Today we have the huge pleasure of having Steven X Alchemy– a blockchain and cryptocurrency investor– on board! Enjoy the interview.
IKIGUIDE: Hello Steven! Can you tell us more about yourself and what you are doing?
Steven X Alchemy: Hello IKIGUIDE! Thanks for having me on board today.
I have over 20+ years experience in the executive search and recruitment industry. That has trained my instinct on assessing rare, great talent in any field.
I started my crypto and blockchain investment journey in June 2017. What a journey– It changed my life.
I dived head first into understanding blockchain and how to invest in this extremely volatile, un-regulated, risky asset class. Fortunately I made more good decisions than bad ones and by February 2018, I retired from my corporate career.
Currently I am a blockchain & crypto investor/advisor. I’m also the father of 2 human children, dog whisperer 2 fur-kids, a Labrador and a french bulldog. I love sports, good food, being around interesting positive people and doing interesting stuff.
Where and how did you get your expertise in learning how to tell good ICOs apart from shady ones?
Can you share with us three important “must-dos” in due diligence buying a coin?
What are three tips you have for our readers to tell a “shitcoin” apart from a legit coin?
I am going to answer these three questions in one hit :). I wrote a post on LinkedIn about picking ICOs. Here is a gist of it:
- Rule #1 in picking ICOs: There are no 100% guaranteed wins when investing in ICOs. What we can attempt to do is to pick more winners than losers to make sure that nett nett we are still in the black.
- Rule #2 in picking ICOs: See Rule #1
Here are some things we look out for:
- Do we like their business model? There has to be a legit or logical reason why they are tokenizing their business and putting it on the blockchain.
There are so many scam coin ICOs or poorly put together ICOs that are nothing more than just a cash grab. Don’t fall for the slick glitzy marketing videos peppered with buzz words. Study the commercial white paper.
As the ICO investor crowd matures, the good thing is we are now more savvy in picking out the lemons from the winners. Well, at least we think so.
2. Is their business model unique? If they are the 3rd or 5th of their kind in the market I lose interest very quickly.
For instance, there seems to be a lot gaming e-sports ICOs recently and the first few didn’t do well upon listing.
I have walked away from a few of these deals.
3. Management & team strength.
- Are they grade A pedigree (e.g. from reputable companies and a proven history of delivering winning projects)?
- Can the Founder/CEO shill the business/product?
- Is it better to have a charismatic leader that can communicate openly to the investors or a rock star team of techies that can deliver great products? Ideally both!
4. A buffer of safety from presale bonus or pool bonus. Without that we are expose to downside.
I have learnt from my 1st ICO experience, rather painfully, not to go in at crowdsale, when I lost 30% of my capital. Ever since then, every other ICOs I have gone in with a bonus have return profits more than losses.
5. I am clear in my head why I am investing in that specific ICO.
- Is it a flip coin with lots of FOMO or is it a HODL coin with a long tail?
- Some shitcoins with heavy FOMO are good for flipping. Whereas some coins don’t come good until they deliver their product on the mainnet, requiring 3-6 months wait.
Everyday I am approached by new ICOs looking for investment or asking me to work with them. I have the luxury to pick and choose the ones I want to work with and only support the ones I believe in.
What an exciting time to be in blockchain and crypto!
IKIGUIDE: What do you think are some of the major trends for cryptocurrency/blockchain in 2018?
Steven X Alchemy: Major trends include:
1) Regulation! Government across the world are rolling out regulations mid to late 2018 to provide a safe harbour for new investors not to be scammed. I think the first wave of regulations will cover proper conduct for crypto exchanges and ICOs.
2) The need for speed. As Bitcoin and Ethereum protocols are too slow to process the sheer volume of transactions on the blockchain, we will see the popularity and rise of the newer protocols that can deliver 100,000 tx/sec compared to the current speed of 5-10tx/sec.
Hot names in this regard are NEO, Hashgraph, Cardano, Zilliqa, EOS….etc
3) Privacy wallets. Most governments in developed countries looking for capital gains tax from crypto assets and investments.
The crypto investors who have made substantial gains in their crypto assets are also increasing worried about safety and security due to the transparency of the blockchain.
I think from these two reasons, you can figure out why privacy wallets are going to be big!
IKIGUIDE: On a parting note, do you have anything else to add?
Steven X Alchemy: My personal opinion is currently (Time of Interview: May 2018), the crypto market is going thru a consolidation phase, before going to the next level of all time highs.
I have already witnessed the vanishing of FOMO that we could rely on to occur after an ICO is listed.
Hence one of the key challenges of ICOs listing now is they will have to think of creative ways of bringing in after-listing liquidity to sustain their token price.
So, if you are investing in ICOs, do your own due diligence on the project. Support the project all the way whether the token price moons or not in the first few months.
if you picked a winner, then celebrate! If you picked a lemon, no one to blame but yourself. Caveat emptor!
What a great time to be alive and to be part of this technology tectonic shift!
Feel free to connect with Steven X Alchemy on his LinkedIn!