Finanzplatz Hamburg’s interview with coinIX’s CEO, Moritz Schildt
Moritz schildt, the CEO of coinIX, had a presentation at the annual general meeting of the Finanzplatz Hamburg about the evolution of crypto-assets. The presentation garnered significant interest by the members of the Finanzplatz and an interview has been done with Moritz afterwards by Axel Hoops and Nils Himmelreich.
Finanzplatz Hamburg : When will crypto assets and blockchain technology achieve a similar level of ubiquity as the internet?
Moritz Schildt: Without a doubt, or quite the opposite: Blockchain technology will significantly augment the capabilities of the internet. It’s not a competition or substitute for the internet; rather, blockchain grants the internet an additional functionality, vastly expanding its potential applications.
During the inception of the internet, in the era of Web 1.0, users could merely access information, such as viewing images or videos. The advent of Web 2.0 ushered in platforms, allowing users to store information and initiate transactions. This period saw booking platforms and social media networks catalyze a substantial surge in internet usage. Blockchain serves as the technical bedrock for Web 3.0, an internet where we not only trigger transactions but also execute and fulfill them.
While today, purchasing from an online store or acquiring a security can be initiated online, we still rely on intermediaries such as payment service providers or banks for execution — be it for payment or security transfer. However, with blockchain enabling the digital transfer of trust and tangible value propositions, myriad new possibilities emerge. Web 3.0 will act as an accelerant for digitization, particularly within the financial sector, potentially causing disruptions akin to those seen in Web 2.0’s impact on travel agencies and bookstores. The rapid adoption of crypto assets and the ever-increasing number of newly opened wallets suggest that blockchain’s dissemination may outpace the growth of internet users seen in the past.
FPH: What transformations can we anticipate in the next decade with crypto assets?
MS: Currently, the term “crypto assets” is often synonymous with Bitcoin and other cryptocurrencies. However, it encompasses any form of digital assets registered or associated with a decentralized database. In the coming months, we’ll witness a surge in use cases where electronic securities transition from paper to digital format, allowing for instantaneous transfers without counterparty risk. Additionally, derivatives and loans will find their footing on digital platforms, facilitated by “Smart Contracts” that ensure immediate collateral liquidation if margin requirements aren’t met. Expect to see loans with fractional valuations lasting mere seconds and insurance policies that autonomously identify and compensate for insured events.
Beyond finance, we’ll witness a myriad of changes. I firmly believe that documents traditionally authenticated with signatures, seals, or stamps — such as certificates and deeds — will undergo digital verification, alongside blockchain-based identification processes. The blockchain-powered internet serves as an ideal technological scaffold for ensuring the integrity of health records, authenticating artwork, and validating the datasets used to train artificial intelligence systems.
Recently, we tokenized shares of a fund, eliminating the need for physical certificates and enabling direct crediting to investors’ wallets. With the technology readily available and operational, and its benefits crystal clear, widespread adoption is the next frontier.
FPH: In your view, which risks are overemphasized in the crypto debate, and what security measures are already in place? You mentioned the adoption in France and the contrasting skepticism in Germany. The comparison with the Dotcom bubble seems particularly fitting to dispel some misconceptions. Please provide us with a regulatory forecast and evaluate what is currently functioning well and what isn’t.
MS: I see the primary obstacles as being apprehensions about a novel technology, followed by concerns about perceived regulatory gaps, and finally, the historically high volatility.
The concept of transitioning from traditional bank-held capital investments and securities to digital assets stored online represents a significant paradigm shift for many users of traditional financial structures. Many participants in the traditional capital market still regard crypto assets as inherently risky and view Bitcoin as a tool for money laundering due to a lack of understanding of the underlying technology and its logic. Similar reservations arose during the introduction of automobiles and the transition from fax machines to email. A younger generation, already accustomed to filing tax returns on their phones, will help us grasp the benefits of this new technology and utilize it in a manner that mitigates risks.
For those worried about inadequate regulation, there’s reason for reassurance, at least in Germany and Europe. The forthcoming EU Regulation on Markets in Crypto Assets (MiCaR), scheduled to take effect by the end of 2024, establishes an EU-wide framework for the issuance of crypto assets and related services, largely aligned with existing rules for securities. It entails numerous licensing and information requirements that significantly address concerns about regulatory deficiencies, particularly for European providers.
Regarding concerns about Bitcoin’s high volatility, this isn’t directly attributable to its digital format. While Bitcoin’s value has surged more over the past decade than any other form of investment, it’s characterized by significant fluctuations rather than a steady trajectory — manifesting in its high volatility. Notably, the crypto asset class demonstrates a low correlation with traditional capital markets, thereby enhancing the risk-return profile of a conventional portfolio through a modest allocation of crypto assets. We generally advocate for a minor allocation of 2 to 5%, provided there’s a tolerance for risk, and advocate for a diversified portfolio comprising various crypto assets.
FPH: Assuming an interest in crypto products, where can one find reliable information and what are sensible initial steps?
MS: Online platforms, forums, and social media are valuable sources for basic information about crypto assets. Additionally, delving into books, videos, and podcasts can offer deeper insights. However, it’s crucial to be cautious of dubious providers promising unrealistic gains, as they often lure unsuspecting investors.
For those contemplating a substantial investment in a portfolio of crypto assets, a solid understanding of the technology is essential. Conducting thorough research independently or seeking guidance from reputable professionals like coinIX is advisable.
Regardless of one’s investment plans, I recommend starting small by setting up a personal wallet, purchasing a few coins, and experimenting with transferring assets within trusted circles. This hands-on experience provides a tangible understanding of the swift and seamless nature of crypto transactions, akin to sending a WhatsApp message.
In Hamburg, the Hanseatic Blockchain Institute has been instrumental in educating individuals about blockchain and crypto since 2019. Looking ahead to 2024, we’re collaborating with the Finanzplatz Hamburg e.V. to organize a workshop titled “My First Wallet,” aimed at demystifying digital assets for beginners. Interested parties can reach out to us at team@blockchaininstitute.eu.
About coinIX Capital GmbH:
Since 2017, coinIX Capital GmbH, headquartered in Hamburg, has been at the forefront of analyzing blockchain projects and cryptocurrencies, facilitating investments in this dynamic sector. Comprising specialists with extensive experience in asset management, venture capital, and cutting-edge technology analysis, the coinIX team manages a portfolio boasting over 20 investments in blockchain startups alongside crypto assets. Shares of coinIX GmbH & Co. KGaA are listed on the free market of the Düsseldorf Stock Exchange and are also traded on the Berlin and Munich stock exchanges. Further information about coinIX GmbH & Co. KGaA can be found at www.coinix.capital. Additionally, coinIX Capital GmbH is entrusted with managing coinIX COINVEST SCI1, overseeing its liquid crypto assets.
About coinIX COINVEST SCI1:
Launched in June 2022, coinIX COINVEST SCI1 is an open domestic special AIF under the KAGB. As a sub-portfolio of coinIX COINVEST Investment Stock Corporation with variable capital, its assets are managed by coinIX Capital GmbH, acting as a registered capital management company. Available for subscription by professional or semi-professional investors, the fund has the flexibility to invest up to 100% of its capital in crypto assets, aiming for a diversified portfolio of digital assets actively managed through ongoing selection processes. Additional income streams are generated through staking and other blockchain-native mechanisms. With the ISIN DE000A408Q55, subscriptions to the fund are only available directly through the investment company, with private investor acquisition prohibited. More information can be found at https://coinvest.coinix.capital/sci1.
