Phemex Exchange AMA Recap
Phemex is one of the fast-growing cryptocurrency derivative exchanges, which is founded by eight ex-Morgan Stanley executives.
Phemex currently offers Bitcoin, Ethereum, XRP, Litecoin, Tezos, Chainlink, and GOLD/USD perpetual contracts. In 2020, Phemex will begin to support traditional financial products such as S&P 500 stocks, stock indexes, interest rates, FOREX, commodities, metals, energy, and more.
This AMA will allow you to connect with Phemex‘s CEO, Jack Tao, who will answer the questions and listen to the feedback.
Hello everyone, my name is Jack Tao, I am the CEO and co-founder of Phemex. I worked for 11 years at Morgan Stanley in New York before deciding with a few partners to launch our own exchange. We’ve had all been invested in crypto for several years and our goal is to bring traditional finance’s standard to the cryptocurrency markets.
Questions from the CryptoRank team
#1 How did you come to the idea to create Phemex exchange?
Jack Tao: – We’ve had all been invested in crypto for several years and our goal is to bring traditional finance’s standard to the cryptocurrency markets. Phemex is a derivatives and spot exchange that aims to become the CME of the cryptocurrency industry. We offer 7 trading pairs (6 Cryptos and GOLD/USD) with up to x100 leverage and we want to introduce more innovative product to make Phemex an asset management platform for users to minimise their risk across multiple markets. BTW spot trading just launched today offically 🙂 good timing
#2 The majority of exchanges have already launched the ability to trade different derivatives for major cryptocurrencies, what makes Phemex different from other projects?
Jack Tao: – I would say the first difference is the team. The second one is our focus and a clear target to achieve the third one is our willingness to create a more open platform to everyone. This is why phemex becomes the fastest growing exchange in 2020.
CryptoRank community questions
#1 Wash trading which is happening in many exchanges, especially new exchange, because they cannot provide real volume and liquidity, this provides bad experience for traders. How can phemex avoid this problem and provide the best experience for believers who choose to use Phemex ?
Jack Tao: – We take these issues very seriously, which is why our trading volumes have been verified by multiple 3rd parties: CoinMarketCap, CoinGecko, Nomics, Tardis.dev.
#2 What is the advantage of having a company’s multisignature cold wallet where all the info is gathered via off line signature? Will the dependency of humans make the transactions slower?
Jack Tao: – No solution is perfect. we put safety first . for exchange, withdraw and deposit is less frequent than trading. we offered every 8 hours withdraw. Now since spot trading started, we now offer withdraw every hour. With the same security checks mentioned above
#3 Phemex is designed to be 10 times faster than traditional crypto platforms, It works with unmatched throughput of 300,000 TPS. Please don’t you think this TPS is too much, what’s the purpose behind this TPS and what are the advantages of having a high TPS.
Jack Tao: – Good question. high TPS avoid risk for traders on big market movement. our MM, Api and retail traders can quickly trade to avoid loss. this is essential for crypto exchanges i think.
#4 Phemex is designed to be 10 times faster than traditional crypto platforms, It works with unmatched throughput of 300,000 TPS. Only 2 exchange so far utilizes Level 3 data push confirmation and I know Phemex has plans for Planning to provide L3 market data on the exchange soon, can you explain more about this L3 market data and what advantage it will add to the phemex
Jack Tao: – Providing L3 is to be more transparent. It is harder to understand by beginners. It is also more risky to market makers since there are too many sharks 🙂
#5 Margin trading is hot trend now, not only crypto but also forex, stock, commodity, etc. So will Phemex have any plan to expand more trading pair?
Jack Tao: – Yes, we are always on the lookout for new products, but we are very careful with new assets, we want to make sure our users understand them well and can benefit from trading them in the long run
#6 Having your every question answered can make your trading experience delightful. It has become a standard for sizable exchange platforms to provide 24/7 customer support with knowledge people solving technical problems real-time.Can you tell us about Phemex Customer Support?
Jack Tao: – Out CS is 24 hours covers multiple languages. Hopefully we can have phone call open to some region soon.
#7 Do you have any plans to attract non-crypto investors to Phemex and how? What are the measures to increase awareness of Phemex in non-crypto space?
Jack Tao: – We are building a bridge between traditional and crypto world . Lots of my friend in wall street does not know or believe in cryptos. I gave up my greencard to start this business. My commitment is already a huge impact and bring a lot awareness. You know lots ppl in MS ny office are trading in phemex now. We have morganstanly MD wrote code for us to promote our Apis.
#8 How do you gather liquidity for assets listed on Phemex?
Jack Tao: – Provided by 3rd market makers. we are going to release a more comprehensive MM program to be more open and transparent. Phemex is top 8 derivative exchange. We will be much higher rank very soon 🙂
#9 Does Phemex exchange have insurance? Are Phemex exchange is financially capable to do that just in case of emergency? Like, If there’s an unnecessary incident that you need to refund the users of this platform.
Jack Tao: – Yes our funds are insured in the event of an unforeseeable event, we also have an insurance fund to make sure that all traders are compensated accordingly in times of high-volatility.