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Deep Dive with Patrick Mrozowski, CEO Crumbs - invest your spare change in crypto

Patrick will be answering your questions live at 1pm PST, 27th March

Crumbs posted 9 months ago

with or if you'd like to join the discussion.
Dennis Stücken
I love the idea! Does one have to actively put the change into an asset or do you plan on working with any payment solutions to automate the process?
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Patrick Mrozowski
@dstuecken Thank you! No we automate the entire process, all you have to do is select a portfolio (Collect of crypto assets) you want your round ups going into. We have already established a relationship with a bank to process the payments!
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Dennis Stücken
@dstuecken @patrickmro_ wow thats pretty awesome! Great job! Keep us posted about it :)
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Love the app! What's your process for deciding which crypto assets get added to your platform?
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Patrick Mrozowski
@TravelinTweeter Thank you and solid question! We try to support a wide variety of crypto assets but making sure they are legitimate is very important. Our diligence process consists of making sure the crypto-asset solves some sort of problem using blockchain technology, look into founders/team, potential real world use cases, is it potentially a security?, etc. We plan to write a blog post regarding this process. The goal is to create a safe environment for investors and filter out ICO’s and tokens that have no use case or expose users to great risk.
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Jason Byrne
How will Crumbs compete with Acorns and gain US market share?
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Patrick Mrozowski
@Jason-Byrne I don’t think Crumbs and Acorns are competing, I actually believe they work great adjacent to each other. Acorns’s goal is to help users minimize risk by investing in traditional assets. Our goal is to help everyone gain exposure/contribute to promising digital assets thru micro investing.
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Ben Tossell
Do you think big platforms like Robinhood are likely to go into this space too? What is the strategy to be #1 here
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Patrick Mrozowski
@bentossell Yes for sure, last month Robinhood announced they are adding support for crypto trading. I don’t think our product directly competes with them since we are focused on the spare change/micro investment model.
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Soona Amhaz
How does Crumbs work exactly? Do company rules against purchasing crypto (like Chase's) affect this at all?
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Patrick Mrozowski
@soonaorlater Crumbs’s monitors the transaction history of your linked card(s) to round up the transactions to the nearest dollar and once those round ups reach at least $5.00 we purchase crypto for you. I don’t think so, since Crumbs is custodial and does not allow users to send their crypto to external wallets, this prevents irreversible transactions from taking place, which is one of the things banks want to avoid due to charge back/fraud issues.
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Ben Tossell
Will users be able to invest in groups of funds like indexes?
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Patrick Mrozowski
@bentossell Yeah exactly, users will be able to select which crypto’s they want their round ups/recurring purchases going into. If you want to do 50% BTC 25% ETH and 25% ZRX you are able to determine the assets/ratio how ever you would like! It’s also very simple and quick to change your portfolio.
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Ben Tossell
What are your favorite projects out there right now?
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Philipp Mayer
Great idea!
1. Will this work with all credit / debit cards in every bank?
2. How big is your team?

Kind regards
Phil
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Patrick Mrozowski
@Philipp-Mayer Thank you! Currently we support most major banks and credit cards in the US.
The team is four of us including myself: CEO/co-founder, Carson: Lead developer/co-founder, Henry: Front-end developer, and Tyler: Lead UI/UX designer.
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Jared Loftus
Three questions:

1. Will a user ever be able to own the crypto? Or are you simply just buying/selling it for the user (meaning the user is only transacting in cash) and just returning the cash value of the crypto to the user.
2. What's the process like of selling the crypto in your account? Do you have to sell the whole portfolio? Or can you just sell one coin?
3. Coinbase has licenses in many states as a money transmitter. Are you licensed or permitted in any way?
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Patrick Mrozowski
@JaredLoftus 1. Yes, we purchase the crypto and hold it for you then when you withdraw it is sold and the funds are deposited into your linked account. We plan to add a feature to allow users to withdraw into an external wallet eventually.
2. You can sell from which ever wallet you would like. If you want to sell your Ether, you withdraw what ever amount in USD from your Ethereum wallet.
3. Great question, we are working closely with our legal counsel to implement the best compliance strategy for Crumbs.
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Jared Loftus
@patrickmro_ One last question - how are you guys funded? Have you raised any money yet?
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Patrick Mrozowski
@JaredLoftus @JaredLoftus We raised an angel round with family/friends which has given us the fuel to get to the current point. Now actively raising our seed round.
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Ben Tossell
I saw the tweet of you writing down your idea which then became crumbs.... could you tell us the full story?
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Patrick Mrozowski
@bentossell Long story short since we only have a few minutes: I wrote that note down at night before going to bed. I was checking my balances on my favorite investment apps at the end of the day: Acorns and Coinbase. I noticed that my returns into crypto were performing much better than anything else. I began to think, "It would be awesome if there was an Acorns for crypto" so I went to Google, saw lawnmower.io existed but was no longer supporting the spare change feature. I jumped on the opportunity, called my developer friend and we got to work!
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Ben Tossell
What have you changed your mind about in the crypto space in the last 6 months?
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Ben Tossell
What's something you believe in crypto that few people agree with you on?
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Patrick Mrozowski
@bentossell I think 99.99% of ICO's will fail in the next year.
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Tommy Ch
When is the app going live? Is this available for Canadians? Excited to try it out!
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Patrick Mrozowski
@Tommy-Ch It's tough to say a hard date but we are hoping to be on the App Store and Play Store in the next few weeks. Canada is the next place on our road map! We are granting beta access to those on the waitlist.
1
Patrick Mrozowski
Thank you everybody for asking some insightful and interesting questions! I am super excited to turn your spare change into crypto!
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