ChainUP’s BitWind offering creates a pool of liquidity that is comparable to those of top exchanges, thereby helping novice and operating digital asset exchanges increase their transaction volumes. On crypto exchanges, liquidity basically refers to the ease of conversions between tokens or to cash. Closely related to market depth and exchange transactions, it correlates with the number of users, level of activity and amount of funds that are being transacted. Important in traditional stock markets, liquidity plays an even more crucial role in crypto markets.
Huobi founder Li Lin has said that: “Asset volume and liquidity are the core indicators of the strength of an exchange.”
In the same vein, founder and CEO of ChainUP, Zhong Gengfa, often mentions how important high-quality assets are to the development of an exchange and how liquidity constitutes the core experience on an exchange.
Beginning with its first client in September 2017, ChainUP has identified how important liquid products are on an exchange. A leading blockchain technology service provider that has formed eight mature product lines, ChainUP’s realm of expertise includes cryptocurrency exchange, liquidity support, public and alliance chains, wallet, mining pool, situational awareness, blockchain cloud media as well as broker services.
Integrating the liquidity of 300 exchanges served by ChainUP from all over the world, the BitWind liquidity brand creates a liquidity experience that is comparable to those of top exchanges, thereby helping exchanges to increase transaction volumes.
In the second half of 2019, exchanges were confronted with a severe challenge – the competition amongst exchanges for higher liquidity. For professional service providers, this was an unprecedented opportunity. With exchanges focusing on infrastructure factors like technical services, situational awareness services, market software, professional quantitative market-making platforms and decentralised asset derivatives, the trend was for tech service providers to step in.
In a Jinse Finance interview, BitWind’s Liquidity Product Operations Director shared that “many customers encounter[ed] standard difficulties when they [began] operations.” A typical feedback from BitWind’s increasing base of customers has been “the crucial role liquidity plays in operations.” It was a pivotal pain point that exchanges faced.
The independent BitWind liquidity brand required more than half a year to hone before it was finally launched. The goal was to meet user needs and provide the best market depth and trading experience, thereby helping exchanges implement operations smoothly. Even though the product was created for B2B businesses, BitWind could cater the range of novice exchange teams to operating exchanges, wallet dealers to brokers, institutional traders and more.
In principle, BitWind is established as the ecology centre and aggregates the liquidity of over 300 exchanges. With the ‘upstream’ providing liquidity for the ‘downstream’, the BitWind liquidity product has created a liquidity pool that can service all the mainstream currencies in the market.
To provide trading services to their end-users, exchanges only needed to add a trading entry on their platforms. With that they could access the shared liquidity and aggregation market of the underlying trading network.
The BitWind product supports spot liquidity, the privatised ETF liquidity of ChainUP as well as platform currency liquidity etc. Opening a credit account allows an exchange to access liquidity and also create liquidity more freely from the leverage function. Of special mention, ChainUP has a dedicated network price aggregator that can provide the fastest price quotes as well as ultra-low order delays. Other features include one-click trading, one-second price comparisons and low-buying and high-selling.
Emerging exchanges can access optimal quotes, sufficient traffic, the best market depth, lower spreads and avoid the risk of arbitrage losses while simultaneously increasing trading volume. It can leverage operating and capital value in a bear market, and maintain its competitive edge and grasp market opportunities in a bull market.
Currently serving more than 500 global customers, ChainUP’s customers include 300-plus digital asset exchanges and 100-plus digital wallet customers, hailing from over 20 countries in Southeast Asia, the Middle East, Europe and America. Millions of customers contribute to the huge aggregated user volume which naturally creates liquidity. The BitWind liquidity brand currently serves more than 150 customers. From the synergies of the various flows in the ecology, siphoning effects are formed that create sustainable positive cycles.
Regarding the competitive advantages of BitWind, BitWind has 300 exchange depths, high-performance matching engines, comprehensive transaction functionalities, three-five times spot leverage allocations, minimum transaction delays, powerful technology and support for 100 public chains and eight major protocols.