I am Jeff Young, thanks for having me today, I am very pleased to be here and it is an honor to have this fantastic opportunity to talk about our platform BitWell, inform you who we are and what we are doing.
Q1:Could you please explain to us, BitWell is what kind of platform and its initial objective. Why Mr Jeff joined and took the position as CEO of BitWell?
I’m Jeff, CEO of BitWell, I am happy to be here to share with you guys, so let me introduce myself first. As one of the early members of Binance Exchange, I set up Block Vision Capital when I left, Block Vision Capital is dedicated to investing in blockchain projects, helping more outstanding early-stage projects. Previously, I was in charge of the product and operation team in Sina Finance, which had grown from a DAU of 80 thousand to over 3 million at that time. After that, I worked at Tencent’s Strategic Product Center,and was in charge of product serving for 100 million users. We had 100 million DAU and 300 million MAU at that time. Later, as an investor, I was invited by BitWell and joined it as CEO.
Generally speaking, BitWell is a digital asset derivatives service platform, officially launched in August 2020, 4 months so far.
We have a decentralized team made of multinational elites from different countries and regions such as Europe, America and Asia Pacific. The core team members come from world-renowned financial and technology companies such as Morgan Stanley, IBM, Paypal, etc., and from leading Internet companies such as Tencent, Baidu, and Sina in the Asia Pacific region. Many of the core members have cross working backgrounds, they worked on Wall Street in the financial trading field, and have rich practical experience in blockchain asset trading.
Regarding the industry development, the digital asset derivatives area is in a period of rapid and vigorous growth. At present, although the derivatives market is growing, it is still dominated by futures trading, and the existing futures trading has exposed many problems, such as liquidation, which no longer meet the investment needs.
Additionally, in traditional financial markets, option is a very important derivative, with trading volumes about 10 times of others. In digital assets, the annual trading volume of
options market is currently too small compared to spot market, and the potential growth of the digital currency options market is huge when compared to the traditional market.
In the current options market, although there are some platforms that have launched options, overall, it is still blank and competition is not strong. It can be predicted that options will play a key role in the future. That’s why BitWell chose derivatives and sought breakthroughs by options.
Q2:What are the features of BitWell as a crypto derivatives trading platform?
What achievements have your team achieved in the past few months?
Over the past three months, www.bitwellex.com has made tangible achievements:
We approached the market with options, aiming to make such a risk hedging tool accessible and usable to a wider range of ordinary users. Our team has developed the Simple Options product from a lower entry barrier perspective, allowing users to participate in market hotspots with easy access to options products. So far, it is still the most accessible options product in the industry.
In the first half of the year, the whole market was ignited by the popularity of DeFi, but projects are too complicated and the entry barrier is too high for users. In order to allow more users to participate in DeFi, we responded positively to the community and launched the first DeFi options. This was followed by the launch of innovative options such as FIL and DOT. Several of our options have hit hundreds of times higher than original price, generating wild interests and discussions among the community.
When the market was keen on DeFi yield farming, we innovatively announced the platform token WELL and combined it with liquidity mining to allow users to grow with the platform through trading and depositing. At the same time we innovated the economic model of dual-track burn and extreme deflation. The blast burn mechanism was recognized and praised by the community users.
We are also working systematically with more projects, such as Bella, which will soon be listed for spot trading.
Meanwhile, in order to better disseminate knowledge about derivatives, we established BitWell University and started to share options-related contents on a continuous basis. Currently, short video tutorials on options have also been launched and have received positive feedback from users. In the future, BitWell University will continue to produce higher quality and comprehensive contents.
Also, we have built up our community. Users are enthusiastically using our products and are eager to make their own suggestions in the community, providing many constructive comments and suggestions for the development of BitWell.
Q3：As known to all, futures are popular in the market, Then why do you not list futures and more focus on options trading?
In simple terms:
Spot market: Cash on delivery.
Futures: a deposit first, then cash on delivery later, neither party can cancel the transaction in the future.
Options: Make a deposit first, then cash on delivery later, however, one of the parties (the holder) has the right to cancel the transaction and the deposit is not refundable.
The digital asset derivatives industry is in a period of rapid and vigorous development. At present, the derivatives market is growing, but it is still dominated by futures trading, and the existing futures trading has exposed many problems, which can no longer meet the investment needs.
In addition, in traditional financial markets, options are a very important derivative, with trading volume about 10 times that of the others. In the digital asset space, the annual trading volume of the options market is currently too small compared to the size of the spot market, and the potential growth of the digital currency options market is huge when compared to the traditional market.
In the current options market, although there are some platforms that have launched options, overall, competition in this area is not strong. It can be expected that in the future, options will play an important role in the exchange circuit. That’s why BitWell choose options.
On the other hand, in the field of digital asset derivatives, there is not yet a single platform with a comprehensive product that users like, and some of them are relatively single-pronged, such as Deribit, which focuses on options, and BitMEX is the future contract giant. BitWell’s goal is to create a comprehensive derivatives platform with a comprehensive product line.
Q4:As the CEO of BitWwell, what is the competitive advantage of BitWell compared to other platforms?
BitWell’s competitiveness mainly comes from products.
At present, cryptocurrency derivatives are mainly future contracts, while options and other types of derivatives are rare, so I think there are still many opportunities in the derivatives sector.
BitWell is currently focusing on options, so why haven’t options – such a good hedging tool or hedging product, become popular in the cryptocurrency world? It’s not that the options are bad, but because the options themselves are very specialized, the requirements are very high, and only a few teams can develop the product. It’s also because we have a lot of financial experts from the traditional finance industry who have a lot of experience with options and other financial derivatives products, and they have the strength to develop such a safe, reliable, and easy to access product for users.
In addition, option is a highly specialized derivative instrument that is difficult for common users to understand. Therefore, there is an urgent need to make an option more accessible to common users and can lower the barriers to participation so that options can become more prevalent in the digital currency market.
BitWell is a platform for both professional and common users.
For example, “Simple Options” mentioned above allow users to trade options just like they trade spots, which greatly reduces the barriers to entry and learning costs. In addition, we also have an Options Pro version for professional users and institutions to hedge risks. BitWell has been optimized and innovated specifically for common users, which is a great feature and advantage. There is no product on the market today that is simpler and easier to use than our simple options.
In addition, other aspects of derivatives, such as perpetual future contracts, are under development and are expected to go live soon, while continuing to innovate and, of course, paying more attention to the user experience, including avoiding technical glitches and simplifying operations in design.
At the same time, BitWell’s market makers are all international teams with solid strength and standardized operation. When providing liquidity to the platform, they are required to ensure fair quotes in the bid and ask markets. In addition, our platform does not participate in trading, and we do not inform market makers of our users’ trading status. The continuity and stability of trading is the heart of the exchange, and we will do our best to ensure smooth and fair trading. At the same time, we will formulate a comprehensive risk control strategy to limit the impact of malicious funds, and also set very strict access standards and assessment criteria for market makers. It is our goal to provide a smooth and fair trading environment for everyone.
In the future, BitWell will also transfer all trading records on blockchain to ensure fairness and immutability.
Q5: Mr Jeff, could you please share to us the current funding status and team background of BitWell ? As you are also the BitWell’s earlier investor and chief product technical consultant. Please share to us about the members of your team and the story behind them.
Yes, in September, we received $30 million strategic investment. Investors include: Ceyuan Ventures, Dragonfly Capital, Will Hunting Capital, SNZ, HashKey, Youbi Capital, Hash Global, LinkVC and many other top global investors and celebrities.
I think there are three main things that make it possible to get that kind of financing:
The first is the growth potential of the derivatives, which top investors are very bullish on.
Secondly, BitWell’s products. For example, we have innovated the Simple Options for new users, which makes trading options as easy as trading spots; We were also the first in the world to launch DeFi options, and combined them with our Simple Options, which allows users to participate in the DeFi wave with low barriers.
Then our team, because we have a lot of multi-talented people from traditional financial fields, like Morgan Stanley, Paypal, and so on. Many of them have experience in financial derivatives and tradings, so such a team is also valued by investors.
Q6:BitWell Roadmap just released, Could you please be more specific to talk about it?
Sure. Over the past few months, many of our community members have been very active in contributing ideas and providing valuable efforts to the platform. The Roadmap was also formed after we listened to and adopted the opinions and suggestions from the community and after discussions among team members, and also is the general layout in the future of BitWell.
We divide them into three stages: the Genesis Era, the Dawn Era and the Hero Era.
The Genesis Era is the stage we are currently in. Our core focus is to continue to optimize our basic derivatives services, mainly options and perpetual future contracts (perpetual is under development and will be coming soon), to make it easy to build a basic derivatives portfolio and to have a faster and more accessible trading experience.
On the community side, the Well-Man programme has been initiated and established by community members and will be further expanded as necessary to better serve the community.
In addition, we will clarify the rights and benefits of the platform token WELL, complete with WELL listing on blockchain and Genesis distribution. We are currently working on a ‘Free WELL with limited Privilege Card Subscription’ Program, which is now in the Hero Round.
The Dawn Era will be officially launched at the point where WELL start circulating on blockchain.
At Dawn, we continue to introduce a wide range of innovative derivatives, including but not limited to volatility future contracts, ETFs, various index derivatives and insurance, users with different risk appetites and capital sizes can build their own portfolios according to their needs.
On the equity side, we will continue to empower WELL, as well as adding WELL as a cross margin and opening WELL’s community votes. At the same time, WELL will be burned at 50% of profit – much higher than the industry level, which further promotes the extreme deflation of WELL.
On the community side, we plan to launch a community partner program and an institutional partner program in this stage to connect more closely with our users through the partner mechanism, and we will allow them to participate deeply in the governance of the platform.
Hero Era, 6-12 months after circulation on blockchain of WELL as the launch point.
We will then be creating our own decentralised financial services platform, and will ensure that it is decentralised and integrated with the platform business.
In terms of products, we will continue to expand the boundaries of derivatives, incorporating more blockchain technology inwards, while working outwards to offer derivatives services to traditional areas.
On the community side, based on the community partners, we will establish a community council, and council members will have the right to independently govern the platform. At the same time, a community dividend plan will be launched, allowing more community members to share the dividends of platform development.
For the platform token WELL, we will continue to burn and the ultimate goal is to burn to 21 million, which is 1% of the total. By then, WELL will become the hard currency of the BitWell platform, and it will also be a bridge connecting BitWell with other platforms.
BitWell’s vision is to use derivatives as an entry point to bring more blockchain applications to the public, facilitate the integration of the platform with traditional sectors, launch more financial services, and make BitWell a fair and transparent collection of the world’s top blockchain services.
Q7:WELL as the Platform Token of BitWell, What is the role and function of WELL? And how is the economic model of WELL designed? What are the advantages?
The WELL is the BitWell Platform Token, which represents the benefits of the BitWell community. Current benefits include: discounted trading fees, offsetting options fees, pre-emption privileges, access to become community partners, and more.
The WELL can be used as a catalyst and lubricant in building the BitWell ecosystem. Later on, we will add WELL as a cross margin, and enable community voting by WELL. In addition, we will promote a multi-track burn, extreme deflationary economic model. The platform has already burned 15.7% of the total through yield farming; in the future, there will be weekly 50% profit buyback burn (much higher than the industry average), team-owned token burn, community self-governed burn, etc. to drive extreme deflation of the WELL at a very fast pace. The ultimate goal of the WELL is to destroy up to 21 million units, or 1% of the total.
The total number is 2.1 billion, distributed as follows.
Among them, 4% of the seed round and 4% of the angel round will be unlocked gradually starting from the 6th month after WELL’s circulation, and 18 months linearly unlocked.
The key point to mention here is the 16% of the founding team, which is locked for 2 years, and then unlocked in a way that is tied to the platform’s operating profits, in a period of no shorter than 2 years. It means that if the platform was not profitable last week, the team penalty plan will be implemented and the team’s tokens will be burned; if the platform is profitable but does not meet the standard, it will be deemed as not profitable through community voting, and the team penalty will be implemented. In other words, as long as the platform does not make profits meet the target, the team’s tokens will be burned first. If we make profits, every Monday, 50% of the platform’s profit from the previous week will be used to buy back WELL tokens to burn, which is much higher than the industry average.
In addition, at the end of the previous yield farming, 6.3 million WELL (0.3%) mined by users, the remaining 329.7 million have been burned, accounting for 15.7% of the total.
So overall, 76% of WELL is locked, as shown below:
Q8: Earlier, BitWell launched the first ‘Yield Farming’.Please give us an update or feedback about it form community? What is the current status of WELL? As the Platform Token, What is your next plan in the Secondary market?
We obtained much attention when we launched our yield farming program at the beginning of September, we also introduced a free auction for WELL, which allows users to sell their WELL at auction in BitWell. So far, the price of WELL has risen to 0.17 U through auction, which is 17 times of the initial price.
After 2 months yield farming, we rolled out the ‘WELL Giveaway’ program.
We launched the ‘Free WELL with limited Privilege Card Subscription’ Program on November 16th. The Genesis Round (the first round) is only for old users who participated in yield farming. It was successfully concluded on November 21th and old users subscribed for a total value of 6.72 million USDT and received 42 million WELL. The Dawn Round (the second round) for institutional and large investors also ended on November 24. Users subscribed a total value of 7.14 million USDT and received 42 million WELL. The hero round (the final round) for all users ended on the 28th.
We will start the WELL onchain circulating after the Hero Round is completed soon.
Q9: Binance and later BNB came to us in the Bull Market of 2017. Now 2020, the Bull Market is coming back, can you imagine the future of BitWell and WELL ? or What is the expectation for BitWELL in the future?
First of all, about this bull market, at the end of 2017, it is true that bitcoin hit a historical high price of around $20,000; then during this period of time, we also see that bitcoin is constantly moving towards its historical highs, stimulated by a series of good news like the continuous buying of bitcoin by Grayscale, and Paypal starting to support bitcoin.
In 2017, Binance just started and so did BNB. I remember around December 15, 2017, the price of BNB was $2, and later it reached $39.6, which was 260 times higher than the public offering price, which was very impressive indeed.
But we should clearly understand that the rise of Binance is not only because of the bull market at the end of 2017, but also because of the bull market environment and industry opportunities. More importantly, the whole platform has the right direction and a good team, and processed more innovation in the industry in the following two years, which made the platform bigger and stronger, and BNB has such a good performance as well.
The environment we are in now is very similar to the one we were in in 2017, both in terms of the trend of Bitcoin and the industry environment. Internally, the BitWell team is more professional than others, and we also have team members from Binance, so we can say that we are a pro team. So all of these give BitWell a different basis from other new generation platforms, and I believe we have advantages that most platforms don’t have.
I believe that history is always similar; I also believe that BitWell has chosen the right direction for derivatives, which is not just for me, but also for the industry and investors. Therefore, I am confident that as long as the BitWell team keeps going, there will be good development in the future, and the future performance of WELL is worth everyone’s expectation. We also hope that more and more users will be willing to grow with BitWell and share the benefits and dividends of WELL in the future.
To answer the question of what kind of platform we want to build BitWell to, as Roadmap says, the first step is to build a digital asset derivatives platform with a comprehensive product line; the next step is to expand and extend the businesses, gradually promote the integration of the platform with traditional sectors, and launch more financial services using blockchain and decentralized technology, so that BitWell will be able to offer a wide range of financial services. To be a fair and transparent service provider of global blockchain.
Q10:In the field of digital assets, the Derivatives market is not as big as the Spot Market. But Jeff, you chose and jointed the BitWell which is a crypto derivatives trading platform. How do you see the future of the derivatives market? How will BitWell become a new star in the future? Does any more future plan want to share with us?
For future development plans:
On one hand, we would like to offer more financial derivatives that have been proven in traditional financial markets, but are still a gap in the crypto-asset world. Of course, it is not a simple duplication, but will be adjusted according to the actual situation of the industry and user needs. Regardless of the changes, the core demand is the same: to allow users to gain returns on their investments in a more efficient, lower cost, and safer way.
On the other hand, options will continue to grow and more options will be launched, and of course, ensuring the safety of user funds is BitWell’s top priority, so we will focus on the safety and sustainability of options.
At the same time, I hope we can continue to find new ways to make more innovative products.
BitWell is a platform HQed overseas, and our team members are distributed in many countries, regions. In terms of system, BitWell integrates multiple signatures, TSS and other technologies, and the private key is jointly controlled by multiple members, so there is no need to rely on a single person for authorization.
Meanwhile, BitWell has set up an investor protection fund since its inception, and the fund size has reached 100 million US dollars; our team independently developed a multi-layered cold wallet system, and all deposit addresses are all cold wallet addresses; users are free to deposit and withdraw in BitWell, and funds are safe and reliable.
We hear you and we are in the middle of applying for a license in a few countries. We definitely would like to work with regulators in order to make sure all our users’ assets are sound safe from regulatory risks. We also introduce higher compliance standard for KYC and AML perspectives.
Unlike others, as mentioned above, BitWell is a platform for both professional and common users.
For example, “Simple Options” allow users to trade options just like they trade spots, which greatly reduces the barriers to entry and learning costs. In addition, we also have an Options Pro version for professional users and institutions to hedge risks. BitWell has been optimized and innovated specifically for common users, which is a great feature and advantage. There is no product on the market today that is simpler and easier to use than our simple options.
This is a very broad question and I will try my best to answer this. As we all know, there are a lot of applications in traditional industry that can be applied to block chain such as supply chain, financial industry and many more. Blockchain itself is a very young technology and it probably will be the next internet in the coming years. We also can see the trends of traditional companies participating in this industry. For example, we can see from the Defi trend that we are innovating the traditional financial product into decentralization and I believe there will be a lot more later.
To be honest, I do not have such kind of plan 😄 but we are willing to participate in these changes together with these companies. We would like to constantly provide innovative solutions to the industry and grow together within the ecosystem.
Good question and I totally agree that all these 3 need to work hand in hand to have a successful project.
Let me start with the developer which is us, we have a pretty strong team developing the product and the team is constantly delivering. As you can see from our diverse background and knowledge, we are aiming to deliver a world class product for all of our users.
As a result of the good team and potential of the product, we got the trust from the investors and managed to raise our funding which makes us confident to deliver more user friendly and innovative products to our users and community.
Last but not least, community is our main focus right now and we are constantly listening to community feedbacks, governance as well as suggestions. Therefore I would like to urge users like you to join our community and grow together with the Bitwell ecosystem since we would like to grow our international community aggressively.
Q1. How does BitWell derivatives market protect speculators from major losses in derivatives? What are the risk-control mechanisms?
Currently we are offering optiions trading, the nature of options itself is limited losses. So it is easier to hedge against spot or future market.
In order to get the complete ecosytem, we are currently working on the future product.
Q2. What plans are in place for global expansion, are you focused on a single market?
We are a global company and constantly looking for opportunity in global market. If you have any friends who is interested to work with us, please feel free to reach out to me.
Q3. Can the communities make suggestions concerning the development of BITWELL exchange ?
Definitely we are welcome any idea from community, we would like to serve the community interest as our first priority.
Q4. As I Know $WELL is the BitWell Platform Token, What kind of benefits offers this which represents to the BitWell community?
Correct, currently the token will be used for trading fee discount, governance as well as voting rights.
Since it is a governance token, you can propose an idea by holding the token and vote for it.
Q5. Could you please talk about the development planning of Indonesian market?
Sure, we are currently looking for a partner in Indonesia to expand into the region and moreover we are looking for Bitwell Knight in Indonesia to help us grow the community. Feel free to reach out to us for more details.