The Challenges of the Winter Market and the Path Ahead
A message from Andy Tian
Crypto Then and Now
As we head into November and the bear market persists, many are asking,“How will Gifto survive the winter”? Last year, when I was beginning to articulate Gifto as a concept, the market was in a completely different state than it is now, it’s almost night and day. At that time, you could do no wrong in the crypto world, every project had an idea that was being rewarded by institutional and retail investors. It was a brave new world where we were confident that the blockchain industry was going to disrupt everything from traditional financial institutions to tech giants like Google and Facebook. Fast forward to November 2018 and these traditional entities remain while many crypto projects with their awesome ideas and beautiful white papers are nowhere to be seen. Yet Gifto is still here, and our mission remains the same: to bring crypto to the general market and realize mass adoption.
I believe that Gifto has been more successful than any other token in bringing cryptocurrency to real users who know nothing about the blockchain industry. We’ve expanded our ecosystem through education and enabling fiat-to-GTO gateways in the Gifto wallet in Uplive. However, the path ahead is not easy, and many regulatory challenges remain.
A Path Forward
During Q4, Gifto’s focus will be on positively influencing the entire crypto ecosystem. If we want our token holders to do well, we need to use our influence to help build a better ecosystem, and that’s exactly what we’re doing, starting in Taiwan. We have announced a strategic partnership with the Asia Blockchain Accelerator (ABA), one of the world’s few accelerators backed by a local government. It leverages Gifto’s experience as a project backed by a huge corporation like AIG to help incubate crypto projects with real users and real economic value. Ideally, this helps create new use-cases for the entire industry, and accrue new Gifto holders by bringing cryptocurrency to the entire fiat world.The ABA is headed by a personal friend of mine, a former partner of KPMG Taiwan. But why are we focusing on Taiwan when it’s a small market?
When operating in the crypto world, you have to deal with myriad regional jurisdictions and regulations; we’ve seen this with our global Uplive offices. In the US things are highly regulated and few companies are willing to tackle blockchain and crypto projects. There are a huge number of projects in the Silicon Valley and New York, but most of them are either pure technology or only serve the crypto market. Despite lofty promises, very few US-based projects have emerged to challenge tech giants like Google and Facebook. Europe is behind the market as a whole, and Japan is heavily regulated. In China crypto is completely banned, and in Korea there is a lot of trade volume but projects are unable to issue tokens. Singapore possesses a great regulatory environment, but it’s a very small market with only 6 million people and no tech industry.
This brings us to Taiwan, a market with only 24 million people, but an economy that punches far above its weight. Taiwan has a very strong technology background. TSMC is still one of the world’s largest semiconductor companies, and HTC is one of the world’s biggest mobile phone manufacturers. Taiwan has 2 of the top 5 storage manufacturers in the world, and Foxconn is the world’s largest white-label electronic manufacturers, meaning if you own an iphone it was likely made by a Taiwanese company. Even the Google Pixel was designed in Taiwan, along with much of Google Chrome’s OS. Taiwan is the only large jurisdiction in the Asia-Pacific region that has open regulations for any company seeking to issue a utility token. This means that companies with real transactions and large user bases are able to issue a token. With that in mind we want to be able to move the entire crypto industry from just speculation to implementation, starting with the right jurisdiction in Taiwan. We want to use our experience to help the local Taiwanese industry, which will in turn help Gifto. This is not a random partnership where people sign a paper and nothing happens. As opposed to signing more partnerships, Gifto’s focus now will be on partnership implementation.
The first project that the ABA is incubating is the Poseidon Network, with Gifto acting as an advisor. Poseidon is like Filecoin, but already implemented and operational. Filecoin raised 257 million dollars last year, but has yet to deliver. Poseidon is the first decentralized storage content delivery network in the world that is actually in use. As of November 2018, they are serving over 400 TB/month off only 100 nodes around the world. The biggest cloud storage network is Amazon Web Services, and Poseidon Network is delivering at 5 times the speed of Amazon at half or lower the price. That is not a testnet, but a commercial net that is already serving content as we speak, and they haven’t even issued a token yet. This is what the blockchain world needs, companies that deliver real services that generate economic value and then issue a token. Fundamentally economic value needs to be created in the industry to create sustainable market value. The crypto industry has only generated the appreciation of token value to the sole benefit of traders and crypto funds. This issue plagues the crypto industry as a whole.
In January Poseidon Network plans to have 1000 TB of actual service delivered, with two tokens being used to pay for services: the Poseidon token and Gifto. Users will be able to download an app that allows any unused space on your phone to form a global content delivery network for other content providers and be paid passively for using the app. The best part is, users can be paid in tokens. This is not a new idea, many projects have talked about this, but only the projects in Taiwan have the open legal environment to fully implement it. Gifto is looking to support tokens who are focused on real implementation in the crypto space, while expanding our own use-cases and helping the industry. That is the only way we will survive this Winter, and welcome the Spring.