Due to the overwhelming demand from the community, LumiShare and CryptoCoinsCoach (CCC) decided to hold an AMA in the CCC telegram group on January 5th.
MC, CCC’s Telegram manager, hosted this AMAwith the following guests in attendance:
· Ben Sharon (CEO & Co-Founder at LumiShare
· David Munoz (Strategic advisor at LumiShare, Ex BlackRock Executive)
Guests began by introducing themselves and providing key information about LumiShare, as well as their respective professional backgrounds.
Ben Sharon
Ben Sharon is the CEO and Co-Founder of LumiShare. Ben begins with the vision; our vision is to bring transparency and trust to the people. Our trust token is backed by three uncorrelated assets. Gold, cash, and technology. In addition, LumiShare has the support of our partner, The Royal Family of Abu Dhabi.
Lumishare is an ecosystem based on the principle of the traditional economy, specifically the USA economy prior to 1971. Therefore, developing a financial ecosystem that consists of tokenized tangible assets, such as mines, renewable energy, agriculture, and real estate. LumiShare’s trust token will be used to facilitate digital transactions between consumers, investors, and businesses. As part of management’s commitment to being 100% transparent, LumiShare introduced a completely transparent standard for the proof of gold and proof of funds.
David Munoz
David has worked in financial services for 25 years, including 10 years at Credit Suisse in global M&A. David was a founding member of a multi-strategy credit hedge fund, raised 3.1 billion, operated that business for several years, and sold it to Blackrock.
After that, David became the global head of macro and credit strategy at Blackrock. Then, for six years, David served as CEO of Deltek Global. In Belgium, David founded a digital bank called Fastbank. Currently, David serves as the CEO of Vektrust and an advisor to Ben Sharon and LumiShare.
The host asked the following questions:
- How does LumiShare management view the current market?
- How can the bear market be survived?
- In what ways does LumiShare utilize Gold, Cash, and Technology as backup assets?
- How does LumiShare’s “Proof of Gold” mechanism work?
- In what ways can advanced technologies like blockchain rely on gold?
- In addition to transparency, what are LumiShare’s core values?
- How does LumiShare’s wealth fund work?
- How does the LumiShare DAO Donation Plan work?
- What is the LumiShare marketplace all about?
- How does LumiShare’s management view CEX’s “Proof of Reserves”?
Following is a summary of what guests had to say:
Ben Sharon
Gold, Cash, and Technology as backup assets
Our trust token is backed by three uncorrelated assets: The first is gold, which we will store in a bank in Abu Dhabi in a transparent manner. Gold will be streamed live 24/7. Certificates of gold quality and quantity are provided. Our algorithms will only use the gold reserve when the market cap drops below a certain percentage. In case of downfall, it serves as a hedge. The second asset is “Cash”. We have built a recovery fund on the margins. We have big investors in the gold industry, who own mines and refineries. In case of a crisis, we will have cash on hand.
Third, we have developed algorithms including an automatic-burn mechanism using mathematicians. To stabilize the price and to raise it as per simulations. We are not a stablecoin. We believe money should give people both stability and opportunities. Because of this, we have created the new category “Trust token”. We have created a floor price that will be linked to the all-time high market cap.
LumiShare’s “Proof of Gold” mechanism
Our real gold will be kept in a bank in Abu Dhabi in full transparency. It will be broadcast 24/7. Gold certificates will be provided for quality and quantity. It’s an unconventional mechanism never seen before in digital assets.
The release of proof of reserves isn’t enough for cryptocurrencies. Crypto companies can take things a step further by incorporating our “Proof of Gold” mechanism, and can also track their crypto reserves in real-time. By doing this, individuals and investors will be able to see their assets at any time. The same way we broadcast our gold reserves live 24 hours a day to build trust. Those are our core values and vision.
In addition to transparency, what are LumiShare’s core values?
LumiShare is a next-level cryptocurrency built on trustworthiness, equality, and transparency. We have seen that many cryptocurrency projects have failed to reveal their reserves. They said they had substantial reserves, but they weren’t. The other key value is education.
Crypto has been adopted by only 4.2% of people worldwide. Through education, we can increase the adoption and adoption of blockchain instruments worldwide. LumiShare’s name means spreading light, kindness, and love. It summarizes our key values well.
LumiShare’s wealth fund
LumiShare wealth fund will receive 1% of the total token supply. With the 1% allocation, we will hire the most competent blockchain analysts to identify the most promising companies to invest in. Our community members will be able to vote with the token to decide which project LumiShare should invest in. The process will be conducted in a fully transparent manner.
LumiShare DAO Donation Plan
We believe that if you give a man a fish, he will be fed for a short time, but if you teach him how to fish, he will be fed for life. We chose seven subjects close to our hearts. Every subject will have a token that acts like crowdfunding. Not just donations, but a sustainable economy. Moreover, our community members will be able to donate and vote with the token transparently.
David Munoz
View of the current market
Firstly, let’s start with the macroeconomy, equity, crypto, FX, or the stock market. Everything is driven by the macro. There is still high inflation, and it is moving from manufacturing-driven inflation to services-based inflation, which is a much stickier inflation.
Besides that, the US job market is still very strong. There are 1.7 job vacancies per person. More jobs will be created in any of the forecasts. Banks have more deposits per consumer than ever before. Therefore, interest rates will continue to rise.
It’s not uncommon for equity markets to have consecutive down years, and we’ve had it three times in the past 100 years, but it will certainly feel that way for the next few quarters. We have seen correct valuations across all markets. Despite starting the year with a very low base, I think we’ll end it on a positive note.
Historically, crypto has been highly correlated with the Nasdaq. These businesses rely on long-term assets to justify their valuations, just like crypto in most instances. It is unclear if the correlation between Crypto and Nasdaq has dropped. It has been high, especially during times of stress. You will continue to experience uncertainty. There is an easier way out by being weaker generally. I mean the crypto market in general, not a specific project.
Additionally, there are other positives to the crypto market. Today’s crypto holders are much stronger than they were a year ago. We’ve got a much stronger long-term investor base now. As a result, the correlation between cryptos and stocks is likely to continue to fall.
Surviving the Bear market
It’s time to prioritize projects. Everything you do in business impacts your customers, so doing the right things will have a significant impact. Prioritize those things that create greatness and happiness. You’ll generate much more utility with less effort if you don’t hurt the market. By doing that, you save money and focus on your time. This way, everybody wins. Also, investors will be thrilled. You spend less money and make customers happy. You make the product matter.
In what ways can advanced technologies like blockchain rely on gold
It’s important to understand the various states of the economy when dealing with gold and inflation. It can occur in inflationary or deflationary periods. It can either be booms or busts. We have inflationary booms, deflationary booms, and busts.
There is a long period of inflation ahead of us and we don’t know if it’ll be an inflationary boom or a bust. During these periods, inflationary booms provide a reliable hedge. Governments pumped a lot of money into the economy after the pandemic, and the economy is trying to recover from supply and demand issues. Cryptocurrencies, the Nasdaq 100, and other cashflow-generating assets aren’t the only hedges. The last eight months have been marked by an inflation bust. We are heading towards less economic activity and higher inflation levels. If you invest, you will make very little money. GOLD is the most effective inflation hedge in these scenarios.
Seeing the data, I believe that individuals and companies have to liquidate assets to cover liabilities when institutions are overleveraged and people lose money. During the inflation bust, people will anticipate gold. When those liabilities roll-off, gold will be the strongest inflationary hedge.
LumiShare’s NFT marketplace
In LumiShare, we have thought about where the right utility will be derived. Our view is that everything we see will be tokenized, in some way or another. Real objects will also be tokenized. Various attempts have been made at tokenizing assets, including art and real estate.
In Ben’s view, we’ll keep moving up the value chain. We are tokenizing everything that has potential. We built an NFT marketplace around a financial ecosystem that is stable and prosperous for its community. That’s why LumiShare’s token is here. In addition to providing stability and inflation protection, the NFT marketplace also uses LumiShare’s token as a transaction token.
A second impressive aspect of this NFT marketplace is that it is very user-friendly. I have seen various iterations in the Defi space. The user experience is pretty mediocre. Ben and his team built a no-code minting process. In connection with transparency, LumiShare’s team has built a fraud prevention process that makes it easy to transact, see your assets, and manage your NFTs and creatives. Making sure all projects are properly backed up and provide real value.
LumiShare NFT marketplace targets four sectors: renewable energy assets, agriculture, gold and diamonds, and real estate.
View on CEX’s “Proof of Reserves”
Although they’re helpful, they’re not satisfying. There is only one thing we need to put on the table: if someone is determined to commit fraud, he will. If there is a fraud, you have very limited help. Independent audits, whether manual or automated, are only as good as the input. The “Proof of Reserve” is much more helpful than the transparency we had before.
It is now possible to see how genuine and well-capitalized this business is when you combine proof of reserve with proof of liability.
We are still in a world that does not run fully on the blockchain. There is still a lot of FIAT that happens within these businesses, and there is certainly fraud that can happen. It may be legal to take on legitimate off-balance sheet liabilities, but it can also turn out to be a terrible decision because of the liabilities.
Reserves are better than they were before yes, but can we see it? No definitely not.
Questions from the Public
What’s the inspiration behind LumiShare?
Ben: The inspiration for LumiShare came from failures in the last two years. That came after a lack of transparency. LumiShare wants to bring back trust in money and the crypto market specifically.
What are the benefits of holding LumiShare’s token for a long period of time?
Ben: Let’s summarize it in two words: stability and opportunity. Our unique asset-backed NFT marketplace, SRG Pay, is a fully integrated ecosystem that directly supports tokens. According to experts, the price will increase by 100% at first. LumiShare offers the perfect solution for the crypto market at the moment.
What is the competitive advantage LumiShare has?
Ben:
In the first place, LumiShare’s token is backed by three uncorrelated assets: gold, cash, and technology, all of which are fully transparent.
The second point I would like to refer to is LumiShare’s asset-backed marketplace. In more detail, we will begin by tokenizing renewable energy which will enable us to produce green and clean energy, as well as the anti-fraud system and the No-Code module.
The third advantage of LumiShare is that it is staffed by top experts in the financial technology, blockchain, and global banking industries. A few examples include David Munoz (ex-BlackRock), Dalip Tyagi (senior vice president at Polygon), and Les Male (ex-CEO of Gold Exchange Dubai). As a result, I consider these three things to be our biggest competitive advantages at the moment. We have an amazing team of more than 200 people, as well as 110 global ambassadors from 46 countries.
What is the top priority of LumiShare? Product, Security, Partnership, or token prize?
Ben: In answer to your question, I would say product. This is because a product must be secure, it must be partnered with the right company, and quality directly affects the token price.
Does LumiShare have enough funding to take this project forward?
Ben: LumiShare has enough funds. We raised $3.2 million during our pre-sale. At the pre-sale event, the $2 million investment was made public by His Excellency Ahmed Elmetwally CEO of the private office of His Highness Sheikh Muhamed bin Ahmed bin Hamdan Al Nahyan of The Royal Family of Abu Dhabi.
As a matter of fact, I am slated to speak at the World Economic Forum in front of the leading venture capital firms in the second week of January. We will begin to receive formal institutional investment in round one in the second week of January.
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