Ep. 76: {Rebroadcast}: Sidechains, Stable Coins, and What’s Wrong with the ICO with Charlie Lee of Litecoin
09/06/18 • 26 min
‘There’s definitely some teams that are using [ICOs] and are able to fund their ideas better and more easily than the traditional VC way of doing things, but there’s just too many bad actors that just want a get rich quick scheme.’
Charlie Lee created Litecoin in 2011 while he was working as software engineer for Google. Litecoin is ‘the silver to Bitcoin’s gold,’ functioning as a peer-to-peer cryptocurrency that complements Bitcoin. In the long-term, Charlie sees Litecoin becoming a payment currency used at both physical and online stores, and he is currently working to promote widespread merchant adoption.
Charlie also spent four years with Coinbase, serving as the Director of Engineering for the digital currency platform. Today Charlie explains why he is not a fan of the ICO, discussing why it’s ripe for bad actors. We cover the future of cryptocurrency and the major debates in the ecosystem, including hard forks and Bitcoin Gold. Charlie shares his inspiration for dedicating his career to cryptocurrency as well as his ambitions for Litecoin. Listen in for Charlie’s insight around sidechains, stable coins, and the value of CryptoKitties.
Topics Covered
Chalie’s background
Encrypted chat startup in 1999
Created Litecoin while working for Google
Last four years at Coinbase
Charlie’s take on the rise of the ICO
Incentives not in line, receive money before product is built
Too many bad actors
Tack on token functionality as afterthought
The future of the cryptocurrency space
ICO regulations to reduce fraud
Charlie’s ambitions for Litecoin
Become payment currency (physical, online stores)
Widespread merchant adoption
Listed on exchanges
Chalie’s insight around stable coins
Crypto must be tied back to real world somehow
Governments will eventually release cryptocurrencies (i.e.: crypto-USD)
The deployment of sidechains
Litecoin is decentralized, secured by miners
Value of sidechain in smart contracts
Why Charlie is excited about Monero
Coin doing the right thing
100% private
Charlie’s take on the major debates in the ecosystem
Bitcoin Gold
Hard forks
What inspired Charlie to enter the crypto space
Bitcoin as better version of gold
Easy to transfer, store for nothing
How CryptoKitties create value
Limited supply of digital resource (scarcity)
Concern lies in scaling
Connect with Charlie
Litecoin https://litecoin.org/
Litecoin on Twitter https://twitter.com/litecoin
Charlie on Twitter https://twitter.com/SatoshiLite
Resources Mentioned
Coinbase https://www.coinbase.com/?locale=en-US
Aragon https://aragon.one/
Monero https://getmonero.org/
Connect with Boost VC
Boost VC Website https://www.boost.vc/
Boost VC on Facebook https://www.facebook.com/boostvc/
Boost VC on Twitter https://twitter.com/BoostVC
‘There’s definitely some teams that are using [ICOs] and are able to fund their ideas better and more easily than the traditional VC way of doing things, but there’s just too many bad actors that just want a get rich quick scheme.’
Charlie Lee created Litecoin in 2011 while he was working as software engineer for Google. Litecoin is ‘the silver to Bitcoin’s gold,’ functioning as a peer-to-peer cryptocurrency that complements Bitcoin. In the long-term, Charlie sees Litecoin becoming a payment currency used at both physical and online stores, and he is currently working to promote widespread merchant adoption.
Charlie also spent four years with Coinbase, serving as the Director of Engineering for the digital currency platform. Today Charlie explains why he is not a fan of the ICO, discussing why it’s ripe for bad actors. We cover the future of cryptocurrency and the major debates in the ecosystem, including hard forks and Bitcoin Gold. Charlie shares his inspiration for dedicating his career to cryptocurrency as well as his ambitions for Litecoin. Listen in for Charlie’s insight around sidechains, stable coins, and the value of CryptoKitties.
Topics Covered
Chalie’s background
Encrypted chat startup in 1999
Created Litecoin while working for Google
Last four years at Coinbase
Charlie’s take on the rise of the ICO
Incentives not in line, receive money before product is built
Too many bad actors
Tack on token functionality as afterthought
The future of the cryptocurrency space
ICO regulations to reduce fraud
Charlie’s ambitions for Litecoin
Become payment currency (physical, online stores)
Widespread merchant adoption
Listed on exchanges
Chalie’s insight around stable coins
Crypto must be tied back to real world somehow
Governments will eventually release cryptocurrencies (i.e.: crypto-USD)
The deployment of sidechains
Litecoin is decentralized, secured by miners
Value of sidechain in smart contracts
Why Charlie is excited about Monero
Coin doing the right thing
100% private
Charlie’s take on the major debates in the ecosystem
Bitcoin Gold
Hard forks
What inspired Charlie to enter the crypto space
Bitcoin as better version of gold
Easy to transfer, store for nothing
How CryptoKitties create value
Limited supply of digital resource (scarcity)
Concern lies in scaling
Connect with Charlie
Litecoin https://litecoin.org/
Litecoin on Twitter https://twitter.com/litecoin
Charlie on Twitter https://twitter.com/SatoshiLite
Resources Mentioned
Coinbase https://www.coinbase.com/?locale=en-US
Aragon https://aragon.one/
Monero https://getmonero.org/
Connect with Boost VC
Boost VC Website https://www.boost.vc/
Boost VC on Facebook https://www.facebook.com/boostvc/
Boost VC on Twitter https://twitter.com/BoostVC
Previous Episode
Ep. 75: Solving Big Problems with the Power of VR—with Morgan Mercer of Vantage Point
When problems don’t affect us directly, they are easy to ignore. But if we create a connection with the people who ARE impacted and truly understand the consequences of our own action (or inaction), that’s when we start to care. What if we leveraged the immersive experience of virtual reality to establish empathy for marginalized groups? What if VR could give people the agency to take action and solve the world’s biggest problems?
Morgan Mercer is the founder and CEO of Vantage Point, a startup that offers a cutting-edge, fully immersive sexual harassment training program experienced in virtual reality. Vantage Point’s B2B product focuses on identifying sexual harassment and assault, bystander intervention, response training, and societal stigma and bias. Prior to Vantage Point, Morgan served as the Head of Digital Marketing for the online designer consignment platform LePrix.
Today, Morgan joins us to discuss her inspiration to change the world of human resources by way of VR. She offers insight around what it’s like to be a female founder and how women can arm themselves to better navigate life as an entrepreneur. Listen in as Morgan describes the parallels between entrepreneurs and athletes and learn how VR can empower us to solve big problems with thoughtfulness and compassion.
Topics Covered
Morgan’s inspiration to transform HR
Year abroad revealed own biases, ignorance
VR has power to create connection
Why virtual reality is ideal for HR training
Form relationships and empathy
See outcome of actions
The barriers for female founders
Avoid events because only woman in room
Create environments, processes more inviting to women
How female entrepreneurs can arm themselves
Learn to negotiate, stand ground
Get comfortable in uncomfortable situations
Morgan’s insight around VC fundraising
Investors are partners, allies
Work together to get to next stage
What the world looks like if Vantage Point succeeds
More thoughtfulness and compassion
Run toward problems, empowered to act
Morgan’s moratorium on social media
Who are you living for?
How does that influence actions?
Morgan’s take on asking good questions
Inspired by friend Samier Mansur
Questions influence information uncovered
The parallels between working out and entrepreneurship
40% rule
Requires long-term commitment
Push limits to gain strength
Morgan’s definition of success
Go beyond what believe can achieve
Pursue something meaningful
Connect with Morgan:
Vantage Point https://www.tryvantagepoint.com/
Morgan on LinkedIn https://www.linkedin.com/in/morganrmercer/
Morgan on Twitter https://twitter.com/themorganmercer?lang=en
Resources:
Halogen Ventures http://halogenvc.com/
LiveSafe https://www.livesafemobile.com/
The Art of Being and Becoming by Hazrat Inayat Khan https://www.amazon.com/Being-Becoming-Hazrat-Inayat-Khan/dp/093087241X
The Alchemist by Paulo Coelho https://www.amazon.com/Alchemist-Paulo-Coelho/dp/0061122416
Evan Spiegel at Code 2018 https://www.recode.net/2018/5/30/17397120/snap-ceo-evan-spiegel-transcript-code-2018
The Little Prince Animated Film https://www.amazon.com/Little-Prince-James-Franco/dp/B01F8505M4
Connect with Boost VC:
Boost VC Website https://www.boost.vc/
Boost VC on Facebook https://www.facebook.com/boostvc/
Boost VC on Twitter https://twitter.com/BoostVC
Next Episode
Ep. 77: {Rebroadcast}: Freedom, Global Entrepreneurship and the Possibilities of Cryptocurrency with VC Tim Draper
“Venture capital, to me, is a way that we can raise money to help entrepreneurs who can go out there and do something for the world that just opens it up. I am always pushing for freedom, and I think it’s great to see venture capital be able to support entrepreneurs—wherever they are—to go out there and do something extraordinary for freedom.”
Tim Draper is the founding partner of Draper Associates as well as Draper Fischer Jurvetson (DFJ). His gift for assessing the fastest way to get a service to its users was instrumental in the success of viral communication networks like Hotmail and Skype. He has been an early investor in several wildly successful startups including Baidu, Tesla and Cruise Automation. Tim is recognized as a leading supporter of global entrepreneurship, and he was named #7 on the Forbes Midas List, #1 Most Networked Venture Capitalists by Always On, and World Entrepreneurship Forum’s 2015 ‘Entrepreneur for the World.’ In 2011, he created Draper University, a residential and online school that seeks to help talented young people meet their entrepreneurial goals.
Today Tim offers his definition of entrepreneurship and his journey from aspiring entrepreneur to venture capitalist. He shares his take on the ideal relationship between VC and founder and the sectors he is looking to invest in right now. We explore the world of cryptocurrency, discussing its potential to transform governance, how innovative VCs are trying new things with Bitcoin, and what the industry can learn from the P2P music and media revolution. Listen in to understand why Tim equates freedom with wealth and how to leverage the ripple effect of optimism.
Topics Covered
Tim’s definition of VC
Give entrepreneurs the means to ‘do something extraordinary for freedom’
Draper Venture Network is taking best practices global
Tim’s entrepreneurial evolution
VC affords opportunity to dabble
The relationship between a VC and founder
Look for a fit, VC that can bring something interesting to the table
Tim’s strengths lie in designing business models and networking
The sectors Tim is looking to invest in right now
Anything blockchain has to offer
Cryptocurrency has ability to transform real estate, insurance, banking and government
Tim’s take on how cryptocurrency will transform governance
World more elastic, flexible
Functions of government done more efficiently on blockchain
How innovative VCs are trying new things with Bitcoin
Tim was first to invest in company with cryptocurrency, use smart contract
The best advice Tim got from his VC dad
Personal connection matters
What cryptocurrency can learn from peer-to-peer music/media revolution
When status quo threatened, they will retaliate (e.g.: lawsuits, government intervention, competitive threat)
‘Technology wins all the wars’
Control vs. technological advancements
Countries relying on own currency lose out
Entrepreneurs, money go elsewhere
The ripple effect of optimism
Fear keeps people in boxes
Accomplish much more if you ‘just go’
Connect with Tim
Draper Associates http://www.draper.vc/
Draper Associates on Twitter https://twitter.com/drapervc
DFJ http://dfj.com/index.php
Draper University http://www.draperuniversity.com/
The Startup Hero on YouTube https://www.youtube.com/playlist?list=PLUrqcWVF3uelGlK-6sXGjLgKu_JlhW_3l
Tim Draper on Medium https://medium.com/@TimDraper/the-pledge-f18e12013785
Meet the Drapers https://republic.co/meet-the-drapers
Resources Mentioned
The Startup Game: Inside the Partnership between Venture Capitalists and Entrepreneurs by William H. Draper III https://www.amazon.com/Startup-Game-Partnership-Capitalists-Entrepreneurs/dp/0230339948
Bionomics: Economy as Ecosystem by Michael Rothschild https://www.amazon.com/Bionomics-Economy-Ecosystem-Michael-Rothschild/dp/0805019790
Connect with Boost VC
Boost VC Website https://www.boost.vc/
Boost VC on Facebook https://www.facebook.com/boostvc/
Boost VC on Twitter https://twitter.com/BoostVC
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