Since the birth of the exchange, “how to improve liquidity” has been a key topic explored by entrepreneurs.
However, with the huge fluctuations in the long and short periods of Bitcoin and other cryptocurrencies, the activity of the exchange also shows the law of periodic fluctuations. When the bull market comes, the exchange liquidity will be very good. When the bear market comes, the exchange will flow. Sex is back to exhaustion.
In the cryptocurrency market where bulls, bears, bears and bears are long, many exchanges have even been eliminated. These include centralized exchanges that are known for their transaction depth, as well as decentralized exchanges where transaction depth is generally criticized.
So, in the course of the 10-year development of the exchange, can it completely solve the liquidity problem of the exchange? Recently, the highly sought-after and highly concerned HBTC exchange, can the proposed “crowdfunding liquidity + grid trading” solve the problem of liquidity depletion generally faced by the exchange field?
1. How should the exchanges under the liquidity crisis break?
In recent years, the “closing” of exchanges due to the depletion of liquidity has been common.
In July 2019, the Polish cryptocurrency exchange Bitmarket suddenly announced its withdrawal. CMC data shows that before Bitmarket announced the closure, its daily transaction volume was less than 1 million US dollars. This is a serious lack of liquidity, and the reason for the withdrawal given on the official website is also “lack of liquidity”.
In fact, the lack of liquidity in Bitmarket is by no means an example. For example, there are as many as 33.9 million posts on the Internet that focus on “liquidity of cryptocurrency exchanges”, which is enough to illustrate the industry’s attention to this issue.
According to the cryptocurrency data service company CoVenture Crypto, a research report was published, which conducted a detailed study of the “true liquidity” of cryptocurrency exchanges.
Research results show that by comparing the depth of orders, especially how much capital is needed to lower the crypto price in the top 5 liquidity portfolios by 10%, 2 of the top 5 liquidity pairs in the market are less than 1% of the actual reported amount ; And truly liquid transactions are bitcoin pairs of exchanges that have been operating since 2015 and have low API-driven transactions.
To put it simply, 99% of the trading volume of the exchanges surveyed in the CoVenture Crypto report is fraudulent, which is more fully indicative of the exchange’s liquidity crisis.
For decentralized exchanges, the situation may be even worse.
In a decentralized exchange that lacks a market-making system, the buying and selling heat is lower, resulting in a shortage of pending orders in the buying and selling area, and a small number of orders may cause dramatic price fluctuations. For example, if an investor makes a $ 1 million transaction, it is difficult for the transaction to enter the market, and it may cause the buyer to complete the transaction at a price of 1%-10% more than expected.
In other words, to complete a transaction of 1 million US dollars, the final price may be 10,000 to 100,000 US dollars higher than the original. Such a transaction status is difficult for anyone to accept.
Therefore, no matter whether it is a centralized or decentralized trading platform, whether it is voting for listing, recharging, or normal listing channels, a high-quality, gradually community-based crypto asset often appears when trading on the exchange Problems such as insufficient liquidity or serious slippage in trading on decentralized exchanges have resulted in users not being able to trade normally and smoothly, greatly affecting the user’s trading experience.
Moreover, as more and more high-quality assets are communityd and decentralized, such low liquidity problems have become more and more serious, and HBTC Hobbit’s “crowdfunding liquidity listing plan” is to solve One question.
So, is it possible to propose a strategy that does not require the team to deliberately make a market, or to brush volume, but also improve the liquidity of the deal? The upcoming “Crowdfunding Liquidity Listing Scheme” by Hobbit Exchange may be the key way to solve the problem.
Today, the HBTC hobbit trading platform ( www.hbtc.com ) announced: In response to the pain point that some existing high-quality assets lack market value management support, HBTC hobbit will launch a “crowdfunding liquidity listing plan” to redefine the exchange. Currency pattern. Through the listing scheme, the problem of low liquidity in the early stage of high-quality projects will be effectively reduced, and the smoothness of transactions of platform users will be guaranteed, so as to achieve a win-win situation for trading users, communities and trading platforms.
“HBTC’s original crowdfunding liquidity listing solution will redefine the exchange listing model to solve the problems of concentrated high-quality assets distribution and low liquidity in the secondary market,” the community users commented.
So, what is the “crowdfunding liquidity listing plan”? Why is it given the title of “solve the ultimate solution to exchange liquidity”?
2. Crowdfunding liquidity listing + grid trading + API across bricks, perfect partner?
Crowdfunding liquidity, so named, that is, participants inject the liquidity into the exchange with the idea of ”everyone gathers firewood and high flames” to enhance the liquidity and value of assets.
Therefore, the crowdfunding liquidity listing plan is that investors provide liquidity for the project in the form of “coupling” and make it meet the conditions of the online exchange.
According to the introduction of the Hobbit HBTC Exchange, the “Crowdfunding Liquidity Listing Scheme” redefines the current exchange listing model, which will effectively improve the liquidity of the project and enhance the user’s trading fluency experience.
In the “Crowdfunding Liquidity Listing Scheme”, the HBTC Hobbit trading platform will recruit several Hobbit heroes for high-quality assets. With an equivalent token of 5000 USDT, you can apply to become a Hobbit hero. In addition, the Hobbit Warrior can also gather community power to recommend high-quality assets for HBTC Hobbit. The assets recommended through crowdfunding will enter the listing queue. After the review is completed, the listing can be queued for listing.
In short, if you want to participate in the crowdfunding liquidity of the HBTC exchange, you need to hold a token worth US$5,000. For example, if a token A is worth 1USDT, then you need to hold at least 5000 A tokens. This strategy will replace the market-making system of transactions, and completely delegate market-making authority to currency-holding users.
Some people may ask, just such a simple strategy can increase the liquidity of the exchange, it is too simple.
In fact, the “story” behind crowdfunding liquidity is not simple.
First, traders need to have trading capabilities, which focuses on “grid trading + API arbitrage”, and second, investors who participate in crowdfunding liquidity must also have certain interests and abilities in trading.
The logic behind this is that while investors participate in grid strategy trading and earn income, they can also provide depth to the exchange. The higher depth can attract more API arbitrageurs, which is a win-win situation.
It can also be said that grid trading is a supplement to the common API moving brick arbitrage. For the grid, there will be transactions when there are fluctuations, and for the API moving brick arbitrage participants, there will be a price difference before moving the brick. The two are complementary. ,Indispensable.
This involves transaction depth, because when the exchange lacks depth, no matter how large the spread is, arbitrage cannot be carried out smoothly.
For example, on Exchange A, there are only 50 real-time bitcoins traded each day, but by swiping robots, the number of households is magnified 100 times to 5000. At this time, even if the price difference with other platforms can reach 100 US dollars, this time The profit of moving brick arbitrage is at most only 5000 US dollars (50*100 US dollars) instead of 500,000 US dollars (5000*100 US dollars). In this case, if all kinds of expenditures are eliminated, there is no profit at all.
Little white investors may not know much about grid trading. Here is a graphic introduction to this trading strategy.
Image source: Sharing Courses of Coin Grid B Station
The so-called grid trading is a kind of quantitative strategy, which belongs to the market arbitrage strategy. A simple understanding is that in market transactions, the strategy of falling positions to build positions and rising positions to stop profits. As shown in the figure, the red arrow represents buying during the rise, and the green shears represent selling during the decline.
The launch of the grid exchange system essentially provides a lot of convenience for market makers. Taking the recent bitcoin trend as an example, when using a grid trading strategy, the system will automatically identify the buying and selling points , Auto arbitrage through pre-set transactions. For example, the 7780USDT shown in the figure is the buy point, and the 9569USDT and 10500USDT are the sell points. 
Image source: The first order of the Hobbit Grid for sharing courses on the B site
Grid trading is the concept of position allocation. It belongs to another position that should be configured in addition to long-holding positions and contract leverage. Investing pays attention to the asset allocation strategy of “don’t put eggs in the same basket”. Of course, trading methods and ideas should also be diversified . Grid trading strategy makes traders’ daily trading more abundant.
In addition, the recently popular platform coins HBTC and NEST of the Hobbit Exchange can both adopt arbitrage strategies.
Image source: The first order of the Hobbit Grid for sharing courses on the B site
In summary, in my opinion, grid trading is part of the concept of position allocation, which belongs to another type of position that should be configured in addition to long-term positions and contract leverage. Investing in the asset allocation strategy of “don’t put eggs in the same basket”, of course, trading methods and ideas should also be diversified. It can be said that the grid trading strategy makes traders’ daily trading more abundant.
For the project party, it can save a lot of time. The project party only needs to do a good job of development and go to an excellent exchange to get a lot of liquidity. It is also good for the exchange. As long as the project is of high quality, it can attract more investors who participate in crowdfunding liquidity.
The logic of gameplay seems so rigorous, what will it look like in practice? In fact, the crowdfunding flow on-line BAT project is progressing smoothly. At the beginning of the project, it has already raised a lot of money.
3. BAT currently raises US$100,000, which is of great significance!
At present, the Hobbit Exchange first launched BAT to participate in the first crowdfunding liquidity, which has raised funds of 100,000 US dollars.
If each participant participates according to the maximum amount, then nearly 10 people have become contributors to BAT crowdfunding traffic, and they are also high-quality Hobbit captains, who enjoy a lot of benefits from the Hobbit Exchange.
BAT token is a reward token for the blockchain crypto browser Brave. The project is initiated by a team with experience in the browser. The main representative of the project is Brendan Eich, the founder of Java. Ren and the co-founder of Mozilla Firefox, the project has a very high reputation in the overseas crypto community.
It is worth mentioning that as of the end of 2019, Brave browser has more than 10 million monthly active users.
In addition to the private browser and star founding team behind BAT, another tab is an important part of the Defi ecosystem.
In 2019, BAT won the recognition of major market participants and became one of the five cryptocurrencies collateralized by the Decentralized Finance (DeFi) Compound protocol. It has also become the largest decentralized lending platform accepted by Maker DAO and the second largest collateral for Dai loans besides ETH.
In the Defi ecosystem, what can be used as collateral must inevitably satisfy both users and technology.
Therefore, the first project that Hobbit Exchange chose BAT as the “crowdfunding liquidity listing” actually mobilized the enthusiasm of participants in the Deti ecosystem in the BAT community. This not only attracts BAT community users, but also increases the depth of BAT. 
Brave browse organ network picture source: basicattentiontoken.org
About Hobbit Exchange:
The HBTC Hobbit Exchange is a platform shared by 100% of the currency holders, and is jointly invested by 56 high-quality capital such as Huobi and OKEx. After nearly two years of smooth operation, HBTC Hobbit can provide customers with currency, contract, OTC, options and other services, and the mainstream currency and contract transactions on the platform have the industry’s top liquidity and depth. The founder, Ju Jianhua, once served as the CTO of Huobi.com and the vice president of technology of X Financial, a listed company. He has extensive experience in financial transactions, Crypto assets and blockchain technology.
Recently, HBTC completed the brand upgrade and released a brand new HBC token model. The new HBC token model has built a platform shared by 100% of the currency holders, and has launched two major innovations: the “10 times PE pricing repurchase model” and the “Hobbit captain token model”. In addition, HBTC also launched platform asset transparency and transaction data trust mechanism: 100% exchange reserve certificate and 100% exchange income certificate and financial statements to ensure the safety of user assets and enhance the credibility of transaction income.