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From a technical perspective, if the decentralized trading mechanism is to be run under the current state, it will be difficult for the exchange to achieve ideal work efficiency.
Mars Finance (ID: hxcj24h) frontline report, on the evening of October 18, Beijing time, on the morning of October 18, Eastern Time, the 2018 Mars Blockchain (New York) Summit was held in New York, USA. From Wall Street , China's powerful financial institutions and blockchain industry leaders, held a peak conversation around the blockchain "NEXT STEP".
summit set up six roundtable forums on global regulatory situation, the future and implementation path of STO, stablecoin storm, secondary market and trading platforms, public chains and application, and investment strategies to combat market cycles, and analyze the opportunities and challenges behind each hot topic in detail. At the
meeting, Vivi Lin hosted a roundtable discussion on "secondary market and trading platform". The guests also included former executive director of JPMorgan asset management, Aries Wang, Bibox co-founder, Lou Jiyue, Tokenmania founder, Bgogo CSO Ciara Sun, ExShell CEO Hu Peng.
Key points of the conversation are as follows :
- 1. Lou Jiyue said that her approach in a bear market and a bull market is the same, but she believes that the investment demand is different. In a bull market, the profits earned are relatively thin and the liquidity is very high. In a bull market, investors are more willing to accept high-risk investments.
- 2. Ciara Sun said that even in a bear market, the exchange can make a lot of money.
- 3. Lou Jiyue believes that most retail investors, or small investors, lose money in the market. Generally speaking, institutional investors are very skilled and they know how to use financial skills.
- 4. Ciara Sun believes that the role of the decentralized trading mechanism is limited. From a technical perspective alone, if we want to run the decentralized trading mechanism under the current state, it will be difficult for us to achieve ideal work efficiency.
is the full text of the conversation as follows, edited and compiled by Mars Finance (ID: hxcj24h), without my confirmation:
Vivi Lin: Before starting, please introduce yourself and introduce the progress of your current project.
Jason Qiao: I am a former executive director of JPMorgan Asset Management. I have worked in the traditional financial market for 12 years because we found that blockchain has become a new way of money management. I am from a traditional financial institution and I hope I can lead Wall Street capital into the cryptocurrency field.
Fu Jiyue: Hello everyone, I am Lou Jiyue, the founder of Tokenmania. We aim to do OTC investment for everyone, design financial products and financial management for everyone. We are a hedge fund, and we now have a trading team in this area.
Ciara Sun: I am the chief analyst of Bgogo Exchange. I analyze it for everyone every quarter and then let everyone make choices. We also give back to our users 75% of the dividends.
Aries Wang: Hello everyone, I am the co-founder of Bibox. I am very happy to share some views and opinions on the secondary market with you.
Hu Peng: I am Hu Peng, helping them do all this report, related to business aspects. Trading in the New York and London markets is involved in traditional financial markets, and now I am entering the cryptocurrency field.
Vivi Lin: I would like to ask about hedge funds from China. When you are doing secondary market trading, what do you mainly look at?
Jason Qiao: Is this very difficult, and new technology is needed? Regarding innovative technologies, or how to do old money, new money comes in, especially when coming to the United States, I don’t think big financial institutions will join, but think small companies will join, including personnel and liquidity, and the encryption we can lend to related parties.
th floor Jiyue: We are the same in the bear market and in the bull market, but I think the investment demand is different. In the bull market, the profits earned are relatively thin and the liquidity is very large. In the bull market, investors are willing to accept high-risk investments. In the bull market, they choose ICO. I bought a coin at $0.5 before and sold it at $20. I like to invest in a bull market.
Vivi Lin: Then you no longer invest in ICO, right?
th floor Jiyue: pair, I don’t invest in this area, I am a market guide in China.
Vivi Lin: So do you think STO is the future development direction of digital currency ?
Floor Jiyue: I think STO cannot represent the future development direction of digital currency. For the tokenization of physical assets in the traditional financial market, STO provides a huge, explorable future market. The regulation and competition of traditional financial markets have also promoted the progress and development of the market. So, I think that regulation from the legislature, like the United States, sets a high bar for credit investors, which could limit global liquidity in the digital currency market.
Vivi Lin: So in an environment where global liquidity is declining, how do you position your own exchanges? What different things have you done?
Ciara Sun: First of all, the entire industry is changing, exchanges, project parties, institutional investors and retail investors. Worst case scenario is that it is harder to make money on projects at lower levels of the food chain. So we feel we have an obligation to contribute to the entire industry. We started this company because we saw the problems that exist.
Many projects raise a lot of money, and the exchange makes a lot of money every day. And they might spend about half of their money to pay for listing, which is wrong. These projects need to pay for the healthy development of technology, operations, and the entire industry.
We hope to change the way ICO is. We don’t have capital flow, we just cleverly look for and use it, and we use the logic behind it to make our industry healthier.
Even in a bear market, the exchange can make a lot of money. I don’t plan to give an example here, but everyone in this industry knows it.
Vivi Lin: So, how do you make money? I mean, what is the difference between you and those exchanges?
Ciara Sun: We are trying to change the rules of the game – we are trying to change the role of ICO throughout the game. Therefore, as they change, we do not charge a listing fee, and we have a flexible regulation of transaction fees. We have no cash flow. We raise the equity capital and then raise the threshold for issuing coins, but only a small amount. So we are really burning money. We use the logic of traditional Internet companies to build our user base and try to bring the entire industry back to health.
Vivi Lin: Is Bgogo centralized or decentralized?
Ciara Sun: We are centralized.
Vivi Lin: How do you view decentralization
Ciara Sun: Decentralization is an inevitable choice in the future, but we have not yet developed to that point.
Vivi Lin: What challenges do you think are facing?
Ciara Sun: First of all, the role played by the decentralized trading mechanism is limited. From a technical perspective alone, if we want to run the decentralized trading mechanism under the current state, it will be difficult for us to achieve sufficient work efficiency.
Vivi Lin: You work in Asia, you should be very familiar with the Asian market. There is a large amount of capital flowing into the cryptocurrency field in Asia. What differences have you seen?
Ciara Sun: As we all know, it is easy to make money on exchanges in a bull market, but in fact, cryptocurrency exchanges are just beginnings compared to traditional financial exchanges.I think the bear market is a great opportunity, we can think about how to serve investors and customers, we can return 80% of the profits to investors, provide them with more services to avoid risks, and provide more optimized products. In a bull market, we need to provide more benefits to investors and customers.
Vivi Lin: So are your customers mainly retail investors or institutional investors?
Ciara Sun: is mostly retail investors.
Vivi Lin: In a market full of fraud, how do you prevent risks? How to protect the interests of retail investors?
Floor Jiyue: Most retail investors, or small investors, lose money in the market. Generally speaking, institutional investors are very skilled and they know how to use financial skills. We serve these institutional investors and we no longer serve retail investors after a year if they want to invest in our products.
Vivi Lin: I want to go back to the question Jason just asked, liquidity issue. In a bear market, I think liquidity is a big problem. How do we gain new users, how do we get new blood into the market, and how do we inject more liquidity into the market?
Ciara Sun: is very simple. We are not centered around the exchange, but serve institutions on the platform. We set up a DPI to connect all the major exchanges, so we are attractive. Besides that, the reason people use this is that you have to make sure all your transactions are accurate so that you will find that your behavior can be trusted by others. Money must be ensured to be safe. With traditional hosting or multi-signature, you have many ways to solve the challenges of traditional financial markets, clearing, security and performance.
But I think this is feasible in the Chinese market, but no one will use such a platform to build their own strategy. High-frequency teams tend to monitor their own platforms. Because their platform's TPS will be very high. And they are not compatible with other teams. What we need to do is to increase the liquidity of the market and market makers. As I said, I'm probably one of the largest manufacturing markets in China, and we have companies that make other products on the exchange, and we narrowed the gap and narrowed the premium.
Hu Peng: Whether it is a bull market or a bear market, we should move forward and provide investors with the best services. How to avoid risk management and how do you protect your retail investors? When most retail investors suffer losses in the market, they have a way to avoid losses in their own way. They provide these methods to institutional investors, and individual companies will transfer to institutional investment. In a bear market, how do we get new investors and how do we get more funding? First of all, we need to communicate more with the exchange. Second, we need to adopt a better execution method. Third, we need to make sure that the method we use is correct and guaranteed.
Vivi Lin: You have many ways to solve this problem, so what you mean is that you must tell everyone this news and let everyone join. We are also establishing thresholds in this regard.
Jason Qiao: Because they are willing to spend money on their own to develop their own platform, if they want to integrate into newer funds, we may be unique in the Chinese market. We hope to promote it smoothly, whether it is institutional investment or individual investors. What we do is inject the economy. The way of injecting is to find ways to let institutional investors join widely. People will say that this cryptocurrency is valuable and everyone will buy it. We need to use different ways of thinking, from bottom to top, to explain to them what blockchain is.
Floor Jiyue: You look at it from the perspective of consumers, one is to buy and the other is to sell. We need to have good products, so there are also many investors, so we can improve better and continuously.
Vivi Lin: OK, thank you very much.
