Michael: All right guys today we're in a part of Hong Kong and we're gonna talk to one of the most insightful traders that I know Charles and he sees and I get access to a lot of information that we usually don't have like a lot of private trades that's going on in Asia and in China and he's very very knowledgeable insightful in this space a side note I have no idea why but everyone lines up for food in Hong Kong it's ridiculous. ALright if you guys remember this is where all the ATM live. Got Bitcoin Ethereum and Bitcoin Cash before we go any further you probably noticed this big giant Bitcoin cash sign and that's because one of the owners of Genesis Block they're really into Bitcoin Bash but everyone at GenesisBlock they have their own opinion and also teased Charles about it too and this video is also special because I'm doing an Enjin QR-code giveaway too so the way it works is that sometime during the video you'll be a QR code popping up and if you scan it with the Enjin wallet you're gonna get a box mining ERC 1155 non-fungible token for absolutely free there'll be two QR codes in total and each of them will have 100 gifts that means they're gonna go away pretty quickly as well so you might want to get ready your Enjin wallet right now as we speak and if you guys aren't watching this live and you missed it there will be an opportunity for a very big giveaway in the next week so make sure you subscribe to this channel as well [Music] Everyone we're here with Charles now and Charles you're the head trader of Genesis blood yeah I'm seeing a lot of crazy volume that's often exchanges and off the tables yeah so can you tell me what's kind of happening in April yeah thanks again for having me last time the interview I thought it went really well actually a lot of your subscribers and viewers reached out to us.
A lot of guys came here saying that they saw the interview and then they found out about Genesis block for the first time so nice really want to say thanks and thanks for everyone who's watching nice yeah April was brutal in terms of like working hours I think on average you know I was going to bed 2 or 3 a.m. every night and you know like with the April Fool's kind of event yeah market went kind of crazy FOMO Oh like would you know it's been a while since we yeah that worked right yeah first time yeah so you know I think first time in I guess almost a year where we're seeing people chase the market nice and it's not just BTC but we saw a lot of activity in the in the altcoins and the stable coin space as well oh right right right right so so you see new players coming in and where they coming from so they're coming from are they coming from China, Korea from around Asia where's what what location is that coming yeah I don't know if it's actually new interest but I think it's revived interest right a lot of the clients that were very very I guess dormant suddenly they reach out again saying oh we'd like to send you money and please help us by whatever coin right but two very clear factors of kind of overhype is the premiums in specific countries and obviously we're very strong in China and Korea the Kimchi premium came back almost 3% for quite a while and the China premium was also very strong especially for USDT yeah China was like they wanted a high demand rate what's the reason for China want to USDT yeah I think the it's the best on-ramp right you can buy USDT through houbi or okeX but it's not directly with the exchange is actually peer-to-peer so there are these merchants that are trading large quantity and where did they get the flow again you know there are global liquidity providers that can inject that right but at the end of the day if there's a premium in China it's going somewhere and it's obviously going into the hands of retail.
So if the average retail Chinese person they want to get into crypto but because the exchanges are banned they don't have a good on-ramp directly to BTC or to ethereum they buy the USDT first yeah and then they kind of eye the market like okay exactly I don't like when's a good time to enter everything right right right now we obviously would have some craziness of USDT over the past week or so nor container generals saying there's money missing from the next slide yeah how is that impact in the market what's your view on death yeah so I mean we saw this before write it in a different kind of format but the same companies involved October of last year USD T fell to like 85 cents yeah and it's you know it's all tied together around whether or not this is actually backed and now it's pretty much a fact that we know in terms of cash it is probably like I think the number is around 70% backed and where's the rest of it if you look at like they updated their TNC the terms and conditions basically saying that it's backed 100% by cash and other securities or loans right and they change that because of this earnings right right right so it sound it seems you know we everyone knew that Bitfinex was using payment processors especially after having trouble i think they're banking in purto rico for a while now i think they're they might be with Deltek but either way it's like not a stable kind of solution yeah so we had to rely on these third parties to help process the massive amount of volume that they have we're glad that this is public now I would say the risk is more on BitFinex rather than tether BitFinex has to go bust first before we questioned USDT I think fundamentally speaking the correct trade is a short short term or long term it has to be a short because if it's a 97 cents and you're wrong then you only lose 3% right whereas you're betting on that tiny percent the tiny chance that it's going to go to zero so you know when people ask me what the right trade is yeah sure it is probably correct but it's just I just can't see it happening what's your view do you feel like cryptocurrencies right now we're gonna head towards you know a brighter future when do you think that's gonna happen what's your take on that yeah so last time we talked yeah I mentioned I'm not too bullish for 2019 not a lot of new factors to really fundamentally Drive Bitcoin or crypto market as a whole the thing I got wrong so I was short even before April Fool's and I lost a bunch of money personal money I come not really to our company but it's a good learning lesson where where you realize you have to think about the incentives of the big players and this is where I want to talk about mining bit Maine coming out with new models right summer being upcycle for mining where electricity costs actually false it kind of makes sense for a few wheels come together and just say hey we should start to build some momentum so that when we get this like when you get these new contracts for electricity running we want the maximum margin that we can get and increase in the price of currencies I think you know April a lot of the April pump could have been driven by that and if it falls then they have reason again to try and get some momentum going big players are trying to pick up these cheap breaks on the secondary markets right especially those that were like damaged with the flooding and all of that like you can pick that up for pennies on the dollar and and even though they're not you know at the top like the newest models the you know return is still there right so the the news that we saw was people buying rigs and also locking in contracts for the summer yeah interesting so that's that's a complete difference from a lot mainstream on media portrays which is like Oh China been mining mining for the eighth time now oh yeah they did recently right yeah so we're seeing the reverse of that Chinese miners picking up more of miners buying up units trying to a new electricity common contracts for cheap electricity to my back in yeah last time you're pretty bearish on a theory we talked about how the funds were still in a position to dump do you see that happening right now or what was your prospect on your theory uh I think there hasn't been enough activity to change that view and flow wise we're not seeing much going on like oh really buyers are sellers either way it's just very quiet interesting so I actually have some personal like friends who were you know investing IPOs back in the day they still sit underneath and they'll ask like what they should do with it it looks like BTC is outperforming by a lot yeah it definitely did but I don't know if it's not a life-changing amount then you just just wait like I mean the so pressure should be a decrease yet by now ray I mean the whole ico rush is over but then we see we saw the rise of the IEO Initial Exchange Offering yeah bunch of coins list of exchanges well okay got that so I use I mean it's fun right it's funny if you click and you get it big celebration you make 4x and that's great the problem is like which coins are benefiting and clearly like exchanges have you know starting with BMB Finance has been very smart to say you can only invest using BNB and that drives massive demand for the token everybody's followed like OKB Kucoin shares whatever right yeah the problem is this kind of hype is like a pump and dump basically it's not a long-term kind of fundamental trend and unfortunately BTC and ETH don't really benefit I think there's only a couple exchanges that will accept PTC so thanks for calling it straight yeah hope one of the issues here is the amount of insane amount of hype and people I think I feel like going into a certain IO with all you can research they just research okay like all right when it's gonna list okay I'm gonna I'm we're gambling this one that's the kind of the gameplay there I think I think you should keep clicking if it works right like if you the only risk you have to be considered you have to watch is uh yeah you're exposed to the exchange token itself right so if you don't get it and it dumps right after then that could be pretty ugly so just bear that in mind and then if you think it's worth it then go ahead right right right oh you say if you talked about the exchange tokens are benefiting a lot of high yields you see that continued your happening down the road um I think you know BMB it has rallied for not just ayios but because of the launch of finance chain and red X now we're seeing tokens migrated to the finance chain and I think everyone was talking about oh but this is gonna be the new Ethereum killer everyone's gonna migrate and smart contracts will be all on finance chain and so on it doesn't really work that way I think I mean it might work it from a marketing perspective like Mithril rallied sixty percent or something on the news but if you think about it like why is this even Apple to Apple Binance chain has eleven validators all selected by Binance this is not a decentralized protocol so I know he was supporting smart contracts they do have to be p2 tokens standard but those tokens that are super limited what it do is just to get can really do anything smart yeah yeah so I think the Dex is exciting not because it's decentralized but because if anyone's gonna do it right it's gonna be financed first because they have the users right and user acquisition is so expensive and so difficult we still see new exchanges arise like today right inching out saying how can we get you to trade with us and we're like well can you offer me a good position there you're gonna choose exchanges do you want they want new customers they want your customers yeah they want access to more liquidity and funds and then you're just breezing asking okay can you be 10 times better than anyone else right what's what unique features can you offer and I see any exchanges that do that I'll be really honest like in general especially for very liquid large caps we barely touch exchanges right the OTC space has changed a lot in the last six months I was there where these liquidity providers have become very very tight meaning it's actually cheaper to trade with the OTC than to trade on exchange even if think about fees so why is that so so you know if you guys aren't you to the OTC space I mean what what caused these changes what what is the difference between say an OTC and an exchange yeah so it's really about competition right so back in the day if you wanted to get a quote on 50 Bitcoin you have a spread of just say just say it was ten back in the day right and now that flows are a lot it's a lot quieter in terms of volume there's a there's a need for these big players to fight for flow and the best way to do it is to offer cheaper like better price better pricing so that means the the price they buy and the price they sell is very very close right so the margin between the buy and sell and also flows are talking about the amount of big lending right ten can eat a buyer or jump on the market all right now it's changed substantially so you an OTC deals exclusively with a lot of big players they do with large numbers they have better quotes for being able to yeah buy or sell large I just think an absolute number is small or big exchanges are definitely a big disadvantage right obviously like this kind of pricing is not available to everybody but you know from an institutions perspective or you know somebody that trades decent volume this is the environment they're in where you know like for exchanges you have to send coins first okay you can't click anything until you have money they're right in the OTC space is actually not like that where you can lock prices first and then you settle afterwards so there's a lot of flexibility sometimes credit involved and from our perspective if those are the terms and I'm comparing I'll go with like other liquidity providers any day rather than exchangers right now okay now no big question is like okay so we seal a flow that you said that developed over the OTC space of relax six months so how can we see that flow I mean is there any way to see that flow because I've been a lot of retail they were worried because we see exchange following is reported on when market cap every day but what about the OTC speech we see we hear the flow from you but then like how do we see that I think there's the big guys like I think drw or Genesis trading these guys put out quarterly reports circle right and I think you have to assume that they're telling the truth when they say oh we saw a lot of buyers in April versus you know like compared to previous ones this is a good way to gauge what's going on my cheat sheet but at the end of the day like they call it dark pools for a reason right it's thought because it's not transparent it's not visible and it's you know like the reality is it's a disadvantage for the average person now we talked about OTC trading we see that for you know what are your biggest claims for OTC trading flows mostly BTC us DT some other stable coins like packs yeah I think I think people are starting to learn they understand it's getting more liquid as a pair so when you look at BTC versus packs BTC versus us DC it's the volumes are getting decent so this brings demand for other stable coins rather than just us DTO the crypto stable plain so we saw the dye yeah made by maker down what's your for any of that uh I don't think I've ever traded dye in my entire life yeah Wow so I mean obviously it's in the news a lot you know especially because it's struggling to maintain one to one a lot of politics there we go see Theo just left but then obviously with the whole USDT FUD everyone was looking for alternatives yeah but um it's just I don't know if they have the mechanism right right this whole click you know collateralize ETH to borrow would DAI it's just creating leverage it just seems like people are using it for the wrong reason yeah so okay so you saw it so BTC /USDT is stabilized so do you see other flows and other altcoins are there yeah yeah um so you did a very good video on TT Thundercore yeah and I don't know what drove this but all of a sudden around mid-april at least you know a dozen two dozen people reached out saying can you help us find buyers and sellers right right and it was actually pretty sizable like you know naturally the spreads on these in liquid assets are a lot wider actually give us a lot more room to make money right so that was interesting something about we haven't done a lot of before maybe it's just for our desk in terms of like the lowest market cap things we trade probably goes up to LTC like coin and it's not because we don't want to it's just that's where the supply the man sits the hardest point fishing okay if you have to choose between like five points to go into the future what would you our personal thing for you five points five picks CTC BTC more BTC man it's so hard it's really hard especially in terms of the level of conviction you have between our coins I don't think I push on any other coin nearly as much as BTC it's just you just feel so comfortable why be easy it's mostly about the fact that it has a 10-year history and the mechanism is very clear in terms of why it's secure right right and of course the factor that there is no founding team or you know leading leader founder like it it's by far the most decentralized and it's just it's not easy to replicate that you can copy the code you can fork it you can you know you can make TPS higher TPS and like faster block all that like makes no difference because you're just trading off between something that's very decentralized and bring it closer to a more centralized right kind of protocol so yeah nothing nothing really grabs my attention especially after seeing the ICO crash like ice one market crash and all these first layer protocols that are basically gone it just shows like getting adoption and getting distribution of the token itself it doesn't happen overnight and it's that's really the key difference of how its distributed yeah awesome is good to know that um probably and we'll be sorry next time any guys if you have any questions for Charles as well what's happening kind of in a darker space I will hope to get some questions leave some comments down below and I'll try to bring Charles next time and we'll answer those as well thank you guys so much for watching man thanks Michael Cheers