As a seasoned crypto investor and someone who has been involved in the cryptocurrency business since 2017, I can’t help but be excited about the current bull market we’re experiencing. The role of market-making in this ecosystem is more important than ever, and it’s fascinating to hear from industry experts like Filipp about their approaches and insights.
The current surge in cryptocurrency prices marks the first bull market where market-making practices are openly discussed. This trend, which has been growing steadily over the years alongside market maturation and an increase in new funds entering the global cryptocurrency market, is significantly expanding the role of market-making within it.
As a dedicated researcher exploring the intricacies of digital asset market-making, I am excited to dive deeper into its current trends and insights. With my experience in the cryptocurrency industry dating back to 2017, I’ll be guided through this exploration by Filipp Veselov, the CEO of CLS Global – a leading player in the market-making segment. CLS Global’s significant influence is demonstrated by its support for 10% of CoinMarketCap’s top 200 projects.
I had the opportunity to engage in a deep conversation with Veselov as we delved into the bustling world of market-making services and explored CLS Global’s significant achievements within this realm, as well as their aspirations for the upcoming crypto market surge. Furthermore, he shed light on the primary client base driving market-making activities currently and revealed some valuable insights into constructing a successful global business in the dynamic landscape of Web3.
We can’t ignore the significant topic that was brought up – Bitcoin ETFs were part of our discussion as well. Additionally, Filipp expressed his views on the latest buzz in the blockchain industry, including DeFi, Bitcoin’s Layer 2 solutions, meme coins, and institutional investment in cryptocurrency services and assets.
Greetings U.Today team, I’m Filipp here. I’d be happy to share some background about myself. In terms of my experience in the Web3 space, I’ve been deeply involved in various projects, from blockchain development to decentralized applications. I’ve also spent a significant amount of time exploring the potential of this technology for creating more equitable and transparent systems.
Filipp Veselov: I’m FilippVeselov, the 31-year-old head of CLS Global. For over five years, our company has been an active participant in the crypto market. We boast a clientele of over 500, with each one being actively engaged. Our presence is felt on more than 80 centralized trading platforms, and we collaborate with over ten decentralized exchanges (DEXs).
Tell us a bit about CLS Global. How do you define your role in market-making?” could be:
As a market analyst at CLS Global, I’m dedicated to helping our company reach the top position as the premier trading service provider within the crypto industry. My role involves identifying and seizing the business opportunities that arise from the dynamic crypto capital markets for both entrepreneurs and enterprises.
Since 2017, we have been assisting digital asset projects at various stages, achieving consistent results for our clients and contributing to their successes.
U.Today: What are the differences between market-making in bear and bull phases?
Filipp Veselov: Market-making tactics change between bull and bear markets because of fluctuating liquidity levels, risks, and investor attitudes.
In a thriving stock market, ample funds are available for trading and risks are minimized, enabling traders to adopt narrower price differences between buying and selling assets and take bolder investment stances.
During market downturns or bear markets, it is essential to account for the reduced availability of assets to buy and sell, as well as the heightened risks. As a result, larger price differences or spreads between buying and selling prices are required. In addition, careful inventory management becomes necessary due to increased uncertainty, and more intricate hedging strategies may be employed to mitigate risk.
U.Today: What are the key achievements of CLS Global you can proudly share with us?
Filipp Veselov: CLS Global has weathered three bear markets in the market, showcasing robustness and consistency. We currently manage over $1.5 billion in assets, collaborate with approximately 20 projects from the top 100 on CoinMarketCap’s list, and our team boasts a combined experience of over a century in the cryptocurrency and financial industries.
U.Today: What are the next points on the road map ahead for your team?
As a committed crypto investor, I’m excited about our future plans. We’re determined to strengthen our status as the leading trading service provider in the crypto sphere. Furthermore, we’re working on establishing a specialized trading platform tailored specifically for the cryptocurrency market.
After that, our primary focus will shift towards extending our expertise into investment and consultation services in the cryptocurrency sector, as well as providing comprehensive legal setups for non-crypto related projects.
Last but not least, we are going to establish an investment bank focused on the crypto sector.
U.Today: Which clients have provided the most significant or intriguing interactions for you lately?
As a crypto investor, I understand that each individual’s investment landscape is unique. Instead of providing generic advice, it would be more beneficial for us to discuss your specific situation, project type, and investment objectives in order to tailor our recommendations to your needs. Let’s explore how we can help you maximize the potential of your crypto investments together.
U.Today: Please indicate the three-five most powerful trends in the crypto segment for 2024-2025.
Filipp Veselov: Regulations and institutional acceptance will result in a large influx of capital from the Web2 sector towards cryptocurrencies. The approval of Bitcoin and Ethereum ETFs serves as proof. Memes continue to attract new users, who eventually develop a deeper interest in crypto technologies.
In simple terms, Decentralized Finance (DeFi) and DeFi 2.0 (DePin) are anticipated to introduce more structured systems and innovative products, potentially collaborating with traditional Web2 businesses. On the other hand, Layer 2 solutions for Bitcoin are predicted to grow in popularity, providing an alternative avenue for investors who bought Bitcoin prior to 2017 to diversify their holdings.
U.Today: Identify three challenges with current market-making practices that our platform aims to resolve during the upcoming bull market.
As an analyst, I would describe a bull market by saying that the surge in market confidence results in heightened trading activity with a larger number of participants entering the fray. Consequently, this increased demand for securing trades spreads across various trading platforms, creating a fragmented liquidity landscape where executing large orders may require more time and effort due to the dispersed nature of the available buying and selling interest.
In addition, during bull markets, the markets can be quite unpredictable with large price swings. Consequently, risk management for market makers becomes challenging as they strive to keep narrow spreads while avoiding substantial losses.
With sophisticated algorithms and instant market analysis, we can adapt spreads and inventory in response to market fluctuations. This strategy effectively minimizes risk and ensures affordable pricing, even in turbulent markets.
Furthermore, with the market surging at an unprecedented rate, even a minor delay in executing orders could result in lost chances and unwanted price discrepancies, leading to substantial losses for both market makers and traders.
We leverage cutting-edge technology to ensure ultra-low latency and high-speed order execution.
How about rephrasing it as: “U.Today: Which background does your team come from – Web3 pioneers or traditional trading sector?”
Filipp Veselov: At CLS Global, our core team members are deeply rooted in the Web3 and crypto space. Yet, we’re fortunate to have experienced professionals from the traditional trading industry holding essential roles such as CTO, CFO, and CLO. Their expertise adds significant value to our team.
U.Today: Which competitors look the most dangerous to you?
Filipp Veselov: We do not perceive any competitors as particularly dangerous to our operations.
In simpler terms,
Filipp Veselov’s recommendation for teams intending to issue native tokens in the cryptocurrency sector is to maintain a persistent demand that surpasses the token supply at all times. This condition is essential for achieving lasting success and uninterrupted expansion.
U.Today: That was a great talk, Filipp, many thanks for coming! All the best in the next bull run!
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2024-06-06 14:01