Jaron Lukasiewicz on the Vital Role of Cryptocurrency Exchanges (HybridSummit 2017)

a big reason why I came is to be in
every one of you so really looking forward to having that opportunity here
over the next two days a quick background on B and I found that one of
the first Bitcoin exchanges in the u.s. called coin Center and we’re based in
New York City I we built really the world’s first low latency institutional
Bitcoin exchange through the process of running my company we acquired the
largest Bitcoin exchange in Canada and we sold both of them the Kraken about a
year and a half ago and Kraken is still one of the largest Bitcoin exchanges
today and as you all get into the space I’d like to start off by talking about
the roles that exchanges play the whole system because crypto decentralized
cryptocurrency is our decentralized but in order to get into the ecosystem from
start generally speaking you have to go
through a bank or an exchange and there is this point where you have to actually
purchase cryptocurrency and that’s the role that exchanges fundamentally play
so when when you’re looking at exchanges one kind of idea that is very very
closely related as to what the traders play in exchanges and traitors are
people who I would say for their own benefit
head to the market in order to make profit but they play a much more
important role because anyone else who is looking to buy or sell cryptocurrency
these are the people who are generally making liquidity which allows you to buy
cryptocurrency and a good price so when you’re looking at different exchanges
that you might trade on one thing you really want to take a look at is you
know can you place a big order can you place that a good price and even if
you’re not placing a big order they can answer to that will tell you if you’re
trading at the right place now there are several exchanges across the world
probably over a hundred at this point and all of them are very daring so some
of them have specialized in you know Bitcoin and theory and a lot of basic
cryptocurrencies and there’s a reason for that they’re the largest and there
are other changes that have been emerging really over the course this
year that are more focused on all these two tokens which are what’s created on
the nice yellow and a lot of exchanges are coming up coming into play all over
the world in order to service that market so when people begin trading in
the cryptocurrency ecosystem you know you may enter through one of these very
large exchanges one thing I’ll add to that is that they’re usually focused on
specific countries specific target markets because ultimately you know you
are created USD you might go to an exchange
to offers that you know payment options in USD but you know if you are trying to
enter in any other currency you may go to your local market that I think that’s
really one thing work witnesses pirated blog it’s you know really focusing on a
lot of these other markets now I’ll also add banking markets black double
exchanges so this is I believe probably the next opportunity in the exchange
market in my personal opinion you know trying to compete at the USD trading
market is like oversaturated not not fully in industry that you would want to
get into as an exchange operator so I want to see companies that are focused
on getting into a lot of these more localized markets were making great
Bitcoin and cryptocurrencies too and that’s especially important in a lot of
those countries in particular specifically developing nations where
the banking system usually is not supportive too much of the population
and cryptocurrencies offer an alternative to the entire banking system
really so there are you know kind of going into you know the different types
of exchanges there are two fundamental types of exchanges there’s the first
type of exchange which is really more for consumers opera is easy buying soul
mentality so you’re probably not going to get their best price in those
exchanges but it’s going to be the easiest
you know your mind cuz even a small amount of think like that’s always going
to be the way to go but there really is a much more institutional background to
the whole industry and this where exchanges come into play and those
exchanges market makers like to placed bid and ask orders on board but in order
to burn you know people who will oftentimes come from those basic
exchanges behind the scenes to pull their liquidity and all of this begins
to create a localized ecosystem in which people can find a localized market price
for references now I’ve kind of been speaking on a very basic level on you
know just what an exchange does but one of the most important issues over the
course of Bitcoin I entered personname 2012 there have been many hats meant a
lot of money loss over the years and this fundamentally comes down to the way
that the security works in Bitcoin and cryptocurrencies there are many options
that exchanges have in order to protect your money if you’re holding it on the
exchange I suggest learning how to actually use a
Bitcoin wallet so that you can take control of your own money but if you are
creating pick boy or there are many other reasons why you
might trust a third party with your coins it’s really important to be asking
questions about what are their security policy is how do they this getting a
little deeper what are their food storage policies how is their hop wallet
set up getting this is much deeper than probably many of you understand but I
really encourage you if you’re getting involved in cryptocurrency you know the
second you get involved you’re really just starting to explore the basics but
you’ve gotta get to security so there one thing I’ve noticed is that there are
no great consumer solutions in many denominations I actually was in the
Philippines just a few days ago and it’s looking at markets like that that really
excite me as to the role that cryptocurrencies can play because you’re
talking you’re starting to talk about a population that’s where there are many
unbanked people and to the extent that they’re not unbanked they’re other
things that might be 90% of the Philippines now it’s a crypto this is a
new opportunity where people can have a de facto bank account people can hold
their money not in cash under their mattress but instead in their cell phone
or their computer and to the extent that more options for people to buy for no
currency store cryptocurrency securely enter into
these markets becomes a very disruptive force within the development world and
that that’s really what’s always gotten me the most excited about currency and
on that note that’s why they supply you know I really interested about hybrid
walk is really focusing on those markets a lot of ever in in each in particular
and I think there’s just such a huge Eve for this kind of services now you know
what other you know big Collins was eating earlier he created tethered which
without me now I thought was one of the most revolutionary ideas and one of the
one of the features that you know you might find written a lot about by yet
that hybrid walk walk it’s working on is very similar concept around competing
fiat currency and turning it giving it the features of cryptocurrency so you
can take for instance a Philippine Filipino peso put it on the blockchain
and now the under bank and transfer within themselves so you’re really
creating an alternative to cash and that that’s huge implications both for the
role that banks play Philippines as well as how the options that
people have and so you know I think to kind of end off I you guys are in a
great part of the world for what’s happening in crypto right now
you know I think the opportunities are much larger here so I’m coming from the
US which is a very hyper over regulated market and it makes it very difficult to
operate in a country where you know you have a lot of liability and started
melanie’s in that space I believe that Asia just given the size
of the market given the opportunity of what krypton bring to the population as
well as I think the regulatory environment broadly speaking I know
there are many countries in Asia but broadly speaking you can’t create
companies in this region that are successful and provide values for local
populations I think you all are in a great place to be exploring and
discovering what’s happening in in this market and I’ve got to leave off there
but I have been really excited to have an opportunity to speak to every one of
you and again I would love to meet all of you so please feel free over the next
two days to come up say hi ask me any questions you have about anything and
I’ll actually be right back on the stage of the panel two minutes thank you

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