Original Author: Zen, PANews

Quantrend Technology is a company specializing in AI cryptocurrency quantitative trading, established in 2020. In just over three years, it has taken the top three global contract trading volumes for Bitcoin and Ethereum, and 10% of Binance's global contract trading volume. Its high-frequency trading system has achieved an annual trading volume of $300 billion. Although none of the three founders have a background in traditional finance, through their hard work and unity, they have finally brought Quantrend to the world stage.

Different Paths Lead to the Same Goal: The Story of Quantrend Building the Core "Iron Triangle"

Quantrend's founder, Chen Taiyuan, is known as a "genius" on the internet in Taiwan. He started his first company at the age of 19 while pursuing his studies and obtained a master's degree in telecommunications engineering from National Taiwan University at the age of 22. As a serial entrepreneur, Chen Taiyuan has developed dating apps such as "Lian Lian Xiaozhan" and "If You Are the One," and co-founded 17 Media with "Brother Maji" Huang Licheng in 2015, which became popular. The live streaming app grew rapidly after its launch, reaching tens of millions of downloads in just 8 months.

However, at the peak of 17 Media's success, Chen Taiyuan chose to leave in 2016 and began to focus all his energy on the blockchain and cryptocurrency industry. In August of the following year, Chen Taiyuan and others founded Cobinhood, the world's first zero-fee cryptocurrency exchange, setting a new record for ICOs in Taiwan at the time. In addition, they also launched DEXON, Taiwan's first independently developed high-speed underlying public chain platform in 2019, with a throughput of 12,000 transactions per second (TPS).

Shortly after the launch of DEXON, the company's senior management split due to differences in philosophy and disputes over management rights. Chen Taiyuan found himself in a difficult situation, and only Xu Jingteng was willing to stand by his side, helping him sort out the situation and share the burden. Xu Jingteng is a key figure in the American anti-aging direct selling brand NU SKIN. Because Chen Taiyuan briefly joined the brand during his university days, the two met and formed a long-lasting friendship. At that time, the two had no business dealings, and Xu Jingteng, as a "super salesman," had little understanding of cryptocurrency.

After completing the related aftermath work and finally getting through the darkest moment of the Cobinhood incident, Chen Taiyuan approached Xu Jingteng and invited him to be a co-founder of Quantrend. "This (Quantrend) is a really good project that can help clients grow their assets, provide deep liquidity to exchanges, and stabilize the industry in various aspects, rather than just speculating on coins and projects for hype," Xu Jingteng said. Out of ideological agreement, he eventually joined Quantrend and served as the general manager, providing support for the company's business expansion and organizational management with his extensive business experience.

However, to create a world-class product, it was not enough for Chen Taiyuan alone to be responsible for the technical aspects. They needed an expert who he could approve of and discuss technical issues with. Eventually, they found Dai Zhiyang, the co-founder of Taiwan's most famous online forum, PTT. Dai Zhiyang has been at the forefront of the technology industry since the early days of the internet in Taiwan during his university years. After founding the online forum, he also participated in music streaming platform KKBOX and e-commerce electronic payment fields.

Dai Zhiyang started mining in 2012 and began to get involved in cryptocurrency and blockchain. He believes that blockchain is the next decisive revolution of the internet, which will completely overturn the entire world, possibly even overthrowing so-called countries and future businesses. Starting in 2018 and 2019, he has been promoting the entire blockchain industry and various chains and coins. Around the end of 2020, when he encountered some bottlenecks, Chen Taiyuan found him. After a brief week of contact and communication, he decided to enter this field and serve as the chief technology officer at Quantrend. Dai Zhiyang stated that Xu Jingteng played the most crucial role in his decision-making process. The core team of the "Iron Triangle" was thus formed.

Chen Taiyuan proposed ideas and strategies; Dai Zhiyang was responsible for implementing them with technology; Xu Jingteng focused on company operations and business expansion. Dai Zhiyang said, "The relationship between the three of us is complementary and lubricating."

Twists and Turns: From Scratch to Becoming a Top 10 High-Frequency Trader Globally

Similar to traditional market makers, the operation mode of cryptocurrency market makers is mainly to provide liquidity and market depth for the cryptocurrency market and profit from the process. Therefore, companies like Jump Trading and Wintermute, often heard of, are either quantitative trading companies involved in stocks, futures, and forex globally, or their core personnel come from traditional financial institutions with strong technical and financial backgrounds, making cryptocurrency market making a familiar territory for them. However, Quantrend is completely different. Its core founders have no background in the financial industry, making it quite challenging to carve out a niche.

Established during the COVID-19 pandemic, Quantrend underwent multiple technical adjustments in its strategy. Quantitative trading requires handling massive amounts of information and data. Chen Taiyuan and Dai Zhiyang's team initially used Python to process it, but soon found its efficiency to be significantly inadequate. They then tried Go language, which also did not meet the expected standards, before finally choosing Rust, a niche but efficient language. The process of technological transformation sounds simple, but it was actually extremely difficult. Dai Zhiyang, responsible for system construction, said, "It may take 1 to 2 years for a typical team to change the programming language to develop a product, but we only need a few months and can continue to evolve." The cost was that everyone often spent seven to eight hours locked in a small room at a time.

Quantrend is like an app built on a trading platform, providing value-added services to institutions or VIP users, while also providing liquidity and trading volume to exchanges. Chen Taiyuan stated in an interview with PANews, "We are more focused on maintaining market order and stability, and then developing our AI technology from the root."

In the fall of 2021, Quantrend completed the architecture of its high-frequency trading system, trained predictive AI models, and obtained the highest VIP level at the FTX exchange. With everything in place, high-frequency trading was officially launched, which should have been a significant milestone. However, within a few days, the net value, which had been rising steadily, began to reverse and plummet at a certain point in time. After adjusting the parameters and relaunching, it only took a few hours for the net value to shift from a steady rise to a steep decline again. Quantrend began to suspect foul play and conducted experiments, all of which pointed to the same conclusion: FTX was cheating. A month later, Quantrend ultimately had to make a tough decision, selling off all FTT holdings, delisting all strategies, and starting over from scratch.

It wasn't until July 2022, after half a year, that Quantrend resumed trading on Binance. However, by this time, the cryptocurrency market had already entered a cold winter, and all practitioners were eagerly awaiting a bull market, only to be greeted first by FTX's collapse. Due to Quantrend's early asset transfer upon discovering FTX's wrongdoing, it managed to escape unscathed from this turmoil.

After "switching" to the Binance platform, Quantrend has steadily developed for over a year. From the perspective of Binance's perpetual contracts, Quantrend has basically entered the top ten traders in the world, with its XAOS trading system generating a trading volume of up to $300 billion in a year. Earlier this year, Quantrend also achieved the highest market maker level and VIP level on OKX. It can be said that regardless of market conditions, its high-frequency trading system has been validated and fully recognized by the market.

As a startup, Quantrend also provides asset management services, such as the Managed Sub-Account (MSA) service available to Binance VIP 3 and above users. The managed sub-account allows investors to entrust trades to a professional trading team while maintaining the flexibility of asset management. It offers the same discounted VIP rates as the trading team and ensures the security of funds. With its flexible operation, it meets the needs of investors for account differentiation and supports investors in creating multiple managed sub-accounts for use by different trading teams, thus adapting to the diverse market demands for asset management.

Looking to the Future: Seeking Cooperation with Major Capital

At present, in terms of trading volume, strategies, DNS systems, and relationships and partnerships with exchanges, Quantrend is basically ready. With expectations of a bull market, a positive market also means the need for a larger capital base. As a high-frequency trader ranking near the top ten globally, Quantrend will seek cooperation with international capital this year to expand its overall trading volume.

As for its asset management services, Quantrend will further highlight its uniqueness and differentiation in the market, including providing value-added services through managed sub-accounts or seeking cooperation with traditional investment banks. "Through the custody services of these banks, letting the banks guarantee the security of customer funds, and then providing them with relatively safe and high-yield products, I think this is what we will do this year."

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