On June 5th, a message suddenly froze in the circle.
The long-lost bit of mainland China CEO Wu Jihan will launch a new startup, Matrix, by the end of July, and the company's business direction is over-the-counter (OTC) and asset management.
Media analysis, as a project in the internal incubation of Bitcoin, Bitcoin or become a major customer, which means that Matrix may become the "largest over-the-counter trading platform in the world" overnight.
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In 2013, Wu Jihan decided to establish Bitland. In 2019, Matrix gradually surfaced. The former laid the cornerstone of the entire cryptocurrency industry, and also made Bitcoin a black hole. If the report does not differ, the financial field in which the latter is located is undoubtedly the key to promoting the institutionalization and maturity of the cryptocurrency, and is the beginning of a new story of cryptocurrency.
However, after experiencing the previous layoffs and the team's "forking" storm, Wu Jihan can re-enclose the gods in the new story.
Why is it called Matrix, probably because Wu Jihan's favorite movie is "The Matrix."
Wu Jihan, a bigger ambition in "password finance"?
On March 26, 2019, Bittland issued an internal letter announcing the organizational restructuring. At that time, the media analysis Wu Jihan may be responsible for the business of the company named Matrix. More information disclosed that many of its employees work in the BCH business unit of Bitland.
In the past 3 months, where will Wu Jihan go? Which business does Matrix participate in? This has always been the focus of public attention, but the bite mainland has not disclosed any information.
Now a newsletter has made the public discover that Matrix's business may involve the trading and hosting of crypto assets. OTC is the main business direction. If it is targeted at Bitcoin, it will become the world's largest OTC transaction overnight. Asset management company. And just a month away from the company's launch.
However, at present, Bit China and Wu Jihan have not commented on this.
In an interview with Babbitt, Chen Lei, the founding partner of Bit Blue Whale, said that the team has existed for a long time. This matter has been brewing for a long time. It should have been doing product technology polishing and capital preparation, and conducting basic communication on the market side. "If the scale of this gathering is large enough, the target of this potential energy is definitely the largest BTC trading depository platform. If they do, it means that the BTC's minting issuance cost and depository interest rate will have a large pricing power in Bitcoin. ""
Liu Chang, the founder of Zhimi University, believes that he does not understand Matrix's specific business model. If the content of the report is correct, he believes that Matrix does not necessarily only do OTC, but considers a wider range of password finance. "The biggest advantage of password consensus (asymmetric cryptography + distributed consensus) is to reduce the dependence on the intermediary and the center. The most successful application is the cryptocurrency. The future cryptosystem will be built from various functions and levels of cryptocurrency to build the underlying infrastructure. Password finance, which is based on cryptocurrency transactions, will replace traditional finance with credit intermediation as its core. Matrix is promising to be at the forefront of cryptography by virtue of Bitland and Wu Jihan's leading position in the crypto-economic sector."
OTC rivers and lakes, the crowds are competing, the war is coming soon
The Matrix sword is highly likely to refer to financial business. For example, in May 2018, Bittland led a $110 million investment in Circle, and the main business of the platform was OTC. As a core enterprise in the mining industry, Bitcoin holds a large number of cryptographic assets including BTC and BCH, which can cope with the transaction depth required for OTC business. Bitcoin and Wu Jihan are strong brands in the industry and have the trust that OTC needs. In addition, don't forget, Wu Jihan is a bachelor of economics from Peking University, and finance may be his counterpart.
The so-called OTC is an over-the-counter transaction, which refers to the way in which the two parties bypass the exchange to privately reach a deal. In the early days of Bitcoin development, OTC was always the only way to trade. With the emergence of exchanges, the convenient way of combining allows ordinary investors to gradually reduce the demand for OTC.
But the OTC market has not disappeared, and its benefits are obvious. First, avoid price volatility caused by insufficient market depth of exchanges under large-value trading, and reduce slippage. Moreover, it can quickly complete large transactions. Second, the buyer and the seller determine the agreement price, and can also attach other trading conditions, and the privacy is strong.
Currently, Bitcoin's daily turnover on the exchange is under $10 billion, but in reality, OTC is the place that can really provide liquidity to big Bitcoin. In other words, it is impossible for a whale to trade on an exchange. The monitoring platform often explodes that tens of thousands of bitcoin address changes are proof of OTC activity and a barometer of activity.
In the traditional capital market, in the case of US stocks, over-the-counter trading based on a wide variety of financial instruments is far more than the trading volume of Nasdaq and NYSE. In the cryptocurrency industry, this trend has become more apparent. Previously, Circle Trade said in its official blog that its 2018 OTC transaction volume reached $24 billion, covering 36 cryptocurrencies and trading over 10,000 lots. Because it is not open, this is one of the few publicly disclosed data. Tabb experts in financial market research and strategy consulting firm have conservatively estimated that the bitcoin over-the-counter market is already three times the total transaction volume of the exchange.
In other words, OTC transactions are becoming the main trading method for large-scale trading practitioners such as financial institutions, market makers, miners, and exchanges. The traditional institutional investors expected by the market are entering the game, and OTC is often their first stop. As Tabb's judgment, 2018 is a year in which crypto assets move toward institutions. This trend can be seen in the competitive situation of the OTC.
Currently, OTC trading platforms are mainly distributed in the United States. In addition to Circle Trade, mainstream platforms include Coinbase, Cumberland, and Genesis Trading. At present, exchanges such as currency security and fire coins, which are familiar to Chinese users, have also launched OTC business in the past year.
Interestingly, OTC may be just an entry, appetizer, this kind of business is strongly related to finance, and it can be derived from many business forms such as fund custody. The imagination is very big. After all, as a leading financial model, cryptocurrency is in financial derivatives. The level of play is pitiful, and there is a huge room for growth compared to traditional finance.
Moreover, finance is also the hotspot of the cryptocurrency industry in 2019 and the direction of maturity development throughout the post-production period. When the mining industry is on the right track, and even the competition is heating up, Matrix may have a heavy responsibility.
However, OTC's non-public trading method is also considered to be the “best money laundering channel”, especially for offline OTC transactions, and the dollar-anchor stabilized currency plays an important role in the prosperity of the OTC business. Therefore, it is not necessarily whether Bitland and Wu Jihan can find a way to live. China prohibits the matching transaction business related to encryption assets, and compliance risk is the first difficulty. And like product experience, capital costs, exchange competition, and so on.
Between myths and jokes, there is a huge gap.