CoinEx Founder Yang Haipo’s Thought-provoking Insights into the Bull Market and Public Chains
Despite the tendency of stabilization in the crypto market, the slump on May 19 came as a terrible blow to investors. Whether to keep the existing investment strategies unchanged, increasing investments, or clearing positions is worth pondering.
On June 9, 2021, Yang Haipo, founder of CoinEx, shared his valuable opinions about the status quo of the crypto market and the landscape of public chains in an exclusive interview with ChainCatcher.
Yang said, “The crypto market is still in the middle of the uptrend, gradually stabilizing and bouncing up. In particular, there is no obvious decline in the overseas market heat, the number of new entrants, and funds.” He also suggested new entrants study a wide range of cryptos instead of Bitcoin alone. “Bitcoin’s only source of value lies in faith. It is of little use except for hoarding and speculation. That means Bitcoin can easily be replaced over time.”
As the crypto market is still in its infancy, investors should base their decisions on an all-around study of cryptos instead of blindly following suit. Various cryptos, represented by Bitcoin, have developed, catalyzing the emergence of public chains. Unlike Bitcoin, Ethereum and other emerging public chains are more open to scaling solutions, and BSC has already overtaken Bitcoin in terms of usage value, the number of users, and trading volume.
“Blockchain by nature is also an Internet product, and what matters the most is the scale effect. The core competitiveness must be built on a massive user base,” suggested Yang. According to him, how to balance between scaling and decentralization has always been a major issue that determines the competitiveness of public chains, and the landscape of public chains will vary greatly.
Yang holds a different view toward the BSC theft: “It is not theft, but reasonable utilization of rules by hackers or probably the project developers themselves. The biggest problem is with the developers who have created immature rules. Instead of respecting the market and fully considering the market volatility, they only wanted to push up TVL quickly, resulting in low staking. In case of extreme market or manipulation, such DApps become vulnerable to attack.”
Drawing lessons from the past, CoinEx officially announced the launch of the testnest of CoinEx Smart Chain (CSC) on May 31, 2021, which is committed to being the infrastructure of the blockchain world. Unlike Ethereum that encounters a bottleneck in performance due to its pursuit of extreme decentralization, CSC sacrifices decentralization a bit in exchange for compatibility with Ethereum, thereby enhancing the performance and the transaction processing capacity of a block. By adopting the PoS, CSC aims to strike a balance between decentralization and efficiency. While facilitating the high performance of transactions, CSC is fully compatible with EVM. Besides, its PoS mechanism allows every user to join staking as a validator without any permission.
CSC has not only catalyzed the prosperity of the CoinEx ecosystem, but also set up a new type of underlying blockchain architecture that integrates multi-layer chain networks from the core chain to the application chain, making innovative breakthroughs in pain points such as the throughput, cross-chain collaboration, trusted data exchange, and security. As a public, open smart chain infrastructure, CSC has gathered resources, projects and talents from all aspects to carry out specialized research on fundamental key technologies, thus promoting blockchain applications in new areas.
Yang also suggested, “for new developers, we hope to create a more fair and open battlefield on CSC. Users are as important as developers, since they are the key to the prosperity of a public chain’s ecosystem.”
To this end, CoinEx will roll out a $10 million support fund right after the CSC testnet goes live to support the industrial ecosystem construction and provide outstanding DeFi projects with resources in capital, technology, and marketing. All project developers can apply for the support fund, and the promising projects will receive awards of up to $100,000. The CSC Foundation will also reward the projects in their various development stages separately.
As a smart contract chain committed to the principle of decentralization and permissionless block generation and dedicated to DeFi, CSC supports up to 101 validators, and provides developers with an efficient and low-cost on-chain environment. CSC will be an independent, novice-friendly, open and free ecosystem. “CoinEx will orient itself to the infrastructure of DeFi, and will help more projects start from scratch, develop and thrive on CSC, instead of just serving the existing projects migrated from the Ethereum ecosystem,” suggested Yang.