Link to the AMA Live https://youtu.be/r46RT4l1UnU
In the previous week, we asked the community members to submit questions they would like us to answer during the AMA. We want to say thank you as you’ve sent us quality questions regarding our new direction in the De-Fi market, its relation to the token swap and masternodes, as well as questions related to partnerships and future road map.
Thank you for your continued support.
On that note, the AMA provides a good opportunity for anyone who would like to get a better idea as to where EdenChain is heading in 2020.
So share the link to your friends and anyone who is interested in Crypto ETF, and wants to hear directly from the CEO himself about the direction.
The following are some of the highlights from the AMA.
The new direction: MoA portfolio management and passive investment solution.
1. Tentative launching date for MoA crypto index funds: Q2
2. Initial form of the passive solution: MoA Crypto Index fund be operated by EdenChain. After collecting enough data that prove the performance of our model, other forms of passive investing solutions
3. Exciting ideas for partnerships once we successfully run the MoA proprietary funds for 6 months to 1 year.
a. Annualized returns like the traditional banks
b. Switch the index fund to ETF, and making EDN as the only form of payment to buy the ETFs. EDN usability will be skyrocketed.
c. Partnering with other companies that offer crypto indices.
Token Swap and MoA’s future
Defi is the rising star in the blockchain industry, and integrating with existing ethereum de-fi protocol will play a big part in expanding the business, especially after our model proves its performance. There’s a definite business advantages from staying in ERC-20 tokens for that regards.
We will release a comment on this very soon.
Token Swap and Masternodes
The two do not have technical or logistical dependency. The best timing for doing either or both of them is when it is most advantageous for the company and the investors. The rules for masternodes will be updated to be aligned with the new model for EdenChain revenue streams to ensure the proper revenue shares for the node holders.
No immediate plan for new exchange listings as our focus is developing the best model for the MoA passive portfolio management solution.
Other than that, we also covered topics on marketing plan, community appreciation, exchanges, roadmaps and James’ personal insights on the blockchain market as a whole in the next 1 to 5 years.
Click the video link to find more details on each topic. All topics are time tagged so that you can easily jump to the topics that interest you the most!
Also, we will be having another AMA with GAINS community soon. Stay tuned!
(Some wordings may vary, however, the contents remain consistent with what was discussed in the video)
Good morning community. Thanks for tuning in for EdenChain’s 5th AMA.
[Esther] First of all, thanks for submitting your questions. We are going to do our best to cover all the topics you guys have submitted over the last week. The way this AMA is going to run is that I am going to ask James questions and he will answer. After that, we will take a few questions from the community.
At the end of the question and answer session, we will have a short announcement, so please stay tuned!
We received more than 60 questions. As we have only a limited time, we are not going to read every question. Instead, we categorized them into topics. The first stop is ETF’s.
[Esther] James, in the early Q1, we announced to the community our new direction as to pursuing the DeFi market. The community is interested in knowing some detailed plans regarding the direction. Can you tell the community about the tentative launching date, its scalability, and comment on a potential plan to diversify types of DeFi services?
[James] We are aiming to launch our DeFi service sometime in Q2. Our solution is designed to expand to include other asset classes, such as physical assets like stocks and bonds. However, we will only handle crypto assets in the initial phase, as no licensing is needed for us, EdenChain, to run funds when assets are limited to crypto assets. The service will start as an index fund. That means participation opportunities can be limited in the beginning. We believe that the performance of our model would first need to be proven by its data before going completely public. Once the performance is proven, then we can then start offering ETF, which is simply an index fund modified for easy buy and sell. All these are in line with our goal of making our passive investing solution the best of its kind. Therefore, we currently do not have any plan to diversify the types of DeFi services we’d provide, as we’d rather focus and specialize.
[Esther] Thank you. Can you tell the community about joining forces with the traditional banks?
[James] Crypto assets are now getting more awareness from traditional finance. Nevertheless, these assets as a class haven’t been fully recognized by the legacy finance. The timing is premature for crypto derivative service to forge a meaningful partnership with the traditional banking system when the basic assets are yet fully recognized.
However, we do have exciting ideas for partnerships once we successfully run the MoA proprietary funds for 6 months to 1 year.
[Esther] Speaking of new ideas for DeFi partnerships, that will be a great segway to the next topic: EdenChain partnerships. Could you keep the community updated with the existing ones before we share the new ideas?
[James] We do keep good relationships with our partners, however, many of them are experiencing hurdles in terms of blockchain adoption as the technology is still in its nascent period. Also, regulations and infrastructures are still in want to facilitate easy onboarding by enterprises. The same goes for the gaming industries. At the moment, there are no critical reasons for gamers to switch from their current platform to blockchain ones. The clear and big market demand for DeFi is one of the reasons we decided to pursue this direction.
[Esther] How about the Busan initiative?
[James] We are making a conscious effort. There are movements, and we will share the news when it’s ready.
[Esther] Alright, James, now that we have spoken on the existing partnerships, with the then can you share the new and exciting ideas about partnerships with respect to the DeFi direction?
[James] Let me first give examples as to what we can do once we collect enough data to prove the performance of MoA proprietary fund.
First, we can run the MoA like traditional banks by offering a fixed annual return. We can set the interest rate based on the data we collect.
Second, we can turn the index-fund into an ETF, making it easy to buy and sell. We can then limit EDN as the only form of payment we receive when buying our ETF. This way, we can expand the number of DeFi companies onboarding with our token, as well as the increase of the EDN usability.
Third, as the DeFi market expands, there will be other companies offering their version of indices and funds. We can partner with them by having their ETF listed on MoA or vice versa. This way, we can expand our partnerships among the DeFi markets.
[Esther] That is great. Thank you. In terms of collaborating with other companies, a community member brought up a very insightful question regarding DeFi protocols. I think James can answer the question and switch the topic to the token swap. The question is as follows: “When it comes to DeFi, most protocols are Ethereum based. Will you continue with the token swap from ERC-20 to native token even as EdenChain is pursuing the DeFi market? There is an obvious advantage of staying it as ERC-20 for the easier adaptation by other services. If you migrate to the native coin, what is your plan for integration with existing DeFi protocols?”
[James] First of all, thanks for asking such a sharp question. It is a really good question. Frankly speaking, I have been considering good timing for the token swap because of integration with existing DeFi protocols for future expansion of MoA. The token swap schedule was made 18 months ago. At that time, market conditions and sentiment were pretty much different compared to the current situation. We eagerly anticipated real use cases of blockchain and furthermore the government’s warm gesture towards blockchain as well as crypto assets. But as we all know, There was no big change in the blockchain industry including games, which was supposed to be a killer dApp, except DeFi.
DeFi is a rising star, we can verify it through various statistical information. DeFi is getting bigger and bigger. That trend will remain for a long period of time. DeFi is an outcome of integration among DeFi protocols. As more DeFi protocols emerge, market size, as well as business opportunities, are bigger because the famous network effect will work. Given that situation, my worry is that the Token swap is going to challenge EDN integration with existing DeFi protocols because DeFi protocols are based on Ethereum. EDN could not be integrated into existing DeFi protocols directly after the token swap. This is not good for the future of MoA. Once the new DeFi service proves its value, the next step is to expand its business by integrating with existing DeFi protocols. I have been talking to exchanges for a token swap, and I found no major issues there. When I consider two options:
- Do the token swap
- Delay token swap
It is clear to me which option is beneficial to Eden’s future.
Anyway, this is an important issue to be addressed, I will share my thinking on the token swap soon.
[Esther] I see. In other words, our main source of revenue will be from DeFi and its easy adoption by other services. To me, that indicates that the masternodes and token swaps can happen independently of each other. Is that correct?
[James] Yes, absolutely. Many platforms scheduled token swaps and staking programs one next to the other, however, that is not required. There is no technical or logistical dependency between them. The best timing for both of them is when it is most advantageous for the company and the investors. As such, if staying in ERC-20 is more advantageous and creates more traction for business, then we can start the Masternode Program first, then do the token swap at a later point.
[Esther] As the model for the main source of revenue is updated, will the rules of the Masternodes Program be updated?
[James] Yes, we want to make sure that the node holders earn revenue. We will be updating the rules so that it will be in line with the current business direction.
[Esther] Let’s wrap up the topic of masternodes with a marketing push, as market traction is a hot topic for running an effective Masternode Program. Many communities are interested in when we’d do a strong push to increase traction.
[James] We are not opposed to doing paid marketing. However, we believe that timing matters a lot. We are going to plan one in line with the product development schedule. For now, we are going to focus on creating the best product. On that note, we want to say that we much appreciate the community’s support during this time. We plan to show our appreciation to those dedicated community members by creating a thank you page inside of the MoA App. Please note that your opinions do not go unnoticed. We are listening to your voice to create the best product on the market. We are monitoring great ideas from the communities, including marketing ideas to product features. Your opinion did shape the design and planning of our new service.
[Esther] Okay great. With respect to the new direction, what is going to become of Dorothy?
[James] As we mentioned before, we are going to focus all our resources in one service, that is our MoA portfolio solution. In that vein, we plan to adjust the content to fit the need for DeFi users.
[Esther] Thank you for the clarification. Let’s move on to exchanges. Any new plan for listing?
[James] Unlike earlier sentiment in the market where more listings equate to greater success of the project, things have changed a lot since then. At this point, we do not plan to list at more exchanges. Instead, we will be focusing our resources on getting the best DeFi index model that will increase revenue for EDN holders and node participants.
[Esther] Thank you James. You mentioned the market change. Can you share with the community the road map for EdenChain and your personal insight on the crypto market and its projection in the next 1 to 5 years?
[James] As for the company’s roadmap, the DeFi market has shown a huge great rate. The market is also very big (in the billions). We will do our best so please continue to support our project. In terms of the market projection, here are my insights:
A strong market driver for mass blockchain adoption will be IoT. IoT environments need blockchain technology for sure because of public exposure of its device and automated services. In IoT an environment, the IoT device is accessible to anyone, so that means the possibility of being hacked is higher than the legacy environment. With legacy technology, preventing such hacking is possible but it costs too much time and money whereas blockchain technology can solve the problem. It was born for that. In an IoT environment, the transaction will be automated, we are not supposed to do manual transaction processing as we do now. Automatic processing requires complex and secure transactions among service providers. For the system to work, we should be able to trust the processed data as it guarantees no manipulation. Blockchain technology can achieve this with grace.
The legacy environment works well so far as every system is designed and developed to be aligned with it. As such, we have no serious problems living in these environments. This is the big reason why I think the IoT environment will be a savior of blockchain technology. IoT is a new environment, hence it needs new technology. But I am not saying that blockchain technology is not valuable until IoT comes. What I am telling you is that the major adaption needs a new environment. Even so, we will definitely begin to see diverse areas introducing blockchain technology into their fabrics.
For DeFi, I have a very positive view regarding its future as DeFi was born out of the natural desire shared among crypto-asset holders. Crypto asset holders want to invest, manage and utilize crypto assets. DeFi enables just that. Therefore, as long as the crypto-asset exist, DeFi will last. Ultimately, I think that the DeFi will show a maturation pattern similar to that of the traditional finance market as the pattern follows overall preference expressed by asset investors. As I mentioned earlier, investors of any asset share fundamental desires, and they are to invest, manage, and utilize their assets. Case in point, we witnessed a huge growth in lending & borrowing since last year. When benchmarking the pattern legacy finance world, the next big wave will be portfolio management by the system rather than a people.
[Esther] Thank you so much. There was a question regarding nodal security in terms of running the fund. We want to tell you that due to the way index fund is run, node participation is not required. As such, security is not an issue. Also, index funds and ETFs are not something listed to exchanges the way a stock gets listed. They are derivative services, as such, there won’t be IPO, ICO, or IEO.
Now let’s take a few questions with the remaining time.
Question 1. Did you say that you will add more security features to MoA?
[James] Yes, with the upcoming updates to MoA, everything will be encrypted, and we try to minimize the possibility of be hacked. Later on, our CTO, Jacki, is going to release a technical paper and you can read in detail how we secure our transactions and so on. When you read this I’m sure you will feel confident in its security.
[Esther] The next question: Is EdenChain shelving the idea of being a private chain for enterprises?
[James] Before 2020, our focus was to introduce as many enterprises as possible. As I spoke before, many enterprises are experiencing hurdles due to regulation and government issues. So we decided to narrow down our focus to enterprises in DeFi. So once the company decided to utilize crypto-assets, we will be the perfect partner to provide such kind of features. So we are not shelving the idea. Rather, we are now being “selective and focused”.
[Esther] Will there be other kinds of funds?
[James] Yes, actually index fund and ETF are managed funds. However, it will be managed passively, meaning that there will be an index and the funds will follow the index.
[Esther] Will you increase the number of the team member once the ETF is up and running?
[James] Yes, this is an obvious question. Once the ETFs are running and there is a need for more team members, then we will hire more. In traditional finance sentiment, the period to prove the performance of financial service is at least 6 months. So we may see reliable data may be in Q4. If the proprietary fund’s performance is good, then we will actively hire new people, and try to expand the business partnerships, as well as users.
[Esther] Is it technically possible to create an ETF that can be traded with leverage and rebalanced daily?
[James] Yes, that is possible as our managed fund will follow the trading model I create. However, too many rebalancing and leveraging can actually hurt your portfolio so there needs a good balance in terms of the number of rebalancing and its time.
[Esther] Is there an option to keep two different tokens? ERC-20 and native tokens?
[James] That is possible. However, the resource to manage two tokens will be significantly high. We need one server for ERC-20 and another server for the native token. We would spend more money to maintain the servers and more people to manage the servers.
[Esther] That would also negatively impact the running of our Masternodes Program as the company revenue is directly related to the nodal revenues.
[James] That is true, and there is also the issue of security as those two would be completely independent of each other. Also, we would need to develop some sort of glue for those two systems.
[Esther] Who do you think is your strongest competitor as your goal is to become the number one in the DeFi industry?
[James] That is an interesting question. This is a very broad question to answer because DeFi has a lot of segments in market-account management, banking, lending and borrowing, trading, custody service, portfolio management, and so on. My perspective is to become number one in portfolio management. In my knowledge, there are only a few competitors in this segment. If you force me to pick, the strongest competitor would be Greyscale. They have been managing bitcoin trust since 2018, and their performance is quite good and shows an impressive revenue stream.
[Esther] Thank you guys for the questions you submitted. We are going to release this video on YouTube so you can always watch again in case you missed some part of it. Now moving on to the announcement, we are soon going to have a joint AMA with Gains community. I believe this also answers one of the questions regarding doing an AMA outside of our main EDEN channel. At the end of the AMA with Gains, we will announce an event, where the winners will receive a physical reward created specifically for the event in very limited quantity. In case you haven’t visited, we have a blog section on our new MoA page, moa.network, and we recently introduced our new character, Nugget. The new prize is designed with Nugget in it.
Thank you guys for tuning to our AMA. We know that the timing probably was not the most ideal for many of you as we are a global community. Thank you for all the questions you submitted, thank you for answering all those questions, James.
[James] My pleasure.
[Esther] Hopefully, we can see you guys again sometime soon?
[James] Perhaps when we have a good performance result from the MoA proprietary fund and to celebrate together!
[James] That’d be great! Thank you guys and bye.