Founder of fatcats.market Publication date: 5 of September 2018
'Crypto currencies are slowly becoming a payment method'.
Nick Dark, Founder of FatCats.market, answers questions from investors and the crypto community.
We have received hundreds of questions in different languages just a day after we launched 'Fat Cats Expert Center' on Fatcats.market. And this does not include the usual pile of questions from our investors. People want to earn money off crypto but feel that the potential of tools they have been using for 10 years is already exhausted. On the other hand, a lot of newbies enter the crypto market despite the fact that all the major currencies have dropped in price; it actually looks like some kind of a gold rush. Hence, we now have the most peculiar mixture of hope and panic, which unites newbies and experienced crypto investors.
There are many questions but most of them repeat one another, so we have decided to answer the most frequent ones in this interview.
The main question asked by almost everyone: what will happen to crypto? It has never seen such a long-lasting decrease in price...
Such things always happen when people have too many expectations. The crypto market has changed a lot and I know that the most important thing for business is the ability to adapt to sudden changes. Now, I'm not simply talking about crypto volatility but about the ability to adapt to the constantly changing realities in general. The problem here is not that the majority of people are unable to do that but they simply do not want to. At the same time, they want to make money in the industry where conservatism is nonsense! The IT industry is constantly changing: those who considered themselves the smartest 10 years ago, probably failed to notice the appearance of crypto back then. And now, those who were lucky enough to win this lottery, also consider themselves experts, while failing to notice that crypto currencies are changing from a simple speculative instrument to a fundamentally different payment method.
Looking at our platform, we see that crypto payments have already turned into reality. People pay for legal goods and services with crypto. Otherssellforcrypto. And most of these goods or services have nothing to do with the crypto world.
We have also launched a crypto challenge and proven that it is possible to live paying only with Bitcoin and Ethereum in different countries: Russia, Switzerland, Germany and Thailand.
It is not surprising that many people are not ready to acknowledge the fact that the appearance of non-regulated digital money is already a reality. It's all right. Things that have never happened before, happen all the time.
In fact, many people write to us that even if there are those who actually use crypto for payments, they are single cases and have no effect on reality.
It is true that the crypto market is now at its initial stage. However, this is very good for Fat Cats and their investors. Even now, there is a sufficient number of crypto holders who are ready to spend crypto. So, while the rates continue to drop (and crypto is too overpriced, let's finally admit it), this number will grow but not fast enough to attract e-commerce giants. This is our chance. We can still have a nice big share on this growing market.
Here are some indicative figures: Amazon was launched in 1995 when there were only about 16 million Internet users in the world and less than 300 thousand Internet users in Russia. These figures are comparable to those we now see in the crypto world. Now there are more than 10 million crypto holders in the world. My estimate is that the real number ranges between 10-20 million people. Well, this is a wide range but 10 million is the lowest estimate and what's even more important – this number is growing. Now, the newbies who believe it is high time to invest are entering the market. These newbies will inevitably replace hodlers who keep mumbling something about waiting for the exchange rates to grow again, as well as conventionalists who are waiting for nobody-knows-what. Well, in this case, the feeling that you have grabbed God by the beard (this is a well-known Russian expression which means a person considers himself very lucky) is the first sign of intellectual disability.
And what are the highly efficient Fat Cats doing now?
We have basically spent this summer negotiating with international companies as we consider the international market our priority. Well, we have actually started the project in Russia but I have to admit that nothing good will happen there in the near future, our sector included. I have neither time no desire to worry about it, that was why we have prepared the platform to function in different languages. It means we can add a new language in just 15 minutes, so don't be surprised if our website suddenly gets a Portuguese or Vietnamese interface. In addition, the loading speed of the website will increase owing to the improved data storage architecture.
Secondly, we have made an agreement with a Chinese company that has published 2 000 goods with English descriptions on our marketplace. Those are mainly gadgets. As sales grow, our Chinese partners are willing to expand the product line up to 70-80 thousand goods. The important point here is international delivery. Since we and our partners are interested in the project, we'll pay a lot of attention to customer support and service.
We are also negotiating future partnership with Japanese and Swiss companies. I have to say the negotiations will take some time because of cultural specificities: Chinese are very quick and easygoing, while Europeans and Japanese do not rush things and prefer to relax during the last summer month. Nevertheless, Fat Cats are patient. We are now working on a car project – Europeans want to buy brand new Japanese cars with bitcoins and we are ready to assist in this process.
We have many questions about the development strategy of Fat Cats
My business strategy is rationality. I am always ready to adapt to the market demands and it does not necessarily mean that the customer, let alone the investor, is always right. It's quite the opposite – people usually have no idea what they really want. You have to look at a situation from the outside in order to obtain strategic vision. You have to separate yourself from your business and be really flexible. Like a cat.
For instance, we wanted to create some kind of a classifield when we just started – and we made it. But now I see that it does not conform to the current market demands. It appears that cheap goods such as used mobile phones and pre-owned cars are not in demand. At the same time, one-of-a-kind goods (e.g. paintings and sculptures) or rare (e.g. vinyl records and turntables) or just expensive ones (e.g. the good old iPhones X with the largest storage size) are quite popular and sell well. Consequently, we will now publish more ads in these categories, adapt the website design and its architecture. We will also have to change our team of programmers and designers.
And here is what we have successfully guessed right from the start — strategic orientation on advertising revenues. Social networks, Youtube and other popular platforms impose more and more restrictions on promotion of anything connected to crypto. Corporate policies 'for all the good against all the evil' open up broad prospects for Fat Cats. We already deposit 20% of our revenues in a special bank account, just like we promised to our investors. Yes, we don't have much money on the account just yet but that's okay, since the project started making money 4 months after we had finished the ICO. Try to find another project like this in the crypto world and I'll be more than happy to invest into it. Seriously, show me someone who showed his project's cash flow just 4 months after the ICO. Such projects are really rare.
Oh, actually, people keep asking if it is the right time to buy Bitcoin or Ethereum and what tokens they should invest into.
In Fat Cats of course! Well, you may also invest into our business rivals in case you don't like my face (and 99% of investment decisions are made exactly like this – you either like the project or not). When I say rivals, I mean projects that regard crypto as a real payment method. Few people know that Bill Gates had once invested into… Apple and that helped Jobs to lead the company out of crisis. And you know what? I totally understand Gates. Only a stupid businessman wants to be a monopolist. A monopolist may feel comfortable here and now but he has no future. Bill Gates has lost his monopoly, sure, but now we all live in a digital era and Gates is not a poor guy either.
Certainly, you shall make sure that investors' money will be spend on the development of the project and not on some guilty pleasures inherent in the nature of startuppers. I feel really sorry for many our rivals who go bankrupt because of expensive cars. As for me, I deliberately drive Nissan March and I have to say this car is quiet popular among smart and not poor guys. Anyway, I got a bit distracted here.
I see no point in buying such coins as Bitcoin or Ethereum now. First of all, as I have already said – crypto is overpriced. Secondly, nobody prevents you from earning Bitcoins or Ethereum for your goods and services even as we speak. Our marketplace made it obvious that those who are not ready to pay with fiat, are often willing to pay with crypto. And it becomes more relevant as the crisis escalades.
So, don't buy Bitcoin. Buy Fat Cat's GSXC tokens and I'll try to make you as happy as Amazon's first investors were. Or even happier.
It is actually your confidence that scares many people off...
Well, this may be my mistake but I assume all responsibility, risks and expectations. I never hide. I talk about my mistakes and bankruptcies openly and honestly. It does not mean I am so bold and straightforward that I always say exactly what I think; this would be fatal for business. But I am a person of integrity. This is the whole art of it: you shall always adapt to the constantly changing world but stay true to yourself.