Written by: Peng Yong
Bitget was founded in the bear market on September 12, 2018. Unfortunately, the entire industry was in despair at the time, and the crypto market continued to fall until January 2019, with Bitcoin falling to $3,200.
Bitget did not fall because of the bear market. Instead, it rose to the challenge, built in the bear market, maintained firm confidence in the industry, and continued to innovate and optimize services. Bitget successfully attracted a large number of users by continuously launching new features and improving user experience.
In 2022, the collapse of FTX once again caused the market to lose confidence, and the crypto market entered a cold winter. This year, the crypto industry not only experienced large-scale bankruptcies, but also experienced the United States starting to raise interest rates this year. Subsequently, the US SEC and other departments successively sued and planned to sue crypto trading platforms such as Coinbase, Binance.US and Bittrex. The tightening of supervision and inspection has intensified the bear market in the crypto market, affected investors' confidence, and CEX generally faced the dilemma of declining trading volume.
Surprisingly, Bitget did not continue to decline due to the impact of the crypto winter in 2022 and the US interest rate hike. Instead, it accelerated its growth and became the fastest growing cryptocurrency trading platform in 2022. According to a report released by Boston Consulting Group in July 2022, Bitget's total trading volume in 2022 increased by 300%, making it the third largest crypto derivatives exchange in the world.
Bitget is on the rise
Bitget has been running wild in terms of macro data growth. Data from DefiLlama.com from April to May this year showed that the asset sizes of top CEXs have been declining and stagnant. Bitget's data rebounded rapidly in late May and early June, achieving positive growth, with monthly capital inflows of US$1.25 billion, far exceeding the growth elasticity of other CEX asset sizes.
According to the second quarter 2024 data released by CryptoRank.io, Binance ranked first with $908 million in inflows. Bitfinex and Bitget ranked second and third with $709 million and $561 million, respectively. In Coingecko's monthly visit ranking, Binance continued to lead with 65.5 million visits, and Bitget ranked third, showing growth in both user activity and capital inflows.
Contract Market
Competition in the contract market has begun to undergo significant changes. Bitget has maintained rapid growth since last year, and Binance, OKX, Bybit, etc. have performed relatively stably in the derivatives market. Data from The Block shows that Bitget has been continuously increasing its market share in derivatives since 2022.
On June 7, The Block recently published the Bitcoin open interest of each trading platform in the form of a chart. According to the data, Binance's Bitcoin open interest is $8.5 billion, with a market share of 27%; Bitget ranks second, with Bitcoin open interest exceeding $8.16 billion, accounting for 26% of the total market; followed closely by Bybit, with Bitcoin open interest of $5.48 billion, accounting for 17.51% of the market share; and OKX, with Bitcoin open interest of $3.03 billion, accounting for 10.77% of the market share. The current market share of derivatives is basically occupied by these platforms.
Bitget has maintained explosive growth since last year. In the Bitcoin futures open interest market, Bitget's market share has rapidly increased from 9.7% a year ago to 26% on June 7 this year, an increase of 168%.
Binance's contract market share has dropped from 36% on June 7, 2023 to 27% this year, a 9 percentage point drop, equivalent to a 25% drop (drop = (initial market share - current market share) / initial market share * 100%, specific calculation: (36 - 27) / 36 * 100% = 25%). As one of the important businesses of the exchange, Binance faces fierce competition and a continuous loss of market share in the contract market, but it still maintains its leading position.
The market share of Bybit and OKX has changed little. On June 7 last year, Bybit and OKX had market shares of 19.13% and 12.03% respectively. Compared with last year's data, Bybit fell by 1.5% and OKX fell by 1.26%. Bitget's growth was the most eye-catching, with its market share increasing from 9.7% on June 7 last year to 26%.
Spot Market
Bitget's growth is not limited to derivatives trading. Bitget also performed well in the spot trading field. Bitget restarted the spot market in 2023, and its trading volume increased by 94% in a downturn. In addition, in terms of listing, 355 new currencies were launched in 2023, an increase of 46% year-on-year compared with 2022. Bitget's success is attributed to its innovative trading products, efficient marketing strategies and keen grasp of user needs.
Although Bitget was founded 6 years ago, it has been expanding into the derivatives market. It entered the spot market very late - it restarted the spot market in 2023, but in just one year, its 24-hour spot trading volume reached US$1,400,610,407 (data on July 2, 2024, source CoinMarketcap), quickly climbing to the fifth place and becoming one of the fastest growing exchanges. Compared with Kraken, which was founded in 2011, and Bitfinex, which was founded in 2012, Bitget's spot market performance is particularly outstanding, which highlights its strong market adaptability and competitiveness. Other leading exchanges such as Binance, Bybit, HTX (Huobi), Coinbase and Gate.io also performed well, but Bitget's rapid growth is particularly eye-catching.
Bitget's outstanding performance in the spot market is attributed to providing more innovative trading strategies for users and professional traders: 1) Spot trading copy, which allows users to choose trustworthy professional traders in the spot copy market and follow their trading strategies to gain profits. 2) Contract trading copy, which is consistent with spot copy, follows trustworthy traders to copy. 3) AI strategy trading copy, which uses artificial intelligence technology to analyze market data and trading patterns, automatically generate and execute optimal trading strategies, and help users achieve intelligent and efficient trading in the market.
Bitget's success shows that even if a company enters the spot market late, it can still quickly rise in the highly competitive cryptocurrency exchange market and become an important player in the industry through effective trading innovation strategies and strong execution capabilities.
Bitget's Security Measures
As a top trading platform with 25 million users, Bitget always puts security in the most important position. Since its establishment, Bitget has been operating safely for six years, and there has never been any incident of user information leakage or platform asset theft. Behind its excellent security record are multiple safeguards such as strict security storage, internal control system, risk control system, asset transparency and protection fund.
1. Secure storage: Bitget uses cold/hot wallet separation storage and multi-signature wallet technology to ensure that user assets will not be inaccessible due to the "disconnection" of individual administrators.
2. Internal control system: Bitget minimizes sensitive permissions and separates permissions, and has abnormal behavior alarm mechanisms, more manual review mechanisms, and complete personnel files to prevent internal malicious behavior.
3. Risk control system: Bitget continues to optimize the KYC (identity authentication) and AML (anti-money laundering) systems, and cooperates with professional institutions such as Sumsub to improve the ability to identify "AI face-changing" fraud and ensure the transaction security and legality of the platform.
4. Asset transparency: Bitget publishes a reserve report every quarter to ensure that it has a fund reserve of more than 1:1. Its reserve ratio remains at 150-200%, far exceeding the industry average, demonstrating its high attention to the security of user assets.
5. Protection Fund: Bitget has the second largest user protection fund among CEXs, with a total amount of more than $400 million. When the platform encounters security challenges, the fund will ensure that users will not suffer losses and provide strong protection.
Bitget's success is reflected not only in its impeccable security record, but also in its market performance and the amazing growth of its platform coin BGB.
Maintaining security measures is crucial for cryptocurrency trading platforms because it is directly related to user trust and the survival of the platform. First of all, security measures can prevent hacker attacks, information leaks and asset theft, and protect users' funds and personal privacy. Bitget has performed particularly well in this regard, and has never had an incident of asset theft or user information leakage since its establishment.
Secondly, strong security helps build and maintain user trust, which is critical to the long-term development of the platform. With its impeccable security record, Bitget believes that they will gain more trust from users. These asset losses and information leaks will gradually make users lose trust in the brand, and may also lead to more legal disputes and regulatory issues, as well as damage the reputation of the platform.
In addition, the security measures of the trading platform can enhance the platform's market competitiveness and stand out even in fierce competition. Over the years, Bitget has provided users with secure asset protection, personal information and continuous product optimization, established a good reputation in the market, attracted 25 million users to use its products, and consolidated its market position.
Amazing performance on the other hand
In the past two months, the market has been weak, but Bitget has maintained positive growth. The good data of the platform is like the company's solid performance, and the platform currency is the golden shares in the hands of shareholders. With the support of solid performance, the value of these shares continues to increase, bringing rich returns.
First, the performance of Bitget platform coins. According to Coingecko data, BGB tokens were listed in 2020, fell to a minimum price of 0.0149, and then began to soar. The highest price in June this year was $1.44. Calculated from the lowest price, the increase in 4 years was 90 times, and the average annual increase was 22.5 times. The increase from 2023 to 2024 exceeded 10 times, and the average monthly increase was 0.8 times.
As of June 10, observing the trend of BGB token data, it can be seen that BGB can easily surpass the previous high point after each decline and adjustment following the market. In the two market retracements this year, almost all altcoins fell by more than 30%~50%. From July 2021 to date, BGB's monthly decline has not exceeded 18% (even the collapse of LUNA and FTX failed to cause BGB to fall by more than 18% per month). This indirectly shows that the Bitget platform did not fail to grow rapidly and sustainably due to the market crash, but kept the data growing at a high rate regardless of wind and rain, which is also reflected in the strong performance of the BGB token.
Let's look at Binance's platform coin BNB. Continuing to observe the data performance from 2021 to the present, BNB has experienced several large fluctuations under the influence of the market. Although it has performed well at certain times, especially when the market as a whole retreated, BNB's decline was significantly larger. For example, in this year's market retreat, BNB's price fell by more than 30% from its high. This high volatility and large retracement feature shows that BNB's ability to withstand pressure in the face of drastic market fluctuations is not so strong (K-line image data source Coingecko).
Let's look at OKX's platform coin OKB. Also from the data performance from 2021 to now, OKB has performed slightly better than BNB under the influence of the violent fluctuations in the market. OKB's highest point in the last bull market was $33.87, and it fell to a minimum of $9.98, a drop of 69.8%. BNB's highest point in the last bull market was $675, and it fell to a minimum of $197, a drop of 70%. During the period of violent fluctuations, their monthly declines exceeded 20% respectively.
In addition to BNB and OKB, Bitcoin rose to 61,000 in November 2021, and then fell to 16,800, a drop of more than 70% (K-line image data source Coingecko). Even after multiple rebounds, the decline exceeded 30%.
Since 2021, BGB's market performance has been relatively stable. Even in a volatile market environment, its decline has never exceeded 18%. This performance highlights BGB's strong risk resistance and rapid rebound characteristics. Whether facing the market chain reaction caused by the FTX and LUNA incidents, or other large retracements, BGB has been able to recover quickly, showing its excellent market resilience and stability. "There will be a time to ride the wind and waves, and set sail to cross the vast ocean." BGB has shown its rock-solid qualities in the wind and waves, providing investors with peace of mind and trust. In the turbulent market, BGB's performance is undoubtedly a strong and stable force.
The role of BGB and the wealth effect
Secondly, users holding BGB can participate in the Bitget platform’s star events or popular events, such as Launchpool, Launchpad, PoolX and other activities:
1. Launchpad, the first issuance of tokens on the exchange (IEO). By staking BGB, you can win the lottery for the project tokens that will be issued for the first time on the exchange. The more BGB you invest, the greater the probability of winning.
According to ChainCatcher's 2023 data statistics, compared with the highest returns of the Launchpad of the top ten platforms, users participating in Bitget Launchpad have obtained 41.9 times the returns, and the overall average annualized return is 146% (the annual increase in returns from holding BGB has not been calculated here), ranking first in the return list.
On June 11, Bitget launched a new project BWB (Bitget Wallet) and launched it on Bitget Launchpad. Users can buy BWB by staking BGB. At that time, the initial exchange price of BWB was $0.15. Now the price of BWB has reached $0.57 (the price on June 21), achieving a 3.8-fold profit (0.57 / 0.15 ≈ 3.8), showing the wealth effect of BGB holders. Let's continue to look down.
2. Launchpool: Users participate in Launchpool mining by staking BGB (the more BGB you stake, the more rewards you get), and at the same time receive token rewards for new projects. This is also called staking mining. Compared to Launchpad, the participation method of Launchpool is simpler. You only need to stake BGB to mine new tokens that are about to be launched.
In the past 5 months of Launchpool activities - the returns of different tokens on the Bitget platform, the following table shows the return on investment (ROI) and annualized return (Return(Y)) of each token in different time periods. ALEX, GRAPE, ZKF, RABBIT and SAROS tokens on the Bitget platform brought annualized returns of 178%, 174%, 329%, 179% and 47% respectively. In total, the annualized total return in the past 5 months reached 907%. This amazing return proves that users who hold BGB tokens and participate in various activities on the Bitget platform (such as Launchpool, Launchpad, PoolX) can get extremely high returns on investment.
Public data compilation
3. PoolX, its characteristics depend on the number and frequency of projects launched. The more projects PoolX launches, the more benefits it can provide to PoolX stakers. Since the launch of the first project CHATAI on April 8, Bitget has launched a total of 9 projects, with an average of one project launched on PoolX every day, with an average income range of about 16%-22%. This means that users can participate in PoolX's staking mining every day. If they still invest 10,000 BGB in these projects, the overall accumulated income is also amazing. Users can provide popular tokens such as BGB, ETH, BTC, USDT, ZK, etc. for staking to obtain income. New users participating in PoolX will have additional airdrops and income superposition.
The above three methods are the most popular ways of earning income on Bitget. Each method has different characteristics. I believe that BGB will strive for more ways of earning income for users in the future. Users holding BGB can not only enjoy the current high returns, but also benefit from the long-term appreciation potential of BGB. In the future, with the continuous development and innovation of the Bitget platform, the value and income opportunities of BGB are expected to continue to increase. In short, holding BGB can not only bring immediate economic returns, but also provide a solid foundation for potential future gains.
Summarize
Bitget has maintained strong vitality in both bear and bull markets, especially in the derivatives market, which has reached the same level as Binance. Throughout its operation, Bitget has not had any security incidents, which shows that their team attaches great importance to the security of users' funds and has won the trust of more global users.
