BitMax.io English Official Telegram Community AMA (Jul. 14th, 2019)
On July 14th, 2019, BitMax.io conducted an open-topic AMA session at 10:00 am EDT. Dr. George Cao, Co-founder & CEO of BitMax.io, hosted the session and answered questions from the community. Here is the transcription of the event. Please note that the transcript was edited for comprehensibility and coherency, while the content was not changed.
Opening Remarks by George Cao:
Just need a few minutes to share some data with our community, and then we can move on to the Q&A session.
In June, we see month-to-month site traffic growth about 15%, putting us as one of the only two trading platforms that have seen traffic growth in June.
And we are the only platform with 6 consecutive month in web traffic growth.
App visit has exceeded website visit, and become our biggest source of the visit.
Breaking down by country, we see exponential growth in the Japanese market; Tokyo is now among top 5 cities.
We have delivered many new trading features/products, and had very strong listings in the past month. Details please refer to our weekly report.
The 3rd quarter will be our key quarter for several reasons:
1. We have a very healthy listing pipeline. Currently, we have 40 projects that we are talking to, and we expect to list 10–15 quality projects in the next 4–6 weeks.
2. We are planning to roll out future contract trading in the 3rd quarter. We will have an ETA in about a month.
3. We will have a detailed schedule and plan for stopping mining. The plan will be ready in Q3.
4. Of course for the US exchange, we have been keeping working on that.
Altogether, Q3 will be a huge quarter for us. And this is the quarter that will set the tone for the next 12 months. By then, I hope we will be able to compete with some of the largest exchanges in the world.
Dear George, I am core trade miner of your exchange, but there has been a lot of downside on commission of mining and overall mining. I have a suggestion that you keep trade mining fee 0.01% instead of 0.002%, and keep a daily cap 24 hours of 1 mill tokens to be mined. Only after that you can pause the mining or make the commission 0.0001% so people would stop themselves. Please consider.
And, as you told today, you have the plan to stop mining. So when will that be? Current year or next year? Please clarify.
I tend to use lower mining fees to limit mining ratio. It’s a fair competition so the miner with the best algo can be profitable. The timeline for stopping mining will be rolled out in Q3. Nothing has been finalized yet.
How do you monitor other exchanges growth?
Good question. Several ways
Public traffic monitoring websites give us a rough idea of traffic. However, it’s not accurate, because taking us as an example, the Similarweb gives us a 1/3 drop, but it didn’t capture our app traffic growth. So, our real number is actually 15% traffic growth.
Search ratio at google/Baidu
How many times are we mentioned in different channels
Media coverage ratio
We have algos deployed at different exchanges to get a rough idea of their real trading volume, big coins only.
All combined, we can get a sense of our competitors’ number. However, it’s an estimate.
1. What is the accurate data of non-locked circulating tokens of the BitMax team and foundation?
2. As we know, BTMX consists of 5% early investors, 4% strategic partners, 9% private sale, 12% team and platform, 18% Foundation. The 5% early investors and 4% strategic partner can sell their BTMX or not?
3. How to compete with Binance on leverage and futures products to win customers?
4. Why were Sequoia and FBG removed from various propaganda?
5. The marketing plan for July-August is very clear, and I hope to know the plans after the August period (during the mining stoppage in Q3).
6. Why is the trading volume of the ABBC/USDT trading pair so large, second only to the trading volume of BTC/ETH/BNB? Who is trading in this currency?
That’s a good question, I don’t have the number handy, but I would guess it’s around 200m. Again it’s just an estimate, and I might be off a bit.
They can’t sell at this point. Of course, eventually, they will be able to, but they can’t now.
I would say we have some key differences compared with Binance. (I) Our margin product is different. I don’t want to argue which is better, but every model has its own client base; 2) we have a different positioning. We position ourselves as people’s exchange, meaning the trading cost is the lowest with us, and also we share most of the profit with our users; 3) the ability to quickly adapt to market conditions is something we are proud of. We built our entire system in 6 months, built a margin system in 4 weeks. With future products, we estimate another 4 weeks — final ETA in a month. We are the most efficient team in the market to keep delivering new products to our users.
Sequoia and FBG have been very supportive of us as they always are. However, BitMax brand name has lots of recognition now. We want people to use our platform because of who we are, not who invested in us.
Just to make it clear we will have a mining stop plan in Q3. The stop date has not been decided yet. Can be sooner or later. Our key roadmap has not been changed since last year. Everything we do was clearly stated in our strategic plan before we started BitMax.io. I also mentioned in my previous AMA we go parallel in 3 dimensions: 1) new product line — volatility products, future contacts, etc. 2) strategic expansion in asset management, broker dealer, custodian, settlement, incubator, etc. 3) fiat exchanges in different jurisdictions. It’s a long, long journey, I don’t expect any of above can be achieved within a short amount of time. But I am very sure that we are in the right direction.
we noticed it and have been actively talking to the abbc team for 2 weeks. We will resolve it soon.
After turning off mining, the reward for providing data will decrease. What is the plan for the team to keep the reward at this level or higher?
I will release my model of calculation once it’s completed. Based on our rough calculation, the average daily reward per million BTMX will decrease a bit in the first half year, and then it will start rising after 6–8 months to a level that is much higher than the current rate.
Hey George — how will we benefit from the US exchange? Are the order books shared? Are the fees generated in the US distributed in the liquidity pool? Could you please explain a little?
I can’t talk too much about US trading platform. But we will do whatever we can to share more benefits with BTMX holders.
So once mining is stopped, then how will the remaining pvt sale and other tokens release? Asking this cause i have bought a huge quantity of btmxp so curious how will they get released if mining is stopped or will you stop mining after all tokens are released. Please clarify. Thanks.
If you have read our announcements and my previous AMA, you will know that our current plan is to release private sale tokens based on the rate of the permanently locked token. For every 2 tokens get permanently locked up, we will release one private sale token. We plan to stop releasing team foundation and equity tokens. So all the quotas would go to private sale tokens.
IMO it will add a lot of value if you can write an article about your vision regarding the supply. There are a lot of uncertainties and for new ppl it’s really confusing to see the circulating supply (and what the max valuation is). All responses are somewhere between 1 and 6B. That doesn’t make so much sense, as you are saying, somewhere between 100m$ and 600m$. Any plans to do this?
Besides that, you just mentioned that mining would stop in Q3? So how will btmxp release * _ * or does it mean that all btmxp are released before the end of Q3? And the team tokens are “planned” to not be released anymore, any ETA of confirmation on that?
It’s not that I don’t want to make it clear; it’s because that we have not finalized the plan. It’s a big big project where we are changing the entire token economics. Also, keep in mind no mining exchanges have survived for over 3 months; and no mining exchanges have successfully turned themselves into a regular exchange without losing 90% of their users. We are doing something unprecedent; that’s why we have to be extra careful. My answer to the circulation supply is that it will definitely be under 3B. However, the final number has not been finalized yet.
To date, private sale has received 17% of private sale token, and it’s been a year since contribution. At the current rate, it will take another 4.8 years. I keep hearing “we don’t plan to take that long,” but the solution has been accelerator and btmxp, which tack on fees for private sale tokens to be released. How does this sound fair to the early private sale contributor?
We did whatever we can to accelerate the release. 1) If we released faster as many other tokens, token price would be much lower; thus private investors would not be happy either; 2) All acceleration features are optional. you can choose not to use it if you found it unfair. 3) Keep in mind, the team hasn’t sold any token, so the acceleration options are also taking advantage of team quota. We expected appreciation from our investors. 4) BTMXP is a great option to liquidate your investment if there is a need. You can sell all your private sale quota to the secondary market with potential huge profits. I don’t see any reason that private investors need to complain:)
So in short, trade mining won’t be stopped until all BTMXP tokens are released right? Would appreciate a clear yes/no.
No. We will stop sooner than that.
This is huge! If all quota goes to a private sale, at the current rate, it would be like 5x faster right?
It depends on many factors but it would be safe to say it won’t be slower than now, but it probably won’t be as fast as 5x.
Yes, I understand that, to get the idea “if everything was like now except all release to private quota.”
It’s actually quite different. When we stop mining, the release speed is 100% controlled by the market, not us. We can control the speed now because we can adjust mining ratio. But we won’t be able to do it anymore once the mining is stopped.
Thx for the detailed response as always. What is your expectation of all btmxp released? Rough estimate?
When do you give clarity if and when team tokens won’t be included in the released btmxp?
Again my goal is about how much money you can bring home not how many Btmxp you can release.
Please keep in mind: the faster it releases, the lower price it will be. My goal is to find a balance point where all our investors can take home potentially max profit. Personally, I would be happy to forfeit 50% of my token if the rest could go 3x. It’s simple math, right ? :)
But the acceleration will still be possible right? So the x5 will be approx x10 lol?
Acceleration option, I am not sure about that. That’s one of the parts we haven’t finalized yet.
How many members in a BitMax team now?
Is there anything special about the ABBC coin? Is the institution trading? Why is the transaction volume so large?
After stopping mining, the policy of the 5/10 times of private acceleration will be canceled? The BTXMP releasing speed will be slower than current?
We noticed the abnormal trading volume on ABBC. We are actively talking to the team as well as the project’s designated market maker.
When can I use Fiat(USD) trading?
Please wait for an official announcement.
Hi, George in the incident of a hack — do you have insurance fund? How do you work to prevent hacks keep funds secure
We are not as rich as Binance yet to have a fund. However, we do our best to protect user’s asset in the event of hacking or other incidents.
George — “Break down by country, we see exponential growth in the Japanese market, Tokyo visits is now among the top 5 cities.” You do not think it because of this — “Japanese Financial Service Agency (FSA) is currently considering the application of Line corporation to launch a cryptocurrency exchange. If events turn out positive, BitMax, as the crypto exchange is called, may be launched in Q3 of 2019.
Line Corporation is Japan’s most popular messaging app with a user base of around 80 million local users.”
Haha, it’s a coincidence. I don’t think it’s the driving force.
One thing, will be able to control reverse mining?
Already in the process. We now can set reverse mining rates for different trading pairs.
If I understand right, after mining stops in Q3, holders of BTMX will continue to get a share of BitMax exchange trading commission which will start rise after 6–8 month to a level that is much higher than the current rate.
We will announce the mining stop plan in Q3. The exact stop date is TBD. Yes, data usage reward will be continued.
Will the revenue from the purchase of volatility products go into the Distribution pool?
The volatility cards will be tradable as option contracts possibly as soon as early as next week. So people can create their own cards. I don’t expect much revenue other than BTMX tokens which will be permanently locked up.
There is any plan to put reverse mining fees for taker orders also? Or will remain only on maker orders?
Any plans for changing i.e.o. Model? f.e for Lottery / allocation variant
Are you considering a positive growth model of the distribution pool after mining?
The only way is to boost trading volume, which we have been working on since Day 1.
What I am concerned about is that the source of the distribution pool lies in mining profits. If it stops, it would be a sudden depletion of the distribution pool. Do you have any ideas about that?
Once you see my model, you will get a better idea. Let’s be a bit patient :)