In an exclusive interview at Token 2049 in Singapore, Bybit CEO Ben Zhou sat down with Colin Wu to share the remarkable story of Bybit’s evolution in the cryptocurrency exchange landscape. From its early days overtaking competitors like BitMEX to its current position as a leader in professional derivatives and spot trading, Zhou offered candid insights into Bybit’s strategic shifts, its collaborative approach, and its vision for navigating regulatory challenges and emerging trends like TON and Web3. This article dives into the key takeaways from the conversation, exploring Bybit’s growth, culture, and future in the dynamic crypto market.
From Forex to Crypto: Ben Zhou’s Path to Founding Bybit
Ben Zhou’s journey to founding Bybit is rooted in a diverse background that spans continents and industries. Born in China, Zhou moved to New Zealand at age 11, later attending university in the United States. After a stint at a Fortune 500 company in New York and managing an aerospace project in Suzhou, Zhou found himself drawn to forex trading. He spent nearly a decade at a forex startup in Japan, navigating China’s booming retail forex market during its golden age.
By 2016, Zhou spotted a new opportunity in the emerging crypto space. As a trader, he experienced firsthand the limitations of existing platforms like BitMEX and OKX, which often crashed during volatile markets. Leveraging his derivatives expertise, Zhou founded Bybit in 2018 to create a superior trading platform. “Among exchange founders, I’m probably the only one with real retail forex experience,” Zhou noted, highlighting the edge that helped Bybit gain traction early on.
Overtaking BitMEX and Expanding Horizons
Bybit’s ascent began with a focus on derivatives trading, capitalizing on a seamless product experience and no-KYC policies to attract users. This strategy allowed Bybit to surpass BitMEX, particularly as the latter faced regulatory hurdles. “We drove traffic through KOLs and focused on derivatives” Zhou explained, emphasizing the importance of community engagement in Bybit’s early growth.
The 2021 bull market marked a pivotal shift for Bybit. Recognizing that only 5% of crypto users trade derivatives, the exchange expanded into spot trading and fiat services, recruiting talent from Huobi to bolster its capabilities. This move paid off, with Bybit briefly securing the second-highest spot trading volume globally, trailing only Binance. Zhou attributes this success to Bybit’s brand strength and its ability to list tokens quickly while collaborating with top projects.
Partnering Over Competing
Unlike some competitors with proprietary ecosystems, Bybit has carved a niche as an open, collaborative platform. Zhou described Bybit as an “infrastructure provider” that paves the way for projects to shine. “We bring users to the project, and it’s up to the project to grow” he said. Partnerships with TON, Circle USDC, Copper, and Fireblocks exemplify this approach, allowing Bybit to integrate with thriving ecosystems rather than building its own.
This strategy stems from a deliberate choice to focus on core exchange operations rather than diversifying into platform tokens or stablecoins. Zhou acknowledged that Bybit considered a platform token but ultimately prioritized specialization. “Being a project and running an exchange are two different paths” he said. “We decided to integrate with ecosystems like TON and Solana instead of competing with them.”
Opportunities and Challenges
Bybit’s partnership with TON (The Open Network) has been a significant driver of user growth. Zhou revealed that Bybit joined TON’s funding round six months ago, capitalizing on its massive user base. Through gamification and token rewards, TON has converted millions of users into ecosystem participants, with Bybit facilitating hundreds of thousands of new registrations. These users primarily hail from Eastern Europe, Africa, South Asia, Nigeria, and India.
However, Zhou cautioned that the token-driven acquisition model may be losing steam. “Some upcoming tokens might need to be cautious, as the same users might just be moving between projects” he said, pointing to projects like the Hamster token as examples of diminishing returns. To stay competitive, Zhou stressed the need for continuous innovation in user acquisition strategies.
Navigating Regulatory Challenges with Specialization
As global regulations tighten, Bybit is adapting by prioritizing compliance and professionalism. Zhou highlighted the Unified Trading Account (UTA), a system for efficient margin management, as a cornerstone of Bybit’s future. “The future of centralized exchanges will hinge on liquidity and product professionalism” he said, noting that regulatory demands may limit leverage and force exchanges out of certain markets.
Bybit’s move to Dubai reflects its commitment to regulatory continuity. “Dubai welcomes the industry and sees crypto as an opportunity” Zhou said, citing the UAE’s supportive policies and practical measures like visa assistance. While top exchanges like Bybit plan to secure licenses in markets like Europe, Zhou acknowledged that smaller exchanges could gain ground in less-regulated regions by offering lenient KYC policies.
Web3 and Wallets: The Next Frontier
Beyond spot and derivatives trading, Bybit is betting big on Web3, particularly wallets. Zhou views Web3 as a solution for compliant markets where centralized exchanges face restrictions. “Decentralized exchanges and wallets will allow us to serve users in regulated environments” he said. Bybit’s strategy is to act as a broker, partnering with projects like MetaMask to leverage its brand and traffic.
“Our wallet doesn’t need to be complicated,” Zhou explained. “We offer perks to build loyalty, gradually cultivating user trust.” This approach aligns with Bybit’s broader philosophy of collaboration and specialization, positioning it to capture value in the decentralized space without overextending its resources.
A Culture of Speed and Humanity
Bybit’s internal culture is defined by speed and execution, with a lean team of 1,600 employees iterating products rapidly. “The cost of moving too slowly is extremely high” Zhou said, emphasizing that speed trumps perfection in the fast-paced crypto industry. This philosophy has driven Bybit’s ability to stay competitive, even as it refines its systems for high availability.
Zhou’s management style, influenced by his time in New Zealand, balances intensity with empathy. During layoffs, Bybit offered generous severance packages, earning praise from employees. “We strive to maintain good relationships because we’re bound to meet again” Zhou said, noting that several former employees have returned. This humane approach, combined with a relentless focus on execution, has fostered a resilient and adaptive workforce.
A Focus on Product Excellence
While Binance and OKX dominate with their ecosystems, Bybit is doubling down on product optimization rather than market share. “Since the start of this year, we’ve focused on refining every detail of our product” Zhou said. By targeting high-net-worth clients and institutional traders who can navigate regulatory changes, Bybit aims to maintain its edge through liquidity and professionalism.
Zhou’s vision is clear: rather than chasing the top spot, Bybit is building a sustainable business that thrives on specialization. “High-net-worth traders will always find ways to trade,” he said, confident that Bybit’s focus on quality will attract discerning users in an increasingly regulated world.
Bybit’s Role in Crypto’s Future
Ben Zhou’s candid reflections reveal a company that has learned from its journey while staying agile in a volatile industry. Bybit’s evolution from a derivatives-focused upstart to a diversified exchange reflects its ability to adapt without losing sight of its strengths. With a collaborative mindset, a commitment to compliance, and a culture of speed, Bybit is well-positioned to navigate the challenges and opportunities ahead.
As the crypto market matures, Bybit’s emphasis on professionalism, Web3 integration, and user-centricrosaic partnerships makes it a compelling case study for exchanges seeking to balance growth with sustainability.
