HonestNode Co-Founder and CFO Vincent Wang: We Want To Bring The Traditional Financial Instruments Into The Crypto World
Being a small part of the world economy system, the cryptocurrency market is growing rapidly, while the derivative products related to digital currency are relatively at early stage.
Vincent Wang, who has been engaged in financial industry for years, sees the opportunity with his partners. With their effort, the idea of cryptocurrency derivative platform came to life as HonestNode.
First Pot of Gold
Graduated from the University of Arizona, Vincent worked for East West Bank, Clean Energy Capital and Duff & Phelps, where he cultivated his experience and resources on investing.
At first, he and his partners shared investment advises regarding US stock on social media, Snowball. Their sharp analysis attracted many followers. When followers reached the number of 20,000, the one-by-one money management became difficult, which led to his first company, Paretone Capital.
In 2015, Vincent started Paretone Capital with his partners. The original financing of Paretone Capital came from the support of his followers. “ We raised over 3 million dollars in the beginning, then 11 million for the second time,” Vincent told CoinTime.
The investment reward was great in 2015 and 2016, “Our return was better than the US stock market benchmark. But in 2017, our strategy was too conservative. The return was not impressive as before,” Vincent said.
Into the Crypto World
Vincent's cryptocurrency investment experience could trace back to 2014.
He learned about cryptocurrency in the end of 2014. Back then, he was still working at the bank. Chats with his colleague regarding investment was his daily routine. Bitcoin was one of the investment channels that they have discussed. “I started to invest in bitcoin in the end of 2014, but I didn't make money at that time,” Vincent told CoinTime.
In 2016, he put his attention back to crypto world again by helping his friend with arbitrage trading opportunities. In 2017, the cryptocurrency price started to going up. The upward market attracted the world's eyes, including Vincen's.
From the beginning of 2018, Vincent focused on arbitrage in crypto world personally, then registered institutional account in the main exchanges including Coinbase, Huobi, OKCoin etc.
He said, “The process was quite hard. It took us half year to get the official accounts approved in the main exchanges.”
Gradually, Paretone Capital has opened its market based on strict KYC mechanism and reliable trade. With more volume, the platform began to be influential in the industry. Right now, Paretone Capital is the top 3 OTC platform in China.
Though the first company is quite a success, Vincent has not stopped.
“ We have tried to invest on some projects like other token funds, but the market was not good since the beginning of this year. Later we realized that we should do what we are good at, financial industry,” He spoke with CoinTime about his transition.
With years of traditional finance experience, Vincent believes that the cryptocurrency market also needs financial instruments, which are not that popularized in the market yet.
Wanting to fill the blank space, he and his partners started another start-up company, HonestNode.
HonestNode will mainly focus on asset management on crypto market. In addition, it is devoted to find better soluitons for finalcial and credit derivatives for crypto world participants. The platform is committed to bring mature derivatives and investment strategies from the traditional financial industry into the digital currency area, providing users with products and tools that fit their investment logic.
Right now, HonestNode is on financing stage, targeting to raise around 2 to 3 million dollars. The company has already got the investment from AngelToken and Zhangfan, former Sequoia Capital partner of China etc.
“ My two partners are my high school classmates, one of which was focused on start-up business in financial area. The other one was in fund and futures industry,” Vincent said. Most members in the HonestNode team have financial and technology background.
Regarding derivative products, HonestNode has its own advantage. “ Our products will be mostly based on bitcoin and Ethereum. We can adjust the levergae level by ourself, from 1 time to 5 times. And out platform won't wipe out the clients accounts compulsively,” Vincent said.
The platform can also design financial products for different clients based on their different needs, Vincent continued, “ We can provide fixed income product for big institutional client, who wants to have fixed interest like 6% to 10% every year.”
Being one of the influential OTC plarform in China, Paretone Capital also supports stablecoin besides bitcoin, Ethereum and other mainstream coins.
Personally, Vincent thinks highly of cryptocurrency and stablecoin.
He said, “bitcoin has solved many problems which are hard to deal with in traditional finance area. First, data in financial area is quite confidential. By writing the data on chain, those sensitive information will not be able to changed. Second, bitcoin being a payment method can be used on international trade, saving time and communication cost.”
But Vincent thinks stablecoin can play a better role on international trade than bitcoin.
“The price of bitcoin is too volatile. The changing price could lead to financial lose during the trade. While stablecoin is backed by fiat on the rate of 1:1. It is stable enough to be a payment method and avoid the traditional payment problems,” he said.
Stablecoin seems to be one of the bright spots in this gloomy bear market. Starting his crypto journey in bearish season, Vincent also has deep understanding of how to survive in down time. “ Company should focus on their products in bearish market. The trade on secondary market can be reduced, and investors should learn to buy the real product on a cheaper price.”
Executive editor： Emily Sun