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oh
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good morning and thank you very much older thanks for inviting me to come
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here and share my latest thoughts on the topic of tokens generation
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some of you know me from my blog perhaps i've been reading about the topic for the last four years
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which in block chain terms is an eternity because we're going by dog
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years so that would be like sixteen years more or less
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and uh how many of you uh have a red might balk or have my book
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could have how many have read it in the non english
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version it's available in i languages now so that's great
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so i've uh a structured my presentation to give you some of my latest
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thinking and if you thoughts if you've topics that i picked specifically
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and i'm going to start with a question
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if i want to ask you so what is the state of the market
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today uh is it excellent is it calmly say would say it's excellent
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yeah i see the market to stay there's excellent now how many of you it's it's good
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how many okay matt twenty percent how many would say is that bad
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things are happening yeah another twenty percent many what's his ugly
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okay i think yeah but it's a well it depends on the day it depends on the week
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of course this week as not being good if you have been looking at the price
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of tokens the price of the currency but unfortunately that is the wrong measure
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to look at and this is a sign that the market is very nervous
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'cause we keep checking the price of cut the currency how many times do
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you check the price the currency admitted i mean you don't have to
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tell me but a lot of times it means that something is not right
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i mean how many of you check their blood pressure's every day
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if you probably have high blood pressure right that's okay but you check it because there's something
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wrong underneath and and that is really an issue that i see right now and
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and i'm fortunate that a lot of people want me to listen to what they
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are doing in this space i get to see a lot of viewpoints
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and it gives me a good idea of what's going on and i even including
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all this range the good bad and ugly an excellent and so on
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and i'll give you a confession my my father was a doctor and his father
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was a doctor and everybody in my family wanted me to become a doctor
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uh i did not become a doctor but now after talking to have a lot of stops that are involved in
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the ice your space i feel like a doctor because i i am giving them some bad news sometimes and
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obviously go to the doctor they tell you things you don't wanna hear and and that's kind of where we are right now
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still uh who are we who are we here in this room in this sector
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i i showed a version of the slide that the token summit uh
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in new york last may this is not the that one so why we
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we are on the technology side there's blah change tokens stops and
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this is how it started this what he was up your environment and then
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what we have now we have lawyers regulators we have advisers we have
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funds of funds are coming more than a billion dollars in about seventy phones
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uh have just started uh recently i think about the impact of that
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accelerators that are now accelerators allows that are just helping companies become i
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see all companies analysts a lotta analysts are immersion into space
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so we'll be thinking what why do i have uh what happened here
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okay the uh what i have wars and regulators together
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i honestly i i ran out of space on the slides all that to
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make it simple like three three but actually there's another reason i thought
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about like is the lower than the regulators uh if they are talking
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to each other and and they all that he was going forward
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in this space uh if you're doing and i see we have to talk to lawyers you're not talking
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to regulators but the lawyers are talking to regulators and then there is hope there i think
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if this is an important
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segment and and there's been an explosion of icy or
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service providers it's a new terminology it didn't exist
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before if you google ice your service provider you probably won't see a lot of mentions of it
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and maybe i missed a few here there's probably twenty five of them on the slide
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many of them are in uh in switzerland and other parts of the
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world i'm going to be publishing this list uh on my blog
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in the next few days i see a lot of cameras wanted to capture that list yeah yeah a car talk to that
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talk to them yeah if you're doing and i seal and and again and
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that i know i know most of these people obviously i i
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but they are the ones that are driving the market right now to some extent uh i mean we could put lowers in here because
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you need lawyers as well to to go to the market but these are more technical and marketing
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and cannot business orientation types of uh uh providers to
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to help companies uh go uh and raise money
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uh but there's a warning here i mean there's a lot of exuberance here a lot
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of excitement uh and the uh and there's gonna be more of them coming forward
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i want this a few months ago at the end of the day really that the right for characteristics when when
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trying to uh do it i seal and one thing that has not changed is the startup characteristics are still there
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yeah yes quote funding is about disrupting the venture
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capital model and yes we're not taking money
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from venture capital firms and for the first time enjoying by the way
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john wasn't important month why because for the first time the amount of
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dollars that have gone into i see all companies have exceeded
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the money that companies traditionally race via venture capital funds in
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the early stage sector and angel and see brown
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and that number y. six hundred million dollars i knew there was something going on in june and i tell it up every company
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that was doing and i see order with thirty seven of the engine and that told him i was six hundred million dollars
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the total amount raised in c. then angel is five fifty so it exceeded dad and we have more than one per day
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so this was a turning point now we cannot keep track courtesy of resiliency how good these will say oh
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of the token itself how good have you thought about it operational transparency i'm
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gonna talk about them more than once very important topic going forward
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and the levels and the status of transparencies that would be expected i can
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tell you for five is going to be higher and higher and higher
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and and this is one of the reports today and the business model obviously so we have to ask ourselves why are you doing the token
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why there is a need for what you are doing very important i
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see for systemic risks right now for weak points in the system
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i talked about this in my last uh a blogger which i you labelled
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save i see all track this is s. eyepiece it uh the level
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of disclosures again is not is not up to the standards
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uh when i did my talking filings project two months ago all i wanted just a publish all the data that
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as your company's we're putting forward and i had about thirty five different up once it was very difficult
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to find a lot of this data because either is not there or is about ten different places
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so we're gonna get better we need to get better at how we disclose everything yeah if you want to get the regulars on our side
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to um some structures are all over the place it's whatever i mean it's great because the entrepreneurs are very creative
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and they are being very creative in the terms instructions of the token a distribution and and
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how they allocate tokens whether we sell ten percent or fifty percent or ninety percent
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it's a weakness for it now a post sale transparency of said that more
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than once already and that is an important aspect is not just
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important to just say oh we're gonna do transfers report the quality of
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the transcribers report is as important are just doing it itself
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and then finally value versus variation that that is a big disconnect right now
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so the valuations are all over the roof probably about ten times more than they should be on a relative basis there
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okay want to each other but the value is not there yeah we don't know yet because we need users
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so let me ask you how many of you i'm sure all of you or how on some token circuit the
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currency right i have any of you on some some kind of got the currency still ninety nine percent
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how many of you all in a talker and or in application where the talking is being used
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in the application not for trading not for trading yes
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for the actual usage and they are very few ten fifty percent i asked that question
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three months ago was about the same number maybe it's a little bit more now
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so that that is the disconnect does a lot of the uh users are are buying the
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token to to flip it or to make money they want five x. then x.
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before they are even users on the system and that is a big disconnect right now
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and then another one uh that that would add here is that i don't like to see a token being traded
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before the network is operational before the application is operational
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before the protocol is alive and right now just getting a bit out of hand
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we have a token sail and a few hours later so we traded and it's not
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even out yet but as in that that that's not very good it's not healthy
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people like to emulate if you live in many ways i wanna remind people that
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the theory i'm the token you could not read it for a year
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until after the sale just so happen in august finished fourteen you
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could not waited until the network went lie for here not
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to hold on to your token and pray a lot that they would do what they were said they were gonna do
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i would love to see more of that happening
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dollars can talk about this without talking about the dollars
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two numbers what how much was a way so far in crowd funding more or less the numbers public in the
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last twelve months one point seven billion dollars us dollars
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have been raised in this field was the maximum
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market cap that we reached recently
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september the first a hundred and seventy two billion dollars was a total market cap
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so was the correlation here that's my own correlation one percent
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it means whether has a billion dollars we were able to put in
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one point seven into i seals and that's what's good about this a lot of these people that have made gains in the crypt so
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capital markets are have been very generous and they have been putting the money back into i. c. e. o.'s and this is healthy
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right now we're better down it's gonna go up again so if we go to two hundred fifty billion dollars
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you can expect that we will have to an had billion dollars at least on a trailing
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twelve months bases going into i seals so that's kind of roughly my correlation here
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keep looking at these numbers that relations valuations and analysis here i meant by a valuation analysis
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so uh a lot of people are coming for trying to allies tokens and coming up
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with fancy words like talking to la city or network value with this counted
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whatever i mean it is all good tries but really really we we don't have a
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lot of the data in terms of analysts and correlating a token value with actual
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what's gonna happen underneath it a because many of these tokens
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and that represent protocols or applications will have users yet
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so you need users unique assistant if there's anyone parameter that is
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worth looking at is not just users is the ecosystem itself
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why is a theory um and at that point the leading up the currencies because they have an ecosystem behind that
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an ecosystem is it's not just users it's a lot of users it's a lot of developers a lot of start ups like
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a big companies and it has to do something it has to be used with one is used as a currency
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of standard for going into device euros if it is used as a currency to
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generate another cut the capital so there has to be something significant here
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and today was there's a lot of disconnect between value and valuation
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token types i mean this is a big topic when people come to
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me and they asked me uh for advice the first thing i
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talk about uh with that is can you show me what you are talking is going to do what is the token functionality
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and this is where that entrepreneurs i've been very creative and they are coming
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up with all kinds of token functionality and this is where the
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uh regulators will come and say well this is a security nodes
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utility insulin but really and i've written about this for for
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the few times and uh i i'm trying to sum it down into simple simple kind of categories
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i have come up to these four categories uh it's either ride it means it's it's a right
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to be participating in the network maybe uh it's it's a right to maybe vote
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yeah it it's a right to to to be doing some kind of function
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or it's a reward your and something for a kind of work
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i mean the work is very important to talk on world if you think about it it started
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with bit one mining what is mining it's a kind of work is a computational work
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it's a word that machines to and now we've taken that concept
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into the humans now we wanna get rewarded for human work
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and they sorta talking comes in in in many cases it is the future of work
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were we gonna be rewarded by tokens many of us spend an hour on
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face spoke but we don't get rewarded for that they take our eyeballs
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they resell it as advertising and we get nothing from then you
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models are coming where we do work we get rewarded
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ownership yes there was gonna be fractional ownership that the tokens
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is going to represent real estate comes to mind
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and we could be at all i think about the theory um as a guy has
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the guys is a toll you use the network uranus mark contract you pay for gas and is
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uh some of the token types and see two key questions again what will the talking to
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that is the first question but also why it okay
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why uh talk it and now i'm flipping the question yeah i'm asking people
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so what what is it all going to do but i'm also asking
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them why is there a need for to come and you have to ask
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yourself and right now i'm seeing a a big wave of companies
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just to recognise your because it's easier to raise money and everything is now
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coming out in every sector you name every sector there is at least five or ten
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soon enough fifteen companies trying to do the same thing for a particular
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sector there is similar to what happened with the internet and the web in
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ninety nine two thousand there was this phenomena called b. two b.
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market places and there wasn't any industry where there wasn't ab to be market place that was emerging
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at one point in time there were two hundred of them and i was counting then i was part of that industry as well
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and what the crash happened you know how many of them remained in business too
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i have two hundred i think would have a better track record in the i suppose space but ask yourself why token
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failures how will this and nobody knows nobody knows how will this and
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are we going to crash in a big way out we're going to crash
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in small ways that we're gonna go up and down and then up again
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i mean i i don't mind if a small icy always fail
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that's okay that's okay but i'm gonna get where we were a it and we should all get worried if the big ones
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fail that is why i sounded the alarm bell one i was seeing some of these i
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suppose raising a hundred two hundred million dollars to fifty with editing of the users
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that is a risk we're about you know there's car accidents every day it doesn't make the news
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oh it's okay happens unfortunately even if it lives of other r.
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o. uh our last unfortunately but if a plane crashes
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god forbid is it if it train crashes it makes the news and these update failures
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so that is the analogy uh that we have here uh i hope we can be
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resilient one we have failures for those are good because we learn from them
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and and let's let's hope that we have small ones really sure that that is
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the big one that is a big one and there's a precedent to that
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uh right now the regulars are scratching their head sand that trying to wonder
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what to do what not to do and so far it's been all k. a. in most places
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but there's something brewing i can tell you that uh for fact
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that there will be some positive changes going forward and
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there's a precedent the president is how many of you know all all have heard of general chore story all
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tori oh georgia we'll remember that name what about that a few months
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ago he was the father of venture capital in the nineteen forties
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it was the first b. c. and at the time they were running against
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the existing regulations in the us the securities act of nineteen forty
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and he forced a rewriting of the security regulation to
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allow for stocks to become a new asset
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not too long ago starts were not accepted as a way that you give you pay into it and
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then you get a stock which is a fractional ownership in the company that was something you
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and yet the five the regulation system to make starts now now we have stocks as it acceptable
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asset it's regulated stocks lawns commodities are regulated that we have
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on regulated assets as well in the alternative markets and
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tokens are going to be a new show asset class that is where it's headed here from now
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i can protect it's going to be regulated has a and accept it
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as in your asset class and that is really the hope that we have yeah so the regulars are the dilemma
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whether to apply the existing regulation which is not good because if they're starting point is the existing regulation
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it means and not admitting that hard changes ahead but if they start to change their religion
00:20:07
so well this is a new asset class it has some interesting properties it's different
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it is not all the security and this is why these are examples
00:20:19
then there is all and i see that hope coming final thoughts the
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three d.'s do it right don't type and deliver that is really
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these are a piece of advice for the start ups the startup
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committee because they are the ones that are driving this really
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surround yourself with real advisers of so that more than once a lot of
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companies are putting advisers on the list initially to get to the sale
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but getting to this is only the beginning and finishing this year is only the beginning is the beginning of your life as a sign up
00:20:51
the beginning of your life as a new protocol as in europe occasion as a new plot
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then you become like a startup there's no all changes the startup laws have not changed will not change
00:21:03
you still have to get users not to get developers you still have to have a brand in the market
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you have to have to communicate what you're doing you have to have support you have to hire people fire that you'd have to deal with
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uh that uh it things that happen so so on yourself with people that have been there mentors that have
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been have done stops to have experience dog overly lines
00:21:27
you can me perfectly sound from a legal perspective
00:21:32
and going raise millions of dollars but the ideas about one or the team is not with the technology is not great
00:21:41
and then finally you mean really we're doing this because the sense realisation is important it's peer to peer
00:21:47
it is a requirement i am saying now cases where the token is being use in central setups
00:21:56
the budget is about the central position that is the key can let us not forget that
00:22:01
there has to be a the standardisation and appear to be component does that is part
00:22:06
of the change going forward that is part of the innovation that we have to see if
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you don't see that we're not doing too much really we just doing another central
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system for another one and then when the music stops because right
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now it is quite loud there's a lot of exuberance lot
00:22:24
of excitement which is great talking to an extent to an extent right when the music stops what's going to happen
00:22:33
then we have to count how many users you have how many developers are using the plant for
00:22:42
and that's really what's going to count because the way to evaluate these companies do we
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to assess whether there was a success or not is not going to change
00:22:54
it's going to be about the impact you having in the market place
00:22:58
and what users are doing with your product what developers how do we would your platform
00:23:05
in terms of developing new applications and that is really what matters the most

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Conference program

Welcome and opening remarks
15 Sept. 2017 · 9:25 a.m.
446 views
Tokens Generation on the Blockchain
William Mougayar, General Partner, Virtual Capital Ventures
15 Sept. 2017 · 9:29 a.m.
145 views
Panel Discussion: Inside the Token Economy, moderated by David Wachsman
Alexander Bulkin, Ransu Salovaara, Dominic Zynis, John Quinn, Resp: Co-founder, CoinFund.io - CEO, TokenMarket - Co-founder, WINGS Foundation - Co-founder, Storj
15 Sept. 2017 · 9:54 a.m.
Swiss Finance in Transition
Olga Feldmeier, CEO, SMART VALOR
15 Sept. 2017 · 10:32 a.m.
Panel Discussion: IPO 2.0: How Blockchain is Disrupting Venture Capital and Investment Banking? Moderated by Marc Badertscher
Jamie Burke , Kenzi Wang, Eddy Travia, Richard Muirhead, Resp: Founder & CEO, Outlier Ventures - Managing Partner, Superbloom Capital - CEO, Coinsilium - General Partner, Open Ocean
15 Sept. 2017 · 11:19 a.m.
102 views
Panel Discussion: State of ICO Market – Cutting through the Hype, moderated by Daniel Haudenschild
Richard Kastelein, Daniel Zakrisson, Alexander Ivanov, Miko Matsumura, Resp: Co-founder, Cryptoassets Design Group - Co-founder, Cofound.it - CEO and founder, Waves Platform - Partner, Pantera Capital
15 Sept. 2017 · 11:54 a.m.
Fireside Chat: Investor Journey: from Bitcoin to VC. Moderated by Eric van der Kleij
Richard Moorhead, Olga Feldmeier, Charles Hoskinson, Resp: General Partner, Open Ocean - CEO, Smart Valor
15 Sept. 2017 · 1:42 p.m.
Pitch DomRaider
15 Sept. 2017 · 2:19 p.m.
Pitch Science
15 Sept. 2017 · 2:30 p.m.
Pitch Swapy / Credit Dreams
Edmilson Rodrigues, CEO
15 Sept. 2017 · 2:38 p.m.
Pitch Modex
15 Sept. 2017 · 2:45 p.m.
Pitch Etherisc
Stephan Karpischek
15 Sept. 2017 · 2:54 p.m.
Pitch RecordGram
15 Sept. 2017 · 3:02 p.m.
Pitch AION / NUCO
15 Sept. 2017 · 3:11 p.m.
Pitch BitBoost
15 Sept. 2017 · 4:14 p.m.
Pitch Sweetbridge
15 Sept. 2017 · 4:20 p.m.
Pitch Streamr
Henri Pihkala, CEO
15 Sept. 2017 · 4:29 p.m.
Pitch RightMesh
15 Sept. 2017 · 4:36 p.m.
Pitch Sun Exchange
15 Sept. 2017 · 4:44 p.m.
Pitch Papyrus
15 Sept. 2017 · 4:50 p.m.
PanelDiscussion ICO Best Practice, moderated by John Hacker
Nicolai Oster, Michael Terpin, Arie Y. Levy Cohen, Andreas Glarner, Resp: Head of ICO, Bitcoin Suisse - CEO, Transform Group - President, Blockhaus - Partner, MME Legal
15 Sept. 2017 · 5:03 p.m.
155 views
Investor Jury Announcement and Closing Remarks
Olga Feldmeier, CEO, SMART VALOR
15 Sept. 2017 · 5:50 p.m.

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