Exploring the Possibilities of Crypto Derivatives Exchange with BitOrb

Asia Blockchain Review

August 13, 2019

Asia Blockchain Review recently spoke to Lim Hoong-Teng, CEO of BitOrb, an innovative cryptocurrency derivatives exchange with microsecond latency for high-frequency trading and a competitive fee structure. Lim talked about the state of the STO market, its partnership with TomoChain, and BitOrb’s roadmap moving forward.

Asia Blockchain Review: Can you tell us about BitOrb’s vision? 

BitOrb aims to be the market leader for crypto derivatives. Derivatives include futures, options, and warrants, whose value is derived from and dependent on the value of an underlying asset. 

To realize this vision, we have three fundamentals to guide us:  

  1. To be transparent and fair to all our users and investors. For users, we have an audit team to continuously ensure that we abide by industry trading standards. For investors concerned with profit share, we practice transparency by engaging one of the top accounting firms in the world to audit our accounts.  
  2. We choose to be regulated. By being regulated, it provides assurance to users of our exchange that there is oversight regarding our operations.
  3. We are intuitive by design. All our designs are tuned towards the needs and wants of the traders to make their trading simpler and more efficient. In addition, we have 3 different modes to cater to all levels of traders. 

These fundamentals are also the foundation of our corporate culture. They strengthen the values in our human assets that are necessary to achieve great results.  

ABR: As BitOrb aims to be a market leader as a crypto derivatives exchange, what are your prospects for crypto-trading in the future? Will futures/options/swap transactions be provided in the exchange, similar to traditional financial markets? 

BitOrb will launch in December 2019 with two main product contracts: Bitcoin and Ethereum perpetual contracts. BitOrb also will introduce new digital asset contracts and financial tools, such as options, that are currently under consideration. We intend to introduce or create new innovative products that have not yet been seen in the market thus far. We will announce the launch dates at a later time. 

 

ABR: Since BitOrb provides HFT (high-frequency trading), like in traditional financial trading, will it be dominant in crypto-trading? 

With the robust and sophisticated infrastructure built by our software developers, BitOrb is able to cater to high-frequency and high-volume trading on its platform. We are aiming to cater to as many as 100,000 order-matching transactions per second. Initially, we will be able to handle a minimum of 10,000 order-matching transactions per second. 

 

ABR: How do you see the volatility issue in crypto-trading? 

Volatility is expected in almost anything that is new. Cryptocurrencies are very new to the market when compared to the rest of the modern financial age. With wider-scale adoption and better understanding of the use of cryptocurrencies, key digital assets like Bitcoin will become increasingly stable. 

However, real stability will not be achieved until much further into the future. Until then, high-net-worth individuals and institutions that wish to maintain their digital asset wealth will use regulated exchanges that enable them to hedge their net position. This ability to ride the volatile nature of cryptocurrencies and maintain their overall total digital asset wealth is the reason why cryptocurrency derivatives are much sought after.  

Volatility is also the key reason traders trade crypto, as it provides opportunities for higher profit margins. As the old adage goes, where there are risks, there are rewards. Although we cater to this market demand, we persevere as much as possible to offer fair opportunities for all BitOrb traders. 

 

ABR: Can you tell us about your partnership with TomoChain? As TomoWallet is advising on the development of the Orbyt Wallet, what is the next step for the partnership? 

We have been monitoring TomoChain’s development since mid-2018. Seeing the blockchain project meeting their milestones and staying ahead of the curve with their innovative technologies speaks volumes about their achievements thus far. 

We approached them late last year, joined their AMAs, and finally met the founder in January 2019 in Singapore. Over the following months, there were many discussions and brainstorming sessions on establishing the basic foundation of a security token protocol. We confirmed our partnership after meeting up again at Consensus in New York.  

The next step of the partnership beyond the mobile wallet is the continuous development of a new security token protocol. Both parties have agreed in principle to pursue the development of a purpose-built security token protocol that enables the issuer the flexibility of catering to the many different requirements of the different jurisdictions around the world. 

 

ABR: What was the feedback from your recently conducted BitOrb Asia Roadshow in Seoul, Hong Kong, and Tokyo? Why did you choose these cities? 

These destinations are entry points into very large and crypto-literate markets. A significant volume of the world’s trades in cryptocurrency goes through traders in this region. The roadshow gave us the opportunity to meet and greet possible traders and investors, whilst announcing the coming arrival of BitOrb later this year. 

During the roadshow, we presented our security token benefits and showcased the advanced capabilities of BitOrb. Many were intrigued by the launch of the security token offering (STO), and all were impressed with the advanced tools made available through the Orchestrator. 

Another reason for us getting out there is to get a feel of the culture of the different communities, so that we can organize meet-and-greet sessions in future for BitOrb traders who want to learn more about trading crypto derivatives. 

 

ABR: As the ICO market is slowing down, STOs are gaining more attention and expected to ramp up the market in 2019. However, due to longer regulatory approval processes for these assets, unlike ICOs, smaller businesses or startups might struggle to catch up to the trend. How is BitOrb overcoming these issues to ensure they don’t fall behind?  

With regulatory frameworks in mind, we engaged third-party services for Know-Your-Customer (KYC) and Anti-Money-Laundering (AML) checks on all initial token investors. To take it a step further, we are also conducting Watchlist checks on all investors for social media warning signs, criminal records, and politically exposed persons.  

BitOrb stays ahead by pushing the envelope of software development to take into account security token needs, now and in the future. One of the great things about blockchain is that at a future date, issuers have the option of swapping tokens onto a newer, more specific security token protocol. 

As far as investors are concerned, as long as there is ample time and that the swap is carried out in a professional manner, then continuous swaps over the long term in the interest of industry standards (and potentially increased liquidity) is not an issue at all. Thus, to be a market leader, BitOrb has to flow with the times and adapt accordingly.  

 

ABR: In Singapore, security tokens are governed under the country’s traditional security law. In this case, how do you see the current STO market? What are your opinions on the development of STO?  

STOs are here to stay. Going into the future, the only questions that arise regarding this fundraising methodology revolve around the regulations behind the ownership of the tokens throughout its lifecycle. We engaged lawyers in Singapore and the United States to ensure that our whitepaper and our token offering are in line with their regulatory frameworks. This covers both qualifying investors and advertising restrictions. That’s why in some countries and especially UN-sanctioned countries, our website appears different as compared to elsewhere. 

BitOrb is pro-regulations and pro-security tokens. We believe that the world should embrace decentralized ledger technologies and that, one day, digitized securities will become standardized, perhaps over multiple common tiers, starting with blocks or regional jurisdictions. 


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Asia Blockchain Review

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Asia Blockchain Review is the largest initiative for media and community building in Asia for blockchain technology. We aim to connect all blockchain enthusiasts on a regional scale and facilitate the technological foundation of blockchain through a range of group discussions, technical workshops, conferences, and consulting programs.

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