ZMQ 4th Anniversary-Yearly Review(2018–2022)

LIZZIE LU
ZMQuant
Published in
5 min readMay 19, 2022

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1/ Jumped into the crypto Space

2018 is a memorable year in the crypto history. After an unprecedented boom in 2017, a lot of entrepreneurs recognized the great potential of crypto, there were a ton of new startups that were leveraging blockchain technology, and then came 80% bitcoin crashing down in 2018.

the Biggest Bitcoin Crashes in History

As an algorithmic trading firm, ZMQ team tried to take several common strategies for algorithmic stock trading and tests them on the cryptocurrency market in late 2017, some strategies were proved to be very profitable.

ZMQ team officially jumped into the crypto space on May 18th 2018, on the heels of an unprecedented boom-bust cycle for bitcoin. and have made some great achievements during the past four years.

2/ The following is the key numbers we’ve made from 2018 to 2022:

the key numbers of ZMQ’s achievements during the past four years

2018

Exchanges:2

Tokens:15

Trading Pairs:35

AUM:2.3M

Country:2

2019

Exchanges:11

Tokens:68

Trading Pairs:286

AUM:15.6M

Countries:3

2020

Exchanges:32

Tokens:173

Trading Pairs:635

AUM:67.3M

Countries:5

2021

Exchanges:51

Tokens:228

Trading Pairs:1361

AUM:101.6M

Countries:12

2022

Exchanges:57

Tokens:297

Trading Pairs:1638

AUM:121.9M

Countries:15

3/ Foreseeing the rules of chaos

Covid19, a disaster unseen in the past decades hit our globe at the proposed end of Fed Reserve’s QE4 and this unexpected pandemic strongly hurt all aspects of the global economy since 2020 to now. In particular, the real manufacturing and service sectors suffered the most from the endless shutdowns. Governments, especially those of the developed economies paused their quit plans of QE and switched soon to various stimulative policies, which often has a favor to the virtual economy.

Lots of risky assets have been pushed to their historical peaks with the help of such political circumstance, including the crypto coins of course. One of the most stunning stories is the dramatic rise of BTC price from $3000 to almost $70000. In the meantime, the prices of food, energy and raw industrial materials such as nonferrous metals also broke their former barriers. Moreover, the concern of the overpricing of US stock market is always the sword of Damocles at the top of those big institutions. Crypto assets, as an exotic tool for the diversification of style and risk, has become a serious choice for financial big names. In the past two years, the crypto market opened its arms to the entrance of unacquainted but traditional institutions as well as their flooding funds, causing unrecorded prosperity, investors’ passion and social attention.

Aggressive simulations, unfortunately, did not cured the tension of the global supply chains which is more a problem about our society than a problem about just money supply. The Ukrainian crisis and NATO’s expansion projected war shadows to the whole Europe. Foods and raw materials are more and more unaffordable for residents, producers and public welfares even in developed countries. Forced by these pressures, governments (especially in the west) have to choose full-open-strategy on a basis of high vaccination rate, which is expected to save economy and the third-industry GDP in particular.

At the same time of reopening, deflation policies are forced to be taken in major economies and are commonly expected to last for a not-too-short while. The US mid-term election in 2022 put tremendous objection to inflation on the desk of US government, which may bias slightly to the common livelihood than the big capitals’ interest. Plus the rise of interest rates, emerging tax sources are wanted to maintain the fiscal balance and social welfares. A likely consequence is including crypto market into the framework of formal supervision and taxing. This point was more like an expectation in the past but now it may be implemented in a more serious level and to a broader extent. If coming true, this change would deeply impact the current business foundation of crypto market and constitutes an exterior risk in the mid run. In a short future, few crypto assets may avoid significant drawbacks, which threatens the financial products, investment strategies and services built on the bull expectation or investors’ enthusiasm.

Every coin has two sides. Crypto assets will not forfeit their own values of existence if they keep their intrinsic differences from traditional assets, and if they do not constitute any threat to the monetary sovereignty of major global powers. There of course is a lot of deflation emotions or activities facing high uncertainty. However, there is also a lot of western institutions, high-net-value individuals and other not-fully-revealed funds that keep investing in crypto assets due to speculation, evasion and/or gambling.

In addition, if one turns his or her eyes to the second-world countries, one may find the long lasting of middle income traps, lack of growth and difficulty of location in the global industrial chain. They lie in the ground of Ukrainian crisis, NATO’s reactivation and expansion, and the industrial upgrading of emerging economies that continue eating away at their market shares. In this case, the agent governments of those countries are likely to stand closer and release not only their securities but also their economic sovereignties to the core west countries for short-term speculation or security promises. According to the history, such choice of interest transfusion might intensify the situation of slow growth and large income gap in those countries, which would push high the speculative and anti-system emotions of the public. Without essential growth energy or clear expectation, virtual economy and/or business mode innovations that benefits crypto assets may have more chances. This could be another support for the crypto market in the mid run.

ZMQ 4th anniversary (2018–2022)

Chaos isn’t a pit. Chaos is a ladder, and the climb is all there is.

Happy 4th anniversary to all who are taking the amazing journey with us!

4/ Introducing ZMQ

A Leading Global Algorithmic Market Maker and liquidity provider in Digital Assets

ZMQ is the professional algorithmic trading firm registered in BVI, focus on providing liquidity globally for token projects and exchanges, institution-grand crypto investment and consulting service, to bring better price discovery, trade execution, and transparency to investors and efficient pricing to the marketplace.

Since jump into crypto space in 2018, ZMQ worked as designated market maker (DMM) for 50+ Exchanges and 200+ issued coins/tokens. Our HFT MM strategies and deployable bots power $1~3bn in daily volume for more than 1000 trading pairs, including spot and derivatives.

We integrate AI professional trading algorithms and simulate your market in the best way!

Website:www.zmquant.com

Email:biz@zmquant.com

Twitter:https://twitter.com/ZMQuant_com

LinkedIn:https://www.linkedin.com/company/zmquant/?viewAsMember=true

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LIZZIE LU
ZMQuant

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