Year-End Letter from ACDX
A summary of the happenings in ACDX
Let’s begin with how it started.
ACDX was built with the goal of disrupting the cryptocurrency market. In the year of 2020, Bitcoin bottomed at around the $4,000 mark when the COVID-19 pandemic hit us. It was the dark age of cryptocurrency.
“Bitcoin is going to zero,” they said. Fear spread across the markets. The trading volume of cryptocurrency has never been lower. Traders lost faith in the spot market and remained active in trading only one product — derivatives. Crypto traders were used to the fast pace of price movements, which alt-coins were no longer be able to provide. They turned to the derivatives market to search for the excitement, and the prospect of 100x profit from leverages.
Seeing the potential in derivatives, we founded ACDX. To be ahead of the curve, we put our eyes on structured products, as you can imagine, it is difficult to compete with established exchanges like Binance on delta one products, i.e. perpetual futures. It is logical to have our own niche.
We launched the exchange in September, with products like futures spread, US Tech 100 index. ACDX also introduced the multi-collateral, an advanced feature that allows you to utilize all your assets as the collateral for your derivatives positions, and it is still yet to be found on some of the biggest exchanges. Our developers put a lot of resources and efforts into the innovations. We provide what sophisticated traders truly desire. These are not something a white-label platform can offer.
But during that time, a new trend had already shaped and split the market into two — centralized and decentralized. The DeFi Summer continued to gain traction. We saw new protocols daily, and suddenly a whole new decentralized ecosystem was created. New projects emerged at an unprecedented rate. Soon after, the spot market exploded again.
That was also the reason why we introduced and partnered with projects like DigiCol, Casper, etc., to our community. Still, it is also important for us to stay focused and stick to our original plan in launching the first crypto structured product — Bull Bear Strike Token.
In 2021, Bull Bear Strike Token finally went live. Soon after, the market crashed again. Seeing the market swings, we launched another investment product AC Savings, offering our users opportunities to earn wherever the market goes. But as the market uncertainty stretched, and with all the DeFi protocols jammed in the Ethereum blockchain, gas fee rocketed to a new level no one had expected. Soon, NFT was in the spotlight, adding an extra burden to the Ethereum network.
With such changes, BitGo, our wallet service provider was no longer a viable option. The operational costs multiplied, we had to shift resources into developing new wallets immediately, not only for supporting cheaper options like TRC20 network, but also reducing the interactions between our multi-signature wallets. Extra efforts were placed to ensure the security of the platform.
The mobile app launch was delayed due to wallet development. At the same time, we set up AC Ventures to offer private round allocations in order to reward our supporters.
Although the market didn’t seem to be in our favor, we continued to do our best to deliver what was planned in our roadmap. As the market craze remained and costs heightened, the operation became unsustainable, new fundings were necessary for further product development and expansion.
A lot of resources were spent on exploring the opportunities of SPAC. We had gone through a lot of discussions with different listed companies, and were only inches away from closing deals. Unfortunately, as regulators clamped down on cryptocurrency this year, discussions were put on hold and efforts were misspent. We have to admit that during that time, resources were misplaced on fundraising and we missed the opportunity of listing the new wave of alt-coins to capture more users. But this was not a course of action that was chosen lightly.
We slowed down the business, reviewed all the costs, and made sure all the resources were well spent. Also, as demanded by the community, liquidity farming program was ceased.
Eventually, the community lost patience and became frustrated with the development of the platform. This was absolutely not something we wished to see, we were also disappointed, as things unfolded and we were unable to take ACDX to a higher level.
It is true that the market and ACDX do not come close to meeting our expectations and plans. We understand that a new direction is needed. We have studied multiple scenarios and have adopted the most appropriate approach.
In the coming months, we will be diverting the remaining resources into Bull Bear Strike Token, optimizing the trading experience, and executing a rebranding to push awareness under this new crypto landscape. Meanwhile, we will continue to look for funding to support the scaling of the platform.
Whilst this is a difficult time, we face significant challenges in this new restricting environment, and it is also obvious that recovery will be slow. ACDX will carry on and advance again when the opportunity comes.