Interview with Gate.io CBO Kevin: Celebrating 12 Years of Navigating Bull and Bear Cycles, We Have Achieved Trillion-Dollar Trading Volume

As the Bitcoin spot ETF drives global capital influx and the Memecoin craze ignites the on-chain "trillion-dollar casino," the crypto market in 2024 is presenting an unprecedented frenzy and diversity. Amidst this wave of accelerated restructuring, the veteran exchange platform Gate.io coincidentally celebrates its 12th anniversary.

This "crypto living fossil," spanning three bull-bear cycles and witnessing industry ups and downs, has been steadily moving forward amid the hustle and bustle and cycles, delivering a contrarian report card: a total trading volume of $3.8 trillion in 2024, a global user base surpassing 22 million, and a 33-fold increase in Web3 wallet users within a year, demonstrating its explosive growth in on-chain ecosystem layout.

At this critical juncture, BlockBeats had an exclusive interview with Gate.io's Chief Business Officer (CBO) Kevin Lee. This senior Hong Kong banker, who possesses both a traditional financial background and a vision of the crypto industry, has been leading Gate.HK's compliance process in Hong Kong since 2023 and has taken on additional responsibilities for the group's business strategy this year. Transitioning from J.P. Morgan's trading floor to the regulatory forefront of crypto assets, Kevin Lee witnessed the breakthrough of Hong Kong's first licensed exchange platform and spearheaded Gate.io's lightning-fast 329% user growth in the Middle East market.

In this in-depth conversation, Kevin disclosed several key strategies for the first time, including details of the acquisition of a licensed exchange platform in Japan, the business layout progress of "Gate.MT" in Europe, and the "three-key" strategy supporting the $27 billion on-chain asset growth of the Web3 wallet. Additionally, he shared how Gate.io promotes brand youthfulness and localization through the Hong Kong "Token of Love" music festival and how Gate.io is building an "anti-fragile" self-evolution path in the face of the Bitcoin ETF surge and Pump.fun's rise.

From Banking to Crypto, Kevin's Evolution

BlockBeats: Hello Kevin, thank you for accepting BlockBeats' interview. From Gate.HK CEO to also serving as Gate.io CBO, what significant transformations have occurred in your role? As Gate.io marks its 12th anniversary, how do you reflect on the platform's development over the past year? Standing at this milestone, what are your sentiments?

Kevin Lee: As the CEO of Gate.HK, my main responsibility was to connect with institutional clients and regulatory bodies in Hong Kong. Now, as the CBO as well, more of my time is spent interacting with the community, including major KOLs and regular users, both online and offline. The biggest difference is that I'm now engaging with a different group of people and can directly hear the users' voices.

Users often tell me, "Gate.io was the first exchange account I opened in the crypto world." This kind of statement really touches me and I'm moved by it. Many people indeed encountered cryptocurrency for the first time through us. Surviving in the crypto world for 12 years is not easy. I myself have been with the Gate Group for over two years, and looking back, the changes have been immense. For example, comparing the events held last year with those of this year, there has been significant progress in terms of scale and format. This rapid growth is truly awe-inspiring.

12 years may sound long, but having worked in traditional banking, I know that 12 years is not considered a long time in the financial industry. However, in the crypto world, the landscape can completely transform in just 12 months. Although we are celebrating our 12th anniversary now, I feel like this is just the beginning. When we look back next year, we might discover many new breakthroughs. I have personally witnessed significant growth in the platform over these past two years, so I have high expectations for the future of Gate.io. There will be many differences in one or two years as well.

BlockBeats: You worked in traditional finance and the internet industry early in your career. What was the turning point that led you to transition to the crypto industry? What was the process of joining the Gate Group like? How do you view your career path choices?

Kevin Lee: I first bought Bitcoin around 2012 or 2013 when the price was around 140 RMB, which was near its all-time high at that time. I didn't really understand it when I bought it; I just followed the crowd and bought some. However, soon after my purchase, the price quickly dropped to 90 RMB, and I thought, "Oh, this thing is useless, I don't see the potential." So, I just left the account alone without checking on it.

Unexpectedly, in 2017, Bitcoin surged to $20,000, and I suddenly remembered that I had some Bitcoin in that account. I went to look for it. Similar stories like this have happened a lot in the industry: forgetting passwords, changing phones, losing 2FA, and losing Bitcoin bought a long time ago. But I was somewhat lucky; I tried many ways to recover the account, and the Bitcoin I bought in 2012 was still there.

During that time, many new coins emerged in the market, and people were not only talking about Bitcoin but also about other new coins like Ethereum. My attention to the crypto industry grew as well. Later, when the Hong Kong Monetary Authority introduced a cryptocurrency compliance framework, it became a key turning point for me. After working in traditional banking for so many years, I understood that once regulatory policies are established, there's no turning back. Despite the price volatility in the crypto world, the process of compliance is irreversible, making me confident that the industry will persist in the long run.

Joining the Gate Group, the decision to establish an independent operational exchange platform in Hong Kong, Gate.HK, was also based on this assessment. At that time, the Gate Group wanted to apply for a compliance license in Hong Kong, which aligned perfectly with my philosophy — the market experiences cyclical fluctuations, but compliance building is the foundation. Despite significant changes in the Hong Kong policy environment and industry, we still insist on rooting ourselves here and operating locally. Looking back at this career path, transitioning from traditional finance to the crypto world is essentially a process of seeking "rule establishment."

Behind the 33x Growth, Gate.io's Lightning Product Battle

BlockBeats: Each CEX is competing for on-chain liquidity and has heavily invested in its Web3 wallet. It can be seen that over the past year, Gate.io has also made many moves on the Web3 Wallet, with on-chain assets growing by 27 billion and user numbers surging 33x. Behind this data growth, what is the core competitiveness of Gate's Web3 wallet?

Kevin Lee: I think three things are particularly crucial. First, Gate.io's Web3 Wallet has already covered nearly 200 public chains, and most of the coins on the market can be traded in the wallet without the need to shuttle back and forth between platforms. Second, we have an AI tool called "Memebox." During this period, everyone was playing with memes, and now there are just too many meme coins in the market. This tool can use AI algorithms to help users screen out projects with potential. Third, we have deeply integrated centralized exchange and decentralized features. Users can complete the entire process from deposit to on-chain interaction within our Gate.io platform, an end-to-end experience that is challenging for other pure decentralized wallets to achieve.

BlockBeats: In this cycle, memecoins have become a hot topic. The Solana ecosystem has seen the emergence of platforms like Pump.fun and gmgn, which are "rugging" platforms. Many users complete speculative loops on-chain and no longer rely on CEX. How do you view the liquidity impact of Pump.fun-type platforms on centralized exchange platforms? In the face of the trading demand and traffic shift brought by memecoins, how did Gate.io respond? What explorations and innovations have you made at the product level?

Kevin Lee: There is certainly an impact, but compared to other exchanges, we still have several advantages in this area. We have an Innovation Zone, where Memecoins can be listed on the same day they go viral on DEX. The listing speed is fast, so when users discover a potential coin, they know they can come to Gate.io to ride the wave of the price surge.

Next is that we have created a closed-loop system that is capable of providing functionalities of both centralized and decentralized exchanges. Even though these Memecoin players, as you mentioned, buy and sell coins on DEXs like Pump.fun and gmgn, someday when they want to enter the mainstream coin market or cash out their earnings, they will ultimately have to use a CEX.

Gate.io can offer these users more choices, such as Coin Balance Finance or engaging in contract hedging. Because users cannot always rely on earning from Memecoins, they will eventually need to lock in some of their profits. Therefore, they can invest in different products to diversify risks, and Gate.io is a very good choice for them.

BlockBeats: The market is ever-changing, and when facing market changes, CEXs will adjust their listing strategies. We have seen that Gate.io has also undergone significant changes in various asset selection criteria such as Launchpool and HODLer. Could you please share with us the trend of Gate.io in this area this year?

Kevin Lee: One is the aforementioned Innovation Zone. We at Gate.io have implemented a tiered approach, where the Innovation Zone focuses on speed. For example, Memecoins can be listed on the same day they gain popularity on DEXs. The Launchpool, on the other hand, focuses on selecting projects with long-term potential, such as AI and DePIN, providing users with more stable investment choices.

Secondly, Gate.io now simultaneously enables contract trading when listing spot trading pairs. There is a significant demand from our users in this area, so most of our new coins are available for both spot and contract trading. After buying spot tokens, if users want to hedge or leverage, they don't have to operate across different platforms anymore. This way, our users have more choices, whether it's spot or contract trading or the Innovation Zone, to meet different investment needs.

Compliance Breakthrough, Globalized Entity

BlockBeats: Since 2024, multiple markets including the United States and Hong Kong have approved Bitcoin spot ETFs, and traditional asset management giants like BlackRock and Fidelity are gradually becoming the "pricing anchor" for crypto assets. Many industry voices believe that the rise of ETFs will weaken the pricing power and liquidity hub status of CEXs. Do you think the pricing power of exchanges is starting to shift? How significant is this impact and competition for exchanges? How is Gate.io dealing with the entry of asset management institutions?

Kevin Lee: First and foremost, let's be clear: ETF issuers need to purchase spot assets for hedging, which actually increases the trading demand for compliant platforms. It's just that the traffic will be more concentrated on licensed platforms. For Gate.io, the key is whether we are operating within a regulatory framework—when institutional investors enter the scene, their first choice will definitely be a regulated trading platform, as this is the inevitable direction of the industry's differentiation.

Another commonly overlooked fact is that even though traditional financial institutions are paying attention to ETFs, they are more inclined to directly allocate underlying assets rather than ETFs themselves. Just like in the traditional financial field, institutions prefer to buy a basket of stocks rather than an index ETF because ETF management fees are high and flexibility is lacking. Currently, the primary buying power for crypto ETFs still lies with retail investors, and it will take time for institutions to engage in large-scale allocations.

Therefore, in the short term, the impact of ETFs on centralized trading platforms is limited, and the long-term core of competition remains compliance capability. Gate.io continues to invest in compliance construction in locations like Hong Kong to become a trusted trading gateway for institutional funds when they enter on a large scale.

BlockBeats: Regulatory issues are always an unavoidable topic, from trading platforms to web3 wallets, what compliance successes has Gate.io achieved? What efforts will be made in the next stage? What markets are the future key breakthrough areas?

Kevin Lee: At this stage, I can reveal a few key actions: we acquired a licensed trading platform "Coin Master" through an affiliate entity in Japan and are in the process of rebranding it as "Gate Japan"; in the European market, the compliance architecture has been established through "Gate.MT," and we will subsequently operate under the unified "Gate.io" brand. These initiatives are all aimed at providing fully compliant services to local users.

The Middle East and Hong Kong are also key regions where Gate.io will enter with different entities to serve various local markets, maintaining ongoing communication with local regulatory bodies. Interestingly, although the details of regulatory frameworks vary by region, the core direction is gradually converging—anti-money laundering, user protection, reserve audits—all these basic principles have become a global consensus. This consistency actually reduces our compliance challenges because different regional teams only need to make localized adaptations within a unified framework.

We will continue to adhere to a "localized compliance" strategy in the future: each key market will have an independent operating entity and a localized team, but the underlying risk control standards and fund security solutions will be globally unified.

BlockBeats: We can see that global CEXs are expanding into and establishing roots in the Middle East, including Dubai and the UAE. Gate.io's user base in the Middle East reportedly grew by 329% according to the annual report, while there is also significant growth potential in Southeast Asian markets like Hong Kong, Singapore, and European markets. For Gate.io, who will be the next growth engine? What are Gate.io's core development directions and market layouts for the next 1-3 years? What is the core challenge of localized operations in different regions during the globalization process?

Kevin Lee: As we mentioned earlier, there are many potential markets in Southeast Asia, the Middle East, Europe, and other regions. However, I believe that in the next 1-3 years, we should not focus solely on one region because the global adoption of cryptocurrency is only around 5%, which is not very high.

Therefore, in addition to deepening our presence in existing markets, we will also explore new regions. This is also our advantage - Gate.io can adapt quickly to regulatory changes. Regardless of any regulatory changes, our growth rate in newly entered markets will be rapid.

Gate.io's 12-Year Anniversary and Cyclical Revelation

BlockBeats: The annual report shows that Gate.io's total trading volume will reach $38 trillion in 2024, with the user base surpassing 20 million, a growth of over 400 times compared to the early days of its founding in 2013. As a relic of the industry that experienced its founding in 2013, what was the biggest survival challenge Gate.io faced during three bull-bear cycles? What key decisions allowed the platform to overcome cyclical barriers? What have been the most representative turning points or breakthroughs for Gate.io in its 12 years of operation?

Kevin Lee: The cyclical nature is actually a good mirror that reflects the strength of a trading platform. In the previous few bear markets, Gate.io performed very well because our philosophy was, "In a bull market, no matter how fast you grow or how high you rank, it is not useful. What is more important is to survive in a bear market; otherwise, all achievements are meaningless." So we have always managed our costs very well.

However, in this current bull market, we have made some small changes to our strategy. Cost-cutting alone is not enough. The market competition is fierce, and if we do not spend money, we may be left behind during the bull market. But we cannot spend money indiscriminately. Therefore, we will focus our resources on user and community development, as well as online and offline activities.

For example, the "Token of Love" music festival we held during the Hong Kong Consensus Conference was very representative. Over three days, it attracted over 20,000 participants, likely setting a record for the largest event organized by a trading platform. This event was very special; there was no discussion of projects, listings, or trading. It was purely about using music to connect the community. Looking back, this brand elevation that broke away from industry conventions truly transformed Gate.io from a mere "trading platform" into a cultural symbol. We will also explore the possibility of organizing similar great events in the future.

BlockBeats: Gate.io underwent a brand upgrade for its 12th anniversary, including changes to the brand name and visual identity. Could you introduce us to this brand upgrade? What new image and core values do you hope to convey to the world?

Kevin Lee: On the occasion of the twelfth anniversary, the brand visual identity has been completely refreshed, and Gate.io has officially adopted the new Chinese name "大门" (Gate). The upgrade of the brand's Chinese name symbolizes openness, fairness, and innovation, representing the intersection of trust and technology. It carries forward Gate.io's original aspiration to connect the global crypto world and signifies the brand's outlook for the future — to drive industry development through technology and open a broader crypto gateway for users worldwide.

I also want to mention two more points: Branding is not a change that can be accomplished in a day or two. Over the past year or two, Gate.io's brand has undergone significant changes, becoming more professional. This transformation has been a gradual process of improvement, not just because we are celebrating our 12th anniversary with a campaign but because branding is a long-term commitment that requires attention every day.

Another crucial point is that as mentioned earlier, our products will engage more with the community. It's not just about changing the logo; the evolution of the brand will also be reflected in community interaction. In the past, it might have been thought that if the product is good, users will naturally come. However, the reality in today's market is different — a brand needs to be actively developed. It needs to stand out and engage with the community, not for the sake of promoting a product but, more importantly, to listen to their feedback. Understanding what the community wants from Gate.io and providing more of that is a critical aspect of branding.

BlockBeats: The crypto industry seems to have a strong connection with audiences interested in football and racing. Behind Gate.io's sponsorship of the F1 Red Bull Racing Team & Inter Milan in sports marketing, how does this align with Gate.io's corporate culture, globalization, and core values?

Kevin Lee: Firstly, F1, and football are a couple of truly global sports IPs — much like crypto assets that transcend borders. The Red Bull Racing Team's races cover 195 countries, and International Milan's fan base spans across South America, Europe, and Asia. This dense coverage perfectly matches our user distribution map. It offers Gate.io more opportunities to engage with a global audience and provides a new talking point. Many users whom I wasn't familiar with came up to me and said, "Your football events are so well done over here," which made me aware that they liked football. These events gave us a common topic and a deeper connection.

Secondly, these activities are groundbreaking in breaking gender stereotypes. Previously, racing, football, and the crypto world were seen as a "male-dominated field." But now, there are many women participants in all three areas, allowing everyone to interact and enjoy these activities together, which is a fantastic experience. Users naturally associate Gate.io with the F1 Red Bull Racing Team and Inter Milan, and this kind of association helps establish an emotional connection more effectively than traditional advertising.

BlockBeats: Looking back on Gate.io's development over the past 12 years, how do you view the evolution of the crypto industry in the next decade? From your perspective, which Web3 tracks truly have a future business ecosystem? Meme, DeFi, RWA, AI+Web3, and so on, which tracks do you think have the most potential for development? What role will Gate.io play in this future?

Kevin Lee: Ten years is a very long time, and my simple answer is AI. Right now, people are still discussing the combination of "AI+Web3," but in ten years, these technologies may have become default configurations, just like Google and Baidu are very ordinary things we use every day without emphasizing "Internet + Payment."

Another interesting answer is that ten years from now, there will definitely be things that we can't even imagine right now. Working in traditional banking, if you ask me what will happen in ten years, I would say it will be the same as it is now, without much innovation.

But the crypto industry is different. Just like in 2017, no one could predict the NFT explosion, there will definitely be new tracks in the future. I even think that these current hot concepts (Meme, DeFi, RWA) may not be mainstream in ten years—truly disruptive things often emerge beyond our line of sight, beyond our imagination.

As for Gate.io's role, our biggest advantage is "flexibility." Our transformation and new products are all very fast. Whether it's AI, RWA, or unknown new tracks, as long as there is an industry demand, our Gate.io technical team and product iteration speed can quickly catch up. Such responsiveness is difficult for others to achieve, so we are also looking forward to what the development of the next ten years will look like.

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