Danny Deng, Chairman, Tai Cloud Corp: Inspiring ideas are long lived, and D1 Coin will see major success
By any standards, 2018 was full of events and drama for the cryptocurrency industry as a whole. However, despite all the uncertainty and volatility experienced by this emerging innovative market, there are tons of developments and dozens of breakthroughs taking place that aim to bring cryptocurrencies closer to our everyday lives and use as well as initiatives to civilize the market.
Today, we had the opportunity to sit down for a discussion with Danny Deng, Chairman of the Tai Cloud Corp. and the GM of the Beijing Blockchain Ecosystem Investment Fund seeking insights on D1 Coin projects and its potential to become a power player in what appears to be a new and still nearly empty market of asset based tokens.
Q: Danny, what do you see as a significant cause for the current slump that the cryptocurrency market is experiencing? Seems like the public and big institutional money have some visible interest in the theme but at the moment it is concentrated on the sidelines.
DD: Many cryptocurrencies lack application scenarios and actual use cases, the wave of hype that the market rode through 2017 and early 2018 left veteran cryptocurrency users well off, but new entrants were heavily punished by the market volatility. In my opinion, it all comes down to an increasing scepticism of the public as most crypto projects appear incapable of delivering upon their promises on MVPs, proper applications and consumer adoption metrics. In situations like this, investors gradually lose their confidence.
Q: What is D1’s solution for withstanding market volatility that has crippled many projects within the cryptocurrency industry?
DD: The D1 project is something that bonds the crypto world with the real world. D1 tokens are backed by diamonds physically harvested in the material world. The team created a complete and well-functioning digital ecosystem that can co-exist with the fiat and real assets universe. Both factors in favour of D1 dramatically improving its ability to resist risks created by volatility.
Q: I get where you’re going with that. But why diamonds?
DD: This is something that comes naturally. Diamonds possess a good collection and savings value and retain it well throughout the years, they are limited in their natural supply. However, they are difficult to circulate physically, and this was the sector’s biggest bottleneck over decades. Fusing diamonds with digital assets by means of blockchain technology and cryptography will allow global investors to acquire real diamonds with heavily reduced intermediary costs, effectively eliminating limitations for their quick and convenient flow.
Q: What does the future of digital assets and asset backed tokens look like to you? Are they the new “Holy Grail for cryptocurrencies”, as highlighted by Forbes?
DD: For digital assets, a lot of efforts needs to be implemented towards constructing a network of adequate consensus and trust systems. Right now, tokens backed by real assets that carry tested and true value will provide investors with greater confidence, and this is easy to explain. Holy Grail or not, diamonds come with a high value and great scarcity, which works towards the benefit of D1. In the long run, my bet is on digital solution rather than on sacks with gold bars and actual diamonds in one’s pocket.
Thanks Danny, and as a final note, what are you looking forward to in 2019 in terms of the industry, and what advice would you give to new entrants into the cryptomarket?
DD: I’m excited to see projects and companies in the cryptocurrency industry becoming more mature, this is some good aftermath of current volatility. I believe that truly valuable technology firms and businesses that bring something beneficial for humankind and society will develop greatly despite all short lived fluctuations.
Blockchain and cryptocurrencies are still in their early age, and there is a lot of room for growth, both in size and in depth. This opens great opportunities but creates many challenges as well: projects that can build the best trust systems and consensus mechanisms will have bigger prospects for survival and development but some will be wiped out of the market.
For investors, I would like to note that all markets work cyclically, it may be discouraging to see so much red but please bear in mind that inspirational ideas are long lived and can sustain temporary difficulties. We are still young and there is a lot of ground to be covered in terms of Blockchain technology and cryptocurrency growth. Pick wisely, work hard and be patient for your seeds to become vital plants.
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