Shulou(Shulou.com)06/02 Report--

Welcome to the AMA studio for the first episode of Bithumb Global. Today, it is a great honor to invite the co-founder of Cred and CEOLU HUA to share with us. The theme of this sharing is "through Niu Xiong, cred to accelerate the realization of open finance, and to create" Ant Financial Services Group "on the blockchain. Are you ready? Let's welcome the co-founder of Cred and CEO LU HUA~

Please ask LUHUA to make a simple self-introduction for us, ask LU to prompt OK after the introduction, and then let's move on.

Introduce yourself briefly at the beginning.

Hello, everyone. Thank you for Bithumb Global's invitation. It gives me great pleasure to be here today to share with you the Cred (LBA) project and its latest progress.

Most of the founding team of Cred comes from PayPal's technical and financial executives. I have worked in Silicon Valley as a co-founder of Cred and CEO for more than 10 years. I have been working for companies related to financial technology, first engaged in work related to network security encryption algorithms, and then joined the world-famous multinational payment company PayPal, mainly responsible for PayPal bank transfer products, managing the global PayPal bank transfer platform, and became the head of PayPal China core payments in July 2011.

Let's officially start now. Guests are invited to signal OK after answering each question. It is forbidden to post messages during guest sharing. We will leave time for questions at the end.

Question and answer session

Q1: could you tell me something about the original purpose of the Cred project?

Cred CEO Lu Hua: my previous experience of studying in Canada and working at PayPal headquarters in the United States has made me realize that the traditional financial infrastructure and credit ratings are kept in a central database, which is not conducive to the global flow of assets and values. For example, the credit card history of one country can hardly be used as a basis for issuing credit cards in another country.

The Cred project arises at the historic moment under this background. I think we can make full use of blockchain and distributed ledger technology, which will not only be safer, but also greatly improve the efficiency of the circulation of legal currencies and various valuable assets around the world.

Q2: could you tell me something about the team that founded Cred?

Cred CEO Lu Hua: my co-founder Dan Schatt, formerly head of PayPal's innovation department, is also an evangelist of technology and financial innovation. He has written an Amazon bestseller called subverting the Bank, and many of its ideas are in line with Cred's ideas. Our chief scientist, Howard, is also a core developer of the zero-knowledge proof algorithm zkSNARK used by zCash. Including compliance, products and technology, our entire team has years of hands-on experience in the financial, Internet and blockchain industries.

Q3: Staking Economy is a hot spot in the industry recently. As a financial services project on the blockchain, can you share with us the progress of Cred in the direction of Staking?

LBA Staking launched by Cred CEO Lu Hua:Cred is an effective mechanism for access to better financial services. At present, user feedback is good. Nearly 90% of users will choose Stake 10, 000 LBA to get higher financial returns or lower lending rates. For example, after choosing LBA Staking, the annualized financial income of Cred platform can be increased by 5% to 7%.

In the first quarter of 2019, the number of LBA Staking for CredEarn products on Uphold alone reached about 50 million, accounting for 10 per cent of the current total LBA circulation.

Q4: the community is very concerned about CredEarn, the core product of the cred team. Can you introduce it to us?

Cred CEO Lu Hua:CredEarn is a wealth management product of Cred, which currently supports a variety of gold deposit methods, including encrypted digital currency: BTC/BCH/TRX/XRP/ETH; stable currency: TUSD/UPUSD/UPEUR; legal currency has USD/EUR/GBP. By 2019, CredEarn aims to have assets of more than $100m.

Q5: Cred, as a high-quality lending project in the global market, can you share with us the recent progress in the loan trading business?

Cred CEO Lu Hua: CredBorrow borrowing reached $15 million as of the first quarter of 2019. At present, there are also a number of decentralized lending projects in the market, mainly in the form of point-to-point, such a momentum of development is also widely concerned by everyone.

In fact, the starting point of our Cred is to expand the business of lending and financial management, the related applications of landing block chain and encrypted digital assets, with users and traffic, on the whole basis (like Yuan an, it has been done a lot. At this time, we launch the money security chain and DEX, which seems to be more natural, which is close to our way of thinking.) First, it starts with the mixed form of semi-centralization and decentralization, and then slowly adjusts it to become more decentralized.

Q6: there are also some loan projects on the market, so LU always thinks that compared with these projects, what is the advantage of Cred?

Cred CEO Lu Hua: for example, Ripio and Ethlend mainly do P2P lending, and there is no requirement for pledge.

What makes Cred different is that the financiers come from US financial institutions. Cred has been granted a credit line of $300m, while Cred has also obtained a California loan license.

Cred loan product CredBorrow is based on mortgage lending model, by the world's top third-party custodian institutions such as Xapo, Bitgo, Bittrex to take care of mortgage assets, whether in terms of compliance, security, Cred has more advantages.

It is also important that, in fact, Cred is probably the product that performs Staking best. Similar to LBA's Staking, users can not only purchase and use our products and services on our website, but also enjoy the upgraded financial services experience brought about by LBA Staking through our partner platform.

Our partner is also one of our nodes, and a large partner may be a super node. The Uphold mentioned above has reached a scale of tens of millions. We have also announced many very important partnership, such as wave field Tron (TRX), wave field Tron (TRX) is one of the largest underlying blockchain systems in the world, acquired Bittorrent in 2018, and now has more than 100 million users worldwide. Through the deep strategic partnership with Cred, wave field TRX holders can earn up to 10% annualized return on deposits through various wallets and dapp on the wave field chain.

For example, Bitcoin Jesus, the world's largest bitcoin community and service, founded by Bitcoin Jesus Roger Ver, has more than 4 million Bitcoin wallet users, its official website and personal Twitter followers total more than 1 million, and through a close partnership with Cred, its users will be allowed to earn up to 10% annualized income from their bitcoin and bitcoin cash BCH.

There will be a lot of partners one after another. Their Staking scale will be larger than Uphold, and then there will be more and more Staking node clusters around LBA.

Q7: what is the application scenario of Cred tokens and the main logic driving the appreciation of Cred tokens?

Cred CEO Lu Hua: the current application scenarios of LBA are as follows

Lower lending rates

Improve the income of financial management

Reduce the handling fee for using UPUSD/UPEUR

Reduce the handling fee for the use of other cooperative stable currencies

Reduce the transaction fee on the cooperative exchange

Use LBA to get discounts in partner merchants

Bring more LBA customers to partner merchants

Get LBA reward for completing a task

The main logic of LBA appreciation is:

At present, the total economic value of LBA comes from the spread between financial products CredEarn and loan products CredBorrow. With the expansion of the scale of financial products and loan products, the economic value of LBA will increase.

LBA Staking is a mechanism to obtain better financial services. More and more users choose to lock up LBA, which will greatly reduce the supply of LBA in the market, and the reduction of supply will also lead to the appreciation of LBA.

Q8: TrueUSD and Cred work together to enable holders of stable tokens to earn an annualized return of about 8 per cent. Will you cooperate with more stable tokens in the future? Does the cooperation between Cred and stable tokens broaden Cred's business?

Cred CEO Lu Hua:Cred is actively promoting cooperation with other stable coins. On the one hand, it brings more traffic and more LBA Staking scenarios to Cred, and on the other hand, it also brings new application scenarios for stable currency users. It is a win-win cooperation model.

In the area of stable currency cooperation, TrueUSD is our first cooperation, and the Universal Protocol Union's US dollar stable currency UPUSD and euro stable currency UPEUR have been launched one after another. at the same time, we are also docking other stable currencies, such as PAX and GUSD in the United States, and Terra in South Korea. In addition, we have been cooperating with MakerDAO, but we have not yet opened it to the community.

A financial management service of stable currency is actually one of the landing scenarios of our first cooperation with stable coins. Stable coins and LBA will also have another big landing scenario in the market, that is, payment. As a team with a deep background in the field of payment from Paypal, we are optimistic about the long-term development of blockchain technology in the field of payment.

Everyone can see that the layout of Facebook in the blockchain field is also through stable currency, why is it stable currency? It is because it is the best way to solve the payment problem, the payment process involves a lot of fees, LBA as a functional token, our goal is to solve all stable currency payment related fees.

All mortgage assets of CredEarn and CredBorrow are held by third-party custodians, using multi-signatures and cold wallets to protect users' assets. At the same time, Cred also provides users with encrypted digital currency insurance terms through Lockton, the world's largest private independent insurance broker.

Q9: what do you think of Open Finance? What role will Cred play in the field of open finance?

Cred CEO Lu Hua: the Open Finance we understand, in the blockchain era and today's ever-changing FinTech, is a Tech for Good concept that can help more people, anytime, anywhere, have fair and transparent access to the financial services they deserve.

The Cred team has accumulated decades of valuable experience and entrepreneurial experience in traditional financial institutions and the Internet financial industry, and deeply understands and believes in the development potential and positive impact of blockchain technology and encrypted digital assets on human society as a whole.

Adhering to the original idea of building inclusive financial services for users around the world, Cred provides a variety of innovative products based on cryptocurrency, such as CredEarn and CredBorrow. Currently, it serves users in more than 130 countries around the world, and more than 100 million users have reached strategic partners.

Personally, I agree with the view of Open Finance. What we discussed before is the two concepts of Centralized Finance and Decentralized Finance. In fact, Open Finance can connect these two concepts very well.

I don't think the two are right and wrong, but which will do more and which will do less at a particular stage of history. In my opinion, Open Finance can better explain the relationship between the two.

From Cred's own point of view, we will link our previous financial background and experience with emerging technologies such as blockchain.

Q10: domestic users may not be familiar with Cred. As domestic users, how can we participate more in Cred projects and related products?

Cred CEO Lu Hua:Cred 's products include CredEarn and CredBorrow, as well as CredX open platform for partners such as exchanges and wallets. Domestic users can choose appropriate ways to experience Cred services and come to our community to participate in discussion and feedback. For example, CredEarn products can be purchased through the official website of Uphold or through the portal specially built by Cred for TrueUSD. Domestic counterparts are also welcome to work with Cred to create a new ecosystem of blockchain financial services.

We have also recently launched a series of tutorials, including Chinese videos, to help domestic users better familiarize themselves with and use Cred products. You are welcome to follow our official Wechat account.

Thank you very much for LU HUA's wonderful sharing. Just now some friends can't help asking questions. I guess you must have a lot of questions that you want to know more about. So now, in our question session, the small partners in the group can start to ask questions, and our guests can choose 5 questions to answer. The total @ questioner of LU can reply, and the users who answer in the total selection of LU will receive 100LBA token awards provided by the Cred team. Welcome to ask questions actively.

Fans ask questions:

Q1:LBA future development plan, on what exchange?

Cred CEO Lu Hua: you have seen that the exchanges we support now include pro and okex, Bittrex, the largest exchange in the United States, Upbit, the larger stock exchange in South Korea, and Bithumb Global, which we have just launched.

Our goal is to bring maximum liquidity to LBA so that all users who hold LBA can trade LBA freely and fairly on larger exchanges.

Does Q2 LBA have a buyback plan?

Cred CEO Lu Hua: after a year of efforts, our cred project has basically reached break-even, and then in the near future, we will use part of our profits to buy back LBA, and with such a mechanism equivalent to permanent lock-in. We will do follow-up communication with you on the buyback in the community.

How is the lending rate of Q3GramCred borrow set?

Cred CEO Lu Hua: at present, Cred borrow is still aimed at a relatively large amount of mortgage loans, which are basically more than 100000 US dollars. This piece is actually based on the collateral, and according to the mortgage cycle from six months to one year, two years, and three years, this lending rate will fluctuate in a wide range.

Q4, you advertise to build Ant Financial Services Group on the blockchain. I don't know if you are as profitable as Ant Financial Services Group.

Cred CEO Lu Hua: well, we can do some analogies here. You can see that Yu'e Bao on Ant Financial Services Group belongs to financial management, and then spending money belongs to lending. This is actually a profit model, of course, as Ant Financial Services Group his biggest profit point, or Alipay. As a means of payment, the transaction fee can get an income from both the user and the merchant. This is why we say that for LBA, in fact, a larger application scenario, in addition to financial management and lending, payment and stable currency payment cooperation is a very important link, but also the direction of our future development. So these are our next profit models.

Q5, how to ensure the financial security of both lenders and lenders using Cred products?

Cred CEO Lu Hua:Cred CEO Lu Hua:Cred has been committed to ensuring the security of users' money, and has reached a strategic cooperation with the world's top cryptocurrency custodian institutions: Xapo, Bitgo, Bittrex, Uphold, Ledger and Cobo, of which Xapo is the largest Bitcoin escrow in the world.

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