Matrixport vs Exchanges: A Comparison of User Relationships in Business Models
This article explores the essential differences in the relationship between asset service platforms in the cryptocurrency field and users. By comparing Matrixport as a value-added service platform for crypto asset investment with the business model of cryptocurrency exchanges, it analyzes the core differences in the relationship between these two tracks and user interests.In recent months, with the approval of spot ETH on Ethereum and the approaching U.S. elections, the cryptocurrency market has once again attracted widespread attention. Although the current market is in a downturn, it recently experienced a small bull market, with Bitcoin slightly breaking its historical high. While most people are familiar with exchange platforms like Binance, OKX, and Coinbase, there are also some outstanding companies in the cryptocurrency industry worth noting.
In today's article, we will introduce a cryptocurrency company that was recently valued at $11 billion and made it onto the “2024 Global Unicorn List” published by Hurun Research Institute—Matrixport (referred to as M Station by its fans). The company was recognized by CB Insights in 2022 as one of the 50 most promising blockchain and cryptocurrency companies globally.
Matrixport vs Exchanges Overview
As Asia's largest crypto asset management platform, Matrixport's services encompass lending, wealth management, asset appreciation, and custody. Its product line covers various risk levels, suitable for most users looking to earn returns through cryptocurrencies.
Founded in 2019, Matrixport is headquartered in Singapore and has offices in multiple countries and regions worldwide. Its founding team includes several leaders in the crypto industry, including one of the co-founders of Bitmain, Wu Jihan. Despite having such a strong background, Matrixport has operated quietly over the past five years, which is quite rare in the cryptocurrency industry. After all, traffic in the cryptocurrency sector is akin to cash flow, and many crypto companies often rely on high-profile operations to gain attention and attract traffic. However, Matrixport has chosen to remain pragmatic, focusing on improving the quality of its products and services.
In contrast, most cryptocurrency users are already very familiar with exchange platforms, so we will not elaborate further here. However, the crypto asset management sector that Matrixport operates in is often overlooked. As a global leader and Asia's largest crypto asset management platform, Matrixport provides comprehensive asset management solutions, with a business model that significantly differs from that of exchanges.
This article will explore the differences in business models between Matrixport and exchanges, analyze their performance and fundamental differences in terms of user interests, and determine which platform truly prioritizes making money for its users as its mission.
Comprehensive Comparison of Matrixport and Exchanges
Key comparison points between Matrixport and exchanges:
From the simple comparison in the table above, it is evident that Matrixport and exchanges have fundamental differences in their business models. Exchanges generate revenue by directly charging users transaction fees, which means that regardless of whether users make a profit or incur a loss, exchanges can profit from the transactions, resulting in a relatively independent interest relationship between exchanges and users.
In contrast, Matrixport's business model is more unique: it profits by taking a portion of the actual profits earned by users as service fees. This means that Matrixport can only make a profit when users genuinely earn money, ensuring that the interests of the platform and users remain aligned.
Matrixport's business model dictates that the platform must prioritize making profits for users as its fundamental starting point and mission, and Matrixport operates accordingly. This is why Matrixport has maintained a good track record over more than five years of steady operation.
History and Advantages of Matrixport
Matrixport was founded in 2019, at a time when most crypto companies were exchanges, while Matrixport chose the path of crypto asset management, innovatively developing a series of high-quality products, including dual currency wealth management.
In the more than five years since its establishment in 2019, Matrixport has experienced market fluctuations, witnessing the ups and downs of the cryptocurrency industry and the rise and fall of so-called "competing platforms." For example, the FTX collapse in 2021 triggered a series of chain reactions that led to the closure of many crypto asset management platforms, but Matrixport has consistently adhered to its original intention of making money for users, strictly controlling asset risks, and maintaining a good track record.
In the rapidly changing field of cryptocurrency, a company that has operated steadily for over five years has sufficiently proven its reliability and credibility, and Matrixport is entering its sixth year. Matrixport has now obtained licenses for a trust company in Hong Kong, a lending license, compliance authorization from the UK's FCA, and a money service license in the U.S., and is a member of the Swiss FINMA SRO-VFQ, further demonstrating the platform's compliance and reliability.
Today, Matrixport has developed into a global leader and Asia's largest crypto financial services hub, with its product and service offerings covering users in multiple countries and regions worldwide, providing seamless connections to trading operations across major exchanges (supporting trading products from Binance and OKX), lending, wealth management, and a series of crypto asset management services. The platform currently manages and holds over $10 billion in assets, with a monthly trading volume exceeding $5 billion.
Core Mission of Matrixport - Putting User Interests First
Information obtained from official Matrixport channels indicates that Matrixport is committed to building an entry-level crypto asset ecosystem, providing cryptocurrency users with a super account that integrates functions such as asset trading, investment, OTC trading, and investment research. By offering a diverse range of products and professional services, Matrixport helps users achieve continuous asset appreciation.
As mentioned earlier, Matrixport's business model is entirely different from that of exchanges. The revenue of exchanges primarily comes from charging users transaction fees, while Matrixport generates revenue by taking service fees from the profits earned for users. This model ensures that the relationship between the platform and users is genuinely a community of shared interests, meaning Matrixport must prioritize user interests and create actual profits for them. This is the most fundamental difference between Matrixport and exchanges.
Recently, Matrixport's visibility in the market has significantly increased, including aspects such as product development, app upgrades, and brand upgrades. This series of initiatives indicates that Matrixport will continue to uphold its company philosophy of putting user interests first while expanding its user base. As a well-established company founded by leaders in the crypto industry and operating steadily for nearly six years, Matrixport brings new hope to users in the cryptocurrency sector. The recent collapses in the crypto space have caused varying degrees of harm to retail investors, and Matrixport's steady operation and user-first philosophy are precisely what the current crypto market urgently needs.
Let us look forward to more developments from Matrixport and anticipate that this crypto unicorn company will continue to bring more surprises to the cryptocurrency industry and its users.
Here are the official links for Matrixport:
