As one of the most important holidays for millions, the Lunar New Year is a celebration of the arrival of spring, sweeping away any ill fortune and ushering in good luck. For us in present times, the good luck we seek is usually health, longevity, and fortune.

It probably explains why we wish our family and friends “Gong Xi Fa Cai” — which translates to “wishing you prosperity in the coming year” instead of the usual “Happy New Year”. After all, who doesn’t want to be blessed with good fortune? I know I do. 

Most conversations during the Lunar New Year revolve around professional growth and wealth management while partaking in the most quintessential activity of all: gambling. People look forward to testing out their new year fortune through games of blackjack, and several rounds of Mahjong.

However, it is easy to get carried away with the daring sentiments of making (or losing) money during the festivities, especially during this period of increased investment activity. Family and friends may prompt best market tips, get rich quick scheme suggestions or even recommend following ‘successful expert traders’ on social media to grow your wealth. But is it truly that simple? 

Social trading is not new only in recent years, with explosive growth worldwide. According to research conducted by Investment Trends in 2023, social trading in Singapore is on the rise, with every other trader either engaging in social trading or planning to do so within the next 12 months.

The report indicates an uptrend in copy trading, with eight per cent of traders who have never followed social trading in the past plan to engage as a follower and seven per cent planning to engage as an expert trader/investor. Though the numbers for copy trade may seem few, rising accessibility to market insights on social media coupled with these participation indicators hint at an impending surge of interest in copy trading.  

Also Read: ‘Tis the season to be shopping: Can businesses still capitalise on sales events in APAC?

Before getting swept away by the hype, traders must consider the inherent risks and responsible practices associated with social trading. But before diving in, what exactly is social trading, and should it be your compass in the Chinese New Year’s quest for financial fortune?

At its core, social trading is a vibrant ecosystem where investors connect, share insights, and even mimic the trades of others. It democratises access to financial markets, especially for beginners, offering a platform to learn from seasoned traders and potentially replicate their success.

However, within this broad umbrella lie three distinct approaches: 

• Social trading: A bustling marketplace of ideas where discussions, strategies, and market analyses flow freely. This knowledge-sharing empowers individuals to make informed decisions based on their own understanding, not intended to perform blind imitation. 
• Copy trading: This takes things a step further, allowing users to automatically mirror the trades of chosen “signal providers.” Their buy and sell orders are instantly reflected in your own portfolio, offering a hands-off approach with the potential for quick gains.  
• Mirror trading: This is essentially automated asset management. It replicates not just individual trades but the entire portfolio allocation of a chosen trader, placing all your eggs in their proverbial basket. 

The Investment Trends study further reports that social traders are generally younger and trade more often than non-peer-reliant traders. Two in five traders who have never used social trading can be encouraged to start doing so if given sufficient tutorials, risk analysis or (better) assurances of the trustworthiness of ‘top traders’ on the platforms. As social and digital platforms are set to rise with a younger demographic, it is important to understand the benefits and pitfalls of social trading and how to proceed with caution. 

While the allure of copy and mirror trading’s convenience is undeniable, social trading, when done right, stands out as a more empowering option as it would foster education and understanding of market dynamics. However, the path paved with social trading is not without its treacherous potholes.

Blindly following the herd or chasing quick profits, fueled by the “get rich quick” mentality that can sometimes permeate these platforms, can lead to significant losses. One investor lost about 50 per cent of his portfolio.

Also Read: New year, new funding strategies: Powering up sustainability tech startups

Such an instance highlights the importance of approaching this space with caution and a healthy dose of scepticism. Here are some specific pitfalls to be aware of: 

• Downplaying the knowledge gap: While social trading democratises access, critics argue it can downplay the essential knowledge needed to navigate financial markets effectively. Blindly copying trades without understanding the underlying rationale can leave you vulnerable to market movements and unable to adapt your strategy when needed.  
• The illusion of risk-free returns: One of the biggest misconceptions is that social trading somehow eliminates risk. All trading inherently involves risk, and losses are inevitable at some point. Simply trusting a third party’s judgment while shouldering all the potential downsides is a major drawback.  
• Hidden costs: Be mindful of potential hidden costs associated with social trading. Some platforms, particularly those promoting “top traders” with frequent trading activity, may charge hefty commission fees that eat into your returns.  

So, as the Lunar New Year spirit of seeking financial growth takes hold, remember these cautionary tales: 

• The “celebrity trader” trap: Not all that glitters on social media is gold. Some signal providers may be more concerned with building their online persona than delivering genuine investment insights. Be wary of those who boast of unrealistic returns or flaunt lavish lifestyles. Do your due diligence, research their track record, and understand their investment philosophy before blindly trusting their calls. 
• The echo chamber effect: Social trading platforms can create echo chambers where confirmation bias reigns supreme. Surrounding yourself solely with traders who share your existing views can blind you to potential risks and alternative perspectives. Seek out diverse voices, challenge your assumptions, and maintain a critical eye on the information you consume. 
• The emotional rollercoaster: The fast-paced nature of social trading can easily trigger emotional decision-making. Fear of missing out (FOMO) and the lure of quick gains can lead to impulsive trades and disastrous consequences. Remember, sustainable wealth creation is a marathon, not a sprint. Prioritise long-term goals, maintain discipline, and avoid letting emotions cloud your judgment. 

The Lunar New Year may be an auspicious time for financial endeavours, but remember, true financial prosperity is built on a foundation of knowledge, discipline, and independent thinking. Remember, financial literacy is still your responsibility, not something magically transferred through copying trades.

Don’t be lulled into a false sense of security, as returns may not be guaranteed. Invest in your own financial education, develop your analytical skills, and cultivate a healthy scepticism towards the hype and promises that may abound.

By navigating the social trading landscape with a discerning eye and a focus on long-term goals, you can transform the Chinese New Year’s investment rush from a perilous gamble to a journey towards sustainable financial well-being. 

Disclaimer: The insights presented in this article are based on Investment Trends 2023 Singapore Leverage Trading Report. For further information or clarification on the research findings, please contact Investment Trends directly at info@investmenttrends.com. 

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ProCredit, a tech-enabled SME lender in the Philippines, has closed a US$4.1 million pre-seed round of financing led by Integra Partners.

Menardo Jimenez Family Office, M Venture Partners (MVP), Cento Ventures, Gobi Partners (Gobi-Core Philippine Fund), and several local angels also co-invested.

Also Read: Founders are pessimistic about Philippines’ funding climate in 2024: study

ProCredit will expand its loan book through organic and inorganic growth and raise additional capital. The company is keen to speak to debt and equity investors, Philippine market participants, borrowers, and potential partners.

ProCredit was started by a founding team that has held senior lending roles at Citigroup, Standard Chartered, ANZ, and the Asian Development Bank. The startup employs credit-first client engagements, a rules-based underwriting and portfolio management architecture, and flexible product offerings incorporating risk-based pricing. It claims to reduce operating costs and expenses while improving customer experience.

The fintech startup is also considering expansion into the banking sector. This will allow ProCredit to offer a fuller suite of lending solutions to its mid-market SME customers.

Also Read: AI is not slowing demand for software developers in the Philippines

Mayank Parekh, Founding Partner at M Venture Partners (MVP), said: Eight in 10 formal loans are channelled to large corporations in the Philippines, leaving 15 million SMEs and workers with little access to traditional finance.”

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When they fail, great leaders always hold onto and believe in their abilities. They acknowledge, learn from mistakes, and encourage their teams to look at mistakes not as the end point, but the starting mark of new growth.

In the era of unprecedented management complexity, getting the best out of people under normal circumstances can be a challenge. Throw in adversity, and things suddenly change! Even achieving the minimum from systems you are used to become a mirage.

In the current high-litigation culture, leaders always get someone to blame when things do not add up. It is easy to place blame on suppliers, partners, managers, or underlings who appear unable to get things done.

While delegating responsibility might be a known and acceptable concept, in times of crisis, a true leader should step in and take matters into their own hand.

The authority-leadership paradox

Every other day, we come across managers lamenting that they do not have authority. However, authority can only be achieved when a leader is able to demonstrate responsibility. Here, you need to appreciate that authority is not simply given by senior executives. Rather, you can only earn it via responsible behaviour.

Peter Drucker, the modern day Aristotle for the business community, argues that management lacks power, but only wields responsibility. He was right in pointing that leaders must demonstrate responsible behaviour for their subordinates and themselves.

Also Read: How do we overcome the low representation of women in leadership roles?

Though our actions determine whether we will earn trust from subordinates or not, the final decision relies on the ability to build trust with our leadership. How can this be achieved? Instead of deflecting issues, take responsibility. Own the problem and address it!

Leaders evaluate themselves before pointing fingers at others

In the realms of corporate competitiveness, the simpler route is covering one’s inadequacies. However, this only buys time and does not go far. A responsible leader has to take a deeper look at every misstep and seek to learn from mistakes as opposed to pointing fingers.

The leader pulls the thumb and asks the hard question: “What should have been done in a different way?” As others see the problem, it is the work of the leader to identify solutions.

The leader privately addresses the issue at hand but takes full responsibility in public. If the problem arose because one of the team members slipped, the leader’s role is to pick them up.

Taking responsibility today maps your race for a better tomorrow

If you obfuscate your involvement by passing blame, it acts like covering a volcano. The team members that you pass the button to will not forget! Next time when an issue arises, the team members will simply follow your lead but cover their back. But why would they do this?

By passing the blame to them, they feel victimised. It does not matter whether they are the ones who messed up things or not. You simply have to own up the work/mistakes of the group.  Because they are afraid that you might hang them when a problem happens, they could even set you up by hiding things from you.

Also Read: 7 things to consider when distributing leadership roles among founders

You have a team to lead; take it as a family and use every avenue to correct, mentor and emerge a better unit.

People in your team are smart, but they depend on you

Although it is true that you are the leader, the people in your team are savvy. That is right. They are always observing and taking notes. At any moment, they can easily spot half-truths or attempts to shift blame. So, what does passing blame mean?

To your team members, passing the blame button is like getting thrown down a cliff. They feel insecure and like a drowning person, will hold onto anything to survive. At this point, you must choose to lead them.

It is time to tell your team members that; “Yes, the situation is dire, it is messy but you are going to solve it.” At this point, everyone works harder to help address the situation. With every effort onboard, your responsibility will help you emerge a better leader.

It does not matter whose fault it was!

Well, it is true that for your organisation to get into the current problem, someone must have messed up. But that is it!  You cannot go to the public and say that the company has sunk because a “James” or “Lillian” failed to do a specific task. The shareholders, clients, and every interested person want to hear about the great recovery plan, the progress, and how you plan to make the organisation great again.

Move on! There is a lot of things to do

Now that the mess has happened, it is not the time to wallow in self-pity. Indeed, you need to double or triple your efforts to achieve two things: One, get through the problem and two, set the organisation back on the right track. In light of this, what would a responsible leader do to achieve these two core components?

• Stop reminding yourself and every member of the team about the problem.
• Involve all the team members to craft a winning strategy.
• Bring in more experts to help with addressing the problem.

When you find your organisation, department, or team in a problem, the way you handle it will be a pointer of how responsible you are.

Also Read: A woman among women: 27 female-led startups in SEA that are going places

You know what? That crisis is not there to wreck you! It is time to build a stronger team, strengthen your systems, train your team members and become stronger.

Others before you have gone through fire blazing crises and came out unscathed. David Neeleman of JetBlue took responsibility of the 2007 crisis when the ice storm struck East Coast. For Neeleman, it was not a matter of blaming the storm or his team. He took responsibility, compensated clients for delays and cleared the mess estimated at US$30 million. The results? JetBlue emerged stronger than before!

You too, can succeed now, and any other time, as far as you do not delegate responsibility!

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Image Credit: Jonny Caspari on Unsplash

This post was first published on May 27, 2019

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1Long, a wealth management platform in Vietnam, has received US$500,000 in a pre-seed investment round from Iterative, Monk’s Hill Ventures, R2VP, and Orionis Capital.

The new capital will be channelled into technology development, partnerships with asset managers and financial institutions, and strategic team expansion.

Also Read: ‘Resistance to digital wealth management has almost disappeared in SEA’: Bambu CEO Ned Phillips

Founded by a team of former investment banking and Y Combinator-backed veterans, 1Long enables individuals to start with as little as 10,000 VND (approximately less than US$1).

It offers two principal savings products, 1Safe and 1Term, designed for flexible savings with annual returns of up to 6.6 per cent and the possibility of earning rewards up to 9 per cent for long-term deposits. The platform allows daily transfers and withdrawals without fees, thus removing barriers to accessing funds.

Moving forward, 1Long aims to expand into investment products, including stocks, bonds, real estate, and additional value-added services such as retirement and tax planning. The platform caters to both domestic and international investors interested in the Vietnamese market.

In Southeast Asia, Vietnam’s fintech sector ranks among the top, with one of the highest growth rates, second only to Singapore, as reported by Acclime Vietnam and Decision Lab.

Also Read: Shifting the global paradigm of wealth management with digital assets

“It’s worth noting, according to Motor Intelligence, that the fintech market in Vietnam, while moving at a measured pace, is expected to ultimately surpass US$72 billion by 2029 with a projected 13 per cent compound annual growth rate (CAGR),” said Michael Do, Co-Founder and CEO at 1Long. “This promising trend highlights the vast potential within the sector and aligns perfectly with our mission at 1Long, as we navigate the maturing landscape with optimism and a clear focus on innovation and the financial success of our users.”

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X marks Echelon. Join us at Singapore EXPO on May 15-16 for the 10th edition of Asia’s leading tech and startup conference. Enjoy 2 days of building connections with potential investors, partners, and customers, exploring innovation, and sharing insights with 8,000+ key decision-makers of Asia’s tech ecosystem. Get your tickets here.

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Singapore-based Green COP, which produces sustainable biofuels derived from biowaste, recently announced the completion of an investment round with Ken Energy and other investors. The money will be used to establish a sustainable biofuels pilot plant with a one-tonne daily production capacity. The deeptech startup also appointed maritime veteran Teo Teng Seng as Chairman.

In this interview, Green COP co-founder Dr Hanson Lee discusses the plans with the newly acquired funds, partnerships, and alcohol-based biofuels industry.

Excerpts:

What is the background of the founding team of Green COP? What motivated the founders to focus on sustainable fuel solutions, and how does it contribute to environmental sustainability?

Green COP was founded by Dr Hanson Lee (an expert in biomass pre-treatment), Low Wang Chang (an MSc in Management of Technology), Sng Yee Ching (Chemical Engineer) and Prof Yang Kun-Lin (an expert in green catalysts). It started with research to give value to biowaste. After coming together with like-minded co-founders who are dedicated to environmental sustainability and the circular economy, it drives Green COP’s innovation in the biofuel sector, paving the way for cleaner energy solutions and a more sustainable future.

How does the partnership with Ken Energy help you in the long term? What is the mutual synergy here?

The partnership with Ken Energy provides mutual benefits in the long term. Ken Energy specialises in developing and implementing green energy solutions, focusing on advancing the use of renewable energy and alternative fuels to reduce emissions and promote a greener environment.

Also Read: Green COP secures investment to launch a pilot biofuels plant

This aligns perfectly with Green COP’s mission to drive sustainable fuel solutions. By joining forces, we aim to leverage Ken Energy’s expertise and resources to accelerate the adoption of our innovative biofuel technologies. Together, we aim to drive innovation and accelerate the adoption of sustainable fuel solutions in the region.

Could you provide more details on Green COP’s strategic collaboration with a leading global integrated palm oil player and how it will enhance the company’s capabilities in sustainable practices? Do you have any other partnerships in the pipeline?

Green COP’s strategic collaboration with a leading global integrated palm oil player enhances our supply chain resilience and sustainability efforts. This partnership provides us with a secure and sustainable source of feedstock for our biofuel production.

By leveraging our partner’s expertise in the palm oil industry and their commitment to sustainable practices, we can ensure responsible sourcing of raw materials. This collaboration strengthens our supply chain while reinforcing our mutual goal of driving positive environmental impact and promoting sustainable biofuel industry development.

As for potential future partnerships, while we cannot disclose specific details at this time, we remain committed to forging partnerships that align with our mission and values.

Can you explain Green COP’s patented pre-treatment and fermentation technology and how it enables the production of more efficient drop-in fuels?

Green COP’s patented pre-treatment process is non-energy intensive and at least 50 per cent faster than current industrial pre-treatment processes. This efficient process significantly reduces energy consumption while maintaining high yields.

Additionally, our patented fermentation technology utilises a co-culture system without the need for removing oxygen and aeration, minimising energy consumption and enhancing process efficiency. By optimising both pre-treatment and fermentation processes, Green COP achieves higher productivity and cost-effectiveness compared to traditional methods.

How do Green COP’s alcohol-based biofuels differ from traditional fuels in terms of shelf life and emissions reduction, and what impact do they have on environmental sustainability?

Green COP’s alcohol-based biofuels offer several advantages over traditional fuels. Green COP’s biofuels are drop-in fuels with a longer shelf life (more than 24 months). They contribute to a significant 30 per cent reduction in Nitrogen Oxide (NOx) emissions, making them a cleaner and more environmentally friendly alternative.

Also Read: Fostering sustainability through education

Besides, our biofuels significantly reduce greenhouse gas emissions compared to conventional fuels, contributing to improved air quality and mitigating climate change. By promoting the adoption of biofuels, we aim to drive the transition to a more sustainable energy future.

How does Green COP plan to leverage the newly acquired funds to establish a sustainable biofuels pilot plant, and what are the expected outcomes of this initiative? When and where do you plan to open the plant?

With the newly acquired funds, Green COP plans to establish a sustainable biofuels pilot plant with a capacity of 1 ton per day. This initiative will allow us to scale up production and test the viability of our technology on a larger scale.

The pilot plant will serve as a crucial milestone in our journey towards commercialisation, enabling us to refine our processes and optimise production efficiency. We plan to open the pilot plant this year at a location that will be revealed at a later date. Our goal is to demonstrate the feasibility and scalability of our sustainable biofuel solutions, driving innovation and sustainability in the energy sector.

In what ways does Green COP aim to foster a sustainable economy within the maritime and transportation sectors through its initiatives and technologies?

Green COP aims to foster a sustainable economy within the maritime and transportation sectors through our initiatives and technologies by providing clean and renewable fuel alternatives; we reduce the environmental impact of transportation activities, particularly in the maritime sector, which is a significant contributor to global emissions.

Our sustainable fuel solutions reduce carbon emissions and promote resource efficiency and circularity, contributing to a more sustainable and resilient economy.

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X marks Echelon. Join us at Singapore EXPO on May 15-16 for the 10th edition of Asia’s leading tech and startup conference. Enjoy 2 days of building connections with potential investors, partners, and customers, exploring innovation, and sharing insights with 8,000+ key decision-makers of Asia’s tech ecosystem. Get your tickets here.

Want more from your Echelon experience? Be an Echelon X sponsor or exhibitor. Send enquiry here.

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