CVA Podcast: Ali Mizani Oskui, FiCAS

16 Dec 2020 · 29:33

FiCAS founder Ali Mizani Oskui discusses quantitative valuation methods for crypto assets, covering how his firm applies rating and scoring frameworks to assess whether a token's design actually captures the value its underlying protocol creates. The conversation addresses why most retail investors still lack rigorous tools to evaluate token fundamentals beyond price charts.

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[Music] hello hello this is your host trash ahmed ready to kick off another bite size episode of the crypto valley association podcast a special thank you goes out to script for supporting us now let's discover together the growing trends of this fast-moving space and try to shed some light on the mysteries it contains today we are joined by ali mizani oscui founder of ficus a specialized crypto asset investment firm committed to delivering better than market performance through actively managed crypto investment products so let's dive straight into the hidden world of asset management ali great to have you on the show how are you doing

hello thank you for having me very well everything is very well i love this beautiful morning in zulu and and everything okay thank you for having me oh my pleasure so let's dive straight in maybe you can share with us your first blockchain related experience my story about blockchain how i how i find out blockchain hawaii somebody introduced me bitcoin is very interesting in 2007 i was writing a book about future about downloading brains to computers and you know at that time my question was

was this is a human being able to immigrate to virtual world like matrix and after after several years i studying the neuroscience a lot of things i find out that not only it is possible but also it is very near and because of growth of technology because growth of technology is not linear it's exponential and so i i found out that okay this can be true but i had a problem i had i had a question also about the concept of gold in virtual world you know human being is gradually

immigrating to virtual world we have seen it already from smartphones about the social media and also covet 919 accelerated this process now a lot of people if they have coming communication with each other in uh zoom a lot of other software online so at that time my question was okay if we immigrate to virtual world in extreme digital world like matrix what will happen to gold because in digital world we can copy everything imagine you have a piece of gold and you can

copy paste you have a lot of golden digital so i i thought that okay we need something something like gold in individual world totally separated than real world i didn't know how to solve this problem in 2013 one of my friends called me and told me about bitcoin okay there's a there's a coin that uh with private key publicly they secured it there's only 21 million of them one of them you cannot copy it you can make transactions very fast in everywhere in less than 30 seconds i was shouting to him

buy for me this golden future and and at that time bitcoin price was 180. and i bought some and my story began it was very interesting oh wow and that's that's wonderful and then so and then did you dive straight into founding fikas so did something uh come before that when i bought it it is also interesting when i bought my first bitcoin after four years price fall down to 70 dollar what i was i i know i knew i did i

bought it at high at that time and but i knew that this is the golden future i didn't give up i waited i tried to i started to some trades and with that trades i i decreased my bitcoins also one-third you know i didn't know anything about trading i didn't even know that there's something right the name of the by the name of technical analysis but gradually i started i started to invent my tools at the beginning and after that i started to learn about about the trading and finally i i was able to increase next time i increased my bitcoin um i

tripled my bitcoins number and after that yes bitcoin went up to 1 000 and back to 200 again at that point i went to my family my friends that and asked them okay invest in this area kill hundred percent profit is yours about that we will share 50 50. we entered in 200 260 dollars and with trading i made each bitcoin 2.1 bitcoin and when bitcoin price was 18 000 um i quit also i went to television national television and i told people okay this is time to

quit and after two years it will fall down to one fifth and it happened with that trading i i made 90 times profit 99 times profit to my to some of my customers that came at the beginning i made more than 700 people rich in my country and it is my honor it's my honor wow okay and how did you know that it was time to to quit to get out at 18 000. combination of my old models i designed with ai system i i have i had some experience with an ai system with a technical technique i think also

at that time i had great team and also i have that great team and you know it is it was a very fantastic teamwork and uh i found out that okay with all of that evidence i thought at the time that everybody was telling okay it is going up you know it was huge formal if you remember at the end of 2017 yes it was huge for me that it was going to be one million and other things but i went to the land told it it is falling down be careful a lot of people told me no you you you are not correct

and i i told them you will see exactly it happened and went to one fits in five in in two years oh wow okay and so what would you tell those crazy people today when the price of bitcoin is above 18 000 are you still bearish i have have the fundamentals changed what are your thoughts on on the current uh market i will tell you about my predictions i had uh you know i had five predictions published when it the bitcoin price was around 900 dollar i thought it will go to 4k when it was also there i thought it will touch uh it will go up to 18k and from 18k i thought it would fall down to 150

have all of them happen when almost one one and a half years ago i had an interview and told at the end of 2019 bitcoin price will be between seven thousand and nine thousand dollars it happened also the same time one and a half years ago i told bitcoin price will be 20k at the end of 2020 and it happened again but not exactly 20k just just not and do you expect us to continue rising from here what are your predictions uh for the following year coming up i i have my predictions and on the everywhere if you search my name ali mizzani

of three predictions you will find out my predictions yes at the end of next year 2021 it will be between 200 000 to 300 000 wow yeah wow okay that's some some prediction ali i hope you're i hope you're right i hope you're right and thank you you know these are i i should tell disclaimer that i always had a disclaimer that this is this is my just my idea this is the prediction not not uh the advice is economical advice of course but um five times it happened i think maybe again happen sixth time is the charm right oh awesome and and maybe

so tell us more about fika's then because uh within ficus you're your crypto asset investment firm i guess it really combines your your passion and professional life together then yeah in 2018 when i close my fund because you know in the future i i see great future for crypto and i wanted to repeat that successful story again worldwide i started to search a lot of countries to to establish a fund fund of cryptocurrency because i i know how to trade i know to how to manage the risk i know to how increase the number of bitcoins quit on time you know security and

stability is is very important in crypto because crypto is very volatile and there is a lot of volatility theories storage risk you know these are the experience that normal people because they don't have most of them they don't have time to to educate themselves have this experience and i wanted to help people who want who want to enter into this area but by safe and easy way now you know you have heard about empty god 2014 government government went back and people lose their money there you have seen about you have maybe you have heard about kritsy mintpal these are these are experiences that are

very important it's not like stock market you go to some stock market by share and you you put your money there and you are 100 100 percent sure that okay your money will be always there there's something so i i feel that we should we should control this risk and i wanted to repeat this successful story i had in my country worldwide i started to search countries i went malta i went singapore i tried to have i found in cayman island you know finally finally i find i found crypto valley here zoo in switzerland and i'm very very happy about this decision because you know

at the beginning sweet said language switzerland is an amazing country with amazing people lovely people they're they are open for the new ideas yeah they have a lot of innovation i i like this culture i like these people when i came here i start like i saw hotel also government is very open for people this this was the thing that i needed it yes so i started to investigate about how i can make i can make infrastructure maybe fund maybe token security token maybe something that allow people to invest in cryptocurrency very easy and allow me to manage this investment we

at the beginning we tried private placement also we have actively managed the certificate amc but that product was for accurate investors you know also investors it will take a lot of time to you visit one by one then i didn't like that infrastructure finally we asked pwc one of the big core companies about audit to make infrastructure for us that i can i can help retail people i can irritate people can invest in this new product and we find finally finally after almost six months try we we could

we started our first etp in the world etp's exchange travel tradable product and this product has a lot of functionality has a lot of property that retail investors can come and invest here and in the background we trade with that different top 15 cryptocurrencies people also can invest very easily via their bank or any book very similar to share to exactly the stock market okay yeah yeah wow okay and so what would you say are the primary advantages of buying your crypto etp for example

other than just buying create a crypto on a normal exchange you know in every investment the first priority is to saving the money second private priority is saving money third priority is saving money hence priority is saving money after that is generating alpine get getting profit after that getting profit and after that to generate alpha and profit more than holding bitcoin you know in my previous fund in fact we we generated alpha and we made each bitcoin 2.1 bitcoin and finally and finally we quit on time and it shows that none of our customers

lost any money because we always increase the money and at the end we quit on uh yeah the property of the property the main property of our product is we can trade with all coins of 15 outcomes to increase number of bitcoins we so we can we can be better than bitcoin in long term not in short term in short term our main goal is to decrease drop down high drop down level i mean the main thing we have here to saving the saving the money and decrease the volatility

second goal we have is to diversifying diversifying custodians you know there is some funds big funds i don't name that fund in the world that have huge amount of cryptocurrencies but unfortunately they have just one one custodian it's very very dangerous it shows that they may don't have any clue about cryptocurrency you know cryptocurrency is not like a stock market you should diversify that storage plate you should diversify the the coin maybe today bitcoin is okay is number one coin but maybe the other coin like ethereum gets the market share of bitcoin maybe

channeling maybe other other coins so you should you should it's not like that you buy bitcoin and go home and after 10 years back and bitcoin you the value of bitcoin is there no it's not always like that you should be dynamic yes i will i will tell you about quantum computers and how how they can affect this they can have affect to this market so actively managed portfolio of perfect selected cryptocurrencies is the solution to get profit from this market with low volatility and with okay also diversifying is that the key

for saving the money we have all of them we have a lot of them okay well it's uh it's very very interesting and yeah security is a number one priority and you have a you have a tag line right a a slogan that says you invest we care i mean i i love it it's simple and straight to the point maybe give us a little bit more insight about how ficus cares more let's say than other asset management firms is this really because of the security what do you do to provide more care in this way yeah we have six custodians at the moment and we will increase it also so if one custodian for any reason lose their money we still are safe and with for example one one month trade we can compensate the loss

so the first step is this that diversifying the custodian it is a little bit it makes a little hard for us to manage managing bankers again is very easier than managing fixed custodian but we handle this but we accept this second we have great team highly experienced great great team and we have a trading community our high experience people that uh till now they helped me in previous fund also in my country they helped me also we have quant system that's helping us you know our decisions are discretionary they are not we don't

give money to quant system but this quant system and ai system are helping us to making the best decisions for how to how to trade so by this by these tools we manage volatility we try to get more product and we control we control the risk different different risks plus it is easy to buy it's we you are you know we try we are trying to make ourselves like a bridge bridge between traditional market and crypto uh crypto area the area is totally different than the traditional market a lot of traders a lot of asset managers that are working

in products in traditional markets when they come to crypto at the beginning at least they need at least three years experience to know what's going on fundamentals are the same technical analysis are the same yes but crypto has something that you need your own experiences you need to lose some money before you start to help other people a crypto is it is it has a huge amount of a lot it is wild because you you know you should know the how to control oh yeah it definitely is is a wild place and so in in this in this wild place where we have bitcoin blockchain technology that is meant to disintermediate in in a way

how do you believe the asset management space is going to develop in in the cryptocurrency and blockchain as fair over the coming years south african automotive invented very interesting system this is a system blockchain technology is is uh amazing system that satisfy that mechanized trustness anybody in blockchain technology lie he will lose money so it was the the best invention in last 500 years in economy this technology have is not exactly about money it's not about decentralizing them

just money in the future the technology is inspired from blockchain technology will decentralize the power will will change the shape of governments will change the shape of countries and i'm seeing and i'm futurist i'm seeing this this charts i'm seeing these trends that human being is going to immigrate to virtual world step by step we were doing colonel virus activated this process but this is destiny of human being we should we should go more to this to this and you know and blockchain technology is one of the key parameters there to decentralize power

um let me let me say you in a little bit extreme digitalization in extreme digitalization we will live in a world like math my book is about this how we how we can download brains what is consciousness who is inside our eyes looking to the world will be will we be able to download this consciousness in computer can we make robots that feel consciousness inside them what is qualia what is color what is pain are they real these are the questions that i answered in my book and the answer leave us that yes we will we will live in extreme we can human being

is able in future and like maybe until 2016. we will be able to also cure the cure death death in some kind of illness we can human being can cure it i don't believe that this is destiny no we can't cure it so uh this digitalization stream digitalization there are some threats also you remember the matrix movie yes some government some big power some scientists that downloaded down downloaded our brand to here says okay big go mad and says okay i'm your god worship me or i will change your paradise to hell what should you do

so decentralization of power is more important than the centralization of money this is just beginning this is the centralization of money is just beginning the main target of blockchain technology and the technologies that we inspired from blockchain technology not exactly reluctant technology will decentralize the power will decentralize the government will decentralize the country i asked my i asked my data scientist to make logarithmic regression of total market cap of cryptocurrencies as i told i'm i'm futurist and they simulated they they made this chart for

me logarithmic regression of total market of cryptocurrency this chart shows that in at the end of 2021 just one year later total market cap of cryptocurrencies will be between 5 trillion to 13 trillion dollars what does it mean now total market capital cryptocurrencies are 500 500 billion so i asked my data scientist okay continue the chart i want to see after 50 years what will be total market gap of all cryptocurrencies i thought okay

30 trillion will be maximum maximum will be 20 trillion dollars maximum will be 50 billion you know total market cap at the moment in the world is 85 trillion dollars and when they continue the chart i still i saw that the price is going up and the total market cap is growing up and it is more than thousand thousand trillion dollars it was very strange for me because that chart we use matlab the software for that and that chart has very detailed data a lot of data it's it meaning it is meaning that we have very

acure charts here and why it shows that after 50 years mark total market tap will grow up that much i find that that there is two parameters will happen in this chart not only cryptocurrencies will be mainstream but also fiat monies are going to lose their value dollars is going to lose its value if you see last 30 years from 1970 you will see that purchase power dollar is going down and now it is 120s 20 time is less than 30 years ago purchase power dollar this trend will be

will continue and will be accelerated it is not good thing it's also it has some threats because because dollar is back up money uh for a lot of countries and this domino if happened we will have huge a huge problem in the economy next five years starting from next five years yeah so this is very important sign also from that chart i found out that there is another important thing you know fiat money is main power that governments have they control nations they control they have this this is consum money is not just money there's some control the controlling tools for

economy for it's in each country so if fiat money lose its value maybe it has affect to countries governments to concept our countries concept of money concept of the value of fiat monies in any countries can affect you and you know we will have a lot of change in the future but not not bad chance there you know these these are very interesting we will have more freedom in future we will have more change in concept of power and you know blockchain technology is just beginning well thank you so much uh i'll leave that futurist and and borderline scary vision version

of the future it's not scary it's good i i thought you know yes any changes at the beginning seems okay it's scary and no we should not do that no why not every change every change has a lot of good good parts and actually these charts don't show that some power from from out of the universe will come and make this change the human being will select this change yes because it is good for them yeah let's let's say right only time time will tell and unfortunately our time is up here today but it was very inspiring ali thank you so much maybe do you have any final words you'd like to share with our audience before we um

finish here today at the beginning again thank you for having me here and you know blockchain technology cryptocurrency is future of the money it is very risky to not have this asset class in your basket i tell this for asset managers the utl asset managers are not just saving generating editable profit five percent ten percent profit in fiat that is just numbers they should think about value of that money fortunately in switzerland you have very strong money we have very strong money this is very good anything i told it is

about general world most of the countries especially dollar maybe in switzerland most asset management managers don't see huge threats because they use stable money but they should think from now on they should think about saving saving the purchase power of their their customers not only just increasing dollar numbers in their in their basket no it's true it's it's yeah it's kind of that saying whereby is the value of your bitcoin increasing or is the value of the fiat uh currency that it's representing decreasing right but uh it was it was a wonderful uh chat ali thank you so much for the inspiring uh the inspiring words and

if you all enjoyed this conversation feel free to check out more on our website cryptovalley.swiss where we host plenty of events educational content and even provide information on how you can join our growing community thanks again ali for joining us thank you very much and finally i i want to say huge thank you for swiss people you know switzerland has they are very open for new ideas i like this culture i like this culture and you know i love these people thank you very much my pleasure and yes it's a lovely place to be so stay tuned stay safe and until next time from the crypto valley in switzerland bye-bye bye-bye thank you very much

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