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6 Questions for Chen Li of Youbi Capital – Cointelegraph Magazine



We ask the buidlers within the blockchain and cryptocurrency sector for their ideas on the business… and throw in a number of random zingers to maintain them on their toes!


This week, our 6 Questions go to Chen Li, the co-founder and CEO of Youbi Capital, a enterprise capital agency investing in blockchain applied sciences and disruptive decentralized purposes.


Chen Li is the co-founder and CEO of Youbi Capital. He has a Ph.D. in chemistry and labored as a scientist for Regeneron Prescription drugs, the place he received two awards for his contributions to growing groundbreaking antibody medication. In 2015, he was launched to Bitcoin mining by his roommate in school, then collectively based Youbi Capital in 2017. Chen constructed the inspiration of Youbi’s thesis in blockchain infrastructure and led investments in Algorand, Avalanche, Polkadot, Circulate, Kadena, Chainlink, Debank and others. He was additionally an advisor to JP Morgan’s blockchain staff.


1 — What’s the most important hurdle to mass adoption of blockchain know-how?

The primary hurdle to mass adoption of blockchain know-how now remains to be its infrastructure, particularly, scalability and safety of layer 1s. All of us noticed that the watershed second for Axie Infinity was not the play-to-earn motion that began in early 2020 however the migration of the sport from Ethereum to Ronin in mid 2021, which led to an explosion of gamers and income development immediately. 

However Axie was only one software, and might subsequently be simply accommodated on a devoted chain, whereas for the DeFi protocols — that are extremely composable and already interconnected — we nonetheless don’t have a layer 1 for your entire set of DeFi protocols emigrate over with out beginning to jam its site visitors. Solana is likely to be the closest to reaching this objective, however it isn’t horizontally scalable for mass adoption. 

There’s nonetheless quite a bit to do to put a stable basis for the blockchain software.


2 — What’s going to occur to Bitcoin and Ethereum over the subsequent 10 years?

Bitcoin has efficiently prolonged the consensus on its asset as a decentralized retailer of worth for everybody from people to a big group of establishments on this cycle. It is just a matter of time earlier than it’s universally accepted. Moreover, underneath the worldwide inflation backdrop, Bitcoin may also have the prospect to develop into a broadly used foreign money in worldwide settlements. There was quite a bit of hypothesis on the Bitcoin worth proposition damaged all the way down to its utilization in several classes.

In phrases of know-how, the group has deliberately stored Bitcoin’s progress at a gradual tempo to keep away from introducing any uncertainty. Whereas I imagine that’s the proper technique for its use instances, Bitcoin will nonetheless be restricted in supporting sensible contracts over the subsequent 10 years.

Ethereum, however, goes by means of a lot quicker reiteration by transitioning to proof-of-stake and doubtlessly sharding within the close to future. All EVM-supporting chains are additionally within the Ethereum ecosystem, contributing worth to the bottom layer. As a result of robust community impact, the Ethereum ecosystem will probably stay as a dominant drive within the DeFi area all through the subsequent 10 years.


3 — Once you inform individuals you’re within the blockchain business, how do they react?

I keep in mind once I first talked to outsiders about Bitcoin in 2015 — they both fell silent and gave me awkward seems like I used to be attempting to speak them into some variety of rip-off, or in some instances, enthusiastically challenged me on whether or not Bitcoin had any worth. Bitcoin mining was extra of a enterprise that individuals may perceive, however it was extraordinarily uncommon to seek out somebody that was open-minded concerning the cryptocurrency itself. 

Now, individuals are turning into increasingly more educated and engaged about blockchain know-how and crypto. I’m usually not the one particular person they know within the business. I was requested heaps of fundamental questions on blockchain. However now, individuals who aren’t blockchain professionals typically share their views first as soon as they know I’m within the business. 

They’ve way more various views on the blockchain business now. Apart from holding crypto of their portfolio, a number of individuals are NFT collectors and even landowners in blockchain video games. They see blockchain as a know-how to difficulty and transact NFT property in addition to infrastructure for the Metaverse, however are extra drawn to NFTs and Metaverses. That’s the reason I’m very assured that the Metaverse would be the entry level to the Web3 period.


4 — Who is sensible to you, and who is senseless by any means?

Whoever is constructing a product then tells a narrative is sensible to me and who simply tells a narrative or builds a product for imaginary demand is senseless by any means.

There are heaps of nice merchandise which can be fastidiously designed and reiterated to suit the wants of the customers. For instance, Binance has a really environment friendly suggestions loop, from customer support to administration. In consequence, it is ready to reiterate its product in the suitable method and have interaction a brand new development out there. The Binance staff is sensible to me. Polygon, Debank and The Graph are all glorious examples of merchandise with robust product-market match. All these groups make sense to me and I see heaps of potential within the adoption of their product.


5 — Record your favourite sports activities groups, and select the only most memorable second from watching them.

My favourite sports activities groups had been the Chicago Bulls and Denver Broncos. Essentially the most memorable second was Michael Jordan’s ultimate shot with the Bulls that received them the sixth championship.


6 — Apart from the current day, in what time and in what nation would you prefer to have lived?

I want I had lived in Shanghai, China from 2012 to 2015. That was the primary crypto market cycle that I missed. The 2 main occasions in that timeframe had been the expansion of Bitcoin mining and the fundraising and preliminary community-building of Ethereum. They each occurred throughout that point in China. 

Plus, China is my residence nation. I really like the meals and folks.


A want for the younger, bold blockchain group:

I want that everybody locally can survive the ups and downs, holding tight to their crypto property.

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