For the price of a cup of coffee, you can learn how to invest in cryptocurrency in your childhood.
Today, Stack.io released what CEO Will Rush says is “the first crypto education and trading app for teens and their parents.”
The subscription-based app costs $3 per user per month and is available for Android. It was designed with Gen Z in mind, a generation that will grow up with blockchain and possibly own some digital assets, Rush told TechCrunch.
He co-founded the company in 2021 with CTO Natalie Young and CCO Angela Mascarenas. The founding team has a multifaceted background that includes developing fintech app Copper and Rush Securities, Mascarenas helped digitize the cookie ordering system for Girl Scouts, and was a young T-Mobile engineer.
During his time at Copper, Rush led efforts to educate children about investing, but found that replacing the word “stock” with “crypto” would increase participation. Reddit sees teenagers trying to get into crypto using their parents’ information to create an account on an exchange like Coinbase or Robinhood and get banned — and just like that — because they’re underage to hold an account.
“This was a thesis that no one really put much effort into,” Rush told TechCrunch. “How can we be good people and create a safe and educational ecosystem?”
Coinbase and Robinhood already dominate the crypto exchange space, but Rush believes it stands out from the crowd by offering tax and regulatory benefits such as a Uniform Transfers to Minors (UTMA) account and a trading environment specifically designed for youth. And, when minor beneficiaries turn 18, the assets are transferred to their names. Users can earn rewards as they learn, which can translate into getting the app for free.
It’s also limiting the assets offered to protect its users, Rush said. It starts with seven cryptocurrencies like Bitcoin, Ethereum and Cardano. The stack does not allow off-platform transfers, which Rush reduces by up to 98% of cryptocurrency fraud and scams that plague exchanges.
“By making those few decisions, we think we can provide a better educational product,” he added.
Meanwhile, the app has launched with more than 6,000 users on its waiting list and has received $2.7 million in investment from Madrona, Venture Collective, Santa Clara Ventures and a group of angel and individual investors. The new investment brings Stack’s total funding to date to more than $3 million.
The new capital infusion will allow the company to continue building its app and high school-focused financial education program. Rush also intends to obtain additional financing and expand its offerings. The company currently has eight employees and expects to hire two more this year.
Next, the company will undertake what Rush calls a “more thoughtful overhaul of its educational content,” which includes creating compelling financial content similar to what’s known on TikTok and YouTube.
“We want a big lift to make it relevant for teenagers and we’re looking at educational topics like NFTs, metaverse and web3,” he said. “We aim to be a trusted brand for young people to invest in.”
