Has The Bull Market Started For 2023? Richard Fety

Hi, my name is San Tito. This is CryptoKid Podcast. I'm going to be talking to you guys about blockchain technology and cryptocurrency. Welcome to CryptoKid Podcast. This is Sonny speaking. And today I have a very special guest, Mr. Richard. And he is the founder of CEO of Allfins. So Mr. Richard, why don't you give a quick presentation about how you got started in the industry and

So my background is in the financial, financial sector. I worked on Wall Street for close to 20 years, spent a good portion of that as an equity research analyst. I basically advised pension funds and other institutional investors. Which technology companies to invest into. And so I was used to having access to quality information, data analytics, and having access to Bloomberg and other capital IQ tools to

analyze, analyze trends and analyze these various assets. And when I got started in crypto, obviously none of this was really existent. It was early and basically I determined that this asset class, the digital asset class was going to be around. It's going to grow to be a large portion of the asset managers allocations over time. And that a tool or tools that would help them with

that investment decision and the entire workflow will be needed. And so that's kind of what got me started with my team of developers has to build, you know, like college Bloomberg of crypto. Obviously, that's a very aspirational. Go to become that because Bloomberg is obviously very well established over the last 30 years. But yeah, basically it's, it's a platform that gathers data. It calculates. Over 100

different analytics and has unchained data technically, and now. Dicta data news reports. Really almost one stop shop when it comes to the pre-traded. Analysis of over 3000 cryptocurrencies. But yeah, the genesis of that was around the frustration that. The data and information was very fragmented and scattered around. And I wanted to tool, build it tools for myself and others in my position to have, you know,

one single platform where they can get to that information at the timely, you know, matter. Okay, okay, sounds very interesting. Now, would you say we're going to. Going into a full market now. I think that we are actually if I think the worst is behind us, you know, last year was brutal, right? But when I look at the, the cycles of the crypto industry or Bitcoin

specifically, we've gone to three of these and they were very similar. They last about four years. You know, the bear market last about one to two years. There's typically a drawdown of 70 to 90. 90% that we've seen the price cycles and we've reached that in this cycle. Sometimes, you know, in the second half of 2022 Bitcoin was down, you know, 70 to 80%. From its

peak of 68,000. And so, but not only that, you know, that's, you know, obviously just looking at the. At the pattern of cycles repeating, but there's other, you know, reasons why. All risk assets. Not just crypto, but equities, you know, tech stocks are, I think, going to be have already sort of bounced off the bottom, you know, and the primary reason for that on the macro

level, of course, is the inflation data and the interest rates, the Fed and other central banks. When they begin to raise interest rates in late 2021, that was the end of the bull market. And, you know, they continued raising the interest rates to fight inflation throughout 2022. And that's the end of the. They just kept, you know, pressure on valuations of risk assets. And of course,

you know, compounding that in crypto, where, you know, some number of these. Rogue, you know, rogue founders and projects and a lot of them were centralized, frankly, such as FTX, Voyager, you know, cell C is block by another. That basically did not have the right risk management in place. And have folded and went bankrupt and that obviously created additional pressure on the, on the prices of

cryptocurrencies, because there were some for sellers and so on. So, but we think that that's already been absorbed. And I think that now that inflation is, is has tapered off or, you know, beginning to decline and the central banks have indicated that, that they're going to slow their interest rate increases or maybe even pause them. And then I think that's really what also contributed to the.

So with that being said, what's, what's different? So this is going. It's different with with all fans compared to other companies. There are like compared to your competitors. Sure. You know, I think one thing is like I said that we kind of we have competitors and each one of our sort of sections or content that we that we have on our platform. But no one's got

the whole whole enchilada if you will, right. We have a platform that ingest price data from 30x changes. We calculate analytics and based on that, you know, based on that, basically we have, you know, I think one of the best crypto screeners where users can can quickly screen and scan the market and find find coins that are breaking out of certain chart patterns, find coins that

are in an uptrend or have just begin their uptrend. They can find coins that have a strong uptrend or downtrend and changing trends, right. We also have an automated chart pattern recognition. So our system automatically detects if this is a, you know, trading in the in a rising wedge or a channel down and there's basically 16 of these commonly traded patterns that the system recognizes. And

we have proprietary research on coins. We have news from over 5,000 different coins. We have basically to cover the entire pre-trade analysis work. That's kind of where we really focused on a lot of platforms are focused on the trading itself, trade execution, right exchanges and so on. But really, you know, we ask our, our, our, our sells the question, that's great. I know where to buy

and sell it. But what should I be buying and selling and why? What should it be my strategy in this market? And so that's kind of where we are platform really excels release on the, like I said, the pre-trade analytics and analysis side and basically helping traders find quickly find trading ideas and really save a lot of time doing so because we surface the interesting trading

ideas right in our platform without much work for the trader to do. Okay. So what is, what is the plans for the future? Is there going to be like any news coming out, like any events that you guys are going to be dropping here shortly? Okay. Can you share? That's a good question. So, you know, we talked briefly about last year and how there's been, you

know, a lot of defaults from some of the centralized exchanges and centralized lending platforms like BlockFi and Celsius. Of course, you know, some of the investment funds folded as well. And I think that led us to the, the belief that in this market, at this time, we have a lot of different platforms that we can buy from, you know, the market. That's essentially the same way

we don't have a lot of time when it's, you know, under regulated and there's not enough oversight. Unfortunately, we cannot count on the self regulated, the industry to self regulate efficiently. And that the users who really need to learn and and take ownership of their own assets more and more. You know, so self custody with their own digital wallets and also trade through decentralized exchanges where

possible. The counter party risk, I mean, if FTX is able to fold, which was a number two or number three exchange. And how can you trust? Right. I mean, that's the industry. You know, biggest problem right now is this is the credibility. And so, so what we are launching and I've been building the last few months is a dex aggregator, which is basically like a search

engine for the best price across multiple decks decentralized exchanges. So through our plan. You'll be able to find the best price for trading across uniswap, sushi swap, pancake swap, another, you know, 20 other decentralized exchanges and trade as well and that therefore get the best execution because if for some tokens and coins, the best execution may be on sushi swap and others may be somewhere else

or a combination there often. So that's what we're launching because we do. We're launching a new to gain market share and we think that we need to contribute to that and frankly, you know, that's kind of our bet is that this will be the future for many and increasingly more more users. Of course, we also support connectivity to the existing centralize exchanges. So users can come

to our platform and connect to finance and and Bitfinex and Bitrix and so forth to see the entire portfolio in one place. But I think our focus will be really on the decentralized exchange. The centralized sort of ecosystem because I think again users will want to be increasingly more in control. So they don't have that kind of party risk. And so that's where we're also the

second thing that we're also going to be rolling out is is enhanced education. We already have an education course meant for traders that teaches them from very basics of technical analysis to more advanced techniques. And trading strategies as well as risk management strategies. But we're going to further enhance it and break it down to create a learn and earn a program out of it so that

we incentivize the users and the traders to learn. And and through, you know, our token, which we have called offense, we can also incentivize them to basically learn how to use our platform and generally learn how to trade. So that's another major initiative that we have this year. Wow, wow, that's some big stuff. We need education and that leads me to my next question. Do you

feel like there's a lack of education when it comes to trading in the crypto space? Yes, there is, but I don't think it's necessarily unique to crypto space. You know, I come from the background again of traditional finance sector and education. Is is is lacking, you know, for traders and equities as well, right? So I think it's, you know, I wouldn't sing a loud crypto as

as as the only sort of asset class that could use more education. And so, but yes, there is we get questions certainly and we help me. We are very happy to answer questions in our telegram channel, discord channel. But clearly demonstrates to me that. Q2. The itself that I'm going to go into is also actually a region where investors are often struggling with simple things, you

know, what's the limit order? What's a stop or a stop loss order? Right. These are some basic techniques for managing your risk. How to, you know, how do sort of what position size so should I have if I have or fully of five thousand questioning. My position size be two thousand dollars each well. So, you know, I think that's what I think is the limit order.

I think that's a good point. So, I think that's a good point. So, you know, I think that's a good point. So, you know, if you have a position size, I think that's a good point. So, you know, you know, how do you manage your equity value that you should be putting at risk for each trade. So, so all these are sort of basic, you know,

things that that I think a lot of the traders are not aware of that I think could make him a lot more profitable and, and confident in their trading, if they, if they take their time to learn it. And, and so we need to provide that content, obviously, in a very easily ingestible format. So, you know, there's sort of a bite size content with five, seven

million videos right now. It's an hour long sort of lessons webinar. And I get that that's kind of too long for a lot of people. So, I think we need to really break it down into, you know, shorter video segments and quizzes and incentivize people to continue to better and better. Okay. Okay. Yeah. And I'll put the links to your telegram and discord in the description.

So, people can find a way to get to you. So the idea and learn how to use the, the platform. So, what tell us about your team and who's involved, and what hats do they wear? Yeah, well, we're still, you know, small lean team. We have done a couple of See rounds and rounds. And I mentioned that only to show that we are still, you know,

in a startup phase, but we have basically myself, we have a marketing person and operations manager, who is also, you know, a bit of a commercial office or commercial sort of revenue officer. And in charge of business development and partnerships, we have four developers, a CTO. We have also a couple of research analysts who write in depth research for our platform where we actually identify certain

undervalued, under the radar coins that we think has a big potential upside as well. So, we have a research team as well. So that's gonna ask, you know, I'll add it all up maybe 10 people or so. Amazing, amazing. So, what do you see, what inspires you to, to, what gives you inspiration every day? And how do you give your team inspiration to keep pushing forward?

Well, I mean, I'm not sure if I can do it. I get excited with working on sort of the new features and making the platform just easier and easier. That's one of our kind of challenges is that we have a lot of data. And sometimes it can be overwhelming for the new user. Like, where do I start? There's all these analytics, which analytics should I be

paying attention to. So, you know, now that we have a lot of this content, we need to kind of make it easier to understand, to ingest, to learn how to use. But, you know, I mean, I'm not sure if I can do it. You know, because we're in a very uncharted territory in the crypto space in general, the users are also giving us a lot of

feedback and encouragement. And, you know, it feels like still that the community overall on crypto is so small that anyone who is in it feels somewhat connected, instantly, to the other person who has similar interests. They kind of compare it to, you know, when they're in the same place. And I had a dog and I take it out for a walk. Well, and you meet another

person walking a dog, instantly feel like, hey, we're friends, you know, the dogs are sniffing each other. And we've got to start up, strike up a conversation. Hey, what's the name of the dog? And so I feel like the, you know, the community in crypto is also still in that early stage and relatively small that everyone's very interested in helping one another and learning from another.

And so that kind of really, I always, was interested in emerging technologies when I worked on Wall Street. I used to always be interested in the small companies and those who are just emerging with something disruptive. And so my passion was always something what's new, what's on the cutting edge. I feel like, you know, at the cutting edge. process. All right, all right. So how do

we get mass adoption towards this industry? Good question. You know, I guess I hate to say this, but I think regulation will actually help in this. I used to think that it will hinder more than, than help. But unfortunately, after last year's debacles and fiasco's. I have come to the agreement that appropriate regulation will help bring back credibility and trust. And therefore adoption. Both for the,

you know, institutional investors who also need. Obviously more guidelines because they're on there are a lot of scrutiny more than anything. But also in the retail investor side. So I think that's that's going to help us. And. The user in sort of user experience. You know, I have to say that as long as you're sort of dealing with one. Layer one protocol like Ethereum. Right. And

you have your wallet and you're transacting it. It's okay. Still far from being particularly user friendly. But as soon as you need to deal with multiple layer on networks and got for bit even use bridges. Good Lord. It becomes. It becomes a test to your technical capability. So again, usability, ease of use. We're still far from the ease of use that we have in web 2.0.

Web 3.0 is not there yet. But that's going to help us. It really needs to be seamless for the users. They don't. It can't be thinking about which layer one network. A layer to network. Am I on and am I on the right one or realize and be stocons to some black hole. And I won't be able to crawl them back. You know, I'm not going

to be able to. So that scares the bj's out of me still, you know, when I do some actions on different networks. It's it's nerve wracking still. So do you think that there's already a global regulation frameworks exist are in in the making. Well, in Europe, they've put forward a proposal that looks okay. You know, basically will force. And we have a. Any provider of digital

wallet and and and custody. Anyone who's holding custody of assets to. To register and, you know, regularly regularly report and of course do their KYC AML. So that that that was proposed. It's going through some final approvals and probably want to go into effect on the 2024. Which is not far far away. And in the US, I think again, there were some proposals, particularly around stable.

For the coins. But I think I would say maybe US is a little further behind Europe right now. And I'm not quite where everything is going in Asia as opposed to. Differentries have their outside of regulatory requirements. But I guess everyone's kind of tightening up the screws on. On the market participants. There needs to be some kind of ability some reporting. Responsibilities. And so, you know,

I think it's headed in the direction that forex trading is if you if you you know spend some time in forex trading. I was at a Dubai conference. Like last year lots of forex companies at this conference and boy, they're under a lot of scrutiny and a lot of reporting requirements. Registration requirements in almost every jurisdiction that they're operating. It's tough for them and it raises,

you know, the legal costs tremendously. But at the end of the year, I think it's going to be a lot more. And today it creates a safer environment for the end users of the traders. And that's why they're able to. To. Conduct, you know, huge volumes of trading. So, I guess that's kind of what we what we have to get to, I think at some point.

Yeah, there's still a lot of work to get done. There is. Now what what are the crypto policy goals for both financial services and crypto industries. Financial you mean sort of the traditional financial area. Yes. Well, I guess. I think there's been, you know, after the 2008 2009 financial, the great financial crisis where. A lot of the US and worldwide banks were on the brink of

folding in many had folded or had to be forcibly forced to be acquired. Right. In the US, particularly. A lot of new rules were placed in in terms of capital requirements that made those institutions far more stable and and eliminate sort of the risky investments in their portfolios. So I'd say, you know, a traditional financial side. I don't, I'm not aware of sort of major new

regulatory. Regulatory proposals that I would change things. I think I think like I said, after the last financial, great financial crisis of 2008, that was quite thoroughly revamped. On the crypto side, you know, we're early, as we already mentioned, you know, we're still basically, I think, are at a point where we just kind of need to figure out which oversight agency is actually in charge of

centralized exchanges, decentralized exchanges and lending platforms, you know, because. In the US, you've got several agencies that could be overseeing them. And so frankly, they're trying to sort it out, which one should be in charge, you know, should be the. The commodity's commission or should be the SEC or another. So. We've got a lot of what to chop there to to get to that level of

regulation regulations that we need, but I'm hoping that by 2024, 25. You saw it. And work will be in place to where. And that should be sort of around the time when the bull market should be raging again, right. And this year, I think, when markets are starting and let's just like all the bull markets, they start slow gradually. And then they boil to a fevering

pitch. And I think that fevering pitch will be sometime in 2024 again. Which the regulatory framework, hopefully, will also. Help. With onboarding more retail and institutional investors. Now, my opinion with, with why the US hasn't shut down. Cryptocurrency is because. And you could correct me if I'm wrong and tell me what your feedback is like I believe that the government is going to create their own

digital asset here shortly, because if you look at what happened with Al Salvador. They're like the testers and then. So we're just I believe that they're just trying to figure out how to make this actually work. What do you think. Are you there. Hello. You know what. There's some. You're you were cutting out cutting out. So I turned off my views so that I would. Oh,

you're good. Maybe lower the the throughput necessary. So I would say, is that okay if we do it without the video. Yeah, yeah. Yeah. What anything that works. So going back to my question is. Do you think the United States hasn't shut down cryptocurrency. Because they want to create their own digital asset. I don't think that's the main reason. I think it's because they do actually

care about innovation. I think that. You know, shutting down. So I think that. You know, I think that. I think that. There is a lot of. The potential benefit. That. These decentralized platforms can bring. And so, you know, I think they're more interested in making sure. That. People don't get hurt and lose their, you know, monies. In the process. More than than actually sort of. I

don't think they see it at the moment as a threat to the US dollar. I mean, you know, there's definitely been some. Calls for. Or some concerns around stable coins. Threatening the. The status of the dollar. And if they come out and I don't rule out that they will come out with. They're centralized. You know, centralized. The government or. Or. A stable coin basically centralized. A

currency. I don't think that will change a whole lot for industry. You could actually be positive. If you have one basically call it stable coin that's. Completely backed by the government and so on. And therefore, you know, you can. Focus on all the other components of the industry and around trading and. The applications and so forth. But yeah. You know, right now, a lot of the

animations has been focused on the financial sector, right. But, but more and more when we look at NFDs and web 3.0. It's expanding into gaming. Arts collectible into, you know, sports. Social media, right. And so. That's where we're going to see more and more innovation as well as on the financial side. I think there's financial industry just seems so. Prime for disruption. And, and basically replacement

by smart contracts because a lot of this financial instruments are just. Very standard contracts essentially. And so that's where the industry began. But we're seeing a lot more now disruption happening in some of the other areas and fields that I mentioned as well. So shutting down crypto would be, you know, wrong. You know, completely. Robbing ourselves of a chance of innovate into. Some, some thinking, you

know, and create jobs, frankly, in the US. So we would yield potentially this competitive advantage to some other country. So. You're right. 100% man. 100%. Now. Now. My next question is as we come to a close, do you feel like there's anything that we haven't shared and that you want to go over. Something that you would want the public to know to encourage. Maybe something inspirational.

Maybe something that that you felt that needed to be said. Go for it. Thanks. You know. I'd say, you know, don't give up on crypto. There's there's a lot of sort of shady projects or characters, but at the same time there's. You know, one of the things that. That encourages me seeing. So many smart people from traditional fields in finance and others gaming and sports and

others are are moving and basically have. Bet their careers on. The leveraging of blockchain technology and cryptocurrencies. So I'd say I'm. Quite encouraged despite the what happened in terms of the prices last year. But even investment investments into startups in the. Space continued. I mean, the amount of money was in, you know, around $15 billion was committed by VCs to startups in web 3.0 in 2022.

Now he was down from higher year. Still, that's a lot of money in his people on us. Do. I'd say right now. It is. To be allocating something to 5% of your. To. beaten down. The last. Focus objects like. Alan. Alan. So she swap or not. So you swap a unit swap and a few others ethereum for sure needs to be part of anyone's portfolio. I

think if you create a portfolio of 2030 of these names. Even in the long term. I think we're going to do quite well, especially now that we're close to the bottom with. I think we've already bounced off at the bottom. But that's okay. I think there's a lot of upsets levels. So don't be. Don't be discouraged at what this down cycle had, you know, happened or

cost. I know a lot of people have lost money and. We must have tuned education. Invest your time into education. And learn how to take care of your own digital assets through your own visual wallets, you know, I think that's another lesson we learned last year. You got to. Be in charge of your own custody of assets. Do. I really appreciate you taking the time. To

come out on the show and I know you're a busy guy. So I would block chain technology and crypto currencies. And I honestly do wish the best with you and your in your ventures and your never's and. And. I hope I hope to see you in person here soon. I may be a cryptocurrency event. And so we get time to connect. Get some coffee, some tea

or catch a beer. Anything you want, man. Love to. Yeah. Well, thanks for having me on. Absolutely. I will let you know if I'm out there on some conference or connect and. Good luck to anyone. Hopefully 2023 will be much rosier and I think it will be here than in the last. All right, dude. Take care, Richard. Okay. Thanks. I mean, no problem. We all want

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