May 12, 2020, Singapore. Liquidity in crypto exchanges generally refers to the ease with which tokens can be converted to other tokens or cash. This is closely related to the depth of the market and the volume of exchange transactions and to the number of users, the level of activity and the amount of funds traded.
While liquidity is important in traditional equity markets, it plays an even more important role in crypto markets.
Liobi’s founder, Li Lin, commented on an article on exchange data as follows: “Asset volume and liquidity are the key indicators of the strength of an exchange«.
As well Zhong Gengfa, founder and CEO of ChainUPhas mentioned many times the importance of high-quality assets for the development of an exchange and how liquidity is the core experience of an exchange.
ChainUP has recognized the importance of liquid products on a stock exchange since its first customer in September 2017. As a leading provider of blockchain technology services, ChainUP has formed 8 mature product lines. These include cryptocurrency exchanges, liquidity support, wallet, situational awareness, public chains and alliance chains, mining assemblies, blockchain cloud media and brokerage services.
The BitWind brand integrates the liquidity of 300 exchanges worldwide that are served by ChainUP. The aim is to create a liquidity experience that is comparable to that of the major stock exchanges and to increase the transaction volume.
The liquidity solution
In the second half of 2019, the stock exchanges faced major challenges, the struggle for more liquidity. However, this could also be seen as an unprecedented opportunity. Given the competition between exchanges that shift to infrastructure factors such as technical services, market software, situation awareness services, decentralized asset derivatives and quantitative professional market making platforms, the general trend is that professional service providers are stepping in to this “liquidity” competition.
“We see that many customers encounter standard difficulties when commissioning,” said Gino, director of operations for liquidity products BitWindto Jinse Finance. “A common answer from our growing customer base was the crucial role that liquidity plays in the operational business. It is a crucial pain point in the exchange. “
To meet customer needs, the development of the independent liquidity brand BitWind launched by ChainUP took over half a year. The aim was to offer the best market depth and trading experience and to help the stock exchanges to control processes smoothly. Although designed for B2B companies, the product can serve the range of inexperienced exchange teams, operational exchanges, wallet dealers, brokers and more.
Higher liquidity, more freedom of action
By establishing BitWind as the center of the ecosystem and adding liquidity from more than 300 exchanges in the “upstream” to provide liquidity to the “downstream”, The BitWind product has created a liquidity pool that can serve all major currencies in the market.
Exchanges only need to add a trading entry on their platforms to access the common liquidity market and aggregation of the underlying trading network and provide trading services to their end users.
BitWind supports spot liquidity, privatized ChainUP’s ETF liquidity and the liquidity of platform currencies. A stock exchange only needs to open a credit account to access liquidity and create more liquidity from the leverage function. In particular ChainUP has a dedicated network price aggregator with the fastest price offers and extremely low order delays, with features like one-second price comparisons, one-click trading, as well as low purchases and high sales..
Through ChainUP, Emerging exchanges can directly access sufficient data traffic, optimal quotes, lower spreads and the best market depth to avoid the risk of arbitrage losses and increase the trading volume.. In a bear market, you can use both the operational value and the stock value. In a bull market, you can maintain your competitive advantage and take advantage of market opportunities immediately.
ChainUP currently serves more than 500 global customers, including more than 300 cryptocurrency exchanges and more than 100 digital wallet customers in more than 20 countries in Southeast Asia, Europe, America and the Middle East. The enormous total user volume of millions of customers naturally creates liquidity. BitWind serves more than 150 liquidity customers. The synergies of the different currents in the ecosystem form siphon effects that generate sustainable positive cycles.
A differentiated competitive advantage
«BitWind It has 300 liquidity exchanges, extensive transaction functions, powerful pairing engines, powerful technology, 3-5 times spot leverage allocations, minimal transaction delays and support for 100 public chains and 8 main protocols. »Gino said about the benefits of Bitwind’s liquidity product.
ChainUp’s core technical team also comes from BAT funds (Baidu, Alibaba and Tencent). Jun Du, Hu Donghai and other members of the founding team have a deep and professional understanding of the industry and ChainUP has insisted on being a dedicated technical service provider. These are all factors that have contributed to BitWind’s competitive advantage.
Liquidity: the soul of small exchanges
Lack of users and trading volume are the death sentence for small and medium-sized exchanges. The liquidity product BitWind takes on the role of a major customer on the stock exchange by placing large quantities of orders. With this solution, small and medium-sized exchanges can instead concentrate on customer loyalty and avoid risks in market making. In the industry’s battle for liquidity BitWind from ChainUP has played a master stroke.
ChainUP is a leading global provider of blockchain technology solutions. The company has eight well-developed product lines: trading in digital currencies, wallet, situational awareness, consortium for public chains and blockchain, mining group, blockchain cloud media, liquidity and brokerage business, and has built up an industrial closed cycle for technology and traffic marketing from the technology service .
ChainUP has served more than 300 Exchange customers and more than 100 digital wallet customers. In addition, to more than 150 customers of liquidity services, which include more than 50 million users in more than 20 countries. The members of the ChainUP team have worked in large blockchain or internet companies and institutions in the areas of technology development and operations management. They have extensive experience in the blockchain industry and have received several investment rounds from recognized industry institutions such as Morningside Venture Capital, Joy Capital, Node Capital, Albatross Venture and Taoshi Capital.
Facebook group: https://www.facebook.com/groups/ChainUP
Cecilia Wong, yourPRstrategist.com
E-mail: [email protected]
Phone: + 65-91826605
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