Digital assets and cryptocurrencies are the source of continuous technological and applied innovations. Here, people can easily consider themselves engaged in tech when in fact many models come from finance. This is especially true for exchange platforms, the core of this industry that has a systematic impact on it, defines asset prices, and manages risks. We should view exchanges from a financial perspective more often. Meanwhile, cryptocurrency industry participants can learn from the experience of traditional financial markets, make model innovations under the premise of controllable risks, and create a new generation of cryptocurrency exchanges.
The major innovation of cryptocurrency exchanges is the B2C operation model (i.e., exchange to users). Unlike the B2B2C model of traditional exchanges, its technical foundation is the popularization of mobile Internet, its target user group is the active and curious youth, and its main brand promotion and user operation tools are social media and communities. Its success has been proved, but the limitations are obvious, too.
First, their users are both global and local. User needs are very diverse. They are structurally incompatible with the simple user base expansion and user operation model where exchange is the main entity. Actually, according to 3AExchange (3Aex.com), mainstream exchanges will soon need to redirect some resources to B2B2C and use agent channels to expand the user base.
Second, cryptocurrencies are complex financial products. Other than some young people who can collect information actively and are highly receptive to new things, most people need intermediaries for investor education, transaction assistance, and other services. Simply speaking, their conversion model requires trusting some person first and then trusting the product that person recommends.
Therefore, the B2B2C model will be the main battlefield for the new generation of exchanges, because reliance only on fee rebates in referral programs is very primitive. The main innovation of 3AExchange (3Aex.com) is that it brings the brokerage model of traditional finance to the crypto industry. It is called We Broker. “We” stands for the low threshold and many influencers, communities, and even individual investors who can participate. “Broker” stands for the desire to empower the participants, to free them from the model where they rely solely on the fee income and to offer a low-threshold, low-risk, simple, convenient, and easy diversified income like that of traditional brokerages. What 3AExchange (3Aex.com) wants to do differs from tier 1 exchanges. It doesn’t need to be an all-in-one exchange. It enables users. Its model is Exchange as a Service (EaaS). 3AExchange (3Aex.com) wants to make other parts of the ecosystem strong.
To this respect, 3AExchange (3Aex.com) developed an exclusive, powerful, and easy-to-use back-end management system for We Brokers. One of its core functions is order flow management. It allows members to manage the order flow of users and get the order and position management income like market makers, even if it they have no capital and risk management capabilities of market makers and are not professional institutional investors. 3AExchange (3Aex.com) performed a preliminary statistical analysis of data on volatility of cryptocurrencies and leverage ratio of their derivatives. User funds and transaction volume being equal, order flow management allows members to earn an income that is 4 to 8 times higher than just the transaction fee income.
See this example. The copy trading model is trending in the industry. It has a consistent and attractive logic: copy the trading ability of professional traders and make profit. The problem is, there are very few traders who are consistently profitable, and they manage huge funds. If you create a fund and become a professional fund manager, how can you be a copy trader? If we think in the opposite direction, it’s hard to earn money, but it’s very easy to lose it. Order flow management can serve as a tool similar to reverse copy trading that helps find users and orders that lose money and do the opposite trades.
The low risk and high income of We Broker’s model will bring a strong driving force and great incentives to those intermediary institutions, push them to attract more users and bring crypto to more people, just like the market economy that is great in that it lets people pursue their own interests and meets the needs of users with the results of this pursuit. Historically, the most effective evangelists are not the minority of idealists, but the majority of ordinary people who are bustling for the benefit.
Meanwhile, thanks to high profits, members can have the capital and ability to provide users with better personalized services. This creates a virtuous cycle: higher profits - better services - more users. For example, influencers can create better content to attract users, communities can offer more activities to retain users, etc.
To sum up, the model of 3AExchange(3Aex.com) truly empowers the B inside B2B2C. It offers this segment a brand-new income and risk control mechanism and model, and encourages it to attract new users and serve them in a better, more diverse and personalized way, thus achieving what exchanges cannot do or cannot do better.
Company Name: 3AEX Group Limited
Contact Person: Ethan Tao
Email: Send Email
Address:OMC Chambers, Wickhams Cay 1, Road Town
Country: Virgin Islands (British)