(Bloomberg) -- A fledgling Chinese brokerage is betting that investors will flock to bot trading to capitalize on the price swings in the $300 billion cryptocurrency market.BitUniverse, a startup that counts China’s Shunwei Capital and ZhenFund among its backers, has a monthly trading volume of around $5 billion on its online brokerage platform, according to Beijing-based founder Chen Yong. And more than 80% of its 100,000-some users run a grid trading algorithm every day, which automates buy and sell orders at certain regular intervals to capitalize on normal price volatility, Chen said.The cryptocurrency boom of recent years has given birth to major exchange operators like Binance and Huobi -- but brokerage services, which play a major role in traditional financial markets, aren’t much of a presence in the arena.BitUniverse is among a new wave of startups hoping to become a one-stop platform for regular people to trade crypto like Bitcoin and Ether, providing them with the liquidity from a multitude of exchanges. Its algorithms help users place orders 24 hours a day, seven days a week -- which some exchanges offer but is more rare from brokerages.“Trading bots let users overcome their humanity flaws and become a rational investor,” Chen said in a video interview. That doesn’t mean they will be guaranteed to make money, he adds, but they will “at least lose less.”Chen, who co-founded utility app provider Cheetah Mobile Inc., started his crypto venture at the end of 2017. BitUniverse’s Pionex brokerage service launched a year ago and has already become a major cash cow for the firm. BitUniverse, which is incorporated in Singapore, now makes roughly $3 million a month by charging a fee of 0.05% per transaction to traders in places from China to Europe and the U.S, Chen said. About 80% of Pionex’s trades are fulfilled by the order books on Binance and Huobi, he said.In 2018, BitUniverse raised close to $10 million from prominent Chinese venture capital firms Shunwei, ZhenFund and Gaorong Capital at a $50 million valuation, according to the company. Chen runs a team of around 80 people, most of whom are developers hailing from Chinese tech firms including Cheetah, Alibaba Group Holding Ltd. and Baidu Inc., he said. For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.
The Chinese online retail giant has more than doubled in 2020. It may not be too late to hop on the hot stock.
(Bloomberg) -- Koh Boon Hwee, one of Singapore’s most prominent executives, is teaming with four fellow investors to try and raise $100 million for a new venture firm targeting Southeast Asia.Koh, former chairman of DBS Group Holdings Ltd. and Singapore Telecommunications Ltd., and his partners think the time is right to start a new venture capital firm, despite challenges from the coronavirus pandemic. They’ll target early-stage investments in fintech, consumer internet, enterprise software, logistics, healthcare and education.Altara Ventures is launching as China’s tech behemoths expand into Southeast Asia in the face of growing hostility from the U.S. and other major markets. Tencent Holdings Ltd. has picked Singapore for its beachhead beyond China, joining rivals Alibaba Group Holding Ltd. and ByteDance Ltd. in the race to build up a global presence closer to home.Read more: How a Top Executive in Singapore Decided He Had to Fire Himself“The level of international investments into Southeast Asia is going to increase even more with ongoing global trade dynamics between geopolitical powers,” said Dave Ng, one of the new firm’s five general partners. “That’s going to continue to boost the ecosystem here.”Ng and Gavin Teo previously worked at B Capital, Facebook Inc. co-founder Eduardo Saverin’s venture capital house. The other three partners are Koh, Tan Chow Boon and Seow Kiat Wang, who founded Omni Industries Ltd., an electronics components maker acquired by Celestica Inc. in 2001. The trio has backed more than 100 companies, including Razer Inc., and ran private equity firm Credence Partners Pte.“We are former entrepreneurs, business builders and seasoned investors and know what it takes to scale and exit,” said Koh, who spent over a decade on the board of Singaporean state investment firm Temasek Holdings Pte.Read more: Southeast Asian Tech Startup Investments Fall 13% in First HalfFor more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2020 Bloomberg L.P.