[Transcript] AMA with CEO of BitUniverse
We held an AMA in our Chinese WeChat group in November and translated the transcript to English.
Jack Chen (CEO of BitUniverse):
Good evening to all the users of BitUniverse and BitMax.
My name is Jack Chen, the founder of BitUniverse. It’s my pleasure to communicate and hear from all users to do the AMA in our Qualitative Trading group and BitMax’s core member groups today.
I am extremely thrilled that I am able to communicate to our users in such a close distance. Before this event starts, I would like to show my sincere appreciation to all of our customers who have been using BitUniverse and BitMax.
A great amount of you have been using our product for a while. Inside the social media community there are also our colleagues from the product teams, the RD team, as well as the operation team. They are here for you to answer any concerns about our products, so we can make responses to any trouble shooting. A lot of them have already been engaging in the process of receiving your feedback about our product, including market tracking, news and trading features.
Of course, there are also users who are not familiar with BitUniverse. No matter how, I would still like to thank everyone who supports us.
First, I would briefly introduce our product. BitUniverse is an auto portfolio tracker app. It supports importing more than 100 exchanges with API. After importing, it’ll automatically calculate the profit or loss for you. In our App you can easily track real-time tickers of 200+ exchanges and near 6000 cryptocurrencies.
The way BitUniverse automatically manages cryptocurrency can be summarizes as “four cross, and three automates”. The “four crosses” are cross-currencies, cross-trading pairs, cross-exchanges, and cross-currencies types. The “three automates” includes automatic synchronization of transactions, automatic calculation of real-time profits, as well as automatically calculating value in BTC/ETH/FIAT.
BitUniverse has hit 1M downloads, and over 90 percent of our users are overseas users. We have also been the #1 portfolio app in Korea, Indonesia, and Taiwan.
Our users can be described as people with high net worth, high transaction frequency, and high loyalty. We have a large active overseas user community, and we have been receiving positive feedbacks from these communities. BitUniverse improves the experience of trading with our unique technologies, and we hope to be in a long-term partnership with you.
Now I would like to introduce the four main features of BitUniverse:
- Market Tracking
Through BitUniverse you can track market tickers that automatically updates in millisecond. We have connected over 200 exchanges, as well as real time updates on Market CAPItalization. Our information not only includes the basic candlestick charts, but also consists 22 professional and technical indicators including MACD, BOOL, RSI. We also have ARBR, CR, EMV, which is useful to professional investors. These products are one of the most professional products in the market. In BitUniverse you can find the coin categories, the ranks, the money flow, the CoinPedia, etc. With these features, you’ll be able to use BitUniverse to fulfill most of your needs.
BitUniverse supports full screen mode for candlestick charts, so the users can get a cohesive view and better experience with the market. Besides, BitUniverse also provides an exclusive feature called SmartRing, with which you can easily draw on the candlestick charts, set alerts or trade. Our innovative features remarkably boosts the user experience on investing the Bitcoin market.
- The BitUniverse Link
The Link is a service provided by BitUniverse which enables the direct communication between our 1 million users and the coins.
With Link, the users can get synchronized Medium and Tweets of the coins. In the future, we would also introduce Weibo and Wechat information into the Link. The users would be alarmed with any updates of the franchisee they are interested in, because the coins can deliver any of their news and messages on the Link. Anyone who follows their account would be able to receive all of their messages.
By now we already have 90 coins who have joined BitUniverse Link, and 120 more are pending to be verified. 36 of top 100 coins are already on BitUniverse Link, including BNB, NEM, Lisk, Aeternity, Digibyte, Holo, IOST, Loopering, TRON, OKEx, Dash, Dogecoin, Bitcoin Diamond, Komodo, Wanchain, Mithril, Nexo, Ark, aelf, Insight Chain, FunFair, MaidSafeCoin, MakerDAO, Zcash, Litecoin, Monero, Ontology, VeChain, NEO, 0x, Bitcoin Gold, Qtum, EOS, Aurora, Status.
- Multi-exchanges Trading Terminal
By now BitUniverse supports trading for Binance, HuoBi, OKEX, HitBTC, Bitfinex, ZB, Bitterex, etc. In the future, you can use BitUniverse to trade almost all common exchanges.
BitMax is our partner, and we also have supported them.
BitUniverse solves the issue of the complicated management of cryptocurrency, it automatically records and analyze data from each user. Traditionally, the users would have to manually add all their transactions using apps like Blockfolio, however, manually adding can be a pain point because a lot of users are high-frequency traders. Once one transaction is wrong, it is impossible to get a correct data, and it would be extremely hard for the users to find the issue.
Now with BitUniverse, users can get detailed and accurate data and records of their transaction automatically. We use wallet addresses and exchange API to auto import your portfolios and calculate all profits accurately.
BitUniverse users can gain special benefit from our partners, while also getting their assets well managed by us. For exchanges, they can easily link to almost a million user on BitUniverse.
For example, BitUniverse is in partnership with media from both China and overseas. Our customers can gain public attention through these media. Meanwhile, BitUniverse synchronizes news and notifications from the exchanges on all of our social media platform, all users can get push notifications on exchanges they follow or interested in. In conclusion, BitUniverse benefits both our public users and the exchange organizations.
This also explains why we have chosen to be in a partnership with BitMax. BitMax.io is a decent cryptocurrency exchange that is based in Wallstreet. It is designed to serve the epic financial service agencies, and it provides diverse products and service to customers around the world. Their service is efficient, trustworthy, and high quality.
Here is all my introduction to BitUniverse, now let’s welcome Dr. Cao.
One reason that initiates me to open up this exchange is because that I want a trading environment where users can see detailed information in all nodes. I believe that the in-dependency of different sectors including the broker, the custody, the portfolio management, and the exchange would provide extra professional service for the users.
I am glad to see that BitUniverse owns most features from a broker. The broker market is crucial in the future financial environment. They can connect to the KYC, the custody, the exchange, and even the portfolio management. While their aggregated service benefits the exchange, they also benefits the users by their ability to negotiate with the organizations.
At the same time, their custody service provides extra security to any assets. Therefore, BitUniverse is the most intelligent product in the broker market. It is good for Bitmax’s to collaborate with BitUniverse.
Our technologies in exchange is the best among all similar products. Unlike how Binance updates data in seconds, or Huobi’s server may not be stable, our tech is leading the way.
The users can have a more fluent trading experience to trade BitMax on BitUniverse.
I am going to end the introduction here, and you can now feel free to bring up any question or confusion you may have. Yong Chen and I will be answering all your relevant questions.
Do you have any special promotion or method when listing a new coin on your platform?
Cao: Great question. I always believe that the exchange acts like the first firewall which protects the investors. We cannot promise that the value of all of our coins increase, but we can try our best to make sure that any information our users get are accurate and up to date.
Can I ask a question about the market depth? When do you think it can be improved?
Cao: When more API users on BitUniverse connect to BitMax, the problem with the depth would be solved. Just kidding. Currently several market makers are starting to test their market with our platform token. The problem with the market depth would be better solved after they finish testing.
Do you have any special requirement if I want to be a market maker?
Cao: The transaction fee for a maker will be -0.08%, which will simulate more people to be market makers here.
Are you well prepared for the Bear Market that may last over two years?
Jack: When I decide that I would be ALL IN the blockchain industry, I have realized that the best scenario for blockchain is to eliminates the financial intermediary agency. The financial sector is a sector that emphasizes on routine and cycle. Once there is a bull market, there must also be a bear market. However, for anyone who is in this sector, it is more important for them to focus on the long-term value.
I am still confident with bitcoin because it both solve the social issue of anonymous transaction, and also is advanced on a technological level, it strengths the security of trading through the use of blockchain.
I take bear market as an opportunity for me to focus on solving the issue and being patient. For us, the most important short term goal is to optimize our product according to any users’ needs.
When will you release contract trading?
Cao: The advantage of broker Wallet is that it serves the users in a Bear Market by providing efficient financial management services. We are working on different tools and products to benefit our users. We have been considering all kinds of factors including the Hedging, the contracts, the leverage, the futures and the options.
Do you think of BitUniverse like Google? They are extremely professional in their own field and well respected.
Jack: Blockchain is a new world, therefore we are not setting any example for ourselves, for any examples only represents a success in the past generation.
In the blockchain field, we are all like new-born, we are full of curiosity and eager to freedom. We hope to make all of our users more professional in the trading market, and we hope to become more mature along with the products and community.
I understand that you want to focus on the long-term value, but operation requires costs. A lot of the companies in a similar field went bankrupt in the 2014. Are you well prepared for the long-term development?
I have communicated to your product manager about the grid trading method. There are two questions I would like to ask, first, how do you think of the position of BitUniverse? Secondly, with the grid trading, how should investors do risk control?
Jack: There remains risk in all businesses. I have considered the cruelty of this business when I have decided to All-In in blockchain. Therefore I am well prepared, and I am working towards my long-term goal step by step.
We are strictly controlling the distribution of BUB, so we take it as a return to our user community. Currently, the only way to receive BUB is to help us polishing our product.
First of all, in order to avoid the fluctuation of value, BUB uses the ETH-based way, and the price of BUB is 6000BUB=1ETH. Comparing to other altcoins, this method promises a more stable price, as well as a higher value in the future.
As for “encouragement”, BitUniverse is not taking a usual route such as mining or airdropping. Instead, we encourage the users by improving our products’ core value, such as letting users to promote our apps or importing API keys to manage their portfolios.
Why did you decide to develop the grid trading feature?
Jack: BitUniverse has always been watching over customer needs and trading habits. We have realized that our users usually trade manually, however, as a market with long history, the financial market has accumulated some wonderful trading tools and strategies. These tools are extremely crucial in the 7*24 encoding process.
Therefore, the grid trading method is extremely helpful for swinging market. I hope that BitUniverse can benefit our users to make easier trade by tools we have developed.
Is there any specific plan for BitMax to open up the US market?
Cao: We are making access to the USD deposits, recently we would be opening the market for U.S.A. investors.
Both BitMax and BitUniverse are embracing a global view, we hope that we can reconstruct the market and bring you wonderful products together.
I just signed up an account two days ago, and on the app it says that Chinese IP is forbidden.
Cao: It’s not. Please try again?
Will you cooperate in trading bot features such as grid trading in the future?
Jack: We will cooperate with exchanges like BitMax for grid trading to improve the users’ experience. In fact, we are launching our grid trading which supports BitMax in next week, please stay tuned.
Dr. Cao, can you please elaborate on the Mine Filling? I don’t think I have ever seen that on other exchanges.
Cao: The Mind Filling is a unique strategy for us to sell our token and to reduce circulation. In order to do it, you will need to make orders under mining mode, so that the transaction fee is negative, and we would charge you for our own token. This is our way of buying token with market value. However, we would not let this circulation happen again on the secondary market in order to avoid the selling of overstock. This portion of the token stays in a locked position in order to reduce the circulation. BitMax does not take part in the process of mine filling, this process is specifically designed for other currencies. Our currency is a special currency, which encourages the users to trade. For our transaction fee, we use either USDT or BTC. You are welcome to try it out.
Where can I purchase BUB?
Jack: Currently we do not sell BUB on the market. We use it to reward our users. The only way to get the BUB is to complete the missions in BitUniverse.
Can I ask a silly question. Users on BitUniverse trade by importing personal API, how does BitUniverse ensure the security?
Jack: We have a three-layer protection on BitUniverse to make sure that the users cryptocurrency are secure. First, the API on BitUniverse is set to read only. When you go into the app, just follow the step of portfolio feature. After that there will be detailed instruction for the users to set their security, there won’t be any loss even if the API are hacked. Secondly, the API keys are only stored locally, they won’t be uploaded to any servers. It would be impossible for any other application to access to the user API key. Last but not least, BitUniverse uses the algorithm called AES, which will encrypt the local API key.
How do you stabilize the profit participation of your platform token on Bitmax, especially that you are having such a high amount of profit sharing?
Cao: 80 percent of the transaction fee goes into the fund pool. They best way to make it stabilize is to participate 180/1 on each day.
Dr.Cao, have you considered holding the BTMX to get airdrops?
Cao: Sure, there would be multiple benefits holding the BTMX, including getting a discount on leverage Interests fee, taking part in the private launching events, and joining the Short and Trading competition.
Why don’t you introduce the feature of BTMX Mining trading pair? It can increase the depth.
Cao: Mining with platform token is a complicated financial mode, I haven’t figure out all the details of it, but I have had considered about it.
BitUniverse Link successfully connects the users and the project participants, will there be any further collaboration and benefits in the future?
With Link, the users can get synchronized Medium and Tweets of the coins. In the future, we would also introduce Weibo and Wechat information into the Link. The users would be alarmed with any updates of the franchisee they are interested in, because the franchisee can deliver any of their news and messages on the Link. Anyone who follows their account would be able to receive all of their messages.
In the future we are also introducing the Trading competition and in-depth collaboration with the investors in order to boost the trading ability of our users. We are also rewarding our leading users.
Please follow our social network for detailed information on the trading competition.
When are you launching the Levers? Have you confirmed the Leverage?
Cao: We are launching the Levers this month, but we haven’t confirm the final Leverage.
What are the primary tokens you are launching?
Cao: ITO, Ambda, and YYETS.
Will there be any discount for Iambda if I hold any platform token?
Cao: We are having group buying discount, please refer to Pinduoduo.
Are we getting any discount if we use BitUniverse to make any grid trading?
Cao: Not for now, but users on BitUniverse do get discount in our application. We provide the best service and most leading technologies.
Jack: In the future we are also introducing the Trading competition and in-depth collaboration with the investors in order to boost the trading ability of our users. We are also rewarding our core users.
Are you launching Yyets as a primary token on BitMax? Will you be doing any promotion with them? Because they have a large group of users.
Cao: I am sure there will be.
What’s your take on the fact that SEC is extending the time of ETF holding? Do you think they will pass it?
Cao: I don’t think SEC would approve ETF in the near future. I would say that there will at lease be another half year.
Are you sure that the BitUniverse grid trading will let users make profits?Will there be any promotion for the transaction fee in the future?
Jack: I don’t think the users can find any market that assure a 100% gaining. The basis of trading is that you have an objective determination of the market. By using grid trading, you can avoid some manual mistake because everything is calculated by the algorithm. The grid trading strictly buys and sell in a set swinging price range.
Where can you find alpha indicator in the market?
Cao: I don’t think the users can find any market that assure a 100% gaining. The reason for this is because each strategy has a limited market capacity.
The longer you hold a position, the bigger the capacity. The is why you are getting lower rewards and lower Sharpe Ratio with bigger funds. Alpha is what we have always been looking for, here are some areas I found that holds Alpha:
The Arbitrage in European, United States, and Asian exchange.
The Arbitrage of minor currencies.
A success in traditional quantitative signal and cryptocurrency trading. This includes the Mean Regression and the CAPM+APT.
Alpha is more advanced than traditional finances because it yields bigger reward with smaller funds.
Don’t you think that launching 10 Billion BTMX is too much? Will you shrink that amount? Or is there any other solution for it?
Cao: There would not be 10 billion platform token, maybe not even 2 billion. We would be launching the multiply card along with the position dividends because they would be influencing each other.
Have you been doing cta?
Cao: the core of cta is to follow the general trend, it can be helpful to use it when the gain and loss of cryptocurrency are extremely visible, and when there lacks the short. However, I am just making a guess, as I haven’t tried it before.
What do you two believe in? Is there anything you believe in that is different from us? Can Chen please answer first?
Jack: I was first introduced to the internet tech in 1996. The internet enables a quicker, and more convenient platform for information exchange. Everyone on the internet is able to connect to the rest of the world. I have found the reason of life through internet, and that is what encourage do be a part of the internet business.
In 2013, I started to get interested in the blockchain. My in-depth knowledge of blockchain comes in 2017, after I left Cheetah Mobile, cryptocurrency trading is banned in China, and therefore I though Bitcoin would be supervised and controlled by the government. However, it was not affected, instead, the value of Bitcoin keeps increasing. This has taught me the power of common understanding. “The essence of a currency is the common understanding. The U.S. dollar has its value today because it is supported by the U.S. government. Behind Bitcoin there also lies a consensus. The basic principle is math, it becomes a valuable type of investment because the suitable structure, rule, and capacity”. The internet enables an easier accessibility of information, but people also need to sacrifice their privacy to access to it.
In the first dimension, the users provide their personal information to the companies unconditionally, and these companies make profits from these data. Secondly, from a more professional point of view, the monopoly on internet are extremely unhealthy for any innovation to take place. For example, if a game company wants to succeed, they have to not only consider the quality of their game, but also the platform they get traffic. Platform such as Tencent and NetEase provide bigger traffic for winning, however, advertising on such platforms usually represents a higher price.
Therefore, the product with higher quality may not be able to achieve success on the internet. In comparison, some products with higher audience and lower quality are making a big success. The monopoly on the internet has become an obstacle between the general user and any product.
While the internet allows a bigger freedom on informational exchange, it is also offering a dictatorship of value, which completely contrasts the initial purpose of the internet.
Therefore, the blockchain adapts the initial purpose of the internet, it allows higher level of freedom, the decentralization, and the spirit of opening source.
The blockchain offers a decentralized community instead of dictated society. The power of community arises while the authority of any individual decreases. This make us completely different with any internet business.
I believe in blockchain, just like how I used to believe in the internet. I believe in freedom, equal, and decentralization.
Dr. Cao: My belief is fairly simple. Cryptocurrency is one product among all the other financial products. I hope that we can provide a transparent, fair and honest platform which enables the investors to trade in a protected environment.
At the end, I would like to congratulate BitUniverse’s user LittleAngel and BitMax’s user Monster of getting 200BUB as reward.