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Bitmain-Backed Digital Assets Company Matrixport Extends Its Crypto Services into Europe

Matrixport, a Singapore headquartered and Bitmain-backed crypto company that offers trading, lending, and custody services, extends its services into Europe through the establishment of its new Zurich office. However, for now, Matrixport will not offer its payment services in Europe. Instead, it aims to apply for a Swiss banking license.

Matrixport is backed by Bitmain, the Chinese crypto mining company, and it has plans to set up a European operations center in Switzerland. By joining other crypto firms based in Switzerland, it aims to reach out to cryptocurrency enthusiasts and institutional investors such as private banks, family offices, and asset managers who always welcome being exposed to cryptocurrency.

As stated by the report, Matrixport’s Chief Operations Officer in Switzerland, Hui Wang said that the company plans to enlist close to 10 staff in the space of two years.

“We will start on a modest scale initially as we establish our name in Europe and establish a pool of clients. We don’t intend to act as a channel for our Singapore HQ, simply referring clients to Asia. We will service our European clients from Switzerland.”

Matrixport is registered under the name of Chaintech in Switzerland and is presently a member of the self-regulatory body QVF, which is looked after by the Swiss Financial Market Supervisory Authority.

Image via Shutterstock

April 16: When Memories Last A Lifetime

Trading Crypto with Eugene is a series of daily commentary on the crypto market and trading advice from Eugene Ng of Matrixport, a veteran trader with 10 years of experience in top-tier global investment banks. If you like the article, please follow us here on Blockchain.News so you won’t miss our future publications.

BTC now up 2%. Between my post yesterday and now, you would notice that it first dropped $500 to $6,400+ before getting here. So what happened? It started with poor Wallstreet earnings and awful U.S. economic data, U.S. equity indices were mostly down last night, driving risk aversion across asset classes. Asia opened up today less gloomy, US equity futures started to retrace some of its losses, and less selling momentum in BTC which led to some stop-loss driving this move higher.More impressively ETH outperformed BTC, now up almost 6% with ETH/BTC pair in clear breakout fashion. The interesting headline made by Messari that the daily average transaction value across ETH network is now equal to that of BTC, would have possibly added to the herd-mentality in crypto. Tonight everyone’s going to be watching the jobless claims number that street is looking for 5mil losses, which means around 20mil people are sitting without a job in the U.S. So how do we trade today? With continued nervousness in traditional markets, I think we stick to our gameplan, sell on a rally; and where? I think we can start selling here $7,050 and target $6,800 / $6,600 / $6,300 in the short-term. For the last three weeks, whenever BTC pops $500 to $1,000, it almost always gives back its gains in the following days (if not hours). Not forgetting, realized volatility is now back to pre-March crash levels. So if that’s the case, I think we should see some fading action here, and again, I don’t see strong reasons for a continued upward trending market (yet). I will leave you with this…Earlier, I caught up with a friend who used to trade actively for the last few years.

Me: Bro, are you still trading much?Friend: Not really, since Black Thursday when I got rekt.

More than 2 billion got wiped that day, it was very dark because anyone who possibly had some form of leverage would have been REKT, and memories are still fresh from that capitulation. So tell me how are we going to see a sustaining bull market with momentum here and now with the world struggling with the Coronavirus pandemic? Peace out my friends.

Downtrend channel breached for now, with stop outs driving shorts out… A close above $7k will invalidate this decline… Otherwise, stick to the playbook…

For the past three weeks, everytime BTC moves $500 to $1000 in either direction, neither bulls nor bears could successfully drive a sustained move, trapped in this $6000 to $7400 range…

BTC’s realised volatility has now gone back to pre-March crash days…. So sell on aggravated moves…. Dont chase moves for now…

ETHBTC pair in breakout fashion, with ETH outperforming, possibly on the back of positive ETH headlines….

Jobless claims a number we are all looking out for tonight, with 20 million out of jobs, how are we going to see fresh money chasing Bitcoin?

Disclaimer

Opinions expressed are solely the analyst’s own and do not express the views of Matrixport as a company.

The views and opinions expressed in this article are those of the contributor and do not necessarily reflect the view of Blockchain.News.

April 20: Too Many Have Missed the ETH Lining Because They're Expecting BTC

Trading Crypto with Eugene is a series of daily commentary of market analysis and trading advice shared by Eugene Ng of Matrixport, a veteran trader with 10 years of experience in top-tier global investment banks. If you like the article, please follow us here on Blockchain.News so you won’t miss our future publications.

Active weekend for crypto with ETH stealing the limelight up almost 8% while BTC up only 1.5%. The main catalyst for ETH in the past 48 hours was the first block being mined and validated on the ETH 2.0 testnet. Others include record stablecoin volume on ETH, and recent record inflows for Grayscale’s Ethereum trust. But not everything was rosy for the ETH community this weekend as they suffered yet another DeFi attack; US $25mil from DForce’s Lendf.me. For the root causes, refer to this great read here. Binance also announced a new smart contract blockchain designed for high-performance base-layer for DApps, sounds like we have got another ETH competitor.

So how do we trade today? BTC is the beneficiary of the ETH’s powerful weekend rally and I think technicals also support a move higher in the next 24-48 hours. On that point, there is a likelihood we see BTC spiking to a high of $7,800-$8,000 regions should risk assets continue to stay buoyant this week. I’m just holding back from saying “all in” because I’m not confident that there are sufficient dry powder/fresh inflows of capital sustaining the next huge run-up. Will we continue to have ETH-driven broad-based rally? Not sure too. It is during times when I don’t want to risk my entire capital but potentially have exposure to the upside that I’m likely to buy some OTM call options such as BTC $7,500 calls that expire this Friday. Good luck!

Cup & Handle Pattern tends to be bullish continuation patterns so technicals supporting the uptrend narrative…

Larger wedge formation shows potential for $7,800 to $8,000 region if we do see the uptrend technical play out…

ETH in a triangle too… There is a chance we go either direction, but just wanted to highlight to you how far it has rallied since Friday.. more than 25%…

DisclaimerOpinions expressed are solely the analyst’s own and do not express the views of Matrixport the company.The views and opinions expressed in this article are those of the contributor and do not necessarily reflect the view of Blockchain.News.

April 27: Not Out of the Woods Yet

Crypto was quite resilient over the weekend with BTC holding onto its gain and even attempting to break above $7,800 with ETH in similar bullish fashion flirting the $200 mark. Even though twitter-sphere has increasingly been more bullish in the last few days, the recent price rally has been driven by short liquidation. You would notice this as open interest (i.e. outstanding positions) have collapsed from 24 April and hasn’t recovered since. Further, with this uptick, miners may even liquidate some of their BTC ahead of halving.

How do we trade? Stick to the same plan as last Friday, buy BTC around $6,800 to $7,200 region and stay on the sidelines, as this is a massive week for traditional markets (see calendar below). White House Economic Adviser Kevin Hassett told reporters over the weekend that he thinks the next couple of months are going to look terrible with the unemployment rate hitting 16% or higher when April job reports is released. “You’re going to see numbers as bad as anything we’ve ever seen before.”

Second, not sure about the Western world so quickly re-opening is a great idea. For example, Wuhan waited for three consecutive weeks of nearly zero infection before re-opening. Dr Gottlieb also thinks the U.S. isn’t out of the woods yet as the country is still recording more than 30k infections a day. This is why I think prolonged lockdown is going to hurt EPS growth, and puts a big question mark around fresh capital channeling into BTC. Goodluck and have a good week ahead.We are at zone A right now, if BTC cant break above 7,800-7,900 region, we are likely to see it drift towards zone B….

Ignore Twitter’s bullish buzz, BTC’s open interest continues to show decline from 24 April, indicating the recent rally has been driven by shorts getting squeezed out (than fresh capital inflows)…

S&P 500 tends to make new lows with deteriorating EPS growth, and I think EPS will continue to decline over the next few quarters…

Exciting Economic Calendar this week
Apr 28 BOJ Rate AnnouncementApr 28 Riskbank Rate AnnouncementApr 29 FOMC Rate Announcement
Apr 29 US Real GDP (1Q)Apr 30 ECB Rate Announcement

Bio of Eugene:

Eugene is currently a sales and business development director for Matrixport. He has 10 years of experience in institutional trading, financial derivatives and sales in Citibank, Barclays Capital and Deutsche bank. Eugene started investing in cryptocurrencies in 2017, and has since advised multiple projects worldwide, raising more than U.S. $50 million. Because of his active involvement in fundraising, Eugene is well-connected with the crypto ecosystem. Beyond advising projects, Eugene takes a keen interest in trading and managing his personal portfolio. He has been featured on Bloomberg, Forbes and Yahoo.

Matrixport Partners with Simplex to Allow Buying Crypto Using Credit Card

SINGAPORE – Matrixport, the Bitmain spin-off and a leading financial service provider for digital assets, today announced a partnership with the leading payment process company Simplex, enabling users to purchase cryptocurrencies using their credit cards directly and securely on Matrixport.

With Simplex’s support of more than 20 fiat currencies, including USD, EUR, RUB, GBP, JYP, CAD, AUD, and KRW etc., users from anywhere in the world are now able to buy cryptocurrency and enjoy the high returns offered by Matrixport’s popular investment products with ease. In one stop on Matrixport’s mobile app, users can easily buy crypto with their Visa or Master cards, invest their crypto into products such as Dual Currency products and Dip Hunter, and start earning 20-100% annualized returns or buy bitcoin at a discount. In addition to convenience, Simplex guarantees Matrixport users the highest possible degree of security for credit card purchase.

“At Matrixport, our mission is to make crypto easy for everyone. Partnering with Simplex is an important step towards it.” says John Ge, co-founder & CEO of Matrixport and also co-founder of Bitmain. “I’ll give you one example. Dual Currency – USD is one of our most popular products as people can invest in USDT/USDC and earn returns way higher than what they can get from banks deposit and most funds. Previously, our users had to purchase USDT/USDC somewhere else and transfer it to our platform. The support of Simplex has greatly streamlined the process, making these attractive returns at your fingertip. Under the current global environment of unlimited QE, people around the world are showing stronger needs for investment products with relatively high returns to counter inflation, and with the help of Simplex, we are able to provide more people with equal access of investment opportunities.”

“We are excited to partner up with Matrixport to enable our leading on-ramp solution and make the purchasing of crypto an easy, fast and safe experience globally,” says Ari Last, the VP of Business Development at Simplex.

In order for more people to enjoy the convenience, Matrixport offers to reward 4 USDT to each user for their first credit card purchase, for a minimum order size of no less than USD100 (or equivalent). For more details of the event, check out Matrixport’s website or app.

About Matrixport

Matrixport, span off from the crypto giant Bitmain and officially established in February 2019, is a one-stop crypto financial services platform offering digital currency trading, institutional custody (branded as “Cactus Custody”), lending as well as asset management to both institutional and retail customers. The digital currencies traded on its platform include bitcoin, bitcoin cash, ethereum, litecoin, Ripple, Tether, USD Coin and many others. Matrixport was co-founded by Jihan Wu and John Ge, who were both mining industry veterans and co-founders of Bitmain.

Matrixport has 150+ staff globally with global headquarters in Singapore and offices in Hong Kong, Zurich, and Moscow. With rich industry resources and leading technology capabilities, Matrixport aims to make crypto easy for everyone and create the next generation digital financial service experiences. Matrixport’s vision is to enable a more open and equal financial system using blockchain technologies.

To learn more about Matrixport, go to https://www.matrixport.com.

About Simplex

Simplex is an EU-licensed financial institution, providing the fiat infrastructure for the crypto industry. Simplex processes crypto-to-credit card payments with a 100% guarantee – in case of a fraud chargeback, the merchant gets paid by Simplex. Simplex’s cutting-edge fraud prevention solution and state-of-the-art AI technology blocks fraudulent users and allows legitimate users to complete payments with ease, increasing conversion rates and enabling merchants to focus on their business growth. To learn more about Simplex go to www.simplex.com

April 29: Don't Fight the Fed for Now

BTC is up for the past 7-days with Bitcoin and Ethereum hovering right below $7,800 and $200 key short-term levels. While the top two coins are both hesitating for a decisive move higher, Ripple (XRP) has been making a big splash over the past 24 hours up 10%. History has shown that XRP has the ability to trade like that without many headlines or catalysts.

In my previous analysis, I shared that the recent rally has been driven mostly by liquidations of shorts. Another salient driver could be increased spot buying. This is perhaps why futures are mostly trading at a discount to spot. And it isn’t entirely surprising either as leveraged traders in crypto are likely more skeptical after March’s crash. Evidence of spot buying through headlines like this “Grayscale is buying half of all newly minted Ethereum”. In short, the backdrop for a longer-term bull market is constructive, and definitely a healthier rally than the earlier one we had this year.

With today’s spotlight on FOMC and a few large tech (FB, Microsoft) earnings, I suspect risk assets to trade well into, and may potentially sell after “the fact”. So BTC is going to be well bid, and until we close above the 200 DMA at $7,980 with strong volumes, we can test the $8,200 region. With implied volatility quite cheap, tight $300 range over the past five days, halving in 12 days, persistent negative funding, record USD stable coin balances in exchanges and Fed’s “whatever it takes” attitude. It’s hard to argue against such asymmetric risk-reward in the short-term, so I continue to advocate buying on dips around $7,200 region and BTC calls i.e. $8,250 expires in 9 days. Many are puzzled with equities performance; for example, Nasdaq is now almost unchanged year-to-date, this is why you don’t want to fight the Fed. At least, not for now, live, let’s live to fight another day… Good luck!

Two key levels to watch…. $8,200 and $7,200… If we break $8,200 there’s gonna be fireworks, otherwise buy on dips towards $7,200 region…

BTC’s three month implied volatility is cheap compared to its three month realised volatility…. This is why better to buy volatility (i.e. options) ahead of halving…

Equities should be supported in the short run, but how long? Nasdaq uptrend channel intact but lower highs…. You see my point…

Bio of Eugene:

DisclaimerOpinions expressed are solely the analyst’s own and do not express the views of Matrixport the company.

The views and opinions expressed in this article are those of the contributor and do not necessarily reflect the view of Blockchain.News.

May 7: The Traders' War… New vs Seasoned…

Bitcoin is now up close to 3% past 24 hours as it spiked through $9400 for a bit even as U.S. equities traded poorly, leaving me with the thesis that BTC is starting to break away from moving in lockstep with S&P 500 until and after the halving event. In fact, the 1-year rolling correlation between Gold and Bitcoin is nearing all-time high, so we could start seeing it behave more like Digital Gold. CME-listed Bitcoin’s open interest rose to almost $400 million yesterday, an all-time high. What does that mean? It basically signals that U.S. regulated institutions and retail (through their TD Ameritrade accounts) are pouring fresh capital into these futures contracts. Further evidence that retail is buying is that spot exchanges (i.e. Coinbase) generally show accelerated volumes while futures are not moving much. For example, neither the futures curve has steepened that much nor the term structure basis. Second, Square reported tremendous growth in Bitcoin purchases through their app.
We got the bull case. So what’s the bear case? The bear case is that the % of open interest of CME vs the global open interest of all exchanges is 15%, which isn’t exactly large. So we know the U.S. regulated traders and retail are in the recent fresh bulls vs leveraged and long-time/seasoned traders sitting on the sidelines. I wrote in my earlier notes that two reasons that may be holding leveraged and longtime traders back are as follows; (1) past two halvings were met with decline in BTC’s price post-event, (2) fresh memories of 12-March crash. Trade strategy this week? Stick to the same game plan; for those who heeded my advice in the past few notes on going long volatility through buying BTC calls, that has worked quite alright. In fact, a large player lifted 10,000 ETH 250 June calls yesterday. I would also start building some put positions if we do see BTC breaking higher to $10k or beyond. Gdluck and peace out. All-time high in CME’s listed Bitcoin futures open interest… U.S. regulated traders and retail are starting to build fresh positions, and likely are from the long side….

Rolling 1-year correlation between Gold and Bitcoin near all-time high…. Bitcoin back becoming digital gold?

$9,500 still an all-important key short-term level. Will the bulls be strong enough to break $9,500 today?

Bitcoin Dominance edging higher, 69% will be a key level, so looks like we still have further room in BTC outperformance in the digital assets space…

May 13: ALT Coins Give You Wings

BTC managed to snap out of its 4-day losing streak as it stayed well bid up close to 3% in the past 24 hours. This is likely the result that miners holding BTC are not selling their coins (see chart below that shows mining pools are holding BTC instead of selling ahead of halving) and are well-hedged post halving i.e. put-to-call ratio continues to stay elevated at ~1.70. In an interesting development, JPM has now onboarded Coinbase and Gemini as customers; paving the way of crypto being accepted as an asset class. ETH also sparked some headlines as Vitalik clarified that the July launch of ETH 2.0 isn’t set in stone yet. Last week, I highlighted that the Bitcoin dominance (i.e. % of the entire crypto market share) has hit a key trendline resistance at 69%, which is why a few alt tokens are now putting in some pretty outsized performance last evening. For example, Stellar was up more than 10%. If this XLM trend continues, expect Ripple to follow suit. Zcash was up more than 5% on the back that Electric Coin Company announced the launch of the Zcash developers alliance (ZDA). Cardano also did around 5% as its founder Charles Hoskinson tweeted yesterday “there is no delay of Shelley. Pioneer is set for launch today”.

Trade Strategy: Similar to yesterday. I’ve closed my long volatility trades, and will start to sell some volatility here and whenever it spikes. While implied volatility has sharply declined from 100% to 80% since Sunday, the longer-term average before the 12 March crash is around 55-60% so there’s still juice to be short vol. Short the 2-day $8,000 put or the 9-day $7,000 put for 20% annualized interest. Message me if you need to discuss trade ideas, good luck. Chainalysis did a blockchain analysis shows that mining pools have been holding more Bitcoin as the halving approaches… Suspect they are mostly well hedged with puts; hence they are holding (than selling them)…

Bitcoin Put/Call ratio continues to stay elevated; either the market wants to be hedged against a lower move in the short term or they are skeptical of the current bid… or the miners haven’t taken off their downside hedge…

Bitcoin dominance.. look at that beautiful resistance trendline capping BTC from outperforming the market.. Sometimes technicals work like a charm, and here’s one of those occasions..

Implied volatility pre the March 12 is averaging around 50 to 60%, which is why at 80% I am a seller…

Disclaimer

Opinions expressed are solely the analyst’s own and do not express the views of Matrixport the company.
The views and opinions expressed in this article are those of the contributor and do not necessarily reflect the view of Blockchain.News.

Matrixport Launches New Crypto Products with Fixed Income Investment and the Flexi-Term Investment Product

SINGAPORE – On 18th May 2020, Matrixport will introduce the Fixed Income Investment Product and the Flexi-Term Investment product, where asset security is protected by a risk control mechanism by real crypto assets guaranteed by excess pledge.

Matrixport is launching two new additions to their assortment of cryptocurrency asset management products and services, the Fixed Income Investment product and the Flexi-Term Investment product. For both products, real crypto assets are guaranteed by excess pledge and the product itself is designed to have ensured asset security by institutional-grade custody and a rigorous risk control mechanism, while offering its users high returns with stability and liquidity.

The Fixed Income Investment product is a digital assets-based wealth management product derived through creditor’s rights assignment. USD stablecoin holders who use this product can benefit from a 7 to 8% fixed annualized return. In addition, users have the ability to either hold their investment until it reaches its maturity or opt to assign the loan assets to other creditors at a subsequently lower price before the loans date of expiry. This means that investments can be cashed ahead of schedule in the presence of other potential creditors.

The Flexi-Term Investment Product, on the other hand, aims to serve as an alternative to a fiat saving account in a low to negative interest environment. It allows for more flexibility in their high-yield low-risk category with an early exit option. Compared to dollar deposits, early redemption still offers a higher interest rate. With this product, users can hold until the product reaches its maturity and receive the fixed income, or in this instance users have the option to choose early redemption and recover the principal and potentially part of the income.

Both products feature a risk control mechanism for asset losses incurred by falling prices or borrowers insolvency. Other than this, these products are built on the premise of full transparency by offering a pay-off calculation that is visible to investors, which allows them to receive their returns in either the currency they used for the contract or a stablecoin such as USDC. This is all backed by Institutional level custody services that guarantee asset protection and safety throughout the process.

For more information, please visit the official website: https://www.matrixport.com/

About Matrixport

Founded in February 2019, Matrixport is the gateway to the digital economy where you can trade, custody, invest and borrow crypto assets all in one stop. With rich industry resources and leading technology capabilities, Matrixport aims to create the next generation digital financial service platform. Our vision is to enable a more open and equal financial system using blockchain technologies.

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May 25: Negative Rates Eating the World (but not Crypto)

Like Chinese ADRs in the US, it’s a sea of red for crypto with Bitcoin down more than 5% in the past 48 hours as it fails to hold above 9k & 8.8k where stops got triggered. No news or catalyst but the lack of bulls to follow through was evident through the volume, and perhaps over this long weekend that the usual buyers haven’t been able to pile onto their longs.

The fact that open interest ticked higher on Sunday indicates that sized shorts have gotten involved; suspect the trend-following sector and break-out traders have piled on with the break of $9k to 8.8k region. Leveraged bear camp is also growing in strength with the 1-month futures curve smashed to trade at negative from trading +10% last week after halving. Not helping the bulls, China has ordered Sichuan, which is the Chinese second largest mining region to close, potentially losing around 9% of Bitcoin’s hash rate.
Strategy? I’ll stick to my game plan, sell BTC on rallies at $9k and $9.4k. The reason why I think we are likely to see a small bounce here than further breaking through towards 8k is simply because risk assets is trading much firmer – just look at HK equities trading today, the fact that even HK equities can close higher amidst China voting for it’s National Security Law, just comes to show much risk wants to trade higher (pain trade). After selling BTC into USD stable, one can also start to look at earning high interest rates on USD stables (i.e. between 6.9% to 18% on Matrixport’s USD FI product). You can also opt for a redeemable option and call your deposit earlier (so you won’t have to wait till the end of maturity). With U.S. 10 year yields trading 70 bps, it’s just inconceivable not to get some exposure in USD yield here in cryptoland. In terms of volatility, I don’t suggest selling here as 1-month ATM vol has just gotten below 75%, I see more value in selling vol when it’s 80% or higher. Gd luck & speak to me if you want to discuss any trade ideas or structures. The risk of BTC heading to X, Y and Z is likely lower than A, B, C. I think the pain trade is higher too with shorts piling onto the recent break down. My view is to short on rallies at 9k and 9.4k..

Stick to the same playbook…. buy near this channel with a tight stop below… don’t fight the forces….

USD stable coin high interest rates on the new mobile app… after selling your BTC higher with vol suppressed, could be a good way to earn USD interest rates as negative rates eat the world…

Leveraged bears coming out, where are the bulls? From trading more than +10%, the 1-month futures are now trading negative!