Free Web NovelChapter 562: Chapter 247: Not Even Dogs Would Buy (Part 2)
For example, right now, someone opens a short contract, and the platform directly takes it over. When the other party gets liquidated, they can smoothly pocket the money.
It’s not a violation, just an internal privilege, just faster than others.
If at this moment someone opens a long position, the platform doesn’t intervene, letting other players take over the contract and only earning the handling fee. If the long position makes money later, the platform doesn’t need to pay out.
This is perfect.
Bitcoin fluctuates greatly, with major swings every year. It’s easy to earn nerve-wracking profits from those contracts.
Especially as the platform’s market share grows, there are more contracts, and more opportunities to act.
Being both the referee and the participant, no one is fearful regarding the rules.
Li Xiao had anticipated earlier that Li Yang would definitely refuse, so he said, "Bro, you don’t need to show up; I can handle it myself. You provide the money, I provide the Bitcoin, and we split the shares fifty-fifty. Even if something really happens, it won’t be traced back to you, and I’ll take all the blame."
Li Yang rejected again without a second thought, "Forget it, forget it. I’m not the kind of person who likes to do illegal and criminal things."
Li Xiao fell silent.
He had already made significant concessions.
Yet there were very few wealthy people he knew, and even fewer who were willing to cooperate with him.
He also knew Yu Minhong, worth hundreds of billions, but unfortunately, he couldn’t collaborate with him now.
Li Xiao finally said helplessly, "Then let me sell you ten thousand Bitcois, bro."
After selling, he would break even. In the current market, he no longer needs to hold the bottom line.
It’s a pity, though, missing this timing might be difficult in the future.
During the Bitcoin rising phase, running a platform is the most profitable, and he believes transaction volumes would definitely pick up within a few years.
Li Yang thought for a moment, "How about this, old bro, sell me twenty thousand pieces, and I’ll introduce you to someone who might be interested in your platform idea."
Li Xiao was immediately shocked.
He had thought he’d lost the opportunity in this lifetime...
"Alright!"
...
Thus, on the third day, Li Xiao met a very beautiful woman in a tea house.
The woman was very young and fashionable.
He proactively extended his hand in greeting, "Miss Chen, I am Li Xiao."
After shaking hands with him, Chen Peipei sat down across from him.
She was pushed to the forefront by Li Yang.
The main reason is... she is a foreigner.
Until yesterday, she didn’t even know what Bitcoin was because she wasn’t concerned about those things.
Now she knows, but isn’t much better informed, as she still doesn’t know how Bitcoin is traded.
Chen Peipei said to Li Xiao, "I’m personally interested in Bitcoin, but I’ve heard Mr. Li’s cooperation proposal, and I’m not very satisfied with it."
Li Xiao hurriedly said, "Miss Chen, feel free to share any opinions."
Chen Peipei: "Before we begin, may I ask how many Bitcoin you have?"
Li Xiao didn’t hesitate and immediately said, "73,000 pieces."
Chen Peipei thought for a while, "Using current prices, that equates to more than $7,000,000, yet setting up such a trading platform, the most important expense is the promotional cost. Even selling all these Bitcoins wouldn’t be enough to support that."
Li Xiao said, "Indeed, but acquiring tens of thousands of Bitcoins from the market at once is unrealistic. The money spent could far exceed tens of millions and might require two to three hundred million US dollars."
Currently, the low transaction volume has its pros and cons.
Attempting to purchase large quantities of Bitcoin would definitely drive the price up.
Buying tens of thousands of coins in the short term could potentially double the Bitcoin price.
Chen Peipei said, "But I only need to buy a few thousand pieces to sufficiently support a trading platform’s daily needs..."
A trading platform primarily consists of three functions: one is conducting spot transactions, facilitating settlements between users.
The second when someone opens a short contract, selling Bitcoin to them, which requires the exchange to hold a certain amount of Bitcoin.
The third when opening a long position, purchasing a certain amount of Bitcoin from the market for hedging, facilitating later agreement fulfillment. ƒrēewebnoѵёl.cσm
Essentially it’s similar to futures but virtual currency has slight differences from physical futures.
Li Xiao’s capital hasn’t played a significant role at this time.
"So what are Miss Chen’s requirements..."
Chen Peipei gently tapped the table with her fingernails, "I’ll put up two hundred million US dollars, you provide all the Bitcoins, and we’ll establish an exchange. I’ll take a 70% stake, you’ll take 30%."
Li Xiao was silent for a moment.
If it had been before, he wouldn’t agree, as he firmly believed Bitcoin could rise to ten thousand US dollars or even higher... but just the day before yesterday, he sold twenty thousand to Li Yang, not only recovering costs but also earning nearly ten million USD.
With a profit-taking mindset, he’s not as resistant this time.
Even if it fails, he’s still worth over a billion.
If it succeeds, not saying 30%, even only 20%, he believes it won’t earn less than the current Bitcoin holdings.
The main thing is the platform is a reliable venture, though slightly non-compliant domestically, but at least it’s a business.
At worst, he could move abroad.
"Okay, it’s settled!"
Chen Peipei stood up, reaching out her hand, "Pleasure working together!"
...
After several days of discussions, both went to Port City where they founded a company and signed documents.
Then the main task was Li Xiao forming the team, whereas Chen Peipei promoted the Bitcoin trading platform named Huobi.
Out of her two hundred million investment, a hundred and sixty million would be used there, while the remaining forty million was partly for staff salaries and partly for collecting other virtual currencies on the market, such as Ethereum.
