Big name has made big news again.
Li Xiaolai, the repeatedly mentioned name in Chinese Bitcoin community, has once more become the highlight of blockchain community as a recording of his comments on ICO projects and blockchain development been leaked on Internet.
This is no ordinary comments, it’s recorded under private conversations, therefore there have been some very sharp and rude languages. Names mentioned in the recording include Ethereum, Ripple, NEO, Binance, Tron etc.
Here is a brief summary of this record content:
- The rise of Ethereum is simply because Chinese central bank has restricted the withdrawal of Bitcoin among exchanges. This policy has locked liquidity of Bitcoin and naturally, liquidity flowed to Ethereum. As money flows in Ethereum, ETH price has been pushed to new high constantly. The price surge has little to do with so-called community and leadership of Ethereum.
- Ripple team has long been ripped apart. Founders have sold lots of their coins. Softbank then took a look at the project and showed public support. Then Ripple got boosted again.
- Do not blindly believe in value investment. If you believe that value investment is right under every circumstance, you are meant to be mediocre.
- To make a blockchain project success, first you need to become a celebrity that can attract huge attentions and leverage those attentions properly. Second you need to build yourself a tech team.
- Either investor or opportunist, the only criterion for success is making money. You can lose money through investment and you can also make money through opportunity plays.
- Intermediary is destined to be eliminated and blockchain is designed for it. Investments used to take three months to complete and right now it takes 3 minutes through ICO. Getting listed on NYEX takes 18 months while getting listed on crypto exchanges is much quicker.
- After becoming financially free, the main drivers for Li Xiaolai are curiosity and the ambition to keep staying on top.
- Li Xiaolai has offered package services for crypto exchanges in 2013. They tried to make opening an exchange as easily as opening a blog.
- Decentralization does not mean eliminate all companies, Li thinks multiple small centers, i.e. distribution is more of a trend.
- Blockchain is just like Internet, whoever got most users wins. Users are God.
Well, most of his comments are his own speculations and his own thoughts over his career. He is, fundamentally, an opportunist and his primary goal is not to promote blockchain, but to make money from it.
So, in the perspective of an opportunist, his words can be a guide. Actually, during the whole success journey of his fortune making, Li made no concrete contributions to blockchain. All he did is seeking for seemingly promising project, buying in at a low rate, controlling the media to create hypes for the project and finally cashing out at high point. By making money from his believers and followers, it’s pyramid schemes, just in the disguise of blockchain.
What Li Xiaolai said in the record are cruel facts of current blockchain community. It reflects opportunism and bubbles. It’s undeniable that they are the force that pushed blockchain to public eyes and they made blockchain a popular tech. But they will not be the backbone of blockchain technology.
Zarc Gin is an analyst for Warp Speed Fintech, a Fintech, especially InsurTech-focused Venture Capital based in China.
Get fresh daily insights from an amazing team of Fintech thought leaders around the world. Ride the Fintech wave by reading us daily in your email.