Huobi x FLOW | AMA Recap
“As we continue to build on our strategy to capture a significant market share of the global NFT market, we expect more initiatives to be announced in the near future.” — Ciara Sun, Vice President of Huobi Global Markets
Nonfungible tokens (NFTs) are arguably the most discussed crypto topic of 2021. Everyone, from artists to athletes and major companies, wants a piece of the growing market right now. While the NFT market is growing globally, few platforms and marketplaces cater to the Asia-Pacific region. To address this gap and provide NFT trading services built for a global scale, Huobi has a long-term strategy to become a leader in the space.
On 16th August, Huobi invited Mik, Chief Bussiness Officer of Dapper Labs, and Ciara Sun, Vice President of Huobi Global Markets, to join an AMA with over 81,328 community members at Huobi Global Telegram group. Now, it’s time to learn what they’ve discussed on “Promoting the New Era of NFTs”.
Q1: We already made an overview of Flow and Dapper Labs. But could you tell us the global vision for the Flow and ecosystem: what unites all these projects and how you think the ecosystem will look like in a few years?
Mik: It’s crazy to think that it’s been barely a year and so many things have happened across the Flow ecosystem. This time last year NBA Top Shot was barely in private beta and now they’ve generated over $700M in sales and become a global icon — and they’re just getting started.
Of course, the Flow ecosystem has come a long way too, with nearly 80 projects already launched on Flow mainnet or planning to launch in the coming months. The momentum we’ve witnessed across each segment has been astounding: 5x increase in dev community growth with over 2,000 devs, $1B+ transaction volume generated across live projects, and a strong community of over 1.8M wallet accounts distributed globally.
In terms of ecosystem partners, we have a very diverse global representation with projects from North America, to LatAm to EU to Asia (China, Japan, S Korea). If we were to try to distill one unifying component across all Flow ecosystem projects, it’s the strong focus on creating superb experiences powered by blockchain for the mainstream audience. Whether it is an NFT marketplace (VIV3, Eternal, Versus), gaming (Chainmonsters, Enemy Metal, Dark Country), sports (NBA Top Shot, MotoGP, Olympics, UFC) or literal historical moments like CNN, they are all laser focused in lowering the barrier to onboard a global user base.
In order to achieve the true vision of mass consumer adoption for crypto, we need to bring the experiences where consumers are, not the other way around.
🔹Q2: Currently there are many digital asset derivatives platforms, but Huobi Futures trading volume ranks among the forefront of the industry all year round, and is particularly favored by users. How did you achieve this?
Ciara: Whether a digital asset derivatives platform can retain users depends mainly on the platform’s risk control capability, transaction depth, system performance and user experience.
In order to protect user funds and transaction security, Huobi has long adhered to high-standard risk control requirements. Since its official establishment, the platform has been operating stably with zero security incidents for 8 years. As an important carrier of Huobi digital asset derivatives, Huobi Futures has been continuously exploring and innovating in terms of reducing user liquidation risks and user protection. With multiple risk protection systems implemented, Huobi Futures has continuously maintained “zero allocation” since its launch and is the only “zero allocation” derivatives trading platform in the industry.
Huobi Futures attaches great importance to the issue of transaction depth. Asset liquidity is the lifeblood of various digital asset targets. The prerequisite for stable trading of each currency is to ensure sufficient liquidity in the market, as this can ensure that users open and close transaction with minimal slippage, and maximize the trading needs of general users and professional quantitative teams.
Of course, every good product is inseparable from continuous polishing. Huobi Futures has always maintained high-frequency upgrades and iterations of product functions and system performance, striving to simplify user operation procedures and continuously improve users’ trading experience. At the same time, we have been selecting and listing mainstream high-quality currencies in the market to meet the different transaction needs of more users.
🔹Q3: Let’s speak about the Flow blockchain itself. What is next for the Flow? Over time, blockchains are trying to integrate different bridges, add more stablecoins, launch their own DEXs and other DeFi applications. What’s there in the future for the Flow blockchain?
Mik: Thanks to the success of NBA Top Shot, all the major sports leagues worldwide are reaching out to build similar experiences on Flow. So we are definitely seeing massive interest on that front. Interestingly, since the launch of NBA Top Shot, we’ve noticed that collectors who previously didn’t watch a lot of NBA games have become way more engaged and started following the games more closely. We believe that the new digital experience powered by Flow will unlock new levels of fan engagement that were impossible before.
Notwithstanding the popularity of sport collectibles, we’re also seeing strong momentum across many other sectors, spanning art, sports, fashion, music, social causes, DeFi and more.
There are definitely bridges with other chains that are in the process of being built right now, in addition to FUSD stablecoin, which is already live on Flow mainnet, and USDC coming soon. We’ve also seen how BloctoSwap DEX is already doing $50M+ in transaction volume to date. In that regard, Flow is a fully fledged general computation blockchain where any type of dapp can be built on it. What makes us different from other chains is that a lot of the services and infrastructure layers are being built with an eye toward lowering onboarding friction and consumer adoption. For example, stablecoins on Flow will power the seamless experience behind many marketplaces, thanks to direct fiat onramp offered by providers like Moonpay and Ramp.
If you’re interested, Flowverse.co is a great hub to learn more about the latest projects on Flow and all of the upcoming drops.
🔹Q4: To Ciara: Huobi Futures is currently live with many dozens of NFT and GameFi board coins, including Flow. With the recent market rebound, transactions of these two trading boards are also extremely hot. How do you think with this phenomenon?
Ciara: The recent explosive popularity of NFT and GameFi is behind the recognition of the market development model and huge imagination. Many people believe that NFT and GameFi represent the way forward of blockchain with unlimited potential, and this is valid. Market capital tends to flow spontaneously to those areas with more value, we call this “smart money”, and when this type of money acts collectively, it indicates that a new trend may be forming in a short period of time. Huobi always keeps an eye on the market. We hope to provide users with as many options as possible when risks are controllable.
As one of the leaders in the NFT and GameFi sub-segment, FLOW has a good ecology and a strong market demand for trading. In this way, Huobi Futures has been officially listed Flow recently, and users can hedge their risk by holding long positions to earn greater returns in the long market, or they can use short positions to hedge during their participation in DeFi activities.
🔹Q5: To Mik: People are crazy these days about the PlayToEarn concept after AxieInfinity and similar projects. Flow is the main platform for mainstream development of similar games in the eyes of the community. Are you planning to target this segment? Do you think that it will be with us for a long time?
Mik: Axie Infinity has done a phenomenal job with their game and has shown the appeal of combining fun with NFTs, which is the same philosophy that drove Dapper Labs to create CryptoKitties in the first place. That said, I believe that we are just getting started on what blockchain gaming can offer. As Max Weber, CEO of Chainmonsters, correctly put it, what we have seen so far has been a lot of play-to-earn type of blockchain games, with a very strong reliance on the financial incentive front.
Personally, I think truly massive games are played because they are first and foremost fun to play. For that reason, we’re very eager to see teams putting focus on the sustainability aspect of gameplay and lowering the barrier to adoption. For example, Chainmonsters is an up-and-coming game built on Flow that is taking a free-to-play route, with an NFT experience embedded into it. In a way, they’re forcing themselves to ensure that the majority of users stick around just because the game’s fun. Beyond that, they’re also offering ways for more engaged users to jump into the full blockchain experience, to collect NFTs and battle each other for prizes.
There will always be core players who will make a career out of the play-to-earn component, similar to e-sports professional players or streamers from mainstream sectors, but the majority of users should not be financially motivated to just play. In addition to Chainmonsters, as mentioned earlier, there are many other games building on Flow, like Enemy Metal, which recently just concluded their nearly $1M Foundation pack drop — or Dark Countries, offering a trading card game with a metaverse component via their virtual lands. Some other projects include MotoGP, olympics, car racing games, role playing and more, and they’re all experimenting with different engagement strategies. We are definitely excited to see such a diverse set of projects building on Flow and we can’t wait to see how each of them will develop.
🔹Q6: To Ciara: It is understood that as a new currency of Huobi Futures, FLOW has also recently landed on Huobi Earn simultaneously. Could you please introduce Huobi Earn to us? What was the original intention of listing FLOW financial products?
Ciara: Huobi Earn is an efficient t product that can provide users with passive income in the form of flexible financial management or regular financial management. As one of Huobi’s innovative products that continuous exploration of the financial laws of the crypto market, Huobi Earn’s mission is to build a low-risk environment for market participants, so that every user can use it to achieve a steady increase in their digital asset wealth.
At present, as we have seen, FLOW already has a relatively good ecological foundation. As an integral part of the crypto market, FLOW ecology participants, like other digital asset enthusiasts, are value users that we very much recognize and expect. Therefore, in addition to launching FLOW derivative trading products, we also hope to provide FLOW token holders with better quality and professional services through more useful tools. For example, the recent launch of Huobi Earn’s FLOW high annualized return fixed-term financial products, it can meet the different needs of participants with different risk preferences, and will also promote the better development of the FLOW ecosystem.
🔹Q7: To Mik: The latest incredible news: Shopify allows merchants to sell NFTs directly through their storefronts and Flow is the first blockchain for the NBA’s Chicago Bulls historical drop. Are you planning more integrations like this? In such events, people fully own their works on-chain, or is it more about partnerships without the ability to withdraw works and trade them on the marketplaces?
Mik: Yes, Shopify announcing their support for Flow blockchain made them one of first Fortune 500 companies to join the ecosystem. The Chicago Bulls completed their very successful historical NFT drop by leveraging that Shopify integration with Flow, powered by Mint.store.
Participants in the Chicago Bulls drop were able to use Shopify’s familiar and seamless experience, while leveraging the Flow blockchain “superpower” underneath it to mint NFTs without a lot of complexity for the end users. In this particular case, NFTs were minted on chain and the wallet used was custodial, but that’s an implementation preference that any partner building on Flow can choose.
For example, CNN Vault platform leverages a non-custodial Blocto wallet for their NFT drop, while still offering the easy fiat payment onramp to their users. In this case, users fully own and control their wallet and can freely transfer or trade the NFTs on any marketplace. Once users get their drop from CNN, if they are lucky enough to grab one due to high demand, they can easily trade it on VIV3 marketplace https://viv3.com/highlights/vault-by-cnn.
The ecosystem is evolving at a rapid pace and we’re seeing a rich variety of experiences leveraging different types of integration patterns — and that’s okay! The diversity and welcoming mentality actually strengthen the Flow ecosystem. Plus, these examples are just the tip of the iceberg. There is so much coming to the Flow ecosystem, like a full roster of A-list celebrities with Genies Marketplace, launching soon. These kinds of integrations perfectly align with our ecosystem goal of bringing crypto mainstream and meeting consumers where they are.
🔹Q8: To Mik: I know that you are actively helping teams and projects developing on Flow. For example, the Versus platform and Viv3 were developed by third-party teams with the support of Flow. What is your approach to the selection of projects and what kind of assistance they can count on?
Mik: The type of support we provide is usually either technical or related to co-marketing. On the technical side, it’s important to note that each project still needs their own dev team to actually build out the product. Developer support is typically carried out in our Discord server where you can find a lot of our core developers there daily, answering a variety of technical questions. As projects reach a mature stage of development, we will provide advice on how to architect the dapp to handle massive consumer scale.
For the co-marketing front, we are happy to assist and advise any serious project that reaches the point of getting ready to launch on Flow mainnet. With over 1.8M wallet accounts, Flow has one of the fastest growing global communities eager to engage and try out new products. We’ve advised numerous projects on their launch strategy to date and we’re happy to share the experience we’ve accumulated with the broader ecosystem partners. In short, we are here to help.
That said, there is nothing magical about the support that we give. Each team that’s launched their project on Flow mainnet, whether they are VIV3, Versus, Chainmonster, Enemy Metal, MotoGP by Animoca, Olympics by nWayPlay, CNN by Gig Labs, Chicago Bulls by MINT or many others, have been laser focused on building out their respective projects with long term goals in mind. That’s what makes them special and what’s led to their successes to date. Most projects that were serious about launching on Flow all exceeded their initial estimates, thanks to a large and enthusiastic global community.
🔹Q9: To Ciara: We have seen that that Huobi Earn offers users up to 50% APY on FLOW term deposits. What is the basis for Huobi Earn to provide users with such a high APY? As ordinary users, how can we participate?
Ciara: Since its establishment 8 years ago, Huobi has been committed to providing professional management services for global digital asset enthusiasts. At present, in the context of the continuous expansion of total scale of global digital asset management, Huobi has accumulated very rich and professional digital asset management experience through hard exploration and experimentation. Our industry-leading asset-side investment and operational strategies are the key to Huobi Earn’s ability to consistently deliver higher yielding digital asset products to our customers.
Recently, Huobi Earn has launched fixed deposit products with multiple assets such as FLOW and NFT. The annualized rate of return is generally as high as 50%. It is actually very simple for users to get involved. Taking FLOW as an example, users can log in to Huobi Global on the Web, click on “Huobi Earn” under “Finance” in the navigation menu, or click on “Huobi Earn” on the home page on the App side, and then stake FLOW to participate. Upon maturity of the time deposit, users can also transfer their FLOW balance to the flexible deposit and enjoy a 2% annualized return.
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