Meltem Demirors, CSO at CoinShares interview with Matt Bird at World Economic Forum (DAVOS)
- Need crypto products that are regulated, safe, provide liquidity and price stability
- Crypto sector requires scalability
- CoinShares developing stable, single asset Exchange Traded Note (ETN)
INTERVIEW TRANSCRIPTS: Meltem Demirors, CSO at Coinshares interview with Matt Bird
Matt Bird (Show Host, Traders Network Show): 00:00
Welcome back to the Traders Network Show. I’m Matt Bird, your host. We’re broadcasting worldwide on Equities.com and we’re here part two with Meltem Demirors. Meltem, thanks for sticking around. So you are diving into different products that you guys have over at point shares. Let’s talk a little bit about the retail applications, let’s boils down to this street a little bit. What are you guys doing helping with adoption into the digital assets face?
Meltem Demirors (CSO, CoinShares): 00:25
Sure, so I think the number one question for average retail investors is what is Bitcoin? What is a digital currency? Why should I care and how should I get exposure? Absolutely. I asked myself that. I’ve been in the crypto quote unquote industry, which really was just the Bitcoin industry when I started for five years now. And I think the fundamental question I try to answer when I think about our strategy constructing new products, launching new business lines is where is value going to be created? One. But more importantly, what people don’t talk about is where’s value going to be captured and materialized in the form of money in someone’s bank account. So it’s great for a venture firm to have paper marks, but your retail investor who has a household and children, real expenses denominated in us dollars, they want to know that they can get into an out of an asset quickly that they can reallocate as their sentence changes. And so really, I see our role, number one, let’s give them products that they can use that are regulated, number one, two that are safe, three that are constructed in a manner that gives them liquidity and price stability. And all of these features that we’ve come to expect from index funds and ETFs.
Matt Bird (Show Host, Traders Network Show): 01:34
The big fear of a lot of retail investors is that, okay, I, I, I bought a small cap stock and it doesn’t trade any volume penny stocks that you [inaudible] traits, no volume might be worth 100 million, but they traded five for five shares a day and you buy $10,000 of it and you can’t get out of it.
Meltem Demirors (CSO, CoinShares):01:50
Or you have 40% slippage on a $10,000 tray. It’s like, that’s not going to work. Right. And it’s not scalable. That’s the other issue. We have to think about. Something like that, let me know. And it’s going to be, it’s going to be terrible, but we’re in this interesting, in this interesting phase or we think about traditional market cycles where we have a boom, we have kind of a peak, which we in the crypto market hit, I think in about January of this year. Davos year was crazy. Everyone wanted to talk about crypto and ICO is everyone’s raising money. Then we had a decline and now I think we’re nearing a trough. So at the end of one market cycle and the beginning of a new one, and in this new market cycle, what I’m really focused on is we need to enable the people to have true that value that’s being created, but in a way that’s scalable.
Matt Bird (Show Host, Traders Network Show): 02:37
Yeah. Listen, we got to cut to commercial break in a minute, but can you give me your, what are the top three sectors in the digital space that you’re most bullish on right now?
Meltem Demirors (CSO, CoinShares):02:45
Yup. So I think store value money, bitcoin, Minero, C cash applications of cryptocurrency that are really money. I think Venezuela is a really interesting example and there’s a lot of interesting research being done on the ground there, which I actually cover on my podcast. So, if you Google me, I have a great podcast where you talk about this topic.
Matt Bird (Show Host, Traders Network Show): 03:03
Feel free to tell everybody about it.
Meltem Demirors (CSO, CoinShares): 03:06
Yeah, it’s called “What Grinds My Gears”. So at my friends Jill and I, she was bond trader, I was an oil trader. We talk about crypto and finance, so I think a lot of money. And then the second topic I think is really disruption of business models. So, looking at advertising in particular and the third one is really stodgy, but it’s more of a venture capital play is innovating and disrupting existing financial markets.
Matt Bird (Show Host, Traders Network Show): 03:35
All three of the great points. You’re watching the Traders Network Show; we’ll be right back after these commercial messages.