OKEx shared insights on trading, regulation, DeFi and more during recent Markets Pro AMA
The AMA was intended to draw attention to the company’s recent progress and upcoming developments. The company has had a busy year in 2018, fighting for regulatory approval of its new trading platform and unveiling decentralized finance (DeFi) solutions at Consensus 2019.
Register now on Binance, add 50$ and get 100$ bonus voucher!
The “defi crypto stock” was a question that the OKEx team answered during their recent Markets Pro AMA. The answer covered topics such as trading, regulation, and DeFi.
OKEx is a controlled cryptocurrency exchange situated in Seychelles that was founded in 2017. OKEx is the world’s third-largest cryptocurrency brokerage, according to CoinGecko, with approximately $12 billion in trading activity in the last 24 hours. There are 312 currencies and 518 cryptocurrency trading pairs on the exchange.
For novice cryptocurrency aficionados, navigating the intricate world of trading and finance may be daunting. By creating a simple user interface, OKEx hopes to make such advanced trading strategies accessible to common people. OKEx personnel addressed trading tools, financial regulation, the OKExChain (OEC) blockchain, meme currencies, and DeFi products on the OKEx platform during an exclusive ask me anything, or AMA, session with Cointelegraph Markets Pro Users.
Pro User of Cointelegraph Markets: With no coding skills, how can someone gain from bots / API [Application Programming Interface] trading? Does OKEx have any completely integrated partnerships?
OKEx Staff: TLDR [Too Long, Didn’t Read], you don’t need any coding skills to use the trading bot on OKEx to automate transactions. The trading bot is incorporated into the OKEx trading interface, making it very simple to set up. By selecting the AI option and entering the order amount in USDT, you may go completely automated. Alternatively, you may manually specify your settings, including the asset’s upper and lower price limits.
As a result, the bot is simply a pre-programmed auto-trading tool. Trading bots may help you optimize your profit potential, particularly when the market is range-traded. So, with a trading bot like the one we have on OKEx, it will be more profitable if the market you choose goes up (selling), then down (buying), then up, down, up, down, up, down, up, down, up, up, up, up, up, up, up, up, up, up, up, up, up, up, up, up, up, up, up, up, up, up, up, up, up, up, up, up, up, On OKEx, the trading bot supports all spot trading pairings, so you may buy and sell ETH in and out of BTC, for example. A video instruction on trading bots will be available shortly! The written instruction will most likely be available next week, but in the meanwhile, here it is. And this is how it appears in the UI [User Interface]. To implement such a sophisticated and automated method, you don’t need any API or code skills.
Trading interface for OKEx | Source: OKEx
Profit and loss from trading bots | Source: OKEx
Register now on Binance, add 50$ and get 100$ bonus voucher!
CT Markets Pro User: How do you believe the crypto ban in India would affect the cryptocurrency market?
Staff at OKEx: Instead of outlawing cryptocurrency, I believe India’s regulators would prefer to have a more thorough framework for regulating it. When crypto is authorized and controlled, history has shown that it can be much more powerful. The prohibition on imports from India is unlikely to have a significant influence on the market. Over the last several years, crypto has shown to be fairly robust to such news events.
Using CT Markets as a Pro User: The beta [volatility] of cryptocurrencies is rather high. Do you price crypto derivatives using the same financial model (i.e. Black Scholes) as stocks?
Staff at OKEx: The Black Scholes model is used to calculate mark price in our option market (fair value of the specific contract). We also use a SPAN-like scenario stress-tester (like CME) to compute the maximum loss of the client’s portfolio for risk management.
Using CT Markets as a Pro User: What’s going on with the OKExChain? I heard something about it lately.
Staff at OKEx: The rumors are correct! [The supply chain] OEC is the name of the mainnet, which was introduced this summer. OEC is an EVM [Ethereum Virtual Machine] compliant public blockchain that employs the Cosmos/Tendermint architecture. For many years, OKEx has been discreetly improving OEC to make it as stable as possible and to answer the blockchain trilemma. Rather than being a clone of Ethereum, it is being created from the bottom up. You may read this for more in-depth information about OEC, but it is not light reading.
Using CT Markets as a Pro User: What is the OKEx DeFi Hub, and how does it work? What are the latest goods and services available, as well as the finest staking opportunities?
Staff at OKEx: On OKEx, there’s a new mode called DeFi. On okex.com or in the app, you may choose between “Exchange” and “DeFi” mode. OKEx acts as a link between the CeFi and DeFi worlds, bringing DeFi to you via a single interface. To begin, you do not need an OKEx account to utilize the DeFi mode. You can monitor wallets and view all of your DeFi assets in one location after connecting your Web 3.0 wallet. DeFi mode (which arrived this autumn) comprises of our own NFT Marketplace, GameFi center, and Dashboard, where you can access all of your decentralized assets, including your NFTs. But there’ll be more soon! OKEx offers a custom Web 3.0 wallet that can be accessed by a browser extension (Chrome or Firefox) or directly in the OKEx app. Staking, savings, and yield-farming options are currently only accessible on OKEx Earn, through our centralized platform, and that’s all I have to say for the time being:)
Using CT Markets as a Pro User: I’d want to hear your thoughts on multibillion-dollar meme currencies and whether they’re a realistic source of crypto inflow or ticking time bombs waiting to disrupt the market if and when they explode. Is there really place for these currencies in a logical crypto market?
Staff at OKEx: That’s an excellent question! Yes, because of their accessibility, meme currencies are serving as a doorway for non-native crypto investors and traders. These currencies have the potential to fall drastically in the future, but I wouldn’t go so far as to claim they can disrupt the market right now. The fact that these currencies are speculative is well known, and they don’t take themselves too seriously means that investors are aware of the dangers. Furthermore, the most popular meme currencies, such as DOGE and SHIB, have already established themselves. On our podcast, we really made an episode on meme coins. For the whole debate, click here.
CT Markets Pro User: Can you tell me how OKEx works with the play-to-earn games?
Staff at OKEx: The GameFi hub on okex.com is now a play-to-earn game aggregator. As a result, you can discover all of the most recent and popular blockchain games there. We have games on over 20 different blockchain networks, including games designed solely on OEC, and you can simply filter by blockchain network (the public blockchain developed by OKEx, which I explained above). Each game featured on OKEx GameFi has its own page with information on the game, the in-game asset(s) pricing history, and other important details. We also offer a direct link to the game’s website so you can go play it — most play-to-earn games are browser-based. This is a fun space-themed game based on OEC.
Using CT Markets as a Pro User: What would you say about Okex in comparison to, example, Coinbase? In a world when there are so many exchange options, what makes OKEX stand out?
Staff at OKEx: OKEx is a sophisticated trading platform that provides a wide range of derivatives (options, futures, and perp swaps), trading bots, margin trading, and a large number of tokens. In addition, we just released a DeFi mode featuring decentralized products like NFTs and crypto games, as well as a user-friendly dashboard to manage all of your DeFi assets. Our services, which range from extremely liquid trading markets to staking/farming choices, are designed to meet the needs of traders and investors at all levels.
Apart from DeFi mode, the trading bot described earlier and our new portfolio margin mode are two instances of how we continue to improve services and tools for crypto market players. OKEx is the first platform to provide genuine portfolio margin with multi-currency collateral risk offset, which is a tremendous benefit for professional traders who trade large portfolios, particularly options and other crypto derivatives, as it allows them to significantly lower margin needs.
Using CT Markets as a Pro User: What do you think the whole crypto market capitalization will be in a year, five years? What market sector is now undervalued? Identity? Meta? Layer1?
It’s difficult to provide precise figures, but the charts seem to be trending upward and to the right! Market players, on the other hand, should keep an eye on monetary policy adjustments in the next year. Web 3.0/digital identity/metaverse initiatives, in my opinion, are underestimated in comparison to where they (or at least some of them) will be in a few years. On last week’s edition of our podcast, we spoke a lot about this with some wonderful guests.
Disclaimer: The following market projections were produced before the Nov. 26 beginning of news of a novel coronavirus strain that had a detrimental influence on global financial markets. They may or may not be relevant in today’s market, and they should not be construed as investment advice.
Using CT Markets as a Pro User: Do you believe [Bitcoin price] $69K was the high point? Is there any potential of another alternate season in the next several months?
Staff at OKEx: Whether $69k is the peak or not depends on time periods, in my view. On-chain indicators such as exchange flows and balances suggest that the previous all-time high ($69K) is unlikely to be the cycle’s peak. Despite the fact that most indicators are optimistic, BTC is unlikely to continue straight up. This is due to the industry’s maturation as well as the rising variety of market players. Mature in the sense that the market makeup has changed from 2013 to 2017 and 2021. There are a lot more “serious” investors and institutional engagement, as well as futures from CME and ETFs [Exchange Traded Funds].
A market’s size determines how quickly it changes and how unpredictable it is. However, the next few months, particularly Q1 2022, will be intriguing to watch, since this bullish cycle may prolong into the next year rather than terminating in December. If that occurs, we’ll almost certainly see another alternate season.
At the moment, I believe we are seeing the beginnings of a meme/metaverse season. Obviously, the news of Facebook going all-in on the metaverse sparked interest in that area, but the decentralized metaverse is seeing fresh money influx. In my opinion, the market cycles between sectors; for example, we are presently seeing metaverse surging, but other trailing categories might begin to catch up if BTC continues bullish/doesn’t fall too severely. In general, if the market seems to be robust, everything will climb sooner or later. We can observe that institutional money is consistently inflowing. On institutional flow, the equity balance is continuously expanding. However, it’s difficult to tell when it comes to purchasing Ethereum since they all trade various things and use different tactics.
For example, the BTC exchange net position change indicator is still not indicating that the present price, or the most recent ATH [All Time High], is a top like the one we witnessed in May.
Changes in Bitcoin’s net trading position | Source: OKEx