Follow-up feedback by Jimmy Hu, CEO of APEX Network
As recently announced via our telegram channel, I will be scheduling another interview together with Blockchain Brad within the next couple of weeks about:
- Enterprise pilots & adoption
- Development Progress
- Insights and feedback on recent updates and community feedback
In preparation for the interview we are collecting community questions
Before having the updated interview with Blockchain Brad, I’d like to address a couple of commonly asked questions:
1. Project Funds
Longevity and runway of the project is key to us (absolutely essential actually) — the project is being funded by initial token fundraising proceeds as well as revenues generated via blockchain tech & development solutions we’ve provided to enterprise clients (such revenue up to this date is upwards of $1M USD). And a misunderstanding has been that we’re allocating funds to be invested — this is incorrect. What we are actually doing is a portion of unused remainder funds have been liased by us to trading partners to generate 2–3% monthly returns instead of letting it sit there with no incremental upside. A combination of this and revenue from private chain solutions will insure the runway of the project.
2. Public vs. Private Chain
Our initial supposition and hypothesis in early 2018 has been that enterprise companies would be more open to directly try public chain tech for application development — it turns out that in reality that is not entirely the case in this stage of the blockchain tech market. They are actually much more willing to start with a private or alliance chain for initial use cases and then eventually transition to a hybrid-chain and port certain use cases to a public chain. We agree that this is not ideal from the perspective of a public blockchain project, but in the enterprise market to drive adoption it appears to be the most practical road ahead.
Hence development of private, alliance, and hybrid blockchain solutions is not actually useless or counter-productive to the public blockchain. On the contrary, in this particular case as well as many other case it is necessary to foster the fastest adoption possible. Much of the core tech behind APEX Network, as well as the private and alliance chains, are also shared. Also as I have indicated in part 1) it also provides revenue and runway for the project as a whole as a supplementary benefit.
3. China Regulatory Risk
The vast majority of our community and supporters are global, nevertheless we have a small community in China as well as that’s where our core tech development is based. China’s president Xi Jinping has voiced support for blockchain technology, but in reality to the Chinese government blockchain does not equate to cryptocurrencies or tokens. Regulatory-wise, the last few months have drastically become more strict. To follow regulatory guidelines, we have reduced activity of the Chinese community, and as our law firm has indicated frequent activity promoting blockchain or token projects is not recommended for the time being. Recently, it has also been common for Chinese community members to report projects, the majority of blockchain projects with a token have been reported in China, though regulatory risk mainly affect those projects that are pump and dump schemes and with no product.
That’s all for now, stay tuned for more during the Blockchain Brad interview!
Kind regards, Jimmy Hu
