Link copied “I am struck by how real this market is in terms of how markets react to a variety of phenomena. Markets do tend wash out weeks long before they ever go higher."
-- Patrick Chilress, Director of Strategic Development at Bcause
Bcause aims to establish a full ecosystem exchange ranging from mining, a spot marketplace, a derivatives exchange to clearing. The firm will operate a CFTC-approved derivatives exchange under Designated Contract Market (DCM) license alongside a clearing house under the Derivatives Clearing Organization (DCO) application for both institutional investors and retail investors. Furthermore, Bcause seeks to integrate institutional liquidity and retail liquidity for the construction of a robust marketplace for cryptocurrencies.
TokenPost sat down for an interview with Patrick Childress, the Director of Strategic Development of Bcause, and Derek A Gregory, the CEO of Paradigm Mining and Consulting. For the full interview, please see the link below.
Q. What is Bcause?
Bcause is a CFTC-approved full ecosystem exchange ranging from mining through a spot marketplace, derivatives, and clearing. We are a fully diverse group building institutional-caliber marketplaces to be able to attract institutional users and capital and proprietary trading capital to turn this into a marketplace that is institutionally accepted.
Q. How is the launch of the Bcause derivatives exchange coming along?
Both the DCM and DCO applications were approved and accepted on the record in Q2 of 2018. Our applications are currently sitting on a status called ‘on stay’ with the CFTC, pending our completion of our B round funding.
Q. Nasdaq also announced to release a futures product. How is your relationship with Nasdaq. Will there be a competition between the two companies?
We are actually working very closely with Nasdaq from a technology and strategic standpoint.
However, differences in the pricing movement and in the contract specifics would create arbitrage, allowing traders to capitalize on those margins. So it is actually complimentary.
Q. How would the derivatives exchange help hedge or manage investors’ risks?
Assume a 4 dollar cost in growing a single corn which is currently being traded at 4.5 dollars. You can agree to make delivery of the crop during harvest season and lock in the 50 cents profit for yourself. That is the same way futures will work in cryptocurrencies.
Q. What are you and Bcause looking for in Korea?
We were out here in Seoul for Block Seoul recently. But another reason for the visit is to raise capital. We are currently talking to potential investors and partners for funding and strategic partnering.
Also, we would like to meet with some of the high volume exchanges for potential partnerships to marry retail liquidity with institutional liquidity, which would create a much more robust marketplace.
Q. A lot of companies have suffered as a result of the 2018 bear market, especially those focused on mining. How is the mining business doing nowadays?
Well, it is a tough business, but you will just have to look at how much you are paying to mine Bitcoin at the end of the year.
Q. Can you comment on the conflict between Bcause and the Virginia Beach community?
There is no question about that. Everybody has their own personal view, but we certainly did not do what we did without getting the approval of regulatory bodies or government officials in the area to get the licensing necessary to put the facility up.
However, when the facility was set up, we got a partial grant from the community thanking us for the jobs created from the facility itself.
Q. What is your prospect on the crypto industry?
I would say ‘Don’t sell at the bottom! HODL!’ I usually don’t give advice about when people should buy, but I’m positive that we will be okay in the long run or else I wouldn’t be doing it.
I am struck by how real this market is in terms of how markets react to a variety of phenomenon. Markets do tend wash out week longs before they ever go higher. This market is no different.
