WuBlockchain Talks with BitMart Founder Sheldon: From Bitcoin in College to 7 Years of Entrepreneurship and U.S. Regulations

/EIN News/ -- Mahe, Seychelles, March 18, 2025 (GLOBE NEWSWIRE) -- Celebrating BitMart’s 7th anniversary, Wu Blockchain—one of the cryptocurrency industry's leading media platforms—conducted an exclusive interview with BitMart founder Sheldon. The interview provides an in-depth retrospective on Sheldon's journey from discovering Bitcoin as a college student to founding and scaling BitMart into a global digital asset exchange. It also explores the exchange’s evolution over the past seven years, key industry trends, and insights into the regulatory landscape shaping the future of crypto trading.

The full interview is presented below.

Sheldon, founder of BitMart, first encountered Bitcoin as a college sophomore in 2013 after reading about an ASIC mining breakthrough. That summer, he attended a Bitcoin conference in Hangzhou, meeting industry figures like CZ, Star Xu, Mo Buyi, and James Gong.

After earning his master’s degree in 2017, he founded BitMart, which later secured investment from Fenbushi Capital in 2020. In 2024, BitMart launched its in-house derivatives system. With a CCO in place from day one, the exchange has maintained a relatively light regulatory burden.

BitMart’s user retention hinges on data asset appreciation and interactive services. While Bitcoin’s downside risk appears limited, the broader crypto market remains sluggish. If political leadership shifts in four years, stricter regulations could follow.

Encountering Bitcoin in Sophomore Year: Thought It Was Really Cool

Colin: Sheldon, this year marks the 7th anniversary of BitMart. Congratulations on your continued growth and overcoming numerous challenges along the way. Could you start by briefly introducing your background, including your educational experience and your story before entering the crypto space?

Sheldon: Recently, our platform celebrated its 7th anniversary. The company has actually been established for over 7 years, with about 9 months spent in preparation before our official launch on March 15, 2018, coinciding with the date of 3.15.

Let me briefly introduce my past experiences. I studied computer science at Hangzhou Dianzi University. This background allowed me to come into contact with blockchain early on, given the close relationship between computer science and blockchain. I first encountered Bitcoin in early 2013 while I was a sophomore, filled with interest in new technologies and eager to explore cutting-edge innovations.

At that time, I was still using Renren, a social media platform, where I operated my own small site on a platform called "Renren Xiaozhan," writing code and collecting interesting news in the tech field to share. One day, I came across a news article about Brooklyn, New York, mentioning two young people who improved ASIC mining algorithms, increasing Bitcoin mining speeds by hundreds of times. This news piqued my interest, and I began to delve deeper into Bitcoin.

At first, I was extremely excited, but to be honest, I only understood computers and programming and had no knowledge of finance. I considered Bitcoin to be a revolutionary technology that could change the world. From the perspective of financial freedom, it made global transfers free and convenient, which was an attractive concept for me at that time. Young people always pursue freedom, and I thought Bitcoin was really cool.

2013 Hangzhou Bitcoin Conference: Met CZ, Star, and Others

Colin: So, did you mine back then?

Sheldon: Yes! While I was still studying, I tried mining using my own computer. The industry was still small back then, and I often met people at offline events. For instance, during the summer of 2013, I attended a Bitcoin conference in Hangzhou and met people like CZ, Star Xu from OK, Jame Gong, Mo Buyi, and Nick Chong. Everyone participated out of enthusiasm for blockchain, and there was quite a bit of interaction, which allowed me to meet many future industry partners.

Colin: Did you continue to explore the industry after that?

Sheldon: During college, I did some blockchain development and even created my own coin, which was quite well-known in 2013. Afterwards, I chose to focus on my studies and went to Stevens Institute of Technology in New Jersey, USA, to pursue a master's degree in computer science. While academically returning to the traditional computer field, I continued to follow developments in blockchain.

Overall, Bitcoin indeed inspired me, especially the financial innovations it brought. What truly deepened my understanding of this industry was in 2016, when a fellow alumnus from my university, who had gone to the US before me and was working at SAP in Seattle, became the group leader of our overseas alumni association. We often chatted and exchanged views on blockchain and Bitcoin. During those years, I also attempted algorithmic trading and discussed related issues with him.

Sheldon: Later, I read the Ethereum white paper, and after finishing it, I felt invigorated. At that time, Ethereum's vision was to build a "world computer," putting computation and storage entirely on-chain. This model was more intuitive compared to Bitcoin, with a grander vision and broader imaginative space, along with richer practical application scenarios.

Colin: Was this in 2015?

Sheldon: It was in the second half of 2016, just before Ethereum's explosive growth. After reading its white paper, I felt it was a completely new world. Unlike Bitcoin's philosophy, Ethereum could support smart contracts and had greater extensibility, which elevated my understanding of blockchain to another dimension.

Subsequently, I and some classmates began to try coding and created some small applications on Ethereum. At the same time, I also participated in the cryptocurrency trading frenzy, accumulating some initial capital in the market. I experienced two bull market cycles and made some profits, but compared to those early players fully devoted to the industry, my capital accumulation was not that large.

2017: The Opportunity and Preparation for BitMart's Establishment

In 2017, after graduating with my master's degree, the market was particularly favorable for cryptocurrencies. I began considering my next direction and ultimately decided to start a business with some friends I met in 2013. Our idea was to establish a trading platform, so we began preparations in September 2017 and officially launched on March 15 of the following year. During those 8 to 9 months, we faced many challenges, including team building and fundraising. The entire process was quite tortuous, but we managed to launch the exchange right at the end of the bull market.

Since then, BitMart Exchange has officially entered a fast-paced development track. The seven years have been both long and filled with challenges. Joining the crypto space was actually a coincidence, but fundamentally, it was driven by my interest in technology and the intriguing nature of blockchain. On the other hand, my understanding of traditional finance was limited, while blockchain offered a brand-new financial paradigm that could potentially disrupt the traditional financial system from a technical standpoint. Therefore, I ultimately decided to immerse myself in this industry and have persevered ever since.

Colin: What was your strategy when you first started the exchange? Did you have a clear direction at that time?

Sheldon: Our initial idea was quite simple. On one hand, the crypto market was in a rapid development phase, and on the other hand, competition in the exchange industry was not as fierce as it is now, with a high demand for listing coins. From the perspective of market demand, we believed there was significant potential for growth in exchange operations.

Additionally, we identified three core areas in the industry: exchanges, mining, and chips. Ultimately, we chose exchanges as our entrepreneurial direction since the other two fields were not our areas of expertise.

Our competitive strategy has actually remained largely unchanged from that time to now. The core value of an exchange lies in providing a trading venue, liquidity, and quality trading assets, so we decided from the outset to adopt a rich listing strategy. However, in 2017, the industry infrastructure was still underdeveloped, and optimizing product richness, liquidity, and technical foundation was much more challenging than it is today.

At that time, there was a severe shortage of talent in the entire industry. There were almost no real blockchain practitioners, and most of the talent had to be cultivated or solutions had to be explored independently, making technical difficulties relatively high. However, we consistently adhered to our competitive strategy, which has continued to this day.

Our team had a strong global presence, which led to BitMart being highly regarded worldwide. When the exchange launched, it garnered significant attention, and the subsequent user structure remained consistent across the globe.

2017-2021: BitMart's Journey from Startup to Rapid Development

Colin: If you were to divide BitMart's 7 to 8 years of development into different phases, how would you define these phases? What are their characteristics?

Sheldon: I believe that BitMart's development phases are closely linked to changes in the company's organizational structure, talent framework, and business scale. If we were to categorize the phases, I believe the company is currently in the fourth phase.

The first phase includes the years 2017 to 2019, during which BitMart was in its startup stage as a company. At that time, our team was small, and our business level and market share were still in the early stages of development.

The bear market in 2019 and the market slump in early 2020 were significant tests for the team. The entire industry was extremely cold at that time, leading us to undergo a wave of personnel adjustments, with many early core members choosing to leave due to the changing market environment. I believe that during that phase, every exchange faced immense survival pressure. It was the most challenging period.

Following that, from 2020 to 2021, we entered the second phase, which was a rapid development phase. In early 2020, Fenbushi Capital invested in our equity, which, although not a large amount, was highly significant for us.

In 2020, we upgraded the team comprehensively, and the organizational structure underwent a major adjustment. Many key core members joined at that time and have remained with the company, becoming the backbone of today’s organization, taking on crucial management roles. This organizational adjustment laid the foundation for BitMart’s rapid growth thereafter.

Sheldon: In 2020 and 2021, with the optimization of our talent structure, we also welcomed a bull market. During those two years, asset issuance was exceptionally frantic, and DeFi summer drove the expansion of the entire crypto industry's asset scale, also creating numerous opportunities for the appreciation of emerging assets. This industry trend directly propelled the business growth of BitMart Exchange.

Especially in mid-2021, our performance data reached an extraordinarily exaggerated growth level, with monthly trading volume increasing by 100 times compared to 2020. In terms of user growth, the number of retail traders and app downloads surged, and we briefly entered the top 20 of the Apple Store, even surpassing PayPal at one point. During that time, BitMart's daily downloads reached hundreds of thousands, with daily registrations peaking in the tens of thousands, rapidly increasing our market share. It can be said that at that time, our exchange business ranked at least in the top five globally.

Our success primarily relied on a rich asset issuance strategy and the user-friendliness of our platform products.

2022-2023: Strengthening Risk Control and Security Investments

Sheldon: We define the years 2022 and 2023 as the "consolidation phase" of development. The main focus of our investment has been on products, research and development, security, and risk control. We have conducted another round of upgrades and optimizations for our internal management processes, product research systems, operational SOPs, and team structure.

The years 2017 to 2019 were led by the first generation of BitMart's management team, while 2020 to 2021 saw the introduction of the second generation of core leadership. In 2022 to 2023, we welcomed the third generation of core leadership, gradually moving towards a professional managerial approach, bringing in many key personnel from traditional finance industries and other leading exchanges. At the same time, we also undertook large-scale upgrades and iterations of our technical systems, optimizing the exchange's infrastructure.

Moreover, the construction of our risk control and security systems has also been further strengthened, with substantial investment in security facilities. To some extent, we view the bear market as an opportunity to focus on internal optimization and enhance overall stability and risk resistance.

2024: Launching an In-house Developed Derivatives System

Sheldon: I believe that the period from 2024 to 2025 will be the fourth development stage for BitMart, marking a new growth phase. The core growth areas during this phase will primarily focus on contracts and derivatives business.

In 2024, we officially launched a brand-new an in-house developed derivatives system, which is a fully in-memory trading clearing and settlement system that greatly enhances trading efficiency and performance. In terms of derivatives products, this system has nearly bridged the gap between us and first-tier exchanges. The launch of this complete clearing and settlement system has made the expansion of our derivatives business much smoother. Over the past year, the growth rate of derivatives trading has been rapid, becoming a new growth engine for the company.

Additionally, to accommodate this growth, we have also made adjustments and optimizations to our fourth-generation leadership team, further introducing new core management. This evolution of organizational structure is actually an inevitable trend, as it is difficult to advance the company to the next stage without adapting the organizational structure to changes in business models.

BitMart's Core Strategy for Compliant Development

Colin: I remember you have always emphasized compliance. Compared to other trading platforms, your strategy seems somewhat different. How did you formulate your compliance strategy back then?

Sheldon: Yes, BitMart established a CCO (Chief Compliance Officer) from the very beginning. Our core executive team also includes someone specifically responsible for legal affairs. In the early stages, we conducted in-depth analyses of the compliance environment for business development and formulated a comprehensive compliance operation plan, closely cooperating with law firms to ensure our business operations were legal and compliant. Thus, we have a relatively light historical burden.

Sheldon: I believe that the founders of each exchange have different personalities and decision-making styles. As entrepreneurs, the most important thing is to clearly understand what you truly want, what you have, and what you are willing to give up.

Some exchanges choose an extremely aggressive growth model, willing to take compliance risks in pursuit of excess returns. We, on the other hand, clearly chose a more stable development path from the outset, unwilling to take unnecessary legal risks. This reflects the differing considerations of various entrepreneurs regarding risk and return; each exchange will have its unique considerations.

Future Market Expansion Directions: Focus on Asia and Europe

Colin: Has your user base changed? You just mentioned the derivatives business, and in certain markets, you clearly cannot conduct derivatives trading. Has there been any adjustment in the geographic distribution of your users?

Sheldon: Our derivatives business was relatively small before 2024. Compared to derivatives trading, spot trading has relatively lenient regulatory requirements, so we have remained in a relatively controllable state regarding regulatory pressure.

From 2021 to 2024, there has been a noticeable change in our user distribution, shifting from primarily North American users to being dominated by Asian and European markets. Currently, our derivatives trading remains mainly concentrated in the Asian market, where user activity and trading demand are still the highest.

Core Value of Retaining Users Lies in "Appreciation of Data Assets" and "Interactive Services"

Colin: So, how is your overall revenue and profitability situation now? How has the company performed in terms of revenue?

Sheldon: Overall, the situation is quite good. Our ability to list coins has always been strong. If you conduct market research, you will find that we are consistently one of the exchanges with the most and fastest listings in the industry. Our accelerated listing strategy has kept our overall revenue at a relatively stable high level, especially in terms of revenue from spot trading fees, where we have always maintained a leading position.

In 2023, we explicitly proposed a strategy for diversifying our "revenue pillars," expanding from solely spot revenue to include derivatives revenue. In 2024, the growth of derivatives trading significantly boosted our overall revenue. This has also led to some expansion within our team, though we still maintain streamlined operations. Currently, the company has nearly 500 employees, more than doubling in size compared to 2021.

Colin: Will there be any new changes in the company's strategy this year?

Sheldon: Yes, BitMart's core strategy has been evolving, but there is a core vision and mission that has never changed. Over the past five years, during every annual and quarterly meeting, we have repeatedly emphasized our vision—to become the infrastructure of the future Web3 world.

Colin: You mentioned the vision that the company has consistently adhered to. If you were to summarize the core values of BitMart's development over the years or the most important aspects of corporate culture, how would you define them?

Sheldon: From a user-facing perspective, we have always aimed to provide a free trading venue, offering users the opportunity for asset selection, and creating an open, free, and trustworthy Web3 platform. Therefore, our products and trading tools are always designed from the user's needs, striving to meet user demands as much as possible in terms of trading experience and asset support. This philosophy has enabled BitMart to maintain a high user retention rate and continuously expand its market.

Colin: What kind of values do you advocate in terms of the company's internal culture?

Sheldon: The core values of our internal culture can be summarized in five keywords: trust, reliability, simplicity, efficiency, and persistence.

These values permeate the company's daily communication, strategy formulation, and business execution processes. Whether in team collaboration or decision-making in response to market changes, we consistently adhere to these five core principles.

From the revenue strategy perspective, we are promoting the expansion from spot income to derivatives income to achieve diversified growth. From a long-term strategic viewpoint, this year we also formulated a "decentralized wallet strategy." In the third quarter of 2025, we plan to launch our own decentralized wallet and integrate it with existing CEX wallets.

For exchanges, the core value of retaining users lies in the "appreciation of data assets" and "interactive services." The wallet strategy is extremely important to us as it is not merely a storage tool but also serves as the gateway for users to enter the Web3 world. Based on this entry point, we can establish a complete asset appreciation system and provide services such as asset management and information interaction. This aligns with the core direction of our long-term vision and mission.

Colin: Is it necessary to develop a wallet in-house? For instance, acquiring existing on-chain products or wallets might also be a good choice, much like Binance acquiring Trust Wallet back in the day?

Sheldon: Indeed, acquisition is a feasible option, but we have already built substantial technical expertise in this area. Our asset management framework also collaborates with some third-party custodians, such as Copper, Fireblocks, and Cobo. However, our internal team has accumulated significant experience in wallet technology over a long period. The year 2025 is a suitable time, so we decided to develop it in-house rather than pursue an acquisition directly.

The Trend of Integration Between CEX and DEX

Colin: Your strategy is also an issue that all CEXs must face. Just like in 2017 when Binance capitalized on the altcoin market boom, today CEXs may face challenges from DEX and on-chain economies. Do you think this challenge will fundamentally impact CEXs?

Sheldon: I believe that CEX and DEX each have their distinct advantages, and the user groups they serve differ significantly. Currently, it is unlikely that the product forms of the two will fully merge in the short term, but in the medium to long term, CEX and DEX will gradually converge, borrowing from and integrating with each other's technologies.

For example, many DEXs rely on decentralized backends for clearing and settlement, but the front-end presentation and interaction still use centralized methods. Similarly, CEXs are beginning to integrate decentralized self-custody wallets into their internal centralized wallets, enhancing users' control over their assets.

I think that in the future, both CEX and DEX will continue to grow in market size and ultimately form a state of integration. DEXs have clear advantages in terms of transparency, self-custody, and censorship resistance, while CEXs still dominate in high-frequency trading, high liquidity, and support for complex trading strategies. Therefore, neither will completely replace the other; instead, they will continually move closer in their respective areas of expertise, forming a complementary relationship.

Colin: Do you think the market space for CEX will become smaller? On one hand, it faces competition from DEX, and on the other, local compliance exchanges are also developing rapidly.

Sheldon: This question needs to be analyzed separately. In terms of absolute market value, the market size of CEXs will continue to grow over the next 5 to 10 years. However, in terms of market share, the outlook may not be as optimistic.

Currently, regulation on DEX is relatively lenient. For instance, the withdrawal of lawsuits against DEX-driven protocols like Uniswap has provided many opportunities for DEX to grow. Therefore, the market share of DEX may continue to rise.

However, the growth of CEXs still relies on the overall expansion of assets in the crypto industry. Especially with the trend of digital financial assets, the advent of the AI era will generate a large number of new data assets, significantly increasing their application and interaction frequency. Overall, the market size of the industry (especially for CEX exchanges) will continue to grow and is unlikely to stagnate at least in the next 5 to 10 years.

Nonetheless, changes in market share may suggest that more emerging entrepreneurs will find greater opportunities in DEX or other DeFi areas.

Bitcoin Market Prediction: Long-Term Target of $1 Million, Short-Term Influenced by Federal Reserve Policies

Colin: You have a lot of observations about the US market, and we've discussed the current market state. How do you see the upcoming market trend? What impact might adjustments in US policies have on the market? The US government is indeed loosening regulations and providing greater support to the industry, but at the same time, macro factors like rising inflation may have some influence on the market. How do you view the future market trends? From the company's perspective, you must also assess these factors, as they will directly impact future investments and growth planning. Additionally, how do you view the opportunities that changes in the US regulatory environment may bring to the industry?

Sheldon: From the perspective of the secondary market, Bitcoin has gradually decoupled from other asset classes, but it still remains highly correlated with US macroeconomic policies. Therefore, in the long term, most people's view is consistent—Bitcoin will eventually rise to $1 million. However, in the short term, Bitcoin's price movements are still largely dependent on the Federal Reserve's interest rate cut policies, the inflow of funds for Bitcoin spot ETFs, and any potential national Bitcoin reserve plans.

Currently, the downside potential for Bitcoin seems limited, and while market liquidity is somewhat constrained, Bitcoin's fundamentals remain solid. However, aside from Bitcoin, the market situation for other crypto assets is relatively bleak. The market currently lacks new capital influx, and there are no truly valuable "trust-level" protocols or applications emerging from the product side. Therefore, in terms of value creation and liquidity, the entire market remains in a sluggish state.

This recent market surge's funding primarily comes from traditional financial institutions and the inflow of US ETFs. Bitcoin's ultimate destination is to be held by banks and a few compliant custodians, rather than flowing into DEXs or unregulated entities as it did in the past. Thus, the overall leverage in the market has significantly decreased. In previous bull markets, offshore exchanges or unregulated entities had very high leverage, leading to market over-expansion, while the deleveraging process frequently resulted in liquidation waves, creating massive volatility. However, in this round, the leverage spillover effect is relatively weak; even though Bitcoin's turnover rate is high, the proportion of retail holdings has significantly decreased. Consequently, the entire secondary market, especially the altcoin market, remains in a relatively challenging phase.

Sheldon: From the perspective of the US policy environment, the potential return of Trump could bring certain opportunities to the market. In the past, the US government's regulatory model was primarily enforcement-driven, as the crypto industry has long lacked clear legal foundations. Enforcement mainly relied on securities laws and anti-money laundering regulations. Furthermore, multiple agencies (SEC, CFTC, DOJ, etc.) have regulated the crypto industry under a traditional financial framework, with a very tough stance. This multi-agency regulatory model has led to a significant outflow of domestic companies, causing market funds to remain in a prolonged wait-and-see state.

Trump's election, while not immediately resulting in new legislation, could positively influence the regulatory attitude. From the legislative process perspective, after a bill is proposed in the House, it needs to be reviewed by the Senate, followed by multiple rounds of amendments. Therefore, forming a stable regulatory framework will take a long time. However, the Trump administration's attitude might bring short-term positive impacts on the market, especially for institutional investors who are currently hesitant, as this could serve as an important incentive, releasing suppressed market capital and the energy for product innovation.

Currently, enforcement agencies maintain a strong crackdown on illegal activities and financial crimes in the crypto industry. However, in terms of securities regulation, especially regarding innovative businesses involving crypto assets, such as tokenization and DeFi compliance, there is a possibility of greater policy leniency. Overall, the trend suggests that the future US crypto industry will gain a more stable policy environment to a certain extent, rather than being in a high-pressure and uncertain state as in the past few years.

Colin: But are you concerned that US policies may undergo drastic changes with party shifts? For instance, two or four years down the line, if Congress changes, could there be a significant reversal in policy direction?

Sheldon: That possibility does exist, and it can even be said to be highly likely. This four-year period is better described as a postponement of enforcement rather than a cessation. For example, several crypto-related companies were prosecuted right before the election last year, and some significant fines and settlements were also finalized during Biden's term. If political parties change again in four years, the likelihood of stricter regulatory policies remains high. 

About BitMart
BitMart is the premier global digital asset trading platform. With millions of users worldwide and ranked among the top crypto exchanges on CoinGecko, it currently offers 1,700+ trading pairs with competitive trading fees. Constantly evolving and growing, BitMart is interested in crypto’s potential to drive innovation and promote financial inclusion. New users can register here to unlock an $8,000+ welcome bonus.

Disclaimer:
Use of BitMart services is entirely at your own risk. All crypto investments, including earnings, are highly speculative in nature and involve substantial risk of loss. Past, hypothetical, or simulated performance is not necessarily indicative of future results.

The value of digital currencies can go up or down and there can be a substantial risk in buying, selling, holding, or trading digital currencies. You should carefully consider whether trading or holding digital currencies is suitable for you based on your personal investment objectives, financial circumstances, and risk tolerance. BitMart does not provide any investment, legal, or tax advice.

chenkai.ni at bitmart.com