Binance Reveals the Secret Behind Its Cryptocurrency Futures Success


Aaron Gong, vp of futures at main cryptocurrency change Binance, defined to Cointelegraph how the agency managed to develop into one of many high crypto futures buying and selling platforms.

As Cointelegraph reported earlier this week, Binance just lately overtook BitMEX and have become the second-largest platform by way of 24-hour Bitcoin (BTC) futures buying and selling quantity. When requested whether or not he’s shocked by such success, Gong stated that the agency created the product with the plan of changing into the highest Bitcoin futures buying and selling platform:

“We knew we’d be there quickly, and we made it in barely greater than 6 months’ time.”

The explanations for Binance’s futures success

In line with Gong, the three main causes behind the success of Binance’s futures merchandise are the low taker charges, new options and a considerable amount of altcoin pairs. He stated that too many exchanges supply damaging maker charges:

“Too many different exchanges supply damaging maker charges, the place most orders are simply computerized market makers competing for greatest bid and ask with extraordinarily restricted taker curiosity in periods of low-volatility.”

Gong additionally stated that innovation additionally drives buying and selling volumes relating to Binance’s futures. He claimed that the change has had a number of firsts relating to the crypto futures market:

“We’re the primary main crypto change to launch max 125X leverage for BTC contracts, and the primary of its type to launch cross collateral and sensible liquidation mechanism. These options have gained super recognition amongst our customers.”

The third purpose for the success of Binance’s futures contracts, Gong defined, is the variety of altcoin contracts. He stated that the agency launched 24 futures contracts on the platform, including:

“As of right now, Binance Futures homes half of the highest 10 most liquid altcoin contracts, lots of that are additionally probably the most traded pairs amongst all futures exchanges.”

Binance’s key to future success

Gong’s technique to drive the amount of futures contracts on Binance is to proceed bringing extra functionalities and merchandise to the {industry}. He stated that he believes Binance has outdone its rivals, as different crypto buying and selling platforms suffered issues corresponding to overloads, poor danger administration, and counterintuitive product designs. He defined that Binance’s design was largely pushed by person’s complaints about different platforms:

“We particularly aimed to deal with these points and enhance the customers’ expertise. As such, we put super efforts to construct an industry-leading matching engine that is ready to course of greater than 100,000 orders per second. […] While there have been problems with system overloads, outages, glitches, and even rollbacks elsewhere, we’ve confirmed again and again to be a secure, dependable, low cost and liquid venue for hedging.”

It’s value noting that Binance’s buying and selling platform bumped into numerous points in February. On Feb. 19, the change halted buying and selling to resolve an surprising technical situation with its infrastructure.

As a Feb. 25 Cointelegraph evaluation illustrated, this incident befell after per week through which the platform was usually unresponsive to dealer enter because the change was unable to handle a big uptick in person quantity.

In early March, Binance halted buying and selling once more to repair a malfunction. The change’s co-founder and CEO Changpeng Zhao purportedly blocked Jay Hao — the CEO of competing change OKEx — on Twitter, after he publicly supplied to assist repair the infrastructure.

Nonetheless, Gong stated that the malfunctions didn’t have an effect on Binance’s futures buying and selling infrastructure and that futures merchants weren’t affected:

“Our futures system has been proving to be performing nicely throughout probably the most unstable interval since we launched. The futures market is operating on a separate matching engine.”

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