Original | Odaily Planet Daily (@OdailyChina)
Author | Fu Ruo (@vincent31515173)
After the U.S. elections concluded with Trump’s victory, the crypto industry was greatly encouraged. Bitcoin once broke through 93,000 USDT, continuously setting new historical highs. The meme sector is also gaining momentum. However, high returns often come with high risks. How to confirm market trends and establish bull market trading strategies during such a booming market has become a top priority.
Coincidentally, during the Devcon event in Thailand, Odaily Planet Daily had the privilege of conducting an offline interview with Gate.io CBO Kevin Lee, engaging in an in-depth dialogue about industry development trends, the platform's strategic planning, and the future prospects of the crypto market.
The following is the content of this interview.
Odaily Planet Daily: What observations or highlights from the recent offline events are worth sharing? Have these insights given you a new understanding of future market trends?
Kevin: This year, we have not only participated in many offline events but have also hosted several ourselves. I feel that the current market atmosphere is very positive. Compared to before, my biggest impression is the difference between online and offline. Online may be dominated by meme voices, while offline allows for a more diverse ecosystem, showcasing many different innovative directions being explored. For example, the technical development of L1 and L2, payment platforms, and even Web3 games, many teams are diligently working on development.
Teams that may not have a strong online presence have shown excellent results offline, creating a vibrant atmosphere. This reminds me of the prosperous period of the last bull market; although the specific forms are different, the current environment is still full of hope.
During the on-site exchanges, everyone was very proactive. Although we did not focus on price issues during our discussions, the overall sentiment was optimistic based on the rhythm and atmosphere. Of course, there are still some uncertainties ahead. For instance, the policies of the new government after the U.S. presidential election may have a significant impact on the industry. Although the implementation of policies takes time and will not be fully realized in the short term, we need to continuously monitor the volatility that policies may bring. This is an important insight I gained from this offline event.
Odaily Planet Daily: Recently, Bitcoin has been continuously breaking new highs, and market sentiment is high. What do you think are the reasons for this market surge? Can this trend be sustained?
Kevin: This is a very good question. We have also observed that Gate.io's trading volume has been very high recently, especially with Bitcoin's performance being particularly outstanding. Bitcoin is undoubtedly the main driving force behind this market surge, with other assets mostly following Bitcoin's upward trend.
However, I believe there are certain risks involved. The fundamentals of different projects vary greatly, and we need to analyze the value sources of each project specifically, rather than simply assuming that if Bitcoin rises, other assets will necessarily continue to rise. This line of thinking may obscure some potential pitfalls.
Currently, there is indeed some speculative sentiment in the market, with many people seemingly holding the mindset of "invest today, and it will rise tomorrow." This irrational sentiment requires our special vigilance. Therefore, in our upcoming market analysis, we need to return to fundamentals and assess the long-term value of projects in a more rational way, rather than being swayed solely by market sentiment. This is actually a core point we often emphasize.
Odaily Planet Daily: In the face of a new round of market trends, in which areas does Gate.io plan to focus its efforts? Will there be activities aimed at new users or specific markets? What new measures has Gate.io taken in innovative products and user experience to better attract and retain users?
Kevin: As mentioned earlier, the current market volatility is very strong, so optimizing the depth of both the spot and contract markets is our top priority. For users, liquidity and depth are the most important, and we will continue to strive to improve these aspects.
As for trading-related activities, we have been conducting them and will continue to launch more incentive activities to support user trading, such as trading rebates and rewards. Users can follow our official website and information platforms for the latest activity updates.
In terms of innovative products and user experience, we recently launched an "Innovation Zone." This is a classification mechanism similar to the stock market, which separates relatively higher-risk, high-potential coins. Within this zone, users can trade newer coins, meeting their demand for asset diversity.
Odaily Planet Daily: Why launch the "Innovation Zone"?
Kevin: First of all, as a trading platform, our goal is to provide users with the richest selection of coins. At the same time, we must ensure the trading safety of projects. Therefore, the establishment of the "Innovation Zone" is to balance these two demands. On one hand, it satisfies users' interest in emerging assets, while on the other hand, it provides clear risk warnings, allowing users to be more rational and cautious when participating. This model is similar to the main board and growth enterprise board in the traditional stock market. We observe new projects in the "Innovation Zone," and once a project demonstrates stability and maturity, it can be moved to the main board for trading. This approach protects users' interests and benefits the long-term development of projects.
Odaily Planet Daily: How is the performance of the Innovation Zone?
Kevin: Currently, the "Innovation Zone" is very popular, with significant trading volume. This classification model distinguishes us from other trading platforms, which may directly list all coins on the main board, leading to some projects being quickly eliminated by the market. Our gradual transition approach not only enhances project stability but also protects users' interests. This is a method we highly endorse. In the future, we will continue to optimize this mechanism and, based on it, launch more new features to help users better participate in the market while providing projects with broader development space.
Odaily Planet Daily: In the current bull market, meme coins are highly sought after. How does Gate.io attract users while balancing hot projects with long-term value and ensuring platform security and user interests?
Kevin: At Gate.io, we always adhere to strict listing standards and do not blindly act aggressively due to market trends. Meme coins have indeed performed well in this bull market, but we focus more on the long-term value of projects and user needs.
Our coin listing evaluation criteria include team background, technical strength, community support, and trading volume potential, among other dimensions. Moreover, the listing process is not "over once listed," but rather spans the entire project lifecycle. After listing, we continuously monitor trading data, paying special attention to abnormal fluctuations in the short term. If issues are found, we will immediately intervene to investigate, ensuring platform security and user interests.
At the same time, as a platform aiming to be the "Gateway to Crypto," we hope to provide users with opportunities to access diverse coins, but we will also conduct in-depth due diligence on project parties to ensure the safety of user assets. To this end, we have specifically established the Innovation Zone, allowing users to choose to engage with newer but riskier coins and decide for themselves whether to participate.
Of course, we cannot predict which projects will have the greatest potential, but our responsibility is to provide filtered options and create a safe and reliable investment environment for users. It is worth mentioning that due to the numerous listing projects, some due diligence processes cannot be fully automated, so we are very grateful for the patience of each project party during the process and for their trust and support.
Odaily Planet Daily: In your view, what is the core value of meme coins? How does Gate.io determine whether a meme coin is worth listing?
Kevin: The core of meme coins lies in cultural consensus. True memes resonate from within, allowing people from different backgrounds and cultures to connect, much like Stephen Chow's movies, which can make people from different regions smile in understanding. This cultural connection is the charm of memes.
However, we also find that many projects in the current market are "forcibly creating" memes, such as randomly drawing an animal avatar or coming up with a seemingly funny name and claiming it as a meme coin. Projects without intrinsic consensus support, in my opinion, are unsustainable.
When determining whether a meme coin is worth listing, we consider its community foundation, market demand, and whether it can genuinely evoke widespread resonance among users, rather than just being a short-term speculative hotspot.
The future development of meme coins will certainly diverge. Some projects may gradually be eliminated by the market due to a lack of actual value, but those that truly possess cultural consensus and can bring joy to users will still have great potential.
Gate.io will continue to pay attention to such projects, but our listing standards will not change due to market trends. We hope to provide users with truly valuable projects through strict selection while promoting the healthy development of the industry.
Odaily Planet Daily: What new progress has Gate.io made recently in business cooperation and global layout? What is the future development direction?
Kevin: We have made significant progress in business cooperation and global layout. This year, we established strategic partnerships with the Abu Dhabi Blockchain Centre and the TON ecosystem, investing in promising innovative projects through Gate Ventures. These investments are not limited to the Web3 industry but will also cover adjacent sectors, such as hardware and infrastructure networks. We hope to promote industry development through comprehensive investment.
Additionally, the Middle East is a key area for our future focus. The Middle East, especially the UAE, is becoming a global hub for talent and capital due to its open regulatory policies and advantageous geographical location. We have already established a strong foundation in the Asian market, and the Middle East will serve as a bridge for us to expand into European and American markets, facilitating our global layout.
Strategically, we will continue to optimize the depth and breadth of the market, enhancing liquidity in both the spot and contract markets. At the same time, we will maintain close communication with regulatory agencies in various regions to ensure that the platform can meet the latest regulatory requirements while maintaining compliance and flexibility.
Finally, the user community remains at the core of our development. In the future, we will continue to hold more offline events to establish more direct connections with users, listen to their feedback, and better meet their needs, driving the continuous progress and innovative development of Gate.io.
Odaily Planet Daily: How do you view the integration of the crypto industry with traditional finance? What breakthroughs and benefits might this integration bring in the future?
Kevin: The integration potential between the crypto industry and traditional finance is enormous, and it can be viewed from several aspects:
1. Integration as an Investment Tool
Currently, the application of the crypto industry within the traditional financial system mainly serves as an investment tool, such as the launch of Bitcoin ETFs. The significance of these products lies in introducing crypto assets into traditional investment portfolios, especially in retirement accounts (like the 401k plans in the U.S.), which is crucial for the long-term growth of the industry. However, traditional finance remains relatively conservative in its actions and has not entered the crypto-native market on a large scale. This delay in capital inflow has also led to a lack of sufficient endogenous momentum within the crypto industry itself.
2. Integration at the Technical Level
Traditional financial institutions have shown great interest in blockchain technology. For example, J.P. Morgan has built its own blockchain network to enhance trading liquidity and efficiency. This indicates that, although the market size of crypto assets has not yet reached a core position in traditional finance, blockchain technology has become an important tool for improving the quality of financial services. Innovations at this level are gradually changing the way traditional finance operates.
3. Future Breakthroughs and Benefits:
In the future, as the technology of the crypto industry further integrates with the tools of traditional finance, the following breakthroughs may occur:
● Cross-Asset Utilization: Investors can use traditional financial assets like stocks and bonds as collateral to borrow crypto assets for investment, and vice versa. This bidirectional integration can enhance market liquidity, lower trading thresholds, and create higher capital utilization rates.
● Facilitation of Cross-Border Investments: Utilizing blockchain technology, the crypto industry can significantly reduce the procedures and costs associated with cross-border investments. For instance, investors can directly purchase global stocks or bonds using crypto assets, greatly improving investment efficiency.
● Emergence of New Ecosystems: The true breakthroughs in the industry may come from the "unknown." Just like the sudden explosion of NFTs in 2020, the next growth point may arise from technologies or applications that have not yet been widely discussed. This uncertainty is a driving force for continuous innovation in the industry.
Odaily Planet Daily: In the face of potential market volatility, what advice do you have for users, especially ordinary investors?
Kevin: For this question, I would like to approach it from a broader perspective, not just from the standpoint of the crypto industry, but also combining my years of experience in traditional finance to provide some universally applicable advice:
1. Assess Risk Tolerance
First, whether it’s crypto investment or other assets, everyone needs to clarify their risk tolerance. Especially in the current highly volatile market, any long or short operations need to be approached with caution. If you cannot bear significant risks, it’s best to avoid high-leverage operations or refrain from excessive participation in short-term trading.
2. Ensure Reasonable Fund Allocation
Investment funds should be your "spare money," meaning they should not affect your daily life or hinder your ability to cope with unexpected expenses. If your investment funds come from essential living expenses, a significant market fluctuation may force you to sell assets at a low point, putting you in a dilemma.
3. Be Aware of the Unique Nature of the Crypto Market
The crypto market operates 24/7, which means that while you are sleeping, the market is still running, and any sudden events can occur. Therefore, you must be psychologically prepared or make good use of some automated tools to manage your investments.
4. Utilize Risk Management Tools Effectively
There are many excellent investment tools available on Gate.io, such as Stop Loss and Limit Order. These tools can help you control risks during significant market fluctuations, avoiding frequent operations due to excessive anxiety, and allowing you to sleep more soundly. Additionally, portfolio diversification is also a very effective method to help spread risks across different asset classes.
5. Learn and Understand More
If you are a beginner, it is advisable to spend more time understanding market rules and how to use various tools. Some tools may seem complex, but once you learn to use them, they can protect your funds at critical moments. For example, learning how to set reasonable stop-loss points or how to adjust leverage ratios can greatly enhance your investment stability.
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