Interviewer: Hello Shin, glad to see you. I’d like to talk about the recently popular KTN project with you.
First, a project everyone is most concerned about the DAPP project called KTN, which is very popular. Its investment institutions have NetEase Japan, is that true?
Shin: That’s ture, and I am also involved.
Interviewer: Why did you invest in this product?
Shin: Because we are optimistic about the Japanese blockchain market. In fact, everyone only knows that Japan is open to blockchain, but most people do not know that the Japan Financial Services Agency has strict restrictions on blockchain transactions. This has led to the official nominal support for the development of blockchain, but under too strict supervision, the demand in the Japanese market has not been fully supplied.
Interviewer: Can you elaborate on that?
Shin: Japan has a very large market, but its entire social structure is too complicated and rigid. Previously issued exchange licenses were too strictly prohibited, and Japanese exchanges were restricted to several limited tokens. At the same time, Japanese users are very good. For us, we need a product to get these users before completely opening the exchange in Japan.
Interviewer: So you invested in KTN.
Shin: Yes. This is a comprehensive news media that starts from Japan and serving for Southeast Asia and even the global users. Compared with many other blockchain teams I have seen, the overall quality is the best, both at the product level and the team level.
In their product planning, we can see one side of its steady and steady. You can also see the breadth of its strategic landscape.
Interviewer: For example?
Shin: DAPP has been in operation for a long time before starting global fundraising, indicating that the team is very pragmatic. On the other hand, they can attract and match potential users in Japan from the integration of newsletters to the release of news, as well as subsequent virtual exchanges. And during the period of operation, from the feedback I received, the effect was very good.
Interviewer: Why did this product choose to start fundraising now?
Shin: It’s just right to make an IEO now. We also believe that IEO will be a must for all future exchanges, so we have decisively opened the IEO channel and become the first blockchain app in the world to have an airdrops section of the IEO project.
Interviewer: Why do you think IEO is an opportunity?
Shin: The whole market has not been very good recently. However, the Korea Exchange has made a good independent market through IEO, which shows that this is a new trend. The reason is very simple. From 18 to 19 years, with the arrival of the bear market, the traditional fundraising method has become extremely difficult, leading to new projects and funding both shrunk dramatically.
The continued dump of old projects has left retail investors and institutions in short supply.
In turn, there is a knock-on effect, for example, the impact on the media and the exchange is relatively large. And the arrival of IEO, like the previous ICO, has made us find a new direction.
Interviewer: What is the difference between IEO and ICO? Where is the advantage?
Shin: Although their purpose is to help projects get financing. But IEO solves many of the problems with ICO.
First, ICO is divided into many rounds, there are angel rounds, then private equity and public offerings, each round is different in price, the initial and final prices can be many times different.
This has caused the difference in the price of the token. The low price is easy to profit and is pre-shipped in the secondary market, which has suppressed the market trend and finally made the users with high prices unable to make profits, forming a chain reaction that caused the dump or even break.
In addition, after the fundraising, many projects will have to pay a separate fee when they want to list on exchange.
This increases the consumption of the project side. IEO packs two things together. There is no need for middlemen. The project side directly carries out IEO with the exchange, both saves costs and time.
Moreover, IEO is uniformly issued by the exchange, and will not go through multi-agents. Therefore, it is possible to ensure that the user’s currency is stable, and the exchange and the project side achieve mutual benefit.
Second, IEO should be the basic function of the exchange.
For example, the Nasdaq Stock Exchange, the NYSE, which are stock exchanges, but its core function is to help listed companies to raise IPOs. The secondary market after fundraising is only a part of it. The blockchain exchange actually imitates the traditional stock exchange, but in the beginning, IEO was not included.
Interviewer: So what impact will IEO have on the current exchanges a and the entire market?
Shin: I think that IEO is the finishing touch for both the exchange and the entire currency market.
This finishing touch is the censorship system. The current token market is confusing, mainly because there is no strict censorship system. The previous fundraising environment was promoted under the guidance of the agent, and the purpose of the agent is very clear, that is, making money.
For retail investors and investment institutions, it is a delusion to expect that these agents who only want to make money will help you review the project.
But the emergence of IEO has made chaotic projects a standard.
The exchange cherishes users and does not promote inferior projects to their own sticky users.
After the IEO becomes mainstream, the projects in the currency circle are expected to become much better.
Interviewer: Therefore, KTN took the lead in this section and became a pioneer.
Shine: Yes, the blockchain has undergone eight years of development, and both the product and the gameplay are almost in shape. This is one of the few demand gaps, so KTN should take this opportunity. Many people still don’t understand where the opportunity is now. This is where the gap lies.
Interviewer: So, will NetEase Japan continue to invest in projects like KTN in the future?
Shin: There are not many opportunities for the blockchain, and it is enough to catch it once. KTN may have complementary businesses in the future, and if so, we will consider adding it.
Interviewer: Thank you for your time.