Ethereum (ETH) Long-term Price Analysis

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Ethereum (ETH) Long-term Price Analysis

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ETHUSD Long-term Trend – Ranging

Distribution territories: $300, $400, $500.

Accumulation territories: $150, $100, $50.

Over the past few days, Ethereum’s price has been maintaining a price range around the $200 territory, without having a lot of volatility to it.

Ethereum, ETHUSD, Cryptocompare chartEthereum Chart by TradingView

The crypto’s traders weren’t able to push its price over said territory over the past week which as result has seen its price trade along the 14-day SMA. The 50-day SMA is currently above the 14-day SMA, and there’s only a small space between then.

The Stochastic Oscillators are moving in a consolidation mode around range 40. This means traders shouldn’t enter positions on ETH at least for a while. The $200 territory seems to be a major point that needs to be broken is the cypto’s price is to head south. If it’s broken, ETH’s price may hit a $100 low.

A strong price reversal over the $200 line could see the cryptocurrency move to the next distribution territory at $300, or even above it.

The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

Online Gaming Platforms May Be the Next “Killer App” For Blockchain Technology

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Darryn Pollock, a Forbes contributor who writes mainly about finance and economics, recently pointed out the similarities between the evolving blockchain industry and the “global phenomenon” that online gaming has become.

Pollock noted that the gaming sector is similar to the nascent distributed ledger technology (DLT) industry as they’re both “run by people who are technologically inclined, and predominantly younger.”

Gaming Platforms’ Popularity Is Increasing

Pollock, who writes extensively on the regulation and adoption of blockchain and cryptocurrency, mentioned that mainstream consumers do not fully understand many of the concepts related to the world’s gaming economy. This, despite the rising popularity of ESports – which involves organized, multiplayer online video game competitions.

Similarly, many of the important concepts related to blockchain-based networks and cryptographic assets are hard for many less tech savvy people to understand. Given that DLT-powered systems and gaming platforms share many similarities, Pollock argues that online games could be “blockchain’s killer app.”

Gaming Is “Far More Receptive Space” Than Crypto

According to Pollock, the gaming industry has “the right people” and “environment” to handle a “disruptive technological upgrade.” Compared to the crypto space, gamers are “far more receptive … to technological change”, Pollock wrote.

Commenting on the potential application of DLT to the development of more sophisticated online gaming networks, Andrew Colosimo, the founder at Xaya, a UK-based blockchain platform for gamers, said:

I think gaming definitely has the potential for being a catalyst for bringing more of the masses to blockchain. Gamers, particular PC gamers are normally somewhat technical and typically enthusiasts who like new technology, and blockchain does need that bit of expertise at the moment. From our point of view – we know there is going to be a market for blockchain gaming but it needs to be approached carefully.

However, Colosimo acknowledged that “it’s still early days” for blockchain, and that even though large investments are being made to develop DLT-powered games, “there [are] actually very little gamers playing.”

Improving “User Experience”

He revealed that the most popular blockchain-based games only have “10s of daily active users” as it’s more of a “niche” at present. Current challenges such as poor “user experience” and overly complex nature of blockchain-based gaming platforms must be addressed before mass adoption can be achieved, Colosimo noted.

He described the current blockchain-powered games as “slow” and criticized them for not having a well-developed theme. Also, games that are actually fast and engaging may not be using DLT for most parts, or features, of their platforms. They might just be using “blockchain as a buzzword only”, Colosimo said.

As CryptoGlobe recently covered, a blockchain-powered virtual reality (VR) game called Chainbreakers is currently being developed on the Ethereum-based Decentraland platform. The role-playing game is centered around events that took place in Ancient Greece.

Fact Check: Notorious BitConnect Promoter Did Not Call Bitcoin A “Scam”

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A Twitter account some associated with notorious BitConnect promotor Carlos Matos has recently claimed that bitcoin, the flagship cryptocurrency, is a “scam.” The tweet was initially controversial but soon after Mashable revealed it came from a “parody account,” and not from Matos himself.

The tweet reads: “Bitcoin is a scam. Sell everything. It’s NEVER going back up.” What made the tweet seem surprising or ironic is that Matos himself is now infamous for promoting what’s considered to be one of, if not the largest, scams orchestrated in the crypto space.

Although the tweet might not have come from Matos, it served as a reminder that the controversial motivational speaker was “launched into meme infamy” in October 2017. This, soon after a video of Matos became viral in which he was praising BitConnect and trying to hype up an audience.

As most crypto enthusiasts would know, BitConnect was heavily promoted as a crypto lending and exchange service. However, the platform was forced to shut down in January of this year after it received cease and desist letters from regulators in the United States. After it shut down, many unsuspecting investors discovered that it was nothing more than an elaborate scam.

Notably, Matos’ motivational speech was delivered in 2016 to a crowd in Thailand – which is well before cryptocurrency prices skyrocketed in late 2017. The price of BitConnect’s BCC token hit an all-time high of around $437 before crashing to $0.67 according to CryptoCompare data.

An Internet Meme

After becoming a popular internet joke, which saw Matos’ emotional procolomations of “I love BitConnect” turned into many different remixed videos, the New York resident has now been ridiculed by many talk show hosts.

In March of 2018, John Oliver, an English comedian and writer said jokingly during his “Last Week Tonight” show that “the last time he saw someone that irrationally exuberant [as Matos] about a major commitment, he was roughly seven years away from divorcing Katie Holmes” – an acclaimed American actress whose 6-year marriage to Tom Cruise received great attention from media.

While many people now find humor in what Matos and other seemingly passionate BitConnect promoters did to lure unsuspecting investors, the serious nature of their allegedly criminal actions should serve as a warning to those looking to “get rich quick.” Doing proper research and evaluating the legitimacy of a project before making an investment is the best course of action for long-term financial stability.

EOS Long-term Price Analysis

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EOS Long-term Price Analysis

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EOSUSD Long-term Trend – Ranging

Distribution territories: $8, $13, $18.

Accumulation territories: $4, $3, $2.

EOS is one of the cryptoasset that has seen its price move within a range for quite a while. The cryptoasset’s ranging movements have neither been favoring the bulls nor the bears.

EOS, EOSUSD, Cryptocompare chartEOS Chart by TradingView

The $6 and $4 price territories are still seen as the crypto’s range boundaries.  Currently, the market has very slowly aligning itself with the two SMAs. The Stochastic Oscillators have moved northward to seemingly start a set of consolidating movements around range 60.

EOS still appears to need to be pushed southwards, towards the accumulation territory of $4, before it can have a chance of entering a bullish trend. A reversal against the $6 territory could lead to a s bull trap in the short-term.

The views and opinions expressed here do not reflect that of CryptoGlobe.com and do not constitute financial advice. Always do your own research.

American Law Firm Publishes Detailed Summary of Developing Crypto Regulations in Europe, US

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American Law Firm Publishes Detailed Summary of Developing Crypto Regulations in Europe, US

A recent blog post on Lexology noted the rapidly evolving crypto and blockchain ecosystem in “multiple jurisdictions” has resulted in the emergence of various different regulatory frameworks for digital assets.

While most of these guidelines have not been finalized as governments throughout the world struggle to keep up with the fast pace of innovative financial technology, the author of the blog, Morgan Lewis & Blockius LLP, noted that emerging crypto regulations “warrant continual review and monitoring.”

Not A Good Store Of Value Due To “Low Liquidity” 

Morgan Lewis & Blockius, a global law firm that employs over 200 attorneys in 30 different offices in North America, wrote that the international Financial Stability Board (FSB) said earlier this month that crypto assets may not yet be a “material risk” to the traditional financial markets.

As covered, the FSB also noted that the global cryptocurrency market and industry was evolving rapidly and that regulators must closely monitor its developments. The FSB, which makes recommendations about the global financial system, cited “low liquidity” and the “use of leverage” in crypto trading as factors currently preventing digital currencies from becoming a stable store of value.

Authorities in the European Union (EU), UK, and the US have all had a different approach to regulating crypto assets. Additionally, most lawmakers around the world have mainly focused on the criminal or fraudulent activities that have been carried out with cryptocurrencies.

Use Of DLT In Illicit Activities

In early October, the European Parliament approved a non-legislative resolution regarding distributed ledger technology (DLT), and asked the European Commission to work on drafting legal guidelines that would help prevent the use of DLT in carrying out illicit activities.

The European Parliament acknowledged the potential benefits of blockchain technology, specifically in its ability to reduce costs associated with financial transactions while also allowing for greater transparency. However, the parliament also cautioned against the risks associated with trading DLT-based crypto assets.

Despite these concerns, the parliament has called on the European Commission to look into the possibility of adopting cryptocurrencies as a legitimate payment method.

Establishing Blockchain Observatory Group

In February of 2018, the commission had recommended the formation of a Blockchain Observatory group to explore various use cases for DLT, and had suggested that proper “licensing requirements” and “regulatory sandboxes” be developed in order to provide more regulatory oversight over the crypto industry.

Both the European Commission and Parliament agree there needs to be stricter enforcement of anti-money laundering (AML) rules. They also recommend that the EU’s Fifth Money Laundering Directive – which requires preventive measures against fraudulent activities – should be extended to cover cryptocurrencies.

On October 19, the European Securities and Markets Authority (ESMA) released a report in which it asked for more clarity regarding whether crypto assets are “commodities” or “transferable securities.” As an emerging asset class, investors are unsure, or still remain fairly undecided, regarding how exactly to classify cryptos.

Crypto Assets Are Not “Funds Or E-Money”

Earlier in September, the UK Parliament’s Treasury Select Committee had recommended that the UK Financial Conduct Authority (FCA) extend its regulatory oversight to include cryptocurrencies and initial coin offerings (ICOs).

As explained by Morgan Lewis & Blockius, the FCA “has clarified that crypto-assets are in themselves neither specified investments under the Regulated Activities Order nor funds or e-money under the Payments Services Directive and E-money Regulation.”

However, crypto derivatives such as those provided on BitMEX may be classified as proper “financial instruments.”

In the US, the regulatory approach to crypto assets varies from one state to another. The US Securities and Exchange Commission (SEC), which is a federal level regulator, considers certain cryptos to be securities. These mainly include crypto tokens launched through ICOs.

Consumer Protection, “Increased Governmental Involvement”

Recently, a US district court supported the Commodity Futures Trading Commission’s (CFTC) recommendation that certain crypto assets are commodities, and must therefore be regulated as such.

US state attorneys are also examining crypto assets more carefully, “particularly from the standpoint of consumer protection”, Morgan Lewis & Blockius wrote. Meanwhile, the US Congress has increasingly started to address, and look more closely into how cryptos should be regulated.

According to Morgan Lewis & Blockius, there now appears to be “increased governmental involvement in crypto-asset activities … [as they may be concerned about] … the potential financial stability risks presented by crypto-assets.”

Microsoft Excel Plugin to Allow Users to Make Bitcoin Payments via Lightning Network

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Microsoft Excel Plugin to Allow Users to Make Bitcoin Payments via Lightning Network

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Pierre Rochard, an independent Bitcoin (BTC) advisor for institutional investors, took to Twitter recently and claimed to have developed a Microsoft Excel plugin that enables users to make BTC payments from the spreadsheet program.

Software Supports Lightning Network

Rochard, who has experience working as a senior accountant and software engineer, said he had created a program called Neutrino – which is reportedly a software solution built on top of the Lightning Network (LN) protocol (a second layer payment solution aimed to make bitcoin and other crypto transactions faster and cheaper). 

As explained by Rochard, Neutrino lets users make payments using the LN while not requiring them to operate a full-node. According to the software developer, “users can make and receive LN payments with a few clicks” in Excel.

Notably, there are many different implementations of the Lightning Network protocol and the project Rochard referred to is called Lightning Network Daemon (LND) – which has so far released beta version 0.5.

Early Stages Of Development

As CryptoGlobe reported in August, Shitcoin.com CEO Andreas Brekken had said that his experience with using the LN revealed that it had many glitches and was “impractical even for highly technical users.” He criticized the LN software’s very high rate of transaction failure and said its codebase was filled with numerous bugs.

However, if and when the LN technology evolves and matures, then it could potentially solve bitcoin’s scalability problem – which has resulted in very slow transaction processing times and extended time periods during which BTC payments had very high transaction fees.

While Rochard seemed optimistic about Neutrino’s ongoing development, he did make it clear to his followers that currently the LN and his software program are still in their early stages of development.

Only For “Power Users”

Rochard also noted that the LN-enabled Excel extension was “not for everyone.” He explained that the program had been developed mainly for “power users”, meaning that it was designed specifically for highly experienced Excel users.

Soon after Rochard tweeted about Neutrino, his followers began asking him for more information about his program. The New York resident and founder of Bitcoin Advisory, a consulting firm for institutional clients looking to invest in digital assets, pointed out that almost all finance professionals use Microsoft’s Excel program to do their accounting work.

This is the reason why he felt it was important to have a LN-enabled solution for Excel as its users regularly send many payments. When questioned about Neutrino’s official release date, the software engineer said the program’s public release should be expected at the end of this month

Crypto Africa Roundup: Binance Uganda Goes Live, Ahwecash Debuts in Nambia

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In our Crypto Africa Roundup, YouHash take a look at some recent developments in this fast-growing crypto continent

 

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With a zero trading fees incentive for the first month, Binance Uganda went live this week, allowing Ugandans for the first time to be able to access crypto using local currency.

Leaning on the experience and scale of Binance, one of the world’s leading crypto exchanges and with technology being used by more than 30 exchanges glob­ally, Binance Uganda accepts deposits in Ugandan Shillings, Bitcoin, and Ether, and offers BTC/UGX and ETH/UGX trading pairs.

With the world’s 90th largest GDP at $26.39-billion (source: Wikipedia 2017 stats) and a high interest in cryptocurrencies consistent with many other countries in Africa, Binance Uganda can look forward to brisk trade.

Blockchain Technology Employed to Manage Water Regulation in South Africa

 

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The severe drought which brought one of the world’s premier tourist destinations, Cape Town, to its knees, served as a reminder to the world about the extent of the growing water crisis affecting cities around the world.

Rapid urbanization along with an inability to harness rainwater (without it running into the sea) are some of the underlying reasons for the drought being declared a national disaster in the Southern Cape. Hashcash Consultants, with representation in the USA, Australia, Singapore, and India, are working with local regulators to record the rainwater footprint on a decentralized, immutable ledger that can be access by all for verification and reference. The platform will take a net-positive approach to track water usage by manufacturing units, housing complexes, and agricultural lands. A computing base with unlimited storage to prevent system crashes will be used in conjunction with blockchain technology.

In addition, the team is focusing on promoting water resilience and is part of the advisory council of new dam building projects.

Awehcash Debuts as Namibia’s Maiden Cryptocurrency

 

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In a country where the central bank (Bank of Namibia) is openly critical of blockchain and distributed ledger technologies, an enterprising group have launched the first blockchain token, Awehcash, allowing Namibians a safe and painless entry into the world of blockchain.

According to BitcoinAfrica.io, Awehcash makes use of the Waves Platform to ensure the project is run on an affordable yet capable system. In total, just 21-million tokens were created on the platform and to date close on 50,000 have been distributed wallets.

Whilst the founders are marketing to Namibians, participation is not restricted and interested parties can find more information at Awehcash or follow the project on Twitter.

Getting to Know Africa’s Blockchain Movers and Shakers

 

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Ran Neuner

Ran Neu-Ner was voted in 2018 as one of the 100 most influential people in crypto by Crypto Weekly and rated as #9 of the ‘Most Influential People in Blockchain’ by Richtopia. A  serial entrepreneur, Neu-Ner has won numerous prestigious awards in South African including Business Leader of the Year (separately by CNBC Africa and National Business Awards), Entrepreneur of the Year (Sanlam), Entrepreneur of the Year (Ernst & Young), and many others.

More recently as founder and CEO of Onchain Capital, a crypto investment and advisory business, Neu-Ner has become involved as advisor on 15 boards in the last few months, including Fantom, Essentia, Aov.global, Coti, Metadium, Insureum, and Chromaway. Prior to becoming involved in crypto, Neu-Ner was founder and CEO of the Creative Counsel, one of SA’s largest advertising agencies, which was subsequently acquired by Publicis in a deal valuing it at over $100-million.

 

Bitcoin’s Volatility Index Falls to Its Lowest Point Since December of 2016

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Bitcoin, the flagship cryptocurrency, has been trading within a tight range over the past few days, so much so that its volatility index is now at a low it hadn’t seen since December of 2016, before last year’s bull market that saw it hit an all-time high near $20,000.

According to CryptoCompare data, bitcoin is currently trading at $6,460 after only falling 0.07% in the last 24-hour period. Since October 17, the cryptocurrency has been trading between the $6,650 and the $6,400 mark, with the range tightening to $6450 – $6,500 in the last three days.

Bitcoin has been in a tight range, and its volatility keeps declining

The tight trading range has also been accompanied by declining trading volumes that have seen leading cryptocurrency exchanges like Binance, OKEx and Huobi trade less than $1 billion per day – a figure they easily used to surpass.

According to bitvol.info, bitcoin’s 30-day volatility index is now at a 1.42% low, its lowest since December of 2016, when it hit 1.36%. Last year’s bull run saw it reach a high of nearly 8%, but BTC’s price decline has seemingly been seeing its volatility disappear as well.

Currently, the 60-day volatility index is at 2.06%, while the 252-day index is at 3.56%. The index calculates the cryptocurrency’s volatility using the standard deviation of its opening price over the specific time period.

The cryptocurrency’s low volatility could mean it’s maturing and starting to be seen as a store of value. As covered, BTC was barely affected by this week’s market sell-off, that saw the Dow Jones Industrial Average drop about 3%. As Brian Kelly, the CEO and founder of BKCM stated, cryptos seem to be “mostly separated” from the broader markets. He said:

I don’t know of anyone saying ‘Microsoft dropped, I better sell bitcoin to cover my margin’

Rob Sluymer of Fundstrat Global Advisors has recently argued there may be a “silver lining” to the cryptocurrency’s plummeting volatility, as we may be looking at a potential upside trend reversal – although Sluymer admits it’s “premature” to conclude it’s coming.

Willy Woo, a prominent market analyst, has recently argued that currently bitcoin is still in a bear market as its NVT Ratio, which puts BTC’s market cap against the volume transferred through its network, shows it. Nevertheless, he argued it’s still a good time to enter the market, as the price is “sitting comfortably under the 200 day moving average.”

Cryptocurrencies Living Next To Fiat, ‘I Think That Could Work’ Says Bank of Canada Official

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Cryptocurrencies Living Next To Fiat, ‘I Think That Could Work’ Says Bank of Canada Official

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Explaining the always growing interest in cryptoassets and currencies, Senior Deputy Governor of the Bank of Canada (BoC) Carolyn Wilkins proposed that “people are feeling like they got a raw deal, by public and private institutions,” during her refreshingly open-minded presentation on distributed ledger technologies (DLT), which she prefaced by quoting from a crypto-themed cover of Drake’s “Started From the Bottom.”

The scope of Wilkins’ talk revolved around how DLT affects, and could in future affect, the BoC’s ability to discharge its duties as a socially-minded lender of last resort and developer of monetary policy. She proposed the possibility of a central bank-issued asset.

The ‘Ironies’ of Crypto

Many of Wilkins’ key points revolved around what she sees as ironies “abounding” in the cryptoasset industry. She proposed that bitcoin mining is “actually very concentrated” due to the domination of a few mining pools; that “blockchain only shifts the need for trust” rather than getting rid of it, adding that “programmers themselves have a lot of power – but they may not actually have the responsibility that goes with it.”

In addition, she highlighted what must be the very institutional view that lack of a money-creating faculty harms cryptocurrencies, grazing the very complex academic subject regarding the relationship between money supply and inflation, which is not at all straightforward.

A trilemma was recognized, in that three critical conditions of DLT technologies, at least at present (within Wilkins’ scope of understanding), cannot be simultaneously satisfied. Namely, a DLT or blockchain cannot always be a) decentralized, b) efficient, and c) have correct ledger entries.

CanadaCoin?

The BoC has, according to Wilkins, been experimenting with Jasper, a “toy interbank payments system,” testing blockchain implementations for interbank payments, post-trade settlements of cash and securities, and cross-border payments.

The Bank tested these systems both using Ethereum and R3’s Corda – which CryptoGlobe recently reported on – the findings, at least for the Bank’s usage, were not revolutionary.

With respect to integrating blockchain into the BoC’s payments systems for an efficiency bump, Wilkins stated that “by design of these already centralized systems that need to go through the books of the bank, there’s always going to be a part that needs to be centralized.”

Notwithstanding all of Wilkins’ concerns, she remained excited about what the future holds for DLTs, commenting that the prospect of a Central Bank-issued cryptoasset is “one of the biggest questions from the social point of view […] that we’ve faced in a while, because it has implications for financial inclusion, privacy, access to a safe asset, and at the same time there are some major commercial interests at stake.” The jury is still out on whether or not the BoC could be interested in issuing its own token in the future.

Commenting on the prospect of central banking being replaced by DLTs and cryptoassets, Wilkins said “there’s not [currently] a real reason to worry from a financial stability point of view – but this stuff is moving pretty fast.”

Interview: Perlin Project Manager Dorjee Sun on Bringing One Billion People to the Crypto Economy

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Interview: Perlin Project Manager Dorjee Sun on Bringing One Billion People to the Crypto Economy

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During this year’s Consensus: Singapore 2018 conference, CryptoGlobe caught up with Dorjee Sun, project manager at Perlin, “the first practical, trustless and decentralized cloud computing marketplace,” that’s set to help up to one billion people around the globe have access to the crypto economy.

According to Sun, Perlin is set to help people earn up to $170 per year by simply using their mobile phones to power the supercomputer and make it globally accessible. During the interview he detailed how the organization is planning to reach its goals.

Among the details, Sun revealed Perlin is in talks with major organizations throughout the world, and that the cryptoasset’s blockchain is currently able to power “about 10,000 transactions per second.”

Perlin, according to its founder’s words, is set to offer cheap cloud computing services to clients, which could see it compete with e-commerce giant Amazon and its Amazon Web Services (AWS) offering. Below is the full interview, edited for clarity, consistency, and style.

Introducing the Project

Dorjee Sun: So we finished up our private sale, and our ledger. It’s the first Avalanche consensus mechanism inspired by Avalanche, but it’s now being changed in about 17-18 ways. That’s a big deal, because there are traditionally two fields of how to do these consensus mechanisms. And this is a new field that was put forward by the Cornell professor, Emin Gün Sirer.

If you look at the data, probably in two weeks/ by the end of this month, we’ll have the finalized numbers. So we’re about 10,000 transactions per second, which is still pretty fast.

CG: But the website says 1,600.

Dojee Sun: Yes, but we’ve really improved the performance. That’s a big milestone that we’ve finished the visualizations of. We’re just really confirming the speeds, and the test should be done in about a month – it actually is mostly finished, but just, you know, fine cleaning, stabilizing, tightening it up.

Just to take a step back, our vision is that we will bring a billion plus people from lower per capita GDP to earn money by putting their phones and laptops into our distributed cloud, and then earning money.

Your compute power on this phone could actually be rented out when you’re sleeping at night to do machine learning – AI computations – that would be taking money from say Amazon Web Services or Google Cloud. The idea behind this is, if you think about the bottom billion, they’re on $1 a day. That phone would probably generate about $170 per year, if you were renting out the compute power for eight hours a night.

On top of that they would have web connectivity, they would have education they would have access to remittances through our token Perlin’s PERLs, [which] could be used as a store of value or transfer of value. That’s really our vision. We are the first technically appropriate use case we see that can create earning. Earning, we think, is the killer app, because what do these one billion people need? They need money.

These are previously free distributed computing platforms where I can donate my computer at night, holding it at home, to solve cancer proteins, or [help] NASA Search for Extraterrestrial Intelligence. That’s the vision. Coming back to the milestones, we’ve received funding from 200 strategic and institutional investors – Bitmain, FBG, a whole bunch of them. Also, big chat apps like a Kakao.

Perlin’s Expansion

CG: So you would integrate with existing apps?

Dorjee Sun: Correct. We looked at the full mobile stack and laptops, and we thought ‘okay, so we’re meeting with HTC today, will we be able to sign? Who knows.’ Besides, they only have X number of devices. Then there’s browsers, there’s games, there’s chat apps, etc. All of them will have their pros and cons.

We’re still trying to find access points. Another access point is we’ve signed an MOU [Memorandum of Understanding] with the Prime Minister’s Office of India, and we’re in negotiations with telecoms, Bharti Aitel and Geo Telecom.

We are hopefully signing this week with Telkomsel which has 180 million users in Indonesia. That’s the state-based telecom. I was with the Minister for Bangladesh, ITC, last week, and also with the Myanmar Minister. We’re [also] in negotiations with the new telecom providers in Nepal and Turkey. Right now, our coverage is about 2 billion people – in India, Indonesia, Bangladesh, Nepal, Turkey, Myanmar, Singapore,

CG: Do you have plans to focus on China?

Dorjee Sun: We definitely have a lot of support there, we think it’s a hot market to penetrate. Fundamentally, every blockchain company has to look at customer acquisition. I don’t know if you’ve ever looked at app adoption, but you what’s the cost of acquiring a user? Do they stay on? Do they leave? What’s the virality coefficient? Did they tell other people, what’s the lifetime value of that client?

We’ve done mathematics or where we think is the more accessible market, [and] China’s just a tough one. We are talking to companies, but we haven’t actually inked anything yet

CG: From a client perspective: let’s say I’m looking to perform some cloud computing, what kind of savings do you expect?

Dorjee Sun: We can do 50%-80% cheaper. Right now, you’ve got Jeff Bezos: he has to set up a server farm, buy all of the computers, network them together and have stuff operated. That’s how he creates AWS [Amazon Web Services].

Whereas we go to the poorest people who have devices and it’s up to them. It’s like the equivalent of Airbnb or Uber, Uber X. We believe that the economic incentives that we can provide would mean that the marginal costs of bringing on people in the developing world is very low. So we believe we can offer 50 to 80% cheaper

CG: With the same efficiency, speed, and reliability?

Dorjee Sun: Right now we’re testing use cases. If I’m a high-frequency trader that’s running,  very time conscious, sensitive computations, I probably wouldn’t be using necessarily what we’re doing., We’ve got 15 partnerships confidentially, which we haven’t published yet. For example, I met with big infrastructure companies: Exxon Mobil, Shell, guys like that.

They have huge computational requirements for predictive maintenance. Every hour their refinery is sending data, and their cycles are like one week to two weeks [apart]. Something like that is a no brainer. Plus they get to redirect the money to the local population, instead of sending the money to a multinational, trillion-dollar, billionaire-owned, Seattle-based company. So it’s a CSR activity

CG: How flexible do you image DApps (decentralized applications) on Perlin being? Do you build anything you want, or are there limitations?

Dorjee Sun: We have a 10-year roadmap, and it’s always about being in the right place at the right time. We’re quite patient in terms of when we think the supply and demand are going to mature. We are very confident because the demand for AI compute is doubling every 3.5 months, according to the CTO of Open AI.

CG: So I’ve taken a look at the whitepaper, has Avalanche been tested and peer-reviewed?

Dorjee Sun: I believe it was peer-reviewed, but you’d have to check with professor Gün Sirer. It was announced in such a spontaneous fashion that maybe it wasn’t, I’m not 100% sure whether it was peer-reviewed. But actually, our ledger is not 100% Avalanche. It is inspired by Avalanche. We’re currently undergoing the security audits and the reviews.

CG: OK. So how do you see the economics of PERLs playing out, with users generating a specific amount of PERLs and an incentive to liquidate to a local currency? From an investor’s perspective, do you see growth in value of these tokens?

Dorjee Sun: Absolutely. With all of these fixed supply tokens, the question is really like: will the demand for those tokens outstrip the supply? The way we look at it is, the addressable market for the cloud space is $300 to $500 billion by 2021, 2022 and 2023. So let’s just say we’re able to get 1% to go decentralized. That would equate to $3 billion to $5 billion in demand. You could achieve a price per tokens that’s of a few dollars.

If you think about Bangladeshi workers in Singapore, they currently pay Western Union 15% for remittance. Actually, I think PERL tokens could end up being a store of value, or at least a transfer of value. If that’s the case, we think that the token velocity will be much lower than Bitcoin, which is currently being high-frequency traded. Let’s just say the token velocity is one or two, then you still going to have a token price of a roughly $1.5 to $3, something like that.

CG: From a security perspective, is all data encrypted?

Dorjee Sun: Yep. There’s been a few academic papers, I’ll get my CTO to send them to you. It’s on the latest cryptography. Last year, there were a few papers in crypto in Asia that we based our privacy on, so in some ways think that it’s safer than centralized cloud services which have been compromised by government agencies.

CG: So you can execute smart contracts, you can create DApps, it should be more scalable and faster than Ethereum – do you see the ICO market moving towards Perlin?

Dorjee Sun: It’s a really interesting question. To be honest, we have not been actively promoting that, but it’s a really good idea. I think that what most of the readers for CryptoGlobe would be understanding of is the wealth accumulation opportunity.

One of our pilots: if you think about me being a farmer in Indonesia and taking 10% of my income in PERLs, and let’s just say PERLs appreciate significantly because of network usage, and then I decide to invest in other ICOs, suddenly a farmer has the ability to effectively participate in a growing asset class, which is the greatest form of social mobility, that currently is just not an offer for them.

If you’re a farming Indonesia you have two choices, either plant something or cut down something and sell There’s no ability to invest into Facebook shares or other forms of wealth accumulation. So the short answer is we have not actively pursued ICOs it’s just because I think that regulation is going to change things.

When you raise it, I think it would be very powerful as a proposition if developing countries could also participate in wealth accumulation. Obviously, they’re not very sophisticated so you need to make sure they don’t get scammed. I mean just imaged that: ICOs for the billion. That’s pretty cool.

Wealth Accumulation Opportunities

CG: I think the key point, which I didn’t really appreciate from checking out the website is the fact that you’re essentially allowing something like universal basic income.

Dorjee Sun: But just think about where we see it. And this is also like, when Uber or Instagram nails the iPhone as being the device, which would then save their photos/GPS, location-based apps into stratospheric use cases. we’re predicting ubiquity of web, you know renewable energy, ubiquity of energy, and then cell phones.

The greatest incentive, I think, for people who are poor is: children, health, education, you know, betterment. We did a call with the head of Telenor in Bangladesh today. What if you could provide them with free tele health services, right? So they’ve got health, some income access, then what about education? What if they could get educational components?

It’s really “how do you create that type of platform” as opposed to just: “we have this side chain, blah, blah, blah interoperable, yada, yada, yada,” which, you know, really could use adoption. But if I can say to everyone, hey, earn $170 a year and get a free phone, and all you have to do is plug it in every night. I think that that’s a really rapid adoption.

CG: As for the mainnet launch, do you have an estimated launch day?

Dorjee Sun: February of next year is what we say externally, but we hope to hit testing in January. What we’ve inked with most of our partners is a 12-month adoption. The idea of actually have devices earnings in 12 months, that’s our goal.

CG: So you aim to be embedded in the devices? You wouldn’t download an app?

Dorjee Sun: We’re trying to do devices, we’re looking at browsers, we’re looking at apps. My line in Indonesia has 40 million users. We talked to them about trying a pilot – we just looked at any access point, but obviously the easiest is direct download.

CG: So for people looking to invest, do you when the public sale is?

Dorjee Sun: Most likely it’s reliant on the market. We’re not strapped for cash. We are really just omniscient of, I think, right now it’s such a negative environment, and that’s why we haven’t announced a lot of our successes. It’s kind of like shouting off a cliff, like throwing eggs against a brick wall.

We think that unless there’s some stabilizing, mild upward trajectory towards the end of the year, for a public sale we’re probably thinking two months but we’re not in a hurry to rush it out because all our investors understand that it’s a long hold.

CG: Final question: Can you summarize where you hope to see Perlin in 10 years?

Dorjee Sun: In 10 years time, Charlie, mark my words: I’ll be 51 and we’ll have one billion plus people generating some income and hopefully utilizing that tool to provide education and opportunity. Low cost remittances, store value transfers across the most underprivileged nations. Effectively also hopefully providing the younger market with devices as well so a billion users into this ecosystem. It’s gonna happen.