Stack releases crypto trading app aimed at teens and parents
The firm is aiming to provide catchy crypto education content that provides a better alternative to "fin-influencers" on TikTok.
Crypto-curious teens may be able to try their hand at real crypto trading after the launch of the education and trading app Stack — aimed at teaching under 18s how to trade and hold crypto.
The crypto trading app was launched by mobile software firm Stack on Thursday, with the aim of offering young crypto enthusiasts better educational alternatives to what they may find from crypto influencers on social media platforms such as Reddit and TikTok.
The app will of course comes with parental controls, and the accounts on Stack are regulated under the Uniform Transfers to Minors Act, allowing parents and legal guardians to maintain ownership of the account and assets until their teenager turns 18.
In a Thursday announcement, Stack CEO Will Rush highlighted that there is a strong demand from Gen Z to learn about crypto, but the educational content they consume online is usually via social media or blog posts that arguably lack substance.
The CEO states that Stack is trying to fill a gap in the market by "building content to specifically resonate with teens":
"All of our research about Gen Z demonstrates that they are self-learners but also that they follow trends that evolve in minutes instead of days, months, or years. This means that too often, TikTok or Reddit is their financial advisor."
Expanding on those comments was fintech news website TechCrunch, with Rush stating that "we need a big lift to make it relevant to teenagers and are looking at educational topics like NFTs, Metaverse, and web3."
"We aim to be the trusted account for democratizing investing for young people," he said.
Alongside educational crypto content, Stack offers buying, selling, and holding services for seven digital assets including Bitcoin (BTC), Ether (ETH), Cardano (ADA), Solana (SOL), USD Coin (USDC), Litecoin (LTC) and Polygon (MATIC).
Instead of charging trading fees, the crypto exchange app uses a $3.00 per month subscription fee.
The crypto app will also not allow off-platform transfers at this stage, with Rush stating this enables the firm to “eliminate up to 98% of all crypto fraud and scams” that occurs in the sector.
The company has also suggested that this will encourage teens to become long-term holders rather than putting their focus on wild day-trading speculation. The app is available on Android and Apple devices, with users 13 and over being able to sign up.
Alongside the app launch, the firm also revealed that it has raised $2.7 million worth of funding from the Madrona Venture Group.
The VC firm highlighted in a Thursday blog post that the company is tapping into a growing but underserved market:
"Gen Z is considered an entrepreneurial generation. As a result, many of them are crypto-curious. Coinbase and FTX have served as a consumer entry point to crypto through crypto trading and educational content. However, they are inaccessible to the minors — the next generation of consumers."
"The team has numerous high-school-based investment clubs around the country interested in getting into the initial rollout. We find Stack's 5,000-person wait list for the iOS or Android app impressive," Madrona added.