Annual Review of 2023: Rising Above the Tide

LIZZIE LU
ZMQuant
Published in
6 min readJan 2, 2024

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Overview

In the dynamic world of cryptocurrency, ZMQuant has stood out in 2023 as a beacon of innovation, stability, and growth. Our dedicated team has worked tirelessly to provide top-tier market-making services to a wide array of crypto projects, ensuring liquidity and stability in an often volatile market. As we reflect on the past year, we are proud to share our accomplishments, challenges, and the lessons we’ve learned along the way.

Business Expansion

This year marked a significant milestone for us as we successfully expanded our services to 6 new crypto exchanges. This achievement reflects our capability to expand business and demonstrates our team’s keen insight and rapid response to market dynamics.

Besides, we robustly managed over 265 crypto assets and more than 590 trading pairs on various CeFi and DeFi platforms. In challenging market conditions, our team demonstrated excellent strategy formulation and risk management, maintaining stability and efficiency in our operations. Our proprietary algorithms and trading strategies have been refined, leading to a steady increase in transaction efficiency and a notable reduction in market slippage for our clients.

As for the Asset Management and Dedicated Account Management sector, our scale remained at over 210 million USD, with dedicated account management exceeding 180 million USD. These figures not only prove our professional capabilities but also reflect the strong trust and support from our clients. Apart from that, this year, our active client count increased to over 87, and we successfully expanded into the Middle Eastern market. This signifies broader recognition of our services and performance, enhancing our market influence.

Achievements

In addition to the achievements previously mentioned, this year, our company meticulously evaluated over 70 diverse cryptocurrency projects, including public blockchains, DeFi, GameFi, NFTs, various Layer2 solutions, and crypto exchanges. We consistently shared our market insights and analyses of trending events through weekly updates, publishing dozens of project research reports, several macro-market studies, and industry development papers.

Moreover, we engaged with over 80 venture capitals, family offices, and Web3 funds, gaining deep insights into more than 30 institutions and establishing strategic partnerships with several of them. Throughout the year, we participated in multiple global conferences related to blockchain development, including Consensus 2023 in Austin, Token 2049 in Singapore, FinTech Week in Hong Kong, and KBW in Seoul, among others. During these events, we networked with several Web3 KOLs and communities, leading to potential collaborations, and also became partners with various Financial Advisors, media, incubators, and auditing firms.

Challenges and Adaptations

2023 was not without its challenges. The crypto market faced regulatory changes and economic turbulence. However, our agile response and proactive strategies ensured continuous service without compromising on quality. We adapted by enhancing our risk management protocols and diversifying our asset offerings, thus mitigating the impact of market fluctuations.

Despite market volatility, our company maintained a strong financial performance. Our revenues and our client assets under management reached new heights. We successfully maintained tight bid-ask spreads and high liquidity levels, reflecting our operational excellence and market confidence. Our Liquid Fund was profitable in nearly all investments with an average APR over 300%, boasting some potential annualized returns of over 2000%. Furthermore, our high-frequency trading strategy, in collaboration with multiple crypto exchanges, yielded an annualized return rate exceeding 4000%. This year we also invested significantly in technology and human resources. We expanded our team in almost every departments, bringing in experts from various fields, and upgraded our trading systems to handle increased volume and complexity.

Market Analysis

The year 2023 witnessed significant technological advancements and an increase in institutional interest in cryptocurrencies. Regulatory landscapes began shifting globally, and we stayed ahead by actively engaging with policy-makers and compliance experts. In this case, in addition to our expansive business achievements and innovative strides in the cryptocurrency domain, this year we achieved a significant regulatory milestone by securing compliance licenses in Hong Kong. At the same time, we proudly established a compliant crypto fund in Hong Kong, launching with an inaugural scale of $10 million.

This pivotal development not only solidifies our position as an official market maker but also enables us to legally and compliantly manage assets. The attainment of these licenses demonstrates our unwavering commitment to transparency, integrity, and excellence, ensuring we operate at the highest standards of regulatory compliance. This achievement is not just a reflection of our adherence to stringent regulatory frameworks but also enhances our credibility and trustworthiness in the eyes of our clients and partners, setting a new benchmark for excellence in our operations.

As we look towards 2024, the crypto market is expected to continue evolving under the influence of tightening global regulatory frameworks, which will shape market access and activities, potentially increasing institutional interest and investment as regulations clarify. Mainstream adoption should grow, spurred by advancements in crypto services and financial products, along with ongoing developments in blockchain scalability and security enhancements. The market is anticipated to mature with more robust infrastructure, leading to greater stability and adoption. Furthermore, investment strategies are likely to become more nuanced, with crypto becoming a standard part of diversified portfolios and distinctions being made between long-term value holdings versus short-term speculative assets.

However, significant volatility is expected to persist, driven by the market’s sensitivity to regulatory shifts, macroeconomic factors, and technological changes. Companies and investors will likely focus on resilience strategies to navigate this volatility, including better risk management and hedging strategies. There will also be an emphasis on industry collaboration and global expansion, as partnerships between traditional financial institutions and crypto firms bring about innovative products and broader market access. Additionally, the industry will continue to address sustainability concerns, moving towards more energy-efficient consensus mechanisms and practices, reflecting the growing public and regulatory emphasis on green crypto initiatives. Actually, the market-making space has become increasingly competitive. However, our innovative approach and commitment to transparency have set us apart. As a professional market maker, staying adaptive and responsive to these trends will be essential for navigating the dynamic 2024 crypto market.

Conclusion

As we move into 2024, we are excited to implement new strategies that include expanding into emerging markets, developing more partnerships, and integrating next-generation technologies such as AI and machine learning to further enhance our trading algorithms.

Our clients remain at the heart of our operations. We are committed to providing them with the highest quality service, transparent communication, and innovative solutions to meet their evolving needs. Our client-first approach will continue to drive every decision we make.

As we conclude 2023, we reflect on a year of robust growth, significant achievements, and valuable lessons. We are incredibly grateful to our clients, partners, and dedicated team who have been integral to our success. Looking forward, we are excited about the opportunities 2024 holds and are committed to continuing our mission of driving the market forward through excellence and innovation. Here’s to another year of success, growth, and partnership. Thank you for being part of our journey.

About ZMQ

ZMQ is a Leading Global Quantitative Market Maker and liquidity provider in Digital Assets. Since jumping into the crypto market in 2018, ZMQ has been focusing on providing liquidity globally for token projects and exchanges, institutional crypto investments and consulting services to bring better price discovery, trading executions, transparency to investors and efficient pricing to the market.

If you have any new ideas about crypto market making and liquidity service, please reach out to us at biz@zmquant.com!

Website: www.zmquant.com

Twitter: @zmquant_com

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LIZZIE LU
ZMQuant

Crypto Market Making | Hedge Fund | Investment | Advisory | Marketing | Web3/NFT/Game/DeFi / Layer1,2