Ishan Pandey: Hi Jack, welcome to our “Behind the Startup” series. Could you tell us about yourself and the history of Phemex?

Jack Tao: To me, Phemex is more than just a cryptocurrency derivative exchange. I spent over a decade on Wall Street as a vice president at Morgan Stanley, and if that’s taught me anything it’s that the world of financial services as it looks today. is not designed for retail investors.

I encountered blockchain technology in its early days and even earned Bitcoin through mining.

However, despite the philosophy of decentralization, transparency, and distributed community control, I have found few of these ideals implemented on traditional exchanges. This is what led to the creation of Phemex.

Ishan Pandey: Can you tell us about crypto derivatives and how they work? Furthermore, can you enlighten us on the regulations surrounding these products?

Jack Tao: Cryptocurrency derivatives are precisely what they sound like: products that derive their value from an underlying crypto-asset.

They come in the form of traditional products such as futures and options, but unlike what is available in conventional offerings, Phemex also offers perpetual swaps, which allow traders to hold their positions indefinitely. using a funding mechanism.

The regulation of digital assets is complicated, but with governments slowly learning the value of blockchain technology, we are seeing more and more regulators looking at how they can control the asset class.

We don’t see DLT as a replacement for the current infrastructure but rather as an evolution of the financial system. Phemex adheres to a variety of regulations, but as lawmakers realize how blockchain is leading the way in finance, it should become much easier for platforms to start adhering to legal standards globally.

For interested traders who want to learn more about cryptocurrency derivatives, please read our blogs.

Ishan Pandey: Many cryptocurrency platforms operate without a license from the regulator where they are registered. What do you think of these unregulated platforms and what are the risks attached to them?

Jack Tao: The blockchain has only survived for so long due to its philosophy of decentralization.

Many believe that the 2008 financial crisis sparked the need for distributed control, and with the way centralized entities carelessly managed our economies throughout history, this seems like the only way forward. However, money as a concept has always been centralized, and hundreds of years of regulation designed for centralized money cannot suddenly be applied to a decentralized ecosystem.

We believe that regulating the blockchain space is the only way to push these ideas into the mainstream, but we also understand that it’s not as simple as applying the same old rules to a new form of money. .

Regulation will take time, and until we can develop strong laws that respect both traditional and futuristic aspects of money, there will always be unregulated platforms.

A decrease in these platforms might signal that the industry is starting to mature, but I think they will still be around. Until then, whether or not a law dictates it, it is essential to honor the commitment to protect all users and their assets.

Ishan Pandey: What advice would you give to traders on how to trade financial instruments?

Jack Tao: Start small and don’t buy the FUD or FOMO.

Especially in an industry like crypto, with absurd profit margins, it’s easy to adhere to the get-rich-quick mentality. However, it’s important to remember that a successful portfolio is more about avoiding bad decisions than making good ones.

Education is essential here: there will be all kinds of people and projects trying to convince you to invest in a particular token, and without understanding why or how a project creates value for the community, it is impossible to ‘eliminate really investment scams.

Speaking of community, get involved! The cryptocurrency community is quite welcoming. Take part in events and get to know other people in space. For example, we run business competitions, giveaways and other events all the time.

Indeed, Phemex is celebrating its 2 years this month! We are also having a “Dream With Phemex” event as part of our 2nd anniversary, where we will select a few special winners and make their dreams come true.

Ishan Pandey: What do you think of Web3 and how can it be exploited in different industries?

Jack Tao: Just as Web2 has made it easier for end users to interact with the Internet of Information, Web3 will revolutionize the way the world interacts with the Internet of Value.

We are already seeing applications that have no equivalent in traditional financial services, and as Web3 applications continue to be designed for a wider audience, decentralized value transfer should become the norm for most companies. modern web applications.

Web3 will also change the way things are monetized. One of the biggest challenges on the Internet today is the way information is collected and used. With the way blockchain networks make data monetizable, we should see a significant shift in business modeling.

Areas such as supply chain and identity security are entering a new paradigm, and with DAOs, entire organizations can take over and outsource work without a central entity taking the lead.

Ishan Pandey: How do you see the Web3 revolution impacting the development of dApps and the DeFi space?

Jack Tao: Decentralized finance is a relatively new facet of the Web3 revolution, but arguably one of the most important. Only around 60% of the world’s population has access to the Internet, with around 80% of that population representing people between the ages of 18 and 54.

DeFi allows anyone with a smartphone to access the blockchain and its associated services, which is a big step towards global financial inclusion.

Ishan Pandey: What role has the pandemic played in enabling traders to profit from cryptocurrency investments? Also, what would the post-Covid-19 scenario look like for the blockchain ecosystem?

Jack Tao: The current narrative is premised on the idea that Bitcoin is a hedge against inflation, and with the US dollar wholesale price index rising, now is a great time to invest in digital assets.

Bitcoin’s deflationary model is a great avenue for a long-term store of value, and it has caught the attention of investors around the world as inflation continues to accelerate.

However, as the world begins to recover from the COVID-19 pandemic, economies will also begin to stabilize and fears surrounding inflation will begin to fade once again.

After all, inflation isn’t all a bad thing. The benefits of cryptocurrencies will continue to become evident, and that should continue to get people into space. I think while the pandemic may have encouraged many people to diversify into the asset class, its absence won’t take them out.

Ishan Pandey: What new trends do you think we will see in the blockchain industry?

Jack Tao: Facebook’s recent foray into the metaverse narrative has investors around the world looking for the next new trend, but we’ve seen it coming for those in the blockchain industry for some time now. As a concept, the Metaverse has been around for decades, describing a world where the lines between our online and physical characters are blurred.

This year we’ve seen the NFT industry explode into activity, and with the metaverse slowly taking hold of us, the concept of digital ownership is only going to become more critical.

As I said during my speech at the recent World Blockchain Summit in Dubai, nobody really knows what the metaverse will look like, but that’s because no person, entity or conglomerate will design it – instead, it will be built by billions of individuals spread out and disparate across the planet.

Disclaimer: The goal of this article is to remove the information asymmetry that exists in our digital markets today by doing due diligence, asking the right questions, and giving readers better opinions to make informed decisions.

The material does not constitute an investment, financial or legal advice. Please do your research before investing in any digital assets or tokens etc. The writer has no vested interest in the business.

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