There’s a vast sea of meme coins available, well beyond Dogecoin, and a new startup named Neverless aims to simplify the journey into crypto trading, particularly by enabling access to small-cap tokens. This innovative venture has been founded by three former executives from the London-based fintech powerhouse, Revolut.
Phuc To, the former global head of product at Revolut, led the company’s crypto initiatives in 2021. Meanwhile, Mikael Peydayesh was responsible for core payment systems at Revolut before transitioning to head of premium plans, and Arthur Johanet oversaw card payments briefly before leading the cryptocurrency division at Revolut.
Despite significant advancements in the onboarding process for new users by crypto exchanges, the trio believed there was still room for enhancement, leading them to collaborate on an app designed to make cryptocurrencies more user-friendly.
Neverless allows users to purchase over 400 crypto tokens directly from the app using either Apple Pay or Google Pay. In addition to well-known cryptocurrencies, the platform has chosen to provide options for meme coins and relatively obscure tokens that typically have low trading volumes.
Acquiring these small-cap tokens can pose challenges, as finding a crypto exchange that lists them may require some effort. Alternatively, users can trade tokens on decentralized exchanges, which can be bewildering for those unfamiliar with decentralized applications (dApps).
Furthermore, purchasing tokens with low trading volumes can be tricky due to price discrepancies across different trading venues, which can lead to substantial spreads between buying and selling prices. Neverless asserts that it can efficiently route trades to the most suitable platforms, ensuring users receive optimal pricing.
Another common hurdle for the average trader is the associated fees with crypto trading products. While tech-savvy users might scrutinize the fine print before making a purchase and don’t mind setting up another account, larger exchanges often leverage their market dominance to impose higher fees, particularly for instant purchases without placing market orders.
Neverless differentiates itself by not imposing fees for purchases and sales made through bank transfers, blockchain transfers, Apple Pay, and Google Pay. The startup does, however, charge a 1% fee for transactions exceeding $1,000 when using Apple Pay or Google Pay. Naturally, this could evolve as Neverless garners more users.
So, how does this startup currently generate revenue? For select cryptocurrencies (BTC, ETH, DOGE, SOL, XRP, and AVAX), Neverless earns interest that it shares with its users. The venture also provides automated trading strategies focused on high-frequency arbitrage and market-making. From these yield-generating activities, Neverless takes a portion of the profits.
The company has obtained a MiFID license, establishing it as a regulated financial entity within Europe. It will need to adhere to the forthcoming Markets in Crypto-Assets (MiCA) regulation when it is enacted in the coming weeks.
Earlier this year, the startup successfully raised $6.7 million in a seed funding round led by Lakestar and Connect Ventures, with contributions from investors such as Nordstar, Chad West, Dan Westgarth, Eamon Jubbawy, Xiao-Xiao, and David Chreng.
Compiled by Techarena.au.
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