UK based money app Ziglu, which was created by Mark Hipperson, one of the founders of Starling Bank, and which enables customers to buy and sell a range of cryptocurrencies, has reported a doubling in the number of new customers during this year’s lockdown.
Overall, Ziglu says it believes the coronavirus crisis has accelerated growth in the retail cryptocurrency market by at least five years.
Flight to quality means investors are turning to regulated platforms
It says a combination of the coronavirus lockdown, the huge increase in the value of Bitcoin and other cryptocurrencies, and a flight to quality as people new to cryptocurrency investing look for platforms that are regulated and have the highest safety standards, has helped fuel the company’s growth. Ziglu estimates around 80% of its customers who have signed up this year are new to cryptocurrencies, and 20% have switched from competitors who are not as regulated or have such a strong focus on security.
Ziglu, which is FCA regulated and was publicly launched in June 2020, enables customers to buy and sell popular digital currencies instantly and at market leading rates. Since the start of the UK’s lockdown 3 in early January 2021, its customer base has doubled, and the average value of a transaction on the Ziglu platform during the first three months of this year has increased by 25%, compared to Q4 2020.
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It reports that 46% of its client base is aged between 18 and 25, and 74% is under the age of 35. Although people aged 40 and over only make up 18% of Ziglu’s customer base, the average value of their transactions is almost x7 times higher than for those aged 18 to 25.
New research) from Ziglu reveals that during the Coronavirus, 37% of people who own cryptocurrencies said the amount they bought and sold increased (10% said it rose dramatically) or they started to buy these digital assets for the first time. Only 8% said they bought and sold less).
The research found that of those people who have bought and sold more cryptocurrencies during the Coronavirus crisis or started doing this for the first time, 59% have been men and 41% women.
Mark Hipperson, Founder and CEO of Ziglu said: “The coronavirus crisis has accelerated growth in the retail cryptocurrency market by at least 5 years. Many people have been working from home or furloughed and with more time on their hands have started to buy cryptocurrencies for the first time. Others who already owned digital assets have been doing more of this. The market has also benefited from strong growth in the value of Bitcoin and other digital currencies. Between 1st April 2020 and 1st April 2021, Bitcoin increased by 744% in value.”
Hipperson explained that much of the increased activity in cryptocurrencies has been driven by people that are new to the market, and they tend to seek an environment that allows them to safely and securely explore cryptocurrencies. “Given that we are the only company in the UK who is both authorised and regulated by the Financial Conduct Authority for e-money services and also registered with the Financial Conduct Authority as a crypto-asset firm, and that we provide features designed to protect our customers such as insurance against cyber-attack, we have enjoyed record growth over the course of lockdown,” he said.
With no hidden fees or charges, Ziglu is fully authorised and regulated by the Financial Conduct Authority as an Electronic Money Institution. It is also one of the world’s first cryptocurrency platforms to comply with the Anti Money Laundering and Counter Terrorist Financing standards set by Financial Action Task Force (FATF), implemented in over 200 jurisdictions.