Haipo Yang, the chief executive of CoinEx, talked to LearnBonds.com about the cryptocurrency market, Facebook’s Libra, Central Bank digital currencies (CBDCs) and a new altcoins season. He said that Libra may become a landmark of the blockchain industry and that CBDCs show governments are starting to recognize the potential of blockchain technology.
He added that in order for an alt season to start, Bitcoin will have to lose part of its market dominance. Regarding cryptocurrency exchanges, Decentralized Exchanges (DEX) will have to offer better and more user-friendly solutions.
1. CoinEx says it is a global and professional digital coin exchange service provider. Could you explain which are the main differences between your platform and traditional cryptocurrency exchanges?
“CoinEx was founded in December 2017 with Bitmain-led investment, and it now supports coin exchange, margin trading, futures trading, options trading and other derivatives trading. Its service reaches global users in nearly 100 countries/regions with various languages available.
We also launched the CoinEx Chain which is specially created for Decentralized Exchanges. CoinEx is one of the few exchanges with a comprehensive blockchain ecological layout.
Besides, CoinEx also has some distinct advantages such as fast transactions, world-class security and safety of funds. CoinEx has never experienced a security issue since it was established.”
2. You have recently initiated CoinEx Chain mainnet. What is the goal of this new project?
“We want to create a Decentralized Exchange that is completely decentralized, requires no licenses to issue tokens and features high performance and a good user experience. As there is currently no public chain that meets our needs, we decided to develop a new public chain by ourselves. CoinEx Chain is arguably the world’s first public chain exclusively designed for Decentralized Exchange.”
3. Recently you have launched CoinEx Decentralized Exchange. Given that one of the main challenges of DEX is related to the low trading volume, which are your plans to increase trading volumes in your newly launched platform?
“Unfriendly user experience is one of the main shortcomings of DEX and is also the general impression communities have for DEX. This is just the problem we are committed to tackling.
CoinEx Chain has extremely high transactions per second and user-friendly wallet services, and perfectly serves the purpose of scalability, decentralization and security. CoinEx Chain’s solution is the parallelism of multiple dedicated public chains, each of which performs its own functions, by cross-chaining for both high performance and flexibility. The CoinEx Chain ecosystem consists of the DEX public chain, the Smart public chain and the Privacy public chain. This is also the vision for the next generation of public chains as we believe.
Another thing is that compared with centralized exchanges, DEX does have a higher threshold. Users need to understand more concepts, but this can be optimized in various ways. The CoinEx team has a lot of experience in improving user experience, and we are very confident to create simple and easy-to-use products. It’s very simple to issue tokens on CoinEx DEX and creating a smart contract for it is no longer needed. The users only need to fill in some parameters to complete the process and easily create a trading pair for the token. Besides, automated market making agreements have been built-in to ensure liquidity at the early stage of projects.
We also welcome our users to participate in the construction of the CoinEx Chain ecosystem and work together to create a safer, smoother and more efficient decentralized exchange.”
4. CoinEx has recently held meetings in Wuzhen and Singapore. Could you share which were the main topics discussed and which was the sentiment regarding the cryptocurrency industry?
“I gave a speech in Wuzhen and below are four main points:
- Token is the major application of blockchain technology, and the core meaning of the token is to increase assets liquidity. Ethereum is currently the most important platform for issuing tokens, but the transaction still needs the support of centralized exchanges, which has also led to the prosperity of centralized exchanges.
- At present, almost all blockchain exchanges are centralized, which is believed to be the biggest bug in this field. Blockchains are known for decentralization, but the entire ecosystem is heavily dependent on centralized exchanges.
- DEX is clearly the evolutionary direction of the blockchain exchange, and DEX will reshape the exchange industry through decentralization. In DEX, users are in charge of their own private keys. DEX can support the issuance and trading of thousands or even more tokens to meet the needs of future industry development. Through decentralized governance and operation, DEX has no single point of failure and takes on more vitality.
- DEX will become the cornerstone and make the future of blockchain brighter.”
5. CoinEx was launched in December 2017, at the peak of the cryptocurrency market and industry. Which were the main hurdles the platform faced throughout the bear market that lasted over a year?
“It was unfortunate that the market went bear after CoinEx was born. However, we also took it as an opportunity. During that time, we didn’t stop trying relentlessly to perfect the product and develop innovative trade models. In the second quarter of this year, the market became warmer. In July, we launched Trade-driven Mining, which made CoinEx trading volume skyrocket and become the number one crypto exchange. We not only support more and more services on the exchange, but also developed the CoinEx Chain and DEX. The number of users has grown steadily, and the team has went through difficulties together and grown stronger.”
6. You have also launched two tokens anchored to Bitcoin and Bitcoin Cash to be traded on the CoinEx Dex. Are you planning to launch other collateralized cryptocurrencies such as Ether (ETH), Ripple (XRP) or Litecoin (LTC)?
“Yes, of course. We aim to support all mainstream cryptocurrencies.”
7. Facebook could eventually launch a digital currency Libra in 2020. Which is your view on it? Are you planning to integrate it into CoinEx platform?
“I think this has a great historical significance and may even become a landmark of the blockchain industry. Libra has established a relatively positive image for the blockchain industry in the short term. It has reduced the regulatory pressure on the entire industry to some extent, and has also improved the working environment of this industry.
In the long run, Facebook has a large user base in the internet industry, and it has brought a tremendous demonstration effect to the traditional Internet. In the future, it will bring a large number of new users to the blockchain industry.
Libra can be regarded as a type of stablecoins, and we do welcome it on the CoinEx trading platform.”
8. Central Bank digital currencies could eventually become a reality in the near future. Do you consider they will negatively affect the cryptocurrency industry?
“Central Bank digital currencies are also types of stablecoins. Compared to traditional banks and fiat currencies, blockchain-based stable coins can make payments faster, cheaper, and smoother. This is also one of the main applications of blockchain. It shows the recognition of blockchain at the national level, which is positive for the industry, and more people will realize the value of cryptocurrencies.”
9. What is your relationship with regulators considering they have been expanding their controls over the industry?
“CoinEx is a Hong Kong-based exchange and we target global audience. According to China’s regulations and regulatory requirements of central authorities, we also have some services in China and maintain constant communication with the authorities.
Besides, CoinEx has received a regulatory license from the Estonian Financial Intelligence Unit, which paves the way for CoinEx’s global expansion and to obtain further licenses in other countries.”
10. Which are CoinEx plans for the coming two years?
“We will continue to improve our products, put more efforts in marketing and operations, as well as look for more high-quality projects, to increase the number of users and transactions on the platform. Moreover, CoinEx Chain is another focus of our work. We will constantly improve the Smart Chain and Privacy Chain functions, to improve user experience and have more projects to issue coins on CoinEx DEX.”
11. Bitcoin has reached a dominance of over 70 per cent a few months ago, do you think we could see a new alt season in the near future?
“The concept that the Bitcoin price will rise before halving has become the consensus in the cryptocurrency market. I think this time it will still work and the price will rise. However, if we evaluate the market by Bitcoin’s portion of total crypto market capitalization, it’s that higher portion of Bitcoin means that other currencies are lack of attention and their prices are falling, which is the signal of a bear market. In contrast, the lower the Bitcoin’s portion, the hotter the overall cryptocurrency market. So in my point of view, the alt season will only come when Bitcoin’s portion begins to drop.”
Thank you, Haipo, for the conversation!