Algorithmic trading and market analysis - major benefits of artificial antelligence for the crypto industry

Reporter: We are going through a turbulent period in terms of geopolitics and macroeconomics globally. What impact could this situation have on the crypto space?

Gracy Chen: The current geopolitical and macroeconomic context presents significant challenges for all financial markets, and the crypto sector is no exception. In times of uncertainty, it comes as no surprise that investors tend to adjust their strategies, either by shifting towards assets perceived as safer or by diversifying their portfolios.

In the crypto market, we observe two major trends. On one hand, volatility remains high, influenced by factors such as inflation, central bank monetary policies, geopolitical events, and regulatory developments. On the other hand, blockchain technology and digital assets continue to gain traction as alternative solutions for fast value transfers, smart contracts, and decentralized investments.

In this landscape, it is crucial to focus on providing a secure, liquid, and innovative trading environment, equipping users with the necessary tools to navigate these times of change. If we look, for example, at Bitget's evolution, we can conclude that, regardless of economic cycles, there is a consistent demand for reliable crypto solutions.

Reporter: What impact do you estimate artificial intelligence could have on the crypto industry?

Gracy Chen: We are already witnessing an increasing integration of artificial intelligence into various aspects of the crypto market, and the influence of this technology will continue to expand in multiple directions.

One of the most significant benefits of AI lies in algorithmic trading and market analysis. AI-powered systems can analyse vast amounts of data in real time, identifying patterns and opportunities that traders might otherwise miss. This enhances decision-making and enables the automation of trading strategies for greater efficiency.

Another critical area is security and fraud prevention. AI can detect suspicious activities and transaction anomalies, helping to mitigate risks associated with cyberattacks, money laundering, and other illicit activities. By implementing advanced monitoring systems, crypto platforms can create a safer trading environment for users.

AI also plays a key role in automating customer service. Intelligent chatbots and virtual assistants provide fast and personalized support, improving access to information and reducing the time needed to resolve issues.

Additionally, AI contributes to risk assessment and regulatory compliance. AI-driven technologies help trading platforms adhere to international regulations by continuously monitoring activities and identifying potential compliance violations.

At Bitget, we recognize the growing importance of AI in the crypto industry. That's why we are closely monitoring these developments and investing in AI-powered solutions to optimize our platform and enhance user experience.

Reporter: In the United States, Europe, and Asia, there is increasing talk about regulating the crypto space, with specific plans or measures being initiated (for example, MiCA in Europe). In your opinion, what would be the main aspects that needs to be regulated so that the crypto space can gain wider adoption among the masses?

Gracy Chen: The regulation of the crypto industry is becoming an increasingly prominent topic on the agenda of authorities in the United States, as well as in Europe and Asia. Initiatives such as MiCA (Markets in Crypto-Assets) in Europe represent important steps toward creating a clear and unified framework for players in this sector.

We believe that well-designed regulation can help build user trust and, of course, lead to wider adoption of digital assets.

In my opinion, there are several key aspects that should be regulated to support the sustainable development of the crypto market.

The first and most important aspect is consumer protection. Users must benefit from a clear framework regarding fund security, trading platform transparency, and fraud prevention measures. Regulation that enforces high standards in these areas will help reduce risks for investors.

The second essential aspect is clarifying the legal status of crypto and digital assets. A clear definition of the key factors in the industry allows both companies and investors to operate in a more predictable environment.

Additionally, combating money laundering and illegal financing must be a priority. The integration of strict KYC (Know Your Customer) and AML (Anti-Money Laundering) measures will enable trading platforms to maintain their integrity and operate in compliance with international standards.

We must also consider the need for global regulatory harmonization, which is essential to facilitate the operation of crypto companies across multiple markets. It could be said that the significant differences between national regulations create barriers to innovation.

Reporter: What do you believe are the main fields of activity that will rely on or use blockchain technology in the coming years? Could you elaborate?

Gracy Chen: Blockchain technology has already moved beyond cryptocurrencies and is increasingly being adopted across various industries. In the coming years, I believe we will see widespread blockchain integration in sectors such as finance, logistics, healthcare, public administration, and the gaming industry, each benefiting from its transparency, security, and decentralization advantages.

For example, in the financial sector, blockchain is already transforming the way digital transactions are conducted. We will likely see an expansion of central bank digital currencies (CBDCs), smart contracts for loans and insurance, and increased adoption of DeFi (Decentralized Finance) solutions. These technologies will reduce reliance on intermediaries and facilitate global access to more efficient and secure financial services.

Logistics and supply chains are other areas where blockchain will have a significant impact. This technology enables product traceability from manufacturer to consumer, reducing the risks of fraud and counterfeiting. Companies in retail and manufacturing are already using blockchain to verify product origin and authenticity, and this is expected to become an industry standard.

In the healthcare sector, blockchain has the potential to revolutionize medical data management, giving patients control over their medical history while allowing healthcare providers to securely access information. Additionally, it can enhance pharmaceutical supply chains, reducing the risk of counterfeit drugs entering distribution networks.

Public administration can also benefit from blockchain through digital identity solutions and electronic voting systems, for example. In other words, blockchain technology can help governments deliver more efficient services while protecting citizens' data and mitigating corruption risks.

Of course, in the gaming and NFT industries, blockchain will continue to play a crucial role. Blockchain-based games allow players to own and trade unique digital assets, fostering decentralized virtual economies and new gaming experiences.

Reporter: You moved from a TV career to a leadership position at a crypto trading platform. How and why did you make this transition?

Gracy Chen: When I was a TV Host, my friends and interviewees brought up crypto often. So I started by reading the Bitcoin whitepaper and was instantly fascinated. I was truly captivated by the potential of decentralized finance to revolutionize the way we do things. Imagine a world where anyone, anywhere, could access financial services. Cross-border payments made easy, financial inclusion for the unbanked - that's the power of crypto, and that's what truly inspired me to dedicate myself to this space.

I then decided to start investing in some crypto and even in a few early-stage startups, including BitKeep, which later became Bitget Wallet. In 2015, I left TV to co-found and run two startups in fintech and VR. I'm a lifelong learner, so I pursued an MBA at MIT. Then, in the spring of 2022, a friend told me about a Managing Director opening at Bitget. And the rest, as they say, is history.

Reporter: You have been the CEO of Bitget for almost a year. What are the main projects you have implemented and how has the company evolved during this period?

Gracy Chen: As CEO, my goal is to ensure sustainable growth for Bitget as we expand globally and secure our place in the top 3 centralized exchanges worldwide.

In 2024, we reached significant milestones. Our user base saw an impressive 400% growth, passing from 20 million users in January to 100 million in December. Also our daily trading volume doubled, from $10 billion to $ 20 billion and our market share of the combined spot and derivatives market grew by 4.05% in 2024, reaching 10.5%. This growth has placed us as the second largest crypto exchange ecosystem in the market by user base and as the fourth exchange in terms of trading volume.

Some collaborations and projects were instrumental in achieving such results. We have signed a partnership with LaLiga, becoming their official crypto partner in Eastern Europe, Southeast Asia, and Latin America. This collaboration leverages the immense popularity of football to reach a wider audience and drive crypto adoption among sports fans. We have also made a strategic investment of $30 million into TON (The Open Network) Blockchain, one of the fastest-growing blockchains, reflecting confidence in the success of TON.

The reinforcement of our leadership and compliance team with the appointments of Hon Ng as Chief Legal Officer and Min Li to drive global growth has been crucial. This team has spearheaded key regulatory approvals, including a UK license, a Bitcoin Service Provider (BSP) license in El Salvador, Virtual Asset Service Provider (VASP) in Bulgaria and the launch of a localized exchange in Vietnam, solidifying our position as a regulated and compliant player in the market.

Reporter: What is it like being a woman in a leadership position, in an industry dominated by men? What are the main challenges and the main advantages?

Gracy Chen: The crypto industry has traditionally been male-dominated, but things are starting to change, which is something I find truly encouraging. As CEO of Bitget, I have had the opportunity to contribute to this transformation and advocate for greater diversity and inclusion in the field.

One of the biggest challenges women face in this industry is the lack of representation, which can create obstacles in building strong networks of partners and investors.

Additionally, stereotypes and perceptions persist, suggesting that technology and finance are predominantly male-driven fields. As a result, women are often underestimated and must constantly prove their innovative ideas and competence at the same level as their male counterparts.

That being said, I also see advantages. Being one of the few women in a leadership position in the crypto industry gives me the opportunity to bring a different perspective and a more inclusive approach to leadership. Diversity fuels innovation, and women contribute to creating a more balanced, solution-oriented environment. Moreover, having women in executive roles helps inspire and encourage other women to enter the industry and build careers in blockchain and technology.

At Bitget we launched Blockchain4Her in 2024, a $10 million investment aimed at fostering gender diversity and inclusion in the blockchain space. This initiative supports female entrepreneurs through incubation programs, pitch competitions for women-led startups, and summits that recognize outstanding female achievements in the industry. I strongly believe that a diverse and inclusive crypto ecosystem will contribute to the broader development of this technology on a global scale.

Reporter: What are the main criteria you use to evaluate projects to be listed on Bitget? Could you give some examples?

Gracy Chen: At Bitget, we take responsibility for listing only projects that meet the highest standards of security, transparency, and innovation. In other words, we evaluate each project through a rigorous process, considering several key criteria to ensure that we offer our users reliable digital assets.

The first criteria is the security and compliance of the project. The project will undergo a comprehensive legal review to verify that its code quality, security, and compliance are aligned with Bitget's strategy.

Moreover, liquidity and long-term sustainability are key when choosing a project to list. We analyse the tokenomics, the token demand and supply, the available liquidity, and the project's long-term growth strategies. Our goal is to list tokens that not only generate initial interest but also maintain an active and sustainable ecosystem over time.

Another important point is the credibility of the team and founders. We assess the experience and reputation of those developing the project, their track record in the industry, and their level of transparency in communication. Projects backed by experienced teams have a higher chance of delivering value to users and building a sustainable ecosystem.

Additionally, we pay close attention to community engagement and transparency. A project with an active and transparent community has a clear advantage. We monitor social media engagement, the team's openness towards investors, and the frequency of project updates to ensure ongoing progress and accountability.

Reporter: What are your basic scenarios for Bitcoin and Ethereum this year? What factors are your opinions based on?

Gracy Chen: In 2025, both Bitcoin and Ethereum will continue to be essential assets in the crypto ecosystem, and their evolution could be influenced by multiple factors, including institutional adoption, global regulations, and macroeconomic conditions.

For Bitcoin, we see a growing trend of institutional integration, especially through spot ETFs, which were recently approved in the United States. This marks a significant milestone that could lead to substantial capital inflows from TradFi institutional players.

In addition, several factors may lead to further growth of Bitcoin this year. The recent announcements of several markets, such as the US, Czech Republic, and Switzerland, investigating the possibility of using Bitcoin as a strategic reserve asset provide further legitimacy to this cryptocurrency and may significantly increase its global acceptance.

Also, Bitcoin is solidifying its role as a safe-haven asset, and its trajectory will largely depend on the monetary policies of central banks. If the Federal Reserve and other major financial institutions adopt looser policies, including potential interest rate cuts, this could trigger a new growth cycle for Bitcoin.

Let's not forget that, if we follow historical data, it is possible that Bitcoin will experience its next peak in value approximately one year and a half after the last halving, so around October 2025.

Ethereum's future will be influenced by current market sentiment, technical factors, and upcoming network developments. The anticipated PECTRA upgrade in 2025, aimed at enhancing scalability and performance, could positively impact Ethereum's value. Demand for ETH is also driven by its utility in decentralized finance (DeFi) and the non-fungible token (NFT) market.

The potential approval of spot Ethereum ETFs is expected to attract more institutional investment, though the impact may not be as immediate as seen with Bitcoin. ETH's performance may be tied to BTC's moves, but altcoin season speculation and regulatory tailwinds could drive independent gains. In essence, Ethereum remains the backbone of the blockchain economy, and any technological advancements or new waves of innovation could further strengthen its position.

Regulatory developments will be a key factor for both assets. If global authorities establish a clearer and more favourable framework for digital assets, this could boost investor confidence and drive greater crypto adoption in traditional finance. On the other hand, tighter regulations on stablecoins or stricter policies on crypto transactions could put pressure on the market.

Regardless of short-term fluctuations, I believe that both Bitcoin and Ethereum will remain cornerstones of the global digital economy in 2025 and beyond.

Reporter: What are the projects or objectives that Bitget has for the coming years?

Gracy Chen: Bitget aims to become the go-to platform for crypto investments, with a strong focus on innovation and security. For 2025 and in the years to come, we will concentrate on three main strategic directions: diversifying our userbase, expanding our ecosystem, and security compliance.

We intend to diversify our user base by significantly enhancing services for institutional clients (market makers, brokers etc.) through improved compliance, dedicated support, and tailored financial products like OTC services and low-interest lending. We're also focused on strengthening our VIP program with personalized wealth management and continued delivery of valuable market insights.

Bitget is not only a crypto exchange, but it has a full ecosystem of Web3 services, including DeFi features, a decentralized wallet, and our native token, BGB. We plan to expand this ecosystem by proposing more innovative features and by enhancing BGB's utility on both the exchange and the wallet platforms while integrating it into more on-chain ecosystems and offline payment scenarios.

Security has always been a top priority for us, and we intend to maintain full transparency and the safest trading environment for our users. Back in 2022, we introduced the Proof of Reserves with data updated monthly to ensure at least a 1:1 reserve ratio for client funds, and the Protection Fund, now valued over $600M, to safeguard user assets in extreme scenarios. Also on the compliance side, we have made significant progress, obtaining licenses in several markets like Poland, Italy, UK and Bulgaria. Our goal is to obtain regulatory approvals in more markets and closely collaborate with local regulators to further support our expansion in the region.

Reporter: Thank you!