Injective Survey Suggests Many Traders Use Centralized and Decentralized Exchanges | Video

It’s trading week at the coin counter. And a recent survey found that 64% of crypto traders are focused on merging injections. She recently surveyed DeFi traders to get a better understanding of how professional and amateur traders approach this space. Eric Chen, co-founder and CEO of injective, joins the discussion. Welcome to the show, Eric. Hey, thanks for having me. Thanks for being there. Now before we get to the survey, I wanted to talk about Injection’s native token. It’s up over 1000% this year and is supported by the likes of B and Mark Cuban. Talk to us about the progress the project has made over the year and why do you think so many people are excited about it? Yes. So I think that at Injective Labs, you know, we’ve been, you know, continually building and shipping new products, um, you know, on schedule, and we’ve been, you know, relatively more consistent in terms of planning effort terms, regardless of market conditions . And I think once, you know, it’s certainly a pleasant surprise that there are a lot more firms and, you know, companies joining the injection ecosystem and contributing to different aspects of the chain and the network itself and a lot more stakeholders these days. Um and yeah, it’s really exciting to see them all come together and work towards a better financial future. All right, let’s start this survey. Talk to us now about your sample size. How many retailers did you survey? What did you want to find out? Yes. So one of the most interesting aspects, I think, is that about 63 or 64% of most respondents are involved in both decentralized and decentralized exchanges. Um, and then, you know, the 64% typically work on the holing strategy or long-term holding, you know, going for a lower frequency and maybe, you know, deploying our capital in a much more, you know, passive way Away. Um, whereas just, you know, I think about 32% are focused on day trading, you know, longshore strategies and discretionary trading. And there is certainly a wide variety of others. Um, and then, uh, I think, you know, it’s not surprising that 62% or so believe that, you know, participation in the D-Five projects is driven in part, you know, by the incentive, that these D-Five projects offer. This motivated them to take part in all these projects. And yeah, overall it’s been very, very promising, and I think that number will continue to rise to the point where it will be, you know, over 80 percent on both gender indices, like many, how many dealers were surveyed? Um, I don’t have the company number handy. Um, but you know, I think it’s in the range of uh, hundreds. OK. And the 64% that said they’re failing, we feel at all that people can say that they’re long-term players, but when we actually see their, their, their trading statements, that’s how it always looks quite different than what they always claim. I mean, you know, you asked me if I was a long-term investor, would I say yes, but my statements don’t say that. So do we have any idea how many people claim to be long-term holders and how frequently they make trades? Um, so obviously, you know, like it’s a fair, fair, fair invasion of privacy if you check if you can ask them how often, but you can ask them how often, how Have they been asked how often they act? Yes. So, basically, um, usually, you know, this uh description of how to identify yourself as a long-term holder or as a strategy that you can sustain. Um, it’s not, you know, what do you think, you know, like a hodler and, you know, uh, uh, faith or, you know, were like long-term investors and like projects etc. It goes, you know, around the frequency of your trading, where you might, you know, make a trade once a week or once a month. And these all fall under the lower frequency and, as you know, can be placed more in the Hodler category. Oh dear God. So short in fact that this is incredibly short notice. I think that’s not a threshold, is it? But when you say they’re a long-term holder and say they’re holding it for a month, that’s not long-term, that is, that’s incredibly short-term. Yes, it is very difficult to draw the line. And you know, typically you see people trading five or six times a day when they’re, you know, using their strategy, if not hundreds and thousands of their algorithms. So, you know, draw a line of, you know, what’s like a low frequency, you know, longer term strategy, normally they would draw it at about a week or a month plus uh frequency. Yes, I, I skip through everything you know every 12 seconds. Does that count? I think you fall more into the realm of day trading. Then you have an idea what assets these traders are holding on to when they say they’re huddling. Um, I’m not entirely sure, but I think an interesting finding is that paddling means you’re training at a low frequency, but at the same time, um, there’s also about, I think, 4% you know, that will used in liquidity protocols and yield farming. So that means there could be some overlap between those who are, you know, building a long-term position or, you know, trading and those who are low frequency. But, you know, Done did this in a way by providing liquidity, which, you know, implies a much more dynamic allocation. Um, and basically, you know, we haven’t really examined the asset that they own in particular. But um, I think, you know, usually it’s like the majority, you know, hold the majors and follow like a power law. In order. And I took this statistic from the survey. Only about 10% of people said they were unsure whether they were operating on a centralized or decentralized exchange. I guess give us some more qualitative data here. What does this tell you about decentralization? Have you asked them why they are unable to differentiate between a centralized and a decentralized exchange, especially when trading on a daily or weekly basis? Yes, that is actually a very, very interesting finding. And honestly, I think that’s a promising sign for the development of Defi among many Defi projects. The goal is for users to have as smooth an onboarding experience and user experience as they might not necessarily be able to critically question. Oh, I trade on a centralized platform or I trade on a decentralized platform. And certainly, you know, um, Helix aims to achieve that by having all the centralized exchange capabilities and capabilities. But I think in this case, you know, there’s certainly a group of people that are being interviewed that are more on the inexperienced end of the spectrum, or it could be on the other end. That’s experience where, you know, at the bottom end, like they don’t know, they don’t necessarily know, understand the difference between a decentralized or centralized platform. They’re just looking for venues with enough liquidity to execute their strategy or activity or maybe, you know, driven by incentives to join a particular platform where, you know, they don’t have the sophistication to recognize them Oh , because the centralized or the decentralized or maybe not too relevant to them. But at the higher end of complexity, there might also be cases where they, you know, have a more nuanced definition of what a centralized or a decentralized venue is. Um, and that means that, you know, for a skillful self-manager, um and um, you know, um, completely, you know, partially on the chain, not completely on the chain, um, until, in their minds could it be like, you know, more like a centralized exchange than a decentralized exchange. Okay, Eric, we have to leave it at that. Thank you for joining us and sharing some of these insights. Am grateful. Thank you. That was Eric Chen, CEO and co-founder of injective.

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