Aaron Gong, vice chairman of futures at main cryptocurrency alternate Binance, defined to Cointelegraph how the agency managed to turn into one of many high crypto futures buying and selling platforms.
As Cointelegraph reported earlier this week, Binance lately overtook BitMEX and have become the second-largest platform by way of 24-hour Bitcoin (BTC) futures buying and selling quantity. When requested whether or not he’s shocked by such success, Gong stated that the agency created the product with the plan of changing into the highest Bitcoin futures buying and selling platform:
“We knew we’d be there quickly, and we made it in barely greater than 6 months’ time.”
The explanations for Binance’s futures success
In line with Gong, the three main causes behind the success of Binance’s futures merchandise are the low taker charges, new options and a considerable amount of altcoin pairs. He stated that too many exchanges supply unfavorable maker charges:
“Too many different exchanges supply unfavorable maker charges, the place most orders are simply computerized market makers competing for greatest bid and ask with extraordinarily restricted taker curiosity in periods of low-volatility.”
Gong additionally stated that innovation additionally drives buying and selling volumes in relation to Binance’s futures. He claimed that the alternate has had just a few firsts in relation to the crypto futures market:
“We’re the primary main crypto alternate to launch max 125X leverage for BTC contracts, and the primary of its sort to launch cross collateral and good liquidation mechanism. These options have gained great recognition amongst our customers.”
The third motive for the success of Binance’s futures contracts, Gong defined, is the variety of altcoin contracts. He stated that the agency launched 24 futures contracts on the platform, including:
“As of right now, Binance Futures homes half of the highest 10 most liquid altcoin contracts, lots of that are additionally probably the most traded pairs amongst all futures exchanges.”
Binance’s key to future success
Gong’s technique to drive the quantity of futures contracts on Binance is to proceed bringing extra functionalities and merchandise to the {industry}. He stated that he believes Binance has outdone its rivals, as different crypto buying and selling platforms suffered issues akin to overloads, poor threat administration, and counterintuitive product designs. He defined that Binance’s design was largely pushed by consumer’s complaints about different platforms:
“We particularly aimed to deal with these points and enhance the customers’ expertise. As such, we put great efforts to construct an industry-leading matching engine that is ready to course of greater than 100,000 orders per second. […] While there have been problems with system overloads, outages, glitches, and even rollbacks elsewhere, we’ve confirmed again and again to be a secure, dependable, low-cost and liquid venue for hedging.”
It’s price noting that Binance’s buying and selling platform bumped into various points in February. On Feb. 19, the alternate halted trading to resolve an surprising technical difficulty with its infrastructure.
As a Feb. 25 Cointelegraph evaluation illustrated, this incident occurred after per week during which the platform was usually unresponsive to dealer enter because the alternate was unable to handle a big uptick in consumer quantity.
In early March, Binance halted trading once more to repair a malfunction. The alternate’s co-founder and CEO Changpeng Zhao purportedly blocked Jay Hao — the CEO of competing alternate OKEx — on Twitter, after he publicly provided to assist repair the infrastructure.
Nonetheless, Gong stated that the malfunctions didn’t have an effect on Binance’s futures buying and selling infrastructure and that futures merchants weren’t affected:
“Our futures system has been proving to be performing effectively throughout probably the most unstable interval since we launched. The futures market is working on a separate matching engine.”
