Snowball is a startup that has created a “smart crypto investment automation” platform.” For the most part, it allows for seamless transactions with just a few clicks. And interestingly enough, you can purchase Snowball Money stock as well. The reason is that the company is raising capital on Republic through a crowdfunding campaign.
The main premise of the company is that money is quickly going digital. Just some of the reasons for this include:
- Rock-bottom interest rates.
- Global financial instability, which has been highlighted with the novel coronavirus, OPEC wars and protectionism.
- Skyrocketing fiscal spending across the globe.
- The emergence of high inflation in countries like South Sudan, Iran, Russia and Venezuela.
So then with Snowball, you can better manage your portfolios for an assortment of crypto assets like Bitcoin, Bitcoin Cash, Ethereum and Litecoin.
How It Works
To get started, you can fund the account by the two following methods:
- Depositing Ethereum or depositing an ERC-20 token or
- Linking Snowball to your banking accounts via ACH transactions.
Then you can buy and sell cryptocurrencies, which are placed in cold storage. You also have the option to liquidate or switch the portfolios at any time. There also is a high-interest account for all the digital investments.
Note that Snowball is not just about sophisticated algorithms and finance. The company has also had a major focus on the design of the app. Actually, Snowball says that it is “grandmother tested.”
The company has a top-notch design team who have worked at firms like 23andMe, Google, Snap (NYSE:SNAP) and Palantir. Consider that Snowball was nominated for an Apple Design award.
Now when it comes to Snowball Money stock, it is encouraging that the company has been showing momentum. There are over 220,000 verified email addresses on the waitlist and more than 10,000 downloads (the app is in a public beta). Snowball has also been snagging some partnerships, such as with Monarch Wallet (the firm has more than 400,000 users) and Artsquare.io (for artwork investments) and Andra Capital (for access to venture capital opportunities).
The business model involves a fee of up to 1.5% on in-app swaps between cryptocurrencies and a charge of 10% to 20% for the staking rewards. Snowball also forecasts revenues of $1.4 million within the next 12 months and to be at a breakeven level.
Bottom Line on Snowball Money Stock
Investing in cryptocurrencies can be complicated, tedious and sometimes insecure. Thus, there is an opportunity for a startup like Snowball. Consider that there is no need to open up a crypto wallet or implement security features. The focus for Snowball is to provide an end-to-end experience.
Snowball has actually raised $1.1 million in a prior angel round. Some of the investors include John Dillon (CEO of Aerospike), Keven Lin (co-founder and COO of Twitch) and Sam Zaid (CEO of Getround).
As for the crowdfunding round, the company has raised more than $143,000 from nearly 500 investors and the valuation is $6 million. The investment is structured as a SAFE (Simple Agreement for Future Equity) instrument, which means that you do not receive equity until a “trigger event.” This would be something like an acquisition or initial public offering.
The investment also includes various perks. For example, if you invest $1,000, then you get $10 in Ethereum deposited in your Snowball account , exclusive access to the VIP beta for the app, and a shout-out on the company’s Instagram account.
But of course, when it comes to investing in early-stage companies, there are considerable risks. Many startups simply fail or stall out. Besides, the cryptocurrency market is highly volatile as well.
In other words, before investing in Snowball Money stock, you should do your own research.
Tom Taulli (@ttaulli) is an advisor and author of various books and online courses about technology, including Artificial Intelligence Basics, The Robotic Process Automation Handbook and Learn Python Super Fast. He is also the founder of WebIPO, which was one of the first platforms for public offerings during the 1990s. As of this writing, he did not hold a position in any of the aforementioned securities.