- October 31, 2017
- Posted by: admin
- Categories: Blockchain, Initial Coin Offerings, Investing, Trading
I travelled to Cambridge, UK, last month, and before the trip I browsed through LinkedIn to reach out and meet some crypto companies and start-ups. One company caught my eye, CapchainX, and I reached out to the founder of the company, Beryl Li. Though Beryl was in the US at the time, we conducted an online interview with her.
Now that we have her answers, let’s find out what is CapchainX.
What is CapchainX and how does it work? What’s the problem you’re solving?
CapchainX is a CryptoEquity platform for companies to create, manage and trade equity on the blockchain. We create sustainable tokens for clients making sure there are fundamentals backing the token such as shares of the company, or a debenture.
This makes it easier for clients to raise funding, or transfer ownership by reducing costs associated with middle office fees, and benefiting from real time transfers. We also provide an end to end solution to do an ICO. We provide the economic structure of the token and write an exceprt for their whitepaper, provide checks and guidance on how to back the token, and create the token and the pre-sale/sale contracts. We will be launching our wallets and an automated tokenization platform in 2018.
We’re tackling inefficiency in private markets by allowing companies to create sustainable tokens backed by real fundamentals for more liquidity and transparency.
Can you describe the core team a bit?
We’re a diverse team of 12. CapchainX was started by me, Max (blockchain cofounder) and Sebastian (legal cofounder). I met Max in Stanford University while I was completing an International Management Certificate program in the summer of 2014. He has been building on the Ethereum blockchain so the CapchainX idea interested him when we randomly caught up in SF in one of my visits.
Our legal cofounder, Sebastian, was my classmate at Cambridge University. He did a masters in banking law in London School of Economics and has 10 years of legal experience. We needed his legal expertise in tokenization and taking a lead in our conversations with regulators. Our new CTO, Kevin,will be product managing and building alot of the automation for CapchainX.
He did CS in Berkeley and Stanford and recently exited a startup he co-founded in Silicon Valley. Likewise, members in our team have had exits. Most are from the Stanford/Cambridge network, guys I have worked with in the past, or recommendations from ex-colleagues. We are from the US, South America, Asia, UK.
My experience has been in early stage invstments, consulting, and a blockchain startup. I was EIR at Coins.ph, a payments and remittance startup that uses the blockchain. When I did my Masters in Finance after Coins.ph, I wrote about a secondary market on the blockchain by representing equity as tokens. The idea has evolved since then but the momentum in ICOs has shifted to our favour.
At what stage can a company contact CapchainX to issue tokens. What capabilities need to be in place?
Any stage. They need to be incorporated and legitimate.
How does CapchainX as a platform make money to have a sustainable business?
For the complete end to end Token Sale solution, we charge cash upfront and a commission on the sale.
Can investors invest into CapchainX as well?
We are looking for value-add investors keen to see CapchainX succeed. Theres nothing more exciting working with individuals who share the same excitement and passion for our technology. We prefer to have a closer relationship and get to know them. We really want to keep the CapchainX atmosphere warm.
CapchainX platform allows the company to trade its tokens – can you elaborate on how that works?
At the moment, tokens can be sold in an Initial Coin Offering or a token sale. This is trading in the primary market (selling coins for the first time). We are currently offering an end to end solution to help launch a company’s ICO. We take all the hassle of creating the tokens and figuring out all the economics, set up and security for them. Startups can now focus on their core product rather than divert their engineering time and resources for fundraising.
In the future, the wallets we will launch in 2018 will allow individuals to just move tokens from one wallet to another. Following this will be an orderbook system where token buyers and sellers can match their token orders known as a secondary market.
What are the biggest challenges and milestones for You in the next 12 months?
We are automating our ICO end to end solution to provide the service to more users. While were a small team, we are also operating lean.The market is big and we more or less have already reached our 2017 targets in terms of the number of ICO clients to take in this year.
There’s a need to actually hire to take in more clients but we are waiting for the self service platform were building so we can just focus hiring the best people to work with us in the future. We won’t hire randomly just because our business is growing fast. A good example would be the need to hire a CTO last year.
We waited to find the right person fit to join us given our circumstances as a startup too. Its important that we keep the CapchainX culture intact. Clients are our priority. We need to have the capacity to really work with them, take time to really go through every detail with the client to be critical at learning their needs and create the best solution to improve efficiency in private markets.
What’s the biggest achievement you’ll celebrate with the CapchainX team 3 years from now?
Building the world’s leading and first Crypto Equity tokenization platform (were currently the first Crypto Equity platform today).
When do you think cryptocurrencies will truly hit the mainstream?
The momentum has recently shifted. It won’t take too long. Regulating cryptocurrencies need to happen. This legitimises cryptocurrency as an asset class increasing confidence among high net worth individuals and sophisticated investors. Hedge funds and other fund managers will be more comfortable adding these assets into their portfolio unlike today. Their LPs will most likely withdraw if they did this.
Do you also invest into cryptocurrencies and if you do, then which ones are your current favorites?
I do not provide investment advice. I personally look into the top 10 cryptocurrencies. I started with BTC and ETH.
Is there anyone who you specifically follow in the cryptocurrency space?
If you could borrow someone’s brain for a week, whose brain would it be?
I think this person might find this as a surprise but i will say, my tech cofounder, Max (he must be really touched reading this by now! :D).
Even before I found out he topped his Stanford class with a double major in Engineering and Philosophy I’ve actually worked with him in CapchainX long enough to be a good judge! Other people could be a fountain of information but Max’s way of just sensing patterns, analysing data sets, figuring codes (I gave him limited time to figure a script via a punchcard), digesting complex infromation, simplifying the thought process and communicating it effectively in English for a child to understand impresses me.
It’s very seldom you can meet a good engineer working on complex models and cryptography that can make sense of real world situations and communicate thoroughly. He is actually the second person (first was my thesis supervisor who founded Raspberry Pi) who fully understood the point of my Cambridge thesis- before the term ICOs and tokenization popularized almost a year later! Thats why I started CapchainX with him!
What is the most valuable advice that you could give to people just starting to discover the crypto industry?
Some tokens have real value proposition but most tokens today have no fundamentals linked to the token to drive prices.Try to figure what drives the price of the cryptocurrency you’re buying. If you are depending on people buying it just to drive prices higher (speculation but no fundamental reason), think again.