KODDPA was incorporated on 27 August 2024 and describes itself as a provider of AI-driven quantitative trading. It is registered in Denver, Colorado, USA, with the following registered address: 1312 17TH ST UNIT NUM2955, Denver, CO 80202, US. KODDPA promotes a range of services, including robotic trading, dynamic investment strategies, and integrated global financial services.
Although the company claims "decades of industry experience," its recent registration date clearly identifies it as a new player in the market, making such claims questionable.
Information on Registration and Compliance Issues
U.S. MSB Registration Information
KODDPA is registered with FinCEN as an MSB and has been assigned registration number 31000280148528. With this accreditation, it is authorized to operate the following services:
- Foreign exchange transactions
- Sale and issuance of traveler’s cheques and money orders
- Money transmitting services
- Sale and issuance of prepaid cards
Colorado corporate records indicate that KODDPA is in "Good Standing," with ROSS JAMIE DITABLAN listed as the registered agent.
In the U.S., this license is referred to as an MSB, which includes "Foreign Exchange Dealing," essentially involving currency exchange services. For example, a company might assist customers in converting dollars to euros or pounds to yuan for travel, purchases, or general business purposes. These services are similar to those provided at currency exchange counters commonly found in airports or banks.
However, such trading does not involve complex financial services such as investment or speculation in the forex market, foreign exchange margin trading, or dealing in forex-related securities and derivatives, including futures and options.
MSB License Limitations
Although the MSB registration implies that KODDPA has met some basic thresholds for U.S. legal authority, there are significant limitations to this license:
- Lack of Custody Due Diligence: It does not oversee the custody of client funds through the MSB license, leaving investors exposed if misused.
- No Regulation of Investment Products: The license does not cover securities, derivatives, or other financial products at the heart of the services that KODDPA asserts.
- Minimal Regulation: The registration process requires only minimal legal and financial compliance but does not involve any deep analysis of the firm's business model or technical capability.
While KODDPA boasts that its activities are "safe, legal, and compliant," this is more of a statement of self-regulation than any real outside auditing.
Core Products and Services: Expectations vs. Real Situation
Key Features
KODDPA calls its AI-powered quantitative trading solutions:
- Automated Trading: Promises to minimize human error and emotional decision-making by executing strategies in real time.
- Flexibility: The strategy would change dynamically with respect to changes in the market.
- Financial Services Support: Claims to provide several deposit/withdrawal options and worldwide coverage.
Unsubstantiated Technical Claims
The company has claimed several technical advantages, including:
- Efficiency: Providing machine learning with big data to react swiftly to market responses.
- Scientific Approach: Statistical models to curb emotional trading.
- Diversity: Exposure to various markets and asset classes.
However, none of these capability studies or performance metrics show up as concrete evidence from KODDPA, thus leaving the effectiveness of the systems unverified.
Team and Transparency Issues
KODDPA claims professionals in the spheres of investment banking, asset management, and market analysis; nevertheless, the company does not share information on team members, their qualifications, or past successes. On the other hand, such a lack of transparency only hurts its credibility and questions the very skills it would claim to own.
Moreover, despite its claims of being an international participant, KODDPA has not received trading licenses from other key financial jurisdictions. This may also put the international customer at a risk both legally and operationally.
Social Media and Traffic Overview
KODDPA does not maintain any social network sites such as Facebook or Twitter.
According to Semrush and Ahrefs, it also doesn't receive any traffic on its official website each month; thus, very few people use it.
Potential Risks and Concerns
- Bogus Claims of Marketing: Even though it has never been in operation for even one year, KODDPA claims to have a "several-decades-long history" and a "world-class team." These are mere words unsupported by the facts, hence diminishing the trust of people in it.
- Regulatory Gaps: The MSB license does not include some of the key services that KODDPA has to offer, like quantitative trading. Substantially, most of its activities are not in conformity with the legal requirements for financial services unless extra licenses or approvals are achieved by regulators.
- Lack of Transparency: The absence of detailed information about the team’s background, technical systems, and financial operations raises significant concerns about the company’s trustworthiness and accountability.
- Conflict Between Services and Rules: Although the organization claims to adhere to strict financial regulations, it lacks regulatory coverage in other countries. As a result, many clients may face potential legal and financial risks, particularly concerning the safety of their assets.
Warning
KODDPA positions itself as an innovative fintech company leveraging AI for trading solutions. However, significant shortcomings in transparency, regulatory compliance, and verifiable performance metrics cast serious doubts on its credibility. The company’s heavy reliance on self-promotion, coupled with the absence of tangible evidence to support its claims, raises concerns about the authenticity of its operations.
Investors are strongly advised to proceed with caution, as engaging with a newly established platform that lacks transparency and regulatory rigor entails considerable risk. It is always wiser to prioritize platforms with proven track records, transparent practices, and robust regulatory safeguards to ensure the security of your investments.
