Introduction
As markets prime up for a next leg up on the recent USA Bitcoin ETF we’ve called upon leading white label exchange provider HollaEx® to provide thoughts on the crypto markets and industry as a whole as well as what is new with their crypto exchange development software.
We asked what new features have been added, what unique security protocols are there behind the white-label and their ever expanding list of new partnership integrations.
Adrian from HollaEx® was kind enough to share the very latest below.
How has HollaEx® evolved since the last Q&A, especially considering the additional features
First thanks for this opportunity to share an update on HollaEx®. SourceForge has been a great way to share our exchange software and has given our customers a way to more easily compare HollaEx® against other white labels.
During the last 2 years the team has managed to release 6 new versions, with a new one coming in the coming weeks! These new updates have been released during a rather elongated bear market which looks like we are coming out.
HollaEx® v2.5 example for example was an update that clocked 21 new features alone. It isn’t an exaggeration to say that HollaEx’s white label crypto software has evolved into a comprehensive blockchain solution, and it is exactly why the software has accumulated multiple awards.
How has the wider industry blockchain based financial system evolved? What does it mean for exchanges?
Since our last conversation in 2022, not only has our software evolved significantly, but the entire blockchain sector has also experienced notable maturation. The industry has now garnered recognition as a distinct asset class, particularly with the emergence of active US-based Bitcoin ETFs, which are consistently setting new trade volume records. These ETFs are already rivaling the volumes of established sectors like Gold SPDR and Semiconductors, enhancing the visibility of Bitcoin and native blockchain-based financial systems, including exchange software tooling as a service.
Moreover, regulatory improvements have been implemented following the exposure of overleveraged players such as ThreeArrows Capital, FTX, Celsius, and numerous other bankruptcies. While the collapse of these entities may seem concerning, it serves as a catalyst for industry maturation and risk reduction by eliminating overleveraged businesses.
Could you provide insight into any additional security measures or updates implemented by HollaEx® beyond those discussed in the previous interview?
Securing a crypto exchange presents unique challenges due to the irreversible nature of transactions and the constant 24 hours, 365 a day availability of global withdrawals. This is unique to crypto and is a stark contrast to traditional financial institutions which don’t have true global transferability. With nearly eight years of experience embedded into the software, HollaEx® has developed a highly reliable and robust solution. This resilience is attributed to the open development model of HollaEx®, limited reliance on any third-parties and the extensive usage of the software by hundreds of exchanges, which indirectly contributes to its continual improvement and refinement through real-world testing.
What are some unique crypto security issues that may not be widely understood?
Many overlook the fact that a significant portion of lost funds that occur isn’t the actual problem of the exchange itself, but actually a problem stemming from very simple self-inflicted errors made by the user themselves. These errors include sending incorrect amounts and falling victim to phishing or scams that are occuring off-exchange, often in person by a sophisticated scammer. The exchange does have systems to prevent this, usually withdrawal limits can add virtual speed bumps along the way allowing users time to think before sending too much funds out, and allowing admins to catch any suspicious transactions.
Additionally, and most importantly inadequate security practices such as lack of two-factor authentication (2FA) and neglecting email security contribute to the users’ over vulnerability. The white label exchange has systems to nudge the user into the best security practices and consistently reminds them of what is going on with their account at all times.
In cases of suspicious activity, the system may block sensitive actions and has extra layers of security to bolster exchange resilience. Version 2.7 introduces enhanced monitoring for example. This feature allows both the admin exchange operators and the user to have oversight over the incoming activity from specific IP addresses for logins and for active session management.
There have also been many behind the scenes security enhancements include transfer limits, velocity controls, and measures against repeated login attempts, complemented by reCAPTCHA and encrypted communication for email verification. These measures ensure a robust user verification process, enhancing exchange security.
Furthermore, the latest version of HollaEx® enabled programmable API access through secure whitelisted IP addresses, facilitating the development of custom business applications and streamlined operations, including crypto token reward issuance and user incentives to boost engagement.
What other developments have there been within HollaEx® besides the extra security and trading?
Besides the rare security and trading features, our wallet capabilities have expanded considerably by supporting even more digital assets, blockchains and coins. Exchanges using our software can now offer 100s of digital assets to their users. This means more ways to deposit funds and more ways users can trade and generate revenue for the exchange business operator.
Another non-trading feature is staking. HollaEx® has rolled out DeFi staking which is a way for people to receive crypto rewards for locking up tokens. This is all done from each individual user’s own personal wallet and so the security is handled fully on the user side. This allows users to openly access a rewards based system directly through their wallet using various blockchains. At this time DeFi staking is active for XHT, however operators can reach out to us to discuss their own DeFi token staking needs.
We’ve also released CeFi staking which is way easier for exchange operators to set up their own staking pool directly on their exchange. Centralized staking is simpler because all the reward interest rates and mechanics behind reward distribution are handled by the white label crypto software, and not by the blockchain smart contracts. This makes distributing rewards much more user-friendly for the user and much more efficient as there won’t be any blockchain transaction fees.
What are other ways customers can interact with HollaEx® software?
Businesses using our white label exchange can now get a dedicated exchange application or app. The app can be rebranded in the same way as the web browser version of HollaEx® and will work on both mobile devices and desktop. This means such as iOS, Android, Windows and macOS dedicated apps running outside the contractions of a web browser.
Having a dedicated app for your user base allows them to transact quicker as apps are typically much more responsive and always running. This kinda speed and access greatly encourages transactions and improves business flow. Apps are also a powerful branding strategy as users will tend to view and interact with apps more frequently as they are more intuitive, thus building stronger trust and a stronger connection to your user base and brand.
Mobile phone applications also allow the exchange to give useful and consistent reminders about market prices and news through alerts and notifications. These reminders give the operator a subtle way to market and nudge users to interact with the app and their exchange platform as it is much more personal and within the user’s personal desktop or phone app list. The app is available for premium exchanges using ‘Enterprise’.
Expanding on the discussion of tokens, can you provide examples or case studies of businesses or communities that have successfully implemented tokenomics using HollaEx®? How has this feature evolved since the last Q&A?
Token listing with our exchange white label software has remained a killer app feature on HollaEx®. We’ve managed to expand the value of listing tokens on HollaEx® by allowing operators to create unlimited markets through the Quick Trade OTC broker interface. This UI is presented to the user as a simple buy and sell interface that only requires the user to input the amount they want to exchange. The OTC system is easier to manage compared to an orderbook market because there is less to monitor and its price adjusts automatically based off larger platforms such as Binance, Kraken, etc. Operators only need to set their desired price and connect a wallet with their token that they wish to sell.
As mentioned before, CeFi staking has also become simpler to set up for exchange operators that have their own custom token, or who want to set up a token staking pool for existing tokens with their own custom staking reward rates.
The HollaEx® exchange system also has made it easier for operators to generate alternative revenue streams from withdrawals. Each token on the exchange can now have an additional withdrawal fee added which will go to the operator’s wallet upon settling with the HollaEx® network.
Overall the HollaEx® software has made the tokenomics system efficient to set up when compared to going 100% on chain. HollaEx® CeFi exchange tooling can now be used as a stepping stone before committing significant resources to DeFi tokenomics.
Are there any new partnerships or integrations that HollaEx® has entered into, especially considering the mention of the partnership with Amazon’s AWS and DigitalOcean in the previous Q&A?
In 2023 we established numerous partnerships. These partners provide additional features to the core exchange software in areas such as KYC/AML automated onboarding systems, Fiat on/off ramps, communication support systems, trading bot creation and cloud hosting services.
A significant partnership integration has been made with Banxa that allows operators to seamlessly add automated on and off ramping for most of the largest fiat currencies.
We’ve also made partnerships with Amazon AWS, DigitalOcean, Crisp, OVHcloud and many more which have all improved the user experience for both user and operator.
Could you share insights into the future roadmap for HollaEx®? Are there upcoming features, partnerships, or developments that users can look forward to in the coming months?
The biggest item on the 2024 roadmap will be margin trading. This will allow users to borrow against their crypto collateral within their exchange wallet so that they can take a measured leveraged trade as opportunities arise in the market. Margin trading allows users to use their unused capital in other more profitable ways. An exact timeline and date on this can’t be divulged at this time but I can say it is very much a focus for 2024.
Related Categories