Original author: flowie, ChainCatcher
Expectations for spot Bitcoin ETFs are driving the market into a general rally. In addition to the rising prices of mainstream cryptocurrencies such as Bitcoin and Ethereum, there are also many new sectors such as BRC 20 that are becoming popular.
The more the market changes from bear to bull, the more it will be a big test for CEX. Whoever seizes user needs first can reap the dividends. Recently, the fuel token GAS of BRC 20 track leader ORDI, modular blockchain leader TIA, and public chain Neo has convinced people with its rising transaction volume. It can be said that it is one of the most popular currencies in the market. According to data from Coingekco, these popular coins are basically dominated by Binance, OKX, and Bitget, which occupy the top three market shares.
Compared to Binance and OKX, Bitget’s performance in this round of popular currency bonuses is indeed somewhat unexpected. In addition, according to the 2023 CEX Market Report recently released by 0x Scope, Bitgets current comprehensive market share has jumped to fourth place, and it is also one of the centralized exchanges with rapid spot growth.
In each critical period of transition from bear to bull, the centralized exchange landscape will be reshuffled. As an exchange that started out as a contract, why did Bitget break through in less than a year and become a new dark horse in the spot market? How can we quickly understand user needs and seize the dividends of the most popular currencies? Recently, we interviewed Bitget Research Institute and tried to reveal the mental approach behind its currency listing.
The new dark horse in the CEX spot market
Recently, the Web3 knowledge graph protocol 0x Scope released the 2023 CEX market report, assessing the significant changes in the market share of various centralized exchanges (CEX) in the past year.
0x Scope mentioned that one of the emerging trends in the CEX landscape in the past year is that spot competition has become more intense. In terms of spot trading, although Binance still occupies a dominant position, its dominant market share is loosening. In addition to facing challenges from traditional competitors such as OKX and Coinbase, more importantly, there are also players such as Bitget and MEXC. Raid. In particular, exchanges represented by Bitget are taking away part of the trading volume through their active currency listing strategies. Bitgets current comprehensive market share has jumped to fourth place, and it is one of the centralized exchanges with rapid spot growth.
Judging from Bitget’s recent currency listing performance, on the one hand, Bitget has captured some of the most popular concept coins, allowing users to quickly reap early dividends. For example, on the recently popular BRC 20 track leader ORDI and modular blockchain leader TIA, Bitgets spot market performance is second only to Binance and OKX, and its spot transaction volume ranks third. For example, on November 16, the ORDI network’s spot trading volume reached 440 million, of which Binance’s spot trading market ranked first with 160 million; OKX Ranked third.
On the other hand, it also accurately grasps the timing of the listing of some old currencies that may be revived for the second time, bringing unexpected wealth codes to users. For example, the public chain Neo fuel token GAS, which was launched earlier than other CEXs, started a 10-fold increase in two weeks after Bitget was launched on October 25, creating a wealth effect.
The persistence behind creating wealth effect
After going through this big test of the general market rise, Bitget is called a fusion of Binance + MEXC by users in the crypto community, that is, carefully selected like Binance, extremely fast like MEXC, high quality and efficient.
Why can you balance quality and efficiency? What exactly is Bitget’s currency listing philosophy?Bitget Research Institute revealed three determinations in the interview: value-driven, efficiency-oriented, and comprehensive radiation.
The so-called value-driven means that the currency on the market should make users earn money as much as possible. Therefore, the currency is either expected to rise in the short term, or it will rise steadily in the medium and long term due to high-quality fundamentals. For example, the recent popular currencies ORDI, TIA, and GAS have all continued to rise after Bitget was launched, allowing users to earn very large profits.
Efficiency comes first, which means being online as soon as possible. For early popular currencies, Bitget basically served as the first or second CEX to quickly go online. For example, the Bot track asset UNIBOT was launched by Bitget as early as July, providing users with valuable opportunities to build positions. For currencies that have been reissued due to major benefits, Bitget will choose the most suitable time to go online to allow users to earn income. For example, Bitget will go online immediately after there is a change in GAS, allowing users on Bitget to earn money within two weeks. Take 10 times the profit.
Comprehensive radiation refers to allowing users to achieve one-stop shopping for popular assets as much as possible. Whether it is the most popular ORDI, TIA, or GAS on the market, or the relatively niche fan tokens SPURS, GROK in the Meme section, or UNIBOT in the BOT track, you can buy and sell them in one stop on Bitget to meet the needs of different users. need. In addition, the Bitget site also supports the SWAP function, which includes almost all token transactions with trading pools on the chain, and very niche assets can be purchased.
It is not easy to ensure that multiple aspects such as wealth effect and efficiency are taken into consideration. Why can Bitget capture market trends in a timely manner? What is the research mechanism behind it?
Bitget Research Institute revealed that its currency listing evaluation has clear quantitative standards, but it is different from many other CEXs.Bitget does not mainly rely on business and channel project recommendations, but is driven by top-down research and often proactively mines high-quality assets.
On the one hand, the Bitget research team has built an automated on-chain data monitoring system so that changes in assets on the chain can be grasped immediately. On the other hand, Bitget continues to research and plan in advance for each track to ensure that it does not miss any popular assets as much as possible.
Driven by such research, Bitget’s currency listing will focus on the following five dimensions:
1. Industry trends and market hot spots
Bitget believes that projects that are in line with industry development trends will become the darling of the market, so there is a high probability that such projects will become market hot spots. The basis for judging whether a project conforms to the industry development trend is:
1) Whether it can effectively solve the native problems of the blockchain, for example: ARB and OP are trying to solve the expansion problem of the Ethereum main chain;
2) Whether it effectively solves user transaction needs, for example: Unibot helps users trade assets on the chain more simply and efficiently; 3) Whether it has enough market attention, for example: although PEPE is a Meme currency, the community consensus and attention are strong enough .
Based on this premise, Bitget discovered Arbitrum-related market opportunities at the beginning of this year. At that time, the TVL of the Arbitrum ecosystem continued to grow, the rapid construction of DeFi projects in the ecosystem, and the high market expectations of ARB’s upcoming currency issuance and airdrop. Therefore, Bitget launched the Arbitrum Ecological Activity Week in early February this year, and promptly launched a large number of Arbitrum ecological popular assets, which triggered a very considerable wealth effect, making Bitget the main position of Arbitrum ecological tokens.
On the contrary, Bitget will be more cautious about hot spots that are too short-term. For example, when South Koreas normal temperature and pressure superconductor LK-99 became a hot topic on social media, a meme coin named LK 99 appeared on the chain. Bitget considered the consensus of this hot spot in the cryptocurrency world, the popularity on the chain, It was decided not to go online due to various factors such as risk, and the results also proved that the final currency called LK 99 was almost zero.
2. Community consensus
Those who win the consensus of the community win the world
When Bitget evaluates a projects social media popularity, it does not directly look at the number of reads of Twitter tweets or the number of people in the Telegram community. These are very easy to fake at low costs, so they have almost no reference value.
To this end, Bitget has established its own smart money address database and Twitter KOL database, and also crawls hot search terms in the cryptocurrency field on Google Trends every day as an aid. Through these comprehensive judgments, it can determine whether a project is really being discussed and favored. The traffic quality of the projects official website (number of unique visitors, duration of visits, number of pages visited, bounce rate) will also be taken into consideration.
In addition, the authenticity of the data on the chain will also be verified.For example, some newly emerged meme coins show a 24-hour on-chain transaction volume of $10M, but after inspection, it is found that more than $7M of its transaction volume is MEV transaction volume, then its real trading activity cannot be seen. Stand up so high. For another example, some projects that have not yet TGE seem to have a lot of potential currency holding addresses, but in fact most of the addresses can only obtain a very small amount of Tokens (less than 10 U). At this time, Bitget will choose to set a threshold to examine the valid addresses. number.
Bitget believes that the technological innovation of the project must meet real market needs, and it is best to be closely tied to other ecosystems to promote each other. In terms of technological innovation, Bitget mentioned two cases of decisive launch:
One is the Telegram Bot track token. Bitget is the first CEX on the entire network to list the Telegram Bot track token. Bitget has captured that many users in the meme season have poor efficiency and convenience in trading Meme coins, so the market needs simpler tools to support users high-level on-chain transaction needs. The emergence of Telegram Bot not only has real market demand, but is also closely tied to the Meme ecosystem. Therefore, Bitget believes that this is an innovation with room for growth.
However, at that time, due to its own mechanism, UNIBOTs token contract had potential risks (trading could be suspended, transaction taxes could be changed, etc.), so as the first launch of UNIBOT on CEX, it had to bear great risks. However, after Bitget conducted an in-depth analysis, they believed that Unibots single-day profit at that time could reach $100,000 and the revenue was constantly expanding (later even reaching $600,000 in a single day). Direct soft rug was far less profitable than continuous operation, and it was subjective to run away. The risk is very low. As a result, Bitget still firmly listed UNIBOT as the first CEX, and the results proved that UNIBOT also brought amazing returns to investors.
The second is Ordinals’ BRC 20 token, and Bitget is also one of the first CEXs to list this series of tokens. Bitget judged at the time that the innovation of BRC 20 was not just about “conveniently issuing coins” on Bitcoin, but also bringing life to the dormant BTC ecosystem. Such innovation activates transfers and transactions on the BTC chain, which is in line with the interests of miners and is destined to be supported by the miner group with huge amounts of funds.
In addition, Ordinals innovation also allows cryptocurrency investors to see the huge possibilities of the BTC ecosystem, and huge expectations are exactly what is needed most in the silent market. As a result, Bitget immediately launched multiple popular BRC-20 assets.
4. Token economy
Bitget believes that token economy is the most direct factor affecting the performance of a token. Poor token economic design will make a coin peak at its debut, but the currency price trend will become increasingly weak.
Bitget will not dogmatically judge by the absolute size of the initial circulation market value, but will evaluate the rationality of its pricing based on the projects status in the track ecosystem. When the market value of an asset is significantly lower than its ecological position, product quality, and market expectations, the token is more likely to rise. The distribution model and release speed of tokens also largely determine the selling pressure and currency price trends that tokens will endure in the future.
also,Bitget will focus on evaluating whether the token distribution model is reasonable. In Bitgets view, token distribution is more oriented towards the community rather than overly centralized projects, which will have better vitality.For example, Bitget launched AIDOGE for the first time, and distributed 95% of the token distribution to addresses that had previously received ARB airdrops, which resulted in a very strong community consensus and huge traffic from the beginning, thus creating a huge market share in the token distribution. The early days of meme season produced staggering gains.
On the contrary, there are tricks in the token distribution of the SIMPSON series of tokens that seem to be very popular on the chain during the meme season. After the Simpson token creator deployed about 1/3 of the initial tokens to the Uniswap liquidity pool, he distributed 2% of the total tokens to each of 20 addresses to hide the fact that a single entity controlled more than 40% of the chips. . CoinTool was used four times to distribute a very small amount of tokens to 800 addresses, creating the illusion that there were many currency-holding addresses and the project was very popular. The final result was that 20 of the bookmakers’ addresses concentrated on shipping and cashing out on May 13. Bitget blocks this type of assets from the exchange through systematic token economics and on-chain data analysis.
Bitget believes that security is the foundation of a token. No matter how gorgeous the foundation is, the building will collapse. No matter how good the currency is, if there are big security risks, it will be reduced to zero. To this end, Bitget has established an audit system for the security of tokens:
In terms of token contract security,Bitget has a dedicated internal contract security assessment team, which presents the various risks of the token one by one and then provides researchers with further judgment. Many early meme assets often have some contract risks at the beginning, but it is also common to give up contract rights later.
In terms of on-chain liquidity pool security,Bitget will check whether LP has been locked, how many shares have been locked, for how long, or whether it has been burned. If most of the tokens in the pool can be withdrawn at any time, the currency price will bear the risk of a short-term plunge, and Bitget will be very cautious about such projects.
In terms of chip concentration,Bitget will check whether the token chips are concentrated in a small number of EOA addresses (there is a greater risk of bankers smashing the market), and whether there is a situation like the SIMPSON series token distribution trick mentioned above that hides giant bankers after the project is created. .
Where the project has negative history or potential risks,Bitget will carefully review the project itself, the project team, etc. for compliance risks, serious moral risks, etc. For example, PulseChain was very popular at the time, but during due diligence it was discovered that it had a dispute with the SEC, and Bitget would refuse to cooperate with such projects.
In the critical period of bullish transition, Bitget has achieved phased results by taking into account high quality, efficiency and comprehensive currency listing concepts, coupled with top-down research-driven efforts, and has become a dark horse player in the CEX spot market. As the market continues to improve, it remains to be seen whether Bitget can continue and iterate its currency listing advantages and gain wider recognition from the market.