Interview with Dr. Cao Jing, founder of AscendEX: If the SEC wins the lawsuit, it will hit the crypto industry hard, but the crypto bull market will definitely come
SECsuedBinance，CoinbaseHow will it impact the crypto industry? What does this mean for entrepreneurs in the crypto industry? 2025Will the crypto bull market of the year arrive as scheduled? At a time when the market is going up and down and people in the crypto industry are fearful, “Comparative” interviewAscendEXoriginatorsCao JingDoctor.
Cao Jing is the pinnacle of a one-stop cryptocurrency financial service platformFounder and CEO of AscendEX. Summit AscendEX is an industry-leading digital currency trading platform that provides efficient investment, trading and financial management solutions for users around the world. Cao Jing founded the quantitative trading fund GermanyDelpha Capital Management (Delpha Capital Management) mergerServed as Chief Investment Officer. Previously, George Cao Jing worked in the New York and London divisions of Barclays Capital (Barclays Capital), respectively, as the Director of Quantitative Investment, and was responsible for quantitative trading of stocks and index products in the US, European and Asian markets.
Here's a transcript of the interview:
Comparative note: The SEC has sued Binance and Coinbase, and both companies are facing charges of listing unregistered securities. The SEC classified 19 tokens as securities. If the SEC wins, how will it affect the crypto industry?
Cao Jing: Gensler says cryptoRegistering and registering coins according to the method of securities requires a lot of work, but it is not impossible. I thinkFTXAfter the thunderstorm,The SEC made up its mind要Encrypt the whole thingThe money market is in complianceGo in the direction. Of course, this is what they've been thinking about for a long time, but there have always been debates until now; in the end, follow the instructionsSEC还是CFTC。Well, it seems like this time they have basically made up their mind to get it from the securities side, so do they have to follow this path? I think in addition to some digital currencies, the remaining cryptocurrencies may have to follow the path of securities if American users want to trade them.
Comparative:That isSaid it was an exchange similar to Wall Street that the SEC would be happy to see,brokerage,A separate path for clearing agencies?
Cao Jing:However, the current difficulty is that the entire system is not sound and can be doneThere is a portion of what has been cleared and keptIn fact, there are relatively few trading platforms that can be used as a brokerage firm, and then there are relatively few currencies, which is to say I think that is ifSECA successful lawsuit will curb cryptocurrency activity in the US for a long time to come.
Comparative:If anything is listed on the exchange in the future, they will be more cautious, and it is even possible that future projects will all be securities, then for these entrepreneurs，Is the impact on the entire industry even greater?
Cao Jing:What we have seen is that many projects in the US are unwilling to continue operating，Either they want to find buyers or just stop operating。These projects have actually raised quite a bit of capital before. If they stop operating or discontinue operations at this point, the funds invested in these projects will suffer huge losses, which in turn will prevent more new money from entering the industry.As long as your project is good enough to start this industry, it's very easy to finance and go up in coins. supposingAfter defining these projects as securities this time, what is the difference between American entrepreneurs and traditional start-ups and listings in the traditional financial industry？Using securities the same way is probably even more troublesome.That entrepreneurWhy are you doing this? Second, for funds that invest in these projects, there will be liquidity problems. If I invest in your project and you don't go public, you may or may not be eligible币If so, how do I quit? The reason for this is that funds are unwilling to invest, entrepreneurs are unable to receive capital investment, and are unwilling to do it. Anyway, it will have a big impact on the entire American ecosystem.
Comparative:What does this mean for your exchange?
Cao Jing:There should be no direct impact on us because we don't accept US users, but the indirect impact is huge。Because everyone knows that American users are the best quality users, whether it's the money they trade,orThis belief in cryptocurrencies is fine, beforeHadAccording to the survey, 30% of American adults own cryptocurrencies, so once they are not that easy to trade, they may lose some of their liquidity from the market in the short term, then it will let币The bear market in the circle is getting longer. This is a result we can anticipate in the short term, and then it will make institutional investors more hesitant to enter this market.
Comparative: The quadrennial bull market is 2025Will the year come again?
Cao Jing:Institutional investors, especially US institutional investors, inFTXAfter this incident happened, they either went bankrupt or stopped additional investment，Evacuate slowly.There is also a possibility that the future bull market will be less strong. But the bull market is goodWill definitely come because firstFederal ReserveThere's not much room for interest rate hikes. Once interest rates are cutThere will beLiquidity overflows, and a lot of new money will enter the industry。The second one isBitcoinThe halving is indeed a huge benefit. Well, thirdly, I think that after the Chinese and Asian economies recover, there will also be more money to enter this industry.
Comparative: CoinbaseWhat kind of consequences does it face with Binance?
Cao Jing: Actually, it's right COinbaseThe lawsuit is fine; it is estimated that in the end, the fine will be settled. Binance US is likely to shut down. But coinsAn itself doesn't want to operate in the US; the cost of compliance is too high。Then it's not a big problem. And against the coinIn fact, the amount of money an lawsuit is not that big; it is probably more than 500 million US dollars.币Ann is totally affordable, but the key question is rightBinanceInternational non-USaffairesHow big is the impact? Wouldn't the second most serious one be rightZhao Changpeng本人有Criminal charges, if that were the case, were also quite serious.
Comparative:supposingSECwinning the case,COinbaseWill it change its business model?
Cao Jing: Coinbase won't change its business model,butWill limitThe number of coins listed. coinBase became a little aggressive for a while last year, adding many currencies. If the SECAfter winning the lawsuit,Coinbase will be renewedMeasure someDoes the currency matchSECDefinition of non-securities。They may delist certain currencies if they feel it is risky.
Comparative: YesWill not affectCOinbaseIt's both an exchange, and then at the same timebrokerage和Clearing agencythis pattern?COinbaseIs it possible they'll be asked to split it?
Cao Jing:Shouldn't affect. I thinkCOinbase should be thereMade by separate entities.It should all have a complete infrastructure,Even if notcomplete,anewIt's also very easy to do. Since there were still quite a few providers of basic service facilities in the US, I really need to find oneTrusteeship or clearing agencyIf so, you can also find it; this isn't a particularly big problem。If you lookCoIn the case of the inbase quarterly report, its main revenue still comes fromTransaction fees, so its business model should not change。However, operating revenue will drop drastically, and overall operating costs willIf it rises, there will be moreRegulatory requirements。Second, the number of currencies it can support will decrease, and the trading volume will be affected. Also, if institutions and retail investors are unwilling to enter this market, then the overall profitThey will all drop.
Comparative:precedingThe crypto industry keeps saying it's thirstyIf they want compliance, they all want clear supervision to promote development, like this oneSECDoes this kind of behavior fall within this category?
Cao Jing:Embracing compliance is for every company to look at the market conditions at the time。During a bull market, every company's profits are very high, so what people are probably most concerned about is the issue of risk control. What should and should not be doneIf it's clear,That would cost time to do this and then concentrate on growing the business, that's for sureYes, it was acceptedWelcome.Well, in the case of a bear market, everyone's profits are very thin, survival is difficult, and compliance is important再If it is suppressed, it will cause many small and medium-sized enterprises to not survive。This situation will lead to a reshuffle of the industry.
Comparative:Cryptocurrency has already been banned in China, and now the US is also facing increasing regulatory pressure, when the world's two largest economies are dealing with cryptocurrenciesundertakenA severe blow, do you thinkThis industryWill it still be able to thrive as much as before?
Cao Jing:I think regulationIt is cyclical.After the 2008 financial crisis, when the US regulators supervised financial institutions, you'll find that the strictest was 0809 versus 10, then slowly changed the government and the economy improved, and it wouldrelaxing. So I'm not that worried.
I think regulations have been suddenly tightened this time; indeedThe SEC is rightFTXA reaction to the incident。Indeed, it is necessary to tighten up and rectify this industry. After the general election, after the government changes, it will be two yearsIt's possibleIt will relax slowly。Well, even though China is on the mainlandForbiddenHowever, they have opened another one on the Hong Kong side, rightThe crypto industryThe attitude is also quite delicate, so I can't say it's completeForbidden。
Comparative: United StatesCurrent regulatory pressureenlarge,Hong Kong is once again making a big fervent attempt to become an AsianWeb3ganglion，Is the SEC's actionBecome for Hong KongWeb3 The center has a driving effect?
Cao Jing:I find it difficult to evaluate in the shorthongkongWhat are the real benefits for the blockchain industry as a whole, because Hong Kong itself has a relatively small customer base and a relatively small talent pool.
The reason why this Hong Kong license makes everyone so excited is because of the Shanghai-Hong Kong Stock Connect，Is it possible for domestic institutions or retail investors to have certain legal channels to trade这Yes, everyone is more interested，Because after all, Hong Kong itself developed based on the Chinese market.There are still a lot of details that aren't clear.
Comparative:Is Bitcoin the only safe cryptocurrency after the SEC lawsuit?
Cao Jing:The safest is definitely Bitcoin.EthereumMaybe it's also safer. If Ethereum is defined as a security,It will affect the Bitcoin and Ethereum holdings of many US institutions,Short-term meetingIt puts selling pressure on prices. It's actually fine for the long term。
Comparative:I noticed that you also have experience investing in the field of AI, nowCHatGDP is also so popular. In '18, we all saidBlockchain is the next frontier. Now let's see if AI is the next frontier?
Cao Jing:I think every timeThere will be a new wave of hot spots in 5 years。Before mobile internet, then new energy, then smart cars, then blockchain big data, it was difficult to predict where the next wave would be。
Comparative:In the year 21,You have8800The 10,000 US dollar cryptocurrency wasHackers stole it,You later gave it back to the customer.What kind of problem does this reveal?
Cao Jing:At that time, the whole business developed very well，When it advances by leaps and bounds, the entire system just can't keep upThat's it. Actually, we were very confused back thenDo you want to seize this market share quickly and make the company bigger?Or shouldCalm down to stop business development, perfectSelf safetyfacilities. These two directions are always competingsource，So I did get a hacker to catch one during that timeloopholes. Thinking about the pain, we also spent a lot of resources and timeSecurity issues have been perfected,Includes a variety of compliances的systemsand process.We now host ourselves externally and don't care about wallets。
Comparative:The time to develop is to rush forward; it's hard to haveMore energyLet's do the basic settings. Actually, I think the whole币The industry is probably all like this. This is an industry that has grown in a particularly barbaric way. Everyone is rushing forward, and then it may now be hit.是It's time to lay the groundwork.
Cao Jing:It's not just the coin industry，This is also the case when internet companies are expanding like crazy. You don't dare to stop, because when you stop, your market share may be taken over by others。So when the infrastructure in the back isn't enough, hold on，actually这It's always an entrepreneur's conflict.
Author: BitPushNews Susan Feng
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