CoinEx CEO Haipo Yang Explains: The Significance of Epic Sat Auction

1. Can you please give us an introduction about yourself and your project?

My name is Haipo Yang, and I am the founder of CoinEx. My journey into the world of cryptocurrencies began in 2011 during Bitcoin’s initial bull market. Inspired by the ethos of open-source technology and the freedom it represents, I delved deeper into the field, recognizing the transformative potential of blockchain technology.

This realization led me to found CoinEx in 2017, with a vision of creating a global cryptocurrency exchange dedicated to making trading easier and more accessible for everyone. Since then, CoinEx has grown to serve over 5 million users across 200+ countries and regions, offering a wide range of services including spot and margin trading, futures, swaps, and automated market maker (AMM) services.

At CoinEx, we are committed to fostering an equitable, respectful, and secure trading environment, empowering individuals of all experience levels to participate in the world of cryptocurrency effortlessly.

2. What was the reason behind your decision to auction Epic Sat instead of holding it for potential future appreciation?

As an early member of the Bitcoin community, I have witnessed the development and evolution of the Bitcoin ecosystem firsthand. From our commitment to running a PoW mining pool to the recent Epic Sat auction, we have seen the Bitcoin ecosystem gradually breaking through scalability limitations and giving rise to an increasing array of innovative approaches. Especially since last year, the introduction of the Ordinals protocol has sparked a wave of innovation in the BTC ecosystem.

This has led to a remarkable acceleration in its development, with advancements in Bitcoin L2/sidechains, Runes etc. Considering that the innovation in the BTC ecosystem primarily stems from its vibrant community and developers, and in the spirit of upholding Bitcoin’s philosophy of decentralization, we decided to entrust the Epic Sat to the communities best positioned to unlock its full potential, thereby fostering further innovation and development within the Bitcoin ecosystem.

The winning bidder was the BTC Ordinals blue-chip community led by BLOB, which raised the auction funds through a crowdfunding approach, making the entire auction process more decentralized. They secured the Epic Sat with a final bid of 33.3 BTC, a memorable number that gave this rare sat a recognizable mark. We are eager to see how the Blob community will utilize this sat to unlock the infinite potential of the Bitcoin ecosystem. We also anticipate the continuous growth and evolution of the Bitcoin ecosystem.

3. How did you determine the starting price and auction format for Epic Sat?

Regarding the starting bid, we referenced the final auction prices of certain sats (such as rare sats, ​​which are of lesser rarity compared to the epic sat) previously auctioned at Sotheby’s, and decided to initiate the bidding at 1 BTC. As for why we priced it in BTC, I believe it aligns better with the spirit of blockchain and the overall trend of ecosystem development. Moreover, by hosting the auction on an exchange platform, we aimed to introduce an innovative trading model that would facilitate easy participation for our users.

4. What challenges did you encounter during the Epic Sat auction?

During the first ten hours of the Rare Sat auction, only one bidder participated, which was a bit puzzling for us. However, we remained undeterred, considering that the value of the Rare Sat reached over US$100,000 at a Sotheby’s auction, and the Epic Sat is even rarer. We have faith in the market’s judgment.

On the second day of the auction, we saw a continuous influx of buyers entering and competing in the bidding, demonstrating a high level of enthusiasm for the rare assets in the Bitcoin ecosystem, with bids reaching as high as 14 BTC. It is precisely this auction experience that we have gained a deeper understanding of the potential of Bitcoin assets and the maturity of the market, also sparking our enthusiasm for market trends in future.

5. Did the reactions from potential buyers of Epic Sat align with your expectations?

During the three-day auction process on our public bidding platform CoinEx, the intense competition was just the tip of the iceberg. What surprised us even more was the numerous buyers who reached out to us privately, expressing not only strong interest in this rare asset but also great attention on our future plans and developments. Overall, we should say the enthusiasm and active participation of bidders in the Epic Sat auction have greatly exceeded our expectations.

6. What key factors led to the record-breaking $2.1 million auction result for Epic Sat? What do you believe sets Epic Sat apart in its attractiveness to investors?

I think the main reason is likely due to the rarity and high value use cases of Epic Sat itself, as well as investors’ optimism about Bitcoin and the Bitcoin ecosystem. As a rare asset can only be obtained every four years during the Bitcoin halving, Epic Sat garners significant attention in the market due to its uniqueness and scarcity. Its historical value and diverse use scenarios further enhance its value for both collectors and users, attracting the participation of numerous investors.

Furthermore, as the Bitcoin ecosystem continues to develop, investors’ optimism and recognition of Bitcoin’s potential and value are increasing.  The recent favorable price movements of  Bitcoin along with positive developments such as the approval of BTC ETFs, have also contributed to a growing interest among investors in acquiring Bitcoin assets. It is these factors, I believe, that have made the Epic Sat uniquely appealing to investors.

7. Do you plan to conduct more highly anticipated Bitcoin asset auctions similar to Epic Sat after its sale?

The successful auction of the Epic Sat has greatly validated the market’s acceptance and recognition of Bitcoin and its entire ecosystem. Furthermore, it has inspired us by demonstrating that this transparent and innovative approach to auctioning has opened up new pathways for the evaluation and circulation of cryptocurrency assets. Regarding future plans, we are currently focusing on evaluating market feedback and exploring various possibilities to ensure that we can seize new market opportunities in a timely manner, thereby better assisting and supporting the development of our community.