While the stock market has played the central role in many rags to riches stories through time, it has never been able to shed the element of risk and danger. Even with modern day, no-fee, stock trading apps such as Robinhood, people have to risk their hard earned cash to generate a profit in the stock market. Vestly, a new app, available from the Apple app store, allows users to learn how to play the stock market without spending a single penny from their own pockets while garnering the opportunity to win actual cash and prizes.
The concept of Vestly was thought up and subsequently developed by venture development firm, Foundermark. Foundermark functions as a digital research and development extension for their clients products; they provide the market know-how to maximize financial return on new and existing digital services.
How does it work?
Vestly promises the same thrill of playing the actual stock market, through their services, without players putting up any of their money. To use Vestly, the customer must have an active Facebook account; basic information extracted from their social media account is then used to set up and log in to their Vestly account. Following a successful setup, users have to then create their personal stock portfolios by selecting their choice of stocks without any added information or help from the service provider. Vestly asks used to enter stock symbols and company named of their own preference for their portfolio; no companies are highlighted or shortlisted for them.
This is a deliberate feature modelled after the Peter Lynch theory, which suggests that if users invest in companies that they know, use and believe in, they are more likely to achieve success. Vestly encourages users to pick companies they are familiar with and believe in; however, they are also advised to educate themselves about the market and performances of these stocks before they actually create their portfolios.
At the end of the month, the users with the top 100 portfolios get to split $10,000 of prize money; the winnings each player takes home is determined by their performance over the time period of their participation. The company has also announced that there will a prize for users in the long term, in the form a new Audi Q3 Quattro, to be awarded at the end of the 6 month mark.
How to make money?
Vestly has recently raised $4 million in seed funding but have declined to elaborate on or disclose their business model but it is assumed that the data they hope to accumulate from everyday consumers can prove to be very valuable at the end of the day; financial institutions such as hedge funds managers and e-trading companies may be interested in their data for identifying future stock market players and also identifying stocks that may be flying under the radar.