Introduction:
Bitpanda, a well-known startup, has announced that it will split into two different companies. This is a big change in the world of fintech. Bitpanda Pro, which is the trading part of Bitpanda, will become a separate business called One Trading. One Trading will raise an amazing €30 million ($33 million) in a funding round that goes along with this change. This article goes into depth about this strategic decision, the funding round led by Peter Thiel’s Valar Ventures, and what it could mean for Bitpanda and One Trading.
Putting BitPanda into two parts is a chance to grow and specialise.
Bitpanda has become very famous as a trading app for consumers. It has millions of users and has raised a lot of money in Europe. It started out as a broker and exchange for cryptocurrencies, but it has since grown to offer stocks, ETFs, rare metals like gold, and commodities. In recent months, the company has been working closely with other fintech startups to make it easier for them to add stock and cryptocurrency trade to their own apps. It is a white-label trade partner for well-known companies like Lydia and N26. This shows how trustworthy and knowledgeable in the field.
Bitpanda also ran its own cryptocurrency exchange, Bitpanda Pro, which was also a hit. This exchange was for institutional investors who wanted to place large orders and for companies that wanted to trade using bots and APIs. But Bitpanda’s strategic choice to split its business means that Bitpanda Pro will become a separate company called One Trading. It will still let people buy and sell cryptocurrencies in the future, but only as a broker and not as an exchange. An exchange makes it easy for users to trade with each other, while a broker works as a middleman between customers and different markets.
One Trading: A Vision for Success in Advanced Retail and Institutional Trading
Joshua Barraclough, who is the CEO of Bitpanda Pro, will take on the same job at One Trading, which will help the change go smoothly. Barraclough says that when Bitpanda and Bitpanda Pro are split up, it will be possible to make a market-leading product for sophisticated retail and institutional users. The goal of this focused method and the targeted investments that go along with it is to make sure long-term success. Bitpanda will still be in business, but it won’t be an exchange or do business with institutions.
Advantages of Regulations and Strategic Alignment for Bitpanada
The move to make One Trading a separate company has a number of benefits, including making it easier for regulators to deal with Bitpanda. One Trading plans to sell derivatives, which are complicated by nature and come with a certain amount of financial risk. In the United States, the rules for crypto companies are getting stricter, and big players like Coinbase and Binance are being sued for allegedly breaking stock laws. Even though regulations are more safe in Europe right now, that could change in the future. By keeping separate from the exchange, the company protects its long-term chances and reduces the risk of legal problems.
One Trading’s Goals and Making the Market More Liquid
Compared to Binance and Coinbase, Bitpanda Pro’s cryptocurrency market doesn’t have a lot of transactions going on right now. But recent infrastructure improvements have put One Trading in a situation to increase liquidity by a lot. Joshua Barraclough wants One Trading to be a utility platform that makes it easy for big liquidity providers to trade risks. By using a membership model, One Trading hopes to provide individual traders with low fees, deep liquidity books, and a number of safety features. One Trading also wants to give more products, as long as the right controls and checks are in place, especially in the area of derivatives. The main goal is to create a regulated, institutional-grade trading tool that builds trust and gives traders new ways to trade.
Conclusion
The move by Bitpanda to split into two companies, Bitpanda and One Trading, is a big step in the company’s growth. With the help of a €30 million funding round led by Valar Ventures, One trade wants to become a major player in the world of sophisticated trade for both individuals and institutions. Bitpanda, which is now a broker, will still let people trade cryptocurrencies while putting legal compliance first. The change is expected to give both companies more focus, better strategy alignment, and a chance to do well in their own fields. Observers are excited to see what will happen to the number of transactions and the way the market works in the coming weeks as One Trading tries to become a top platform in the ever-changing world of fintech.
Frequently Asked Questions
Who is the owner of Bitpanda?
Bitpanda is owned by a group of co-founders, including Eric Demuth, Paul Klanschek, and Christian Trummer.
Are there any fees associated with using Bitpanda?
Bitpanda charges fees for its services, including trading fees and deposit/withdrawal fees. The specific fee structure can be found on their website.
Does Bitpanda surpass Binance in terms of performance?
The performance of Bitpanda and Binance can vary based on factors such as trading volume, liquidity, platform features, and user experience.
Is Bitpanda a superior choice compared to Coinbase?
The choice between Bitpanda and Coinbase depends on individual preferences, including factors such as supported cryptocurrencies, trading fees, ease of use, security measures, and regional availability.
Does Bitpanda offer competitive rates?
Bitpanda’s rates and fees vary depending on the specific services and transactions. It’s advisable to review their fee structure and compare it with other platforms to determine competitiveness.
What is the process for withdrawing funds from Bitpanda?
To withdraw funds, users typically need to log in to their account, navigate to the withdrawal section, select their preferred withdrawal method, and follow the provided instructions to complete the withdrawal process.
