IOSG: Briefly describe the characteristics of successful trading platforms and Ethereum 2.0 investment opportunities

Original source: IOSG

Derivatives

  Source: *Coingecko*Binance user data includes spot trading platforms.   

@IOSG VC: 

We see that successful trading platforms have the following characteristics:

1. Solid technical foundation. This is reflected in the performance of the trading engine. For example, Deribit currently dominates the options market due to its unique options matching engine technology. In the current traditional market, the Shenzhen Stock Exchange's matching engine has the best performance, and can process 250,000 transactions per second, corresponding to 100 million real users. However, most current derivatives trading platforms cannot reach this technical level.

2. Innovative product strategy. Bitmex created and focused on perpetual contracts, Deribit focused on options, and FTX's product strategy is to provide a wide range of derivatives, including leveraged tokens. These strategies can successfully bring their target customers and traffic. For example, FTX's trading volume has increased by about 40 times since the platform went online as of February.

3. Excellent team. We see that successful trading platform teams meet two types of experience: a) profound knowledge of financial derivatives; b) the ability to build trading systems. Arthur and Samuel of Bitmex, Sam and Gary of FTX, and Ben and Bonnie of Bybit all have such qualities.

4. Strong market appeal. Reflected in trading volume (reasonable compared to open interest), daily active users/total registered users, the number of BTC in cold wallets, revenue and profit levels, etc. Deribit, FTX, Bybit and Bitmex all have very impressive data.

What are the opportunities for investors in ETH2.0?

@IOSG VC:
First of all, the staking economy will become the main engine of open finance, because the incentive mechanism of the staking model will attract more people to provide liquidity for the entire ecosystem. An example is that platforms like MakerDao and Compound, which have a large number of Ethereum native assets, may also provide proxy staking services to attract more users to participate in the open financial ecosystem. Financial liquidity will be much better than it is now. In addition, the changes in the virtual machine and smart contract writing language on Ethereum also provide opportunities for "middleware tools", and they will continue to work hard to lower the development threshold. Finally, the above factors will also greatly stimulate the innovation of some middle-layer protocols in the future.

Galaxy Digital's investment in Pantera Fund suffered a net loss of 87%

@IOSG VC: Since the price of the primary market changes more slowly than that of the secondary market, the real value and liquidity of this part of the investment are questionable. The loss of the Pantera ICO fund, to a certain extent, represents the current market value of these primary market investments. We found that some IC0 Tokens and some altcoins are very unstable. At present, we believe that the investment in the secondary market should still be mainly based on Bitcoin. We found that Galaxy Digital has also simplified its investment portfolio in the trading section, mainly investing in Bitcoin, USD coin, Tether and other mainstream cryptocurrencies. Original link: https://mp.weixin.qq.com/

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