Em Conversa looks to uncover the secrets in Latin America (LatAm) that have caused the fintech market to boom, from being worth less than US$50million in 2016, to US$2.1billion in 2022.
Brazil has always been open to new technologies, allowing it to prosper when one, like Pix, takes off. Understanding what technologies are paving the way for the future of the country, we sat down with Lendel Lucas, CEO at iVi Crypto, Crypto Quant Fund Management.
Can you tell me more about the company and your role within it?
I’m one of the founders and the CEO of the company. iVi Technologies operates at the intersection of finance and technology. We are a quantitative investment company with proprietary technologies initially developed by one of our founders, a PhD in computer science with expertise in applied mathematics. These technologies have since been continuously enhanced and refined by a diverse, multidisciplinary team spanning technology, artificial intelligence (AI), business, finance, and blockchain.
Established with the primary objective of integrating advanced technological solutions into traditional investment practices, the company currently has three quant funds (Brazilian equities, crypto and tech US (Nasdaq).
We also operate a startup company that has developed an app aimed at democratising our quant strategies, which are optimised by AI.
These strategies were previously only accessible to qualified and professional investors, but our app is changing that. Initially launched in Brazil, we have a roadmap to expand to Europe and the US. The app provides intelligent investment strategies powered by our technology, handling both the initial allocation and monthly rebalancing, making the entire investment process accessible and user-friendly for everyone.
What are some crypto and AI trends we’re seeing in Brazil?
Currently, Brazil boasts a higher number of crypto investors compared to the traditional market, with this figure continually on the rise. According to Receita Federal – the Brazilian equivalent to the IRS – the number of people investing in cryptocurrencies grew 174 per cent between July 2022 and July 2023.
Brazilians also exhibit a keen enthusiasm for embracing new technologies, creating a compelling case for the integration of AI in the realm of investments. With the expectations of the ETF launch, the market is optimistic for 2024 and this news is being interpreted as the gateway for the crypto adoption by the traditional market. Altcoins are expected to rise moderately and Bitcoin’s dominance continues to form new highs for the year.
For the next few months, we believe that this movement will continue, with all eyes focused on Bitcoin.
What is iVi technologies doing to improve the AI and crypto sectors in Brazil and LatAm?
We introduced the sole quantitative fund incorporating AI technology in both the stocks and crypto market in Brazil, establishing ourselves as trailblazers in this industry. Many people want to invest in crypto, but don’t have the ability or the time to constantly keep track of the market in order to know what’s the best portfolio for them.
That’s one of the main reasons why people are afraid to invest – they don’t know where to start.
With our algorithms, anyone can venture into this industry with the peace of mind that they are not making a bad deal, even if they have no knowledge or experience in crypto. In a way, we are opening the doors to people who wouldn’t be investing if they didn’t have the help to select their portfolio.
How does the Brazilian AI and crypto sectors compare to that of the rest of the world?
Brazil has shown remarkable receptiveness to cryptocurrencies, including favourable legislation. Notably, it became the first country globally to launch a Bitcoin ETF. The trend of crypto adoption continues to gain momentum.
Concerning AI, while Brazil may not lead in development, it remains open to its utilisation and eager to explore its possibilities. Unlike countries like Australia and the United States, Brazil has few cryptocurrency ATMs. However, we are seeing a slight increase, whereas in 2020 there were none, now we have 25. Last year, a law with guidelines for regulating the provision of crypto in Brazil was passed, giving an extra security and level of reliability to the sector.
What are some unique challenges associated with the region/country in both the AI and crypto space?
In both the AI and crypto space, the unique challenges faced by Brazil are rooted in the novelty of these technologies.
Despite the growing enthusiasm for cryptocurrencies and AI tools, significant adoption barriers exist. To overcome these challenges, active efforts must be made to disseminate knowledge and information. This includes educating the public about the benefits and potential risks associated with AI and crypto. It also involves addressing concerns related to security and privacy and fostering a supportive regulatory environment.
By enhancing awareness and understanding, regions and countries can create an environment where individuals are not only well-informed but also more willing to embrace these transformative technologies. Thus unleashing their full potential for economic growth and innovation.
Plans for the future
Our future plans are centred around an ambitious roadmap and growth strategy. We are set to introduce a new product, harnessing the power of our AI quant technology, not only in Brazil but also in the United States and Europe.
This expansion will encompass both the crypto and traditional investment sectors, offering a broader range of opportunities for investors. For QINV, the next two years hold exciting prospects, as we aim to strengthen our partnerships with the world’s largest exchanges.
Our ultimate goal is to become the leading investment app of its kind on a global scale, further solidifying our presence and reputation in the financial technology sector. This strategic vision reflects our commitment to innovation, excellence, and making advanced investment strategies accessible to a wider audience.