Written by: Wu Shuo Blockchain
This interview focused on the career path of Xinhuo Technology's new CEO, Qiye (Weng Xiaoqi), his assessment of regulatory compliance trends in the crypto industry, Xinhuo's next-stage strategy (private banking-grade digital asset stewardship for high-net-worth clients and a dedicated US stock treasury strategy), and his observations on the current market cycle and the shift in pricing power. Key points included: the integration of regulatory compliance with traditional finance is considered a long-term priority; Xinhuo Technology's plan to target high-net-worth clients with high-reach, full-chain services; and plans to establish a large-scale dedicated team to participate in the US stock market "treasury company (DAT)" trend.
Disclaimer: The content of this article only represents the personal views of the interviewees, does not represent the views of Wu Shuo, and does not endorse any tokens. Wu Shuo has no interest relationship with Xinhuo Technology. Readers are requested to strictly abide by local laws and regulations and not participate in illegal financial activities.
1. Guest Introduction: Qiye (Weng Xiaoqi)’s Positioning in the New Stage from Huobi, HashKey to Xinhuo
Colin: Hello everyone, we've invited Qiye (Weng Xiaoqi) to this podcast. He previously served as CEO of Huobi Global, and later as Group COO and CEO of the Exchange Business Group at HashKey. He's experienced numerous industry ups and downs, and now finds himself at a new platform. This is Qiye's first interview since joining New Fire Technology, and we'd like to discuss our future development plans. First, please introduce yourself, as some listeners may not be familiar with your background.
Qiye: Hello everyone, first of all, thank you Colin for inviting me. My name is Weng Xiaoqi, also known as Livio. I graduated from the School of Software at Tsinghua University and am a junior of Li Lin. You're probably familiar with my resume: I served as CEO of Huobi Global from 2018 to 2021. In 2023, I became CEO of HashKey Exchange, overseeing the exchange's establishment and launch.
I will continue to work in a management position and leave in 2024. This year, we've been in frequent communication with Mr. Li Lin. At the time, Newfire was lacking overall management and was lagging behind in terms of business performance. Mr. Li Lin invited me to use Newfire, a publicly listed company, as a startup platform to continue rebuilding our familiar trading-related businesses. We both agreed this was an exciting direction. Last month, I joined Newfire through a private placement and was officially appointed CEO of Newfire Technology on August 26th. I'm delighted to have the opportunity to speak with you in this new capacity. Thank you.
Colin: Okay, everyone's gotten a general idea of Livio's resume. Mr. Qi, could you elaborate on your experiences and insights since entering the cryptocurrency industry? Including your experiences at Huobi and HashKey—from offshore exchanges of similar size to Binance at the time, to participating in the creation of the most important regulated exchange in Greater China/Hong Kong, and now joining a Hong Kong-listed company, amidst the current booming cryptocurrency-to-stock market. Having experienced these different stages, what interesting reflections or unique experiences have you had at each stage?
Qiye: My personal connection to cryptocurrency started very early. In 2013, I was doing arbitrage between Huobi and OKEx, where the price spread was very large. I officially entered the industry after that, and I maintained close contact for several years, but I didn't directly join. I joined Huobi in 2018, and my main focus was leading various compliance initiatives. For example, Hainan was planning to list a virtual currency exchange, and we often competed with Binance and OKEx.
At that stage, the entire industry was eager for compliance and transparency, hoping to become a "regular force." Many exchanges made significant efforts to this end. General Manager Li Lin and I were also planning to list a listed company at the time—Xinhuo Technology was probably one of the earliest crypto concept stocks in the world (2018). The core logic at the time was to use compliance as a path and complete the layout in advance. During the same period, General Manager Xiao Feng was incubating a licensed exchange in Hong Kong in 2018-2019. By 2022, HashKey's license was in place, and the trading team was officially established. Overall, if you want to summarize it in one word, it's "compliance": it is a microcosm of the crypto industry's progress towards compliance in the face of the opportunities of the times.
Since 2018, everyone has been eager to achieve compliance, but the path forward has been elusive. By 2022, Hong Kong received a formal license, and we officially began operating a licensed exchange, building a crucial component of this ecosystem. Since then, we've seen the rise of ETFs, a simplified trading vehicle, becoming the largest channel for net asset inflows over the past two years. From a strategic perspective, the global impact of US stock ETFs is comparable to that of the three major exchanges back then.
More recently, the "treasury model" of DATs has emerged as another, simpler approach. While many people haven't yet developed the habit of buying ETFs, individual stocks are familiar to most global investors. Therefore, DATs—think MicroStrategy, the recently popular BitMine, Hong Kong's Boyaa Interactive, and Japan's Metaplanet—may focus on different cryptocurrencies, but generally fall into the same category: treasury-model DATs. These DATs offer a simpler, more lightweight way for traditional investors to invest in crypto assets.
So, if I were to summarize my experience in the industry to date, it would be "compliance." This is a major trend; the convergence of traditional finance and the crypto industry has brought a massive influx of new capital. In recent years, whether in the US or Hong Kong, we've witnessed the advancement of various licenses and the global compliance process. I believe everyone has deeply felt this. The future will be no different. Guided by the regulatory process, the entire industry will undergo tremendous changes, generating enormous growth opportunities. This also opens up a lot of room for imagination for Xinhuo and our future work.
2. Xinhuo Technology’s History: One of the First Crypto Concept Stocks
Colin: I understand. Could Livio help us sort out the history of Xinhuo Technology? I don't know much about it, but it seems to have tried different directions at different stages.
Qiye: Actually, I don't know a lot. Let's start with the origins. In 2018, Huobi Group decided to transition to compliance, and the first step was to make Xinhuo Technology a key investment target. At the time, the company was called "Tongcheng Holdings." We also invested a significant amount (all publicly disclosed) and assigned different management teams to manage Xinhuo. Xinhuo is not only one of the world's earliest crypto stocks, but may even be the world's first Hong Kong-licensed asset management platform that invests 100% in virtual assets.
Due to various reasons, including Huobi's subsequent development and equity disposal, the team has undergone several changes. The successor team also failed to expand the business's influence due to various factors, resulting in a long history. The current CEO—or more accurately, the former CEO—Du Jun, due to his extensive personal business portfolio, including investment funds, media, incubators, and SaaS, served as a relatively small part of Xinhuo's vast portfolio, leading to his existence as a mere "figurehead CEO." In this round of adjustments, Du transitioned from executive director to non-executive director, but remains a major shareholder and will continue to drive Xinhuo's development.
He and I have always had a good relationship, serving as both mentor and friend since 2018. To some extent, my formal entry into the industry was inspired by the industry exchange meeting organized by Du Jun that year; at that meeting, I began to systematically engage with practitioners on how to view the industry. We will continue to collaborate on the development of Xinhuo, but with a different division of labor—I will focus more on the front lines of business development, while he will inject resources and help run the company as a shareholder and non-executive director. He will also feel more at ease with the addition of a full-time CEO to help the major shareholder manage the company. We have had good collaboration in the past and have held several meetings recently. We are very confident in the future management team and system.
Colin: I understand, but judging from the shareholder structure, Mr. Li or his family office should still be the largest shareholder of Xinhuo Technology, right?
Qiye: Yes, Avenir is Mr. Li's family office. It's a new industry leader spun off from Mr. Li's family office. Xinhuo and Avenir are, to a certain extent, sister companies. Both are within Mr. Li's investment portfolio and maintain strategic synergy across many businesses, including asset management and custody. They are also important clients of Xinhuo. From the perspective of the Avenir Group, there are many businesses that can be developed within Xinhuo.
3. Personal Motivation and Return: After dealing with a family emergency, he returned to the front line and received support from many parties to join the new fire.
Colin: Back then, many people in the industry knew Mr. Li Lin. However, he's kept a relatively low profile in the past two years, and some readers and newcomers may not even know who he is or are familiar with his resume. A brief introduction: He was the founder of Huobi, but later withdrew and sold Huobi to Justin Sun. Since then, Mr. Li has primarily managed asset management and other businesses through his family office, Avenir.
I'd like to ask a question: We've discussed this before, and you originally planned to take a break from HashKey. Was it CEO Li Lin who ultimately persuaded you to step back and work on "Xinhuo"? What was the catalyst for this? Furthermore, it seems CEO Li Lin has shifted from a low-key approach to being more proactive in asset management and other businesses, returning to the listed company to continue advancing related initiatives. What are his thoughts on this?
Qiye: Mr. Li Lin is a very representative figure in this industry. His personal experience, to some extent, represents "half the history" of the Chinese cryptocurrency community. He was early in his career, officially founding Huobi in 2013, later selling Huobi and subsequently founding Avenir in Hong Kong. Everyone is familiar with the first half of his career; since founding Avenir, he has transitioned from a "hidden position" to a "planning" phase. This round of overall planning around Huobi is primarily driven and led by him.
What many people may not know is that after selling Huobi, he made significant changes to the original team members and personally supported many former executives in starting their own businesses, establishing various industry funds and projects. He directly or indirectly invested in many of these projects, helping many former Huobi colleagues expand internationally.
Qiye: Furthermore, a significant number of the new executives joining Xinhuo were recommended to Xiao Feng by Li Lin. As for me, it was Li Lin who recommended me to Xiao Feng—he said I was an expert at building a business from scratch. Initially, I was a bit hesitant about joining HashKey, but after learning it was Li Lin's recommendation, I decided to give it a try.
I've had a wonderful two years at HashKey, and we've accomplished many things in the industry from zero to one. Of course, any compliance path requires a longer period to achieve breakthroughs. While we believe HashKey has a bright future, there's still a long way to go. My departure from HashKey stemmed from the family reasons previously announced: a significant family member suddenly fell ill, a fact known to many close friends.
I've now received adequate treatment, so I've returned to the market. After leaving HashKey, I maintained a close personal relationship with Xiao Feng, and we frequently discussed industry trends. This time, it was CEO Li Lin who persuaded me to invest in New Fire through a private placement. As you may have seen or guessed, CEO Li is increasing his strategic investment in New Fire. I also consulted CEO Xiao on this, and he encouraged me to join.
Before this round of market activity began, he keenly anticipated that the "crypto-stock linkage" would become a new trend. He believed that, from a stock perspective, the Hong Kong crypto market still lacked promising stocks, and therefore encouraged me to join. It's also interesting to note that our initial collaboration with Xiao Gu at HashKey was driven by Li Lin, while our return to Xinhuo to work with Li Lin this time was driven by Xiao Feng. I'm personally honored to have worked alongside these two industry giants; it's the greatest blessing of my career. We've not only achieved significant business success together, but also forged a deep mutual trust and friendship along the way. We're also currently developing a larger strategic partnership, which will be announced at the appropriate time.
When I joined HashKey, I brought with me many former Huobi executives, primarily those working in the exchange's engineering department. They all joined me at HashKey that same year, building the exchange's entire management system and nurturing a significant number of management talent. We have a long tradition of nurturing talent: from the original Huobi to HashKey—the original Huobi was once known as the "Whampoa Military Academy of the cryptocurrency world," while HashKey later became the "Whampoa Military Academy" of Hong Kong's regulatory compliance sector. Many exchanges that later became licensed or seeking licenses, when they needed ROs or operations talent, immediately headhunted HashKey. At one point, we encountered employees being poached with offers double or triple their salary. Some even joined HashKey as "internships," having worked there for years. We were curious about their reasons, and they explained that after "gilding the veneer" at HashKey, their background in the industry carried a significant premium.
HashKey has trained many compliance professionals, some of whom have now joined me at New Fire, while a larger number have chosen to stay. I personally encourage more people to stay at HashKey—after all, I remain a shareholder, and we maintain an equity relationship. HashKey is also experiencing rapid growth; we will maintain close collaboration with New Fire, and a joint project is nearing completion. The Hong Kong market is so large, and we believe HashKey and New Fire can become two highly representative companies, jointly driving the development of this sector.
In the future, Mr. Li Lin will use Xinhuo as the main business vehicle and increase investment in the market. We believe that under his guidance, Xinhuo will expand into more businesses that have a significant impact on the industry.
4. First Principles: Anchored by User Needs, Focusing on Market Gaps
Colin: I understand. I'm not entirely familiar with Xinhuo's previous businesses. My impression is that they were involved in MPC and hosting-related businesses, correct? Furthermore, you certainly have many businesses to pursue now and in the future, but could you please outline the sequence and focus of these initiatives?
Qiye: Xinhuo's previous problem was this: it was a long-established publicly listed cryptocurrency company, perhaps even one of the earliest, but when it came to its business, people didn't have a single memorable point. This is a big no-no in the industry—the outside world didn't know what you were actually doing. The businesses you just listed included asset management, MPC wallets, and even Xinhuo's OTC (over-the-counter) trading, which once had significant trading volume, but none of these formed a strong memorable point.
So when I decided to join New Fire, I was thinking: How can I take a company with a long history and a full suite of licenses (almost all except License No. 7, including Licenses 1, 4, and 9, as well as a trust license, all with VA upgrade capabilities to conduct virtual asset-related business) and turn it into a "good dish" that the market will recognize? If I were a chef, with scarce ingredients like seafood, the key is how to "cook" them into delicious dishes that the market will accept. This is the question I've been pondering for the past month. The solution is actually simple: return to first principles—what we do must be driven by market demand; only when there's market demand does it have value. For example, many people would intuitively think that since we came from HashKey, we should simply copy HashKey's License No. 7 business to New Fire; but that's the approach most mediocre teams take.
Qiye: Let's go back to first principles—what do customers really want? Where do their needs lie? We prioritize user needs. On the current supply side, exchanges are no longer in short supply. The world's major offshore exchanges are large and mature, and without strong differentiation factors, it's difficult to break through.
For example, during the 2018-2019 wave, many platforms relied on differentiated long-tail currencies ("small coins") to drive growth, prompting some second-tier exchanges to move into first-tier markets and third-tier exchanges to move into second-tier markets. Another example is the DeFi cycle, where platforms that capitalized on the DeFi dividend (FTX at the time) benefited significantly.
Then there's the futures trading market. After BitMEX collapsed due to compliance issues, a slew of new futures trading exchanges emerged; many of today's largest platforms also launched their futures businesses during that period. Without these major industry variables, it would be extremely difficult for another exchange to rise to prominence and surpass the competition.
At the same time, the exchange industry itself is evolving: from the unlicensed, full-stack exchanges of the early days, it has evolved to more "lightweight" trading platforms. For example, if you're just buying Bitcoin or Ethereum, you don't necessarily need to use a "heavyweight" exchange; ETFs for US and Hong Kong stocks are also an option. Hong Kong's "Type 7" license is no longer scarce, with over a dozen already operating.
Qiye: Ultimately, it all comes down to "who will survive?" We see that the leading platforms are struggling, and those applying for listing later will face an even greater challenge due to their lack of first-mover advantage. At this stage, if Xinhuo were to pursue a full-stack exchange, that strategy wouldn't be completely ruled out, but it wouldn't be the first step in a cold start. So, what should be done during the cold start phase? This is our core question. We conducted market research to understand this: During this bull market, especially since the second half of this year, driven by stablecoins and RWAs, more people are beginning to understand this industry. People are realizing that if billions of people go "on-chain" in the future, cross-border settlement costs will be lower and assets will flow more freely. In many financially underdeveloped countries, even the "unbanked" will be able to access banking-like services with just a wallet.
At the same time, a massive influx of new capital is on the way. Mainstream financial institutions, traditional family offices, and high-net-worth individuals in the traditional stock market have recognized the gradual mainstreaming of crypto. They're eager to enter the market, but face numerous challenges. Almost monthly, I'm repeatedly bombarded with questions from friends in traditional industries (mostly high-net-worth individuals, some with assets in the hundreds of millions or even billions). Are platforms like Binance and OKX safe? What's the best price to buy in? How can I protect my assets from theft? Where can I store them securely after purchase (custodial or self-custodial)? How can I withdraw funds legally and avoid having my account frozen? More advanced clients ask: Can holding cryptocurrencies generate stable interest? Those who already hold substantial assets ask: How can I ensure family inheritance and cross-generational arrangements? These are the most pressing pain points facing these newcomers.
5. Xinhuo Phase I Strategy: Private Banking in the Cryptocurrency Circle and Family Trusts
Qiye: The current No. 7 platform doesn't really serve high-net-worth individuals well. It's geared more towards retail investors, offering a low-touch platform-based service—just an app to operate. However, many new clients don't even know what a market order or a limit order is. How can we provide personalized service to these high-net-worth individuals? There's a clear market gap here. In the past, unlicensed exchanges often operated in stealth, making it difficult to openly offer comprehensive services to clients, resulting in a long-standing gap in service delivery.
We were wondering: Could we provide "private banking-grade" crypto concierge services for high-net-worth individuals and new traditional users? From account opening, deposits, and trading, to custody/self-custody and asset management after coin purchase, and finally, to family inheritance, which we cover with our trust capabilities, "private banking-grade concierges" provide personalized guidance and services throughout the entire process. We jokingly call it "cryptocurrency private banking." This is both a relatively untapped market niche and a relatively lightweight and easily accessible business direction. This demand isn't speculative—I personally witnessed a high-net-worth client intending to purchase millions of dollars in Bitcoin during the HashKey phase. They opened an account with a compliant exchange, but only provided an app for placing orders on the market.
He initially placed a market order for $1 million. Due to the new platform's poor liquidity, the system quickly blocked the trade. He then switched to splitting orders into $100,000 orders. This resulted in a fluctuating price movement, resulting in significant slippage costs. After the purchase, he encountered numerous issues withdrawing his funds.
There are many similar examples. Investing in virtual assets involves a complex series of steps and concepts, including purchasing, storing, and subsequently generating new coins. For new entrants, this presents a catastrophic risk. If these issues are not systematically addressed, the true value of this customer base—especially the newly added high-net-worth and institutional funds—will be difficult to effectively unlock.
Qiye: Therefore, we've put a lot of thought and innovation into the account opening, trading, holding, and inheritance stages for new customers. For example, for account opening, we offer on-site, personalized, one-on-one concierge services. With all necessary information, we promise to open an account within seven days. For trading, we'll have a dedicated service group—similar to traditional private banking customer service—with dedicated personnel available 24/7 to answer questions. Customers can also communicate directly through manual communication, such as "I want to buy $1 million worth of Bitcoin today." We'll provide an estimated price and total cost. Once the customer confirms, we'll intelligently route the order through multiple exchanges, striving to complete the transaction in the most optimal way. For withdrawals, we'll provide a dedicated bank channel.
As a licensed financial institution and a publicly listed company, we have a strong reputation. Focusing our services on high-end clients helps maintain a clean channel, significantly reducing the likelihood of encountering bank risk controls such as "card freezing," and ensuring smooth withdrawals. During the holding phase, assets can be held in our trust account or on designated compliant exchanges (such as Coinbase and HashKey). More hands-on clients can also customize an MPC (Multi-Party Computation) wallet, which supports private deployment. After entering the holding phase, you can entrust our fund to invest in cryptocurrencies and integrate this with traditional stock investments, achieving synergistic allocation of crypto and securities assets and improving capital efficiency.
Qiye: We've also pioneered a trust solution based on virtual assets like Bitcoin. You can establish a family trust using pure Bitcoin, or you can combine Bitcoin with traditional assets like stocks. This solves the "inheritance dilemma" many face after making significant profits in the cryptocurrency market. I wonder if Old Wu has considered this as well? I've considered many options myself: writing small notes at home, using cold wallets, etc., but none of them seem perfect. I once gave a cold wallet to a family member, and later asked, "Do you still have the USB drive I gave you?" They hadn't even remembered it. The actual process is quite complex. Now, you can even establish a family trust directly using Bitcoin, and even arrange a will.
For example, I have 100 bitcoins, which I hope to leave to my son after I die; another 100 bitcoins to my daughter; and the remaining portion to be distributed according to a plan. Trusts can systematically address the issue of virtual asset inheritance—a necessity for many OGs.
In short, we adopt a high-touch "private banking butler" model to provide personalized services to high-net-worth clients with assets exceeding HK$10 million, helping them to solve their full-link needs from entry-level configuration, to safe holding and interest generation, to asset inheritance in one stop.
Essentially, we're implementing a phased approach of "subtraction" in our target audience: in Hong Kong and the Greater China market, we're temporarily shifting focus from the retail investor market to high-net-worth clients. Simultaneously, we're revitalizing Xinhuo's existing asset management, MPC wallet, and OTC trading businesses. We believe this is a more elegant first-phase strategy. We've conducted extensive research on this topic, and the feedback (including customer acquisition and conversion) is positive. We believe this strategy will unlock new opportunities.
6. New Fire Phase II Strategy — “Treasury Project” focuses more on top assets such as ETH and SOL
Colin: I understand. I think Livio has already explained it in detail: Xinhuo Technology will focus on developing its private banking business for high-net-worth clients in Hong Kong and Greater China. This is its current focus. Is my understanding correct? I have another small question: It's well known that Mr. Li Lin's family office holds a large number of ETFs. Is it possible for Xinhuo Technology to transform into a similar "reserve-type" company in the future? In other words, will Mr. Li Lin or other investors inject large amounts of cryptocurrency into the listed company, turning it into a "treasury company"?
Qi Ye: We did discuss this route when we were planning Xinhuo - whether to make Xinhuo a Treasury-type company. Whether it is to reserve Bitcoin or Ethereum, it is theoretically a feasible option, and Li Lin’s family office does hold a considerable amount of digital assets.
Later, we discovered that this model worked well in the US stock market largely due to its flexibility (including the efficient ATM (At-the-Market) issuance mechanism). In contrast, the Hong Kong stock market's structure isn't as well-suited in this regard. Therefore, for New Fire itself, we won't immediately transition to a DAT business.
However, you've also hit upon our second strategy: We plan to establish a dedicated DAT fund of approximately $500 million to strategically participate in, and even lead, selected DAT projects in the US and other stock markets. This topic is currently very hot, and we've seen many major US institutions accelerating their entry into the market: from MicroStrategy's initial investment in Bitcoin to its recent focus on Ethereum as a primary investment. Whether DATs centered around Solana or others will emerge next, we believe the "spark" has been ignited and is expected to continue to heat up.
At the same time, these assets will also become a preferred allocation for our private banking clients. Many institutions or high-net-worth individuals who participate in their own names encounter numerous complexities, such as structuring, and find the process too cumbersome. By participating in these plans and leveraging New Fire's credit backing and capital capabilities, clients can access a superior asset package. Essentially, we complete the complex work upfront and provide it to private banking clients in a more streamlined format. This is another crucial strategic choice for us.
Colin: Follow-up question. Lately, the spotlight seems to be turning to BNB and Solana. Recently, a large amount of US capital has been promoting Solana's treasury company, and many Asian capital (including Hong Kong's China Renaissance Capital) have begun to invest in BNB's treasury company. If you were to set up a fund to invest in these DATs, would you focus more on traditional Bitcoin and Ethereum, or would you also focus on relatively emerging BNB and Solana, or even smaller altcoins?
Qiye: We'll likely look at both the first and second categories. Both New Fire and Avenir have already been exposed to these opportunities, and we're also progressing to the substantive stage with several sponsors. Regarding longer-tail assets, this round we've observed a clearer concentration of pricing power in the crypto market on Wall Street. Wall Street's understanding of and willingness to invest in the top-tier assets tends to favor the top tier, making it difficult for particularly long-tail coins to profit from DATs. Of course, it's not ruled out that at market peaks, some niche coins might capitalize on this opportunity to "tell a story" and experience a surge, but that won't be the dominant theme, so we'll likely focus more on the first two categories you mentioned.
7. Internationalization and Licensing Path: Starting in Hong Kong, Expanding to the US and Global Compliance
Colin: You mentioned earlier that Wall Street remains the dominant force in both pricing power and overall performance. We also know that CEO Li Lin frequently travels to the US and has significant activities there. Will Xinhuo's current business focus remain on Hong Kong, or will it also simultaneously advance its international presence, including initiatives in the US?
Qiye: Yes, that's a very good question. Hong Kong is the first step in Xinhuo's new strategic phase. After all, we are a Hong Kong-listed company, with our existing business operations and key licenses in Hong Kong. Therefore, the aforementioned first-phase strategy—"Private Banking-Grade Digital Asset Steward"—will focus more on Hong Kong and its related markets and regions.
We also own BitTrade, a profitable Japanese exchange. We will also apply for and obtain licenses in other regions around the world and gradually launch our global strategy. We chose the "private banking" positioning as our first step to expedite the implementation of this strategy: we are repackaging and repositioning our existing business as a small, Pareto-like improvement. Therefore, progress will be rapid—the new product website is expected to launch tomorrow. This is a consistent style for me and my team: first, adapt to industry changes and iterate quickly; second, take one step at a time and consider the next. Expanding beyond Hong Kong and radiating to surrounding markets is the first step.
Our second strategy is DAT, primarily focusing on the US and US stock markets. Our third step is a global strategy: leveraging the current wave of interest in stablecoins, RWAs, and cryptocurrency-to-equities, as well as the global licensing trend, we will advance our subsequent international expansion. We have also secured key resources in advance.
Colin: Yes, Livio has explained the overall logic very clearly: the first step is to promote "private banking business" for high-net-worth clients in Hong Kong based on existing resources; the second step is to focus on US-bound DAT investment funds; and the third step is global compliance layout.
I have another question that doesn't involve your business, but we can discuss it: It seems that the focus is shifting from BTC to BNB and Solana. You're not actually competitors with OSL and HashKey. They're all compliant globally—HashKey, in particular, has previously obtained licenses in Singapore, Dubai, and other places. OSL has been very aggressive in the past six months, seemingly completing financing and acquiring licensed public companies around the world. What do you think of this strategy? Are there any lessons to be learned? Furthermore, can this kind of "licensing" business in different countries truly be profitable, or will it be more of a tool within the public company system to manage market capitalization and boost stock prices?
Qiye: Yes, we do see our partners ramping up their efforts to acquire global licenses, even entering a race. HashKey was my former "family," and we remain a close friend and future partner. OSL is also a portfolio company of Li Lin, who participated in this round of private placement and remains our partner. First and foremost, we will maintain a cooperative relationship with them—because we don't engage in their license No. 7 business, we're not in direct competition. In many areas (including trading, coin storage, etc.), we are partners: wherever our clients need us, we assist them. From a strategic perspective, I believe this is a highly skilled and forward-thinking group of people making a strategic plan for the future.
The success of this strategy hinges on the two points you just mentioned: the speed of the future's arrival, and the perfect match between cash flow management and its effectiveness. If this link isn't perfectly aligned, challenges may arise at some point. If it is, it could become like Coinbase—a company that, in its early days, withstood the immense pressure of global licensing and emerged as a giant. Both pure exchange licenses and pure payment/finance (PayFi) licenses hold long-term value. Who emerges victorious depends on each company's financial strength and operational prowess.
8. What stage is the market in this cycle?
Colin: Finally, let's discuss a more pressing question: What stage has the current market cycle reached? We know that both Mr. Li Lin's family office and asset management, as well as you personally at Livio and your company's asset management team, have conducted extensive analysis and research, from macroeconomic perspectives to specific operational details. This is because the current market has recently seen mixed reactions. Wall Street has been "buying" the market, but this can't simply be called hype—DAT essentially relies on a sustained rise in the price of the coin to keep the flywheel turning. This is why some, such as Arthur Hayes and the recently popular Tom Lee, are calling out target prices like "10,000 or 20,000 Ethereum."
On the other hand, we've noticed in public markets, private conversations, and interviews that many funds in Asia seem to have begun reducing their holdings. In the past few days, one early-stage whale even sold tens of thousands of bitcoins on-chain. A well-known fund I previously interviewed even believes the market could experience a 50% correction over the next year. Based on your research and predictions, what trends are likely to emerge over the next year?
Qiye: Actually, one sentence can answer most similar questions: From 2017 to the present, a global trend has been that the Eastern world (including the Chinese) has been selling, while the US has been buying. This is related to the impact of the US regulatory process and expectations of interest rate cuts.
The market remains incredibly hot; Asian investors, isolated from this atmosphere, may not necessarily experience this enthusiasm and the massive influx of capital. Historically, Asia as a whole has entered the market earlier—whether it's China, South Korea, or Japan. Europe and the United States entered the market relatively late. Early Asian investors have already achieved impressive returns (many assets have increased several-fold), and naturally fear drawdowns and tend to "lock in profits." However, European and American investors, most of whom entered the market (taking Bitcoin as an example), started in the tens of thousands of dollars. They feel that "the revolution has just begun," resulting in a significant difference in mindset.
Personally, I'm more inclined to believe that since pricing power lies in the US, we should pay more attention to the direction of US institutions. Against the backdrop of "interest rate cut expectations," the trends and performance before and after the cuts may be more decisive for future trends. In fact, this year alone, we've seen many veteran investors "get off the train" and never get back on. Therefore, I'd like to remind you that holding long-term while frequently trading in short positions is a dangerous strategy. No one can accurately predict the tops and bottoms of a trend; however, in the long term, the industry's development trends are relatively clear. Looking ahead to the next decade, I believe that now is definitely not the peak, but rather remains relatively mid-range or below the mid-range—this is probably the only certainty.
The rest depends on personal choice. For example, if someone sells Bitcoin at 120,000 and has no regrets whether it rises to 200,000, 300,000, 500,000, or 1 million over the next ten years, considering the return ideal, then they can proceed according to their mindset and investment strategy. Others might be deeply distressed if they hold on to their Bitcoin at 120,000 and the price falls to 70,000 or 80,000. Risk tolerance and return goals vary from person to person; the key is making responsible decisions. My personal assessment is that the current price is neither the lowest nor the highest point. Maintaining a long-term perspective, prioritizing long-term value, and staying with the industry over the long term may ultimately yield even more substantial returns.
Colin: Finally, I might ask for those who are looking for jobs: Is Xinhuo hiring now? Do you need talent in the market?
Qiye: Thank you so much. Xinhuo is truly expanding its business at full speed, and we urgently need a group of experienced and promising industry elites. We emphasize "elite." We don't prioritize a large team, but rather a strong one: one outstanding individual can often equal three mediocre ones, while managing costs are only about one-third of the average person's. This is a superior option.
The problem we've seen with many mediocre teams in the past is that they hired too many people too quickly, leading to a dilution of value and culture. As a result, some people are "lying flat," some are busy managing upwards, and the people who actually do the work are tired, and over time they develop complaints and are ultimately unwilling to continue investing. This is a common situation for most mediocre teams. So, if you think you are a top talent in the industry, please send your resume to Xinhuo. The fact that you can listen to the Wu Shuo podcast and stick to it means that you have strong learning ability and resilience, and are in a stage of rapid growth. You may very well be the talent we are looking for, so please join us.
