Meet Eitan Katz — Diversifi’s CEO & Founder
Diversifi is the first tech-driven crypto asset management platform that offers financial institutions risk-mitigating and other sophisticated tools for digital currency investments.
We have interviewed our CEO and Founder, Eitan Katz, to get insights into his amazing success story — how it all started, what Diversifi is all about, future plans, and more.
So, here we go…
What was before Diversifi?
“I started programming when I was 18 — the early age of the Internet when people were only starting to adapt to it. Gradually, I switched from software development to product management and entrepreneurship, launching innovative solutions, like an early solution for online ad targeting (back in 1998), a user-friendly Bitcoin wallet (2014), a corporate startup incubator, etc.”.
What did you learn from building startups?
“Think exponentially and follow your intuition. Back in 1998, my friend and I designed a user behavior analytics solution that collected data for adaptive search and online targeting. At that time, there was no clear understanding of online advertising, and VCs we approached kept telling us that online ads had no potential and a search engine was not needed since Portals like Yahoo were good enough. Now, of course, we all understand that they were wrong. But even then I learned a valuable lesson: most people — even VCs — judge the future with the past in mind, or at the best forecast the future in a linear way. It’s like driving forward while only looking at the back mirror. Entrepreneurs need to imagine the world, trust their gut and do what they feel is right”.
Why did DeFi catch your interest?
“I’ve always had a passion for and worked with disruptive technologies. In 2014, when Bitcoin was growing in popularity, I started experimenting with it. As a user and a developer, I understood that it left much space for improvement — the early bitcoin wallets were neither user-friendly nor secure. So we built our Bitcoin wallet — designed for the everyday user, addressing the relevant risks by providing key encryption and backup features.
Since that time, decentralized finance has improved greatly. Now, this is no longer just for hackers, the tech-savvy, or speculators. More and more solid, interesting solutions are being built. Very soon, traditional finance will use it too — every day we hear of funds, “regular” family offices, even corporates, hedge funds, and banks that are all looking to leverage the advantages of this new asset class and the derived DeFi products”.
What is the idea of the Diversifi project?
“When we look at the traditional finance “toolbox”, we find sophisticated tools: hedging, structured products, derivatives, fixed income, etc. There are instruments to protect and leverage every possible scenario. When we look at what’s available for the same investors in the crypto space, the picture is pretty dire. It’s true that we see a lot of innovation in DeFi, but most of these tools are not liquid enough, they’re not battle-tested, and their compliance is questionable.
Enter Diversifi: we’re building the platform for sophisticated investors. We’re implementing tech-driven financial instruments and investment strategies so they can invest in a secure and regulation-compliant way. The platform includes, for instance, a set of hedging tools that minimize the investment risks while optimizing profit opportunities.
We develop proprietary financial instruments with the help of a team of leading economists and blockchain experts from academia.
It is a unique approach as Diversifi fills the gap of large-scale adoption and acts as a bridge between traditional finance and decentralized finance”.
What partners are you interested in?
“We’re looking for traditional finance entities, willing to extend their crypto assets exposure. In addition, crypto and hedge funds that are holding crypto assets and would like to manage their risk and hedge their positions would be great candidates as well. Finally, funds and banks that are looking to expand their offering and leverage Machine Learning and deep technology make a perfect fit too”.
Tell us about Diversifi’s future plans?
“We have a packed roadmap. Mostly, it’s about developing and adding more innovative investment instruments to the platform. Recently, we launched the Protected BTC instrument — a structured product that caps the drawdown of Bitcoin investment. It will soon be followed by Protected ETH. We’re also releasing our Green Bitcoin product that offsets the carbon offset of any crypto asset, portfolio, or wallet.
In the near future, we’re going to release several smart hedging strategies and embed insurance on deposits. There are a few other fascinating instruments that will be attractive and unique, but let’s keep those as surprises”.