Recap of AMA in Satoshi Club

Participants:

Community— @satoshi_club

Serg — Host from Satoshi club

Boris Yang — FinNexus Founder & CEO

Ryan Tian— FinNexus Financial Specialist

Part 1

The community has sent in advance 185 questions. 5 questions that were selected will be answered here.

First Question:

Serg:

1. What are your strategies to assure that investors will hold FNX in the long term, and not just profit in the short term and damage the project?

Boris Yang:

In general, our strategy is making FinNexus launchable, not like air or always developing in the lab. That is why when we issue FNX, there is a tokenized product issued together. So FinNexus will produce a fee from this product and share it with FNX holders. In the future, more products including tokenized and pure decentralized ones would run on FinNexus.

FNX holders will share more from FinNexus eco increasing.

Irina Kravchuk:

What does it mean launchable? Could you make it more clear?

Boris Yang:

Launchable is means we will not let FinNexus stay in development for a long time without anything could be launched or used by users. Another important thing is FinNexus designing inflation of FNX seriously. FNX will increase very slowly, so holders do not worry depreciation of FNX by inflation.

Serg:

Do you have any approximate percentage of inflation?

Boris Yang:

For token supply, we trust less is more valuable like Bitcoin. There is a model we designed on the paper. Inflation will be based on eco increasing. So there is not a fixed rate. If FNX eco does not increase, holders do not need to worry depreciation by token increasing.

Second Question

Irina Kravchuk:

Is Finnexus buffer like a central bank? Does it have outside money or the fund is developed from a % of raised money? How does it work?

Boris Yang:

In the beginning buffer fund is operated by the foundation. But in the future, it will be combined with a decentralized way and our protocols. We will make it more transparent and perfect step by step.

Anyway, the meaning of buffer fund is keeping FNX price increasing in a healthy way and make the project run in a long time. In the beginning, more than 15% of the raised money will be in the buffer fund. And in future fees produced in the eco and other sponsors' money will be put in.

Third Question:

Serg:

At the moment I see that FNX is a utility token. Do you plan to add any incentive-generating functionalities to it?

Ryan:

The nature of the FNX tokens will not become a disadvantage against incentivizing the holders. Frankly speaking, most of the tokens on the market are with hybrid nature. In specific, holders of FNX are eligible for the following rights or benefits:

I. Rights of a higher rate of returns on tokenized products

II. Rights to invest in or transfer tokenized products with lower cost

III. Derivative rights, like early settlement, resale, interest swaps, etc.

IV. Comprehensive participation in the decentralized models

V. Staking benefits

VI. Interactions with other tokens in the ecosystem

VII. Benefits on the FinNexus’ gains and development from the operations

• Underwriting

• Investment banking

• Market making

• Transaction commissions

• Direct investment in the tokenized products

Also, you may have noticed that we designed a unique mechanism in the process of ICTO, to let the market decide the circulation amount of FNX. The converted FNX will be burnt and decreased from the issuance.

Fourth Question

Irina Kravchuk:

What are the advantages of ICTO over other forms of raising money for a project?

Ryan:

It is true that fund-raising activities provide an important channel for investors to participate in the blockchain projects. After the outburst of ICO and IEO in 2017 and 2018, they cooled down rapidly, mainly due to scams, Insufficient information disclosure, and high speculations.

In the former ICO and IEO, one may not need to be responsible for their representations. Several people with a copied and pieced white paper can raise money. Sometimes there is insufficient and misleading information disclosure, which causes investors to make a bad judgment on investment,

Also, ICO and IEO are born with high speculation. Prices may be shooting to the moon and falling to hell, just in a blink. This phenomenon is not healthy for the project either; especially the ones having the models with high interactions with the native tokens.

Therefore, FinNexus creates the concept of ICTO. Advantages of ICTO are more choices provided for investors, satisfying the need of investors with different risk preferences and letting the market mechanism decide the FNX tokens in circulation.

Investors of FNX in ICTO are granted with a second choice. One may either choose to convert FNX into UM1S, to enjoy a lower risk with fixed returns, or hold FNX to benefit from the future development of FNX. Also, this conversion choice will be a risk adjustment factor for the investors’ portfolio. A more conservative investor may choose a greater amount of FNX to convert, according to their risk preference.

Moreover, the conversion will act as the market adjusting mechanism to balance the issuance of the FNX in circulation. The converted FNX will be burnt and cease to exist on the market, which will decrease the final FNX traded. We will let the market decide how much FNX will be left on the market.

You may refer to this article for more details.https://medium.com/finnexus/deciphering-the-finnexus-token-offering-model-the-icto-6029dbe02610

Fifth Question

Serg:

Whom do you see at the moment as your most important and big competitors?

Ryan:

Defi is young, starting from 2018. As a newborn, it has achieved great development. The lockup value in ETH reached 1 billion USD recently, with an over 360% growth rate compared with one year before. We tend to call the other projects in Defi the ‘bother projects’, rather than competitors.

We have witnessed there are a number of projects working in similar directions as FinNexus. Projects like Realt, Konkret, etc. are working on the tokenization models in their own way. Traditional finance is measured in hundreds of trillions, yet Defi just locked up the value of 1 Billion. The legacy finance has provided assets with so many varieties and such a huge amount; together with all kinds of financial instruments and models, it is safe to say that there are hardly any competitions right now in the business model that FinNexus is working on.

On the contrary, we would more than willing to see other projects making achievements in the same direction. Also, interoperability is a natural and important essence of Defi. We would like to be the foundation piece of the Defi legos. We are creating a new world of Finance and would like to do it together

Part 2

The community posted 453 questions for 3 minutes in the Telegram group. Ryan and Boris have chosen 5 best questions to answer.

First Question

Julye:

FinNexus’ goal is to provide diversification and convenience with the tokenized real-world assets. Users will be able to find assets with various risks and returns here, and can easily choose to their preferences like in a supermarket.

Boris Yang:

Yes of course. We try to build the protocols on which more assets from the different regions could be issued and operated on FinNexus. And in another way, users could see and choose these assets with different returns and risk easily. For users, it is like a supermarket of course. For token operators, it is like a tool to manage their assets process. In tech, we call it protocol clusters or stack.

Second Question

S.A.M. Crypto Trader:

What's the main Role as well as Benefits of WanChain in the Finnexus Project? Also, If there anything wrong happened with Wanchain then, is there any effect of that on Finnexus?

Boris Yang:

Wanchain is one of our stone investors. Wanchain will support FinNexus on marketing and community, especially on technical things such as cross-chain protocols. I worked with Wanchain for a long time. We have a good relationship with the founder and members of Wanchain and cooperate smoothly. Because FinNexus is a protocol connection to different chains, So we will connect more in the future. We do not only depend on Wanchain. This year we will connect XRP too in the plan.

Third Question

Aluta:

Financial principles compromises of two fundamentals which are Value creation and appreciation on investment. People keep digital assets at a distance if they are categorized and labeled as “security” tokens because of regulatory issues. However, finance reflects our real economic lives, digital finance cannot totally abandon traditional real-world assets and live in the virtual world alone. Though, certain traits of traditional financial products limit the liquidity of assets around the globe. This can lead to regional barriers between supply and demand.

How can FinNexus help play a role in providing a solution to this issue?

Ryan:

You addressed the value creation in your questions. Actually, there are normally two aspects if we are talking it into the building of one blockchain project. Whether the business of the project creates or enhances the value and whether the token model captures the value in the operation of the business.

Most of the projects in Defi are building themselves based on crypto-initiated logic or ideas. Like the ETH ecosystem, Makerdao is the foundation of the Defi lego and is acting as sth like the central bank. Many other projects like compound, dydx, Uniswap, and many others are built on top. The value became interoperated and magnified by the Defi mansion.

However, there is still some distance away from the real-world application. FinNexus is building interoperable protocol clusters that enable a new world of open financial applications. It will introduce the real-world value inside the blockchain and treat the technology as a tool. With the FinNexus protocols, we may build sth different from the traditional finance and the Defi we have right now, with the merits of blockchain’s borderless, interoperable, trustworthy essence.

Fourth Question

lai Otacer23:

What does the FinNexus team think about long-term competitors such as traditional financial institutions, and what long-term strategies do they have to embrace traditional financial consumers?

Boris Yang:

We think traditional financial consumers are the future of blockchain and crypto-world. It is not good that we play a game in a small circle. That is why we think crypto-world need more assets with different risk and return. More assets could attract more traditional investors to join crypto-world. In the long-term, we have to face competitors from traditional finance, which means FinNexus is big enough. When it happens I think FNX will increase to a very high price.

Fifth Question

Maximar:

What was your inspiration to choose the name “FinNexus”? In which mind-born this project that seems amazing?

Ryan:

Finance here includes the traditional and the decentralized, and here we call it open finance. The traditional finance and the decentralized finance lie on each side of the finance continuum.

The significance of open finance is ‘open’, which means it is transparent, programmable, composable, and open-coded. It may be deployed decentralized, or with the combination of the centralized and decentralized means, for the purpose of openness, efficiency, and friendliness, to meet the specific stage requirements of current economic formats, regulators, basic assets and investors.

Nexus has the meaning of connection, bond, and integration.

It is the connection between the ideal and application. The ideal of the decentralized establishment gives us belief and impetus, while application concentrates on the implementation and down-to-earth. The nexus is aimed at casting the dream into reality.

It is the connection between technology and scenarios. Every success of technology is connected to its application, and the decentralized should discover its value in real-world scenarios.

It is the connection between traditional finance and blockchain. The blockchain technology bears the dreams of many developers and describes a world that is fully decentralized, trustworthy and bondless, especially in the field of finance. But Rome was not built in one day. Apart from the application in the crypto assets, more importantly, the blockchain should introduce itself to the traditional finance field, while benefit from its successful models and risk control systems.

It is the connection between technicality and practicality. The success of blockchain technology is depending on the acceptance of the social public and friendliness of the applications. It is necessary to combine the theoretical and the practical, and to disclose the information of risks and logic of returns in an efficient, precise, understandable and fairway.

Congrats! Satoshi CLUB x FinNexus AMA Winners.

They will share a bounty pool of 200 USD (BTC+FNX)

Part 1:

@mjorje

@marvelbounce

@pandas_btc

@vasekmures

@smithitty

Part 2:

@Boylut

@NickyJack1

@MaxiVV

@sam_cryptotrader

@moonsoon23

Part 3:

Question no.1: 84 answers/ 72 correct

Winners:

@popov77

@parisienne_a

Question no.2: 84 answers / 64 correct

Winners:

@malachi456

@bitociok

Question no.3: 82 answers / 53 correct

Winners:

@Dong_jun

@bitalik_vuterin

Question no.4: 89 answers / 42 correct

Winners:

@nguyenhn74

@trustmywallet

Question no.5: 88 answers / 24 correct

Winners:

@ieo_alert

@crypto_propeller

Satoshi Club contacts:
https://esatoshi.club/
https://t.me/Satoshi_club

About FinNexus

FinNexus is the open finance protocol built on the Wanchain blockchain. It is a hub for connecting different decentralized ledgers to each others and users, and also for connecting with traditional finance applications. The first iteration of FinNexus will be a marketplace for hybrid decentralized/traditional financial products.

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