The time and space background before the AAX thunder explosion

  • In the bear market stage, LUNA is in a death spiral, Sanjian has entered liquidation procedures, and big institutions such as Celsius are in trouble

  • Many well-known exchanges such as Coinbase, Crypto.com, Bybit, and Huobi have laid off employees, and AEX and HOO have restricted withdrawals.

The positive aspects before AAX explodes

  1. AAX was founded in 2019 and will celebrate its third anniversary in 2022.

  2. AAX spot ranking 42, contract ranking 14 (taken from 2022/6/27 CMC)

  3. AAX spot ranking is 44, contract ranking is 8 (taken from 2022/10/26 CoinGecko)

  4. AAX has been ranked the second-highest exchange for quarterly growth by CryptoCompare, growing 285% in 2022 alone, with its third-quarter trading volume exceeding $57.2 billion. CoinGecko also ranks AAX as one of the top 20 and most trusted cryptocurrency exchanges in the world

fundamental problem

  1. The financial income earned by users does not know the "profit principle" behind it (although AAX officially claims that high-end financial products are a promotional method), which makes users invest in the exchange's financial products and earn Earnings are based on trust in the exchange

  2. In fact, exchanges that are more well-known and larger than AAX are reducing expenses, and users do not know whether the financial status of the exchange is healthy.

Summary & Lessons Learned & How to Avoid

  1. Exchanges that are ranked very high on CMC and CoinGecko do not mean they are safe. The bankruptcy of FTX (second in the world) and the runaway of AAX are good cases. Note: There is no need to research exchanges that are not listed on CMC or CoinGecko.

  2. Previously, the spot trading volume of AAX exchange ranked among the top ten on CMC. Many users were deceived because of this, thinking that the exchange made a lot of money by earning handling fees. Little did they know that the trading volume could be laundered.

  3. Ghost stories are easy to happen during the bear market stage. Don’t store your money in exchanges with high annual returns because you don’t know the “principle of profit” behind it. Store your money in large exchanges (as long as there have been no layoffs or personnel freezes recently). Mainly exchanges)

  4. The best way is to put money in a cold wallet, because during the bear market, large exchanges like FTX were exposed. If you want to know how to avoid choosing the FTX exchange, refer to this IG - FTX Black Swan Event X Liquidity Run How to prevent

Bear market warning

When the financial crisis occurs, don't trust any company. They will only say that their company is very good and has no problems. When there is a storm, they will only say sorry to you and tell you that they will try their best to make amends and calm your mind. , in the end, you are the one who gets hurt. If something happens to the exchange and KOL, they will handle it accordingly.

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