AAX AMA Recap

AAX AMA Recap

CryptoDiffer team

Hello, everyone!

We are glad to meet here 

Michael Wong (@MichaelWong111), COO and CCO at AAX 

Ben Caselin (@BC1986butstillyoung), Content and Business Strategist at AAX

Michael Wong COO and CCO at AAX

Hi everyone!

Ben Caselin Content and Business Strategist at AAX

Hi, thanks for having us.

CryptoDiffer team

Let`s start from the introduction question:

Q1: Can you introduce yourself to the community? What is your background and how did you join AAX?

 

Michael Wong COO and CCO at AAX

Hi, thanks for the introduction and great to meet everyone!

I’m the COO here at AAX and one of the co-founding team members.  Prior to AAX I worked extensively with stock exchange and financial markets trading technology, with clients including the LSE and other venues in the US and Europe.  I focused in building very fast and high capacity trading systems for trading and analysis.

Before coming to AAX, I was leading IBM’s Blockchain Business Development here in Hong Kong.

I joined AAX because when I first met the other co-founders they wanted to know about my background in low latency trading systems and also blockchain technology.  We quickly shared the vision of what a combining the best of trading technology with crypto and blockchain assets – a next generation crypto exchange, and thus AAX was born!

Ben Caselin Content and Business Strategist at AAX

I am Ben Caselin – I lead content and support business strategy at AAX. It’s really a matter of having a lot of conversations and discussions and looking for unique solutions together, and then sharing our vision as accurate as possible with different audiences.

I’ve been active in the blockchain space for a few years now. We’ve been going through an exciting time at AAX, so looking forward to speaking about it.

CryptoDiffer team

thanks for your answer @MichaelWong111 @BC1986butstillyoung 

It’s time move to the best questons from Twitter:

Cryptodiffer Community

Q1:@LeHongP32690669

What is the key market of AAX exchange? Now that cryptocurrency laws have been passed in some countries, is that a turning point for the global development of AAX exchange?

Ben Caselin Content and Business Strategist at AAX

Great question

AAX is primarily focused on Asia and Europe – and we’ve seen considerable growth lately in Russia, Vietnam and Indonesia. 

As to regulation, it is still very fragile, and although there have been a lot of developments over the course of 2019, the landscape still keeps shifting.

For now, there is no turning point – we keep a close eye on developments in the regulatory space and adapt accordingly.

But as we’ve built AAX in anticipation of increased regulation and integration with global finance, we believe that as demands on exchanges continue to rise, and a process of elimination and consolidation of exchanges begins to take shape, we’re well equipped to scale up and rise in the ranks.

 

Cryptodiffer Community

Q2:@wheeinpurple

As we know that AAXExchange uses LSEG as the main technology, can you explain the advantages and disadvantages of using LSEG? and what are the benefits for your tokenomics?

Michael Wong COO and CCO at AAX

Great question!

We are using the Millennium Exchange’s low latency, resilient, and scalable matching engine which provides AAX with market-leading performance and reliability.

This is actually the very same code base which is being run at the London Stock Exchange and at other major trading venues for traditional financial markets around the world – which means our customers can trade at AAX knowing that we have proven, reliable and scalable technology.

It’s also extremely fast and high capacity; this is really important at times of market stress, like during the recent activity in the perpetual contracts markets where some of our competitors struggled because their systems were unable to keep up under mass liquidations; our matching engine is fast enough to keep up with these types of market events.

It also makes it really fast and efficient to deploy new products and over the next few months we have some really exciting new products and projects in plan!  

Crypto keeps changing and we plan to be on the front of the innovation with new projects and listings!

Cryptodiffer Community

Q3:@fuwaruyac

What is your strategy to attract customers and investors to $AAB in the long term?

Ben Caselin Content and Business Strategist at AAX

Early investors in AAB will be drawn either by the flash sale rounds that precede the opening up of the spot market, or by the idea that getting in so early holds the promise of a lot of price action.

What’s also attractive, in the long term, is that AAB will benefit from daily buybacks and coin burns. This is a pretty aggressive growth strategy, where AAX will spend 100% of all earnings on our derivatives markets on buying and burning AAB. We will keep doing this until 50% of the total AAB supply is destroyed. But the real, long term point of attracting must be the exchange itself.

AAX was built to connect crypto to global finance, which would enable this industry to tap into much larger, much markets that reach far into the trillions. We have a vision and a roadmap, and we’ve raised the standards for integrity, security and performance. In our ecosystem, AAB can be used to trade with a discount, to optimize lending and borrowing products, unlock special features, and gain access to unique financial products. But demand, and with price, will only really increase over the long term if the exchange grows and really extends its reach.

 

CryptoDiffer team

Ok, thanks for such interesting answers!

Let’s move to the Telegram community questions part. 

Cryptodiffer Community

Is KYC is manditory for services like Deposit, withdrawal,trading in  AAX exchange ? Also tell us what are the benefits of doing KYC on AAX exchange ?

Ben Caselin Content and Business Strategist at AAX

For some products, for example, to trade PhiGold, users must have passed KYC. It is technically possible to register with AAX and verify your email adress or phonenumber and aklready deposit, trade, and withdraw up to 1 BTC a day.

However, when you pass KYC, you will have access to our OTC marketplace where you can buy and sell crypto for fiat, your withdrawal limits are higher, you can take part in campaigns/promotional activities, and generally, as the crypto space continues to develop, you can expect KYC requirements to become more solid everywhere. 

And it’s a good thing, it helps us as an exchange to ensure that the market is free from bad actors.

Cryptodiffer Community

Do you also thinks AAX is Asia’s BAKKT?

I heard Chan said that its a barrier for BAKKT to acquire users as they have a physically delivered network, So, What startegy is AAX using to aquire users?

Michael Wong COO and CCO at AAX

Thanks for your question Elly; we think there’s a generation of new crypto exchanges who have a focus on bringing the very best from institutional markets to users in the crypto markets and we appreciate the work of others in the industry like Bakkt.  Here at AAX we have a perpetual contracts and have a series of new listings planned in this space as well as some new products planned for later this year.

For acquiring users we have a series of campaigns for both professional / institutions and retail clients, including loyalty, affiliate, referral and market making programmes – our website has a lot of these details plus coming soon we have new upcoming trading competitions with prizes!

Cryptodiffer Community

The first two days of your IEO the token will be half its price, it means the market won’t fluctuate according to offer/demand those days?

Ben Caselin Content and Business Strategist at AAX

During the first two days, a small group of subscribers will be able to purchase AAB at a 50% discount and half of all buyers in the first two flash sale rounds will get their USDT back and will get to keep their AAB for free, based on a random selection.

During those days participants will not be able to trade AAB, and there is a lockup period as well – once the market opens, AAB can be traded freely, but from then onwards we will also be starting to do daily buybacks and coinburns which will increase buy pressure

Cryptodiffer Community

What are your goals to make crypto money markets safe and accessible, especially to enable large and institutional investors to invest?

Does AAB have plans for buyback and lock-up of tokens and community tasks-activities to raise awareness and bring mass adoption?

Michael Wong COO and CCO at AAX

Thanks for your question Yuriy.  To make the markets safe and investable for institutions we’ve tried to take a multi factor approach. 

At the core is an institutional grade matching engine from LSEG Technology – this is a platform many institutions are already connected to and has the same interfaces and capacity that hosts other major products like the FTSE100 companies.

We’ve also worked hard on our security; from ground up and by design.  We’ve adopted Crypto Currency Security Standards to ensure our wallets are created, managed and operated with the very latest and best in security standards.  

We also recognise the importance for industry grade custody and services for the institutional market – we have some new services and features lining up soon that we’ll announce over the next couple of months that will give institutions that end to end re-assurance – from custody, to execution and security of data and assets

Cryptodiffer Community

Does AAB have plans for buyback and lock-up of tokens and community tasks-activities to raise awareness and bring mass adoption?

Ben Caselin Content and Business Strategist at AAX

AAB will benefit from daily buybacks and coinburns funded by 100% of all trading fees earned by AAX on its futures markets. 

Any AAB bought back from the market will be permanently destroyed and auditable on the blockchain. This process will continue until 50% of the total supply of AAB is destroyed.

To give an idea of what this implies:

AAX currently ranks 39th on contractmarketcap.com, between ErisX (51st) and Bakkt (36th). If we take the top 10 crypto derivatives exchanges by daily trade volume, we can see that daily volumes range between $1bn and $11.5bn on average.

Even if AAX were to secure a place at the lower end of the top 10, generating between $1bn to $3.5bn a day, AAX’s buybacks and coinburns would still mean the destruction of $250k to $875k worth of AAB per day.

There is no doubt that AAX’s daily buyburns will stimulate significant price action and present token holders with an opportunity to grow with AAX. 

The lockup period is only relevant for those who bought AAB during the flash sale rounds, and it’s for 15 days, after which it is gradually released (5% per day) over the course of 20 days.

Cryptodiffer Community

What are the similarities between AAX and other stock exchange, when they habe the same matching engine, and what make AAX being part of the cryptomarket?

Michael Wong COO and CCO at AAX

AAX stands between crypto and global finance in a variety of different way. For example, in our token listings we list conventional cryptocurrencies, but we now also commodity finance tokens which enables investors to invest in physical gold mines – up until now this was only accessible to investment bankers and the elite.

But at the level of market infrastructure, we also stand in between. On the one hand we operate a proprietary wallet system, which uniquely enables participants to trade across OTC, spot and futures markets; but we also operate a ‘traditional matching engine’; on the one hand, we operate an API, but we’re also in the process of implementing FIX connectivity.

What we’ve built is an exchange that’s attractive and accesible to retail traders, but also institutional investors that expecxt a certain level of professionalism.

Cryptodiffer Community

For Growing any Exchange, Userbase & Adoption are very important & its possible if all users tell their Friends, Family,etc about AAX Exchange! 

So, Is there any Referral system or any similar program run By AAX Exchange where user can promote your Exchange with their friends, etc & Earn some money through Referral system?

Ben Caselin Content and Business Strategist at AAX

Hi, yes, we have a number of different activities in place to promote growth. And indeed we also have a referral program in place (https://www.aax.com/tribe-application). 

We call it AAX Tribe. Basically, share your referral code and you can earn up to 40% in commissions based on their trading activities, and even earn another 10% from all indirect/secondary referrals. 

The more users you are able to introduce to AAX and who actually trade with us, the more you can earn.

Cryptodiffer Community

Tell me, how does the AAXExchange KYC authentication system work, how is it protected from fraudsters, and are user personal data protected from hacking?

Michael Wong COO and CCO at AAX

Thanks for your question; we have a multi-stage KYC process leveraging both our own homegrown systems and also third party screening systems to ensure that our users get to interact with a quality and clean pool of liquidity.  For protection of our clients, we prioritise security – it’s one of our core values!  We use a combination of sophisticated screening, continuous monitoring and encryption technologies to protect our systems and our clients data.

Cryptodiffer Community

Some exchanges are lacking customer service or customer support.  Do you have a 24hr customer support service? How would you define good customer service?

Ben Caselin Content and Business Strategist at AAX

Yes, we offer 24/7 customer support. They are always availablel and always ready to help, and work very hard. Good customer service is personal and tailored. I can tell you that when a problem pops up, this is quickly communitcated, and dealt with great attention.

Cryptodiffer Community

According to your website, AAX is the first and only digital asset exchange powered by LSEG Technology. Can you enlighten us what is LSEG technology and why it will help AAX ahead of its competitors?

Ben Caselin Content and Business Strategist at AAX

LSEG Technology is proven in more than 40 markets, and the matching engine that we use is high-performing and trusted by institutional participants. It’s built to be MiFid II compliant, is incredibly robust, and makes it possible for AAX to really operate at scale.

 What’s also interesting is that the matching engine still holds a lot more capabilities such as FIX connectivity and a wide range of different order types and other functions, that we will roll out over the coming year.

There is not so much a disadvantage to this technology, but to make the engine suitable for the crypto markets, a lot of work and collaboration was required with LSEG Technology. Now, the engine can be used to trade cryptocurrencies on a 24/7 basis, and we’re the first to have ever deployed a this piece of technology on the cloud.

Cryptodiffer Community

What benefits do you offer to a trader to trade at Aax exchange over others?And the fee for trading, is it cheaper than other exchanges?

Michael Wong COO and CCO at AAX

Thanks for the question!  For trading fees, we’re literally about to announce some updates to our fees structure and from tomorrow we believe we’ll have perhaps the cheapest taker fees in the market – please tune in to our website and channels to find out more tomorrow!

Cryptodiffer Community

The biggest barrier for newcomers in the crypto space today is buying and withdraw with FIAT, how secure and robust is your FIAT GATEWAY and what currencies are currently available?

The biggest problem for exchange today is that of REGULATIONS and LEGISLATION, how does AAX thrive in light of unfavorable crypto regulations?

Ben Caselin Content and Business Strategist at AAX

The biggest problem for exchange today is that of REGULATIONS and LEGISLATION, how does AAX thrive in light of unfavorable crypto regulations?

When we started the exchange, in addition to spot and futures, we immediately set up an OTC marketplace, which provides a simple and user friendly way to buy and sell crypto fiat.

Soon, we will also be opening up other payment gateways.

Fiat on and off ramps are very important, not just to make the crypto space more accessible and to drive adoption, but also because a healthy asset class, that’s integrated with other financial markets, should be easy to trade into and out of. 

Regulation is something we keep a close eye on, always. In some cases, like with US, we are not yet able to provide our services, and we respect that; in other places, the market is very open. Generally, we understand the concerns regulators might have over consumer protection or the potential risks of money laundering – it’s only right for an exchange that wishes to see this industry grow to be cooperative in this regard.

Cryptodiffer Community

What offerings or plans does your platform present to fulfill the mission of connecting crypto to global finance?

Michael Wong COO and CCO at AAX

Thanks you for your question.  We believe the spectrum of digital assets encompasses decentralised crypto tokens (BTC, ETH, XRP etc) through to tokenised assets of all descriptions – we see islands of this, central bank digital assets, STOs etc and this is a future that AAX was built to support.

One particular recently listing is Phigold (PGX).  Each token represents a major discount off of the gold spot price because of the commodity financing model.  We think this is interesting and if you’d like to learn more about it you can find an article we published on it on our blog.  

Cryptodiffer TEAM

Thanks for such informative answers!

It was a pleasure to conduct an AMA with AAX !!!

Thanks for your time @MichaelWong111 and @BC1986butstillyoung  

Let’s finish the AMA

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