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EthCap Q1 Results 🏆 + Webinar Recap with Sam Bankman-Fried 🎙️

Ether Capital Newsletter
Ether Capital Newsletter
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gm frens 👋
There’s no better feeling than waking up on a Friday before a long weekend.
Between webinars, panels and our Q1 report card, it was another jam-packed week, so let’s recap.
EthCap Q1 Results
On Monday, we released our financial results for the first quarter and we had a strong start to the year.
Our $1.2 million of revenue in the quarter exceeded operating expenses of $0.8 million. 💰 This is our first quarter of operating profit. 🥇
According to our CEO Brian Mosoff, this is exactly where we want to be as we enter our next phase of growth and look to pursue new opportunities in the space. 🚀
For a full breakdown of the numbers, you can view our MD&A on SEDAR.
In Conversation with Sam Bankman-Fried 🎙️
Ether Capital's CEO Brian Mosoff and FTX Founder & CEO Sam Bankman-Fried
Ether Capital's CEO Brian Mosoff and FTX Founder & CEO Sam Bankman-Fried
We had a great time talking crypto 🥳 with one of the most influential players in the industry, Sam Bankman-Fried (whom also goes by his initials, SBF).
For those of you who are unfamiliar with his work, SBF is the Founder and CEO of FTX — one of the world’s largest cryptocurrency exchanges. With a reported net worth of US$21+ billion, he also happens to be one of the wealthiest players in the space. Did we mention he’s only 30 years old? 👀
It was also important to us that we turned our discussion into a live webinar so attendees could ask questions.
Here are three parts of our conversation that we wanted to highlight:
1/ Growing up in a bear market was key
For all of you who have a serious case of FUD right now, this could be the perfect antidote. 💊
When SBF and co. started building FTX, is was during the bear market of 2018. From his perspective, this actually gave them an advantage. 😎
“We were just grinding away building [FTX], and to some extent for a little while, it only sort of mattered if other people didn’t fully believe in it,” he said.
It’s an interesting take when founding a start-up because traditionally you want there to be appetite for the product you plan to offer. But for SBF, he felt that a bear market 🐻 meant fewer distractions and that they could focus on developing the exchange, while not being pulled away by short-term market opportunities.
SBF speaks during the House Financial Services Committee hearing in Dec. 2021
SBF speaks during the House Financial Services Committee hearing in Dec. 2021
2/ What we can expect in terms of regulation
SBF is known for his bullish views on regulation. In fact, he has been speaking with policymakers in Washington 🏛️ on an ongoing basis to help educate policymakers and advocate for a proper framework.
Stablecoins will likely be first out of the gate, something SBF thinks won’t be too difficult to pull off.
“On the stablecoin front, I think that’s a really important one. I also think it’s not one of the harder ones. Relatively speaking, there are fairly straight forward ways as a regulator to tackle stablecoin registrations. I think requiring audits is a very powerful first step … The biggest piece of this, is going to be looking at exchange licensing, particularly derivatives exchange licensing. I think that’s probably going to be the most important — and most difficult — piece of this.”
SBF talked about the recent collapse of UST/LUNAa catastrophic event the industry is still very much recovering from — and where Terra ran into problems.
He also shared his outlook for Canadian regulation 🇨🇦 including some of the challenges we face north of the border.
3/ How to strike a balance between regulation and innovation ⚖️
The million-dollar question. How to properly regulate the industry without stifling innovation is one of the more difficult, and nuanced, challenges that governments face.
According to SBF, in the beginning we’ll likely see some form of anti-money laundering (AML) compliance on the on-and-off ramps between the fiat world and crypto ecosystem.
We can also expect more on-chain monitoring, which does exist through organizations like Chainalysis. SBF thinks overtime, we’re going to be faced with harder questions about what on-chain identity truly means. 🤔
A remark he made during our discussion that really resonated with us, was about financial inclusivity and fairness:
“We’re going to start to see overtime, more general impact of crypto market structure on general financial market structure. And I think this goes beyond DeFi. [The] direct equitable access that crypto has traditionally had for markets is frankly really powerful and is something I expect will start to spread to other markets. And I think it’s healthy and powerful for it to do so.”
Cryptocurrency has proven to be a financial lifeline for many individuals against the backdrop of war in Ukraine, as we recently talked about with CNBC.
In crypto, all users are able to participate on equal terms, unlike legacy banking systems where people are prioritized based on their wealth and status.
As we contemplate the future of finance, it makes sense for traditional markets to mirror crypto in some aspects and adopt a more progressive and modernized approach. 🌎
Other topics we covered
SBF also touched on his 8% stake in Robinhood, his overall investment strategy, advice for financial advisors when it comes to crypto and what’s next for his crypto empire, FTX. 💡
It was a great conversation and definitely worth checking it out. If you’re wondering whether or not the 30-year-old crypto genius sleeps, the answer is yes, but not very much! 😜
EthCap in the Spotlight 🔦
Brian Mosoff, CEO of Ether Capital, speaks with Bloor Street Capital
Brian Mosoff, CEO of Ether Capital, speaks with Bloor Street Capital
ICYMI we recently spoke with Tali Friedman at Bloor Street Capital about our company’s business strategy, institutional investors piling into the space and potential risks in the sector that keep us up at night 🙀. It was a great conversation and good overview of Ethereum and its value proposition. We highly recommend you check it out! ✅
We also wanted to share a link to our first IRL conversation of 2022 with Marcel Kasumovich of One River Asset Management. Brian Mosoff, CEO of Ether Capital, talks about how he was first introduced to cryptocurrency, shares details on Ether Capital’s growth strategy and his work as a founding member of the Canadian Web3 Council. 🇨🇦
Upcoming (Free) EthCap Events! 🗓️
Speaking of regulation, make sure you register for our discussion with Bloomberg on Wednesday, June 8th at 11:30am ET.
We’ll talk about how governments in both emerging and developed markets approach crypto regulation and what’s at stake if certain countries push away the asset class. 🌎 ⏳
On Thursday, May 26th at 2:10pm ET, Ether Capital’s CEO Brian Mosoff and Som Seif, CEO of Purpose Investments and Executive Chairman of Ether Capital, will be participating in the MoneyShow Canada Virtual Expo.
They will talk about how institutions are increasing exposure to different parts of the crypto ecosystem and how traditional investors can build a position in the asset class. Here’s the link to sign up! 🎉
Newsworthy Links & Highlights 🗞️
One of Ethereum’s core developers, Preston Van Loon, spoke at Permissionless this week and said there’s momentum behind finalizing the highly-anticipated upgrade in the next few months. “As far as we know, if everything goes to plan, August—it just makes sense,” he said. We’re planning to have Van Loon join our podcast next month, so we’ll have to ask him ourselves!
We’ll be licking our wounds from this one for a while. Business Insider spoke with three investors, who asked their names not be disclosed, on how Terra’s UST/LUNA collapse impacted their lives.
On Thursday, FTX launched a U.S. equities trading service that will accept payments in some stablecoins as well as USD. This is very much in line with what SBF told us regarding his ambitions to make FTX “a global financial powerhouse” and “direct equitable access trading venue that provides deep liquidity.”
Have Questions About Crypto? 🙋
The industry is quickly evolving and there’s a lot of information to keep up with. That’s why we want to help! 🦸
Email us your questions and we’ll respond to as many as we can. While we can’t provide investment advice, we do want to steer you in the right direction so you can be informed.
Thank you for subscribing to our weekly newsletter! We’d love to hear from you, so please don’t hesitate to reach out. 😎 🚀
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