What’s next for the retail crypto investor? A Fireside chat with Bill Barhydt, CEO of Abra part 3 Crypto Invest Summit Los Angeles



Bill Barhydt
Founder & CEO at Abra
https://www.abra.com

Scott Walker
Managing Partner at Wavemaker Genesis & DNA
https://www.wmgenesis.com/team/
Kind: captionsLanguage: en
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my hand up right therewhy what's your it's the same spar
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contract that she's been holding allalong and so the keys to the Bitcoin if
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she's using u.s. dollars in her walletsimply say if the price of Bitcoin goes
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down like it did in january/februaryshe's receiving more Bitcoin to make her
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position hold back $200 and that's themagic of you know whatever was created
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it's extremely complex in terms of themechanics behind the scenes but I can
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assure you that the price was falling inJanuary in February we didn't lose a
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penny and that's ethically the mostimportant message that I can give you
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because if you felt like you were takingmassive counterparty risk by storing
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those funds in ávila I wouldn't actuallygave the call it a dollar I'd have to
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call it some fancy derivative contractposition
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to call it a dollar even though it's asynthetic dollar because I know that I'm
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going to be able to make technology yeahgood question the question makes me will
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adapt to how would our support icotokens and enable the quiddity for
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people who've got we get this requestevery day for people who are you know
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investing early and I cos want to movemoney in and out using our smart
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contracts won't work for most of theisotope in simply because they're not
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liquid enough for our systemso the way we're dealing with this is
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and I don't have any announcementscomplain we're going to launch this but
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we will launch it as we are going to addnative either support to the app and and
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so today either is actually the epicpoints of our contracts ironically so
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when we go native with ether will alsosupport ERC's when he took it so you can
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move the actual primary token saleproceeds directly into the ever app if
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that coin becomes liquid you can use ourexchange function in the app and if it's
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not you can simply use it to store thatERC 20 token until it becomes liquid
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it's the best we can do because we can'ttake the risk of you know having smart
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contracts against billions of dollarsthat'd be a disaster so hopefully that
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make sense and then we'll try to get toit the next six months is our plan but
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no no guarantees
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yeah so you can just hold Bitcoin asopposed to feel right so Bitcoin is one
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of the supported asset classes so so theuse case that is growing by leaps and
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bounds in our services people willspeculate on crypto like Bitcoin or
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ether the put Bitcoin in the app and ifthey think the price is falling they'll
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quickly move it to a fiat positiondollars or Euros usually and effectively
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it's a free head we make a little bit ofmoney on the spread versus the spot
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price but relative to buying like futurecontracts and a bit next or something
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it's very expensive so then when theythink the price is going back up they
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simply cancel the the dollar position bymoving it back to the and the Apple just
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looks like you're exchanging betweendollars and Bitcoin but what you're
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actually doing is creating a beginningsmart contracts and which effectively
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gives you that free hedge that you'reasking about
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heis investments in you so mucherotically itself questions my question
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is you can have a smart contract rightand desperate for transparency but if
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the counterparty doesn't havesufficiently good contract that's my
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contract may not be so smart after allso is there any counterparties is it
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transparent great question and that isthe right question ask so so today the
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way Apple works is a breeze of hunt isthe counterparty to 100% miss contract
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so going back to the gold example youknow where Scott was shorting the gold
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average taking the long position ofthose contracts we won't enter into a
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contract with a consumer unless we canliterally make them whole a hundred
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percent catastrophic risk you knowagainst market falling so that's why I
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said in January February when the pricesfell 50 60 % of all audience Kryptos
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operated lose a penny because we had toweigh our kind of party risk in real
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time so the next step around auditing istoday we act as the Oracle which is not
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the right way to do this at scale soit's a 2 of 2 model today where average
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the Oracle as well we're migrating thisto be a 2/3 multi-sig model where the
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Oracle will be an offshore entityprobably in Switzerland and that will be
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a nonprofit organization that APRA setsup which will be open source and
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auditable but more importantly otherthat want to use a smart contract Oracle
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will be able to contract this company wetry to find a business model for an
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Oracle function networks and honestly wesimply couldn't find one so we killed
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two birds with one stone one we made ita non profit and to actually kill three
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birds one stone- we're moving it offshore so that you
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can't pollute across government's tosteal people's money and three it will
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be auditable in a way that doesn'taffect avarice internal confidential
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information so for that is definitelythe right question of the actioning and
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any of you who are involved in any kindof smart contract based applications
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email anything about the stuff shedemanded like the tethered type stuff
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you know we should be demanding if I'mgetting this right when when we're
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making an investment in a new projecthow are we how are we doing that
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good question and I would tell you thatevery every entrepreneur does it
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differently we've seen groups that willthey will set their token against
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aetherium they will set their tokenagainst Bitcoin if Bitcoin goes up they
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raise more if it goes down they raiseless most projects when raising will
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usually set a u.s. dollar amountpick a number you know 20 million
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dollars and then they'll work to raisethat 20 million again everyone's
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different will will typically invest inthe manner that works for the project
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that we're you know that we're investingin whether it's USD beef it going
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ether whatever okay cool so you're stillsinging joining the needle surprised to
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know y'all normally yeah definitely wehave a question up front
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Jonah's been patiently yeah crackerexercising these thank you
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you're doing wonderful classificationsthere
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yeah it's it's country-specificso in the US it is a straight commodity
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trade so above a certain threshold youhave capital gains reporting
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requirements and the app allows you toexport your transaction history in order
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to fulfill the equivalent of whatever1099 so you have to do but every country
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is different right this is prettysimilar to how contracts or difference
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work in the UK and those aren't taxablebecause they're considered Catalan zones
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so every country is different but
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wow those one's ever asked me thatthat's amazing
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I can't believe no one and I actuallynever thought of that
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I don't know I don't see why theywouldn't yeah I think so there's look
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Amex has done amazing it in so far thatthey are a fortune 100 US bank and
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they've invested in a crypto pony andthen publicly we need to talk about
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there's a lot of things that work onthat I can't talk about for the future
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but but that's pretty simple what youjust said people are interested in that
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yeah should be an email let me know thatyou're all interested in all of
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prioritising accordingly we actually doa lot of design sprints using the Google
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model where we actually go out and talkto hundreds of consumers before we want
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to be feature just to validate thatpeople like you tend not to once up on
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women but we're convinced that that willdrive you know the right kind of dog
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ideal for it it's pretty cool again whowants to pay their credit card using
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using the emma-crats alright it's astart