CryptoBasic Podcast

Your source for all Cryptocurrency information, made for the novice investor. 

All right,

Karim:

brian, i'm sure you had a great joke about some kind of terrible movie.

Karim:

Wait, welcome to today's edition of the crypto basic podcast what you're listening to is a part of our wanna one syriza collection of standalone episode where we explore projects and concepts from the ground up today's topic is exchange coins wanna one and we're going to focus in particular on by nance kucoin and costs now my name is corinne baroque and i'm gonna be your host for this episode my job but we promoted the guide the conversation and hopefully as some of the questions you want answers to but here with me today in order to actually answer those questions and break down these projects we have brent philbin i what's up men and michael likey yo yo yo check it alright guess so exchange coins have become increasingly popular and it's fair to say that exchanges air probably some of the biggest players in the crypt of space overall, right?

Mike:

I mean from finance we talked about multiple times and our flagships and the's projects are really starting to become more and more prevalent in this space.

Karim:

One of things that i want to start out with is why did we pick these three projects in particular as being representative of exchanges overall, even though we know there are other exchange coins out there?

Mike:

I think this one is pretty easy to answer these three coins fit the category of small, medium and large so they're going to provide their own interesting comparison and contrast for what they offer as a token its utility and what we can use to analyze feature competition and other things as they present themselves.

Karim:

Yep also i've owned all three of these coins, so it was a little bit easier for me to learn about coins that already learned about and make sure i didn't miss anything but yeah, there are a lot of coins out there and these are just the ones that we picked so don't yell at us we're like wait a minute what about kucoin on exchange blonde stuff so we know there's other exchange coins out there that's right?

Mike:

There are other exchange coins these were just the three that we are covering but brand you beat me to the punch another thing that we are really wanted to get into the habit off is just explained what are personal positions and biases are towards the coin when we approach the research just to give an audience an idea of where we are coming from so i'm gonna go to both of you, right?

Karim:

You just hinted at you said that you have owned all of these what were your positions going into this show and did you have any bias is going into the research so my positions now are i only own by nance of the three, and i shows to get rid of costs for a reason i'll go over later.

Mike:

That is not necessarily indicative of anything wrong with their platform and then kucoin i also owned at one point, but got rid of because of some concerns i had with the platform cool.

Karim:

And you know what?

Brent:

I want to correct my language, i said, did you have any bias?

Karim:

Is where i really should be asking is, where do you think your biases lied at the beginning of this?

Mike:

So, mike, i'm gonna go to you, tell us about your positions and where you think your biases.

Karim:

We're coming into the temple since coming into this episode, like brent said, it was very easy because we have owned all three of these coins.

Mike:

I have owned all three of these as well.

Brent:

I still currently own all three.

Karim:

The total evaluation is flip flop based on the small, medium, large and that's more of the game theory of risk versus reward, in my opinion, so now, mike, i want to ask you a question before we dive into the project's themselves, which is.

Brent:

I've noticed from the very beginning that you have always been very interested in exchange coins.

Karim:

I think that you're somebody that identified their potential very early on.

Brent:

So why do you think that you in particular, have been so interested in these projects from the very beginning to?

Karim:

Me this is pretty simple and i would summarize it in the sense of i have absolutely no experience in the financial world i have no experience in what it's like to own traditional stocks traditional investments you know i've had to keep a large amount of my net worth in you know, liquid form for most of my life for a variety of reasons mostly poker related so you know, i really took my time and didn't do my due diligence to my twenties to look at the large financial scale what i liked about these right away was that they have the function of a lot of the securities and even at this exact moment i'm still a little shaky as to what the full definition of his security really is but in my very limited understanding it's something that provides a little bit of dividends it provides some type of value and i like the idea of what exchange's provide because in my opinion they were one of the first crypto coins that had pure use cases they had fully functioning products you are able to look at the math behind the scenes and say if a equals x then this is what this evaluation will be and a lot of these coins are based on the trading volume on the site and that's why you know finance coin is going to be higher and market cap because of how much trading volume they've accumulated since their inception.

Mike:

It's allowed that coin tohave a lot more.

Karim:

Utility provide value, and part of the game is understanding.

Mike:

Does these other projects have the opportunity of reaching fifty percent of the way up of what biases accomplishing and that's the math?

Karim:

You have to put in to your consideration, very interesting.

Mike:

And i think also from conversations we've had, it almost seems that by focusing on exchanges, or at least putting some portion in exchange is you are, in a way, hedging against one of the biggest critiques of crypto, which is that kryptos mostly used for speculation right now, that a lot of the traffic is really just about trading and speculating. Well, by positioning yourself with the exchanges, you're essentially trying to capitalize on that current trend.

Karim:

Correct. Yeah and i even have a more fifty use case in a more specific example what you just said when this originally caught my attention kucoin and by nance coin i believe i initially purchased them sometime in october or november of two thousand seventeen at the time they had different dividend generating models at the time i was interested in buying nance coin because i was using the binah nsa referral code now what happens is when you sign people up through by nance it allows you to earn at this exact moment twenty percent of their trading fees so what happens is you would get a lot of little pieces of coins in your account you may have a point zero zero zero dad one dash or these little sprinkles and my thought process was at the time and i'm still considered very early into the crypto space but what i liked about this was that i had no idea what was going to succeed i knew that i was ignorant and the way that the two models are set up finance would give you the part of the trading fees of your referrals kucoin gives you a share of all of the referrals so what initially attracted me to this idea was that i believe that crypto as a whole will rise significantly with the tides over the next few years so i thought it made a lot of sense and was a pretty good decision to get a lot of little pieces. Even if i had one hundred little tiny pieces of one hundred different coins, then something is likely to pop and that share maybe worth a penny today. In a way, this was my concept of looking for these penny type stocks. It may be worth a penny today, but it may be a dollar in three years. So by accumulating these little tiny lottery tickets, maybe over time something would actually pop right.

Mike:

Understood. Okay. So before i go into the vision, i'm just going to let the audience know personally. Unlike mike and brent, i have never owned any of these coins. I never really purchased any of the exchange coins. But as listeners know, i have the most boring investment portfolio of all time, so it doesn't really say much. All right, so i'm gonna go ahead and go into division, and i want to go to you, brent. Now, i know this is going to be a little bit more difficult because because we're talking about three different coins, but engine room, how would you categorize the vision of these coins?

Karim:

So? I think the easiest way to sum up the vision there is that they're trying to create a real security off of this every one of these coins feels like a real share in their company in some way, in each in their unique way, but they are using it to dr adoption to give people an incentive to use the platform, but also to give somebody passive income or dividends, which we would be expecting in the legacy financial world. And they all do that in some fashion.

Brent:

Awesome. Anything tad there might yeah, i mean, you know, they're visions are a little broader than that.

Karim:

They're all trying to do as much as they can pay developers to produce that this point, you know, it's, a flowing business model, you know, we see other companies like coin base is trying to take on other responsibilities other than just being, you know, in exchange so it's going to be interesting how these ecosystems develop, you know, i could easily see a scenario where finance kucoin aion adds value in other ways, you know, they could add more utility to talk in there it's really interesting to see how these projects are going to develop, in my opinion, awesome.

Mike:

So why don't we move into a general outlook of the history of exchange coins? Whether you want to focus on one in particular, brent, or you want to look at a larger umbrella of the history of exchange coins. Just give us an outline.

Karim:

So there's. Not a massive.

Mike:

History behind the coins because the earliest one of these that was created for an exchange coin was july fourteenth, two thousand seventeen that's when by nance launched, i just need to put that in perspective. We talked about how much money by nance's made, how they've become more profitable than deutsche bank and everything like that. They are not even a year old yet, like that's crazy there's been a couple of different things that's happened on each exchange as faras like some quick drama here and there, things that needed to be sorted out. But there hasn't been any sort of really wave in the community. That's changed anything, and that's i mean that's it that finances run by c z, because if i try to say his name, we can get it wrong. And he appears to be a great leader. Great ceo he's doing things right. He was part of a development for one of the big software companies i might be making up microsoft i'm guessing it that i probably should research that, but all of them launched find nobody had issues with their launch. As far as i know and that's where we are, we're still in the very first page of their history.

Brent:

I would actually take that a step further, and with finance in particular, i would say that any time a situation has come up, they have handled it about as well as the community could possibly hope for. They were able to catch some fish attacks and ended up costing the scammers a lot of money. And they really gone out of their way to make sure that things were handled in the best interest of the consumer because of how fragile this market really is. At this point, if you invest a few extra dollars in your marketing and make sure that your customer satisfaction is at an all time high, then you're going to continue to maintain the business as it continues to grow. Similarly, cost had a situation. I'm trying to remember the details, but essentially there was an exchange that on the exchange there was a bug that, like, shut down the exchange grant. I think you remember more about how this worked.

Mike:

S o this was actually a pretty unique thing that happened they put up a new user interface and somehow a part of the code changed every limit order into a market order and they all were immediately filled you might have had a limit order sitting out there that was really high just in case the price ever got up there almost like the opposite of a stop loss sorry about the noise and background mother i've got some work going some house i apologised so the all those orders got filled people want gone they're like why do i have all this bitcoin i didn't mean to do this and they think caught it right away they shut down trading and they rolled all of that back but also let the orders go through it's filled so they just shelled out a ton of money to give back all the people who had those orders accidentally set off and everybody else just got to kind of profit from it so nobody got a negative other than cost itself and it was only a positive for those that were using the site and we the example of binance if i remember correctly there was some sort of hack attempt but essentially by nance was prepared a bit they haul to trading the isolated the funds that were trying to extract the value and that's how they were essentially able to to screw over the hacker's right essentially yeah i mean they had some internal ah warning bells that went off that were like hey there's something weird going on here we covered that in one of the flag ships i don't remember which one but they caught hack a hacking attempt before it went off and the only people that got screwed where the hackers because they took their money all right guys in before we actually move into the features a structure and our rapid fire i'm getting a little bit of a vibe here that even though we're covering three projects it's almost like we're really looking at by nance as the leading coin and the leading project in this category is that a fair assessment of our finance it's not even close i mean even the coins that were not covering i think if you combine all of them they wouldn't even come close to finance okay so this is going to be that time of the show where we're going to move into our rapid fire section all right during our rapid fire section we try to take a general look at the coins now in this case is going to be three of them so this is going to be interesting but we ask brent a serious of yes or no questions to get a general overview of the project we are discussing so rent in this case question number one are we talking about coins, tokens or platforms every one of these is currently still in the r c twenty token, we'll go over possible plans for that to change in the future, but they're all tokens right now all right is a decentralized no none of these air decentralized it all there they're decentralized ina's faras they're on the ethereum they're on the theory in platform but they all get to make their own internal decisions with how these coins or shares relate to their platform or their exchange are they easy to move around?

Brent:

Yeah there's easy as any ethereum point to move around i will say a little bit here that if you don't have the coin on its native exchange, things get a little bit difficult as faras trying to get any of the value out of that coin so almost the yes and no but mostly yes okay?

Mike:

Are any of them mind or state?

Brent:

They're not my understate really because you're not doing any sort of proof stick but they're going to provide a passive income so no but it is their main et life known none of them have maine that's i mean they all have functioning exchange, but none of them actually have a mean that and not all of them plan to goto amane that okay?

Mike:

And lastly, i guess we'll take these one by one by nance kucoin costs do they sound cool and doesn't matter by nance sounds really cool well you know we're talking about a lot of things related to computers which are binary and they're also finance which has financed so i really like the name by nance it rolls off the tongue super cool the bnb is a little bit of a weird abbreviation for the token buyin schizo yes kucoin have no idea what that means and k c s is kucoin shares so shares gets it but kucoin doesn't sound cool it all so that's a no and costs cost very much rolls off the tongue it means i got what's funny is mike corrected me before we started this episode i thought it meant crypto one stop shop and i was like ah you take him to the grip the one stop shop but apparently it's crypto one stop solution which is a lot less stupid so i might have given them a noble for i knew that but now it's yes i like costs sounds nice alright sounds pretty good my do you have any opinions there on what is cool and what is not cool?

Brent:

I don't know maybe brighton i just differ on what you're trying to accomplish with the name i think they are all very unique they're very independent it makes me drawn to their brand when i hear it it rolls off the tongue find those those are all very acceptable cool sounding business seems to me okay so let's, go into how the technology's actually work.

Mike:

We're probably gonna have to split this up and teo the individual projects.

Brent:

But mike, just start giving us a general idea.

Karim:

You could start with finance if you want.

Brent:

If there's anything that applies to all the projects, you can cover it.

Karim:

But let's, start breaking down how these actually work and how their structure, yeah.

Brent:

I don't mind getting started here so so bye nance coin isn't twenty token i've seen it traded on either delta i've not purchased it there personally mumbling purchased it on the finance side itself what i liked originally was that if you owned the binance coin you get fifty percent off of your trading fees originally i had to go into my settings and turn this setting on i don't know if i actually turned it off at some point or if it needs to be manually turned on but that was something i remember having to do once you have the binance kucoin your account you get the discount on the trading fee's now it is scheduled to be cut in half every year and the first four years it'll be fifty percent off twenty five percent off twelve and half percent off six point seven five percent off and then finally near five they're going to take those train discounts away so hopefully by then the bytecoin itself will have a lot of gained value over time part of what has gained the value in it recently and there was a pump recently that senate from somewhere in the twelve dollars range up to the sixteen dollars range i know we don't like to talk about prices very much so i will say that has retraced a little bit since this happened but recently they noted that if you hold five hundred binance coins is in your account than your referral bonuses would pay double.

Karim:

So at this exact moment, your referral bonuses pay twenty percent of all of the referrals, trading fees.

Brent:

So originally, i had signed some people up on by nance, and at the time, early on it was.

Karim:

I want to say this was back in the october range, maybe november.

Mike:

It was fifty percent of your referrals, trading fees that was later reduced to twenty percent.

Karim:

And now they're offering a way to bump it back up to forty.

Mike:

So if you have the five hundred by nance coins in your account than all of your referrals, you'll get twenty percent of the training fees instead of i'm sorry, you'll get four percent of their training fees instead of only twenty.

Karim:

This makes a lot of sense.

Brent:

This is going to say, people with enough financial flexibility to have five hundred, binance coins in their account are also going to have the ability to refer bigger players to the game.

Karim:

I think this is a very solid move they should be doing so.

Brent:

One of the other things i researched while doing this episode was, i like that by nance has a buyback program, and i think that kucoin has this is as well.

Karim:

I'm not certain, if cost does at the time, but originally there were two hundred million coins released.

Brent:

Their plan is to buy back one hundred million of them and burn them.

Karim:

At this exact time of this recording.

Brent:

Brent, your number was different than the number i came up with.

Karim:

I'm not swearing that my number's, right, where did you find this number?

Brent:

I just popped off on kucoin market cap.

Karim:

I didn't do a lot of research into that, and there may be a reason that the coin mark cap number is different from whatever you got.

Brent:

Basically, i just want to say that all three of these do have a buyback program and as faras the similarities between all three of them.

Karim:

They all started with two hundred million in circulation, so you can actually compare their prices.

Brent:

Direct lied to one another, mohr less, depending on how many they've bought back.

Karim:

And they're all going to stop when they buy back half of their coins.

Brent:

So when they get to one hundred million, they won't buy any more back.

Karim:

And no more we created.

Brent:

So it will be completely deflationary mean, almost hyper deflation, alright.

Karim:

Yeah, thanks for helping out with that.

Brent:

I mean, my number was also from coin market cap, but i was looking at the total supply being one hundred ninety two million.

Karim:

I was assuming that they had bought back about eight million up to this point because they're buybacks occur every quarter, and they're using twenty percent of their profits to a buyback in token burns.

Mike:

So i was only briefly looking around for the token address because i believe the burn tokens sit in a certain address that doesn't get moved.

Karim:

I wasn't able to find it, and one of the other things we've talked about, with finance that's going to be very beneficial in the future, they have said, probably they are going to have some form of a decentralized exchange, and bye, nance.

Mike:

Coin itself is going to be the primary trading pair of the decentralized exchange.

Brent:

Now, i believe, by nance, put up what was a million dollars to the best decentralized exchange that gets offered to them.

Mike:

So basically right now, there's, a little bit of a chase to decide which one is going to be either purchased or partnered with or something along those lines.

Brent:

Brent's talked on many episodes about how difficult it's going to be for a decentralized exchange to get the transactions per second, that are necessary for it to function as an exchange without having overlaps or big gaps in trading costs.

Mike:

So it's going to be really interesting to see how this all plays out.

Brent:

The on ly remaining thing that i want to add on by nance is also recently, they had a very awesome feature, and that feature is, you know, earlier, i was talking about the little tiny dividends that you would get from different coins.

Mike:

So somebody that i referred.

Brent:

You know, i mentioned this in our discord. Chat. One time, i logged into my by.

Mike:

Nance the first time in a while and i noticed that i had nineteen tron took and and i'm just like, geez, one of my friends is actively trading tron to the point that twenty percent of his trading fees gave me nineteen drawn tokens, which means i failed somebody along the way, but either way, i was allowed to turn all of those tokens those little tiny pieces into by nance coin through one button.

Brent:

So i noticed this originally in the game, hearthstone in heart stone, you have dust from your extra collection, you can dust your extra cards and then use the dust to re create new assets for the game. Well, this is a very similar concept, and i think it works perfectly. They will buy back all of your little tiny pieces in trade you bye, nance coined for it. So my oh, city side sometimes doesn't like to see that i have hide zero balance clicked and it's still have thirty tokens, most of which are like a us dollar or less. And now i'm able to sweep all that up, get you know, a normal price for it in by nance going and go from there.

Mike:

All one hundred percent i would feel the same way if i had this.

Brent:

By the way, i think my brain would explode if i just had a bunch of just decimal places, and being able to wrap that up until a nice hole number would be pretty nice now, okay, i think that gives us a general overview of by nance itself.

Mike:

Brent. I'm sure that many aspects are similar that's. Why we group these together, but what can you tell us about kucoin?

Karim:

Alright, so yeah, kucoin is a their coin is called kucoin shares. Now, when we're talking about by nance, the rial on ly benefit that you get directly from a single by nance coin is you get to pay for trading fees at a lower rate, which is going to change each year. And you can also get your referral bonus doubled.

Brent:

Kucoin has.

Karim:

Built the bonus into the coin they also have a outside bonus which will go over a small portion of but the fifty percent of all the fees that kucoin collects are distributed to the token holders they're distributed in whatever the coin is is that they collect the fee with so you logged into your kucoin account you've got tons and tons of different little pieces of coins if you have any kucoin so you also get a small discount on trading fees if you own a lot of kucoin so for every thousand that you only get one percent off of your trading fees they're treating fees are reasonably low and there's a there's a scale based on how much our volume is so that's not a huge bonus you can only get the thirty percent off maximum if you have thirty thousand kucoin chairs in your account there white paper makes it very clear as as we've said with finances well this can change at any time according to the company they can say up there mind we're now we're given like twenty percent or ten percent whatever they can change it so it's not decentralized in any way but this is not a project that's even pretending to be the central so they also have like a vague we do plan to move to a decentralized exchange at some point in their white paper there's it's it's not even a full paragraph it's just there. No riel development has been done on it, there's no idea that they're going to necessarily did that. So they say they will. Who knows now kucoin was a coin that we originally had a referral bonus code four in our show notes, not that anybody has ever done anything with our referral bonuses in our show notes, i guess mostly because one is by nance and everyone's already on, financed by the time they listen to us, but we ended up taking it off because there was a little bit of awful white flags that were being relieved that we're that we're kind of coming out that once they combined, we decided it might not be a great idea to have our name attached to that. That was a while ago.

Brent:

Yeah, brent i didn't wantto decide how we wanted the discuss this whole situation because you and i basically were willing to step up to the plate and speak our minds at the time.

Mike:

I want to say this was in december, possibly early january, right when the market was peeking at it's basically, all time eyes for most projects, you and i were willing to say we weren't confident with k c s and a big facebook battle ensued, like, how much of this do you think is relevant for the audience?

Brent:

So, yeah, when we decided that we were going to go ahead and pull our kind of recommendation from kucoin, it wasn't.

Mike:

We didn't think, you know, toe, really snap since a kucoin is a scam like we would like.

Brent:

We did on tether this was strictly we saw a few like i said, not completely red flags, but they were off white flags first the outside of their kucoin they have they're referral bonus there for opponents already turned me off to the project in some manner because it is basically the multi level marketing set up you get two levels down from you, you get the referral bonuses up a line they're called direct and indirect referral ls and all together you could get a total of forty percent of the trading fees so it's twenty, twelve and eight so you get twenty percent of a direct referral, twelve percent of the person under them and eight percent of the person under that reinforcing my thoughts on this.

Karim:

I actually while i was doing my research for this kind of video, which i'll throw in the show notes from the kucoin steem where i was trying to see if they had any plans to change the way the token works in the future. And it was a video explaining the kucoin token is what it said in the video ended up being a five minute advertisement for the coke kucoin referral bonus, and it functioned exactly as you would expect when you're talking with a mole telemarketing person in their house trying to sell you like i don't grill master equipment or whatever new thing they're rolling with and brent, just to clarify, because this is not the only project that has a referral code, we just discussed finance, but to understand the difference finance referral code is on ly for direct people that you recommended not like, and right, wherever they recommended that, whoever they're exactly so it's, just a straightforward i recommend you and that's it, and if you recommend mike, then you get mike's fees.

Brent:

I get your fees that seat there's a pipeline upwards or downwards, so, you know, even the video goes, it spends a full minute going if you refer just one person every day for one week and they refer one person every day for one week in the they or whatever it was, and they go on down and this like, really soothing voice and they're like, look at how much you could have one thousand people in just a few a few weeks, and i'm like, wow, i've seen this before of this anyway, so i don't want to harp on that too much because i did actually get past that and then go ahead and purchased some kucoin shares at one point.

Karim:

Y brent.

Brent:

Why?

Karim:

Because i know that unite.

Brent:

Both have very similar positions on mlm tactics.

Karim:

Multilevel marketing tactics usually tend to derive most of their profit from the people in the affiliate program itself.

Brent:

More something customers.

Karim:

So what is it that made you see past this quote, unquote strategy and make you decide that it was still worth it, too?

Brent:

One of the things that i noticed was the comparison.

Karim:

Tio online poker on partypoker. Back in the day, partypoker had a very similar structure where you could refer somebody and then get residuals on the people that they referred under you for rape back, and it worked fine partypoker, still working as a company. They obviously partypoker makes a ton of money. But there was a referral program that did well, i think the really big difference here, in my opinion, three's why'd this was never an issue for me personally, you're not buying and selling products for the company, you're deciding whether or not you want to insure you want to pair up other people to do business, and when other people do business with each other, you get a kickback for it.

Brent:

So what? I feel like a lot of the times, these multi level marketing tactics, they sell a bunch of products to an independent vendor who then tries to resell to the company they get stuck with, like a garage full of useless products, and they people are not financially responsible enough to a business. In that sense, they end up making a lot of mistakes that's where they make a lot of their money. This is not i did not have to pay kucoin for the privilege to advertise for them. I didn't have to buy a product to hand it out that they were we didn't have to buy a bunch of exchange tokens that then you try to resell it to a bunch of people come incident that they will use it, so despite the pyramid, he feel on top, it really wasn't that so i got past.

Mike:

I got past my guess i want to say biases there and did end up purchasing some so what led us to kind of pull our recommendation and lead me to sell my coins but on ly because my portfolio is significantly smaller than mike's so i didn't want my allocation there i just moved it to something else they are supposed to be located in hong kong there was some i thought at the time that they might not have been located in hong kong, which would have been a problem with the chinese regulation because they wouldn't have been able to do their eye ceo and that kind of thing they're bonus pay was coming late later and later every single week like it was it was taking its time so something that should have been automated clearly somebody was having to do something click a button and go through ah process, which was very disconcerting and there was a support problem which you have on every exchange these support teams or damn near impossible to contact so with all that combining within the period of like a week, we just decided we're going to stay away from this i haven't been following closely since, but they're still functioning a quick search of kucoin scam all the ones were there calling in scam we're coming out around then, so i'm not saying we're putting a referral link in our show notes, but we're also not gonna sit here and tell you, don't go on, kucoin because we have no indication that they might be a scam.

Karim:

They seem to be working fine.

Brent:

So brent's point, what i felt like i felt like i put them on probation.

Mike:

They entered my radar as there's, a couple of potential red flags, and if anything else, continues a negative sign, then it's going to hold more value than it would on an individual basis.

Brent:

Now, since that time, i also did cell at the time, my entire kucoin allocation. I've since then slowly added a small position back, the red flags, air, reducing their handling things about as well as i could hope for this point.

Mike:

So at this time, i feel like they're trying to do the best they can buy the customers all.

Brent:

Right, that makes a lot of sense, and it gives us an idea of why you guys had an issue with kucoin in the first place and more or less how you have gun over those issues still something to keep an eye out.

Mike:

I do have a question for you guys now we haven't gotten into costs, but both with financing kucoin you guys mentioned that they have a buyback program where they're essentially trying to maintain the ah circulating supply at around one hundred million. So my question obviously, is what is the token creation mechanism or minting process? How our tokens created if they already have a system in place to burn them, what is the creation process?

Karim:

They were only created at i c e o i don't think i said specifically that kucoin is ten percent by back, whereas by nance was twenty percent, so they created all of their coins at ceo, and then obviously they had some reserved for company funds and that kind of thing and no more are being created at any point. So there's no proof of work there's no proof of state going on here, it's it's on the ethereum blockchain, and they use gas to move around like any other theory in token.

Brent:

So then brent, just to clarify, then, what we're talking about is simply, they issued two hundred million tokens s and through different processes or different rates, both by nance and kucoin want to use a percentage of the process to slowly buy back all the tokens until they get to one hundred million and that's just a way to increase agosto value.

Karim:

Basically, yeah, it's a lot of things, but essentially, i was wantto make sure we're very clear on this finance every quarter, he's going to use twenty percent of their profits to do a market order to buy that much profit worth of by nance tokens and burn them all. Those profits are put into the buy nance coins. And then eventually, once they've purchased one hundred million of the two hundred million and burned that many than the one hundred million will stay in circulation, very in nine kucoin basically for kucoin, they're going to use ten percent of their profits and mind you, we're going to get into this much later.

Mike:

But i do want to very specifically say kucoin is operating off of a much larger profit portrayed than finances because they're trying hard to get the trading volume.

Karim:

So they only have ten percent of profits because their profits are significantly smaller.

Mike:

So i expect kucoin to take a tremendous amount longer to buy back and burn all of their tokens.

Karim:

I do not know if it's done on a quarterly basis, a monthly bases, a yearly bases that i didn't find. But the goal is to finish with one hundred million of each token and using their profits to buy back and burn the tokens at market rates.

Mike:

Very interesting. So it is a form off, like stock buyback for each of these companies. All right, and what about costs? What can you guys tell us? I mean, we covered by nansen kucoin how similar is costs and where does it different, yeah.

Karim:

I'll get start on this because cost is going to be a little bit limited compared to these other two it's a much younger project it is significantly further down in market cap but what i do know about costs is that fifty percent of all of the revenue is shared over all of the cost tokens so each week usually about a tuesday morning i think the snapshot of the exchanges on a sunday at some point they freeze it they do all the transactions they calculate all the transactions fees that the entire site has made and they break it down in the fifty percent it's usually about you know thirty to forty five tokens you'll get a weekly piece of all of the trading volume right now most of trading volume revolves around ethereum bitcoin and the cost token itself so a significant portion of your trading bonuses are going to be in the form of three fairly usable pieces of cryptocurrency so what i found interesting about costs and this is a little bit of a pro in a little bit of a con so they have a system in place where you're able to move your cost tokens off of the exchange and onto your theory and wallet i keep mine in my metal mask wallet at first i thought this was great because for the most part you have to keep your exchange coins on the exchange but what do we preached everybody you will need to take your coins off the exchange as much you can the problem i have here is if there's ever a good reason for me to take my cost tokens off the cost exchange, then they're already worthless anyways, that makes sense like i can't think of many, and if you guys can counter this point, i'd be more than happy to hear on alternative, but i can't think of a good benefit to storing the tokens off the exchange versus keeping them on the exchange, right?

Mike:

I mean, yeah, the only reason you would do that, or the only reason we do that with our other tokens is because we don't trust the exchange to keep our funds safe so you shouldn't have twenty k and of, you know, your retirement or your savings just hanging out on bittrex or buying in, i guess the only possible thing will be a phishing attack and a hack as long as the coin would retain value, then it would make more sense to keep them off the exchange, i suppose.

Karim:

But that's just kind of the way i was looking at it, like you want to keep bitcoin off of an exchange because you're big quenches goes always be bitcoin, but if this exchange were to just go down and be worthless than my cost, tokens might not be worth anything anyways, right right, right, you're saying, like, with the exchange coins in particular, the risk of the exchange going down is basically already built into the coinage itself, so it was built into the price and risk of owning the coin.

Mike:

Yeah, right, right, right, right should kucoin really doesn't have much value outside of the exchange, which is kind of a con and it's an interesting, but they had a thing, but they had a good system on their website that gave very detailed step by step instructions with clip art and, you know, highlighters and arrows pointing toe what you're looking for, you know, basically holding my hand and walking me through it, like i asked you to do about four times a day, and so i was able to do that all on my own, which is huge plus to them, they could get me to do ethereum based technical work.

Karim:

They're doing a great job as far as i'm concerned.

Mike:

All right, so i have ah, couple of questions here, number one eases it.

Karim:

Correct that kucoin and cost, therefore have ah higher percentage of profit share than finance.

Mike:

By what?

Karim:

Metric?

Mike:

Oh, that's, right?

Karim:

So by nancy isn't distributing any of their trading feast through the broken that's, just kucoin strictly a discount, or it doubles your referral bonuses.

Mike:

Both kucoin and costs have separate referral bonuses, cost his referral bonuses basically nothing but a couple of the things i wantto throw in here about costs one.

Karim:

I am an idiot. We i was saying over the course of this episode that all three of these had a buyback program. Cost does not have a buyback program. They printed two hundred million coins, and they're not buying any of them back, like i was just looking at the outline, and i'm like, oh, i didn't put anything about thereby back there, and then i'm like, well, let me google that i actually don't remember there being a buyback program. I google that they do not buy them back at all.

Brent:

You guys may disagree with me on this but i think this is pretty important there's no copyright on an exchange not being able to add this later so one of the things that i want to keep in mind here when you were considering a lower cap project are there things that they could do that benefit both the exchange and the customer that could increase the value of the token i personally and this is why i kind of liked the idea of this small medium large comparison where i obviously have no idea if costs is going to be relevant exchange five years from now if they our then it's going to potentially be ah pretty sol investment because the innovation that exchange coins can provide over time is going to be very interesting in my opinion so what is cause doing the other side's aren't well originally they were trying to be another onboard fiat option and recently on the road map they were supposed to cross that threshold but i believe they've been having a little bit of difficulties with you know your customer laws as with all crypto related legal business side everybody is trying to figure out what is the best way that we can handle this we hold on e crypto currency project that is having a hard time to finding the regulation around it and is behind on the road map yeah the copies we never seen this before heard of a all right, well, look, that does make sense.

Mike:

I mean, like, i agree with you in general, that if cost is around five years from now, it's going to be a good investment.

Brent:

I think that that also applies to most crypto projects.

Mike:

At this point, though, actually, speaking of which, i saw a really interesting screenshot today of what coin market cap looked like in the top ten, five years ago, and it was absolutely incredible.

Brent:

I'm gonna share that in the discord.

Mike:

So in the show notes, there's, a link to the discord chat.

Karim:

You should join it and find that if you're not on discord already, you should be.

Brent:

But brent.

Karim:

So before we derail too much, because i like to keep our derailing towards the end of the episode, we still have a little bit.

Mike:

So one of the interesting things about costs is they hold old their share bonus for the cost coins in the dow now they are directed by that down anyway as far as the company's concerned but they what they do is they pay out all of these bonuses to tao smart contract which is a decentralized autonomous organization contract where they don't have control of those funds each individual user with their wallet can make a call towards that tao to receive those coins so in your cost wall that you have the option teo turn whatever coins you've made that you can into ethereum so any of the ones that can be switched over to a theory um you could do it for zero feet so you don't have to pay a gas bill you don't have to do anything and then then you can pull them back toward your wallet with just the one gas fee for all of it which is a nice little thing that you could do on the site you don't actually have to pay that gas fee but if you're doing it with like the way mike is doing it you would have to pay the one time gas fee to get it to your account so that's that's an interesting little thing i kind of freaked out when i saw dao in their white paper i'm like i didn't know they were a doubt but it is not a dow running the company it is, it is a dow just being the custodian of the funds that have been distributed to the users.

Karim:

All right, so i have a question for you guys here because one of the aspects of a project that you usually focus on is centralization, and as we've discussed in the past, sometimes it makes sense.

Brent:

Sometimes it doesn't make sense. In general, we're goingto prefer decentralization. Now, in this particular case, none of these coins are decentralized except for i mean, by nancy is working towards becoming a decentralized exchange. Before i ask my question, anyplace is kucoin cost no, right? They're going to remain centralized kucoin had a vague plan in their white paper costs, no plans final.

Karim:

All right, so here's my question and i'm coming from the point of view of an investor based on the research that you guys have done in your knowledge of how these tokens air structured, even if the token is not decentralized, do you feel that the incentives of the company for each of these tokens is aligned with the incentives of the token holder?

Brent:

Break it down for each coin, please?

Karim:

Well so so that's a little bit that's a little bit tough. So the finance one no, they're not aligned it all. The finance coin is strictly a discount on trading fees. Now it gets you to use their finance coin. And i guess therefore increase is the value of the finance coin. But i don't know that i would consider that a line incentive, especially because they're reducing its spectrum right so lightly arrived.

Brent:

Yeah it's non zero but there they intend to reduce it.

Karim:

They are reducing it. So the one where they doubled the referral fees that feels a little bit more line because it requires you to hold five hundred buyin syscoin so that's similar to a staking contract where you kind of lock up those coins and therefore create higher value because the rest of the coins were the ones that are being used in liquid so kucoin stuff they're operating off of ten percent of their fees that's it ten percent.

Brent:

They're trying to run an entire edward's case scenario.

Mike:

They're definitely running off of more than ten percent.

Brent:

Not every single referral is on a three tier system. Not everybody has to cook win share, alright.

Mike:

So real quick, just so the audience understands the argument that you guys are having bread when you say that kucoin is only operating off of ten percent, you're saying that because fifty percent of the fees are being distributed to token holders and the other forty percent can be broken up into their referral structure. So if a particular trade is referred by somebody who was referred by somebody who was referred, then kucoin has to pay three different people in that pipeline, and on top of that, they have to share the revenue with all that kucoin holders and mike, you are saying, yeah, but that's only the war ski scenario. The majority of trades don't have three tiers of distribution on top of us, so that the worst case scenario is ten percent the best cases, thirty percent.

Karim:

I don't know what the middle round there is, but that is a very small piece to be running a company off of so it's not surprising that they're having issues with support and that kind of thing, but they are aligned as faras incentives are concerned because they want more volume and more volume is good for both the exchange and the token holder.

Brent:

Brent so that's a great point, and i want to ask if i'm characterizing your position correctly here. Would you say that bye? Nance is less aligned with the incentives of the investor, but also because of their brisson structure, there are much safer bet. Kucoin, on the other hand, is significantly more aligned with the investor because of how their structured, however, leaving themselves a very low margin. It's going to create more difficulty for them to expand as a business and even to be around as a business down the line. So it's, a higher risk acid, but it might be more aligned, right?

Karim:

Exactly. You have very eloquently put the words that were in my brain to the mike little, fair enough.

Brent:

And what about costs?

Karim:

So costs is very similarly aligned with the community. They're paying out dividends so higher. Trading volume is good for the holders it's, good for the company and they our operating off of fifty percent. But of course, they have some marketing in that kind of thing. So but they get fifty percent and it's not like a worst case or a best case scenario. They get fifty percent of their fees, which for the longest time, is what finance was operating off of so it's possible, and their their support is probably not great, either, because their fledgling starting out company, but also they don't have a lot of volume, either. So they could be. I've never tried to put in a supportive with them, so i don't know what their support processes like.

Brent:

Okay, well, i think that gives us some pretty general over using just a reminder.

Karim:

The reason why i asked.

Brent:

If the ah incentives are aligned with the investor is because, when or least i believe and i think you guys agree when you are looking at a centralized project, then it's, good to see how align the incentives are with the people that are going to be making decisions. You never want to be at the mercy of somebody. Who's incentives are directly against yours, but i think that gives us a pretty good overview off each project. So let's, go ahead and move into our pros and cons section, where we just try toe. List off what we like, what we don't like, or any problems or benefits that we see. Brandt. I'm going to start with you. Hit me on the pros.

Karim:

Okay, so the biggest pro for these coins, they function like real securities now that may end up being a con at some point because they get shut down by the u s government or whatever the case. But for now they function like real security, so you can actually just buy these coins and get passive income without knowing how a staking wallet works without knowing how to validate nodes or anything like that. You transactions with your note. You just go on there, onto the exchange by their coin. It sits there and makes money not so much finance, but finance those help you with your trading fees so that's, their biggest pro. I mean, they're obviously they each one pays out a little bit differently, and they give the exchanges incentive. Increasing liquidity is, well you an incentive to help the exchanges increase their liquidity, and they provide you that passive income. So that's like in a nutshell, like what they all the big pros of those coins also might give anything tied there.

Brent:

Yeah i did a little research and i don't wantto bog up with too many numbers or anything like that but i was a little bit nerdy and it was important to meet us to kind of give a little bit of insight into what helps me make my decisions so the map that i found is that the kucoin per share costs roughly fifteen times as much and it pays out roughly ten times as much ten point five times as much as the cost token so when you're looking at two companies that are trying to do the same thing it helps in my opinion to connect the dots back and forth now suddenly was brought to my attention that kucoin is doing a buyback program and they're burning some tokens so that's going to affect these numbers a little bit but as of this recording the prices are much wider than the difference in pouts so now there's a lot of other factors to consider here i think the other factors to consider here in my opinion kucoin has a lot more volume it would be considered the medium exchange of the exchanges were talking about cost has a lot less volume it certainly makes more sense that costs could fizzle out easier than kucoin would kucoin has a lot more trading volume and has established itself with a lot more partners it's faras like trading coins and things of that nature so those factors air kind of built into the price is and at this time i wouldn't say i necessarily recommend one above the other, but one provides a little bit larger return, but there is additional built in risk, so please do all your investments carefully.

Karim:

This is not financial advice, ok?

Mike:

And just to re emphasize that point, mike, you're basically saying causes worth fifteen times as much as kucoin what? You're not getting fame fifteen times as much of a dividend, you're getting a little bit less than that. So just from ah, theoretical return on investments, that's reverse costs, paying out saris so causes paying out a little bit better than kucoin basically on return on investment.

Karim:

But as you said, there are other factors to consider.

Brent:

This is just a brief mathematical snapshot, and what about the con skies?

Karim:

So these air exchanges that's the biggest con? I mean your coin now normally, if you buy bitcoin, we thought you don't leave, not exchange like we said earlier. Like mike said, it was nice that you could take costs off the exchange and have it function, but it really doesn't matter, because if your other than the security issues, if the exchange shuts down which is one of the biggest scary things or tries to take your money or whatever the case they're coins going become worthless so you are buying shares with these coins in a centralized ecosystem right now that now each of them has their own little maybe we're going to do ah decentralize exchange but for now they're all centralized cos they all get to make their own decisions with nobody else telling any sort of accountability from people so the only accountability is the market could stop using them so all the risks of keeping your money on exchange are built in tow owning these coins that's the biggest con if you own bytecoin you keep it in your own wallet doesn't matter if you do it with ease because if this exchange goes down that's it so that's a huge khan and like alluded to before they're kind of security like and while that's nice tohave a coin the functions that way if there's ever a crackdown where they're trying to kind of sort these out there like right these are securities these air not securities these air security is these are not these air clearly first round draft picks for securities they're going right on to the securities list you know something like neo would go right on there but then other ones we'll be a little bit tougher to classify but these air getting there getting axed in the first round on any regulations like that so any regulation just to clarify brand these air getting axed on any regulation that approaches this by simply trying to put the current coins into the existing bancor so which is a possibility.

Brent:

If these coins get classified under diff under the current commodity and exchange your laws that we have, then these air going to function as security?

Mike:

It is also possible that we come up with new laws to pass it.

Brent:

S so if if whatever australia is deciding, we're going to classify these right now, then, like these air just clearly very classified the securities as we talk, as might think about very often, this is a little bit of something that feels like a trade off.

Karim:

In the sense of, you know, i believe that the regulations are going to provide security for these tokens eventually, but in short term samples it mate, provide a lot of chaos for these exchanges, so there's risk involved.

Brent:

I would like the positive regulation to come. I'm nervous about what negative regulations could come as well.

Mike:

So just is a quick side note and we're getting close enough to the end that i feel free to take my hosting powers to tangent here but it's a little bit of a matter of perspective right? Because we tend to only look at cryptocurrencies as projects that have power to decentralize and things of that nature we've talked about this before but if for example we look at these coins and consider them may be like a new form or a more subtle way of buying stock you actually have a form of buying stock or securities which protects you from some of the weaknesses of the old system so let me give you a quick example let's say that instead of costs or kucoin having a token they were publicly traded companies and all i could do was buy their stock well there's actually all kinds of internal manipulation that can hurt me as a stock holder if kucoin or cost decide to use a lot of their revenue to direct it to themselves so for example stock value or stock revenue or dividends could come after distribution of salaries for the executive team for example so if they decide that they're ceo is going to get paid twenty million dollars instead of ten million dollars that extra ten million dollars is coming straight out of the revenue base right but here it's a monetization scheme where we can invest and be guaranteed a share of the actual revenue. So it's, like a stock, but it's, not a stock, has got different layers of transparency now, granted these air not completely decentralized, but instead of just viewing them as alternative cryptocurrencies, we can also look at them as new types of securities or assets that allow us to invest in private companies in ways that might make it less likely for us to get cheated. So still pretty interesting. You guys have any. Any thoughts on that are no. All right, well, it wasn't that interesting. Any other cons, guys, kucoin and costs are running at a significantly smaller margin than by nance, and also significantly smaller volume.

Karim:

So it's gonna be very difficult for kucoin and cost to compete with finance. In the short term, they may end up in long term being all right.

Brent:

Yeah, one of the things that i think wouldn't shock me at all and it could be considered a potential khan is there's no like monopoly on this market. Anybody could step up, anybody could do it bigger, better, faster, quicker, who knows? And there's going to be a massive evolution process. I'm not saying that someone could come in overnight and just be a new superpower in this space, but maybe they could. Maybe these legacy financial institutions, you are able to get their foot's in, and they already have a tremendous amount of trading volume in history and experience and the's major players could step in and make finance, you know, more of a medium level exchanges it's really hard to say. We don't know what the future really looks like, so, you know, and that also brings up another interesting point, mike, which is that when we're evaluating some of the these projects it's not always just about supremacy, it can often be about sustainability and what i mean by that is simply that if costs or kucoin or by nance are around in eight or nine years and they actually make up a much smaller percentage off the crypto pie but the crypto currency trading pie has gotten very very big yeah, there could be exchanges out there that are trading you know, in the billions and trillions of dollars but that doesn't mean that these projects can't grow as long as they maintain a level of sustainability so it's not necessarily zero sum even though it can be to an extent like these can still grow and prosper even if other big players right and i look at this more like a predatory model you know you could be by it's could be a metaphorical like bobcat in you know canada that would be reasonably aggressive dangerous on its own but you introduce a lion to a bobcat well it just doesn't have a chance so like it's just hard to say what could come in and interfere with the road maps down the road interesting i'm pretty sure the bobcat might have a chance depending on the environment you know like what wins in a fight a great white shark or line have you seen shark nato depends depends on the turn ain't terrain where they fighting now my man depends on the terrain and that is the part that we cannot predict how this terrain is going to evolve all right brian i'm sure you had a great joke about some kind of terrible however where can we buy these projects?

Mike:

Well, you, khun by the projects on the exchanges that they represent.

Karim:

So just to be clear, i combined yes, kucoin in some finance, it's actually not it's.

Brent:

Not even tricky.

Karim:

They all have their own websites.

Mike:

It's great.

Karim:

Can i buy kucoin on by nance?

Brent:

I don't think so.

Mike:

Here's.

Karim:

What i can't say you cannot either.

Mike:

Delta before it had competition you were able to bye bye.

Karim:

Nance coined and costs on ether delta.

Brent:

I don't see much of reason to do so, but that is an option for you r e s and then what i want to do with this next section.

Karim:

Normally, we like to cover a specific project, and then we say, hey, what are the major competitors now?

Mike:

Here we actually covered three competitors, and we picked them as representatives of a larger portion of the space.

Karim:

So why don't you give me the honorable mentions?

Mike:

Talk to me about some of the coins that we didn't cover, but that should be a part of this conversation.

Karim:

Yeah i have some history with crypto bia i've done a an unfortunately large percentage of my trading volume on crypto pia over other options now they actually have two different coins that they use yes and they have completely different purposes complete different models one of them is on ly for transactions within the business so if you want to list a coin on their site you have to buy a certain number of their dot tokens dotc if you want to there's a couple other like really like irrelevant services but you have to pay in dot tokens for that they also have what's known as a ccps token which the cost for token on that is something wrong lines like nine thousand per share and there's a set number of them in existence and they were given out as whole tokens to all of the investors in crypto pia i want to say the total number of circulations only like sixty four or something like that and monthly the ccps token gives crypto pia revenue share in the form of dot tokens to the holders and i mean i looked into it i used the similar measuring metric model as i did with the pros and cons discussion and the crypto pia model was paying massively less and and i wasn't a big fan of theirs anyways so basically they gave those tokens out as a hey you are the investors you guys can buy and sell this, however, you feel like you decide it's value you guys, these air the shares, so be it so there's not that many of them in circulation, they're kind of expensive overall, don't feel comfortable advertising them in a positive way.

Brent:

Similarly, to the crypto pia are the two, the kucoin situation, they have some almost red flags.

Mike:

Nothing has come up as serious in my eyes.

Brent:

To me, the unused ability of the site was the biggest red flag i needed.

Mike:

So and by that you just mean it's, not you, that user friendly.

Brent:

It takes a very a long time for any incoming transfers or outgoing transfers like way longer than any other exchange way past the confirmations on the block, like you'll look and see eighty confirmations, and you're not even it's not even showing up on your crypto pia, which obviously causes you some concern, and i can no cryptic, so we could go on to the other competitors.

Mike:

What other, what other ones exist?

Karim:

I'll.

Mike:

Go ahead and separate here.

Brent:

I just want to talk about a couple of different options.

Karim:

I am very sure that who boy has a coin.

Brent:

I don't know any of the functionality on it.

Karim:

I believe that it is an asian exchange. I'm not sure which subset it falls under, but i know that they have their own coin and i believe the idex has a coin. I don't know what it's metrics are and the last one that i want a name dropping the competitors section. I am currently looking into a certain ceo. Ah, mandala, i have not completed my research, but it is something that i have not yet invested in. But i might consider investing in mike mandel is the one that's like new york stock exchange certified or something like that?

Mike:

It's like a kind of institutional project, i believe, right? All right and bring you have anything to the decentralized exchanges, air probably competitors that are going to have their own their own coins, you know, things like the waves, platform or kyber or things like that, but as faras, you know, centralized exchanges that have coins that may give you some sort of bonus, this is what we found, i'm sure there's more we're going to get yelled at like crazy oh, you missed the xbox kucoin exchange how could you?

Karim:

Neo is gonna have a decentralized exchange it wouldn't shock me if neo has some type of extra use for the neo tokens on that exchange, you may get some kind of bonuses who knows like it's it's all developing we've talked before i think about how exchanges and the centralized exchanges air becoming a more and more popular concept, so we should see even more of them pop out and maybe a lot of them have popped out recently that flew under our radar all right, so that gives us a general overlook of the facts more or less so now we get to speculate have fun talk about what's your personal future outlook on exchange coins well, i think that we're currently on sharknado six i think that will eventually be getting somewhere around sharknado fifteen by the time sharknado fifteen comes out, i think that there will be a lot of different things that have shaken up in the exchange landscape except for finance i think finance is here to stay they've done all their decisions correctly.

Brent:

I believe that by nance is going to be around for a long time in the future if they if they do go is faras releasing decentralized exchange i mean, i'm just in love with those guys so ifs easy we're in sharknado fifteen it wouldn't surprise me and see easy being dif yes it s so he could have he could have a cameo appearance or starring role when he gets all of his extra time by having his exchange be decentralized and the end result is some of these exchanges air going to piddle out into nothing and some of them are going to stick around i mean we've got little shitty exchanges and stocks left and right wow alright so brent really going on a limb with his prediction mike he believes some exchanges would do well and some of them will not will you give no no but i specifically tied them to the sharknado timeline yeah, we were all very impressed with that mike cream i think i think you're going to enjoy my response as much as you didn't care for brent response i'm gonna go out there broke quick i don't put myself out there by the year twenty thirty finance will be considered in the same category as thie apples the googles the exxon mobil's i believe this is a company that's going to completely define the landscape of cryptocurrency exchange is the apples and the googles mike those business might be out of business by then but whoa to ripple double that joe biden and be his biggest google google might be out of my way you know but i believe that it's going to be i don't know like walmart of it's just going to be the solution okay well, i would like to point out just for that.

Mike:

I say argument of arguments, there's, my english missile for today, argument of arguments.

Brent:

But even currently, the new york stock exchange doesn't really compare and revenues toe apple or google, so just worth throwing that out there.

Mike:

So we're saying, you're saying that by nance, it will be more relevant to the world of twenty thirty than they know he means more relevant to the crypto world.

Karim:

Old.

Brent:

Ok, it will be the apple or google of the crypt.

Karim:

It'll be.

Brent:

It'll set the gold standard, and it'll be recognisable.

Mike:

On a global level.

Brent:

All funds are safe.

Karim:

All right, so i think i don't really have a prediction here as faras feature.

Brent:

I'll look, i do think that by nance and coins of that nature will face some of their biggest challenges in the coming years.

Mike:

As we see the big institutional players starting to get involved, right, we've now heard that goldman sachs j p morgan, the company that owns the new york stock exchange, is looking a crypto.

Brent:

And from what i've heard, this isn't even necessarily a top down decision.

Karim:

As much as it has been driven by customer demand, the customers of the major financial institution are now demanding they provide services that allow them to get into crypto.

Mike:

These guys are going to come with a lot of money and experience, and we'll see if binah nce and the like will be able to maintain their control over this, we've set a couple times that were interested, too, when the legacy financial world is going to enter crypto at different levels, we know the real answer is when they can make money off of it, so, like you said, the demand is itself, they're not stupid, they understand, okay.

Karim:

If we provide a trading platform, we can monetize it in some fashion.

Mike:

Robin hood has a unique modification model, but it works for them.

Brent:

Other, more traditional exchanges have a traditional business model.

Karim:

If you give people an opportunity to make money off of it, then they're going to capitalize on it.

Mike:

Yeah, that makes a lot of sense, alright, so, guys, before i signed us off, is there anything else you want to add about these exchange coins?

Karim:

The only thing i want to add to the end here, brennan was right.

Brent:

We almost didn't have enough for an episode.

Karim:

As usual so the only thing i'd like to remind the audience off here is first of all, this was one o one exchange coins if you want to get a more general outlook of howto handle exchanges and which exchanges work in particular ways we did do a one on one on exchanges without focusing on exchanges that had coins attached to them in the utility of those conserve your just more interested in how to use exchanges to buy and sell crypto there's another episode for that we have a lot of one on one so go check him out for all are different projects and concepts then we've covered and lastly police raid us on itunes join our discord engaged with the podcast we really enjoy it but i think that's going to do it for today we hope this gives you a better understanding of the exchanges that are trying to monetize and create a new structure through the coin issuance we'll see how it performs in the future our experts today were michael locking and brenda feldman and my name is corinne veruca thank you very much for joining us safer this edition of the crypto basic podcast and just a reminder we're not financial advisors the member of the crypto basic team are just a bunch of clowns have fun or is it likes to say we are idiots all investments have inherent risk police do your research on a on a

The members of the CryptoBasic podcast are not financial advisors, and this information is provided for entertainment purposes. Please do your own research, and don't listen to these idiots.

The CryptoBasic Podcast is owned and operated by Cipher Consulting Group LLC.