Daniil Peshkov/123RF

Bibox: an AI Enhanced Encrypted Digital Asset Exchange

  • 26 February 2018
  • Expert Insights

Our new Disruption by Blockchain series aims to highlight companies that are leveraging the incredible potential of blockchain technology to disrupt and revolutionize their industry. Through one on one interviews, we'll speak directly with industry leaders to cut beyond the hype and get directly to the heart of practical use cases and examples of how it will change the world, one industry at a time.

The following is an interview we recently had with Aries Wang, Co-Founder of Bibox.

1. What’s the history of Bibox? 

AW: Bibox started on Sep.2017 right after Chinese government announced to shut down all cryptocurrency exchanges based in mainland China. Since our founding team has a strong believe in cryptocurrency and blockchain technology, we decided to restart an exchange which incorporated at Estonia.

2. Who are the founders and key team members? 

Lei Zhen
OKCoin co-founder & CEO of JiXianYuan Intelligence Technologies Co. Ltd. (www.okcoin.com/ www.jixianyuan.com) JiXianYuan owns the intellectual property of Speech + Machine Vision Artificial Intelligence Solutions. JiXianYuan has many well-established business clients include Tencent, 360.com, Samsung, Lenovo and Sogou.com. Before JiXianYuan, he has Co-founded the largest Bitcoin Exchange platform OKCoin. From 0 to 1, he took full responsibility of the company's internal management, core operations, and help the company become as the world's leading Bitcoin currency exchange platform.

Aries Wang
A serial entrepreneur and investor who has founded and invested couple successful start-ups including cross-border payment company Gopay.pro. He started to involve in cryptocurrency since 2013.

Now, he is the co-founder of Bibox in charge of global operations. Also, he has recently founded ZG Fund to invest in early stage blockchain companies.

3. What problem are you solving? Who are you solving it for?

AW: The issue we solve: Hard to improve market liquidity for Tokens on Exchanges

Details: There is no cryptocurrency exchange platform has a standardized listing policy and trading policy for ICO tokens. Most exchanges lack of explication on select which ICO token to list and trade on secondary market. The backed resources of a ICO issuing team can decide the result of token’s issue and trade on secondary market. This may lead to possible bribery and other illicit methods to get token on the exchange, which also may lead to the consequence of Gresham’s law (bad money drives out good money). Moreover, Investors are also concerned about how to cash out during the late phase of an ICO project.

4. What is your solution to this problem?

AW: Standardized listing and delisting.

We now have a blockchain & crypto expert to review and do due diligence of each token to be added. We have strict criteria, such as, token has to been distributed through ICO or institutional placement with scale. We don’t accept tokens privately help by team to prevent scam. Another criteria is the blockchain technology does help the problems the token’s project is trying to solve. If we deem the token is created basically for fundraising through ICO, we won’t accept it.

Next step, Bibox’s blockchain will incorporate the assistance from Bibox’s proprietary AI technology, and decide which token to list on Bibox based on evaluated result. Our mission is to provide investors an exchange platform full with transparent, neutral and fair.

5. What’s the future of your industry?

Prediction #1: From single function exchange to multi-service platform.
The institutional investors, especially VC and angel, are already very active in the primary market. Also many trading boutique are doing arbitrage or quantitative trading in the secondary market. We don’t anticipate mutual fund or endowment come into market this year, but we do expect some asset management company would allocate a minor piece into the cryptocurrency market. For sure, this has to be based on the prerequisite that the many advanced features, such as transparency, traceability, hedging facilities,  analysis tools, are built up for institutional investors. Many interesting projects are already working into this direction.

Prediction #2: From CEX to DEX.
The attempt for decentralized exchanges goes back to as early as 2013. A wave of so called DEX has come into existence trying to disrupt the opaque and monopolistic traditional financial world. However, due to the latency of order matching, generating or canceling and the cross-chain interoperability issues, most of them suffer from low trading volume and struggle to come into large adoption. The cryptocurrency trading is still dominated by centralized exchanges.

As Vitalik Buterin predict, the Ethereum 2.0 technology will mature in the next few years, Ethereum 2.0 enhanced in privacy, scalability and speed. Especially, one of the Ethereum 2.0 projects which is working on DEX , Kyber is launching on the mainnet in two months. We will see some interesting progress unfolds in 2018.

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