simplicity of Moonbit, tailored for beginners, and explore its unique features that set it apart from other investment platforms. Discover how Moonbit adeptly mitigates risks amidst market fluctuations and get an exclusive glimpse into their dynamic partnership with Gate.io. Don't miss out on the valuable takeaways covering smart investment plans and the crucial skill of navigating both bull and bear markets.

## Introduction 
**Gokay (Host)**: Hello, everyone! This is Gokay from Gate.io Institutional Services. Welcome back to our Gate Institutional AMA series and today marks the 22nd episode of our fascinating AMA. I'm thrilled to introduce the company joining us today - Moonbit.ai. And our special guest is Alexander Thomsen, Founder of Moonbit.ai. Thank you, Alexander, for being a part of our AMA series. It's a pleasure to have you here. How are you feeling today?
**Alexander**: Thanks for having me! I'm feeling great and I'm very excited to share more about myself and Moonbit.
**Gokay**: That's great! Alexander, we are excited to hear your valuable insights and expertise on Moonbit and the cryptocurrency trading world. So, without further ado, let's dive into the discussion.

**Q1: So, tell us a little about yourself. Who is Alexander Thomsen and what's your background?
Alexander**: Okay, that could be a long story. So I'm half Danish, half Russian, although I don't really tell people I'm Russian anymore. But in any case, I grew up in Denmark. I spent most of my years there and then I moved to the UK where I did my university in the UK in terms of my background, I spent the last 10 years in wealth technology and wealth management. I initially started in South Korea and Japan where I help create one of the first robot vices in Korea. And then from Korea, I moved on to Japan for the same company where I became the head of research, making sure that we built different investment strategies using ETFs. Then from there onwards, I moved to Germany where I did product management, so I was actually managing the Product Owner of the web and mobile education for Scalable Capital and what is with one of the biggest wealth management services in Europe, now they do a lot of different things from wealth management to broker to savings account, so I was doing all of that from Germany . Then after that, I did some venture building as well and now I'm in Moonbit.ai.

**Q2: How did Moonbit come to life and how is it positioned in the market?
Alexander**: So we've been officially around for now one and a half years, but actually, the story about Moonbit is much longer than that. So, I started investing in crypto back in 2017. So, you could say I missed out on around $30,000, and pretty much within two months, it was like $600,000. So, I was like, "Wow, I made a lot of money in a short time." The problem was that I did not cash out. So, after two months, I only had $15,000 left. It was such a roller coaster, right? I went from feeling rich to losing everything, and it was such an emotional journey for me. Seeing how I became rich and lost all my money in a matter of months, I was like, "What? I gotta do something about this, right?" Because it was such an emotional experience.
So, I started experimenting with different investment strategies. Technically, how could I build different crypto portfolios? When the next Bull market started, I had created my own portfolio strategies. Actually, I also invested a lot of my money in fund managers, crypto fund managers. What happened was that during the Bull Run in 2021, everyone made money, and I was happy and everything. But then when the bear market started and the LUNA crash happened, I lost a lot of money because of the fund managers. But the interesting thing was that my own strategy did not lose money. So, I was like, "What? Why did I not just do everything with my own strategy?" And that's how Moonbit started. I wanted to offer everyone tactical allocations, like what we do at Moonbit, where essentially we ride the bull market, and when the bear market comes, we actually take out the money and protect your wealth creation. And that's the whole point, right? Buying and selling different cryptocurrencies is very difficult, but with our strategies, we take care of all of that by creating these different risk profiling question strategies.

**Q3: Can you explain Moonbit's business model and the services you offer to your clients in the cryptocurrency industry?
Alexander**: Sure. I mean, we're software as a service, so we provide a sub_script_ion model to the clients. We have a free plan, so if you invest less than $150, it is completely free to try us out. However, we also offer a monthly and annual sub_script_ion. The monthly sub_script_ion is $12 a month; that's pretty much the sub_script_ion plans we have, and it's very simple, actually.
So, all you've got to do is sign up, connect a preferred exchange account like Gate.io, and then you just have to fill out a questionnaire. Based on this questionnaire, we establish your risk profile, so we know what kind of recommendations to give you. After that, all you've got to do is select the amount you want to invest, and then you can sit back and relax. Our strategy will take care of everything for you. It will invest for you, rebalance for you. You don't have to worry about what to buy or what to sell; we take care of all of this.

**Q4: Could you provide an overview of the functionality and operation of the Moonbit asset management platform and how it implements trading strategies?
Alexande**r: Sure. So the investment strategy is essentially how it works. I mean, we have multiple steps involved. First of all, we test different hypotheses, right? So we see what kind of unchain data works, what kind of technical price data is involved to make buy and sell signals. So we do some backtesting, we do some simulation for a while, we see what works, what doesn't work, and then we combine different factors until we have some sort of strategy logic that makes sense and is worth testing. After we've done the simulation, we then do some paper trading, which means that we simulate in live how it would perform in the current market. If this does well, we then do internal testing with real money, and if that is doing well, we then launch it to the client. So there are a lot of steps involved. Let me go through to actually bring the product to the client because you want to make sure it's doing a good job, of course, protecting the client's money. That's pretty much the strategy itself. Operationally, how it works is similar to other companies where you connect your API with Moonbit, and then we trade by your account like a Gate account. So all we can do is take your selected user tier, select the crypto, buy and sell different cryptocurrencies, and that's all we can do. We cannot do any deposits, we cannot do any withdrawals. All we have access to is trading the specific amount that you've told us to trade.

**Q5: In the face of unexpected market fluctuations, how does Moonbit mitigate risk and maintain stability in its asset management strategies?
Alexander**: So risk mitigation is probably one of our key focuses. But that's from my own experience: That was the most painful learning experience I had and how traumatizing it was. So, in our portfolio, we have different risk protection mechanisms. For example, we have a strategy called Protective Asset Allocation, the PA model, and this one relies on <a href="/th/price/bitcoin-btc" target="_blank" class="blog_inner_link">Bitcoin</a> and <a href="/th/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum price</a> momentum to decide essentially when the price momentum gets weak. We then move some of the money into <a href="/th/price/tether-usdt" target="_blank" class="blog_inner_link">Tether</a> USD, and this protects the client essentially from downside risk. If you look at our performance in the past during the bear market, we did not lose much money because we moved into stable coin during these periods of time. Then we also have a VWAP reversion strategy, which is a bit different, where we rely on open interest and on-chain volume to make a decision when to move into stable coin protection. So, each strategy has slightly different risk protection but is a core part of our product to make sure that, again, we protect the money that the client has been making with us.

**Q6: For individuals with varying levels of technical expertise, how accessible is it for beginners to leverage the Moonbit platform for strategic asset management?
Alexander**: I think it's perfect for beginners because it's super simple. So, I'm pretty sure within one minute you can be invested with Moonbit. It's purposely made for beginners or people who don't have the time or the knowledge to invest in cryptocurrencies. The platform is very streamlined – you just sign up, complete a risk profile questionnaire, connect the exchange, and then make an investment. The whole process is designed so that you don't have to worry about which crypto to buy or sell, and you don't have to monitor the market. All of these tasks, which you would typically handle if you were doing it yourself, are taken care of with our easy-to-use portfolios.
**Gokay**: And what are the expected returns, for example, if I join with $200 and what should I expect from it?
**Alexander**: You should expect a 1000%. No, I mean, it just depends on the strategy, and the payout is contingent on your risk profile, right? So, if you're a conservative person, you will probably have a portfolio that follows the protective asset location model. In this model, the focus is mostly on Bitcoin and <a href="/th/price/ethereum-eth" target="_blank" class="blog_inner_link">Ethereum</a> allocation, based on historical trends and expectations for the future. I mean, that portfolio will likely yield, I don't know, but maybe 3 to 5 times in the coming years, right? However, if you have a higher risk profile, like a more adventurous strategy, you could probably expect a 10 to 15 times return in maybe the next 1 to 2 years. So, it just depends on the strategy. And most importantly, what kind of risk profile do you have? What is your risk appetite? Do you think about the level of volatility you can accept?
Gokay: Thanks for the great answer. Because there is always time in this sector, like there are too many gains, but it's important to actually keep your gains, not lose them. And this is really important. Even 3x, 4x, this is like they end up together, and it really gives us significant earnings from this.

**Q7: What makes Moonbit different from other investment platforms when it comes to making and using smart investment plans?
Alexander**: So, I think differently from other platforms and what is out there in the market. I think on one spectrum we have the do-it-yourself, right? Where you have, well, you have Gate.io and other exchanges where you can do all the trading yourself, and you have to make the decision of what to buy and what to sell. On the other side, you have more of the trading bots, right? So, the trading bots are obviously automated, but you still have to think a little bit about which crypto you want to use for the trading bot. Sometimes, you may have to make the long and short decision for the trading. But the trading bot still has a lot of configuration and still a lot of friction, I think, to set up a trading bot successfully. Actually, many of these trading bots often focus on typical high-frequency trading, all focusing on the same indicators, like RSI, MSD, EMA — basic technical price indicators.
Now, on the Moonbit side, we're quite, I would say, different because we focus mostly on tactical allocation. This means that it's more of a slow-moving portfolio change, so the PA model only rebalances once a week. The B4 promotion is definitely faster, but it's not like high-frequency trading. Also, we use a lot of different indicators. So, we look at technical price indicators, we look at on-chain data, we look at macro data, and we consider a lot of different factors involved with portfolios. You don't have to worry about specific cryptocurrencies to focus on, and you don't have to worry about whether to go long or short. We take care of all of this. We don't just spot trading bot; everything is done within Moonbit.

**Q8: How has Moonbit's experience been so far working with Gate.io? 
Alexander**: Working with Gate.io has been really great. I think you guys — I mean, of course, talking to you right now, but it's you guys who have been really engaging, very proactive in thinking about our partnership. Whenever we had questions, like our developers asking about integration, you guys were there right away. So honestly, it's been one of the easiest partnerships we've had so far. I'm very happy to work together with Gate.
Gokay: Great to hear your feedback, and I hope our relationship and partnership will continue. I trust that everyone, including all the users, will benefit from it.

**Q9: Can you provide any insights into the future direction or plans of Moonbit?
Alexander**: Right now, we're going to keep improving the strategies we have. So, we're going to keep making them better, and we will also expand the strategies that we have. Currently, we have different risk profiling strategies, but we're going to add another strategy very soon. So that's the first thing: how to make our existing product better and improve our value proposition.
Looking ahead, I think we're going to explore a situation where we might delve into staking, perhaps providing a service where we aggregate to offer you the best staking options in the market. That is one option. Additionally, we're looking into modifying work so you still have full control over the wallet, but we integrate some sort of DeFi integration — that's another aspect we're exploring.

**Q10: What specific details or insights can users gain by exploring the information available on Moonbit's website?
Alexander**: Yes, our website is full of information. We have a section on Moonbit that delves into the details of many things we do. We also have a learning section. Additionally, we offer various tools for beginners if you want to understand your risk level. There's a tool where you input your existing cryptocurrencies, and we provide you with a risk score based on your current portfolio. We incorporate a lot of gamification into that as well. Ideally, we aim to make it engaging.
Our website contains extensive details about our strategy too. We have dedicated pages explaining precisely how each strategy is working. We've even created a YouTube video on this to share as much information as possible. We strive to be transparent in how we develop our strategies.

**Q11: And finally, what is the most important point you want our audience to take away from today's AMA session?
Alexander**: I think from my own experience, it's like this: during a bull market, everyone is a professional investor, and everyone seems to be doing a good job; everyone thinks they are the best investor. The thing is, when the bear market starts or a correction begins, you gotta make sure you have a game plan – how are you gonna get out of the market? Are you gonna take profits? You're not gonna just wait. So, that's the most important thing; have a game plan for that.
**Gokay**: Definitely. And this is great because people earn a lot of money in the bull market because basically, in every project, everything you do, you have some gains. But it's really important after you're able to keep it, and at that time, maybe you need to improve yourself or you need to work with professionals, and that is where Moonbit will assist you.

## Ending
**Gokay**: Alexander, thank you for your time! It was great talking to you and learning all the details. If you want to know more, don't hesitate to contact Moonbit and check out their website. 
And before we end our session, Alexander, would you like to add anything else? 
**Alexander**: I've been through two bull runs and two bear markets, and I think we're about to start the next bull market very soon. So buckle up, enjoy the ride, and have a good time.
**Gokay**: That's right. Thank you, Alexander! Thanks to everyone who watches our AMA series. Follow us on social media, for more information write to our key account managers.

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<div>Author:** Moonbit.ai**, Gate.io Researcher
<div class="info-tips">\*This article represents only the views of the researcher and does not constitute any investment suggestions.
<div>\*Gate.io reserves all rights to this article. Reposting of the article will be permitted provided Gate.io is referenced. In all cases, legal action will be taken due to copyright infringement.
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