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Holding hands with star Messi, expanding enrollment in a bear market, and setting up a 200 million protection fund, what did Bitget do right against the wind?

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The market never fails the builders.

Original source: 0xkkwong

As we all know, the strong regulatory policy released last year is undoubtedly the A hard blow. In the first half of this year, there were many thunderstorms, which directly accelerated the Crypto market into a cold winter.

The industry is cold, and the participants in the centralized asset trading track are the first to bear the brunt. In early October of this year, CoinDesk quoted sources as saying that due to the impact of the market decline, the trading volume of trading platforms continued to shrink. "Some daily trading volumes are less than one million, which is not enough to support operations."

For the bear market, trading platforms usually choose to lay off staff and operate at low cost. Since the beginning of the year, Coinbase, Crypto.com, CoinFLEX, Blockchain.com, and WazirX have successively announced layoffs to varying degrees, with the highest proportion reaching 50%.

However, looking at the global centralized asset trading track, Bitget has embarked on a completely different development path. It not only announced that it will double the number of recruits, but also continues to participate in sports sponsorship, and its global popularity and influence continue to rise.

Compared with the slightly sluggish market, Bitget's development is in full swing. What makes this trading platform "go against the wind"? In other words, what did Bitget do right?

Deeply cultivating the derivatives trading market

Bitget was established in 2018 and initially provided spot trading services for retail and institutional investors. At that time, when there were many competitors and the market structure was uncertain, Bitget did not show its edge.

The turning point happened in the summer of 2019.

At that time, Bitget decided to enter the derivatives trading market on the basis of providing spot transactions. It is not easy for start-ups to start a new business suddenly, not to mention that the market environment in 2019 is not optimistic.

However, in hindsight, Bitget has a keen sense of the trading market, and this strategic adjustment has brought it good market results. Relevant news shows that after launching the derivatives business, the average daily trading volume of the platform will reach US$1 billion in 2020. With the launch of the one-click copy trading function, it has accumulated more than 1.1 million copy traders, with a total revenue of 300 million US dollars.

The first deployment and continuous accumulation have won Bitget a place in the centralized trading market. According to data from CMC on October 28, even in a bear market, Bitget’s 24-hour trading volume exceeded US$10 billion, ranking fourth in the world.

Choose the right track, coupled with continuous construction, Bitget's long-standing advantages and capital have been fully demonstrated in this industry winter.

In June of this year, Bitget announced that it still plans to double the number of employees to 1,000 in the next six months. Undoubtedly, Bitget's market strategy runs counter to most competitors.

In this regard, Gracy Chen, managing director of Bitget, explained: "Bitget's business covers more than 50 countries around the world, and the transaction volume is growing at an unprecedented rate. In the past 12 months, our transaction volume has increased by 10 times At the same time, our global users have exceeded 2 million. Although the encryption market is currently in a cold winter, this gives Bitget an excellent opportunity to recruit talents. Bitget will use this to lay a solid foundation, strive to grow, and prepare for the next Better prepare for a bull run in the crypto market."

According to reports, the number of global employees of Bitget was only 150 last year, and now there are 800. If the expansion of enrollment continues, Bitget’s operating costs will increase accordingly, which is extremely challenging for a platform developing in a bear market. This is not only a test of ability, but also an indirect test of strength.

Global vision and layout

Bitget early accumulation does not just reflect In terms of internal operations, judging from its market strategy and layout, it has been firmly following the globalization route and is also benefiting from "globalization".

After launching the derivatives business in 2019, Bitget set its sights on the global market, began to apply for licenses, marched into North America, and embarked on the road of globalization. Globalization implies choosing a service-oriented and user-attracting development strategy. In the highly volatile encryption market, it is equally important to serve users and launch trading services, as well as the security of assets and funds.

In this regard, Bitget not only improves security from the product technology side, but also sets up a $200 million transaction protection fund. In August this year, the platform announced that it would set up a transaction protection fund worth 200 million US dollars (including 6,000 BTC and 80 million USDT) to better protect user assets, and promised to keep the value of the fund stable at 2 in the next three years. over US$100 million.

On the basis of protecting global user assets, Bitget chooses to open the door to the global market through sports sponsorship.

Last year, Bitget reached a cooperation with the well-known football team Juventus (Juventus), becoming the first sleeve sponsor in its history. This year, the two parties will continue their partnership, with Bitget becoming the team's official armband partner for the 2022-2023 season.

Not only that, Bitget has also established a partnership with the Turkish football club Galatasaray, and signed a contract with the world-renowned football player Keisuke Honda, who will serve as its image spokesperson in Japan.

More notably, Bitget announced a partnership with Messi on October 21. As an international legendary star, Messi is a household name. He has won the European Golden Boot Award six times. In November of this year, Messi will join the Argentine national team as the captain to participate in the World Cup hosted by Qatar, which is his fifth participation in the World Cup. Many people estimate that this is likely to be his last World Cup.

At that time, Messi, who has reached a partnership with Bitget, will provide sports fans with the opportunity to learn about his brand and the world of cryptocurrencies. In this upcoming World Cup sports feast, Bitget will also become the link between the traditional market and the encrypted world, and its brand influence will be further expanded to capture more potential users.

Promote Crypto into the mainstream

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If the bear market expansion and the establishment of a transaction protection fund are taken as Bitget’s internal construction, then it can be seen from its continuous participation in sports sponsorship This trading platform is firmly determined to build the industry.

Sports events are global events, regardless of national boundaries and races, and sports such as football/basketball attract a large number of spectators/fans. By sponsoring sports events that cover a wide range of groups, not only will the Bitget brand be exposed accurately and effectively, but it will also promote more investors in the traditional financial market to touch the cryptocurrency field, and to a certain extent, promote Crypto into the mainstream.

According to the Nielsen research report, from the perspective of fans, they believe that brand sponsorship in sports events is very trustworthy due to their financial investment.

More importantly, relevant data shows that sponsoring sports activities can not only increase brand awareness, but also lead to higher conversion rates. "On average, a point improvement in brand metrics such as awareness and consideration leads to a 1% increase in sales."

Judging from the investment in sports sponsorship in various industries, participants in the cryptocurrency industry are indeed vigorously promoting Crypto into the public eye. It will become a general trend for Crypto builders to link IPs including sports, entertainment, and consumer goods to carry out more cross-border activities.

The development of the industry, Without the efforts and self-improvement of independent individuals, it also requires the determination and confidence of participants such as Bitget in the construction industry.

Conclusion

The cryptocurrency market is unpredictable, regardless of retail investment Investors, platforms or institutions, without exception, must learn to understand/control their respective market risks.

From the standpoint of retail investors, as long as they do not invest in full positions, they can still take advantage of cycle rotation to profit from the market.

In contrast, centralized asset trading platforms face greater risks, and the market is more cruel to its characteristics. Observing from this year's situation, when the cold winter comes suddenly, only those platforms that have accumulated users and funds in the bull market have the hope of persisting to the next cycle.

The market never fails the builders.