#AMA hosted by Coiner Vietnam with AAX’s Content & Business Strategist, Ben Caselin
Time: April 01, 9pm HKT
AAX is passionate about connecting with communities to increase brand awareness among traders globally, and learn more about their experience. This week, our very own Content & Business Strategist, Ben Caselin hosted an ‘ask me anything’ on Telegram, here’s what happened.
Drawing from experience ranging from the creative arts to working with tech and crypto companies across exchange, remittances, security and human rights, Ben Caselin leads content and supports business strategy at AAX.
“Content is the thread that links all conversations in the company into one single vision that speaks to the industry at all levels. But it’s also about making that vision a reality and truly driving innovation. Content informs token listings, design, product, market infrastructure and building new connections to the ecosystem. The goal is to become the exchange of choice, a venue where crypto meets global finance.”
Questions posed by community members
1. Currently, Covid is affecting many global economies, BTC is more or less affected, so what is AAX’s plan to support fellow people around the world, as well as elite traders everywhere.
Thanks for asking. Of course, in trying to lessen the spread of the virus, many of us are working from home, in line with social distancing measures.
From a crypto perspective, there are many different ways to approach this.
First, in our communications and educational work, we provide regular analyses of market conditions and teach our community about how to mitigate risk and build stability into a portfolio.Everyone responds differently to uncertainty and the least we can do is making it as easy as possible for investors to move in and out of crypto, as they please. A big focus is therefore our OTC trading desk, where our users can exchange crypto for fiat, and vice versa.
Another point worth mentioning is that in times of great turmoil and volatility, stability is key. As you know, we operate some of the finest technology in the industry, so even during episodes of immense stress, our markets function as usual.
Lastly, especially in times like these, it’s also about providing continuity. We’re aware of the crisis and we’re seeing the impact just like everyone else, but it doesn’t stop us from rolling out new products, new financial instruments, and now, our own exchange token.
We want to keep our community engaged and now, with AAB, we’re inviting everyone to be part of our growth.
2. CryptoCompare recently featured AAX as one of the top 20 exchanges in the world, so can you tell me the core values that you think have created success for AAX today?
There are many different ways to rank an exchange. What’s great about CryptoCompare is that they focus on quality and potential, rather than trade volume alone — the former is the core of any business, while the latter is malleable.
CryptoCompare placed us in the top twenty, because our fundamentals are in order.
In terms of performance, we run one of the fastest and most resilient exchanges in the industry — as you know, we operate Millennium Exchange, a world-class matching engine developed by London Stock Exchange Group’s LSEG Technology.
We also rank high for our commitment to integrity. We value and practice transparency, have systems in place to guard against market manipulation, and engage, rather than try to dodge the regulator.
We’re also strong on the security front, where we’ve benefitted greatly from our work with Kroll — a leading security firm that also advises governments, banks and even intelligence agencies. We are compliant with CCSS — a recognized standard for securing digital assets.
3. How does AAX assess the potential of the Vietnamese market? What is your strategy to attract new users?
Entering a new market is not just a matter of targeting an audience with ads. That’s part of it, but it’s also about really engaging the market. We work together with local agencies, reach out to industry partners, organize special campaigns specifically for that market, give local traders an opportunity to build their own AAX Tribe, and we also look to make sure we can provide solid fiat on and off ramps in sync with the needs of the market.
Vietnam is one of the most exciting markets. You guys are great. There is so much enthusiasm and excitement about everything crypto. But you know, crypto is not just a fun and exciting activity. What we’re trying to bring across is that crypto is a gateway — it provides an avenue for more and more people, even the unbanked, to participate in finance.
When things have calmed down again and it is safe to do so, I’m sure there will be opportunities in Vietnam to meet with our community in person. It’d be really nice if we could celebrate our achievements in Vietnam together.
4. The launch of many features will attract users, but that will attract many hackers. So what security features does AAX use so that hackers can not get what they want?
Cryptocurrency is special. Blockchain technology made it possible to create unique assets. Pictures, music, documents, software, basically anything can be copied. But on the blockchain this is not possible — you cannot copy Bitcoin and spend it twice.
The danger is not so much on the blockchain, but at the point between two protocols where people exchange assets.
We recognized this from when we first started building AAX. We operate a multi-tiered security system with no single point of failure, and upon request we can also offer our clients custody solutions.
But equally important is the protection of client data. You see, if a Bitcoin gets stolen, essentially someone can be reimbursed, the funds could be retrieved, or the person can work hard and replenish their funds. But if your personal data gets stolen, it can get copied, end up on the dark web, and who knows what crimes can be committed in your name.
All businesses should take client data very serious and do everything to protect people’s most valuable assets.
5. When is VND supported on the OTC feature of AAX? What are your plans to compete with the current big OTC platforms in Vietnam such as Remitano, Houbi, Okex, Binance?
We are always working on expanding our fiat on and off ramps and will soon be opening up another payment gateway that should make it even easier for everyone to cash in and out of crypto.
There is a healthy competition between exchanges in crypto land, but it’s also good to mention that we like most other exchanges very much. This industry is full of innovative players and it’s great to see progress.
Competing for us is not about blocking the growth of another or some obsession to be bigger than another. It’s about being different and offering something truly unique, and then it’s about owning that space and inviting others to join and help make your vision a reality.
6. What is the key market of AAX exchange? Now that cryptocurrency laws have been passed in some countries, is that a turning point for the global development of AAX exchange?
There is no ‘one’ key market. We’re focused on Asia, Europe, and are starting to gain traction in Africa. Every market is different and while some of our markets may bring more volume, other markets bring enthusiasm, while another may bring sophistication. AAX is all about bringing these elements together and drive home the point that the crypto world is essentially borderless.
Crypto regulation is taking shape indeed, but it’s not there yet. We’re keeping track of regulation and we abide by the law. Of course, sometimes this makes things complicated from an operational or commercial point of view, but it’s ok.
As an exchange, we have a responsibility to provide a legit venue for traders and to support regulators are they strive to provide better consumer protection.
7. It seems LSEG Technology is a core technology of AAX Exchange, can you tell us what its function is and what problems will it solve in the field of cryptocurrencies today?
This is the first time that an industry-grade, high-quality matching engine is used to power a crypto exchange. This engine is the same engine that is at the heart of London Stock Exchange, Borsa Italiana, and other global markets.
It’s fast! This is important for price discovery and also to be able to onboard high-frequency traders for whom a millisecond can make a lot of difference.
It’s reliable. It’s not just the engine that’s strong, but also, it’s the first time this technology has been deployed on the cloud. Running it on AWS maximized uptimes
It’s compliant. This engine was designed to be MiFid II compliant — and regulators appreciate this.
Lastly, it’s cool. The idea that we can now trade digital assets on an exchange that runs the same technology as London, that’s a victory. But more importantly, it instills confidence. Professional market makers, high frequency traders, institutional investors, this is a familiar technology to them, and that’s the key to gaining trust.
8. Today, there are many new crypto exchanges as well as famous old crypto exchanges facing Liquidity problems & it leads to shutdown, So how you solve this liquidity problem & ensures that users get good liquidity?
Liquidity is about so many things. Of course, to provide liquidity on our platform there are market makers in place, it’s about growing a community so more and more people trade.
Liquidity is also about making it easy to move from fiat to crypto and back.
But there is another important point here: what happened last month, when the stock markets crashed, was the result of panic. This could not have been prevented. But the impact of it could have been mitigated for sure.
As investors fled to cash and Bitcoin plummeted, with it, a lot of contract traders got liquidated, which in turn triggered more liquidations. Bitcoin-settled contracts are not ideal in such a situation.
This is why, this week, we’ve launched USDT settled contracts. As you know, during the crash, USDT and other stablecoins held their ground and their peg was maintained.
USDT settled contracts introduce a level of stability into the futures market and eliminate (or minimize) unwanted exposures. We have more USDT settled contracts in the pipeline, against other cryptocurrencies, but also against what we call Bitcoin Dimensions — but for now, we can’t elaborate on that.
9. Recent hacks on Vechain, IOTA, and Steem. Now, how do you provide a better and good security to the project? And how AAX exchange can protect its users from hackers?
As I mentioned before, security is top of mind for us, always. Anyone in security will agree that you can never ‘guarantee’ that you can’t be hacked. But over the past few years, a lot of mistakes have been made by both big and small exchanges, and we’ve taken those mistakes into account and we’ve also implemented best practices from other industries.
But as you can guess, I can’t share more than that. I can tell you, I have a very difficult password, but if I start explaining why it’s so difficult, then I might as well just give you my login details. Lol.
What you could do, however, is have a look at CryptoCurrrency Security Standard (CCSS). You can find it online, as it’s open source, and that may give some ideas about how we think about security.
10. You know, there’s a lot of competition between the exchanges. What are your priorities to make yourself better than them. What do you offer investors as extras to pick you?
Well, I’ve already explained that for us it’s all about differentiation. So perhaps it’s better I just tell you about two awesome projects.
One, I’d highly recommend everyone to go to our exchange and check out PhiGold (PGX). This commodity token enables you to invest in the gold mining industry. Basically, by buying the token you’re enabling the miners to dig up gold. Later on, after about two years, you can redeem your token for 1/100th of an ounce of gold.
So today, 1 PGX costs $10, but the actual price of gold in $16 (and it hasn’t been below $10 in over 10 years). So, basically, it’s buying gold at a major discount (37.5%) if we refer to the current spot price of gold.
This is very unique product that is opening up an investment space where previously only investment banks and the elite could participate.
This is the type of stuff we’re interested in, this is how we connect crypto to global finance.
Another great development is the launch of our own native exchange token, AAB.
So, just like Binance Coin, Huobi Token, FTX Token, AAB is an exchange token that makes it possible to trade with a discount of up to 50%. It can also be used to unlock special features on our platform.
But it’s also an aggressive coin. There will be daily coinburns, funded by 100% of all our earnings on our derivatives markets. We will continue doing this until 50% of the total supply of AAB is destroyed. We can’t promise anything, but we for sure this will be cause for some interesting price action.
On the 16th of April, AAB will be on offer for $1 per token.
But on the 14th and 16th we have also organized two flash sales where AAB is on offer at a 50% discount.
Only 500 people can participate per round. So, be quick!
And to make it even better, in those two rounds, half of all buyers will get their money back and they get to keep $1000 worth of AAB, for FREE.
That’s how we compete.