Disclaimer: for the “People of Blockchain” section we have developed a short Q&A with relevant people of the industry. All answers are presented exactly as offered. The content of the answers is not altered in any way and is the sole responsibility of the respondent.
Name and current occupation: Bryan Cutter, Chief Investment Officer, Queen Capital
Describe your current activity. Navigating the digital asset market to deliver superior risk-adjusted returns
Short bio: Singapore based Hedge Fund
When did you first hear about Bitcoin/blockchain and how? I first heard about bitcoin because of the publicity generated by Silk Road in 2015. I realized the enormous value of a financial system outside the current sovereign financial system. A bitcoin, with its accompanying value is essentially a share of that financial system. There are quite a few other unique features that Bitcoin possesses that really appealed to me like true scarcity, even scarcer than precious metals such as gold.
What was the first crypto-related activity you did? I invested a 6 digit sum into bitcoin when it was about USD 750 as I was convinced that it was undervalued by far. I believe that at its current price of USD 8150, it remains undervalued.
What was the last non-blockchain related job/occupation you had? I was a fund manager for a private investment holding and we simply migrated to the digital asset space.
What made you migrate to the blockchain professional environment? My experience in the crypto space from 2015 to present oversaw the ongoing evolution of the asset glass – I saw the birth of Ethereum, the catastrophe of the DAO and the beginning of ICOs – a lot of people only see static slices – the present as well as recent history. When one understands how the past has led to the present developments, one can reasonably project or extrapolate the future for the space as well – I see a very bright future for blockchain and crypto for at least the next 2 years – this is THE space to be in right now if you are in the finance / IT /marketing industry.
How do you see your role in blockchain and crypto? How do you think you can influence the industry? I present a more traditional financial view – for example, the use of valuation models etc. when it comes to investing in projects in this space. I favor projects that are B2B and are focused on generating revenue – projects that can be valued. Whereas these projects tend not to have the stratospheric upside which comes from the market overpricing it, the projects I select tend to be more stable and long term – and can definitely endure during a market downturn or even a complete crash of the sector. One example is TE-Food (ticker: TFD). An existing company that has been in business since 2016 presenting farm-to-table food traceability infrastructure. One key differentiating factor that sets TE-Food apart from other organisations in the crypto-space is that it already has 6000+ business customers, 400,000+ transactions per day and has served over 34M people since inception.
How do you see the actual situation with ICOs? Do you believe they should be regulated? The statistics show that ICOs have raised about 4x the amount of money year to date compared to 2017. I think that inevitably, many projects are ill conceived and this has turned more into a marketing game. I would like to see real existing businesses integrating blockchain / their utility token into their business processes for the technological advantages it presents rather than seeing an ICO as just an opportunity to fund raise with less regulations.
From your point of view, what are the main challenges of blockchain at the moment? It is still not fully integrated with the existing financial system. Without the infrastructure / regulations, significant capital cannot flow into crypto. Right now it remains the purview of retail investors putting in small sums of play money as well as adventurous venture capital firms pursuing unparalleled alpha – the same VC firms that caused the dotcom bubble.
How do you see the future of blockchain? How will it evolve? Where do you think we will be in ten years’ time? Do you see crypto as some kind of universal payment system? Do you think that bitcoin will still be king, etc? Wow, i’m sure you’re aware of just how huge the parameters of this question are. I think that crypto will be just as integrated into existing financial systems as much as any commodity. Growth would probably have tapered off so alpha and volatility will be on par with other asset classes – when looking at commodity-like cryptos like bitcoin as opposed to new tokens of course. I’m betting that bitcoin and crypto is here to stay 😉