Commentary – Bits and Bullrun with Exchanges

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By Chang Jie Lin, marketing manager for Biki Exchange

As the cryptocurrency industry progresses on we experience the ebbs and flows of trends over the years. Analyzing the trends of exchanges, we notice: First generation exchanges like Mt Gox have come and gone, second generation exchanges like Huobi and Binance flourished in the crypto bull. Third generation exchanges like Fcoin have unique features like trade mining, growing rapidly but uncontrollably, eventually leading to a bubble burst. And right out of the crypto winter, we are experiencing the fourth generation of exchanges like MXC and BiKi taking on a new role in this era of 2019.

With the crypto winter sieving the wheat from the chaff, only high-quality projects remain. The ICO phase is over and few projects today abuse it as means to earn a quick buck by riding on the coattails of cryptocurrency trends. Indeed, there are much fewer dead coins and scam coins now than before, with newer trends like IEOs taking over. Yet, regardless of ICO or IEO, projects have two needs that will never change – increased liquidity and growth of token holders. Marketing and PR agencies who had helped ICOs have failed to survive the crypto winter. Thus, projects today must source for two parties to satisfy their needs for growth – an exchange to list on and an agency to market it.

Several fourth-generation exchanges have strong foundations in Chinese markets. BiKi, for instance, has 1.5 million registered users, 130,000 daily active transactions, over 50,000 Wechat community members, climbing to the top 20 exchanges in less than a year.

Meanwhile, projects who have survived the crypto winter or are fresh buds in the spring, have a growing international presence, having a hoard of supportive token holders from Russia to Japan to the United States, demanding liquidity from their projects.

Fourth generation exchanges have their own ways of standing out. For example, BiKi stands out by serving the two needs of projects whilst relying on projects for their own growth. While projects want to tap into Chinese markets, that has high barriers to entry and an ecosystem of its own, BiKi wants to move beyond the walls of Chinese markets to become a globalized name.

This inter-reliance between projects and exchanges is what allows fourth generation exchanges to flourish in the fast-paced cryptocurrency industry, catching up to exchange giants like Binance and OKEx. Projects can also benefit with expedited growth through listing on an exchange that wears two hats of listing as well as marketing.

In a sense, BiKi becomes more than an exchange, rather a gateway for international projects to bridge into Chinese markets through the exchange’s complimentary marketing services on China’s top cryptocurrency news site, Jinse.com and Wechat community outreach initiatives. Chinese projects who list on BiKi can also rely on them to penetrate the larger global market through the exchange’s international branding.

These projects no longer need to source for third party agencies to satisfy the need to grow their token holders as it is already covered complimentarily by such fourth-generation exchanges, which grew to thrive amidst the bear market. In turn, these projects can help the exchange create a name for themselves in the international scene either by word of mouth from token holders or news media catching wind of the listing.

The role of fourth-generation exchanges like BiKi has changed so drastically from first- or second-generation exchanges, that serve the sole purpose as a medium of exchange. Exchanges in 2019 have begun to realize the need for collaborative relationships with projects for mutual growth and development. This trend will likely go on into the near future, until fifth-generation exchanges emerge with another unique characteristic of their own.

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