<font color="#000000">a big reason why I came is to meet</font> <font color="#000000">every one of you so really looking</font> <font color="#000000">forward to having that opportunity</font> <font color="#000000">over the next two days a quick</font> <font color="#000000">background on me, I founded one of</font> <font color="#000000">the first Bitcoin exchanges in the US</font> <font color="#000000">which is called Coinsetter and we were</font> <font color="#000000">based in New York City I rebuilt really</font> <font color="#000000">the world's first low-latency</font> <font color="#000000">institutional Bitcoin exchange</font> <font color="#000000">through the process of running my company</font> <font color="#000000">we acquired the largest Bitcoin exchange in</font> <font color="#000000">Canada and we sold both of them to Kraken</font> <font color="#000000">about a year and a half ago and</font> <font color="#000000">Kraken is still one of the largest</font> <font color="#000000">Bitcoin exchanges today and as you all get</font> <font color="#000000">into the space it's a name</font> <font color="#000000">that you'll definitely come across I'd like to start</font> <font color="#000000">off by talking about the roles that</font> <font color="#000000">exchanges play in the whole crypto ecosystem because crypto</font> <font color="#000000">and decentralized cryptocurrencies are</font> <font color="#000000">decentralized but in order to get into</font> <font color="#000000">the ecosystem</font> <font color="#000000">from the start, generally speaking you have to go</font> <font color="#000000">through a bank or an exchange</font> <font color="#000000">and there is this point where you have to</font> <font color="#000000">actually purchase cryptocurrency and that's the</font> <font color="#000000">role that exchanges fundamentally play</font> <font color="#000000">so when when you're looking at exchanges</font> <font color="#000000">one kind of idea that is very</font> <font color="#000000">very closely related as the one that traders</font> <font color="#000000">play in exchanges and traders are</font> <font color="#000000">people who I would say for their own benefit</font> <font color="#000000">and to the market in order to make a</font> <font color="#000000">profit but they play a much more</font> <font color="#000000">important role because anyone else</font> <font color="#000000">who is looking to buy or sell</font> <font color="#000000">cryptocurrency these are the people who</font> <font color="#000000">are generally making liquidity which allows</font> <font color="#000000">you to buy cryptocurrency at a good</font> <font color="#000000">price so when you're looking at</font> <font color="#000000">different exchanges that you might</font> <font color="#000000">trade on one thing you really want to take a</font> <font color="#000000">look at is you know can you place a big</font> <font color="#000000">order and can you place that a good price</font> <font color="#000000">and even if you're not placing a big</font> <font color="#000000">order I think the answer to that will tell</font> <font color="#000000">you if you're trading at the right place</font> <font color="#000000">now there are several exchanges across</font> <font color="#000000">the world probably over a hundred at this point and all of them are very</font> <font color="#000000">different so some of them have</font> <font color="#000000">specialized in you know in Bitcoin,</font> <font color="#000000">in Ethereum a lot of the basic</font> <font color="#000000">cryptocurrencies and there's a reason</font> <font color="#000000">for that they're the largest</font> <font color="#000000">and there are other changes that have been</font> <font color="#000000">emerging really over the course of this</font> <font color="#000000">year that are more focused on all these</font> <font color="#000000">tokens which are what's created out of</font> <font color="#000000">the ICO and a lot of exchanges are</font> <font color="#000000">coming up, coming into play all over the</font> <font color="#000000">world in order to service that market so</font> <font color="#000000">when people begin trading in the</font> <font color="#000000">cryptocurrency ecosystem you know you</font> <font color="#000000">may enter through one of these very</font> <font color="#000000">large exchanges when they all add to</font> <font color="#000000">that is that they're usually focused on</font> <font color="#000000">specific countries specific target</font> <font color="#000000">markets</font> <font color="#000000">because ultimately you know if you are</font> <font color="#000000">interning in USD you know you might go</font> <font color="#000000">to an exchange that offers that you know</font> <font color="#000000">payment options in USD but you know if</font> <font color="#000000">you are trying to enter in any other</font> <font color="#000000">currency you may go to your local market</font> <font color="#000000">and that I think that's really one of</font> <font color="#000000">the core focuses of HybridBlock is you know really</font> <font color="#000000">focusing on a lot of these</font> <font color="#000000">other markets really wanting people to come in to the ecosystem with local payment options and so forth now</font> <font color="#000000">I'll also add many markets lack local</font> <font color="#000000">exchanges so this is I believe</font> <font color="#000000">probably the next opportunity in the exchange</font> <font color="#000000">market in my personal opinion you know</font> <font color="#000000">trying to compete at the USD trading</font> <font color="#000000">market is like over saturated not not</font> <font color="#000000">really an industry that you would want</font> <font color="#000000">to get into as an exchange operator and so I love</font> <font color="#000000">seeing companies that are focused on</font> <font color="#000000">getting into a lot of these more</font> <font color="#000000">localized markets with a</font> <font color="#000000">Bitcoin and cryptocurrencies to to the</font> <font color="#000000">local people in those countries and</font> <font color="#000000">that's especially important in a lot of</font> <font color="#000000">those countries in particular</font> <font color="#000000">specifically developing nations where</font> <font color="#000000">the banking system usually is not</font> <font color="#000000">supportive much of the population and and</font> <font color="#000000">cryptocurrencies offer an alternative to</font> <font color="#000000">the entire banking system really so</font> <font color="#000000">there are you know kind of going into you know</font> <font color="#000000">the different kinds of exchanges there</font> <font color="#000000">are two fundamental types of exchanges</font> <font color="#000000">there's the first type of exchange which</font> <font color="#000000">is really more for consumers, offers easy</font> <font color="#000000">buy and sell functionality so you're</font> <font color="#000000">probably not going to get the best</font> <font color="#000000">price in those exchanges but it's going</font> <font color="#000000">to be the easiest</font> <font color="#000000">option you know if you're buying just even a small</font> <font color="#000000">amount of Bitcoin that's always going to</font> <font color="#000000">be the way to go but there really is a</font> <font color="#000000">much more institutional back-end to the</font> <font color="#000000">whole industry and this is where full order book exchanges</font> <font color="#000000">come into play and those exchanges,</font> <font color="#000000">market makers like to place, bid and ask</font> <font color="#000000">orders on to order book in order for you know</font> <font color="#000000">people who oftentimes come</font> <font color="#000000">from those basic exchanges buying</font> <font color="#000000">seeds to pull their liquidity and all of</font> <font color="#000000">this begins to create a localized</font> <font color="#000000">ecosystem in which people can find a</font> <font color="#000000">localized market price for cryptocurrencies</font> <font color="#000000">now I kind of have been speaking on a very</font> <font color="#000000">basic level on you know just what an</font> <font color="#000000">exchange does but one of the most</font> <font color="#000000">important issues that you, sometimes, won't hear people talk about is the whole, and importance of security over the course of</font> <font color="#000000">Bitcoin I entered personally in 2012</font> <font color="#000000">there have been many hacks, a lot</font> <font color="#000000">of money loss over the years and this</font> <font color="#000000">fundamentally comes down to the way that</font> <font color="#000000">the security works in their coin and</font> <font color="#000000">cryptocurrencies there are many options</font> <font color="#000000">that exchanges have in order to protect</font> <font color="#000000">your money if you're holding it on the</font> exchange <font color="#000000">I suggest learning how to actually use a</font> <font color="#000000">Bitcoin wallet so that you can take</font> <font color="#000000">control of your money but if you are</font> <font color="#000000">trading Bitcoin</font> <font color="#000000">or there are many other reasons why you</font> <font color="#000000">might trust a third party with your</font> <font color="#000000">coins it's really important to be</font> <font color="#000000">asking questions about what are their</font> <font color="#000000">security policies, how do they — this is</font> <font color="#000000">getting a little deeper, what are their cold storage</font> <font color="#000000">policies, how is there hot</font> <font color="#000000">wallet set up getting — this is much</font> <font color="#000000">deeper than probably many of you</font> <font color="#000000">understand but I really encourage you if</font> you're getting involved in <font color="#000000">cryptocurrency you know the second you</font> <font color="#000000">get involved you're really just starting</font> <font color="#000000">to explore the basics but you've gotta get</font> <font color="#000000">to security quickly because that's how you make sure that you can take hold of your money and you protect it So there — one thing</font> <font color="#000000">I've noticed is that there are no</font> <font color="#000000">great consumer solutions in</font> <font color="#000000">many developing nations I actually was in the</font> <font color="#000000">Philippines just a few days ago and it's</font> <font color="#000000">looking at markets like that that really</font> <font color="#000000">excite me as to the role that</font> <font color="#000000">cryptocurrencies can play because</font> <font color="#000000">you know talking — you're starting to talk about</font> <font color="#000000">population that's where there are many</font> <font color="#000000">unbanked people and to the extent that</font> <font color="#000000">they're not unbanked they're underbanked

That might be</font> <font color="#000000">90% of the Philippines now enter crypto</font> <font color="#000000">this is a new opportunity where people</font> <font color="#000000">can have a de-facto bank account people</font> <font color="#000000">can hold their money not in cash under</font> <font color="#000000">their mattress but instead in their cell</font> <font color="#000000">phone or their computer and to the</font> <font color="#000000">extent that more options for people to</font> <font color="#000000">buy cryptocurrencies and store</font> <font color="#000000">cryptocurrencies securely entering to these</font> <font color="#000000">markets becomes a very disruptive force</font> <font color="#000000">within the developing world</font> <font color="#000000">and that that's really what's always</font> <font color="#000000">gotten me the most excited about</font> <font color="#000000">digital currencies and on that note that's one</font> <font color="#000000">reason why you know I'm really</font> <font color="#000000">interested about what HybridBlock is doing</font> <font color="#000000">really focusing on those markets a lot</font> <font color="#000000">of them are in Asia in particular</font> <font color="#000000">and I think that there's such a huge need for</font> <font color="#000000">this kind of service especially in a lot of the countries in this area of the world</font> <font color="#000000">now you know one other you know Reeve Collins was</font> <font color="#000000">speaking earlier he created Tether which</font> <font color="#000000">when that came out I thought was one of the</font> <font color="#000000">most revolutionary ideas in the whole</font> <font color="#000000">crypto space at the time and one of the</font> <font color="#000000">one of the features that you know you probably</font> <font color="#000000">won't find written a lot about quite yet that</font> <font color="#000000">HybridBlock is working on is</font> <font color="#000000">very similar concept around taking fiat currency</font> <font color="#000000">and turning it, giving it the</font> <font color="#000000">features of cryptocurrency so you</font> <font color="#000000">can take for instance a</font> <font color="#000000">Philippine, Filipino peso, put it on the</font> <font color="#000000">blockchain and now the underbank can</font> <font color="#000000">transfer within themselves so you're</font> <font color="#000000">really creating an alternative to cash</font> <font color="#000000">and that has huge implications both</font> <font color="#000000">for the role that banks play in the</font> <font color="#000000">Philippines as well as how the the options that</font> <font color="#000000">and so you know I think to kind of end</font> <font color="#000000">off I — you guys are in a great part of</font> <font color="#000000">the world for what's happening in crypto</font> <font color="#000000">right now you know I think the</font> <font color="#000000">opportunities are much larger here so</font> <font color="#000000">I'm coming from the US which is a very</font> <font color="#000000">hyper over regulated market and it makes</font> <font color="#000000">it very difficult to operate in a</font> <font color="#000000">country where you know you have a lot of</font> <font color="#000000">liability in starting companies in the</font> <font color="#000000">space I believe that Asia just</font> <font color="#000000">given the size of the market given the</font> <font color="#000000">opportunity of what crypto can bring to</font> <font color="#000000">the population as well as I think the</font> <font color="#000000">even the regulatory environment broadly speaking</font> <font color="#000000">I know there are many countries in Asia</font> <font color="#000000">but broadly speaking you can create</font> <font color="#000000">companies in this region that are</font> <font color="#000000">successful and provide value to the</font> <font color="#000000">local populations I think you all are in</font> <font color="#000000">a great place to be exploring and</font> <font color="#000000">discovering what's happening in in this</font> <font color="#000000">market and I'm gonna leave off there</font> <font color="#000000">but I have been really excited to have</font> <font color="#000000">an opportunity to speak to every one of</font> <font color="#000000">you and again I would love to meet all</font> <font color="#000000">of you so please feel free over the next</font> <font color="#000000">two days to come up say hi ask me any</font> <font color="#000000">questions you have about anything crypto</font> <font color="#000000">related I'll actually be right back on the stage</font> <font color="#000000">on the panel in about two minutes thank you</font> [Applause] [Music]