Bitrue, the Top 50 Cryptocurrency Exchange for CoinMarketCap, is launched An investment management project consisting of three vehicles of stake, yield farming and quantitative trading.
The project launched in conjunction with a new asset management token, BMX. This will be different from BTrue Coin (BTR), in which the initial distribution of BMX will be done via airdrop to BTR holders. There will be buybacks at least thrice per quarter, with other disbursements going to be through Yield Farming Pool only. The token is entirely owned by the community, with no allocation to the team or investors.
If BTR is a governance token, BMX can be seen as a reward token. Despite being separated, the two are still intertwined. For example, BTR will define the governance of the BMX token.
This is a neat project by Exchange, and I was curious to know more about it. I interviewed Adam O’Neill, Chief Marketing Officer, to get answers to a few things I was wondering.
CoinJournal: As part of your announcement, you state that “By using BMX as a reward token we will eliminate the problems currently present in staking and DeFi rewards programs such as the risk of theft” – could you elaborate on this? Can tell?
Adam O’Neill, Chief Marketing OfficerExisting DeFi protocols typically rely on synthetic assets, which investors must manually reinvest on their own.
Most of the time, this involves users transferring funds from one platform to another, which can be dangerous as it leaves a lot of open windows for potential scammers and hijackers. Earlier, many cases related to fake websites and Rag Pul have come to the fore.
This cannot possibly happen with BMAX, as investments within the Bitrue platform are fully automated.
Chief Justice: Why did you feel the need to issue Bmax; Have you considered trying to offer similar benefits, such as rewards, through the already existing BTR token?
aonIn fact, BTR used to be the reward token for most yield farms on our platform – and yes, we have considered bringing this asset management mechanism to BTR instead. However, after some careful consideration, we decided that we wanted the BTR to be deflationary in nature, so we would like to limit its prevalence.
Chief Justice: One consequence of the issuance of BMX tokens is that BTR will no longer be distributed frequently in the yield farming pool. This will likely affect the circulating supply, but do you expect any other effects?
aon: Yes, with less BTR in circulation, it will gradually increase in price, as it is still a governance token of Bitrue. The BTR token does not lose any utility with the emergence of BMX, as users are still using it for voting and trading, while its newly designed deflation mechanism will make it more valuable.
Chief Justice: The crypto market has struggled this year, but BTR has outperformed. In fact, BTR is close to 50% YTD – what are the reasons for this?
aon: BTR is a low-value CEX token compared to its peers. You see, Bitrue is one such exchange that is constantly innovating to make it the best place for both trading and investing. Given the number of trading pairs listed on our exchange daily and new feature upgrades every once in a while, we believe the crypto community is finally starting to open its eyes to the potential that we hold in the long run. Present at Bitru.
CJ: What would you say are the main reasons people use Bitru over competitors?
aonFor starters, although Bitrue is considered one of the big players in the industry, our exchange still has a lot of room to grow compared to other exchanges. The team at Bitrue is relatively small compared to our competitors, but at the same time, each of our employees has a sense of belonging.
Unlike many other companies where employees are governed by their pay slips, the people of Bitru are willing to push above and beyond to contribute to the crypto society. This is reflected in our actions as well, as we look forward to hearing feedback from the community, and use it to improve our products.
Excluding core values, Bitru currently offers one of the highest APY for our produce farms, lots of which are over 100%. We have the largest collection of supported tokens, from meme tokens to blue chip altcoins.
Chief Justice: How do you think Bitrue will perform in the crypto bear market in the long run?
aon, Actually, Bitrue was first launched in 2018 during a bear market. We tread carefully when it comes to trading strategy and expansion, which allows us to minimize the risks of a bear market. We are well aware that a bear market does sometimes happen, so we have been very strict on our bookkeeping. In fact, we would like to identify ourselves as prudent compared to our competitors.
Chief Justice: The recent inflation figures from the US are stark. Do you think bitcoin (or crypto) can be used as a hedge against it, or do you doubt the inflation-hedge narrative?
aonBitcoin has always been designed as the ultimate hedge against inflation: unlike fiat currencies, it is virtually limited in supply. Despite this, BTC can only exist as a part of a larger crypto ecosystem, where other altcoins act as utility currencies.
As the market is very new, speculation is rampant, which causes crypto to behave similarly to a risky asset such as a stock. It will take some time before crypto can truly reflect its intrinsic value. Given the current geo-political situation, I am sure the time will come very soon. At the moment, refugees from war-torn countries are already preferring crypto as a store of value for local currencies.
Chief Justice: Lightpaper notes that auto-reinvestment will naturally cover the opportunity cost that most investors are concerned about, so the risk of temporary losses is minimal. Can you please elaborate a bit more on how this risk has been mitigated?
aon: It cannot be ruled out that providing liquidity can cause permanent loss to the users. In the event such losses occur at our Produce Farm Hub, the gains from other investment vehicles will act as a hedge to cover these losses. Essentially, BMAX is offering investors the opportunity to have a fully hedged portfolio that can withstand the losses from a single investment vehicle.