About Dialogue Guests
David, CEO Co-founder and Co-chair
Obtain master degree in computer science. Own more than 20-year experience in the secondary securities market and become continuous Internet entrepreneurs. Jointly found Wellbtc in 2017, which has been successfully operated for nearly 2 years and has acquired nearly 2.8 million valid registered users, with active users covering more than 80 countries and regions in the world such as China, Indonesia, Vietnam, Japan, South Korea and Russia and so on.
About the recent progress of Wellbtc
Q1. What is the current situation of Wellbtc?
A: At present, the total number of registered users has reached 2.8 million, with 100,000 daily users. The daily turnover can reach 500 million US dollars, which is not bad.
At the same time, we have also made some minor innovations and launched some new businesses:
Introduce Treasure Hunting for Hundred Million Yuan – a kind of introduction of institutional fund to increase the number of high-quality projects from the secondary market, token and bring new long-term value increment funds to the market, which is more popular with everyone.
Phase 2 IEO – We did IEO once in February in 2018, so we intend to be relatively cautious about IEO fever this year. It is feasible to meet reliable projects and market conditions, so we have only carried out two phases, but the gains have shown good.
Futures – We are about to launch the futures sector.
App Online TP Points System-Users can use TP to exchange btc and receive stock investment, etc. and motivate users’ behaviors. After the points system is online, the activity of products has increased by more than 30%.
Thoms joined Wellbtc appointed as the director and CTO. Mr. Liang is a senior technology magnate and the founder of RippleFox, largest Stellar and Ripple community. His arrival has significantly improved our product technology development. In the past six months, the product has made great progress and brought a large number of users to the original Ripple community.
Q2. Why was Wellbtc so unknown to the public before? Or is it really “making a fortune in silence”?
A: It must be admitted that we did not do enough and not get the public known well before, which also caused some media friends to be unfamiliar with and not fully understand us. Today, I take the chance of the online AMA activity to establish contact with all media friends. We will communicate more with each other in the future, and we will often exchange information with our media friends about our latest progress. We hope to get more objective and fair reports under the condition of full communication with the media.
We have previously focused more on how to improve our own product and service experience. We firmly believe that good products and services are the long-term development path of one exchange. Short-term eye-catching marketing hype, or some kind of model like following the trend, seems to have gained attention in the short term. In the long term, it is a kind of harm to the positioning and brand of the Exchange, and even the user experience. That is why everyone thought we were so “unknown”, because we don’t want to be a flash in the pan, we are very cautious in every step we take, and we also hope that our products and services can support our brand in publicity so that our brand can prosper in a long-term.
About Wellbtc financial report
Q3. Announcing the annual financial report is equal to disclosing the core information of the exchange to the public. On one hand, is Wellbtc satisfied with the financial results? On the other hand, have you ever worried that users will lose money and the platform currency will fall due to their high expectations of financial results?
A: The financial report for the first half of 2019 is not particularly ideal. Revenue from trading commissions and coins dropped from last year. There are several reasons as follows.
The first half of this year was a one-sided bull market for mainstream currencies. People mainly held holder for mainstream currencies, and trading was not particularly active.
In the first half of the year, we invested more, and more matching systems and safety protection upgrades started in the first half of the year, so the cost increased a lot in the first half of the year.
In the first half of the year, overseas promotion business started intermodal transportation promotion in more than 10 countries and increased promotion in key countries and regions. This part of investment also led to an increase in costs in the first half of the year.
Of course, there are also shining spots. Our income structure is relatively healthy. The proportion of commission and currency income is becoming more and more reasonable. The proportion of income other than currency fees, such as transaction fees, has increased rapidly, accounting for more than 50%. The overall cash flow structure is relatively healthy.
In addition, the fund suffered serious losses last year, but it has already made profits this year. In the second half of the year, several good projects will be able to withdraw and benefit. It is expected that the annual income and profits will be good.
In the second half of the year, with the promotion of markets in many overseas regions and the gradual introduction of products such as perpetual contracts and leveraged transactions, the commission income in the second half of the year is believed to have improved and will give investors a more satisfactory return.
About Treasure Hunting for Hundred Million by Wellbtc
Q4. Some users are worried that Treasure Hunting for Hundred Million Yuan will be suspected of “leek cutting” by the exchange-traded fund. Would you like to dispel any worries or misunderstandings in this regard?
A: There are some misunderstandings about the “leek cutting” of the exchange-traded fund.
Treasure Hunting for Hundred Million Yuan, our plan is to open up a convenient channel for traditional capital and high-quality projects that are optimistic about the long-term development of the block chain. The original intention is to guide the medium and long-term investment in digital cash’s industry and the healthy development of the industry. Short-term profit from the price difference is not the goal of this fund.
There is not enough money. The size of the fund itself is not large, the amount of fund allocated to each project will not exceed 10%, and the size is not large either. The assets sought by Treasure Hunting for Hundred Million Yuan itself are those with excellent liquidity on the Wellbtc platform. If this large amount of funds can have a greater impact on the liquidity of the project for a long time, then such assets themselves do not meet the screening criteria for Treasure Hunting for Hundred Million Yuan and the fund will not choose.
Position control. Asset allocation for each currency should not exceed 10%. As the currencies in the fund’s portfolio increase, the position of a single currency may be smaller, which is not enough to affect the price.
Investment logic is inconsistent. The original intention of setting up Treasure Hunting for Hundred Million Yuan is not to pursue short-term interests, but to support high-quality assets, to pursue long-term liquidity guarantee of assets and balance of long-term interests, which is similar to the stabilization fund in traditional financial markets. According to the market situation and the fundamental situation of the project, the foundation will carry out appropriate operations. It is impossible for the foundation to reduce its holdings in large quantities and smash the market, which will have adverse effects on the foundation.
Positions will be monthly announced. In addition, we will announce our positions every month and be open and transparent to investors. Here, media friends and experts in the industry are also welcome to supervise.
About Wellbtc futures
Q5. With the mainstream currency represented by BTC entering the stage of fluctuation, the market situation gradually tends to be stable, and investors’ enthusiasm for digital cash gradually shifts to the derivatives trading market, especially the demand for leverage and contracts increases. Spot trading volume in various exchanges intends to be weak, and the sharp increase in contract trading volume also confirms this conclusion. So how do you think this trading platform for digital cash adapt to this change?
A：Contract trading is the demand of investors with high risk preference, which can hedge spot risks and carry out hedging and arbitrage during bear market. With the further development of the market, more and more platform users and more and more specialized users, it is our inevitable choice to provide contract transactions. As long as users have demands, we have the motivation to meet them.
In terms of transaction scale, contract transactions in traditional financial markets are also much larger than spot transactions. The current contract market in digital cash is only tens of billions of US dollars, slightly higher than the spot market, and there is still great room for development in the entire digital cash market and the contract market. In terms of expanding business scale and increasing revenue, contracts are also the market where we need to exert our strength.
However, the risk of contract transaction itself is relatively high, and the requirements on matching engine and wind control are relatively high. In this respect, we will learn from some market cases to continuously explore and optimize after going online. In addition, we will also make some asset innovations in the subject matter of the contract, striving to provide users with some differentiated trading experiences with other contract trading platforms.
The media enthusiastically puts forward questions.
Q6. Wellbtc does not seem to be deeply involved the hot IEO and Staking in this year. What are the reasons for this?
A: The first AVH Japanese adult block chain project of Wellbtc was also very popular at that time. When Wellbtc was just established, it also brought us a surge of users.
This year IEO is in great fever, we have also done it twice and the gains have been not bad, but there was no in-depth participation, which is mainly related to the overall market environment. The development of IEO is a process of “drawing blood” from the market, but now it is in a bear market stage, and the market has not yet developed to a stage where enough incremental funds are pouring in. Although our Treasure Hunting for Hundred Million Yuan plan has been working towards this aspect, we feel that this is not the best time to continue to do IEO.
I feel that IEO is somewhat “spoiled” by various exchanges in the market. The IEO rules of various exchanges also intend to be very chaotic. So, there is a need for IEO to take some time to settle down.
Moreover, referring to the previous US and Hong Kong stock markets, the issuance of new shares will also decline when the overall market is in a downturn. When users and capital are very active, IPO will be more active.
However, as for Staking, there are not many projects that can really support it. Like some star projects such as Ethernet Square and EOS, such projects can create value by themselves, but it is unfeasible for the other projects. It is meaningless to deal with Staking by only one model. The project itself does not generate cash flow, where does the money pay interest? Mode is helpful, but it is not essential part of the project.
Q7. I am Leek from southeast Asia. I see that the communication materials of Wellbtc show that overseas users account for more than 60%. Would you like to know which countries are mainly distributed? What have you done overseas to reach so many users?
A: Currently, the distribution of users is mainly overseas, accounting for only about 35% in mainland China and over 60% overseas. There are more users in Southeast Asian regions, including Indonesia, Vietnam, Japan, South Korea, etc. and there are also many users in Africa and Russia.
As for overseas operation planning, Wellbtc has already launched National Partnership Plan in more than 10 countries and regions such as Africa, South America, Southeast Asia, etc., actively carrying out legal tender OTC business and various forms of off-line industry sermons and technical discussions.
We have also begun to establish cooperation with exchanges around the world to share depth. Recently, the South Korea Exchange Bitsonic has accessed Wellbtc liquidity and launched GOM and MOGX free of charge. In the future, we hope to find a local exchange with good traffic flow in every country or region and access the depth of Wellbtc. Wellbtc pushes high-quality projects to the local market, which plays the same role as Wellbtc. Wallbtc is regarded as an exchange and the local exchange is regarded as a security company.
About the company:
Wellbtc, a Singapore-based digital currency exchange, was founded in 2018.
At present, the total number of registered users has reached 2.8 million, with 100,000 daily users.
The daily turnover can reach 500 million US dollars.
Company Name: Wellbtc INTERNATIONAL FINANCIAL (SINGAPORE) PTE. LTD
Contact Person: Media Relations
Email: Send Email
Phone: +65 6932 9800