BlockTalks x Bit.com AMA Transcript!
We recently hosted an AMA with Bit.com, on February 16th at 12 PM UTC. Many of you might have participated or many of not. But we make sure no one missed out from the knowledge shared by Toya Zhang, CMO at Bit.com. So here we are up with the AMA transcript, for those who missed the live session, this blog post will be a saver & feeder of knowledge for them.
Introduction Questions Asked By Team BlockTalks!
Q1. Could you please introduce Bit.com to our community in layman’s term?
Ans — Bit.com is a high-performance crypto exchange.
I guess a crypto exchange is the most layman term I can get.
It was launched in 2020, and quickly became the second largest options trading platform in terms of volume and open interest. Bit.com is quickly developing, introduced futures, and spot trading as well. Recently listed many popular tokens.
A bit more background of the team of bit.com. It was launched by Matrixport, the 1 billion USD valued crypto asset management firm, founded by Wu Jihan, who was also the co-founder of Bitmain, the leading miner producer.
Q2. What are the advantages of Bit.com to the other alternatives in the Blockchain field?
Ans — 1. One is from product front, bit.com is one of few exchanges that offer such a full product suite, including spot, convert, futures, perp, options. It is an all-in-one crypto exchange. Product innovation has been int he genes of the people here.
2. The other is from technology front, bit.com is one of few exchanges that supports unified margin, portfolio margin, the advantage of this is to allow users to maximize the fund efficiency.
Unified Margin is an upgraded trading and risk management system adopting a single account solution to optimally trade spot, margin, perpetual, futures, and options without the need to transfer funds between multiple accounts. Through this, we achieved trade every coin with any coin, the ultimate flexibility of crypto trading.
3.Thirdly, we are services and solutions driven, we constantly listen to our users and develop features as they need. For example we have the trading tool as RMM for users to try and automate their trading.
We have non-stop listing campaigns that user can simply deposit and trade to earn some tokens, or even, this time,for the BONE and LEASH listing, we introduce meme creation and earn tokens. Please check our announcement channel and telegram channel to get the updated info.
Finally, I would like to emphasize on the team, whom on average holds 5 years experience in crypto. This is pretty impressive considering crypto has a short history. So we understand tech, finance, crypto, and users.
Q3. What are the major milestones Bit.com achieved so far & what are in the future pipeline?
Ans — For the past 1.5 years, bit.com developed the own matching engine, brought spot trading, leveraged trading, futures, perpetual, options online, ask anyone from an exchange, it is not easy to do such heavy weight work. It is very impressive for me regarding the amount of work and their efficiency.
On top of the core functions, they also developed risk management tools, and automated trading tools for users.
The next step for us is to bring inverse futures - the USDT demoniated futures, and then Savings, NFT to our users. All scheduled to be completed by June.
We are targeting to list 100+ tokens selectively by the end of June as well.
So far, five important metrics we are scoring. 1) project quality - looking at whitepaper, tokeneconimics if they make sense 2) founds quality 3) social media quality 4) trading quality 5) investors quality. We have a group of 5 people in the listing team to evaluate this.
Questions Asked on Twitter for Bit.com Team!!
Q1. I read that Bitcom provides institutional-grade security protected by Cactus Custody. Could you tell us a little bit about this partnership, about who Cactus Custody is and how Cactus Custody contributes to your security?
Ans — Cactus custody is part of our family, just like Matrixport is part of our family. The over arching group consists 1) Matrixport - the 1 billion valuation asset management product; 2) Bit.com - the one stop shop for crypto trading; 3) the Cactus costody - institutional grade custody, and also a 4) venture arm, investing in early stage projects. Potentially, the family could be bigger and bigger through the time.
We seperately, and collectively, doing our business in a high quality and professional way. This is also the highlight of bit.com. Once you are bit.com’s user, you are half foot in all the other services our sister company is providing.
Q2. Recently your marketing director emphasized the potential of meme tokens, this due to the addition of 2 Meme tokens to your ecosystem, how do you think this decision favors BitCom, taking into account that serious investors are not very fond of this investment category?
Ans — The marketing director who advates for meme coins is myself. I am not shy to admit that I like meme coins as a concept, and I like certain meme coins (not all of them.) Reason being, meme coin is more than just a joke. it is popular culture, just like hip pop, grafitties, sneakers and others. You cannot deny a culture.
Serious investors dont see the value in this because they are not looking carefully.
The community support for Doge and Shib is immensive and undeniable.
The popular culture is fluid, changing all the time. so it is hard for them to die, because they are changing, as long as the people are still with them, they are very much adaptive.
As a disclaimer here: I’m saying people should not underestimate meme coin, but also, for the meme coins which have less attraction, and less contributors, it is riskier.
Q3. Will we have to open separate accounts for margin trading, perpetual, futures and options, or will we be able to do it all under one account? How will we benefit from your one account solution?
Ans — Bit.com has a function called unified margin, which is different from “traditional mode”, where you have an account for spot, perpetual and others. You can opted in to choose UM mode, or stay with traditional mode if you are not confident.
This is an advanced level. Deribit and other exchanges don’t support it, as a fact.
The benefit is multiple, firstly, you dont have to move your money back and forth across different wallets.
Secondly your margin would be much bigger. For example, you want to trade btc/usdt futures, with usdt as underlying margin, you dont event to hold usdt in your account. We will calculate your asset in the wallet in a usdt value and use it as collatoral, this is to maximize your fund efficiency.
Therefore we claim that at bit.com, you can trade every coin with any coin! Simply the flexibility and smart calculation.
Q4. Bit.com is not a new platform in the market, they are currently operational since 2020. So, how have they handled the competition since then? Why was it necessary for them to start a new round of marketing? How popular have they been since then? How have your numbers grown?
Ans — Bit.com was launched in 2020, 1.5 years ago. You would argue for an exchange as old as 1.5 years old, if you haven’t heard of it, it is not that likely to survive. On the contrary, bit.com is stronger after 1.5 years.
It started and grew quickly immediately after the launch because we found an empty arena - options trading. Back then, there is only 1 competitor, Deribit. So we quickly grabbed up to 20% of the market share form Deribit for options trading and until now, remained the second largest in this field. The third is OKX.
So previously, and admittedly, bit.com has been focusing on institutional clients for options trading. We need to aim higher. Exchanges, they may start from diffrent starting point, but the end goals are always the same, bigger, stronger, and higher. So it is inevitable for us to find a right time and promote to the public.
Q5. The volatility within crypto markets calls for risk management tools, unfortunately the available options lack efficient tools to manage it. What are some of the innovative products your platform has put in place to help users manage their investments better?
Ans — This maybe the most honest confession you are getting from an AMA - there are always risks for crypto trading, even you dont trade, just buy and hold, you are exposing to risks. Bitcoin dropped from 60k+ to 30+k in 2 weeks time. Horror!
As you mentioned, the volatility of the crypto market is brutal, on the other side, it also brings abundance return for the lucky ones. For risk management, we need to learn 1) diversification, not just to diversify the asset, but also to diversify your trading strategy. Allocate some for grid trading, some for buy and hold, some for conservative RMM for example as I mentioned that bit.com offers such a tool! So explore more and diversify as much as you could and devise your own strategy. Mostly importantly, don't invest in more that you can lose. But probably many people have said this cliché.
2) hedging, that’s what derivatives come into place, and why futures and options function. You need to use these market to hedge your risk. Buy one token at the same time short it if you feel you are exposing to too much of the risk. Buy a call option if you feel like limited your risk at certain level. Finance is interesting and complex to explore.
Questions Asked by our BlockTalks Community Members during live Session to Bit.com Team!!
Q1. As I know, many exchanges have their own NFTs & attract more users towrds their platforms. So Will you create Bit Com exchange own NFTs in future? If yes How can we claim them? Also explain about the utilities & rarities of upcoming NFT mystery boxes?
Ans — Regarding NFTs I recently wrote an article called "3 predictions regarding the crypto market in 2022". If you are interested to know more please find it in my Linkedin, apparently I cant share link in this group. So from my predictoin, NFTs will be more of digital goods than anything else, so please do not godify it. Like your wife's expensive purse, some will appreciate in price some will not.
Yes bit.com has some planning regarding NFTs, not to issue our own NFTs but to offer some NFTs for our users, the popular ones, not anyone. So if you are interested in owning an NFT, please come and join us before Q2 and you will be suprised.
Q2. What trade types do Bit.com allow, do you support copytrading, farming or staking, or Bit.com only supports currency transactions? Can you give us information about Bit.com’s ecosystem, what are the factors that provide both your users and Bit.com’s income stream?
Ans — Copy trading is a good feature, we are in the process of bring it online.
The ecosystem will include our own token as well, like OKB or FTT. But before that, let's focus on getting it stronger and bigger.
Q3. I want to know more about "Rebalancing Market Makers strategy" of bit. com platform? what are its advantages?
Ans — Three advantages, 1 is trading 101, buy low, sell high. 2nd is potential portfolio growth in the range bound market. 3rd is automated trading, trade on you are sleeping and also override human errors. Well, it might be more convincing for people who believes more algos than human.
