Earlier this month in Dubai, UAE, Bybit, one of the largest crypto exchanges by volume, announced the development of an accessible technical toolkit aiming to elevate investor literacy and decision making ability.
The platform’s Crypto Investment Analysis Toolkit, is designed for both beginners and seasoned investors. The platform offers an array of powerful ratios and data points for evaluating crypto projects beyond price analysis.
It offers a method of performing fundamental analysis on crypto projects so that investors can look behind the hype and actually access the true value of an investment. The Investment Analysis Toolkit offers different aspects of fundamental analysis, from different factors like economics, social influence, project health, and also provides a comprehensive approach to crypto investing.
In a conversation with edge/, Hao Yang, the head of financial products, Bybit talks about the product’s journey. Hao Yang is the global head of derivatives and financial products at Bybit. He is responsible for building one of the most sophisticated options platforms in the industry, designed to provide users with a seamless trading experience.
Today, he heads a team of passionate builders working with the latest trading technologies, from AI bots and structured products, to enhancing unified trading accounts, and new innovation on crypto-native derivatives. Hao is passionate about building a new, decentralised financial system.
From there he worked as a quantitative analyst specialising in electricity, and then he joined Ethereum in 2017.
Tell us about the core workings of Bybit, there are multiple crypto exchanges, and how did you work to build a differentiated product?
Bybit is a leader in the crypto space, using core concepts such as the Crypto Ark, and Web3 Gateway to establish itself as the go-to place for the financial revolution. From derivatives, to launch pads, to AI trading bots, to decentralised wallets, Bybit’s sleek, fast, system is user friendly for newcomers and professionals alike.
Indeed, we prioritise three key areas to differentiate ourselves:
· Speed and reliability: Our sophisticated matching engine effectively manages millions of orders every second, guaranteeing seamless trading even during moments of intense market activity.
· Trustworthiness: Our main wallets are tracked by independent platform Nansen in real time, and we release monthly proof-of-reserve reports detailing our holdings in extreme detail. We also have the latest KYC/AML methods in effect, alongside institution-grade custody solutions.
· Innovative Features: We go beyond basic trading by offering copy trading, which allows users to automatically follow experienced traders, and margin trading, which lets investors amplify their potential returns (and risks). We also have TradeGPT, an AI trading assistant with access to all Bybit’s real-time data. Also, we have the new program called Bybit Trader Year of 2024 which is a year-long crypto education program so people can benefit from the opportunities in crypto.
What is the growth of crypto and blockchain do you anticipate in the Middle East?
Regarding the GCC specifically, as per a recent report, the crypto market is poised for significant growth, with a projected Compound Annual Growth Rate (CAGR) of 53.85 per cent from 2024 to 2032.
This growth is driven by various factors. Notably, government initiatives, such as the implementation of regulatory frameworks and the adoption of blockchain technology exemplified by initiatives like the UAE’s “Blockchain Strategy 2021,” play a pivotal role in fostering market stability and bolstering investor confidence.
Additionally, efforts to diversify the economy away from reliance on oil, coupled with investments in blockchain technology, are instrumental in modernising financial infrastructure and attracting investments. Moreover, the region’s tech-savvy population and increasing preference for digital payments further drive the adoption and expansion of cryptocurrencies.
Since the end of 2022 crypto markets have taken a big hit, how do you see that change in 2024?
While the crypto market experienced a significant correction in late 2022, several factors indicate potential for optimism in 2024. On the demand side, we have the new ETFs that have already attracted about $10 billion in flows since launch, and have recently seen about $500 million inflows per day, which is the equivalent to 10,200 bitcoins per day.
The daily issuance of new bitcoins from the blockchain is only 900 per day, and when the halving happens in April, issuance will be slashed to 450 bitcoins per day.
It doesn’t take a mathematician to figure out that we have the makings of a supply shock coming, and that’s before we even begin to factor in interest rate cuts, improved liquidity, China recovery and all the other macro factors that feed into Bitcoin’s price.
Additionally, open interest for Bitcoin on Bybit is currently $8.4 billion showing a strong bid at these prices from our traders. Add all that together and we have a very attractive set up for Bitcoin and digital assets as a whole this year.
Naturally, we advise investors use caution, appropriate risk management, and leave very large allocations to the professionals.
Tell us a little bit more on Bybit Crypto Investment Analysis Toolkit, and how was the product built? How does it work and what gives it the edge?
Our collection of strong data-driven insights, the Crypto Investment Research Toolkit, was created by polling our internal experts to find their personal approach to analysing the fundamentals of a crypto asset.
The Bybit Crypto Investment Analysis Toolkit, easily laid out via a free Google Sheet, is designed for both beginners and seasoned investors. It offers an array of powerful ratios and data points for evaluating crypto projects beyond mere price analysis.
This toolkit offers a method of performing Fundamental Analysis on crypto projects so investors can peer behind the hype and assess the true value of an investment leading to greater peace of mind and a higher quality portfolio.
Building the Investment Analysis Toolkit required a team of experts across various disciplines:
· Financial Analysts: They provide domain expertise, ensuring the toolkit analyses relevant data and generates meaningful insights.
· Data Scientists: They build and maintain the complex data pipelines and machine learning algorithms that power the toolkit.
· Software Engineers: They develop the user interface and ensure the toolkit functions smoothly and seamlessly.
Our tech stack uses machine learning algorithms like RNNs and LSTM to process large data sets, identify patterns, and predict market trends. We constantly adapt to market changes and incorporate new data sources to ensure the toolkit’s accuracy and effectiveness.
How can the confluence of blockchain, fintech, and AI impact products like yours, and how do you keep evolving and growing?
The convergence of blockchain, fintech, and AI is opening exciting possibilities for the future of finance:
· Decentralised Finance (DeFi): Blockchain eliminates the need for intermediaries, enabling peer-to-peer lending, borrowing, and other financial services. Bybit actively explores DeFi integration, aiming to offer users more control and flexibility over their finances.
· Non-Fungible Tokens (NFTs): NFTs represent unique digital assets with ownership verified on the blockchain. Bybit sees potential in integrating NFTs into its platform, offering users access to a new asset class and fostering innovation in the digital art and collectibles space.
· AI-powered investment tools: AI can personalise investment recommendations, automate portfolio management, and provide real-time risk analysis. Bybit plans to leverage AI further to provide users with even more sophisticated and customised investment tools.
We see immense potential in integrating these technologies to offer smarter, more efficient, and personalised crypto experiences. Bybit actively researches and implements innovative solutions like AI-powered risk management and portfolio optimisation tools, constantly evolving and exceeding user expectations.
What are Bybit’s future plans?
Last year was a breakout year for us, including reaching over 20 million users, launching 93 new products, supporting 96 chains for deposits and withdrawals, and becoming the third largest derivatives exchange.
We increased transaction volume capacity threefold and achieved an uptime of 99% even amidst market volatility. We also have an ambitious goal of handling one million transactions per second by 2024.
Enhancements like the Unified Trading Account with newly added features like Perp Protect and customisable collateral assets underscored Bybit’s dedication to providing a robust and user-friendly trading environment.
In the realm of institutional services, Bybit demonstrated remarkable growth with a 182 per cent increase in institutional partnerships. By integrating spot trading into portfolio margin, Bybit has amplified capital efficiency for clients’ trading strategies.
The company also showcased its prowess in innovative trading solutions such as Copy Trading, AI-powered trading tools, and the introduction of new structured and wealth management products.
Finally, for the UAE, we have a partnership with the DMCC Crypto Centre. Last year, we created MENA’s largest hackathon in 2023, and are currently running a Web3 Academy, which runs like a university course in all things crypto.
Also, the DMCC will also play a key role in Bybit’s fifth “Let Web3 Happen in Dubai” series in February, delving into legal compliance, Decentralised Autonomous Organisations (DAOs), and Real World Assets (RWA).
