Rhythm AMA | Dialogue with Matrixport CEO: Value-added investment in the bull market

Beginning in October this year, the encryption market has been undercurrents, and Bitcoin has hit historical highs several times, approaching $20,000. However, risks and opportunities coexist, and not every investment can get the expected return under the big market. Under the bull market, how should we choose to invest?

BlockBeats invited Ge Yuesheng, CEO of Matrixport, a one-stop encrypted financial platform in Singapore, to chat with you "Value-added Investment in Bull Market".

The following is Rhythm AMA  "Conversation with Matrixport CEO: Value-added investment in the bull market" full record, Enjoy~

Rhythm BlockBeats: First of all, let's enter the first question, which is the introduction link as usual. Although the name Matrixport has been deeply rooted in the currency circle, we take care of some new user groups. Please, Mr. Ge Yuesheng, briefly introduce Matrixport?

Ge Yuesheng:Matrixport is Singapore's one-stop financial service platform is also called Matrix in China. Our positioning is to be a digital currency bank. Matrixport was founded in 2019. At that time, our original intention of doing Matrixport was to see that digital currency became more and more mainstream, and the total market value of digital currency became larger and larger. More and more people hold digital currency.

But in the industry, most people still use the exchange as a wallet. The main function of the exchange is It is still about transactions: investing and speculating rather than banking services. So we found this relatively obvious market demand. So we made the Matrixport brand.

From the product level, we provide several types of services: one is hosting service, you can safely Use our Cactus Custody custody to keep your digital currency; the second is wealth management, you can see a variety of financial products in the Matrixport  APP: high-yield, stable-yield, and aggressive Yes, structured. We also do digital currency mortgage lending business. You can mortgage your digital currency to borrow another digital currency or stable currency. In addition to this, we also provide trading services. We currently support transactions between more than a dozen digital currencies. Of course we also have OTC service in USD. We are mainly for institutions and ordinary users who hold digital currency.

Rhythm BlockBeats: Since October, the market sentiment has been very high, and BTC has hit the $20,000 mark several times. Whether the price of BTC can reach this year Everyone is looking forward to the milestone, what is your prediction? What are the corresponding products on Matrixport?

Ge Yuesheng: Personally It is believed that the current bull market is in the early stage, and it is obvious that the market is bullish, coupled with the enthusiasm for Bitcoin in the US capital market, and the big bull market in the US capital market. So I think it is inevitable to break through the previous high.

On the matrix, we have a product called Trend Zhiying. There is a very big advantage in such a market. The simple explanation of the logic of this product is that if you are bullish, you can buy the bullish trend Zhiying. If the final price is not bullish, you can still get a capital-guaranteed income. If the price does rise, you can get an annualized income of 20% to 30%.

Rhythm BlockBeats: I saw that "Trend Zhiying" has a guaranteed bottom line, how is this achieved?

Ge Yuesheng: Like this Products are more interesting than fixed-income products and more suitable for buying in a bull market. The reason why we can achieve high returns while maintaining capital is because our company has a lending business. So when your digital currency invests in our products, we can give you a very stable interest income. Then we use this interest income to buy a series of option combinations to achieve the effect of trend wisdom.

For example, if BTC is used as a mortgage loan, it can have 4-6% interest income, and we take the Part of it, such as 4%, buys options, which can achieve additional income during the rising market, that is, the profit of options.

Rhythm BlockBeats: At present, Matrixport’s products are mainly concentrated in the four currencies of USDT, USDC, ETH and BTC. Why? Haven't launched more currency options? In terms of product launch and specification, what are the considerations?

Ge Yuesheng: Before we In the defi business, BCH is also included. The reason why there are no more currency choices is that the core lies in the support of lending business and option business. Rich wealth management products need the support of lending and options. The current mainstream borrowing demand in the market is stable currency, BTC and ETH, and other currencies are relatively small. Of course, filcoin is very popular recently, and BCH was also very popular some time ago, but this demand is not stable. In addition, there are options, and there are no standard non-btc and eth options yet, and this area needs to be improved.

Currently, we are already developing small currency lending business and small currency option business. It won't be long before everyone can see richer currencies.

Rhythm BlockBeats: Matrixport has a coin hoarding function, which is an investment product with leverage to do more. Since it can only do more, then this product Yes, which trading platform did you connect to? Can you explain the operation logic of the product?

Ge Yuesheng:< /span>Our currency hoarding leverage business and hedging business are all connected to our own trading engine. At the same time, our trading engine is connected to all mainstream exchanges on the market, including some off-exchange OTC liquidity providers.

Our logic for making this product mainly depends on our company’s lending business. Our borrowing scale has also been very large. We have a large number of various digital currency positions available for lending. So when you use our products, for example, if you are long, it means that we have lent you a stable currency to buy a currency. If you are short or hedging, it means that I will lend you You bought this digital currency, and then you sold it on the exchange.

Compared with other products, including futures, the core advantage of our product is that our interest rate is very low. Because we are in the lending business, our interest rates can basically be considered as inter-institutional interest rates. The interest rates of non-retail users can be compared by comparison.

Secondly, our mechanism is very flexible. In our next version, we can use one margin to do all the other Currency, the core reason is also because we mainly do lending business, and we have positions in various currencies. We don't necessarily need a single currency. For example, if you want to hedge ETH , you can also use BTC  to do it. We will be on this version next.

Rhythm BlockBeats: Well, seeing that you said your own trading engine, does Matrixport also have plans to launch an exchange?

Ge Yuesheng: Trading Engine It does not mean an exchange, although we also have an exchange bit.com that focuses on options. The main function of the transaction engine is to provide price routing and place orders to the place with the best price.

Rhythm BlockBeats: As mentioned before, the purpose of users choosing coin hoarding products is to increase profits but also hope to reduce risks. So what if the user performs risk control? Does the platform have corresponding products for coin hoarding products that can help users hedge risks?

Ge Yuesheng:If you want To carry out risk control on the basis of hoarding coins, especially if you buy some products to hedge risks, we strongly recommend buying options to hedge the risk of falling prices. At the same time, we can also provide this kind of customized service.

If you buy an option of the same amount on the liquidation line, you can guarantee that you will not liquidate your position Realize long leverage under certain circumstances. Of course, you have to pay an additional option fee. This operation is still cost-effective for many users. Although he paid a fixed cost, he was exempted from the risk of liquidation due to price fluctuations. In most cases, it is also very cost-effective.

If the price can really rise, the increased income can completely cover the option premium. Because we also have a bit.com options exchange. So when we make this type of product, we can be very flexible. And the price of our options is also one of the best in the market.

Rhythm BlockBeats: There are many wallets and Exchanges use their natural advantages to launch similar products. In comparison, what are the advantages and attractions of MMatrixport?

Ge Yuesheng: Let me come Let me share the advantages of Matrixport as a whole, and only talk about a single product. It is difficult to compare one by one because each company has its own characteristics. But if you look at Matrixport and wallets and exchanges as a whole. Our biggest advantage is that when you deposit digital currency on our platform, you will feel that this platform is a bank.

The reason is because you can see a wealth of financial products, a lot of functions, and a variety of services. This is completely different from what you feel when using it in your wallet. I believe that users who have used it have this experience.

For example, only financial products on our platform can reach dozens of categories. There are many types of dual currency investment, Trend Zhiying, defi, fixed income, and funds. But usually wallets and exchanges are not so comprehensive, they may only have one or two of them.

Second point, the products we have launched are basically the latest in the market in terms of volume number one. At the same time, it also proves that we can do more professionally when making this type of products. This is also our main business and our development direction. This will also have some differences from wallets and exchanges, because their financial management or lending may not be their main business.

The third point is service. We believe that we understand the financial needs of customers in banking business better. So we are serving this area, and we believe we can do better than others. Users who have used our products should still have a say.

Rhythm BlockBeats: After the launch of the ETH2.0 beacon chain, a hot spot in the market is focused on Ethereum, and the transformation of Ethereum may be The PoS craze has been triggered again. Does Matrixport have products for Ethereum 2.0 in the future?

Ge Yuesheng:We are currently A tutorial has been released for ETH2.0 to help customers, and at the same time, we can provide free ETH2.0 staking services for some of our VIP customers. But we don't have a very targeted product yet. The reason is that ETH2.0 currently does not have a particularly good opportunity for institutions like us to participate. It itself has been locked for too long, and the financial benefits are not very high in terms of horizontal comparison. If we launch such a product, customers may buy such a product because they trust us, and we need to take greater responsibility.

This is also related to positioning, because our positioning is a bank, it may be different from the wallet, and the wallet is launched This kind of product, customers buy it as soon as they buy it. I don't think there is any problem with this. But when he is on a platform, he has a lot of choices, and when some products have higher flexibility and yield than ETH2.0, we push ETH2.0 to him, and customers may blame us for this.

So we should measure this matter more from the perspective of financial management, whether its income is high enough, whether the product flexible. Therefore, we have not launched it yet, and we have not found a good solution to liquidity. Once we fix those issues, I'm sure we'll roll it out too.

Rhythm BlockBeats: Rhythm wrote an article "Bitcoin Custody: Grabbing a Potential Market of $140 Billion", there is a thought in it: why is there no company in Asia that is comparable to Grayscale? What is your opinion on this issue? Has Matrixport considered making trust products similar to Grayscale?

Ge Yuesheng:This core The reason does not lie in the company, the core reason lies in the regulatory system. As we all know, the U.S. leads the world in terms of digital currency regulatory system. The U.S. should have held hearings and started the legislative process in 2012. But if you look at Asia, whether it is Singapore or Hong Kong, they are far behind the United States. As a result, even if you want to make a trust product like Grayscale, it is difficult for you to do it in Asia, and the time is not ripe.

In terms of long-term planning, we definitely hope to make a trust product like Grayscale. But the premise is that the regulation allows us to do it. There is already a way forward in laws and regulations, but there is no such thing at present.

Rhythm BlockBeats: What are the development plans for Matrixport in the future? Can you tell me what new products will be launched in the near future?

Ge Yuesheng:In the long run, Matrixport The positioning is still a digital currency bank. Therefore, it is also a major development direction for us to constantly introduce new products.

Recently, I think there is something that I can mention is our bit.com, which is the main options exchange. The market share has been ranked second in the market. If you are interested in trading options including perpetual futures, you can go to bit.com to have a look: https://www.bitexch.io/ We are first-class in the market in terms of in-depth rates and services.

Besides, in the Matrixport APP , we will basically maintain a new product every week Rhythm. So if you are interested in BTC financial management, digital currency financial management, including lending, etc. It is recommended that you can download the APP, and you can browse and have a look by yourself.

Our No. 5 and No. 6 funds will be launched soon. It also sells better. Our No. 1 Fund and No. 2 Fund are a Bitcoin fund and a us dt fund respectively, with annualized returns of 25% and 28% respectively. And its strategies are all market neutral, regardless of ups and downs, there is basically no retracement. Fund No. 5 and Fund No. 6 are currently very tight. If you are interested, please contact our sales to make an appointment.

Rhythm BlockBeats: Thank you for your wonderful answer. The following is the community question session. The boss Ge Yuesheng will randomly select users' questions to answer.

Community question 1: NFT is very popular recently, will Matrixport support NFT product transactions and pledge services in the future?

Ge Yuesheng: Currently No related plans.

Community question 2: Trend Zhiying’s annualized income can reach 25% and 28% respectively. Why can the interest rate be so high?

Ge Yuesheng:BTC is in The inter-agency market interest rate is 4-6%, and USDT is 6-10%, which is generated by borrowing. If you are asking why the fund can generate such high returns, it is because the fund manager's strategy is powerful. We work with the top funds and their best strategies, so they can generate income significantly above the market level.

Community question 3: How does Matrixport view the incident that the key members of BitMEX were wanted a while ago? What is Matrixport's attitude towards regulation?

Ge Yuesheng:We don’t The U.S. business also has no U.S. customers and would not be at risk from them. The company now has licenses in Hong Kong, Switzerland, and Singapore, so our attitude is that we will actively obtain licenses wherever we can.

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