Meng Shu, CEO and Co-founder of Connect Blockchain DMCC shares his experiences of moving from traditional trading to Blockchain trading.
March 05, 2019 | Chris Georgiou
- The reduced regulatory paperwork is the biggest difference between traditional and Blockchain trading according to Meng.
- Selecting a reliable crypto exchange requires testing it with a bit of capital for liquidity
- For Blockchain technology to be widely adopted it will have to be retail driven
Meng Shu, CEO and Co-founder of Connect Blockchain DMCC, a Dubai-based proprietary trading exchange for crypto-commodities which trades $20 million worth of crypto daily, previously worked in traditional financial exchanges for over 20 years before making the leap into blockchain trading.
Most of the tools and principles of traditional finance can readily be applied to blockchain trading according to Meng with the company providing liquidity and market making services, including for Bitcoin.
“Although clearing and settlement is a greater challenge, the big difference between traditional and crypto, as I still remember, is when we signed the first contract between one of the crypto exchanges it was just one piece of paper compared to six to eight pages in a traditional exchange. The second big difference is regulation; a lot is about trusting what the exchange does in the sense of whether they are reliable.”
Majority owned and funded in fiat currency by parent company InBlockchain, one of the largest blockchain capital providers in China, Connect BlockChain DMCC operates as a proprietary trader of crypto-commodities and does not manage assets.
Trading strategy and products
Currently Connect Blockchain DMCC trades less than 10 pairs with Bitcoin and USDT the main pair, as well as eutherian (ETH). “We have mechanisms to go short as well in the market, as some of the exchanges provide for that. One of the major products we trade is actually futures contract and a perpetual contract with similar characteristics to go short.”
API and Algo are the principle software ...
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