Interview With Pankaj Balani, CEO of Delta.Exchange

A few weeks ago I checked out Delta.Exchange the first time and got in touch with the team as well. Now I am supporting Delta.Exchange in terms of search engine optimization. It is a cryptocurrency derivatives exchange which offers future contracts for different cryptocurrencies. They started in August 2018 with a single BTC-USD futures contract and listed several more afterwards, e.g. ETH, XRP and XLM. All contracts are settled in cryptocurrencies.

Trading Interface of Delta.Exchange:

Today I am publishing a brief interview with Pankaj, the CEO of Delta.Exchange:

CR1337: Hello Pankaj, thank you that you take your time for an interview with me. You are (CEO) at Delta.Exchange where you offer altcoin derivatives trading. When did you started the exchange and how has the journey been so far?

Pankaj: We launched operations on 15th Aug 2018. So we just completed 1 year of operations. It has been a great journey. We have done a number of new things in our space.

We were the first to offer BNB futures way back in Nov 2018 followed by BNB swaps earlier this year. We were also the first platform to offer swaps on LEO. We launched LEO swaps within a week of Bitfinex opening trading in spot markets.

We are also the only exchange to offer perpetual swaps on bunch of exotic Altcoins such as XTZ, ATOM, RVN, BAT etc. Perpetual swaps for these coins are only available with us. Along with this we have swaps & futures on larger names such as BTC, ETH, LTC, XRP. We have a total of 15 coins listed for trading of perpetual swaps, more than any player in the market.

We also offer stablecoin settled futures. This is a great product because it lets traders margin for their positions in USDC. So for example, if you are trading BTC or ETH futures on Delta Exchange you don’t have to be worried about your margin eroding if BTC or ETH go down.

We will continue to keep pushing the envelope in crypto derivatives and keep adding more innovative products. Soon you will see a couple of interesting interest rate products and options.

CR1337: To run a functional and safe exchange is not easy. How strong and qualified is the team behind Delta.Exchange?

Pankaj: Amongst the founders, we come from derivatives trading, investment research and technology backgrounds. I was part of UBS Asia derivatives desk in Hong Kong and have a good understanding of how derivatives markets work. I have spent over 6 year in the derivatives space. My co-founder Jitender comes from a rates trading and investment research background and was working with Citi and GIC, the sovereign fund of SG.

Saurabh, who is our third co-founder and CTO is a legend when it come to building systems for scale. In his experience he has solved for 20Mn requests per minute. This is much higher than where crypto exchanges are currently, in terms of scale. We feel very comfortable to have this skill in the team because in our business, ability to deliver systems that can handle scale is going to be of supreme importance.

For safety of user funds we use best in class custodians. All funds are stored in a multisig wallet and larger share is in cold wallets.

CR1337: Why do you think that it is a good idea to trade altcoins on margin and with leverage?

Pankaj: We believe that the industry has to grow beyond Bitcoin. We think that we will have a healthy mix of Altcoin and Bitcoin market cap. As that happens, it will create a natural need for Altcoin derivatives market. A derivatives market provides a way for players to hedge their risk and reduce the volatility of their holdings. Which makes it a must for those who own larger portions of these coins and those who are natural holders like projects themselves. This natural sell demand ties up beautifully with traders on the other hand, who are looking to ride out momentum and hence naturally end up choosing platform that offer leverage, as it provides better utilisation of capital. Hence we feel that derivatives markets on Altcoin are inevitable.

CR1337: What are the plans for the next 1-5-10 years? Is there a special philosophy you are following?

Pankaj: These are very long periods of time given the pace at which we are working and growing. Over the next 3 months you will see options trading coming on Delta Exchange. We have been working on this for a few months now. We will be launching options on Bitcoin and Altcoins.

We are also experimenting with a few volatility related products and interest rates products. Rates in cryptos vary massively from platform to platform, central to de-central, what is implied via futures etc. We believe that rates for cryptos at different venues will start to converge closer together. Derivative products on rates will help facilitate this convergence. We are looking to launch a product on those lines.

We follow a very simple philosophy, we are building a destination for crypto trades, small and large, to find liquidity for trading of derivatives on any coin. We will continuously keep adding more coins and more derivative products.

CR1337: Thank you so much for your time! Looking forward to see Delta growing!

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