John Willock & Manie Eagar, QuanteX | Blockchain Futurist Conference 2018


>>Live from Toronto, Canada, it’s theCUBE. Covering Blockchain
Futurist Conference 2018. Brought to you by theCUBE.>>Hello, everyone. Welcome back. This is theCUBE’s live coverage here in Toronto, for the Untraceable event. Here in the industry, it’s called Blockchain Futurist. It’s where all the industry elite are getting together here in Canada, to talk about the future of blockchain, crypto, and everything. It’s theCUBE’s specific coverage. As we continue 2018, kicking off event coverage with our CUBE brand. But right now we’ve got two great guests from Start-up, and they’re called Quantum EXchange and Bank, QuantEXchange. Manie Eagar, Executive Chairman. And, John Willock, who’s the CEO. Guys, welcome to theCUBE.>>Thank you.>>Thank you.>>So you guys got some
hard news to talk about.>>We do.>>But, you guys are
doing an exchange model, bringing something really
cool to the market.>>Yep.>>Which, we need to kind
of get this figured out. Take a minute to explain
what you guys are doing, the problem you’re solving, and then we’ll get to the news. Absolutely. So, I think the lot of people are doing exchanges. You see them coming all the time, and most of them don’t really have any specific differentiation or value add. We are not like that at all. We have spent our careers as part of most of the team, in traditional
financial services. And, we’re coming from the securities exchange business to bring the learnings from NASDAQ, the learnings from the like of that sort to the Crypto Exchange space. And, to be able to facilitate not only a regulated exchange venue, but also one that is institutional grade in terms of tools and
the client experience, as well as the trust factor with the platform itself. So, that’s really what
we’re trying to get done with the Quantum Exchange that we’re building right now.
>>And how old’s the company? How long you been around?
When do you guys start? How funded are you?
What’s happening there?>>So, I’ll refrain from discussing funding at this point. But, I will say we’ve started this year. I left the Toronto Stock Exchange specifically to pursue this in conjunction with Manny. And, we’ve been batting this idea around for the last couple of years. And, the market reached the stage in maturity and size, that we said now is the time to get going and do it. And, so far, fanfare has been fantastic. Reactions from people
in the Crypto Ecosystem, people in the Securities Ecosystem, has been equally positive.>>Yeah.>>There’s a strong desire to see something like this come to market. And, we’re very excited
to be able to launch.>>Before we get to the news, Manie, I want to ask you a question. One of the things that we’ve seen is two types of behavior. The other guy’s got to lose for me to win, and then, or both parties can win. We’re seeing trends
where people are taking a posture against regulations. Oh, they’re evil, they’re causing all the problems. They kind of don’t know
what they’re doing, kind of, they’re evolving. Maturity levels are
different based on countries. But, where the success is happening, like Gabriel with Bit. Okay, there’s collaboration. Because the regulars actually want to do a good job most cases. They just can’t get there fast enough. This is the new model. This is what people are looking at. This is the kind of solution …>>Absolutely.>>A bridge between industry, and the slow but, yet want to change regulators. Your thoughts?>>Very, very good point. The good news is we’re
all talking to each other. I think there’s dialogue at the moment, but it’s not maybe as
open as it should be. Because it’s all day one. What I bring to the community, and have for the … since I got engaged in launching the first Bitcoin ATM in the world, in Vancouver, part of that team. And, I think Anthony Bold from Bit is for an alliance. And, blockchain association in the block forum, which
we’ll announce tomorrow. ‘Cause I worked for Blockhouse. I worked for Vodafone. I was involved in the Empasa project. And, I can see and understand what does it take for people to start using technologies. I think what everybody is hoping for is this golden moment. Like when the first iPhone
arrived on the scene.>>Yeah.>>People queued around the block through the night to get ahold of that first device. We haven’t had that moment yet. For Blockchain and Crypto. We’ve had the wild enthusiasm, which is all speculation as far as most of us are concerned. But, maturity is coming, these technology if Blockchain and Cryptocurrencies want to succeed, there needs to be another converging technology with what’s already out there. The internet, your financial ecosystem, and so forth.>>Yep.>>In my view, there’ll
be a coming together. There’ll be new models altogether. Incumbents will have to pick up the pace in terms of how they go about it.>>Yeah.>>But, we see the
opportunity for ourselves, for Quantex. And the industry as a whole is where the convergence takes
place, the dialogue becomes more mature, and open, and transparent. Regulators become aligned. At the moment, we hear
of a lot of jurisdictions announcing this, announcing that. But, when you start
investigating or assessing, it’s different flavors, different cultures, different economies.>>Yeah.>>There’s the Commonwealth Block. There’s the North American Block. There’s the Asian Block. Europe is a whole different ball of wax.>>Yeah, I agree with you
and I just want to …>>So, this is where it gets interesting . That’s where we come into the boat.>>Absolutely.
>>Well, I agree with you, I just want to make a point.
During the dotcom bubble, during that internet wave, there was some over-speculation. But at the end of the day, the forcing function of reality was the growth of the online users was growing every day.>>Yeah, yeah.>>And, the demand and the commerce dollars were still real. Now, certainly there was an exuberance. Irrational, in some cases. But, it all ended up happening. I think here in this market, the forcing function is the reality that there’s demand, and there’s money, and there’s impact.>>There is now, we now know that.>>This is coming. It’s not like Doomsday. Well, it was fake. No, not really.>>No, we are still in the first inning of seeing what is actually coming out of all of this. I think last year’s
price speculation runoff obviously was set to
decline at some point. But, there has been a
long series of momentum coming out of that, where people have realized that this is something much more important and significant than what it looked like three years ago, perhaps. And, a lot of that talent is now coming to this space. Bringing, the capital,
bringing the know-how, us included, to deliver something for the next generation of platform, tools, and ecosystem to really
grow this massively. And, bring it much more to the mainstream.>>And, I think the idea of aligning with regulars, help them move faster. You mentioned adopt technology, but, still in the phase of deploying operational infrastructure. You mentioned some of the things, the projects you’ve worked on. Vodafone, that’s cellular, that’s towers, that’s infrastructure. So, I think we’re still in this hybrid model of, in parallel, capital formation, building companies, and then, just, we got to get the roads built.>>Well, and understand the posture that a lot of people are taking on. We need to decentralize, we need to open this thing up. But, at the end of the
day, the consumer votes. You and I know if we don’t have viewers, we don’t have a channel. If we don’t have users, people actually using the technology, not only investing, but actually using it. It aint going to happen. Decentralize, centralize to a hybrid. And, that’s the part that we need to open ourselves.>>Let me ask you guys a question before we get to the news. This exciting news you get to share. How do you standardize something? Because, one common thread of all these major deflection points, at least, with the major cycles I’ve lived through, has been standards.>>Absolutely. But, it’s not going to
be your grandfather’s standards.So, TCPIP was different. The OSI model is a different generation. The internet was different. Web social is different. What may happen may be different. So, but, standards play an important role. But, no one has clear
visibility yet what will be standardized, what
should be standardized. Do you guys have any thoughts on that?>>Well last year John comes in, and he’s learned the world of standards at NASDAQ, and TMX, and elsewhere.>>That’s true.>>Now, we need to bring it to this world.>>How do we scale
operational lead to get a cohesive exchange that can scale and demure value? Where do the standards focus need to be? What should the emphasis
… where does the light get shined on, and
where’s the energy go to?>>I think, you know, you
want to look at standards, think about something like this ETF debate that’s been going on. Huge speculation about
whether or not that’s coming. I think a lot of people
who are looking at that ETF debate, specifically, don’t actually understand some of the economics and the mechanisms behind the scenes. So, for example, what is a fork? When you think about
traditional securities, you got corporate actions
like a stock split or dividend. A fork is
an entirely different concept with entirely different results. Those are the sorts of
things that need to be discussed, standardized, and brought to an industry cohesion to
be able to successfully deal with some of these events as the market progresses. And, to bring some normalcy to some of this as well, especially
if you want to bring institutions to the plate. And, I think that comes
to one of the other initiatives that we’re working on … Which is the industry
body, called block forum, which we’re going to be
discussing in a moment. That can really help be that joining voice>>Hold on, hold on a
second. This is the news.>>behind everything.>>This is the news. You guys are announcing,
let’s get to the news.>>Okay.>>You’re announcing a couple things. Start with what you
were just talking about. You guys are announcing a forum. Can you explain?>>Correct, correct. So, we’re launching, officially, to the remainder of the crowd here tomorrow, block forum. Which is an industry
association that will be especially behind driving
adult thinking behind all this, putting regulation into place, discussing commonalities around policy, around how to standardize,
and how to really make all of this interoperable. And, I think that’s the key word. If you have individual pillars of, islands of activity, that’s not going to be the same as having a
cohesive global solution. And, that’s what we really want to drive.>>An exchange solution?>>Well, in our case
in Quantex, absolutely. But, an exchange in the
services we can offer is one part of the whole puzzle. There’s a whole series of
inter-connected affairs that have to work together. And, that’s what block
forum is going to drive, is this assembly of different connected parties who are all
working for the greater benefit of the Prio ecosystem.>>Who is going to be
involved in the forum? Who is the stakeholders? Who can join? Is it a membership? Is it a consortium?>>It is a membership.
There will actually be a token that will have very interesting membership related tokenomics attached that we can disclose at a later date. And, that economic alignment
between the parties who are staking effectively
their interests in the certain topics that
they want back or the certain efforts will be
a completely unique model compared to what we’ve seen in the industry today, where generally speaking, it is a committee who drives something on behalf of members. This is really fundamental
for all members, democratically from
individuals all the way up to institutions, to
be able to participate and voice their interests.>>So you will see governments as members.>>Yes, yes, absolutely.>>You will see industry leading stakeholders and practitioners. The whole idea of the
body is not to create new policy or reinvent the wheel. We’re getting policy,
we’re receiving regulation. So, how do we put this in practice? Where are the success stories? How can we show the industry as a whole? Governments across jurisdictions to align around their spacing.>>So a melting pot of people to get a conversation going.>>Right.>>To start shaping an agenda or just start talking?>>So, we’re talking to governments at premier and cabinet level. We’re talking to boardrooms of banks. We’re talking to think of your top 40 leaders in blockchain and crypto. We’re talking to all of them and engaging with them.>>And, what’s the vision of the outcome that you can envision in your mind? What is that outcome for this group? What do you hope to accomplish? What is the end result, if you can kind of assume things go in a
good way, what happens?>>I think this is a
unifying voice for leadership in the industry to
discuss what the outside, outside of crypto world
that is, and really bridge that gap between those who are within and understand natively and those who need to be brought in to be able to interact with this and really grow all of this industry.>>And, promote the role models.>>And, exactly that. Exactly that. To bring the best to the front. And, really show that there is actually serious opportunity, serious business. This is not just a series of hackers or whatever nefarious activity these people casually may think the
block chain industry is. This is something very
serious and very real. And, we want to be a voice for that.>>Awesome. And, you guys had some other news on the fundraising front.>>Industry first.>>You guys are raising
some money, you’re doing a private sale, and new
gear as much as you can, it’s pretty invested, so, I think you can promote it.>>I will say with a caveat as you say, it’s pertinent to investors only, and we have not completed our discussions with our legal counsel. Having said that, we are taking the model of a traditional securities
exchange membership, seats on an exchange,
which can be purchased, which have rights attached, which are a titled asset separately from equity of the exchange, for example, separately from a utility token as you would have seen
with many other exchanges. This is something that we feel is a very unique model. We are very excited to
be able to launch this, and come to market
first with this concept. Which again, is blending the best of the old and new. We’re taking tokenization, we’re taking a concept that have
existed in the previous markets and previous worlds, and blending them together for
something that is somewhat unique and wholly new in this application.>>Well, I hope you guys
raise a lot of money. We need more harmony
between regulating and government entities to bring the whole world together. And, certainly from the money-making standpoint, what the
liquidity and exchanges can provide as the world
starts to understand where the groove swing is and where those swim lanes are, especially with security tokens.>>You bet, you bet.
And, the success is going to be measured in ability
to scale sustainably. And, we want to demonstrate that with this model.>>We need some leadership there. So, good luck. Best of luck.>>Thank you very much.>>Thank you, thank you.>>We are here live in Toronto, Canada for the Blockchain Futurists Conference. I’m John Furrier with theCUBE. Describing the single millers, talking to the most important people,
the hottest stories. Here are the most colorful people, people traveling around the world sharing that insights with you. Stay with us for more day coverage here. The first day of two day coverage of Blockchain Futurists. We’ll be right back
after this short break.

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