As the blockchain industry evolves, we are witnessing quality projects in this space. And one company that is leading the pack is BitMax. In fact, in a very short amount of time, BitMax has emerged as a strong player as a cryptocurrency trading platform.
And we wanted to learn more, so we got in touch with George Cao — the CEO and founder of BitMax — to explore the hidden secrets around BitMax. In fact, in this interview, you will learn all about BitMax, its reverse mining model, the BTMX token, current challenges, and the future growth.
Here is the entire interview:
1. Can you explain BitMax in a simple language?
BitMax.io has established itself as a clear leader in the crypto trading and exchange space as the next third-generation digital asset trading platform. The latest user-friendly and trader-focused exchange model is that of “Reverse Mining” and BitMax.io is the first exchange that introduces this ground-breaking concept to differentiate liquidity maker vs. taker in all the transaction-mining exchanges.
This ingenious design is built upon the core trading concepts of successful Wall Street exchanges, the area where our teams have tremendous amount of experience.
This strengthens BitMax.io’s strategic leading position as a top competitive market leader in the crypto trading and exchange space and will further work to benefit the platform’s global user base in the near future.
What we did through innovation of transaction mining / reverse-mining is actually to make huge stride in advancing crypto trading and investment from more of short-term speculator driven perception to mid-to longer term investment mindset in prep for real entry to institutions.
2. What is so exciting about BitMax that everyone should know about?
(A) Reverse-Mining – Most of current exchanges only have transaction mining model which is the process where the users get platform token by trading on the platform. But we came up a one-of-kind separate incentive structure specifically for the Maker trades – the trades typically providing liquidity to the market.
As part of the process, the user gets rebates by executing Maker trades and then equivalent market value of BTMX token being deducted from user account for permanent lock-up.
In essence, this design not only encourages the users to provide liquidity on our platform but also permanently removes those BTMX deducted from the user account from the market supply.
(B) Data Usage Fee Pool – To build better trading analytics, BitMax.io will pay for BTMX usage data collected from users with 80% of BitMax.io’s net transaction fee revenue.
Therefore, this will provide additional incentive for users to hold BTMX tokens. Furthermore, what differentiates us is the introduction of stabilization mechanism including the set-up of Data Usage Fee Pool (“the Pool”) and daily distribution back to token holders 1/180 of the Pool balance.
This design focuses on the longer-term of token liquidity and value sustainability.
(C) Third Generation Exchange – First generation: regular crypto- trading exchange; second generation: trans-fee-mining-driven exchange; third generation: innovative digital asset exchange that builds on the strengths of first and second generations and further incorporates the ingenious design of reverse-mining and other trading efficiency features.
The main objective here is to support the enhancement of cryptocurrency market structure and lay the foundation for more opportunities with global traditional and institutional investors.
3. Where is the BitMax (BTMX) token used for? What are its advantages?
BTMX is the sole utility token that can be used on BitMax.io platform for payment related to different add-on benefits and services.
The key advantages of using BTMX include:
- To purchase different levels of VIP memberships that provides transaction fees discount for regular trading, increasing BTMX daily net-sell limit for large-sell order;
- To get higher individual share of platform data usage fee distribution;
- To participate in the pre-sale quota of high-quality primary list projects on BitMax.io
4. What is the ONE biggest challenge BitMax is facing and solving right now?
Constantly improvement of web front-end user interface and experience has been our top priority since the launch of the platform.
As you know, all the Wall Street high-frequency trading platforms do not actually have a web front-end for order entry and execution but all are connected and processed through direct native connectivity with exchanges for complete security and execution speed reason.
Therefore, from day one, we clearly recognized this is the development area that we need to devote resource, get feedback from our user communities and other investors and constantly work to enhance.
We have built a team of web front-end development and product management who work around the clock on that.
5. What led to the foundation of BitMax? What is the story and idea behind it?
BitMax is integral part of global digital asset trading platforms that we are looking to build from Asia to North America. It has been an exciting experience for us, a group of quant trading veterans, to jump from the traditional Wall Street to crypto trading highway.
I came about the idea late last year when I was discussing with my partner, Ariel, about all the basic components of blockchain technology and how they are and will be impacting different parts of finance world from trading to banking payment processing. Three main drivers for us to start this projects:
(A) To learn more about blockchain technology and its transformational applications in different industries;
(B) To leverage in-depth traditional finance expertise to improve overall crypto trading and exchange market structure for better efficiency and transparency;
(C) to have a chance to work with a super talented and driven team who share similar vision, passion and conviction to build more advanced global digital asset trading platform that combines the best from both worlds as well as a wonderful organization from good to great!
6. What barriers of entry have you identified during the process of launching BitMax?
Key barrier of entry is really about having the right team of resource and talent, experience and industry-wise, to build the platform in the most expeditious way from speed to market perspective as well as with the razor-sharp focus on the scalability, security and stability of the trading infrastructure and business model front-to-back.
We are very fortunate to have a solid group of founding members with same level of financial trading expertise and same level of passion and vision.
7. Can you please tell us about your background and your team?
As the founder, I graduated from both the University of Chicago and the University of Science and Technology of China. After receiving Ph.D. in Computer Science, I worked at Wall Street Knight Capital and Barclays Capital specializing in quantitative trading and venture capital.
Later, as CEO for the quantitative trading fund Delpha Capital Management, I successfully identified, invested, and incubated several blockchain projects in New York.
BitMax.io’s core management team consists of Wall Street veterans and quant technologists from world-class financial institutions such as Deutsche Bank, Goldman Sachs, Morgan Stanley, Bloomberg, AQR, etc. with diverse educational background of top-tier universities including Columbia University, University of Chicago, New York University Stern MBA, Carnegie Mellon University, Peking University, Tsinghua University, etc.
With average of over-ten-year professional experience, the team has developed in-depth expertise in the design and buildout of institutional-level trading platforms as well as solid understanding of capital market structure and regulations with co-founder, Ariel holding trading principal licenses – probably the only one in the digital asset trading space holding those licenses.
Clearly, all those are the competitive advantages that other exchanges might find hard to achieve.
8. How do you perceive blockchain technology? Where do you think it is it heading in the next five years?
Blockchain technology reminded me of Internet in the late 1990s – nascent industry with huge potential from both social impact and economic development perspectives. The technology, built upon the decentralized community-based structure and advancement of computing power, definitely has already started making huge progress with different applications from commercial banking, cross-border payment, enterprise software to quantitative scientific research across all the major industries.
In the next five years, there should be exponential growth with the maturity of the technology as well as the expanded adoption among wider group of users. For what we do in terms of digital asset exchange, it is the cornerstone to this fast-growing industry in terms of providing fund raising opportunities for those projects as well as helping investor with trading opportunities for market liquidity.
9. In the next six months, how are you going to attract people to BitMax?
Through good reputation, good token metrics, and sincere attitude.
10. What is your expansion strategy? Are you going to focus on anything specific in the next six months?
For BitMax.io in short-term, we will definitely focus on the launch of this ingenious trading model of transactional mining and reverse-mining that we are pioneering in the industry. This is very important part of our exchange liquidity strategy for immediate user expansion and volume attraction.
However, we all recognize the short-term nature of the transaction mining effect on volume. But we will take this opportunity to build out our team, our platform, our community as well as our business model to make sure we are strong, resilient and scalable.
We continue working on the implementation of our global footprint in terms of pursuing regulatory paths for launching the digital Asset trading platform in North America – Canada and US. This will be core part of our key priorities for next three to nine months, as we expect more growth from institutional clients in those regions.
As the crypto market develops and expands globally, we view that traditional institution participation is a must, in order to upgrade the overall market structure, and more importantly to enable the real broad-base adoption of digital assets. Only when those big institutions (like investment banks, asset management, etc.) join the market, will there be real revolutionary improvement and expansion of the crypto market.
And BitMax.io and its other global trading platforms will be ready for that!