CoinEx’s Insights in Innovative Assets
Only investments in high-quality assets can bring high returns in the long run. Otherwise, if you have been searching value in shitcoins for long, you may gain nothing or negligible profits at best, or even suffer losses.
Investment is the process of cognitive realization
Investment is a process of cognitive realization. In financial markets such as stocks, securities, gold, foreign exchange, and cryptocurrencies, well-informed, skillful investors select high-quality objects from tens of millions of assets, and rely on the price growth of the secondary market of the investment object to gain considerable incomes.
Throughout the history of the investment industry, all the successful figures, such as John Berg, Peter Lynch, Buffett, and Graham, have keen financial insights, effective investigation capabilities, in-depth analysis abilities, mature investment skills, and brilliant business acumen.
Of course, 95% of ordinary investors in the financial market just take financial investment as a means to increase personal income rather than the only source of income. Investment objects with a lower threshold, more returns, and higher credibility are more appealing to them. This is also the main factor making the stock market one of the most popular investment areas.
According to the data, from 2015 to February 2020, China’s A-share investors have exceeded 160 million, and the figure has been rising steadily as of 2021. With the number of new investors exceeding one million for 8 consecutive months, the total number has gone beyond 180 million.
Even in the stock market with transparent supervision, mature development, and clear application scenarios, many investors still pay for their naiveness, and suffered heavy losses in incidents such as Luckin Coffee’s financial fraud, TAL Education Group’s bankruptcy, and LeTV’s delisting.
Compared with the mature stock market, the cryptocurrency market is younger. It has only been 11 years since the birth of Bitcoin. According to the third edition of the “Global Cryptocurrency Benchmarking Study” released by Cambridge University in 2020, despite its threefold rise from 2018 to 2020, the number of cryptocurrency users across the world merely totals 101 million today.
The cryptocurrency represents an emerging financial investment market. Factors such as unclear regulation, evildoing at a low cost, non-transparent market operation mechanisms, and frequent price manipulation have led to higher investment risks in cryptocurrencies than in other capital markets. According to incomplete statistics, there were more than 200 scams in 2020 alone, with losses of more than ten billion U.S. dollars as well as millions of victims.
The risky yet high-yielding cryptocurrency market will still draw in an endless stream of investors. Before it is under standardized development, how to reduce risks for investors and guarantee the security of their assets will remain one of the priorities for this industry in the coming years.
Exchanges should bear the responsibility of screening high-quality assets
Exchanges serve as the most important platform for discovering cryptocurrency prices, facilitating transactions, and providing liquidity. With the development of the cryptocurrency market, exchanges have gained the absolute say in the cryptocurrency industry due to their special role, and even the slightest move may cause an uproar in the industry. Therefore, boasting such influence, the exchange should be obliged to help users avoid risks and protect their assets from losses.
Exchanges have inherent advantages in project screening, let alone the first- and second-tier exchanges. First of all, they have reviewed thousands of projects during development, accumulating sufficient experience and capabilities; second, they have keener insights into the industry than ordinary investors; last but not the least, the exchanges are equipped with a project research team with a strong financial background and awareness.
From corporate responsibility, industry responsibility to user service, exchanges should be responsible for screening high-quality assets for users.
The benchmark for emerging first-tier exchanges
Among all the emerging first-tier exchanges, CoinEx has become the “first mover”. After a series of adjustments in product and market strategies, the CoinEx team realizes that the value of the exchange lies in the “transaction” itself.
Since its establishment in 2017, like most of its counterparts in the market, CoinEx once developed various investment functions and services such as futures, options, and yield farming. Through all these attempts, it accumulated millions of seed users.
With the prosperity of the cryptocurrency market, more and more exchanges have begun to introduce various investment and financial management functions in order to maximize profits from traffic, and have even cooperated with the project developers to recommend immature projects in the primary market to investors by such means as IEO, IDO, and IXO.
The CoinEx team holds that attractive as the short-term benefits may look, the ability to generate income without the industrial responsibility is far from enough to make an exchange one of the world-class or gain long-term vitality.
Since its establishment, CoinEx has always been committed to “becoming a world-class digital asset trading platform”. Since 2019, the company has gradually shifted its focus of development back to the “transaction”. In the past three years, CoinEx has launched a total of 195 cryptocurrencies, while valuing quality more than quantity.
No unqualified projects could be found from all the 195 cryptocurrencies listed on CoinEx.
“CoinEx can be considered the most rigorous exchange in terms of listing. Many exchanges take the “community” and “listing fees” as the criteria for token listing, but neither is in our consideration. We would rather ensure the security of investors’ assets than earn considerable listing fees. We hope to help users spot high-quality and innovative digital assets, so that everyone can invest and trade on the CoinEx platform without worries,” said the CoinEx listing research team in a media interview. It also revealed the factors CoinEx usually considers before listing a token: the degree of innovation, the developer’s strength, application scenarios, project concepts, economic models, and development potential.
When all the new first-tier exchanges are trying to grab market traffic and launch community-based projects, CoinEx has adhered to the business philosophy of “selecting high-quality innovative assets for users”, and gone through the bull and bear markets for the past three years.
The path towards the original intention is always accompanied by doubts and dissatisfaction. Community users have also advised the CoinEx team to launch community-based traffic projects to survive in the increasingly fierce market competition. Yet the company has always stuck to the motto of the platform, that is, “pave the way for innovation” and “never tout for low-quality projects”.
(1) Establish a project research team to spot innovative high-quality assets
CoinEx is the first among the new first-tier exchanges to set up a dedicated project research team, in order to improve project screening capabilities and spot every high-quality innovative project. CoinEx has invested more great minds in project screening, and established a professional project research team with a standardized screening process. Every day, CoinEx Institution digs potential high-quality projects from cryptocurrency community forums and media around the world, and conducts comprehensive investigations and researches on the projects searched or those applying for listing in respect of the project background, the degree of innovation, team background, technical strength, application scenarios, investment risks, etc. Based on the above information, CoinEx Institution will finally issue a detailed project research report after field investigation.
In the end, the listing committee will make a decision on whether to list the project according to this report and market trends.
Through professional research and multiple review mechanisms, CoinEx minimizes investment risks for users, and at the same time provides a platform to discover the value of innovative and high-quality projects and to achieve common growth with these projects.
(2) Assist users in value investment and increase investment income
“Innovation and quality” are indeed important criteria for CoinEx in project selection. Yet, it is the bottom line of an exchange to ensure the security of users’ transactions. More importantly, the exchange should help users seize the market trend and thus increase investment returns.
In mid-2020, DeFi was struggling at the center of the market storm. The entire crypto community was trying to take a share of the DeFi boom, and CoinEx Institution also focused on searching for high-quality and innovative DeFi projects. At that time, a project named Yearn.finance entered its vision. It was a Dapp deployed on the Ethereum blockchain. Amid the trend of yield farming, YFI took the lead in innovatively integrating the loan market with yield farming. At the same time, it upgraded the prevailing mechanism of yield farming, and initiated a fairer mining mechanism with no private placement or pre-mining.
In addition, YFI’s circulation is extremely low. After analyzing the project’s technical background, team, economic model, and mining logic, CoinEx Institution believes that YFI is extremely innovative and potential, so it gave this project a relatively high score. Finally, YFI passed the review of the listing committee and launched on CoinEx on July 24, 2020, at a price of US$1367.
As expected, YFI has been sought after by the market due to its unique and innovative yield farming mechanism. Two months after its listing at CoinEx, its price soared to 44,721 US dollars. So far, YFI’s price in the secondary market remains around US$30,000.
The skyrocketing price of YFI has brought considerable returns to its investors in CoinEx. Following YFI, CoinEx has listed dozens of projects such as INJ, SOL, OCEAN, LUNA, GRT, and COVER. 90% of these projects have later been launched on other first-tier exchanges like Binance and Huobi.
It is not CoinEx’s role to define what is quality and innovative but to find it and leave it to the market.
Be a gathering place of innovative digital assets
In the past few years, CoinEx has become the benchmark for new first-tier exchanges with its strong project screening capabilities. Prominence in the industry does not mean the exchange could sit back and relax. Only by ultimate perfection can it make breakthroughs and move forward. In 2021, the CoinEx team will “gather innovative digital assets” as its strategic development focus when conducting new market plans, and will search for high-quality innovative projects as always.
As a global and professional cryptocurrency exchange service provider, CoinEx was founded in December 2017 with Bitmain-led investment. It is a subsidiary brand of the ViaBTC Group, which owns the fifth largest BTC mining pool, which is also the largest of BCH mining, in the world.
CoinEx supports perpetual contract, spot, margin trading, and other derivatives trading, and its service reaches global users in nearly 100 countries/regions with various languages available, such as Chinese, English, Korean and Russian.