Below is our recent interview with Donnie Kim, CEO at Kryptoin:
Q: Could you provide our readers with a brief introduction to Kryptoin?
A: Kryptoin is a convergence of two megatrends that is happening as we speak and will get larger in the near future. That is the usage of ETFs which has been increasing steadily for the past 18 years. ETFs are the investment vehicles that are most popular today.
The second megatrend is the increasing market capitalization of crypto currencies. Currently it is roughly around 350 Billion which is very small in terms of market size compared to other financial markets but it has the potential to reach 10 Trillion in the next few years.
The combination of the two trends was what we saw when we started to conceptualize the platform and the application.
Currently there is no mechanism to exchange trade baskets of cryptocurrencies in the equity markets for obvious reasons with the legal issues surrounding the Bitcoin ETF and there is no mechanism to do it either on the cryptoexchanges.
Where Kryptoin comes in is that we are able exchange trade any basket of cryptocurrencies on the digital exchanges.
Q: The Securities and Exchange Commission has recently rejected a second attempt by Cameron and Tyler Winklevoss to list the first-ever cryptocurrency ETF on a regulated exchange; what are your thoughts on this?
A: This is a normal resistance by the establishment to new technologies. I remember when the internet was just getting started and people at that time were wary of internet shopping. It was banned in some places. Too many fraudulent transactions. Its normal for this adoption process but it will eventually pass and it will happen which will allow Bitcoin to be accessed by everyone on the equity exchanges.
Q: Is it really important to get a Bitcoin ETF to the market? Why?
A: It not imperative to the development of this market because its much bigger than just bitcoin. It is all about the altcoins and the application of blockchain and tokenization by virtually everyone. From these altcoins and new applications I believe the next huge company will emerge, like a google or netflix. The only access to them will be directly through the digital exchanges and the Bitcoin ETF will only be about Bitcoin.
Q: Tell us more about Kryptoin ETFs. How does it work?
A: Kryptoin enables the issuer to create a token that is representative of a basket or index of cryptocurrencies. Whether that be a Solar Index or a Proof of Stake Dividend Index etc. and exchange trade that basket on the digital exchanges to operate an ETF properly with 100% asset backing. So each ETF coin really represents a small share in that creation unit. It is an ecosystem that also utilizes our own trading desk to provide liquidity for that ETF as that is something needed to keep the price of the ETF in line with the NAV.
Q: What is the purpose of KRP Tokens?
A: KRP tokens are the ICO tokens that are sold to the public and through private placement to seed the ETF and give it the initial capital needed to launch on the exchange. KRP tokens have a current and future value equal to the NAV (Net Asset Value) of the Blockchain 10 ETF that closely mirrors the market capitalization of the crypto market. We have been tracking data for this ETF since Nov 2017 and we can show that there is not even 5% standard deviation from the market cap fluctuations.
Only 100000 tokens will be sold in the Pre-ICO in a Dutch Auction Format on Sept 1, 2018. Visit our website.
Q: What is on the roadmap for Kryptoin moving forward?
A: More indexes, more ETF tokens. Connect as many blockchains to our patent pending ETF application called the Megawallet to enable issuers to create more diversified indexes and baskets. Currently we have 13 blockchains connected but we plan on connected more than 100 by the end of 2019.