John Iadeluca is the founder of Banz Capital, a Hedge fund, Offering high net worth investors exceptional risk-adjusted returns from a managed portfolio. John will share with us in this interview, the services Banz Capital will be providing and the opportunities in Blockchain, Cryptocurrency and Trading.
- Please tell us your name and about yourself. How did you get started with trading?
My name is John Iadeluca. I got involved with trading stocks and forex when I was around 12. I learned how to program when I was 11 and financial programming really interested me which the entirety of Wall Street seems to be shifting towards as of recently. When I was 17 I started working with blockchain development and saw the potential with trading crypto algorithmically after I built a Bitcoin faucet. I was never really good at math, but when I learned about trading quantitatively I couldn’t stop learning about it because I found it so interesting. Since cryptos are entirely digitized assets, they can be maneuvered and worked with differently than any other asset like traditional commodities. That’s how I got started.
- What is Banz Capital?
Banz is a digital asset based hedge fund, that focuses on quantitative trading, arbitrage, and ICO projects. The quantitative part speaks to the fact that digital assets can be analyzed in different ways than stocks because of their nature. Exchanges that you trade cryptos on have interactive API’s, that if you know how to work with, can yield analytical viewpoints. The arbitrage emphasis is done between exchanges. In the early 2000s, high frequency traders would be able to purchase shares of a stock on one ECN and sell on another. We took that concept and applied it to crypto. Since cryptos function through exchanges, you can do the exact same thing, replacing ECN with an exchange. Buy on one exchange for $1 and sell on another for $1.10. That’s 10% profit. Of course, doing this manually is quite difficult. Utilizing bots for this however, is a different story. I’ve been working with ICO’s for over a year now for a firm on Wall Street and it’s without a doubt the future of crowdfunding and fundraising. That’s the other emphasis that Banz focuses on. They’re new opportunities. We form partnerships with ICO’s to enable large scale investments. We don’t invest in an ICO without proper analysis.
- Would you like to tell us about your investment portfolio?
Sure, we allocate 70% to quantitative trading arbitrage, and 30% for newer projects. Our biggest play recently was Universa, which we developed a case study for. They launched their blockchain’s mainnet version last week, and saw 500% increase from the original price. I got in at $0.01. I think it’s at about $0.05 at the moment, despite the entire market losing more than half its value.