Ten Questions: One-on-One with Andy Cheung of OkEx
Exclusive interview with Andy Cheung
Recently, popular cryptocurrency exchange OkEx decided to introduce options trading on its platform. This has made the exchange to make history by being the first cryptocurrency exchange to offer a diversified number of trading products on its platform. E-CryptoNews reached out to Andy Cheung who is the head of operations at OkEx to hear his views on the situation.
Andy Cheung Head of Operations OkEx
1. Why would OkEx go through all this trouble to implement these many instruments on one platform?
Our goal at OKEx is to be a “one-stop-shop” for crypto traders. With the addition of Options Trading, OKEx becomes the first crypto exchange to offer C2C, spot, futures, perpetual swap, and options trading under the same roof. Users can select from a wide range of products to best fit their trading and hedging strategies.
2. Are there any security implications regarding the addition of new instruments?
Like all of our services, Options Trading on OKEx is extremely secure. We rely on state-of-the-art technology to ensure we’re safeguarding our users, and publish blog posts and guides to advise users on best practices in crypto trading. As an added measure, traders must pass a suitability test to ensure they understand the products they’re trading.
3. Will the options trading feature work just the same way as in traditional options trading markets?
Yes, the basic instrument is the same. However, volatility will likely be greater in the Bitcoin market versus some physical commodities, which can lead to more risk. In this regard, we offer guides on derivative trading instruments for our users, so they can be as informed as possible.
4. What strategic advantage does OkEx stand to gain from the implementation of options trading of its platform?
Options are a hedging tool and offer traders an instrument to protect themselves against volatility in the cryptocurrency market. We believe the primary gain is that our customers demanded this hedging tool, and we delivered. Pleasing our customers and continuing to offer the largest and safest cryptocurrency derivatives market is always our primary goal.
5. Are we looking at a strategic shift from traditional instruments towards cryptocurrency-based instruments in the wider financial marketplace?
We’ve seen more institutional investors wanted to tap into the cryptocurrency market in recent years, given that the global growth rate, inflation, and interest rates all remained substantially low. Global bond yields remain stuck near record low levels, and more conversations involving negative interest rates occurred in recent months. We do believe that cryptocurrency is an asset class where all categories of investors see value. At OKEx, our opinion is that cryptocurrency derivatives are a sign of a maturing marketplace.
6. Are cryptocurrency-instruments safe for the regular day trader?
Yes, all of the cryptocurrency trading instruments from spot trading to the newly launched options products are safe for traders. Our technology is tested by our team long before launch, and subjected to rigorous tests. After launch, our development team is constantly improving formulas to improve risk management.
7. What are the implications on major events such as the upcoming Ethereum hard fork and the Bitcoin halving event on instrument prices?
Well, we have seen multiple analytical reports on the price implications of these events. At OKEx, we believe in the underlying value of Bitcoin and Ethereum – the former is 2019’s best performing asset class. In 2020, we expect to see the digital asset markets continue to grow. The Bitcoin halving will be particularly interesting to watch. While there is some data to suggest that the price of BTC can increase after a halving, there’s also data showing that halvings don’t have much of a direct impact on price. Either way, traders will have their eyes on this.
8. What other special features trading conditions and so on are we to expect from OkEx?
At OKEx, we are constantly evolving our current offering and expanding our service for customers. So, our users can expect more listings, more instruments, more variety. We also aim to build our influence around the world through our continued outreach to innovators and entrepreneurs. OKChain is in its final testing phases and we’re preparing to launch our testnet. OKDEx will be the first application on top of OKChain. When the OKChain mainnet goes live, we will migrate OKB, the native token of the network, from ERC-20 to OKChain. With OKB, users can vote for their favorite supernode candidate and settle transaction fees on OKDex. We will have updates on OKChain and OKDEx in early 2020.
9. What will 2020 bring for the cryptocurrency trading World?
We are very excited about 2020 and believe cryptocurrency and blockchain will see continued adoption across numerous channels and sectors. At OKEx, we believe the marketplace will continue to mature and see increased institutional adoption, and we are hopeful of a Bitcoin ETF next year.
10. If you had three wishes for 2020 as regards cryptocurrency trading and a Genie that could make them come true, what would they be?
For cryptocurrency exchanges to work together to service the massive underbanked and unbanked community across the globe.
For governments around the globe to understand the needs of the blockchain community and collaborate to support more innovation in this space.
To see a world where individuals are in control of their financial assets without intermediaries.