Hey everybody welcomes to this official
Global x change webinar hosted by me Shorupan I’m the CEO and co-founder of
Nvest the parent company behind global x change. And if you’re watching this
webinar it’s because you’ve been redirected here by a broker by an
exciting link or maybe you’ve just gained interest in what we’re doing here
at global xchange and you want the full picture you want to learn everything
there is to know about how this operation came to be what its currently
offering and how we can benefit you and those are the three main subjects of
this webinar that’s on the cover here I do want to do some housekeeping before I
get started this is gonna be quite a lengthy video and it’s gonna be filled
with a lot of technical jargon there’s gonna be some assumptions made that the
people that are watching this have an understanding about cryptocurrency now
you might not be an expert but some understanding about how the
cryptocurrency markets have evolved and where they stand today so if you don’t
have that basic knowledge please go to our YouTube channel and you can find
information about cryptocurrencies at a very rudimentary level and I think it’d
be really good if you watched those videos and then come back to be able to
engage with this webinar and get the most out of it so without further I do
let’s go straight into what is global exchange and in order to understand what
is global exchange it’s very important to understand how we got here what
the parent company is and where we came from. In 2017 I started a company with my best
friend Warren Carson and we co-founded a company called Nvest bank at the time
it was called Nvest Canada and we had one sole objective we wanted to bring
the cryptocurrency markets which were burgeoning in 2017 to a demographic of
customers who had hitherto been neglected by the other cryptocurrency
companies what do I mean by that all of the cryptocurrency companies that were
operating whether they were exchanges or coins or or whatever they were were
targeting Millennials they were targeting specifically 18 to 28 year old
males as they were the ideal cryptocurrency target now it’s not hard
to imagine why these are people that are highly technically sophisticated these
are people that have quick purchasing decision cycles they already kind of get
the idea of digital money and they really just wanted to get into
crypto, so that 18 to 28 year old demographic was the ideal one that’s
what everyone went after and now we’re sitting here in 2019 and not much has
changed and so we had Nvest understood this in 2017 and we built a company
called Nvest bank and essentially Nvest Bank is an online banking
software that lets you fold both crypto and fiat currencies and access different
long-term holding instruments to make your cryptocurrency journey simple now
there were other comparable banking softwares on the market but the one
thing that really distinguished us was our distribution strategy and that was
we bought or we went into a strategy of acquiring former bank branches yes
physical bank branches to be able to be retrofitted and become cryptocurrency
branches and so we started that retail strategy in alignment with our vision to
bring cryptocurrency markets to the uninitiated so that people that were
again a little bit scared a little bit weighed off that it was online would now
have a physical location just like retail banking just like they’re
accustomed to to come in and get exposed to it and so we had an online banking
software that was accompanied by our physical banking strategy we were super
lucky to launch our first branch in Toronto Canada which is where the
company is headquartered I’m at the middle of 2018 it is a fully functional
Nvest branch and it was a former TD Canada Trust and for those of you from
North America you know TD Canada Trust is one the largest banks in North
America we acquired that branch who we made it into the world’s first
cryptocurrency branch so if you go there today you can get engaged in
cryptocurrency in person you go online to nvestbank.com you can do the same
and really that was the venture that me and my co-founder cut our teeth in when
it comes to cryptocurrency and it got us a lot of notoriety heading into 2018 and
so now to take the story to the next place come 2018 the cryptocurrency
markets that boomed in 2017 started to depreciate actually frankly speaking
they started to crash and what happened was all of the great companies or
not-so-great companies that were building products started to put their
products their IP their companies there are
assets on first sale and us at nvest bank me and Warren saw an incredible
opportunity to acquire all of these distressed assets and build a really
great basket of companies that can position ourselves as a long-term
investor in the greater cryptocurrency markets and so that’s exactly what we
did we spun off Nvest Bank into its own operating venture and we launched invest
group and invest group is available at nvest.com and if you go there you’ll
see the whole portfolio of companies that makeup Nvest now we’ve invested
in incubated companies ranging in sectors ranging from exchanges and
banking which is what we specialize in to data monetization to professional
services and the blockchain to media and marketing outlets really 2018 was a
matter of investing into the infrastructure and building up the
cadence to be able to grow out the Nvest group and the Nvest companies
and that kind of the last element of our parent company that I think is important
for you guys to understand is how committed we are to building strong
technology products and and to show the commitment of that what invest did is we
Nvest it into no pun intended research and development facilities all over the
world we call these R&D centers Nvest campus and essentially what they are
they’re placed in strategic places to be able to incubate the very best
engineering talent from that from that area and to incubate the entrepreneurs
that want to use that engineering talent so I’m actually sitting in the second
part of Nvest campus which is Nvest Studios making this video
upstairs is our flagship invest campus in Bangalore India where we house over a
hundred employees ranging doing everything you can imagine in the crypto
space marketing, financial analysis, dub software development infrastructure
development security and these Nvest campuses are then outsourced to whatever
companies we want to Nvest in so we have built a really great development
pipeline to complement our investing strategy and so our flagship one is
based here in Bangalore there’s lots of coverage about that we’re building ones
right now in London in Toronto and we’re super excited to expand the Nvest
campus network as it will be the largest block training incubator in the world to
company Nvest which we’re to be a very large Holdings company
within the crypto space so that kind of gives you a background on what the
parent company has done until now um you know our most exciting venture out of
all of these is global exchange and that’s what you’re here to learn about
but it’s important to understand who we are what our cadence is and how super
long term invested we are into the cryptocurrency markets
so with that being said let’s go straight into the problem that we wanted
to solve when we set out to make global exchange so again if you’re familiar
with the cryptocurrency markets you know that the cryptocurrency markets are
likened to large price fluctuations so let’s just give a quick recap of what
we’ve experienced since 2017 at the end of 2017 the cryptocurrency market
capitalization was almost 800 billion US dollars and proceeding in 2018 that
market value started to collapse and at the lowest peak it was about 300 billion
u.s. dollars and now we’re actually in an uptick again where it’s climbing up
so if you had been just an investor into the cryptocurrency markets if you were
trying to pick the hot next coin or just hold Bitcoin you would have actually
exposed yourself to an extraordinary amount of price fluctuation and a lot of
people can’t handle that price fluctuation that’s why when I always
explain something to people in terms of the opportunity within the
cryptocurrency markets it’s actually not within holding buying or trading crypto
currencies is actually another business model within this incredible mass asset
class which in allows you as a user to profit in a greater way and that is to
participate in the facilitating of an exchange of cryptocurrency so if we can
reference one of my favorite websites in the world which is coin market Capcom
claim market capcom has over 75 million visitors every month that kind of gives
you an understanding of how many people are paying attention to the price
movement within any given cryptocurrency because that is the reason they go to
that website I go to coinmarketcap.com to actually look at something completely
different which is not the price of an individual cryptocurrency but what the
exchange is the large script currency exchanges are doing in terms of
daily volume and what is in exchange in exchanges were available on the second
page of coin market cap which shows you the total transactional volume that any
given exchange platform is facilitating on behalf of its customers remember
these exchanges they’re not crypto currencies they don’t hold crypto
currencies they don’t invest into crypto currencies they’re just facilitating
transactions for people that want to do that and if we look at the top 10
exchanges they’re easily doing over a billion two three four billion dollars a
day in daily trading volume even when the market is down in other words they
are making one for four million dollars in fees if they’re charging 0.1% maker
taker fees even when the market is tanking whether the market is tanking
going up or going sideways they’re making money by facilitating other
people’s transactions and today there are over 600 crypto currency exchanges
who have all figured this out that instead of taking bets they will allow
other people to take bets for no risk and this became the most golden goose
business model in the crypto currency space and the top exchanges finance okx
said I mean these are just massive massive platforms that were started less
than a year ago in some cases and already doing tens of billions of
dollars in trading volumes so this is the picture-perfect business model I
always like to tell my team whenever there’s a gold rush in in any asset
class whether it’s a literal gold rush like happen in the United States or as
an equities gold rush or the gold rush that’s happening in the cryptocurrency
markets today you do not want to be the people digging for gold you do not want
to be the people borrowing money building machinery what you want to do
is be the people selling shovels to the people that are coming and digging gold
they are the ones who are printing money when everyone else is digging
frantically and if you analogize that to what’s happening in the cryptocurrency
markets means let everyone else speculate on where the price of Bitcoin
is going we wanted to build platforms that allow profit in any market
cycle so now that we’ve isolated that the best business model within the
cryptocurrency market is much actually investing cryptocurrencies bus to build
the exchange platform let’s look at some of the flaws of the existing industry of
the existing exchange model and how global exchange can provide a robust
solution for that so our estimation is that the number one
problem that is faced by current cryptocurrency users who use exchanges
and will be faced in the future with ever-growing degrees of complexity is
the storage and custody of private keys in other words where is the money being
stored that’s being traded on the platform so again this is one of those
topics that will require you to have a bit of understanding on the
cryptocurrency space but I’m actually going to take some time here to address
it when you own cryptocurrencies the only thing that actually bestows upon
you the ownership of that is who is holding the private keys which are
encrypted ledger keys that allow you to prove to the blockchain that you’re
holding these assets when you’re using a centralized exchange like the ones that
I mentioned above that are making all the money you are foregoing the
ownership of your private keys to that exchange platform what that means is you
are transferring the money from your computer where it’s supposed to be to
the exchanges computer so that you can trade on the exchange this presents two
great problems to problems that are going to have dire consequences for the
cryptocurrency market so when you give up your private keys and you leave your
money on the exchange number one thing that will happen if it’s not if it
didn’t happen to already it’s just a matter of time is negligence on behalf
of the company in other words they will either shut down or there will be some
incident that forces them to shut down whether that’s a hack whether that’s
just them running off with the money whether there’s legal issues and since
they are holding all of the customers cryptocurrencies there is no legal or
technical recourse that you can have to get your money back
when you give them your private keys it is now their money you are just seeing
numbers on a screen so the company hopefully this doesn’t happen but it’s
just proven to happen so many times has the authority to leave with
all the money that’s what we would define as negligence on behalf of the
company the second issue which is even more devastating is that the exchange
platform will get hacked in other words malicious third-party
actors will penetrate the database of the exchange and take all the money and
this requires a little bit of nuanced understanding about how block chains
work for example if someone is to have a pay and take your money from the bank
you have a lot of legal recourse as to what you can do with that you can call
the bank the bank would call the counterparty bank there’s lots of
intertwined networks that can regulate that if someone hacks a cryptocurrency
exchange they are walking off with five ten fifty hundreds of millions of
dollars as it’s happened since the beginning of cryptocurrencies and
there’s nothing you or the exchange can do about it let’s look at the computer
science as to why that occurs let’s say there are 10 people in this room that
all have Bitcoin let’s say everyone has $100 of Bitcoin on their computer they
might have it on their phone they might have it on their computer now if a
hacker wants to get in and steal Bitcoin he has to go 2 through 10 encryption
schemes he has to break into ten devices and he still doesn’t know how much money
is gonna be on the other side of that encryption scheme it could be a million
dollars or it could be no money there’s no guaranteed reward for the hacker
however let’s say all ten of us then take the money and put it on an exchange
now instead of having 10 computers that have 100 dollars you have one computer
that has a thousand dollars and the hacker knows that when he gets into that
one encryption system there is a big prize on the other side we’re not
talking about 10 100 dollars 10 customers we’re talking about hundreds
of millions of dollars as I said billions of dollars traded on these
exchanges imagine for a hacker that wants to get into that how lucrative
that is since 2012 there have been over six billion dollars in theft not even
lost death for cryptocurrencies because the exchanges make it so easy for people
to get in and steal there’s no recourse for that so those two issues are the
tremendous issues facing exchanges today and
that even though the business model is so sweet they are not getting rectified
actually the reason that the exchanges don’t rectify these issues is because a
centralized business model allows them to make such great profits and it
doesn’t pay them to change this business model and we haven’t even seen what’s
gonna happen as the crypto currency markets emerges over 800 billion it goes
into the trillions of dollars these two problems will become tremendously
important to solve so 16 months ago me and my team set out to solve the problem
of custody and liquidity markets in other words who stores the
cryptocurrency and where the order books and to understand how we came to our
solution you have to look at what the industry has brought up as a solution
because all of these things I’ve told you about how cryptocurrency exchanges
work or not even things that we talked about first the leading CEOs the CEOs
have exchanges founders of exchanges the security architects that built block
chains themselves have all espoused the same claim they’ve just all taken
different approaches as to how to fix it and we at global exchange wanted to take
a novel approach as to how we can blend these incredible platforms that function
as exchanges with secure storage of cryptocurrency and make a simple to use
user interface that customers can engage with and that is the point of the global
exchange operating system now in order to identify what it is that we solve we
will go into the different products that we presented and kind of how we thought
about the operating system as a whole