Aaron Gong, vice chairman of futures at main cryptocurrency trade Binance, defined to Cointelegraph how the agency managed to develop into one of
Aaron Gong, vice chairman of futures at main cryptocurrency trade Binance, defined to Cointelegraph how the agency managed to develop into one of many prime crypto futures buying and selling platforms.
As Cointelegraph reported earlier this week, Binance just lately overtook BitMEX and have become the second-largest platform when it comes to 24-hour Bitcoin (BTC) futures buying and selling quantity. When requested whether or not he’s stunned by such success, Gong stated that the agency created the product with the plan of changing into the highest Bitcoin futures buying and selling platform:
“We knew we’d be there quickly, and we made it in barely greater than 6 months’ time.”
The explanations for Binance’s futures success
In accordance with Gong, the three major causes behind the success of Binance’s futures merchandise are the low taker charges, new options and a considerable amount of altcoin pairs. He stated that too many exchanges provide detrimental maker charges:
“Too many different exchanges provide detrimental maker charges, the place most orders are simply computerized market makers competing for greatest bid and ask with extraordinarily restricted taker curiosity during times of low-volatility.”
Gong additionally stated that innovation additionally drives buying and selling volumes in the case of Binance’s futures. He claimed that the trade has had a number of firsts in the case of the crypto futures market:
“We’re the primary main crypto trade to launch max 125X leverage for BTC contracts, and the primary of its type to launch cross collateral and good liquidation mechanism. These options have gained large recognition amongst our customers.”
The third motive for the success of Binance’s futures contracts, Gong defined, is the variety of altcoin contracts. He stated that the agency launched 24 futures contracts on the platform, including:
“As of at this time, Binance Futures homes half of the highest 10 most liquid altcoin contracts, lots of that are additionally probably the most traded pairs amongst all futures exchanges.”
Binance’s key to future success
Gong’s technique to drive the quantity of futures contracts on Binance is to proceed bringing extra functionalities and merchandise to the {industry}. He stated that he believes Binance has outdone its rivals, as different crypto buying and selling platforms suffered issues reminiscent of overloads, poor threat administration, and counterintuitive product designs. He defined that Binance’s design was largely pushed by consumer’s complaints about different platforms:
“We particularly aimed to deal with these points and enhance the customers’ expertise. As such, we put large efforts to construct an industry-leading matching engine that is ready to course of greater than 100,000 orders per second. […] While there have been problems with system overloads, outages, glitches, and even rollbacks elsewhere, we’ve confirmed repeatedly to be a protected, dependable, low cost and liquid venue for hedging.”
It’s price noting that Binance’s buying and selling platform bumped into a lot of points in February. On Feb. 19, the trade halted buying and selling to resolve an sudden technical difficulty with its infrastructure.
As a Feb. 25 Cointelegraph evaluation illustrated, this incident passed off after per week wherein the platform was usually unresponsive to dealer enter because the trade was unable to handle a big uptick in consumer quantity.
In early March, Binance halted buying and selling once more to repair a malfunction. The trade’s co-founder and CEO Changpeng Zhao purportedly blocked Jay Hao — the CEO of competing trade OKEx — on Twitter, after he publicly provided to assist repair the infrastructure.
Nonetheless, Gong stated that the malfunctions didn’t have an effect on Binance’s futures buying and selling infrastructure and that futures merchants weren’t affected:
“Our futures system has been proving to be performing effectively throughout probably the most risky interval since we launched. The futures market is working on a separate matching engine.”