Founders Club Interviews Anndy Lian- Crypto Investments (Part 2)

Founders Club Interviews Anndy Lian- Crypto Investments (Part 2)

The cryptocurrency market has been experiencing some fluctuations in the past few months, leading many investors to wonder about the future of the market. Eugene Shilov of Founders Club sat down with Anndy Lian to discuss the crypto market cycle and his insights on cryptocurrency investments.

 

Crypto Cycle

Anndy first touched on where we currently stand in the crypto cycle. He emphasized that he looks at the numbers and believes that Bitcoin is in a good position right now. He sees Q3 and Q4 as being a good time to see how far Bitcoin can go this year. While he doesn’t think we are going into a super bull cycle in the next one or two quarters, he does believe that there will be a gradual signal that it’s going to come soon. He believes that after the FTX incident, the three arrows incident, and the bank crisis, it will take some time to clean up the market. Therefore, he sees Q4 as being a good time for the market to pick up.

When it comes to investing in cryptocurrency, Anndy offered some advice for retail investors. He believes that people should know their finances well and not go beyond their limit. Many people are willing to bet more money than they can manage, which is a big mistake. He encourages people to invest in cryptocurrency to get a proper return, but not to gamble.

Lian also suggested that people should look at the projects they are investing in and consider the long-term potential. He advised people to look at the team behind the project and what they are working on to determine if it’s a good investment. he also highlighted the importance of diversification. People should not put all of their money into one coin or project, as it could be risky. Instead, it’s important to have a diversified portfolio that includes multiple coins and projects.

He emphasized the importance of understanding the product and the project before investing in it. Many retail investors panic when the price of a coin fluctuates, causing them to criticize the project or even search for the founders. He explained that this behavior is a result of investors not understanding the investment cycle, the product, or the project.

The second point that Anndy stressed is the need for thorough research. He advised investors not to only research the project but also to understand when they can expect their return on investment. Many investors fail to realize their investment on paper, resulting in zero returns. Therefore, it is crucial to know oneself, the risk profile, the portfolio, and the timeline of investment.

 

3 Hot Topics to Look Out for in the Web 3.0 Era

Centralization vs. Decentralization

One of the most pressing issues in the crypto world is the debate between centralization and decentralization. Anndy pointed out, the trend seems to be shifting towards centralization, which is a cause for concern. Decentralization is a core principle of cryptocurrency, and it is what makes it unique. It allows for transparency, security, and a level playing field for all participants. Anndy went on to speak about the potential of decentralization and the need to redefine the term. He emphasized that decentralized products, apps, and economies are still missing in the market, and investors should keep an eye out for these opportunities. He encouraged investors to create their own ecosystems within a metaverse that is decentralized, sustainable, and can support the investors’ needs.

He explained that decentralization is not only about getting rid of banks and governments but also about creating a new and sustainable economy that can exist on its own. He emphasized that investors should look at re-centralizing decentralized products and apps and redefine the value of what is already being done in the decentralized world.

NFTs

NFTs, or non-fungible tokens, have been a hot topic in the crypto world for some time now. They are digital assets that are unique and cannot be replicated. Anndy predicts that NFTs will continue to gain momentum, and we will see more use cases in the future. Brands are already collaborating with artists and creators to launch NFTs, and this is just the beginning. The potential for NFTs is enormous, and we are likely to see more innovation and creativity in this space.

AI and Decentralized AI

Artificial intelligence (AI) is another hot topic in the crypto world. Anndy believe that AI can play a significant role in the decentralization of the industry. With AI-powered decision-making processes, there is a new layer of trust that can be established, which is critical in a decentralized ecosystem. Furthermore, decentralized AI can be a step towards a new economy. It is a win-win situation for everyone involved as AI can make smarter decisions and enhance the blockchain technology’s capabilities.

Gaming and Metaverse

The gaming and metaverse industry is another area that is likely to see growth in the coming years. The metaverse is a virtual world where people can interact with each other in a shared digital space. The gaming industry has been a fast adopter of blockchain technology, and it is likely that this trend will continue. Decentralization is crucial in this space as it allows for the creation of a sustainable economy. A good game with a strong community can lead to a more sustainable metaverse.

Raising funds

When it comes to raising funds for your project, timing is everything. If your product is ready and the market is ready, then it’s the right time to start fundraising. You don’t want to invest when the market is going to do badly and your product is going to launch only in Q3. Investors are usually impatient, and they are not looking at something that is 10 years down the road. They want to see the return on their investment as soon as possible.

Investors have different strategies when it comes to investment, and some may ask for a vesting period of five years. However, if your product is good, there’s no need to wait for five years. For instance, if your project is good, by the start of the first year, the valuation could be $10 million, and by the end of five years, it could be $1 billion. Therefore, it’s crucial to give them tokens in the beginning when the valuation is low, rather than waiting for five years and giving them everything when the valuation is high. It’s a win-win situation, and they don’t need to dump the market.

Investing in the right product is essential, and not all venture capitalists (VCs) are looking at it from the same perspective. Anndy suggests that timing is crucial, and not all VCs are looking at it from the same perspective. They are using LPs’ money, and as long as they can build a nice return, they have done their job. Therefore, it’s crucial to find the right investor who likes your niche and what you do.

Investment is all about investing in value, and it’s crucial to invest in something that you like. Investing in people is a serious thing to do because people change faster than the code. However, that should not be the case when we talk about investment. You cannot invest in the person because your debt is Bill Gates, for example. It’s essential to invest in value, and that’s something that you need experience. Invest in something that you like, and you will definitely grow.

When it comes to raising funds for your project, it’s crucial to find the right investor who likes your niche and what you do. Timing is everything, and it’s essential to fundraise at the right time when your product is ready, and the market is ready. Lastly, invest in value, not in the person, and invest in something that you like, and you will definitely grow.

 

The Importance of Timing in the Cryptocurrency Market

Cryptocurrencies have revolutionized the financial industry, and with the advent of Web3, the industry is expected to become even more innovative. But with the market still a bit bumpy, investors are uncertain and it’s not advisable to go for something that’s too out of the box. Timing is crucial when investing in cryptocurrencies.

According to Anndy, if you want to be listed on exchanges like Binance or Coinbase, now is the best time. The market is not at its best, and you have the money to pay for marketing. Building your project’s narrative is key to getting listed as soon as possible. While some may argue that you need your product up and running before you can list, there are blockchain projects worth hundreds of millions that are still in the testing phase.

The most defining word in Web3 space is community. Building a community is key to marketing your project in Web3. The CEO must interact with the community, and Twitter is an excellent platform to do so. Connecting with people, whether through a heart shape or a thumbs up, is how you build a community.

Timing is everything in the cryptocurrency market. Knowing when to invest and when to build is crucial. Building a narrative for your project is key to getting listed on exchanges. The CEO must interact with the community, and building a community is how you market your project. With these in mind, you’re ready to tackle the cryptocurrency market.

 

Ending

Investing in cryptocurrency can be a daunting task for beginners, but it doesn’t have to be. In fact, investing in crypto can be easy and accessible to anyone who is willing to try. The secret is to start small and try it out. Don’t wait for the perfect opportunity, just take the plunge and see what happens.

One common question beginners ask is how much they should invest in crypto. The answer is simple: invest what you can afford to lose. You don’t need to put in a large sum of money to start investing in crypto. You can start with a tiny bit of investment and see how it goes. The goal is to try it out and learn from the experience.

The key to successful investing in crypto is to be consistent and not rely on luck. You have to understand the fundamentals and realize your profit. Once you have made a profit, you can reinvest it in other things that give you a higher return.

It’s important to note that you have to know yourself before investing in crypto. You have to determine how much you can afford to lose and what your goals are. Investing in crypto is not about luck, it’s about understanding the market and being consistent.

If you’re a hard-working person, you can get involved in crypto projects by checking out some of the trends on Twitter. This will help you understand the market better and determine when the right time is to invest.

It’s important to rebalance your investments and not hold on to them forever. This is something that many crypto investors forget. Realizing your profit and reinvesting it elsewhere will give you a higher return.

Anndy ended the interview with his famous quote- “Not financial advice.”

 

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Founders Club Interviews Anndy Lian- Crypto Trends of 2023 (Part 1)

Founders Club Interviews Anndy Lian- Crypto Trends of 2023 (Part 1)

Founders Club brings founders from all walks of life together. Sergey Kochnev interviewed Anndy Lian, an intergovernmental blockchain advisor, investor and book author at Dubai, Blue Waters Island.

Current state of crypto

Anndy was also asked about the current state of the crypto market and Bitcoin’s future. He believes that the overall sentiments are not bad, and there is still hope for the market. The market has had a good run, and even though the projection towards a $30,000 run is around the corner, it’s just a matter of perspective.

He also believes that investing in crypto is a long-term game rather than a short-term one. It’s similar to investing in the stock market, where there are fluctuations, and people should expect them. He mentioned that during the 2016-2019 ICO era, people were having 10x and 100x gains within six or three months, which is not the case anymore.

Regarding the main trends in crypto, He stated that institutions are looking to create products using a basket of cryptocurrencies. They are not only interested in buying Bitcoin, but they also want to invest in other crypto assets.

Another trend is the rise of NFTs. They can represent anything from digital art and music to in-game items and virtual real estate. NFTs have become increasingly popular in recent years, with some pieces selling for millions of dollars. But with the rise in popularity of NFTs comes the risk of scams and bad actors in the space. By arming themselves with knowledge, people can avoid falling prey to bad actors and ensure they’re investing in legitimate NFTs. This is the gist of Anndy’s new book, NFT: From Zero to Hero.

The problem with NFTs and Web3 is that some people are simply jumping on the hype train without truly understanding the technology. It’s important for people to understand the utility of NFTs and how they can be used in real-life businesses and games.

While some may argue that NFTs are simply a web2 experience, it’s important to remember that technology takes time to adapt and for adoption to take place. It’s similar to the dot-com bubble of the early 2000s, where it took a decade for companies to become trillion-dollar businesses. But with the cycles of innovation becoming faster, it’s likely that the adoption of NFTs and Web3 will happen more quickly.

How to gain crypto knowledge

Sergey asked about how one can gain practical knowledge in the cryptocurrency market? When it comes to cryptocurrency investment, many people focus on the potential gains and forget about the possibility of losses. It is important to understand that the experience of losing is just as much a part of the journey as winning. Therefore, it is essential to have practical knowledge before investing in this market. The first step towards gaining practical knowledge is research. Do not just read articles, try it out for yourself. You cannot claim to be an expert in something you have not experienced. Some people claim to work in exchanges or on projects without even owning an NFT or understanding how dynamic the market can be. Practical knowledge is key. Educate yourself about the market before investing. Knowledge is power and this applies to any investment, whether it’s real estate, stocks, or cryptocurrency.

You cannot just jump into the market, hoping to get lucky and make a profit. Many people bought Bitcoin when it was at its peak, only to lose out when the market crashed.

It is also important to remember that hodling or holding on to a coin is not always the best option. You need to make your own decisions based on your understanding of the market. Do not blindly follow the advice of others without considering your own interests.

Looking ahead

Looking ahead to the end of 2023, it’s difficult to predict where the market will go. However, it’s clear that true decentralization and self-custody will continue to be important factors in the development of Web3 technologies. As the industry evolves, it will be important to stay focused on what is truly decentralized, and to avoid being convinced or confused by marketing hype.

Q3 and Q4 of this year will be a more promising time for the gaming industry. It’s also expected that bigger brands in the US will find a way to keep themselves in the game, while maintaining a good reputation. This is a significant advantage for the industry, as it will drive more positive vibes and traction. Web3 is expected to remain a good muscle within the US ecosystem, even without cryptocurrency. The industry is hopeful that this new technology will usher in a new era of gaming that is more secure, transparent, and accessible to all.

Anndy ended his interview by emphasizing that gaining practical knowledge in the cryptocurrency market is essential before investing. It is not enough to rely on theoretical knowledge or the advice of others. Research, try things out, and make your own decisions based on your understanding of the market. Remember, knowledge is power.

 

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The Dark Side Of DAOs: Separating Fact From Fiction

The Dark Side Of DAOs: Separating Fact From Fiction

Decentralized Autonomous Organizations (DAOs) are digital entities that operate on a decentralized platform, such as a blockchain. They are typically governed by a set of rules encoded in smart contracts, and they can be used to manage a wide range of assets and activities.

Experts have varying views on the potential and limitations of DAOs. Some experts believe that it has the potential to revolutionize the way that organizations and communities are managed and governed. They argue that the decentralized and trustless nature can give users greater control and autonomy over their assets and activities and help create more transparent and secure environments for conducting transactions and making decisions. Other experts, however, are more skeptical of its potential. They argue that the complexity and uncertainty surrounding the legal and regulatory framework could limit their adoption and growth. They also highlight the challenges and limitations of using smart contracts and other blockchain-based technologies to manage and govern complex systems and activities.

The views of experts on DAOs are mixed, with some seeing great potential in this technology, while others are more skeptical. As with any new technology, it will likely take time for the full potential and limitations to become clear.

Potential Benefits

DAOs offer an array of tantalizing advantages over their traditional centralized counterparts. One of the most notable advantages lies in their decentralized nature. Because they are not tethered to a single central authority, users wield more control and autonomy over their assets and activities. This unique structure can usher in a more democratic decision-making process and give users a louder voice in managing and using their assets.

Last but certainly not least, security is an invaluable advantage. Decentralized platforms are often more secure than centralized systems, meaning users can enjoy an added layer of security for their assets and activities. This can effectively thwart malicious attacks, fraud, and other types of threats, especially for organizations that handle large amounts of valuable assets.

Potential Challenges

While the concept of a DAO presents many alluring features, it’s essential to acknowledge that there are also challenges and limitations to consider. One potential hurdle is the complexity of their operations. As they operate under rules encoded in smart contracts, this can prove challenging to understand and navigate for users unfamiliar with this technology. This can result in a lack of participation and hinder access to the benefits offered by DAOs.

Another possible challenge is the absence of legal recognition and regulatory clarity. Due to the relatively new and untested nature, there is currently no clear legal framework governing their operations. This can make it difficult to operate consistently and comply with regulations, creating uncertainty for users. In light of this, the operators must weigh the legal and regulatory risks involved in their operations and seek advice from qualified professionals knowledgeable about the intricacies of DAOs. It’s possible that new regulatory frameworks will be developed in the future, but it would require collaboration among regulators, industry experts, and other stakeholders. This effort could lead to clearer and more effective guidelines for its operations. Nevertheless, it’s also conceivable that these changes could take significant time and effort.

Ultimately, the evolution of DAOs will depend on the willingness of regulators to embrace their potential benefits while also addressing the challenges they pose. As they continue to grow in popularity and usage, it’s likely that new solutions and regulations will emerge to support their sustainable growth and ensure their potential is fully realized.

Potential Use Cases

DAOs possess a paradigm-shifting potential to disrupt various industries and use cases. The possibilities for applying are limitless and some of the areas where they can create a colossal impact are governance, finance, and gaming.

It offers a novel approach to governance, where they can manage and oversee an extensive array of assets and activities. In the finance industry, it can bring about revolutionary changes by facilitating various financial transactions such as the transfer of funds or issuance of digital assets. Due to the trustless nature, they offer a secure and transparent platform for conducting financial transactions, leading to more reliable and efficient financial systems. It can be leveraged in the gaming industry to manage and govern virtual worlds, games, and other digital experiences, providing users with more immersive and engaging experiences. The decentralized nature o can create more secure and transparent gaming environments, leading to more engaging and captivating user experiences.

For example, a group of individuals could form a DAO to manage the allocation of funds, vote on decisions, and other activities related to the community or organization. The members could use smart contracts to encode the rules and governance structure and to manage the allocation of funds and other assets. Because it would be decentralized and trustless, the members would not need to rely on a central authority or third party to manage their assets or conduct transactions.

The members could use the DAO to vote on decisions related to the community or organization, such as how to allocate funds, what projects to support, or who should serve on the governing body. Because is it transparent and immutable, the members would be able to trust that their votes would be counted accurately and that the results of the vote would be fair and unbiased. The use cases illustrates how a DAO can manage and govern a community or organization in a decentralized manner. By using smart contracts and other blockchain-based technologies, it can provide users with greater control and autonomy over their assets and activities.

Governance Concerns In Reality

Is the reality of DAO the same as what I have shared above? My straightforward answer is “NO”.

When some people talk about DAO, they immediately mention underlying technology, decentralization, transparency, and revolution. When some project teams talk about it, they speak on things like voting and governance. “Governance tokens” are perhaps the most shameless scam in this industry: “Buy a token, and you’re part of the DAO.” It gives you the illusion that you have the opportunity to “decide” and you are owned part of the project. Even if the price dropped, it became more acceptable because this is your own project.

When a project team has carefully prepared and put a proposal on Snapshot, what choice does the “community” have? First, because of their limited knowledge, energy, connections, and abilities, people cannot propose valuable ideas. Second, voting rights are not as simple as one person, one vote, and you have already experienced that.

The Arbitrum team released their token before the holders did the voting. The Arbitrum Foundation faced backlash from the community after it held a “ratification” vote on decisions it had already implemented, leading to questions about the vote’s meaning and the platform’s decentralized governance structure. The proposal, known as Arbitrum Improvement Proposal (AIP-1), allocates 750 million ARB tokens (around $1 billion) to the Arbitrum Foundation for operational and administrative costs. The foundation has since announced that it will break up the controversial governance voting system and redo the vote after token holders revolted against it. Citing another incident, the ETH miners voted against 1559, but it still goes live -There has never been a victory for the people.

The current state of DAO governance is fraught with several issues that need to be addressed. One of the primary problems is the complexity and opacity of the governance process, which can make it challenging for members to comprehend how decisions are made and participate meaningfully fully. The distribution of decision-making power may not always be fair or transparent, with some members holding more tokens or influence than others.

Another significant issue is that the governance mechanisms are also prone to manipulation or capture by a select few powerful actors. These actors can skew the decision-making process in their favour, undermining the decentralized and community-driven principles that DAOs are meant to embody. Participation and engagement are also problematic, as not all members have the time, resources, or expertise to contribute actively to the governance process. Consequently, decision-making power may be concentrated in the hands of a small group of active members, which may not represent the broader interests of the community.

Do You Still Believe In The Future Of DAOs?

Yes, you should still believe in future.

These issues highlighted above necessitate more transparency, accountability, and inclusiveness in its governance. To address them, innovative governance mechanisms like quadratic voting, liquid democracy, and prediction markets are increasingly necessary. These approaches can foster more effective and equitable decision-making processes. Many experts including myself believe that DAOs represent a promising new model for decentralized governance and organization and will continue to play an important role in the future of blockchain technology and beyond. They are still in their early stages of development, and there are various types of DAOs with different goals and objectives. It is up to the community to critically evaluate the current state and work towards improving their design and governance in order for them to reach their full potential.

The DAOs you see right now maybe not be ideal. Jack Dorsey, the co-founder of Twitter and Square, has expressed concerns about the decentralized nature of Web3 being compromised by VC firms that prioritize profits over the principles of decentralization and blockchain technology. I believe that this issue extends to DAOs as well and that they are also compromised.

Some propose a more decentralized web, which could be called Web4, to address this issue. While the specifics of Web4 are not clear, it is clear that decentralization will be a central focus.

Source: https://www.benzinga.com/23/04/31661985/the-dark-side-of-daos-separating-fact-from-fiction

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