Hi there hunters,

We’re Taylor, Colton, and Jason and we’ve been building Hedgehog.app - a robo-adviser for cryptocurrency that is registered and examined by the SEC*. We're officially releasing our v2 mobile apps on iOS and Android!

Hedgehog automatically manages diversified portfolios of cryptocurrency for retail and institutional investors, and tracks your holdings wherever they are: Cefi or Defi.

The cryptocurrency market is still quite new, and following price movements in a 24/7 market with thousands of actively traded assets can be overwhelming. While 55% of cryptocurrency investors say that crypto was their first investment, two thirds of them have three or more exchange accounts in order to get access to the long tail of tokens. There aren’t many great tools for the average investor, or even institutions, to compliantly and automatically orchestrate a complex portfolio of currencies across multiple venues. The technological, regulatory, and conceptual barriers to entry keep many prospective investors from participating.

From our time at Acorns, we knew one of the best ways to manage our investments was to design an index using Modern Portfolio Theory, and to regularly dollar-cost average into your portfolio over time. But there aren’t any tools that support that for cryptocurrencies, so when we started personally investing in cryptocurrency in 2017, we built our portfolios using spreadsheets and web-scrapers. If you’ve ever considered using excel to rebalance your portfolio...just don’t.

Rebalancing became an insane undertaking, often taking a few days to manage and update all our wallets and ledgers, handle the ins and outs of public keys, and place our trades. With no clear regulations and constantly changing tax-rules, simply managing a crypto portfolio was becoming a full-time job. So we decided to actually make it our full-time job, and Hedgehog was born.

We’ve spent the last couple years building a secure and compliant suite of tools for our clients to invest in digital assets and automatically rebalance their crypto portfolio wherever they hold currency. While currently we’re Cefi only for management, you can still monitor and respond to movements in your on-chain holdings on any exchange you’ve connected to Hedgehog.

Unique to us, when you invest in a Stack you own the assets directly, and Hedgehog simply manages the assets on your behalf. You can deposit and withdraw any supported currency, including US dollars, whenever you like. We’re even in the process of developing self-custody and co-custody solutions, but in the meantime, we've integrated with Gemini for secure custody. Separately managed accounts are logistically important, because it helps us to comply with the SEC’s Custody Rule, while also preventing the securitization of the underlying assets, which are currently treated as commodities by US regulators–although the SEC wants to change that.

The default Stack investment strategy is based on market capitalization. Each crypto asset is ranked by the total value of its circulating supply, and Hedgehog allocates the funds that you invest in a Stack proportionally according to that ranking. Basically, it works similar to an S&P 500 index fund — although a Stack is not an index fund. How are they different? You own each of the assets in your Stack directly, versus owning shares of a mutual fund or unit investment trust.

For example, you can withdraw BTC from a Stack, sending it to the external wallet of your choice, whereas you can't withdraw Apple stock from an index fund. The fund owns the stock, and you own a piece of the fund. By contrast, our Stacks don't have that middle layer — you own every single cryptocurrency in the Stack. Hedgehog manages the Stack on your behalf, through an individual account that legally belongs to you.

If you want to invest more or less into a particular cryptocurrency, you can customize the allocation percentage. In the near future, we are working to offer additional allocation strategies alongside the market cap option, such as daily active addresses or gross transaction volume. Imagine if you could have invested in Facebook, Myspace, and Friendster based on Daily Active Users and you’ll get the idea.

Hedgehog automatically rebalances each Stack according to your settings and the fluctuations of the market. By default, the app rebalances each portfolio once a month no matter what; otherwise the transaction cadence will be dependent on your deposit schedule and your specified error tolerance, which counteracts unexpected volatility that unbalances your portfolio. When crypto prices change, your holdings may no longer be aligned with the market — that can trigger a rebalance.

We would love for any of you to try out our app which can be found in both Google Play and App Store. We know the onboarding process can be tedious but much of it is required for us to be compliant with our SEC registration. The app asks you to subscribe for $6/month or $60/year, but the first two weeks are free. We would love to hear from any and all of you, especially regarding our onboarding flow in the app and how intuitive/confusing you might find different parts of the UI/UX. We can most easily be reached at our Discord link below or through email at [email protected].

https://discord.gg/MgnHHvCNX2

*Being a SEC registered firm does not imply a certain level of skill or training.

The above material and content should not be considered to be a recommendation to invest in any Stack or individual digital asset. Investing in digital assets or cryptocurrency (collectively “digital assets”) is highly speculative and volatile, and digital assets are only suitable for investors who are willing to bear the risk of loss and experience sharp drawdowns.

The materials available are educational only and not investment or tax advice.

Past performance does not guarantee future results and the likelihood of investment outcomes are hypothetical in nature. Any past performance in the above material of digital assets do not represent the performance of any Hedgehog’s customer and does not reflect the deduction of any Hedgehog fees or fees charged by exchanges used to process transactions.

Investments in digital assets are: Not FDIC or SIPC Insured • Not Bank Guaranteed • May Lose Value

Before investing, consider your investment objectives and Hedgehog’s fees and expenses