Interview With Calvin Cheng CEO Of ABCC
Sep 18, 2018
The following transcript refers to an interview with Calvin Cheng, the CEO of digital asset exchange, ABCC. This comes after the recent live community Q&A session which took place between Cheng and the ABCC community on the 12th of September 2018.
According to ABCC:
“ABCC aims to build and nurture a blockchain-enabled digital asset platform. We endeavor to build bridges between digital asset users, developers and investors to facilitate effective information flow and value creation. We seek to help visionary digital asset investors achieve their investment objectives and assist promising blockchain project teams secure funding and gain market recognition by providing select digital assets, designing and operating innovative digital assets, and investing in and supporting blockchain projects with high growth potential. Ultimately, our goal is to promote a healthy and sustainable growth of the blockchain industry.”
With the launch of the new ABCC app, the growth of the ABCC platform has been huge. With great promise for the future, the following gives us even better insight into the mind of Cheng and the rest of the ABCC community.
With retracting markets, here’s what Cheng believes what will happen to the cryptocurrency markets:
"I think that crypto finance is here for long term, so it doesn’t really matter what changes.
In building this company, it is not that we simply followed the trend, but something that we believe in for long term. In general, any sustainable business has had this vision. It would look at the long term rather than just follow a certain business rank.”
When asked how ABCC will stand out above its competitors:
“I don’t think we are special among all those exchanges. We are just one of the similar exchanges. What distinguishes ABCC is always the team. The team is the most important.
ABCC is founded by people with extensive experience and success, technology, finance, media, as well as the government. And because the industry is given a regulator, credibility in the team is the most important. That explains why we only started in the end of April and quickly becomes one of the top exchanges in the world.”
When asked about the importance of token price stability:
“I think it is also related to the sense that, because the industry is given a regulator, the only thing that controls an exchange is the capability and credibility of the team. That is why we have adopted a model that we are sure will be a stable appreciation of price and ensures there is not going to be any abnormal trading behavior, in the same way as Bitcoin’s philosophy – a fixed total supply.”
Cheng was then asked some further questions about ABCC’s own native token.
When asked if ABCC has any measures to protect the value of their own token:
“Our token is affectionately structured. And because we have structured our token in such a way to accept the inflationary. Because a small inflationary also guides to is massive deflation. If you are not going to step in the upwards, then you are stepping back. A lot of users say they’ve seen massive pump, they also witness massive depreciation. By releasing the tokens gradually, we guarantee and make sure the price isn’t going to depreciate. We also encourage AT holder to keep AT. These make us very different from our competitors.”
Cheng continues by discussing the distinctions between cryptocurrency and blockchain technologies, Cheng states:
“Cryptocurrency and blockchain are two different things. Cryptocurrency is built on blockchain. But not all blockchains are applied to use for cryptocurrencies. Blockchain is a technological innovation whereas cryptocurrency is a financial innovation. Cryptocurrencies have a potential for the front of financial industry in terms of providing a new financial instrument for five reasons. The tokenization is the essence of the next evolution of cryptocurrencies. Cryptocurrencies will enter the mainstream of the financial world when securitization of tokens starts to happen. We still believe in the crypto finance.”
When asked about how ABCC will measure up listings for tokens in ICO phase:
“We have an internal process of evaluating ICOs. Because it’s still the very early days of our exchange and we are focusing on mature coins. There are some new coins on our exchange after a strict selection process. These have been very few at the moment. We are open for more ICOs in the future, especially after we launched Community Vote to List beginning of this month, but we will be extremely selective about the coins we will allow on our exchange.
It’s not our philosophy to try to make quick money from this. As I said before, ABCC is here for the long term.”
Security is a key issue for all new exchanges and asset trading platforms. Therefore, Cheng paid close attention in explaining how important security is within ABCC:
“It is important for ABCC to make sure that security is always one of our top priority. That is why we have hired some of the best E-payment experts in the industry to ensure the security of the exchange. Yes, for sure. We are always prepared with enough money to ensure that if we were attacked by hackers, but more importantly, we are exploring insurance against hacking.
The insurance of crypto exchange is very very new. So not many insurance companies are doing this at the moment. But we are in very serious talks with some insurance companies about getting insurance. The future of crypto exchanges would be insurance, not setting the sacrifice for compensations.”
ABCC plan to give up 80% of their trading fee’s, therefore Cheng goes on to explain just how ABCC plan to do this, yet still make money:
“We give away 80% of the trading fees, we still keep 20%. So I think your question should be asking those exchanges who gave away 100% trading fees. Like I said, we aim for a long term game, because many of us come from international industry background.”
Here’s why, according to Cheng, ABCC are happy to give up 80% of their potential profits:
“Because we want to reward our traders and give them something that allows them to stay around in the future with our exchange. So, 80% trading fee is awarded to the AT holders. AT value will increase, as long as the long-term performance of ABCC increases. We are showing our commitment and sharing the future with our users.”
Here’s what makes the ABCC business model even better than its competitors:
“First of all, any stock, any exchange, need to be flexible as to keep changing its business model. When we first launched, our business model was differentl. And as our competitors change their business models, we have to adapt to the changes, too. So this may not be our business model forever. The most important thing is that we have a team experienced enough to ensure that this business will be able to keep successful regardless of the trend. And we try to ensure the gradual increase of the AT tokens. We also encourage AT tokens holders to hold their tokens for as long as possible.”
Cheng believes that this business model is future proof, no matter what the industry throws at ABCC, therefore, in conclusion, Cheng finishes:
“We are committed to the industry. We will keep our promise. And regardless of these trembles, it is important to know we want to ensure that the AT tokens have a stake in our exchange, which means if we do well, our token holders will also do well. So, in the long run, as long as ABCC is doing well, our tokens will do well, our holders of the tokens will do well. So even if there are short-term speculative forces, the long-term health of AT token is the outside performance of the ABCC exchange. So even if our business form has to change again in the future, as long as ABCC continues to be one of the top exchanges in the world, people who hold ABCC Tokens will still benefit.”
For more information, please visit the ABCC Website.
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