An alternative to blindly following the actions of emotional traders is to instead partake in a more gamified version of copy trading.
An upcoming crypto trading platform called is introducing a novel, gamified version of crypto trading called “”, which puts more of an onus on professional traders to succeed.
One of the unspoken dangers of copy trading is the razor thin margins involved in many trades. Because copiers have to pay fees on every trade copied, it means they could end up losing money if the trader’s profit margins are too thin. The individual trader who is making the calls won’t care that much, because he also receives the additional fees paid by his followers whenever they copy their trades. For them, it’s really just a second passive income stream, meaning they’re under less pressure to make the right calls every time.
With its token baskets, Mosaic does away with this risk. It’s really just an alternative take on the copy trading idea, where successful and profitable traders can create a basket of assets that’s managed as a single asset. Within each basket is a pool of crypto assets that can be changed at any time, based on the creator’s whims.
Investing in a token basket is more akin to following a traditional index fund. The main difference is that, for the investors who create the token baskets, their income is not guaranteed. Instead, they’ll only be able to collect fees from others who invest in the basket if it actually generates those users a decent profit. If the value of the token basket doesn’t appreciate, they don’t earn any official fees.
This kind of incentivized copy trading experience puts greater pressure on traders to perform consistently, while investors run less of a risk, as they won’t have to pay any fees if the basket under-performs.
Although it’s not yet battle-tested, Mosaic’s enhanced copy trading baskets have attracted some solid support from the Polkadot blockchain community. In August, Mosaic successfully won the auction to become a fully-fledged member of its ecosystem.
