Tony Sun: When will the next bull market come?

ONEROOT co-builder Tony Sun was invited to participate in Token Club live broadcast to share with you his understanding of the blockchain industry. It was broadcast on time at 8 pm on July 16th. A total of 41,000 people watched and participated in the interaction. The following is a text report of the event.

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Moderator: The current blockchain market seems rather gloomy, what do you think?

Tony Sun: Recent days have witnessed a rather large adjustment of the blockchain market. I know all of you pay much attention to it, so I will share my views on the blockchain market. I am an old blockchain user, for me, the current market is quite gloomy. On the one hand, since the beginning of the year, there have been fewer new users, and the funds for admission have been scarce. On the other hand, the quality of projects varies greatly. Quite a lot of projects in the name of blockchain do not even have technical teams, who make up the demands or scenarios in the white paper. More than 90% of them are now shit coins, whose price is manipulated manually later.

I personally oppose the intervention of currency price, and I have already pre-judgmented today’s bear market, and I have mentioned that in various activities previously. From the perspective of capital flow, the reinvestment of funds raised by the projects will be very helpful for the development of the industry. However, current project sides regard the funds as income, they get cars, houses and even yachts, but the entire industry lost its vitality. The opportunity for a sharp rebound of the currency price is rather vague in the short-term. Although there is a slight rebound in a short time, the overall market is still in the downward trend, which may last a relatively long period.

I expect that a bullish market will come by 2020. In this process, there will be countless project sides withdrawing from the market, because this is a technically driven industry after all, therefore, projects without technology will not have long-term development. You can pay due attention to the recent Bitcoin ETF, which may bring in new funds; but overall, there is no clear positive news on the technical aspect, and the overall situation is pessimistic.

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Moderator: What node do you think will represent the emergence of the bull market?

Tony Sun: The development of blockchain digital currency is phased, and the previously divided 1.0, 2.0 and 3.0 are relatively inaccurate. My point is that the first chapter of the digital currency prelude is the asset freedom brought by Bitcoin, invented by Nakamoto in 2009. The second chapter is smart contract, and through Ethereum we realized the freedom of asset issuance. And for the third chapter, we believe that the goal is to achieve the breakthrough and the healthy development of the entire industry, and to make trading freedom possible.

Looking at the current ecology, in fact, trading platforms are in the position of absolute monopoly of resources. Without proper supervision mechanism, large exchanges have formed a set of so-called rules. I believe that all of you have encountered the problem of not being able to withdraw coins, and I feel that it’s very ridiculous if the problem is caused by the upgrade of the platform system. From a technical point of view, any technical upgrade should not affect normal operation. If withdrawal loses its characteristics of freedom and convenience, it will definitely lead to credit bankruptcy, unfortunately, however, it has been taken for granted in blockchain field. Therefore, although we have realized asset freedom through Bitcoin, and realized asset issuance freedom through Ethereum, in fact, the entire industry is retrogressive, regressing to the era of monopoly and control of centralized institutions.

Although asset freedom and asset issuance freedom have been achieved through blockchain technology, once digital asset enters the exchange, it is not controlled by you. Centralized exchanges bring a lot of security risks. Almost every exchange has been hacked, bringing hidden danger, and there is hardly any exchange can get rid of it. For example, the biggest problem in the cryptocurrency market is the circulation of counterfeit currency. It is said that the market circulation of BTC is far more than 21 million. Therefore, we must achieve the freedom of asset trading and usher in the healthy development of cryptocurrency market. If it can’t be realized, all of our previous work will be in vain.

The emergence of distributed decentralized trading institutions has brought about trading freedom. The right of free trading should be returned to the community rather than the centralization of institutions. Although centralized exchanges have contributed to the value circulation, in an unregulated environment, however, absolute right lead to absolute corruption. At present, the resource monopoly of the centralized trading platform has affected the development of the whole industry, and what ONEROOT has been committed to for a year is to create a distributed decentralized trading system and return the freedom of trading to every user.

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Moderator: At present, the market is pretty gloomy. Tony Sun has introduced the current situation of the cryptocurrency market for us just now, and shared his view of the medium and long-term trend, as well as the idea and practice of decentralized transaction. Can you tell us about the specific progress in this regard?

Tony Sun: Ok, let me report to you on the progress of ONEROOT. Since August last year, we have been conducting research and development based on Ethereum decentralized exchange. The core content of the decentralized exchange is actually a decentralized transaction protocol, which should have been done by the community developers of Ethereum. Our predecessors 0x, Kyber, and Loopring have been developing protocols, but they are relatively unfriendly. So we developed R1 protocol ourselves, and now we have the first exchange, there is a PC version, and yesterday we released the APP version. We are the world’s first decentralized exchange with APP version, you are all welcomed to experience the convenience and smoothness of the product.

ONEROOT’s definition of developing the exchange is to build infrastructure for the entire industry. By using a mobile wallet, trading experience as convenient and smooth as a centralized exchange can be achieved, and security is also guaranteed. All transactions are on Ethereum and no one can take your money away, not to mention hacking. Although there’s no problem in trading experience and security, the performance of Ethereum is not yet satisfactory, for example, the transaction congestion increases the entire gas fee. However, the developer communities of Ethereum have been working hard. Once the fragmentation technology is mature, I believe that the decentralized trading experience will be pretty good. R1 protocol based on Ethereum is the first generation of product we made. Next we set out to develop a matching protocol based on NEO, EOS and ONT, which is what we have been doing in the past year.

Moderator: What is your expectation for RNT?

Tony Sun: R1 protocol based on Ethereum has been in the test phase. We encourage developing distributed decentralized exchanges, and we provide partners with a complete set of protocol and construction toolkit. At present, our work is to implement R1 protocol on the existing mainstream public chain, such as NEO, Ontology and EOS, and we will also build our own public chain.

We will move into the Asia-Pacific blockchain center soon, and we invite project parties related to digital currency transactions to settle in, such as projects doing a series of supporting projects like marketing and quantification, to cooperate with R1 protocol, and accomplish the trading ecology of digital currency based on blockchain technology.

In addition, a new generation of financial public chain based on our own technology is also under intense development. This chain is friendlier to digital currency transactions. The block browser was released at the end of April this year, and the smart contract of the blockchain itself is currently being improved, including embedded decentralized transaction protocol and various functions and interfaces.

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Moderator: Do you think that supervision will be open in the future?

Tony Sun: I think there will definitely be supervision later, but it is not easy to say to what extent it is opened. “The blockchain technology itself is good, but the digital currency is worth discussing.” I don’t think this statement is accurate. If you pay attention to the Internet field, you will find various hotspots every day, including big data, Internet of Things, AI, AR and so on, merely a gust of wind. Everyone thinks that the blockchain is also a trend, however, my point is that blockchain’s financial attribute of digital currency brings about the booming of the industry. When talking about blockchain, the word that cannot be avoided is token, and it is because of the financial property of digital currency that there is an outbreak. It can’t be denied that the chaos in the industry is also caused by a lack of supervision. As a new thing, each country has different view on what can blockchain bring and how it will develop in the future.

It takes time to understand a new thing, but all countries have begun to formulate regulations for the industry, especially the digital currency, including the US SEC. However, there is no clear policy in China at present, but I believe there will be regulations in the future. The first to be regulated might be digital currency exchanges. The use of digital currency itself is not very complicated, however, because of information asymmetry, trading platforms have caused great damage to the industry. From our perspective, we are eager to have such supervision, especially the supervision of digital currency exchanges. Yao said before that the regulation of digital currency exchanges is actually not difficult in terms of technology. We will definitely fully cooperate with the regulatory policy, and we look forward to seeing the industry becoming regulated and standardized as soon as possible.

Moderator: In the live broadcast, the audience is particularly interested in when the price will be raised. Can you talk about it?

Tony Sun: If you are familiar with the project, you may know that I am very disgusted with manipulation. If I meet your requirement and raise the price by 3 to 5 times, I know all of you will be happy and then sell out. Many people have argued with us many times in the community about this topic. We have clearly declared in the community that we will not intervene in the market by manipulation, instead, we will do our best to develop our products. In fact, developing the best product is the best market value management.

Don’t jump on the bandwagon, this is my sincere suggestion to you. In terms of the information level, the amount of funds, and the perception towards the industry, individual investors have no advantages and opportunities compared to institutional investors or teams. You may be lucky and get some money, but you will pay back double of what you earned sooner or later if you don’t leave the market timely. Therefore, I have always suggested that people who want to get in should have a basic understanding of the industry. Those who don’t have their own understanding and are merely leaded by others’ opinion can never make money. Develop the capacity for independent thinking, have some basic understanding of the industry, and try to explore your own investment method, that’s my advice to you.

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Moderator: How does the decentralized exchange ensure its purity?

Tony Sun: Every transaction of the decentralized exchange is carried out on the chain. You can see on our interface that there is an address for each transaction, which can be clicked and jump to Erasescan, so there’s no possibility of cheating.

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Moderator: Are the PC version and APP version show rooms? And how is the development of RNC?

Tony Sun: The PC and APP version Rootrex that we show now cannot be called a formal exchange, but are displayed to all future partners as show rooms for testing performance.

There will be many partners developing exchanges in the future, but not us. In addition, the development of the main network of RNC public chain was basically completed. On April 30th, the test network has already started running, and it has run more than 3 million blocks till now. The development progress of RNC currently includes the compilation of smart contract and the decentralized exchange protocol, which can be basically completed by the end of September.

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Moderator: At present, many middle age women go into the blockchain. What does their joining mean?

Tony Sun: There is a basic threshold for the blockchain. First of all, the amounts of high-quality projects are actually not available to the individual. I think we should pay attention to the long-term value, because the so-called short-term centuplicate coin is a nonsense. How to trade currency is a topic that everyone is interested in. Let me talk to you specifically.

I got into the industry in 2012, and I have accumulated some experience. I think that the first thing we should avoid is listening to the news. Information asymmetry is used in the news market for manipulation, which makes it seems difficult to make a profit in the long run. Secondly, frequent operation. Why does the price reduce when you buy in and rise when you sell out? You need to think that why can’t you keep calm and be patient. Thirdly, I think it’s not uncommon for people to make money during the bull market, instead, those who can make money during bear market is the real winner. Anyone who enters this industry is smart. Bitcoin must be held in asset allocation, this is the cornerstone of the entire industry. Do not care about the price, holding BTC is to resist risks. Other public chain tokens like ETH, EOS, ONT, etc. which are valuable in recent years also worth considering holding. Platform coins like BNB, HT and FT are also recommended, for they will have a relatively large return. There are also project tokens that have a strong technical background and are helpful to the development of the industry, like RNT, they are also valuable investment products and will have good returns in the future.

About ONEROOT

ONEROOT upholds the concept of win-win, aiming to build business infrastructure based on consensus agreements, and co-build a shared economic ecological system that is more suitable to the characteristics of the digital asset era with all parties. To be more specific, ONEROOT hopes to reach a consensus among all co-builders of digital asset ecology, co-constructing an open, peer-to-peer blockchain information data platform, as well as facilitating the full circulation of the industry resources. ONEROOT also provides information, investment, trading and liquidity solutions for the co-builders by constructing digital asset infrastructures, which facilitates more external resources to enter the industry and create a win-win, sustainable blockchain economy.

Related links:

Official website: https://www.oneroot.io

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Twitter: http://suo.im/4AkdHq

Telegram: https://t.me/OneRootProject

BiYong: https://0.plus/OneRootProject