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BITCOIN MARKET DAMAGED BY DERIVATIVE TRADING? Bybit CEO asked the difficult questions…


rather than so here today Ive got me with me Ben from buy base CEO by bit Ben if you want to tell me a little bit about yourself to give a game with and I know weve talked for a few times now and got to know each other a little bit better so what is well everyone knows what my bit is but why do you start it give us a little bit of information on it first of all thank you for having me in the show man its a pleasure yeah as far as my background goes I was doing I was running a retail Forex firm for a little over seven years of basically managing around the 200 staff mainly focused on retail forex traders and then I got into crypto in early 2017 through a friend and so I you know looked into all these different projects and also trying to understand what all these text means and all that and then after a while I sort of really got hooked into crypto and I really want to sort of divide my time or devote my time into this space so the decision was made and based on my previous experience my forte is in exchange or derivatives exchange and thats why I decided to start a bi bit and also there was a huge opportunity what I see especially with the competition not so many competition compared to Forex and also the overall trading experience wasnt up to what Im used to so thats one of the reason I started by bit mmhmm Ive got interesting question for either actually something that Ive seen a lot of people bringing up recently is is derivative trading good for Bitcoin or bad for bitcoins it means that I guess less people hold the underlying asset but there is much more market participation so I mean where do you stand on that first of all even in traditional sectors a lot of times the underlying asset is not exceeding the real volume of the derivatives so theres a derivative volume can you see the underlying asset and I believe its absolutely necessary for a market to mature so that you have all this because in a market even for exchange like buy bit people a lot of people think we are just full of clients here to trade and seeking for profit but there are actually many different players you have all these ubercharge people you have people that doing hedging I have people that are doing speculative so you have different players and you need different players in the ecosystem to make sure the industry actually mature so if you look at any industry or Forex or commodity or gold and silver and stock people you need to give people the financial freedom and institutions the ability to long and short and then sort of that will stabilize the true price and who will give you the actual price well my stance on only is actually very similar to yours I believe that when there is market participation on both sides of it it doesnt matter how much there isnt ah if hes borrowed money which essentially is when you use a leveraged trading exchange or if hes their own money if you spot money it doesnt make a difference to me as long as there is that and I think that having like more leveraged trading exchanges more market participants encourages more legitimacy in the space and therefore increases the value of an asset because it has more market participants when you kind of compare it to Bitcoin spot volume in 2017 there wasnt actually that much and and now spot volume is depleted so much because people have realized that whats the point in trading spot when you can minimize risk and and kind of maximize the amount of money that if you were a good trader that you could make using derivatives over trading spot doesnt for me make sense to trade spot anymore when hes gone I think a lot of people are realizing that yeah yeah and also and its simply derivative trainings the exchange we offer in the tools we offer is a much better tool tool to trade so if you if youre simply and were used to all the spot trainings back in 2016 or 70 and you look at now where we are with derivative exchanges the tools we have the matching power everything has improved so its definitely improved the whole industry so I actually noticed that two days ago bit mechs have their lowest volume ever and Im guessing that something to do with the by bit effect and and and someone taking their customers away which I mean IIIi think hes all good hes competition in the best and obviously bit makes our doing something wrong in fact I know its quite clearly bit mixed doing something wrong at this point theyre kind of ignoring the market and not pushing forward with anything theyre kind of a sitting kind of kind of like what Apple did from 2010 to 2014 just assuming because the number one will always be there and thats not really the case and again babys gonna have more competitors in the future I mean Judaica kind of making a push for it right now and theyre a bit I dont I dont know where theyve gone but they seem to have disappeared recently and I just think hes interesting the way that the the market is developing and in particularly bit makes how much of an impact you think youve had in terms of taking market share what do you think your market share is at the moment during that huge pump about a month ago our volume we stand around actually 60 to 70 percent compared to the max so its not necessarily meaning that we took 60 or 70 of their clients because we actually do have I would say at least 50 of our clients come from completely new spot exchanges or a completely new to crypto so they asked a lot of these questions to our customer support very you can tell they havent been doing any of these margin trading or everything before and I think whats the biggest observation I noticed is that or going on with what you say is that the mentality of exchange and how exchange will operate will definitely change and evolve as time goes on as the whole environment get more more competitive back in 2000 I guess 1516 up in 201617 exchange can simply have a good product and you dont need to do any marketing any operation client will just come to you because simply there wasnt a good product so I think this is where it be max I also have a huge respect for them for inventing the professional contract its a very good product it got rid of the manipulation with all the smart price mechanism and then a simulates the the despotic price but then as we go and you get more competitive exchange need to have you need to be allrounder so you need to have good product good service really good customer support responsive and also solid marketing solid to get to people to know you so it really takes all now to be a successful and exchange yeah I think is really interesting one of the other things that one of the main questions I wanted to ask you is and Ive seen if this happened a few times do you kind of associate the bar candles that weve been seeing on bitcoins price with derivatives exchanges cuz I know that I do to some extent whereby say youve got 10 million dollars worth of Bitcoin he placed on a market order on a smaller exchange that is linked with the left spot price on a theory or to his exchange and that would affect the price and then people you know have the ability then to open a large shot cash in and cash out you youve kind of agree with me on that one that youre seeing kind of more manipulation because of the low liquidity in the markets at the moment because the balance is somewhat switched in favor of derivatives there is less price I think manipulation had always happened in crypto and it will probably continue to happen as long as the space does not completely regulated again I understand your theory where because mark price is anchored to all these spot exchange be some home base to decks and all that and if you have a huge odor over there and you might effective rates of liquidation price so you can literally do a stop hunt that way but I would still think in order to move such a significant amount of price among all these legit exchange I guess coin Basel which who does Qi see and all that its not so easy and also if it was so if it was so easy there will be a lot of people trying and we have actually a lot of people trying it kind of brings up the volume over there yeah so its always a counterparty and nobody is going everyones going to place place other heartiest misinformation and and you never know what triggers the spikes so one of my final question for you today at Chilis since we first kind of spoke in March of this year kind of like February March time I think it was Bible is growing a lot how many people have you employed since kind of the beginning of this year beginning when we first launched December first I think we had about 30 people right now as of today I think I just lost checked 115 yeah its impressive that theres more people than I used to work with and I when I had you late a proper job anyway a proper job you tuber is a proper job you know youtuber trader you know this its not really a job is it I mean my job is right now it says but after go to work in suits or anything yeah its been lovely speaking to you anyway so unless you go anything else youd like to say Oh competition by a big competition we should definitely stop for a second why are we doing it and like what what is the the prizes and everything give it a giving a quick explainer about it yeah so as of today we just exceeded 4, 000 participants meaning that every single one of them had made a minimum deposit of 0.05 and getting ready for the competition it is probably it is already the largest ever crypto competition in history and the registration period is not going to be closed until on the 28th so we got another eight days so were only about two three days in into the registration and so far weve seen a huge popularity among all countries basically and if you go in there you can actually see how global babe it is you have all these Chinese teams Korean teams UK teams marketing you have a team so how these other guys youtuber teams Twitter teams so yeah I think I think is gonna be a really fun time and simply by joining a team you get a 20 fee of taking fees so it makes for any I big traders to the securing and have some fun yeah yeah the dude is also a whats the the bone it says sign up bonus for at the moment I forgot not sign up bonus I think its 30 now yeah yeah its 30 if you sign up today and it will gradually diminish as the as the day comes near and I think these were these like seven eight days left before people can not join any more checking on the competition yeah yes yes De La Soul I think I saw all pretty good if you are interested by the way if youre watching this and interested in trading on by but then you should definitely click on my referral link in the description and join my team as well training team de positive 0.05 is needed in the accountant and anybody can join it and will win it hopefully we hopefully you know people join we can get to the 100 BTC goal I dont know hopefully you can split it between my team Ill be quite nice on it I mean the likelihood reckoning is fairly low I mean the competition is quite large but at least try any to win it I have a great day I been under I suppose Ill speak to you in a bit thank you this article is over now youll find something else to watch or just watch this article I know we had a lot of fun but you cant stay on this end street forever this article is over now so why are you still watching theres a unit I have lots of other articles that you can watch and Im sure youll enjoy them just as much

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