Binance reveals the key behind the success of cryptocurrency futures


Aaron Gong, vice chairman of futures on the main cryptocurrency trade Binance, defined to Cointelegraph how the corporate managed to turn into among the finest crypto futures buying and selling platforms.

Like Cointelegraph reported earlier this week, Binance not too long ago overtook BitMEX and have become the second largest platform when it comes to 24-hour Bitcoin (BTC) futures buying and selling. When requested if he's stunned by such success, Gong stated the corporate created the product with the plan to turn into one of the best Bitcoin futures buying and selling platform:

"We knew we’d be there quickly and we made it in simply over six months."

The explanations for Binance's future success

In accordance with Gong, the three principal causes for the success of Binance's futures merchandise are low buy prices, new options and numerous altcoin pairs. He stated too many scholarships supply detrimental maker prices:

"Too many different exchanges supply detrimental maker charges, with most orders being simply automated market makers competing for one of the best bid and demanding extraordinarily restricted curiosity from the taker in periods of low volatility."

Gong additionally stated that innovation additionally drives commerce volumes on the subject of Binance's future. He claimed that the trade has had just a few firsts on the subject of the crypto futures market:

“We’re the primary main crypto trade to launch a most leverage of 125x for BTC contracts, and the primary of its type to launch collateral and a sensible liquidation mechanism. These options have turn into extraordinarily common with our customers. ”

The third cause for the success of Binance's futures contracts, Gong defined, is the variety of altcoin contracts. He stated the corporate has launched 24 futures contracts on the platform, including:

As of at this time, Binance Futures is house to half of the highest 10 most liquid altcoin contracts, a lot of that are additionally probably the most traded pairs amongst all futures exchanges.

Binance & # 39; s key to future success

Gong's technique to spice up the amount of futures contracts on Binance is to proceed to supply extra options and merchandise to the trade. He stated he believes Binance has outperformed its rivals as different crypto buying and selling platforms confronted points like overload, poor threat administration and counterintuitive product designs. He defined that Binance's design was largely brought on by person complaints about different platforms:

& # 39; We particularly tried to deal with these points and enhance the person expertise. As such, we have now made great efforts to construct a number one matching engine able to dealing with greater than 100,000 orders per second. (…) Whereas there have been issues with system overload, failures, glitches and even rollbacks elsewhere, we have now confirmed time and time once more to be a secure, dependable, low price and liquid location for hedging. "

It's price noting that Binance's buying and selling platform bumped into some points in February. The trade will happen on February 19 stopped acting to unravel an sudden technical downside with its infrastructure.

As February 25 Cointelegraph evaluation illustrated, this incident occurred after every week wherein the platform usually failed to reply to dealer enter, because the plant was unable to accommodate a big person quantity.

Early March Binance stopped acting once more to clear a fault. The trade's co-founder and CEO, Changpeng Zhao, reportedly blocked Jay Hao – the CEO of rival trade OKEx – on Twitter after publicly providing to restore the infrastructure.

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

“Our futures system has been performing effectively in probably the most unstable interval since our launch. The futures market runs on a separate matching engine. ”

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