Singapore – From its first client way back in September 2017, it has been clear for leading blockchain technology service provider ChainUP how important liquidity is for an exchange.
Zhong Gengfa, CEO and founder of ChainUP, has often mentioned that high-quality assets are crucial to the development of an exchange and that on an exchange, liquidity constitutes the core experience.
Li Lin, founder of Huobi exchange seems to concur, having once commented that: “Asset volume and liquidity are the core indicators of the strength of an exchange.”
And hence began the conceptualization of ChainUP’s liquidity brand BitWind. By combining the liquidity of 300 global exchanges serviced by ChainUP, the BitWind liquidity product creates a liquidity experience comparable to that of a top exchange. This helps novice and operating exchanges to increase their transaction volumes.
To date, ChainUP has created eight well-developed product lines which include whitelabel exchange solutions, liquidity, wallet, public and alliance chains, situational awareness, blockchain cloud media, mining pool and broker services.
The Liquidity Solution
In traditional markets, liquidity plays a critical role. Even more so on crypto markets. When a crypto exchange has high liquidity, tokens can be quickly bought or sold in the market and easily converted to other tokens or to cash. Factors like market depth, exchange transactions, number of users, level of activity and amount funds transacted all impact liquidity.
The second half of 2019 saw exchanges confronted with a severe challenge – the battle for more liquidity. Exchanges already had to deal with infrastructure issues and had to look into technical services, situational awareness services, professional quantitative market-making platforms, market software, and decentralized asset derivatives. Hence, it became a trend for professional service providers to jump at this unprecedented opportunity.
BitWind Director Gino shared with Jinse Finance that many customers encountered standard difficulties when operations began. Typical feedback was that lack of liquidity was a pivotal pain point that exchanges faced.
After requiring more than six months to hone, the independent BitWind liquidity brand was finally launched. Targeted to meet user needs by providing the best market depth and trading experience, BitWind’s goal was to help exchanges increase trading volume and implement operations smoothly. Mainly created for B2B businesses, BitWind can also cater to novice exchange teams, operating exchanges, brokers, wallet dealers, institutional traders and others.
Deeper Liquidity Pools, Capacity to Operate More Freely.
BitWind is positioned at the center of the ecology and aggregates the liquidity of more than 300 exchanges. The ‘upstream’ provides liquidity for the ‘downstream’, creating a liquidity pool that has the capacity to service all mainstream currencies in the market.
Just by adding a trading entry on their platforms, exchanges can provide trading services to their end-users who can access the shared liquidity and aggregation market of the underlying trading network.
Besides spot liquidity, BitWind also supports ChainUP’s privatized ETF liquidity and platform currency liquidity. When an exchange opens a credit account, it can access the liquidity pool as well as create liquidity more freely from the leverage function. With a dedicated network price aggregator that provides the fastest price quotes and ultra-low delay orders, BitWind’s
other features include low-buying and high-selling, one-click trading and one-second price comparisons.
New exchanges hence have access to sufficient traffic, optimal quotes, the best market depth and lower spreads, avoiding the risk of arbitrage losses while increasing trading volumes. The liquidity product allows leverage of operating and capital value in a bear market, while in a bull market, it allows exchanges to maintain their competitive edge and grasp market opportunities.
The more than 500 global customers ChainUP currently serves are made up of over three hundred crypto exchanges, over one hundred and fifty liquidity customers and over a hundred digital wallet customers, who come from more than twenty countries in Southeast Asia, Europe, the Middle East and America. Their millions of users constitute the massive aggregated user volume, thereby naturally creating liquidity. The synergies of all the flows in the ecology form siphoning effects which create positive cycles that are sustainable.
A Differentiated Competitive Advantage
Gino points out what sets BitWind apart from its competitors – three hundred exchange depths, comprehensive transaction functionalities, high-performance matching engines, minimum transaction delays, 3 to 5 times spot leverage allocations, support for a hundred public chains and eight major protocols and powerful technology.
Furthermore, ChainUP’s core technical team possesses BAT (Baidu, Alibaba and Tencent) “genes”. Founding members such as Jun Du, Hu Donghai and others have deep, professional knowledge and experience of the industry.
Of special mention is how ChainUP has always retained its position as a dedicated technical service provider. It has chosen not to branch off into other areas in the event it might cause conflicts of interest with their customers.
All these factors contribute to BitWind’s competitive advantages over its peers.
BitWind Saves Small and Medium Exchanges from a Cold Start
The lack of users and trading volumes have forced many small and medium exchanges to shut down. The BitWind product takes on the role of a large customer who places sizable numbers of purchase orders, This access to instant liquidity is what saves new exchanges from a cold start, allowing them to shift their focus on customer acquisition and retention, avoiding the risks in market making altogether. ChainUP’s BitWind has certainly proved to be a masterstroke in the industry battle for liquidity.
ChainUP is a leading blockchain technology solution provider in the world. It owns eight well-developed product lines: digital currency trading (financial derivatives), wallet, situational awareness, public chain and consortium blockchain, mining pool, blockchain cloud media, liquidity, broker, and has constructed an industrial closed-loop from technology service to traffic and traffic commercialization. So far, it has served 300+ exchange clients, 100+ digital wallet clients, 150+ liquidity service clients, which include 50+ million users in over 20 countries from Asia, Europe, America and Oceania. The team members behind ChainUP have worked in top blockchain or internet companies and institutions in technological development and operation management, and are highly experienced in the blockchain industry. It has obtained several rounds of investments from well-known top institutions in the industry, such as Morningside Venture Capital, Joy Capital, Node Capital, Albatross Venture, Taoshi capital, amongst others.
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