State of Crypto Markets in Asia - Invest: Asia 2019

State of Crypto Markets in Asia - Invest: Asia 2019

• 1.
  State of CryptoMarkets in Asia 11 September 2019 Invest: Asia 2019 Bobby Ong Co-founder, CoinGecko
• 2.
  2 CoinGecko in Malaysia (2014-Present)
• 3.
  Asia is NowLeading Growth in Crypto Markets 3
• 4.
  4 The Asia CryptoGrowth Story + Large Young Population Love for Speculation & High Returns + Lack of Interesting Equities Market Non-Restrictive Regulatory Climate Exchange Competition & Innovation + = + Asia Crypto Growth Story
• 5.
  The Asia CryptoGrowth Story 5 1. Asia plays a major role in mining pools & validators 2. Asia has seen a huge increase in crypto exchanges 3. Competition is driving innovations from Asia
• 6.
  1. Asia Miners& Validators 6
• 7.
  7 Source: https://www.extremetech.com/extreme/184427-one-bitcoin-group-now-controls-51-of-total-mining-power-threatening-entire-currencys-safety Data snapshoton 16 June 2014 Bitcoin Hashrate Distribution (June 2014) Discus Fish (F2Pool) was the only Asian Bitcoin mining pool 1 Large Asian mining pool
• 8.
  Trivia 1 Among thetop 10 Bitcoin mining pools, how many of them are from Asia? 8
• 9.
  9 Source: https://btc.com/stats/pool?pool_mode=month Data snapshoton 2 August 2019 (Rolling 1 month data) Bitcoin Hashrate Distribution (August 2019) ● Only 2 of 10 largest mining pools are non-Chinese - SlushPool and Bitfury ● Bitmain owns BTC.com, AntPool directly and ViaBTC indirectly for total combined hash rate of 40% 80% Dominated by Chinese Mining Pools
• 10.
  Ethereum Hashrate Distribution(May 2016) 10
• 11.
  11 Source: https://twitter.com/jonmatonis/status/736539133342949376 Data snapshoton 28 May 2016 Ethereum Hashrate Distribution (May 2016) F2Pool and Miningpoolhub were the only Asia-based Ethereum mining pools with total hashrate of 12.2% 2 Asian mining pools
• 12.
  12 Source: https://etherscan.io/stat/miner?blocktype=blocks Data snapshoton 2 August 2019 (Rolling 7 days data) Ethereum Hashrate Distribution (August 2019) Unknown Unknown Unknown ● 6 out of top 10 mining pools are Asian operated ● Ethereum mining is more decentralized 49% Dominated by Asian Mining Pools
• 13.
  EOS Block ProducersDistribution 13
• 14.
  14Source: https://eospark.com/ Data snapshoton 3 August 2019 EOS Block Producers Distribution (August 2019) 80% ● 18 out of 21 EOS Block Producers are from China ● Most EOS Block Producers are Chinese operated but carrying a different Country of Registration Chinese EOS Block Producers
• 15.
  Asians Love Making 15 Butless so when it comes to decentralization of network
• 16.
  16 Source: https://bitnodes.earn.com/ Data snapshoton 7 August 2019 Bitcoin Nodes Distribution 14% Bitcoin nodes running out of Asia ● US leads with 2,375 out of 9,624 Bitcoin nodes operating globally (24%) ● China (406), Singapore (313), Japan (191), Hong Kong (173) leads Asia.
• 17.
  ● US leadswith 2,219 out of 6,859 Ethereum nodes operating globally (31%) ● China (769), Singapore (342), South Korea (291) Japan (277) leads Asia. 17 Source: https://etherscan.io/nodetracker Data snapshot on 14 August 2019 Ethereum Nodes Distribution 24% Ethereum nodes running out of Asia
• 18.
  2. Crypto Exchanges 18
• 19.
  706% Increase in newexchanges integrated since 2018 New Exchanges on CoinGecko 19 Number of Exchanges 45 July 2019 363 318 new exchanges tracked on CoinGecko from 1 Jan 2018 to 31 July 2019
• 20.
  New Exchanges onCoinGecko 20* Active new exchanges added on CoinGecko from 1 Jan 2018 to 31 July 2019 ** Exchanges that do not provide public information on county of registration are classified as “Not Specified” 40% New exchanges are from Asia Many Asia-based exchanges incorporated in Malta, Seychelles, Cayman Islands, British Virgin Islands
• 21.
  No Exchange CountryTrading Volume 1 $ 922,517 2 $ 637,873 3 $ 448,014 4 $ 289,467 5 $ 246,781 6 $ 223,127 7 $ 213,842 8 $ 184,339 9 $ 100,128 10 $ 79,542 21Snapshot Date: 6 August 2014 * Country of registration is obtained based on best effort basis based on publicly available information. Trading volumes were low and more decentralized. 70%Top 10 Exchanges No Longer Exist Top 10 Spot Exchanges by Reported Volume (August 2014)
• 22.
  Trivia 2 What isBinance’s rank in terms of reported trading volume on 31 July 2019? 22
• 23.
  No Exchange CountryTrading Volume 11 $ 1,038 mil 12 $ 990 mil 13 $ 984 mil 14 $ 966 mil 15 $ 933 mil 16 $ 907 mil 17 $ 871 mil 18 $ 835 mil 19 $ 832 mil 20 $ 824 mil No Exchange Country Trading Volume 1 $ 12,530 mil 2 $ 2,230 mil 3 $ 2,156 mil 4 $1,457 mil 5 $1,332 mil 6 $ 1,244 mil 7 $ 1,180 mil 8 $ 1,168 mil 9 $ 1,071 mil 10 $ 1,064 mil 23 $966 million Binance Reported Trading Vol Binance is only in position #14 Top 20 Spot Exchanges by Reported Volume (31 July 2019)
• 24.
  No Exchange CountryTrading Volume 11 $ 1,038 mil 12 $ 990 mil 13 $ 984 mil 14 $ 966 mil 15 $ 933 mil 16 $ 907 mil 17 $ 871 mil 18 $ 835 mil 19 $ 832 mil 20 $ 824 mil No Exchange Country Trading Volume 1 $ 12,530 mil 2 $ 2,230 mil 3 $ 2,156 mil 4 $1,457 mil 5 $1,332 mil 6 $ 1,244 mil 7 $ 1,180 mil 8 $ 1,168 mil 9 $ 1,071 mil 10 $ 1,064 mil 24 $12.5 billion #1 in Reported Trading Vol Bitmax has 13x more trading volume than Binance! Top 20 Spot Exchanges by Reported Volume (31 July 2019)
• 25.
  Trans-Fee Mining Rebate offeredby exchange in the form of exchange tokens for any trading fee that has been incurred 25
• 26.
  No Exchange CountryTrading Volume 11 $ 1,038 mil 12 $ 990 mil 13 $ 984 mil 14 $ 966 mil 15 $ 933 mil 16 $ 907 mil 17 $ 871 mil 18 $ 835 mil 19 $ 832 mil 20 $ 824 mil No Exchange Country Trading Volume 1 $ 12,530 mil 2 $ 2,230 mil 3 $ 2,156 mil 4 $1,457 mil 5 $1,332 mil 6 $ 1,244 mil 7 $ 1,180 mil 8 $ 1,168 mil 9 $ 1,071 mil 10 $ 1,064 mil 26* Country of registration is obtained based on best effort basis based on publicly available information. Reported Trading Volume is no longer a good indicator! Top 20 Spot Exchanges by Reported Volume (31 July 2019)
• 27.
  How do wesolve it? 27
• 28.
  28 High Volume →More Traders → More Web Tra c Trading Volume Proxy
• 29.
  No Exchange Country Normalized Volume Reported Volume 11$ 50 mil $ 1,244 mil 12 $ 43 mil $ 638 mil 13 $ 38 mil $ 907 mil 14 $ 34 mil $ 794 mil 15 $ 32 mil $ 32 mil 16 $ 30 mil $ 681 mil 17 $ 28 mil $ 871 mil 18 $ 28 mil $ 28 mil 19 $ 28 mil $ 28 mil 20 $ 25 mil $ 25 mil No Exchange Country NormalIzed Volume Reported Volume 1 $ 966 mil $ 966 mil 2 $ 250 mil $ 250 mil 3 $ 167 mil $ 167 mil 4 $ 134 mil $159 mil 5 $ 95 mil $ 1,064 mil 6 $ 92 mil $ 765 mil 7 $ 92 mil $ 120 mil 8 $ 80 mil $ 788 mil 9 $ 64 mil $ 81 mil 10 $ 63 mil $ 208 mil 29 Trading volume normalized by web traffic estimates CoinGecko Trust Score Top 20 Spot Exchanges by Normalized Volume (31 July 2019)
• 30.
  With Binance classifiedas an Asia Pacific exchange, Asia’s market share of normalized trading volume is 58%. Normalized Trading Volume by Region (31 July 2019) 30Data snapshot: 31 July 2019 * Exchanges that do not provide public information on county of registration are shown as “Not Specified” $1,854 mil (58%) Asia Pacific’s Trading Volume $1,854m $270m $311m $141m $470m $1.0m $100m
• 31.
  Exchange Regulations 31 in searchof favourable regulations
• 32.
  32 China and Indiahas banned crypto exchanges, ICO and various aspects of crypto. What would you do as a Chinese or Indian crypto entrepreneur? Exchange Regulations
• 33.
  33 Japan ● ● Regulations inplace since September 2017 ● Many M&A activities with large corporations getting involved such as Rakuten, SBI, and Yahoo! Japan (Taotao) ● The maximum leverage has been lowered to 4x for margin trading 19 Regulated Japanese Exchanges Exchange Regulations
• 34.
  South East Asianregulators are very progressive! 34 Malaysia Thailand Brokerage Philippines Securities exchange regulated by Labuan FSA Regulated by Malaysia SC ABA Global Philippines Inc. Regulated by Bangko Sentral ng Pilipinas (BSP) 37 crypto exchange operators licensed by Cagayan Economic Zone Authority (CEZA). Open only to foreigners and can only provide services to non-Philippines residents. Exchange Regulations
• 35.
  35 3. Innovations inAsia
• 36.
  Trivia 3 Which isthe most popular country for ICO / IEO fundraising? 36
• 37.
  Singapore is aglobal hub for ICO issuance. ● Singapore led the world followed by the US, UK and Estonia. ● Switzerland is only the 6th most popular jurisdiction. ● $1.6 billion raised by 228 Singapore-based ICOs 37 2018 ICO Market Overview # of ICOs
• 38.
  38 ● 72 IEOstook place in H1 2019, raising a total of $262 million ● 39% of IEOs took place in Singapore raising a total of $130 million ● 65% of IEOs took place in Asia raising a total of $186 million ● Asian based exchanges such as Gate, Bitforex, Binance, Kucoin, Huobi were most aggressive in launching IEOs # of IEOs H1 2019 IEO Market Overview
• 39.
  Who started theexchange tokens trend? 39
• 40.
  40 Binance made thefollowing popular: ● BNB exchange token ● Launchpad / IEO model Other innovations: ● Binance DEX ● Binance Chain Innovations in Asia
• 41.
  Where did trans-feemining come from? 41
• 42.
  42 Trans-fee Mining Fcoin shookup the exchange business with trans-fee mining. Methods are interesting but very controversial. Tactic is is very popular in Q3 2018 in Asia. Innovations in Asia
• 43.
  Who are thelargest crypto derivative exchanges? 43
• 44.
  44 Innovations in Asia Bitmexand OKEx Futures lead the world in crypto futures and perpetual swaps. Other exchanges are now copying this model. Expect more exchanges to offer derivatives.
• 45.
  45 Bitmain ● Highly efficientASIC hardware ● Expanded vertically in the mining sector ● Crypto unicorn with public listing coming soon Innovations in Asia
• 46.
  Recap 46
• 47.
  The Asia CryptoGrowth Story 47 1. Asia plays a major role in mining pools & validators 2. Asia has seen a huge increase in crypto exchanges 3. Competition is driving innovations from Asia
• 48.
  48 Thank You www.coingecko.com 48 Bobby Ong Co-founder,CoinGecko bobby@coingecko.com Twitter / Telegram: @bobbyong