CTO Q&A Session #2: November 6, 2018

This Tuesday, on November 6, XTRD CTO Serg Gulko run his second one-hour long Q&A session in our Telegram chat. Here is a short transcript. Prepare your questions for next Tuesday, and join the discussion!

Q (Mike P): Hey Serg, how are all things with XTRD?

A (Serg Gulko): Hi Mike! I was thinking to create GitHub or BitBucket account to publish some stuff as well. Like client connector samples. Client side (buy side) -> XTRD Gateway. We are using commercial libraries (OnixS FIX Engine) but we also can code samples on QuickFIX of Fix8.

Q (Crypto Reilly): Hi Serg! Some of us were wondering if there is a roadmap for XTRD?

A (Serg Gulko): Well, the roadmap is very simple: FIX is live, PRO will be live by end of 2018 — beginning of 2019, DARK (it’s really dark…) — probably 2019. Besides this big things, we are constantly adding new connectors. We also want to bring to market several offering to newcoming crypto exchanges. It’s like a bundle — infrastructure (which is less important), routing (has value), liquidity (super important).

Q (Mike P): The liquidity is the cross exchange functionality?

A (Serg Gulko): Yes. We have access and tech to deliver it. And, what is most important — we see huge interest from exchanges side 🙂

Q (Crypto Reilly): Great, in one of the YouTube videos of Alex at the NYSE he said something about looking to raise 75–100 million for liquidity. Is this liquidity needed for DARK or other areas of the project?

A (Serg Gulko): Yes, these funds supposed to be deployed in liquidity project.

Q (Conflipper): In the fast pace of crypto. What is XTRD doing to stay ahead of market trends and adapt to the ever evolving market?

A (Serg Gulko): Market trends right now is a centralized clearing model. We are involved in two pilot projects with exchanges, clearinghouses, and end clients. I can’t disclose the names at this moment. But speaking of trends — this is the one:) It might be not very visible on the retail side, but it’s super important for institutional players. Another trend is STOs.

Q (Conflipper): How will STO impact, if at all, the company?

A (Serg Gulko): We are working closely with exchanges that will provide the ability to trade digital securities. We strongly believe in new asset classes that will boost trading activities.

Q (Crypto Reilly): I watched a presentation by former NASDAQ chairman and it sounds like there are huge regulation problems to address. Are STOs many years away in your opinion?

A (Serg Gulko): It not that far. Many exchanges are working to get approval from local regulators. And, based on what we see, they (regulators) become more open to new ideas. E.g. we had a conversation with BAKKT people last Friday, they are launching in 6 weeks. Is this not amazing?

Q (Conflipper): How are you handling exchanges? It seems every month there is a new exchange. It doesn’t seem super obvious to myself that you have many exchanges signed up currently. So with new exchanges being created always how will you keep to speed with them.

A (Serg Gulko): Our strategy with exchanges varies on depends who they are. Let’s say, from an established exchange we are trying to get:

  • faster connection(not over the public internet);
  • direct access to IT team;
  • preferential treatment for our clients.

In return, we can bring good, fat clients:) With new exchanges our rhetoric is different. As I mentioned before, we will create a package/product that will include:

  • infrastructure (colo/servers/connectivity/security);
  • access to liquidity.

Q (Conflipper): As that been demonstrated to existing exchanges? Or simply on paper? And is that the only conditions? Sometimes new business needs to bend a little to get foot in door.

A (Serg Gulko): Idea with a package for new exchanges came to my mind like a two weeks ago. We will update our website/presentation very soon to reflect it.

Q (Mike P): I think a lot of folks wonder where the utility token will fit in with this; we know there is the holding amount that provides discounts, but it does sound like the project has many facets that could be hard to tie together with respect to fees. While the roadmap does outline the products being offered, what about the infrastructure for handling the fee payment and management of all of this? Just from a programming point I can see this being a pain in the ass (not the primary goal), but also if someone on the team wanted to champion this aspect it could be a lot of fun (an interesting problem to code up and make happen).

A (Serg Gulko): Utility token model is perfect for our type of business — execution fees, market data fees, infrastructure fees.

Q (Conflipper): Is there anything XTRD is currently doing to generate more volume on exist into exchanges? I see it’s lower than normal the last few weeks, it’s curious.

A (Serg Gulko): Well, its more-less technical Q&A. It’s not a pump and dump chat room. At least, this is how I see it:)

Q (Thomas): When do you see organic demand for XTRD tokens coming? As in clients need to start buying tokens from the market to use them? Q1 2019?

A (Serg Gulko): This is a good question…. We have several big prospecting clients waiting for a certain part of our services (clearing, specific exchanges). I really want to bring these components to production within the next two or three months. Maybe — earlier

Q (Eric | PARETO, Board of Trustees): Why would those clients want the XTRD token?

A (Serg Gulko): Its simple — our services are paid in XTRD tokens.

Q (Eric | PARETO, Board of Trustees): Exclusively and completely in XTRD? What do you guys do with the XTRD paid back to you?

A (Serg Gulko): In accordance with the plan(we even have a nice explanatory video with this idea) — tokens will be circling back to the ecosystem. Eric, one of our goals is to prove that the utility tokens model is working. Ecosystem, services, business model — there are integral parts of XTRD.

Q (FelizNavidad): Hey Serg, nice to see you doing AMA. I got a question but it’s not focused on the tech part. 7 months ago you raised 30+ Millions but personally I don’t understand why you asked for so much money. Did you do it because you saw money poping out everywhere around you or you actually had a plan for them?

A (Serg Gulko): Feliz, I strongly suggest you back to the Whitepaper:) We are not the project that acts as a vacuum cleaner

Q (FelizNavidad): If you had a plan for all these money it means you sold the ETH raised for fiat, right?

A (Serg Gulko): Nop.

Q (FelizNavidad): Why?

A (Serg Gulko): Most of the money was collected to facilitate liquidity projects. Of course, part of it will be used to run actual business operations (pay for infrastructure, salaries etc) but, again, we need crypto assets, not USD for liquidity. Guys, I know that I might sound strange, but I’m truly a crypto believer. No panic sales from our side. We know where everything is going.

Q (FelizNavidad): Do you still have money to pay salaries, infrastructure, networking presence etc? And for how long?

A (Serg Gulko): This is not my first company and despite my sometimes idealistic ideas, I have a basic understanding of how to budget things 🙂

Q (FelizNavidad): I’m glad to hear that, but I think it’s a normal question when it comes to transparency. Can you survive another year? 2 years in current market conditions?

A (Serg Gulko): Of course, we will be here! You can’t simply imagine the momentum. It will be very stupid from our side to leave right now. The truly digital assets movement is about to begin and I want to make XTRD is an integral part of it. We are not the people who will run away. It’s my reputation.

Next Q&A session is on November 13, 2018!