KuCoin AMA Series -KuMEX- Full Transcript
(UTC+8) 16:00:00, November 26th, 2019, KuCoin hosted the First AMA(Ask-Me-Anything) session with KuMEX in the KuCoin English Telegram group, KuCoin French Telegram group, KuCoin Korean Telegram group, KuCoin Indian Telegram group, KuCoin Indonesian Telegram group, KuCoin Japanese Telegram group, KuCoin Arabic Telegram group, KuCoin Spanish Telegram group, KuCoin Dutch Telegram group, KuCoin Russian Telegram group, KuCoin Turkish Telegram group and KuCoin Vietnamese Telegram group.
The AMA session was composed of 2 sections: 1. Q&A from KuCoin 2. Q&A from audiences.
*For ease of reading, some text has been deleted
Section I - Q&A from KuCoin
CM: Will KuMEX have any plans of adding altcoin contracts and higher leverage option?
KuMEX: Yes. Contract based on altcoins is already in our plan. Higher leverage will also be available soon.
CM: What makes KuMEX unique from other contract trading platforms?
KuMEX: KuMEX is developed by our own tech team, and we have a good insight into the contract product itself and absolute control on every detail of the platform. Besides a better fee structure comparing with our competitors, KuMEX has a highly secured wallet system and we support instant deposit and withdrawal between KuCoin account and KuMEX account, and thus traders can apply more trading strategies, while for some other platform it takes 24h or even 1 week to withdrawal your realised profit. Also, contract trading was generally for professional traders in the past, and we are going to make it more friendly to the common traders very soon.
CM: What are your long-term plans for KuMEX? What features or projects can we expect in the future?
KuMEX: KuMEX is aimed to be the first choice exchange when people want to trade cryptocurrency with leverage. We will have various of different products including altcoins contracts, calendar spread, stable coins, options and more.
CM: Just like what happened to BitMEX, we don't really know when will this be happening. But during a very volatile time when the server gets overloaded and I cannot submit my orders on perpetuals. Is KuMEX fully improved in this server capability? As that is the most important time for a trader to be able to submit orders quickly.
KuMEX: We take into consideration the annoying overload problem when we developed the system in the first place, and make sure it won't happen on KuMEX. We fully understand the importance of a stable system for a professional trader, and are dedicated to improve on that.
CM: After the wild success of ETH perpetual contracts, at any point, it would be reasonable to you guys from KuMEX to prioritize listing these perpetual contracts? I have a feeling there will be demand there.
KuMEX: Yes. ETH perpetual contract will be available soon. Other altcoins will also be available.
CM: Looking at KuMEX vs. Competitors, it is great to see the very competitive rates KuMEX offers. However, I noticed some established derivative exchanges offering Quanto products (which are very beneficial for speculators and hedgers), can we expect something like this in the future?
KuMEX: Yes. Quanto is for sure our next step.
CM: What would you say is key if KuMEX want to compete with other renowned crypto derivative exchanges? Like, how to not give up if you do not have instant success?
KuMEX: The cryptocurrency market is still at its early stage. As you can see, the whole market cap is only 300 billion US dollars. We believe the potential market is big enough for more participants and this is not a zero-sum game. We learn from our competitors, and so will they. This will be beneficial for the whole industry. It doesn't matter how much money you already made yesterday, but how much you will make in the next 10 years.
CM: I hope this can be answered because it is confusing me. I always wonder what happens hypothetically if a massive majority of positions are all long. Like 95 %? Who would be paying their profits?
KuMEX: The contract market always has an equal number of long and short positions in total. If you buy 1 lot, there must be someone else who sell 1 lot to you, and vice versa.
CM: At first glance, the launch of cryptocurrency derivatives might seem like an unrelated development to crypto trading at numerous exchanges. But as the active paper market makes its inroads, do KuMEX believe it will introduce definite changes in this complex market?
KuMEX: In traditional financial market, the volume of the derivatives market is many times of the spot market. We believe that will happen in the cryptocurrency market as well.
CM: Cryptocurrency is a playground for risk-takers, and a derivatives market allows players with risk-management experience to enter the sphere and potentially reap big profits, while simultaneously lowering the risk factor for the market as a whole. That’s not to say that risk is going away. KuMEX, as a rookie in these contracts trading platform, how can you draw more players to enter these dicey waters?
KuMEX: The whole cryptocurrency market is pretty small comparing with the traditional financial market, let alone the crypto currency derivatives market. We aim to introduce more participants from outside the cryptocurrency industry and provide a good place for their first crypto asset. We believe that process will continue in the next few years.
CM: The cryptocurrency derivatives market, thus, already represents a very large portion of the cryptocurrency market and is set to become even bigger in the future. Do you guys believe KuMEX, as such, represents this golden opportunity to early enough catch on quickly?
KuMEX: The best time to invest in Bitcoin is 10 years ago. The second best is now. We believe when there is not much competition on one platform such as KuMEX, traders can earn profits in a easier way.
CM: Why do KuMEX believe that providing useful and different trading instruments is the next logical step for the development of digital currency markets?
KuMEX: As more and more professional traders enter this industry, they will ask for a more complex portfolio and risk management tool. To provide more options for them is always a smart choice.
CM: Now as KuCoin has added a vip feature, are you planning any additional bonuses for KuMex as well?
KuMEX: Yes. VIP structure on KuMEX is already on the way.
CM: Currently the Volume is pretty low, what is your plan to enhance the overall volume so users have better volume and better KuCoin bonus?
KuMEX: In this quarter and next year, we have many plans to attract more users globally. We already set up the VIP relation department, and more VIP clients can be expected in the coming months. This will boost the trading volume in an efficient way.
Section II - Q&A from Audiences
Q1：Adoption is one of the important factor that all sustainable blockchain projects should focus to be more attractive in the invertors' eyes. Can you tell me what KUMEX has done and plan to do to achieve Adoption in the reality, real use cases, our real society?
A1: This is really a good question. KuMEX is a derivatives trading platform. In traditional financial market, derivatives are something to help traders to mitigate portfolio risk. As long as the crypto market exists, there will always be the demand to hedge the price risk by going short in the derivatives market. That is one of the most important function for every derivatives product.
Q2：How many partners currently have trusted KuMEX and what benefits do these partners bring TO KuMEX and vice versa?
A2：Thank you for asking. Currently we are cooperating with a few big guys in the traditional financial markets and institutions from Wall Street. They think high of our technology and vision and are willing to help us grow bigger. Though I cannot tell you who they are due to confidential reason, what I can say is, there are really a lot of trusted partner and they will bring funds and reputation to us, and we will provide them with more flows.
Q3：What is the biggest challenge of any User on your project? and how does KuMEX do to keep all users staying with your project for longterm?
A3：Personally I think the biggest challenge for the common users is to understand how derivatives actually work. They are not as risky as people may think as long as you have a good risk control system, such as, always have a stop-loss order when you have positions. We are trying to be an exchange being friendly to both professional traders and common traders, and we will optimize every detail we could to achieve that.
One last thing to say is, KuMEX is going to grow a lot faster and bigger than most of us could imagine. Let's prepare for more people to get to know Bitcoin and blockchain and be our friend in this exciting industry.