The year 2020 marked a pivotal shift in the cryptocurrency landscape — widely recognized as the “year of derivatives.” As the era of rapid gains from altcoin pumps began to fade and spot market growth plateaued, exchanges turned their focus toward derivatives, particularly perpetual contracts, to secure sustainable revenue streams. With higher transaction fees and consistent trading volume driven by market volatility, derivatives have emerged as a critical pillar for exchange profitability — even in bear markets.
Industry projections indicate that by the end of 2020, the derivatives market would surpass the spot market by over two times in trading volume. This explosive growth has attracted new players aiming to capture market share, among them ABIT, a derivatives-focused exchange with a clear strategy for differentiation.
The Emergence of ABIT
Founded in Australia in 2019, ABIT secured regulatory compliance early by obtaining an Austrac-issued cryptocurrency exchange license, placing it under formal Australian financial regulations. By October of that year, its beta platform launched, quickly amassing over 100,000 registered users — with more than 50% completing KYC verification. The user base spans 54 countries, with top representation from Indonesia, Malaysia, Hong Kong, Taiwan, and Australia.
Despite global disruptions caused by the pandemic, ABIT advanced steadily toward its full product rollout. In early May, the official version of ABIT launched with significant upgrades across key functionalities:
- Enhanced spot trading engine: Improved matching speed, responsiveness, and user experience, supporting over 200,000 TPS.
- Perpetual contract support: Offering both coin-margined and USDT-margined contracts, dual-position mode, and multi-order types.
- Derivatives-as-a-service (DaaS) cloud platform: Enables third-party exchanges to integrate ABIT’s derivative tools while sharing liquidity and order book depth.
- Expanded auxiliary services: Including credit card on-ramps and real-time blockchain data monitoring embedded directly into trading interfaces.
👉 Discover how next-gen trading platforms are reshaping crypto derivatives.
Building a Competitive Edge in a Crowded Space
While major exchanges dominate user volume, product homogenization has led to market fatigue around derivative offerings. Standing out requires more than feature parity — it demands technical excellence and strategic innovation.
ABIT’s leadership emphasizes that true differentiation lies in foundational capabilities often overlooked: system performance, reliability of price marking, and liquidity depth. Few exchanges can independently develop and maintain high-performance contract systems; many rely on third-party "contract cloud" providers. ABIT, however, built its infrastructure in-house using a distributed microservices architecture designed for high availability and load balancing.
Their matching engine supports over 10,000 TPS for futures contracts, far exceeding typical demands for a new exchange. This over-provisioning ensures resilience during extreme market conditions — such as the historic $16.8 billion single-day liquidation event on March 12 — when even leading platforms suffered outages.
To further strengthen reliability, ABIT employs a multi-layered system monitoring framework featuring proactive alerts and automated failover mechanisms. In the event of hardware failure, network disruption, or software anomalies, the system automatically switches to backup nodes or initiates recovery protocols.
Liquidity and User Experience: The Dual Engines of Growth
Deep order books are essential for a successful derivatives exchange. ABIT leverages its TABIT Cloud (a white-label and B2B derivatives solution) to aggregate cross-border liquidity. To date, ABIT has pre-signed partnerships with 20 global exchanges — primarily niche platforms serving non-English-speaking regions, fiat gateways, and traditional financial institutions with established user bases.
By Q2 2020, this network is expected to expand to between 40 and 50 partners. These collaborations enable ABIT to pool liquidity without direct competition, creating a mutually beneficial ecosystem.
User experience remains another core focus. While most platforms offer similar features — such as copy trading — implementation flaws like high slippage degrade performance. ABIT aims to solve these pain points through rapid iteration.
“We’re not just copying what’s out there,” said an ABIT representative. “In two months, we’ll launch a trading mechanism you haven’t seen before — one designed for real user needs.”
This agility gives ABIT an edge over larger competitors constrained by legacy systems and conservative rollout strategies. As a lean organization with a clearly defined user profile, ABIT can innovate faster within specific niches.
Platform Tokenomics: Creating Sustainable Value with AB
Like all major exchanges, ABIT’s long-term success hinges on its native token — AB — which plays a central role in both utility and economic sustainability.
Utility Value
AB serves as the sole ecosystem token across ABIT’s platform:
- For retail users (C-side): Fee discounts, margin collateral for contracts, voting rights on platform decisions.
- For institutional partners (B-side): Required holdings for becoming super nodes, OTC market makers, or brokers. Clients using AB to pay for TABIT Cloud services receive preferential pricing.
Every use case is designed so that the tangible benefits exceed the token’s current market value — incentivizing holding and active participation.
Holding Value
Beyond utility, AB’s value is reinforced through:
- Monthly buybacks funded by a fixed percentage of trading fees.
- Exclusive access to IEO allocations and project airdrops.
- Community rewards via promotional campaigns (e.g., bonus gifts for trying new features).
While direct profit-sharing is avoided due to regulatory concerns, targeted incentives ensure holders benefit from platform growth. The goal? To create a self-reinforcing cycle where increased usage drives demand for AB, which in turn enhances platform engagement.
Winning the Battle for User Acquisition
With tightening global regulations — from FATF guidelines to crackdowns in China — onboarding new users has become increasingly difficult. Exchanges now face a "traffic bottleneck" in a shrinking pool of accessible investors.
ABIT’s growth strategy centers on two unique advantages:
1. Localized Expansion in Emerging Markets
While dominant exchanges rely on brand recognition to penetrate Asia-Pacific regions, ABIT focuses on localized market development. Countries like Indonesia (which issued its first crypto licenses in late 2019) and India (recently lifting its crypto ban) represent massive untapped populations.
ABIT’s team includes professionals from Bangladesh, Malaysia, Indonesia, India, Hong Kong, and Australia — giving it deep cultural and operational insights into South and Southeast Asia. This cross-cultural expertise allows for tailored marketing, compliance navigation, and community building.
👉 See how regional expansion is fueling the next wave of crypto adoption.
2. Cross-Market Investor Onboarding
Derivatives traders often come from traditional finance backgrounds — forex, CFDs, or U.S. stock markets. These risk-tolerant investors are already familiar with leveraged products but lack seamless access to crypto derivatives.
ABIT’s team draws from traditional finance experience, enabling them to design intuitive products and run targeted campaigns that resonate with this audience. By bridging crypto with conventional financial instruments, ABIT aims to unlock a vast reservoir of crossover users.
Frequently Asked Questions
Q: Is ABIT regulated?
A: Yes. ABIT operates under an Austrac-issued license in Australia and complies with local financial regulations.
Q: What makes ABIT’s contract system different?
A: It’s built in-house with high-performance architecture (10k+ TPS), real-time risk management, and deep liquidity via its DaaS cloud network.
Q: Can other exchanges use ABIT’s technology?
A: Yes. Through TABIT Cloud, exchanges can embed ABIT’s derivative engine while sharing aggregated order depth.
Q: How does AB token generate value for holders?
A: Through fee discounts, staking utilities, buyback-and-burn programs, exclusive event access, and community incentives.
Q: Does ABIT support USDT and coin-margined contracts?
A: Yes. Both contract types are supported with dual-position functionality.
Q: Where is ABIT’s primary market focus?
A: The Asia-Pacific region — especially emerging markets like Indonesia and India — with plans to attract traditional finance traders globally.
👉 Explore cutting-edge exchange innovations transforming digital asset trading today.
Final Thoughts
In a saturated exchange landscape dominated by giants, ABIT’s path forward lies not in imitation but in specialization. By combining regulatory compliance, technical superiority, strategic partnerships, and localized growth tactics, it positions itself as more than just another entrant — but as a potential catalyst for broader market evolution.
As the line between traditional finance and crypto blurs, exchanges that understand both worlds — and act decisively — will define the future. For ABIT, that future starts now.