Dec 21, 2022

Crypto contagion fears are lingering, with bitcoin miner Core Scientific being the latest company to file for bankruptcy in the wake of FTX's implosion.

Video transcript

Crypto contagion. Fears are lingering in the crypto industry in the markets with Bitcoin minor core scientific, the latest company to file for bankruptcy in the wake of ftxs implosion. Joining us now to talk to talk about the bear sentiment out there is Justin son, he's a Tron founder who will be global advisor and ambassador of Granada to the WTO. Justin. Always a pleasure having you on the show. So there's just a general unease out there also about the health of another crypto exchange, Binance and the exchange's dominance in the space right now. And there were reports last week that you withdrew a combined $50 million from the crypto exchange. But you also tweeted a link to Ether scan showing that you had deposited 100 million in the US TC back into the exchange. Can you clarify what happened? Yes, I have done business with finance since 2017. So since they first found it. Um so basically, I think from these two, I want to show the confidence for um finance exchange. I I think in the past, the finance has been through a lot of crisis. Uh including I remember in 2019, they have like a 7000 Bitcoin hack. At that time, I think I always want to be um played the role to help Binance to grow and to show the confidence to their business. So that's why uh we are seeing lots of fund and also, uh people uh is talking about uh withdrawal funds from Binance. Uh I actually uh deposit 100 million US DC into Binance to show uh our confidence. What did you, why did you decide to take money out as well? Oh, ok. Uh So basically to take money out, like happened earlier. So um because uh I just like uh swap um B US D uh with different Blockchain. So and then uh somebody see the address is actually withdraw around, I I think total of $50 million out of finance. So there's lots of the people uh talking about is finance uh have any problems or anything. So that's why also uh the deposit is kind of like a uh a clarification for um the withdrawal I I have done before, which is totally like uh normal business. So you mentioned there is a lot of out there fear uncertainty and doubt, especially last week, we saw with Binance billions of dollars leaving the exchange, there were concerns that some of the problems happening at FTX were also perhaps existing in finance in terms of maybe they were commingling funds between B US and uh finance international, maybe their B and B token uh which was their native, which is their native exchange token was being used in a way to make their value exponentially more than what it is. And uh concerns that BS C the Binance smart chain is being, is too centralized. Uh We, we're unsure how much CZ owns. Are those worries real or at all concerning to you as, as far as I know, um I think currently business uh current finance business uh is healthy and also um since we have done lots of business with them, uh I think it's all 1 to 1 I redeem uh and means bud all the time. Uh As far as I know, uh right now, all the business is not uh back to normal. And even though we have seen uh billions of them dollars withdrawal from Binance, I think last week. But I think right now for this week, um the money inflow and outflow um become I think back to normal. So that's why I believe the fact about Binance probably is be the the last uh negative news about crypto uh industry, hopefully in this year. And uh for next year, we can start to see the bull rally. Well, Mr Ambassador, where do you suppose uh Binance is getting that billion dollars that it's using to purchase Voyager Voyager's assets and why are they purchasing it? Um you know, uh obviously there's this belief that it might have been at a discount but nonetheless, uh, why are they expanding at a time when they're seeing all these outflows? Yes, sure, definitely. Uh, I think for the, uh, deal with the wager is, has been, uh, quite a long battle between Binance and the FTX. Um, so, um, before, um, the implosion of FTXI, I think, um FTX actually, uh, win the, so I, I think that finance has been on this Voyager acquisition, uh for quite a long time. So, so that's why uh after uh FTX exit from um this particular acquisition, I think seems finance to be the only choice here. Do you have an update on your algorithmic stable coin US DD? Last week, you tweeted that you were quote deploying more capital steady lads, which is uh obviously a nod to do when he was trying to save his own algorithmic stable coin UD, which ultimately didn't work out. Why are you scaring your customers like that? Um So I think this is more like a uh a meme, right? So it's like a crypto meme. So, so everybody is using steady um to, to show this kind of become like a um crypto community meme. So that's why I I tweeted this way. Um But also at the same time, I think US DD um price has been stable uh is about like 9 98 cents like all the time. So I think probably within this week after all the fund is gone. It's gonna be back to uh 1 to 1 pack. And also uh I, I think I'm happy to see uh market is start to learn about the difference between us DD. Um uh TRX and the US D Lunar uh comparison, right? So that's why uh we, we have seen the TRX um price is also outperformed even Bitcoin and the ECM uh this week. So uh we didn't see like any uh US DD have any impact on tr price anymore. Mhm uh True US D also is launching a TC and H which is a Tron based staple coin peg to the offshore Chinese yuan. Maybe you can explain how it works for us. Sure, for sure. So actually, you know, Chinese yuan has been a long uh dominant currency for crypto industry, I think 2000 and uh uh 13. So start from 2013 to 2000 and uh 17. Actually, the major uh cry um fear dominates the crypto market is Chinese yuan. After you know, 2017, the major exchange exit from Chinese yuan market. Uh We start to see what we have seen today. All the major stable coin in the market is dominated by us dollars. So that's why I believe this is a very good chance for us to collaborate with not only True SD but also tether to issue um QSD. Oh sorry, Tch and uh CNHT on Trump, I believe in the next year. Um probably we will see much um uh traffic and also attraction on Chinese yuan because lots of people, I I believe at least uh 2 billion people uh in Asia, um they are prefer Chinese yuan uh rather than us dollar. So, so that's why also uh we we we have seen like Chinese um Chinese government has opened up their border and uh um Chinese people life is back to normal. So I will, I believe we will see uh the Chinese yuan will have lots of attraction in the future. Uh It nonetheless, I mean, obviously you would potentially be competing with the, with the CBD C at some point. If you're doing a stable coin uh uh on stable coin, will you have um we will, will you have any pushback from the Chinese government? Are there any restrictions uh to this uh stable coin for either Chinese citizens or, or how much you can do, et cetera um to prevent it from uh potentially turning into a printing of juan? Because of course, uh you know, I do you have to, you know, are there any restrictions as in terms of making sure that they're exchanging actual one in the markets for ones that are uh for the staple coin or are you taking in dollars for instance and issuing the uh Ooo on? Yes, sure. So um right now the product we are issuing is offshore Chinese yuan. So it's 1 to 1 to uh Chinese yuan, of course. Um but in the offshore bank, so, so basically, uh um you will have just like same with us DT US DC. Uh you uh have 1 to 1 of the currency in the bank. Um But the difference is compared to the Chinese yuan, Chinese people use every day. This is offshore Chinese yuan uh in offshore banks. So that's why uh we don't have any limitation on how much you can purchase or how much you can redeem every day. So basically, this is like a limited uh usage. Uh And also, of course, we have seen uh lots of people in Asia, especially in Hong Kong um uh using uh Chinese yuan uh all the time. Um So that's why I believe this is also uh be a very good option for um traditional FX trading. Uh and, and also for even their daily usage. Uh And also at the same time, we have seen uh a big policy change happening in Hong Kong. So Chinese uh sorry Hong Kong government uh embrace crypto. Uh and and also recently launched ETF so that's why I believe uh in the future. Uh Chinese government actually is very uh open and uh about crypto. And uh uh I believe Hong Kong is the first experiment and they will continue to move and adopt crypto in the future. All right. Well, Justin, we see your tweet. Yeah, you, you mentioned that you could purchase license to BT C futures ETF in China legally starting today. If you understand, recently Hong Kong also launched its first two exchange traded funds for crypto futures and turning the city into a regional digital asset hub rivalling Singapore. Uh Do you see China and Hong Kong uh becoming the leaders again in the crypto industry? Yes, I I think definitely this is uh what I will predict what happen in the future. Uh Because before that, I think 2017, 2013, these two bull markets is dominated by uh actually Chinese buying power. Um 2021 is the first time you know, us become one of the dominant power for bull markets. Uh But I think I believe the next bull market will still be uh Chinese money. Uh actually um from these regulated Hong Kong ETF. Um many people don't know is actually you can purchase in mainland China. So because mainland China and Hong Kong uh has this kind of the channel. So basically you can use even onshore on Chinese yuan to purchase Hong Kong stock uh vis versa, right? So that's why uh I believe um this first ETF probably is the first step. And the second step, we will see uh more and more as and manage company start to launch product for crypto and the people from China, they can use money to buy uh those uh Hong Kong products from this kind of the special channel between uh Hong Kong and the mainland China. So that's why I believe this is the first experiment. It's just like Shenzhen uh experiment, right, when first Chinese government introducing the opening policies, uh they want to make sure uh this in a small special region. So people can do the experiment first before they uh promote uh across um the whole country. So that's why I believe Hong Kong is playing Shenzhen role right now to become the experiment region for crypto.

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