Interview with Wang Ruixi, Founder of Hufu: How to be the wind leader of crypto trading track

In 2020, every industry experienced a magic 365 days, no one expected disaster and super bull market to be so seamless in such a short period of time.

From global epidemic black swans, financial market circuit-breakers, drastic changes in the international situation, to national double-cycle strategies, all of them are important factors that will have a profound impact on the future business world. The new economy and new business are changing rapidly, and the structural transformation is also proceeding quietly.

For the cryptocurrency market, 2020 is also a year of "leopard change". Traditional financial institutions enter the market, the price of Bitcoin breaks new highs, and the total market value of cryptocurrency breaks through trillions of dollars, etc., while the trading platform is the most sensitive subject to perceive the pulsation of the whole market. How do players on this track think about the whole industry? Rhythm Blockbeats interviewed Wang Ruixi, founder of Hufu, to see the bull market, the rise of Dex, and the future plans of Hufu from his perspective.

The year 2020

Rhythm BlockBeats:In the last few days, exchanges including Binance, Deribit, FTX, and Uniswap have revealed their results for the past year, and the numbers show how much has changed in terms of volume, product, and ecosystem as the crypto market recovers and erupts. As an important player in the crypto trading circuit, can you give us the overall figures for 2020? What changes have taken place on the platform, and which products are most notable?

Wang Ruixi:The year 2020 is a year of dramatic changes in the industry. Since the official launch of HuFu trading platform in June 2019, we have successfully upgraded to a one-stop blockchain asset service platform with "trading" as the core business, covering various fields such as trading, financial management, lending, fund custody, DEX and project support.

From the point of data, the perplexity of nearly 1.2 million users, registered users, active users reached 50000, from the point of user distribution, give priority to with overseas customers, percentage of the total user, s with Turkey, Russia, Vietnam, Brazil and Germany and other countries, there will be such a situation, because we have some new projects are under way on new this year in overseas communities, such as Compound, Helium, etc.

Thanks to the quick response in popular sectors such as Defi, NFT and Poka, HuFu led the industry in terms of the speed and efficiency of currency listings this year, and the platform also made good returns.

This year, the daily spot trading volume on our platform can reach $430 million, and currently there are more than 330 token trading pairs. The contract sector also ushered in a breakthrough, trading users exceeded 80,000; In addition, the cumulative loan users have also exceeded 100,000, and the total loan amount of the whole platform has exceeded 200 million dollars, and the custodian customers have exceeded 10.

From the perspective of revenue sources, similar to many platforms, Hufu 2020 contract transaction income is relatively high compared with spot income, but spot income is also on the rise, the total revenue is about $100 million.

It is worth mentioning that at the peak of DEFI this year, after we launched the liquidity mining products, the whole platform received a large amount of funds. While ensuring the user's profit, we conducted some hedging operations. In addition, we bought "a lot" of Bitcoin at the beginning of the year, and we made a lot of money just by holding the coins.

Rhythm BlockBeats:In the first few months of Defi's development, the response time of Defi was significantly faster than that of the other large trading platforms. How did the team do this and how did Defi's dividends help Defi?

Wang Ruixi:As we all know, as a trading platform, the core competitiveness is to find the most high-quality assets for users "in advance". In fact, we have been focusing on some excellent overseas projects in 2019. Some projects, such as Uniswap and Compound, did not issue coins. Maybe we did not think about how to develop the token economy in our own ecology at that time.

Last year's DEFI wave started with Compound Coin. When I heard about this, I decided to launch COMP immediately. The reason for making such a decision is that compared with the first-tier trading platform, Hufu does have a certain gap in brand awareness. Therefore, we will launch such high-quality projects in advance. The enrichment effect generated by these projects is bound to bring a lot of users to the platform.

And it did. In the taste of sweet, we in the next period of time successively "first" on-line a lot of new projects, really on the tiger character of the whole business has brought a very big promotion. What impressed me most was that during that period of time, some platforms would even follow the rhythm of tiger sign. After we announced the online time, we soon announced that the online token would be online 1 hour or half an hour in advance.

In the later stage, after we started liquidity mining, the capital volume of the whole platform increased by several hundred million dollars in a short time, which was quite beyond our expectation. I think the main reason for the rapid response in this period is related to the strategy and management style of our research team. It is not a short-term outbreak, but complementary to each other.

Rhythm BlockBeats:Indeed, during that time we can frequently see about the tiger on the coin news, that tiger in the selection of projects or on the coin have what tendency or strategy? Can you give me an example?

Wang Ruixi:In fact, no matter which trading platform, internal screening and online projects are inseparable from two key links, that is, the discovery of projects and selection of projects.

Tiger Fu play is like this: one is in the discovery of the project link. At present, the research team of more than ten people in Hufu will find all kinds of new projects every day from various channels, such as media, Twitter, community, etc., especially in the DEFI section, which is hot this year, all kinds of scripts also come into great use; In addition, Hufu's capital and large resources, such as KOL, will also provide us with new information. In addition, Hufu is also the LP of many investment institutions, so the information collected from various aspects will continuously supplement our project database.

The second is the screening and implementation of the project. In fact, the evaluation indicators of potential projects also cover the team, project potential, community popularity, investor background, etc. In accordance with the trend and trend of the market, we will speed up the rate of offering currency, or even "jump the jump".

How to grasp the flow of "people" and "resources" in the whole market, as well as the focus of the community, is the most important thing for platform practitioners.Such as previously Filecoin, Polkadot, now Layer2, stable currency, attracts the most attention you need to quickly respond: projects such as these often take "premium effect", the relevant project project performance is much better than that of the other plate - they settle money always more, this case, we will also increase accordingly resources or capital investment.

The innovation of tiger character

Rhythm BlockBeats:We know that Hufu recently launched a "small unit of bitcoin" product. Is this a product specifically designed for this bull market? Why do small bitcoins? Who is it aimed at?

Wang Ruixi:In fact, the Bitcoin community has long discussed about the "smaller monetary unit" Bitcoin, and finally decided in 2010 to measure Bitcoin, bitcents, millibits (MbTC), microbits (UBTC) and cong, and stipulated that 1BTC is equal to 100 million satoshi.

The main idea behind the concept is to break new users' perceptions of bitcoin and thus increase their acceptance of it. For investors on the fence about whether to enter the market, a bitcoin price of more than $200, 000 is often a deterrent, but if it is a small bitcoin, it means that you can become a bitcoin holder for as little as $1,000, or even $100.

On December 23, Hufu has launched a small unit of measurement MBTC and UBTC bitcoin. Users can buy bitcoin with a very low threshold, which is very suitable for small and medium investors.

Rhythm BlockBeats:Tiger Fu has been on the structured products to do innovation, such as the right to return currency or insurance rights and interests, these spot and option combination of products or the main direction of the current tiger Fu?

Wang Ruixi:For the crypto market plus trend, we have a judgment: the entire crypto financial derivatives category will usher in a new wave of outbreak. There is a hundred-fold growth space between the volume of contract products and spot products, and Hufu will continue to pour more resources into the whole financial derivatives.

In terms of structured products, last year we pioneered the introduction of Talgo tokens, which symbolizes the right to return money when purchasing Algoand, and then we launched T-series currencies such as Tcocos, which have their own features. From the perspective of the platform, the launch of such products by Hufu at that time really greatly satisfied the investors' opportunity to gain greater profits while controlling risks. Because of the earlier attempt, such equity toinization products also naturally became Hufu's label.

When the whole market is in a downturn, investors who are strapped for funds are not willing to invest in projects with high capital costs, and fewer project parties adopt this model of financing, so the discussion about this kind of products will gradually decrease.

Reflections on the industry

Rhythm BlockBeats:Is the rise of Dex like Uniswap a blow to Tiger? How to deal with such competition?

Wang Ruixi:From my perspective, the rise of Uniswap has not been a huge blow to CEX. Entrepreneurs in the crypto industry know that the market has changed dramatically since the crypto business matured, with hot spots always coming and going.

The acceptance of CEX by users is a cumulative accumulation of the entrepreneur's technology, products and services, including the rise of Uniswap, which did not happen all at once. The crypto market has gone through waves of hot spots like dApps, IC0, IE0, and Defi in recent years, but it's the established platforms that have survived.

In this process of change, the foothold of entrepreneurs on the trading track is: on the premise that the trading behavior has been recognized, the platform needs to do from the perspective of users, to meet the market demand to the greatest extent.

As for the impact of Uniswap on Dex such as Hufi, I think the user groups of the two services are different. For example, Uniswap is more for "professionals" in the blockchain industry and realizes "internal promotion". The characteristics of the centralized platform determine that it is easier to drain out of the circle. Different division of labor, decided that the two will not be absolutely opposite competitors.

Of course, there is no doubt that platforms such as Uniswap will have an impact on CEX in the short term, but on the other hand, CEX can also leverage Uniswap's liquidity to maintain existing users and attract external traffic while providing a good trading experience for users such as depth. In addition, for investors outside the circle, they pay more attention to compliance than high risk and high return, and the centralized trading platform is making steady progress in risk control and compliance.

Rhythm BlockBeats:In the macro environment that continues to release water, how does HuFu view the crypto market trend in 2021? Will there be layout in some popular tracks such as Poka, Crypto Finance, Layer2, NFT and so on? In addition, what are the team's new plans?

Wang Ruixi:Facing the treacherous crypto market, the best way for entrepreneurs is to grasp the trend under the premise, personally participate in the end. Over the next year, we will be looking at which of these hot tracks and changes can be linked to our trading business, and the core criteria will be whether we can provide better services to our customers.

For high profile tracks like Boca, Defi and NFT, we will closely monitor the progress of the projects and decide whether or not to launch tokens, but we will also select some projects to invest in. Only the projects that have invested money will we know more about the operation behind them.

At present, the team of HuFu is close to 200 people, which is not a large scale. However, in our plan, we will not blindly expand in the next year. The core of our plan is to focus on efficiency and strive to find a balance between product diversification and verticality.

In 2021, we will further optimize spot and contract products and continue to increase resource investment in the OTC segment. What can be revealed is that,We are currently working on an IPO and will disclose more information in the future.Bitcoin is a market with trillion-scale potential, and I am confident to lead my team to ride the waves in it.

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