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Alex Mashinsky, CEO and Founder of Celsius Network discusses unbanking yourself on the blockchain and the exact reason why all roads will lead to a decentralized world.
LA Blockchain Summit is hosted and produced by the Los Angeles-based blockchain venture studio, Draper Goren Holm.
Alex Mashinsky is an entrepreneur who has founded several notable technology firms in the United States. He founded Arbinet in 1996 as a commodity exchange for telecommunication companies to trade unused long-distance minutes. Mashinsky's other company, VoiceSmart, was one of the first firms to offer telecommunications switches to handle ordinary voice as well as Voice over IP call routing. Mashinsky later founded GroundLink in 2004 as a service to book an on-demand limousine and car services from a computer or smartphone. He was also the founder of Q-Wireless, which later became part of Transit Wireless. From 2014 to 2015, Mashinsky served as CEO of Novatel. He currently serves as CEO of the Celsius Network which is a CeFi lending platform operated by use of blockchain technologies. Mashinsky lives in New York City with his wife Krissy Mashinsky and 6 children.View the profile
Metallic swimsuits, Kenwood Celsius Network and I wanted to share with you our view of the world that what we think is happening in the crypto space, on the blockchain, when will the economy in general? So I let me jump into my slides and share with you my screen here. So what we've seen recently with our belief is that they all roads lead to the centralization. And then my specific experience of being one of the inventors of voice of our kind of like I've seen this movie before ride and thought about how we moving from something that is
scarce or something something that is abundant and how our money. So being managed by a few Banks basically take advantage of us. Every day is going to move to somewhere where we can take manage all the funds ourselves and earned yield and be financially independent. We call it my poor money over IP and this is how you can unbank yourself on the block game. So, unfortunate today, I'm tired, kind of me is really concentrated in this pyramid. We're less than 1% of the population control. The entire. Can I make activity on this planet and the opportunities? When they
transform that into a block, some type of activity, where, what's your page is based on your contribution to society vs. How much profit do can? Squeeze some bits of that business has been doing printing record money to come bail us out from one recession to the next from one body, to the next. We seeing that on steroids, right now, especially during the coronavirus. And really we believe that basically, if you look at the last two thousand years, you will see the one after the next different Empires. A different
economic Powers have printed their own a currency that sooner or later got the base and disappeared from the plan. Already the US dollar is unfortunately again is on its last legs and I we think that I was going to replace that it's going to be decentralized money in the form of Bitcoin. So today, you know, we think we all rich, there's over two hundred trillion dollars worth of assets out there, but behind those acid or over almost the same amount of debt. So really, all of this, captivity we talkin about it exists only because
we are a printing more and more dads and eventually, all that dad is going to come to do. And what's happening in the coronavirus is really that a lot of these machines, a lot of these businesses no longer generate the prophet necessary to carry all this dead. And that's why we going to have a major recession or depression. I'm in front of us. This is a chart of all the banks that were over a hundred billion that existed in in assets against in 1990, you can see we kind of dwindle down to four major Banks. And the interest rate, they pay look at the gray area, right? They just had their
pay you, but which now he's almost zero. Everything that again Banks, still make record profits for themselves, but you do not get to enjoy that ride in a lot of it has happened since the seventies. When we went off the gold standard, you can see the average compensation stayed flat versus. If you were in the Wall Street, a few and Tech you continue to do. Well for the replacement for, that is really a system that they can basically create Value Store value and enable you to transact outside of the banking system outside of the traditional
Financial system. And allows you to really join different type of companies that are working on different solutions on infrastructure, middleware or dabs and Celsius is one of the best performing, jobs out there if you if you check out your different wallet. So what else is focused on this? Really to move as many people as possible from the comfort zone and All your assets dollars to really be able to move to be working with known correlated assets. If it's gold or stablecoins or Bitcoin
Celsius pays interest, we were the first ones agreed that business of expect to be paying you yield on your assets and move them away. Make them basically Coppell or known correlated to the US dollar so you basically get safety and you getting yield work, for example, we pay 11 and a half percent of stablecoins, which is over Steve and a hundred times more than what JPMorgan. For example, pays you on your dollars. Also, on the transaction side Celsius, does the same transactions of the bank's do charging, you know, for you whatsoever because we're managing some of these
assets to have. We making enough money there, not to charge you Thirty or forty dollars for a wire transfer was three and a half dollars to withdraw, your money from an ATM or things like that. So we think that the entire business model has changed in and which team before waves of adoption. I call them up there. Relay race ride where we basically had their butt on being handed off from Satoshi to the anarchist. Then from the anarchists to the Libertarians, then from the Libertarians to this speculators, right? And then we thought the institutions are going to get
us to New Hyde. But all we realize this really that this is all about more people. Just like you and me joining the group the community finding utility. Like, for example, earning interest. And these are the things that we think are really differentiating. The crypto sphere of crypt, the land, from Seattle, and fried them, and they need to be secure and immutable and I think again Celsius does this better than than most are choking is over two thousand percent just in the last 12 months,
as our assets under management increased to What's 2 billion and a half dollars and we doing it for over 200,000 people worldwide. So and how much credit or how much can I make it even exists inside the network? And the same is true with Celsius right to sell token, relies on the same type of flywheel that generates more and more value, as more and more people join. And then thinking of this is Pac-Man, is slowly. Going to eat all the classes out there because they cannot generate yield.
They're going to have major issues with debt reduction, they going to have the basic of the government's going to devalue the base currencies or anyting denominated. In those currencies, going to wither away or Shrink while trip is going to be increasing in value. so, We you know what you think of us until she created trading Bitcoin. After that, we have one more of a Lucien, There Was a Serial which was an amazing development that allowed us to use Smart contract, another mechanism and and since then we've experimented with several different things like security
tokens like Libra but I'm not really big believer that the next step for Mass adoption is stable quite. So I don't be insane for several years. And again Celsius pays a hundred times more than your bank. So why you keeping your money over there, right? So while we replaced effectively, you paying 24% on your credit card to borrowing it 9% and we give 80% or 7% to the community rights to the community gets to hold most of the assets and benefit from it, that long-term social supports, 35, different acid. So you can just deposited you don't need to
do anything. And you don't need to know anything about farming or mining or faking or any of those things. You just open the wallet, your deposit, the assets, you earn, 80% of the maximum, that could be generated on these different asset. So get the flywheel is something very you need that there that we created there, which basic need more users means, more deposit, more deposits means. More yield more yield means we distribute more to the community. So it's a win-win scenario. Write down the guys lose, all the people who don't participate in the in the crystal
sphere, like the bangs. And the financial institutions are managing your assets today. Do you know we've been covered by many many different Publications and you know a lot of very very exciting Community around the the Celsius brand and I want to thank all the people already. Use us and invite all the people who haven't to try this and really unbank yourself. Move Yourself away from the traditional banking infrastructure. That is just charging the fees to something that acts in your best interest. Thanks
for having me and visit our website to learn more or download the Celsius Network on your phone.
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