DueDEX is a professional derivatives trading platform for encrypted digital currency assets. DueDEX was established in Jan. 2019 and has launched branch offices in the USA, Cyprus, Hong Kong, Beijing, and the Philippines. Developed and operated by an international professional team both in finance and technology, DueDEX provides derivatives trading services for global digital asset investors, with a matching engine 10 times faster than the industry norm.
The DueDEX founding team is made up of start-up veterans, tech geniuses, crypto financial professionals, and trading talents from CitiBank, Chase and other Fortune 500 companies.
Hey Bo. I appreciate you taking the time to join me today. Can you tell us more about yourself and DueDEX?
Absolutely. First of all, thank you for having me on!
DueDEX is a Crypto derivatives exchange. DueDEX = Due + Derivatives + Exchange. Due means appropriate and fair.
Given the fact that current crypto derivatives exchanges have many issues like overloading, platforms trading against their customers, and lack of customer service support, we at DueDEX want to create a fair platform for derivatives trading.
By being fair, we mean:
- DueDEX has no internal trading desk
- DueDEX offers no exchange token that’s subject to manipulation
- DueDEX provides end-to-end cold wallet solution and there’s no hot wallet involved. There is no exposure to customer funds on the internet
- 24/7 customer service with multi-lingual multi-channel support
On the other hand, the traditional financial system is a closed, segregated system lacking access for most of the people. For example, it’s very hard for an average Indian person to trade with Mexican assets because of difficulties with opening accounts and foreign exchange control.
Weintend to make DueDEX an open financial system by empowering people to access and trade the best financial assets whenever and wherever, tearing down the financial national boundary, and liberalizing the global financial system.
After the successful exit, I started looking into new ideas. A friend of mine introduced me to bitcoin in 2013, when the price of about $500. I bought one and sold it at $600 one week after. I remember thinking, holy cow, this thing is for real! Not just some fad cherished by entrepreneurs.
I then did a lot of research and feel like this is the space I want to be in for my next startup. The question we were asking at that time is, “what’s the next Bitcoin?”
Similar to web2.0 being the programmable internet, we started looking for programmable bitcoin and found Ethereum with smart contracts being close to what we were looking for.
Not only was Ethereum a good investment vehicle but also it trail-blazed a new type of fundraising with a comprehensive legal framework.
In 2014 we started a project called Factom, a public blockchain for proof of existence. Technically we designed everything from scratch, and legally and financially we modeled everything after Ethereum. Factom is pretty successful and still lives going strong.
In 2016 I moved back to Beijing intending to commercialize blockchain technologies. One thing we did is to create a blockchain-based supply chain finance system to help small-medium-enterprises (SME) apply for bank loans. Enterprise blockchain was promising but too early to make a dent. Then we pivoted to dAPP when Ethereum was more mature. We raised a pretty healthy fund to start a prediction market called Delphy. It’s similar to Augur but focused more on crypto and sports in China market.
Westarted working on DueDEX at the beginning of this year with the understanding that there’s quite a bit of synergy between prediction market and futures market, technology-wise and product-wise, for example, security, wallets, part of matching engine, etc. I’ll talk more about this later.
What does a typical day look like for you working with DueDEX?
Usually, my day is involved with many meetings, starting with daily standup meetings with product & tech, and operation team. Operating DueDEX is 24*7 service and there’ll always be something coming up somewhere, and I need to make sure we have the right process to deal with it.
I’m trying to spend as much time as possible talking with potential influencers and existing customers, getting their feedback and ensure they are happy traders on DueDEX.
Where are the DueDEX team members based out of? How do they normally collaborate with each other?
DueDEX is a distributed team with members based in Hong Kong, Beijing, USA, Cyprus, and the Philippines. We use several tools for communication, depending on the task, including Wechat, Telegram, Skype, Microsoft Teams, Figma, etc.
Besides myself, we have two co-founders, one is tech genius who is responsible for infrastructure, trading system, system admin, security, partially product management and user growth hacking.
The other is of a financial expert who has extensive experience in both Wall Street and China, including quant strategy, risk management, derivative pricing, etc. He’s responsible for all things financial engineering related.
Together we make a great team. Of course, we’re always hiring and still looking for a talented marketing executive. If you consider yourself a crypto insider and love to serve other traders, this is a great opportunity to do something and make a difference. You can contact us through twitter or email hr@DueDEX.com
How did the idea for DueDEX originate and what inspired you to start DueDEX?
We’ve been working on a prediction market for quite some time. It is great in that you can create a prediction market for almost anything interesting.
However, there’s a limit in the prediction market as well. On one hand, it is a non-standard contract, lack of liquidity and leverage; on the other hand, it is limited in the mechanism of monetizing or hedging your belief. All of these restrict the prediction market from reaching a mass audience.
The futures market is, in a sense, quite the opposite: standard contract with built-in leverage and available liquidity, and huge potential to help realize PnL. We would love to combine the prediction market and the futures market. When you have a strong belief, we can provide a tool to help you realize your potential.
What do you consider your biggest accomplishments with DueDEX so far?
We started with a small team focusing on getting the exchange up & running. To achieve that, everyone has been working very hard and wearing many different hats. The team has continued to expand with our focus shifting to growth, user acquisition, and operation, a different ball game. We expect the same result.
I would say, the biggest selling point is the DueDEX team. This is a team with character. If you look at how crypto futures exchanges make money, it usually consists of transaction fees, market-making profits, and margin lending profits. Among them, market making fee may be the biggest revenue source, and DueDEX will forego that allowing the community to do market making through transparent rebates.
It’s all about being fair to our customers and creating that level playing field for traders.
There is no internal trading desk, so no environment to create a conflict of interest ahead of customers. It’s a worry-free exchange with no backstabbing traders, no front-running, no hidden fees and nobody with special treatment. It’s transparent providing a fair platform for traders to operate. We put trader first.
This is also a team with mission and ideals, a bunch of true bitcoin believers. We love to help liberalize the existing global financial system by building truly open and accessible markets. DueDEX aims to remove national financial boundaries and overcome foreign exchange barriers. DueDEX is the team you can trust to deliver the fairest trading platform for users.
What do you think is the biggest problem DueDEX will solve that no other crypto derivatives exchange is solving, and why is the problem important to solve?
The biggest challenge facing every centralized crypto exchange is how to build TRUST with its customers. Ideally, we should utilize the blockchain to build a trust-less crypto futures exchange.
We did some experiments by building a decentralized crypto future exchange on EOS last year and found some critical issues need to be resolved first. For example, unlike spot exchange, timing is critical in derivatives exchange where liquidation and ADL have to happen on time, and risk is much higher where the result could be a zero-sum game rather than more or less one.
Blockchain is good at many things like trustlessness but not necessarily at TIMING. As it becomes more mature and transaction more affordable, we’d love to incorporate blockchain into DueDEX infrastructure, from asset custody to proof of reserve, on-chain transactions, and auditing.
The short history of crypto exchanges is dotted with security disasters. We’ve been in crypto space since 2013 with experience ranging from public blockchain, to enterprise blockchain, dAPP, and decentralized exchanges and we are well aware that security has to be paramount for an exchange like DueDEX.
Fortunately, we’ve developed and accumulated, over the years, mature technologies, toolkits, procedures and knowhow to secure user’s funds. For example, DueDEX is utilizing a multi-signature, end-to-end cold wallet solution. When a deposit is made in DueDEX, it’s straight into a cold wallet. There’s no hot wallet used and no exposure of user’s funds on the internet.
In the meantime, any crypto token withdrawal requires multiple layers of manual inspection with a minimum of two DueDEX founders being directly involved in this process.
Ofcourse, the security is ever adapting to modern threats and we’ll always be vigilant to explore new measures and take action accordingly including bug bounty, 3rd party auditing, custodian services, and insurance, etc.
The cryptocurrency world has seen extraordinary growth in 2017 and 2018, what have you learned in the last year that will inform DueDEX in the years ahead?
The pace is much faster in the crypto space than the classic internet sphere. It’s well known that one day in crypto feels like one year outside! The explosive growth and crash in 2017 and 2018 are very similar to what happened during 2013–2015. The business cycle of boom and bust in crypto is much faster and more dashing.
We at DueDEX are well prepared. On the tech and product front, DueDEX can scale with tremendous pressure from user demand. On the capital front, DueDEX will always have enough cash and cryptocurrency to survive the worse crypto downturn and disaster recovery.
For all crypto derivatives exchanges like DueDEX and BitMEX, we’re partners and competitors at the same time. We can work together to benefit the entire crypto industry by improving security technology and defending crypto space, and working with global authorities for more friendly compliance policy.
DueDEX is built to solve the nasty problems crypto traders are facing every day. If you are tired of overloading and downtime whenever markets fluctuate, come join DueDEX; If you’re scared of being treated unfairly by exchanges, come join DueDEX; If you feel like you’re trading against your platform rather than your peer traders, come join DueDEX; If you want a peace-of-mind with your fund in exchange, come join DueDEX; If you want to be able to get your questions answered quickly and your problems solved fast, come join DueDEX!
Traders are smart and we trust them to make intelligent decisions when choosing a better and more fitting exchange. DueDEX is right here when traders decide to come home!
Looking beyond the existing crypto traders, there’ll be a lot of people, particularly those traditional casual stock traders, who would love to get into crypto space. We have to do a good job educating them and helping facilitate the transition. It takes collective effort to build a more prosperous crypto trader community.
Does DueDEX have plans to launch more perpetual swap contracts this year?
On the technology and financial engineering front, DueDEX is a fast, secure and scalable platform supporting linear, inverse and Quanto contracts from the get-go. It’s fairly easy for DueDEX to launch a new type of contract, whether it’s the perpetual swap, futures, FX, commodities or indices futures. We have the right procedures in place to move forward quickly.
We do plan to add more contract types shortly, depending on our customer’s demand, market conditions, and liquidity supply, etc. We’ll make it happen as long as the time is right.
What do you feel is the biggest challenge or obstacle DueDEX has ahead of them? How do you plan to tackle that challenge?
Cold-starting DueDEX is like curating a royal garden. It takes tremendous time and effort, hearts and minds to make it happen.
Fortunately, we have a great team behind DueDEX, a team of character and principle, dedicated to make DueDEX a fair trading platform for everyone; a team with mission and idealism in sync with what Bitcoin represents; and a team with love and passion, striving to serve DueDEX traders.
The crypto markets are rapidly changing the world continuing to shape future industries with blockchain technology. Short term we see many emerging trends. Some will shape tomorrow’s world while others will be nothing more than a passing craze.
What is one thing you would change about cryptocurrency that would have a very positive long term result?
If there’s one thing that I can change to make a long-lasting positive effect on cryptocurrency it would be adoption through EDUCATION.
Great education & awareness can accelerate crypto tech and product development, build a more prosperous community, create better related policy and foster inter-government cooperation.
When DueDEX accelerates, we are committed to investing in cryptocurrency/blockchain education to better future generations.
Blockchain is the foundation and infrastructure of cryptocurrency, and much more. It will optimize and revolutionize many business use cases like supply chain management and finance, title insurance in real estate and finance, and many others.
More importantly, we envision there will be a decentralized world built upon inter-connected blockchains that are parallel to and connected with the current centralized world. In this decentralized world, we can enjoy similar tools, products, and services we are using in the current centralized world without censorship. By creating more open and accessible markets, we look to empower those people across the globe traditionally excluded from participation.
DueDEX will be actively participating in the building of the new decentralized worlds and contribute to the next generation of the open, fair and secure financial system with products such as decentralized crypto exchanges, custodian services, finance, and auditing.
Somewhat off topic, but what are some things you do outside of crypto that keep your mind sharp and keep you focused on the goals for the day?
Besides working on DueDEX, I am passionate about sports. I’m a huge fan of New England Patriots and NFL, and Red Sox and MLB, and watching them compete every day provide extra motivation and a new perspective to help overcome ups and downs in startup life. I also enjoy playing basketball, hiking, and jogging.
We believe in fair trading so we build DueDEX. We believe in openness in the financial system so we will launch digital assets with collateral of cryptocurrency on DueDEX.
Come check out DueDEX and we will make you a happy trader!
If people want to check out DueDEX and stay updated on any news or just to talk to some of the team members for any inquiries or support, where should they go?