Shin Chan AMA with EMX's Jim Bai and Craig Austin

Posted by EMX Team on Aug 26, 2019 11:48:00 AM


NOTE: The EMX Token Sale on ProBit has been cancelled since this article was first published. Please join our mailing list or Telegram Announcements channel to keep updated with the latest.

EMX co-founders Jim Bai and Craig Austin did an AMA with the active and engaged community of IEO/ICO enthusiasts, Shin Chan, on August 26, 2019. Below is a transcript of some of the best questions:

Could you tell us about some products you have built for your businesses?

Craig: We've been building since 2017. Since then we've built an exchange, clearing house, cloud security, and partnered with BitGo for crypto security. We have REST / WebSocket APIs and this year launched a suite of crypto, equity index, commodity, and currency products. We'll be continually adding more of those. We launched the first version of our competition platform - and will continue iterating on that improving social features. We're listening to our community to see which contracts they'd like to see listed - and meanwhile we're launching the EMX Token to light up new features on the platform

Do you feel satisfied with the progress made so far? What will you focus on next month?

Jim: We have worked hard for the last 1.5 years building EMX, and are excited for what's coming up, including a spot exchange in the next month and mobile apps in the following few months.

What is the advantage of the different services for futures, perpetual swaps, spot market and derivative markets in the EMX platform?

Craig: Good question- we believe each type of contract has a different use for traders. Buy and hold traders like futures since they don't need to worry about funding rates - and they don't need to worry if they switch signs (from positive to negative, say.) Though, some traders like trading perpetual swaps since they enjoy being able to earn funding - and they like not worrying about expirations. Launching spot markets on EMX will be important in order for us to support multiple forms of collateral. Currently we only support BTC (and soon the EMX Token), but we'd like to support other tokens and stablecoins, as well. To support these cleanly, we need vibrant spot markets on EMX.

There is gold trading on EMX, but the US has a strict regulation on this, how you solve this? 

Jim: The CFTC regulates who can trade. They don't have a world jurisdiction on what can be traded. Gold is a common commodity that doesn't require CFTC approval.

Have you any plan to introduce margin trading in EMX?

Craig: Currently on EMX, we only list derivatives. Derivatives have built-in leverage. "Margin Trading" is a term sometimes used for spot markets. We will be launching spot markets on EMX soon, but we don't have them yet. I wrote a blog post explaining different kinds of markets - including EMX - here:

What is the main reason that lets EMX lower its trading cost as compared to the other traditional broker houses without significantly affecting your profit?

Craig: Good question. In traditional markets, there are only a few large derivatives exchanges and clearinghouses (CME + ICE mainly). One of the reasons we started EMX initially back in late 2017 was that we saw that new blockchain tech / crypto could free the world from only having two or three derivative exchanges and folks would be free to choose where they traded. Another interesting aspect of "cost" is needing to split your collateral across exchanges. At EMX, our idea was always to launch global markets all on one platform (crypto, equity indexes, commodities, etc.) - and so your total cost of trading should be lower because you can just post your collateral to one exchange (EMX) and trade world markets from one place.

Will you allow social trading where users can copy trades of top traders for a fee?

Craig: Great question. Yes, additional social features are on our roadmap. We don't think existing platforms go far enough with social features (most just have a trollbox) and there's a lot of room to innovate there. We currently have a leaderboard and competition features - but we'll be adding additional social features soon. Stay tuned! Sign up for our testnet competition ($25,000 in prizes) at

PERP futures on Alts are great, do you guys plan to provide options trading?

Craig: Options will be good to add down the road, but not this year. We think it's difficult to make options easy-to-use to most crypto traders, and they might end up taking unnecessary risk / misunderstood risk - but we will consider offering them down the road if we can come up with a good easy-to-use design.

What's the role of EMX tokens on EMX platform?

Jim: The tokens on EMX are used to incentivize trading and serve a few roles:

1. Token holders can get fee discounts
2. Token holders can stake tokens to get 10% payouts from the insurance fund
3. Token holders can use the tokens as collateral

What is insurance fund staking? How do we know how much we could get for the 10% gain from the revenue or profit of insurance funds gain every 2 weeks? What happen if the insurance funds are in losses ?

Jim: The staking mechanism is designed to function as an option for token holders. We will publish the likely payout of the insurance fund, like we do funding payments. Staking must be a decision that traders make, and have consequences, both upside and downside. We've designed the platform to quickly close losing positions, but in the unlikely event of losses, stakers can also suffer losses as well.

The tokenomics show your project only selling with 20% only, why the percentage sounds so low for tokenomics?

Jim: We have half the tokens reserved for market making purposes, which will only be unlocked if there is a lack of liquidity and we need to support the traders on the platform. We'll only sell if there's a lot of demand and traders on EMX. That can partially explain why there's 20% for the token sale.

Why choose ProBit to launch the IEO for EMX token?

Jim: We are backed by #Hashed in Korea, want to access theKorean trading community, and most importantly, want to list an EMX/KRW pair, which ProBit is making possible on day 1 of listing. It's our first partner exchange, but there will be more.

Where’s the company registered?

Craig: We're a US company based in California with subsidiaries in various jurisdictions around the world (Bulgaria, Bermuda, etc) for different activities.

What do you intend to do to keep increasing adoption?

Craig: Building an exchange is a "chicken and egg" problem because you need liquidity to get customers, but you need customers to get liquidity. That's why you see so many exchanges fake their volume - to get users to join... We're focusing on specific areas at first (Brazil, Korea, China) and working to grow our community there.

What’s the future direction of EMX?

Jim: The future includes getting more traders to join EMX, which we'll do by launching our token, adding more contracts, and releasing a mobile app.

Please mention 2-3 killer features of your project, which makes it ahead of peers?

Craig: 1) Trade global markets all on one platform. 2) Fair, scalable matching engine (using frequent batch auctions) without "overloads" 3) Great easy-to-use UI... and a great support 24/7 support team in English, Chinese, Korean, and Portuguese! 🙂

Special thanks to Ivan Chong and the Shin Chan community for this terrific AMA. If you have any other questions for Craig, Jim and the EMX team, be sure to join our Telegram (available in Korean, Portuguese and Chinese too!).

The EMX Tokens or any rights to acquire EMX Tokens are only available outside of the United States and to non-U.S. Persons, and are not available to persons with whom, or in jurisdictions where, transactions involving digital assets are prohibited or in many manner restricted by applicable laws or regulations. There is currently substantial uncertainty in various jurisdictions as to the application of securities, commodities, financial, tax, and other laws and any regulations relating to EMX Tokens and digital assets, and the application of other laws and regulations may be fact-specific and subject to change. The EMX Tokens are intended to be offered for use on the EMX Platform. Although not intended to be the offer and sale of a security, there is a significant risk that any offer and sale of the EMX Tokens could nonetheless be deemed to constitute the offer and sale of a security by the U.S. Securities and Exchange Commission or other regulatory authorities. Those who purchase or otherwise obtain EMX Tokens or rights to receive EMX Tokens are required to inform themselves about, and to observe, any restrictions relating to the EMX Tokens and any related documents and communications in such purchasers’ jurisdictions and comply with all applicable laws in connection with any offer, sale, or transfer of the EMX Tokens. Any EMX Tokens obtained may not be offered, sold, or otherwise transferred, except in full compliance with all transfer restrictions, transfer prerequisites, and all applicable laws, rules, and regulations of the transferor’s and transferee’s jurisdictions. In particular, the tokens may not be transferred to U.S. Persons or in the United States, and EMX reserves the right to impose restrictions to prevent any resales that could be deemed to violate applicable laws.

Topics: EMX Team