Interview with Elastos Co-founder, Sunny Feng Han:
“Building a Privatized Internet of Wealth”
Elastos’ CR Council Elections are in full swing, and the co-founder of Elastos, Sunny Feng Han, is participating as an individual member of the Elastos community.
On May 17, Mr. Han Feng was invited by CR Herald to have an interview on TikTok, titled, “Building a Privatized Internet of Wealth”.
This was translated by CR Press’ Joel Ma, and edited by Kenneth K.
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Why are you participating in the CR Council Elections?
I believe in the ideals of Mr. Rong Chen. Through two or three years of involvement, I have become more and more convinced that Rong’s idea of building a second-generation Internet is correct. By striving to build a Privatized Internet of Wealth, users can earn wealth. That‘s my slogan.
How will Elastos perform in the coming bull market?
I like to compare Elastos with NEO in its early days as I was one of the angel investors of NEO.
My experience with NEO was very valuable. Neo also went through a tough period, falling from the public offering price of RMB 1.2 to RMB 0.4. Until 2017, I felt that NEO did not have a clear direction or a vision. In the beginning, it was called antshares. What they basically did was get shares of a startup company on the blockchain, and then trade and circulate the shares on the platform. That method would be invalid, now.
Moreover, NEO also experienced a serious financial crisis during that tough period. The five-person team discussed laying themselves off. Da Hongfei even went with me to give CISCO lectures in order to earn a living.
In 2017, NEO finally realized that the hotspot of the next bull market was smart contracts and Ethereum. The team wrote smart contracts in Microsoft’s common language C#, which lowered the development threshold. With its own language being used, Microsoft decided to support it, and NEO gained great success.
I have gone through two rounds of bulls and bears. A project must outperform bitcoin when it comes to the bull market. If a project does not perform at least as good as bitcoin in a bull market, the project will eventually die as the community will gradually leave.
I mainly invested in three projects in 2017: Ethereum, NEO (as an angel investor), and BTS. The simplest indicator for my success in investing in these three projects was that they all surpassed bitcoin in the bull market.
In 2017, bitcoin price increased by almost 20 times, and Ethereum 30 times. It may seem that 30 times is not a big deal, but don’t forget it had increased by 100 times from the private sale price in 2015 and 2016.
NEO was quite miserable before 2017. After the price dropped from RMB 1.2 to RMB 0.4, it stayed in that range for nearly two years. Who would have thought that NEO could increase by 1,000 times in 2017. It was a miracle.
BTS performed very well also, more than a 200x in 2017.
Elastos’ advantages over NEO in its early days
First, the best thing about Elastos is that Mr. Rong Chen has built this concept for 20 years. We summarize his concept as the next generation of the internet, the Privatized Internet of Wealth. Now, the general trend is moving this same direction. Whether it is the central bank’s digital currency or Zuckerberg’s LIBRA, they all involve data privacy and are moving in the direction of digital assets. Despite the bear market, a hard core community has formed. I think that anyone who is participating in the election is of the hard core Elastos community, which has suffered through the Long March along with the core teams. This is where Elastos has done better than NEO. Maybe what I’m saying is a bit premature for everyone, so let’s see what happens in the next bull market.
Second, we have learned from NEO’s successful experiences. Da Hongfei values the international community and has formed a global community. This is not common in Chinese projects. Mr. Chen has a strong international background, so we also attach great importance to the international community. At present, it should be said that Elastos’ international and Chinese communities are relatively balanced as seen in the election of CR Council members. More than half are from the international community, and several have gained a place in the top 12. This shows that the international community is not to be underestimated.
Third, the global ranking given by third-party platforms is encouraging. The FCAS scoring system within CMC has published rankings that rank Elastos as the tenth most promising project in the world. There is also Coincodeca, a foreign third-party authoritative platform that ranks Elastos GitHub activities in 19th place. All this data shows that we are proceeding step-by-step, although it is still far from true success.
Fourth, Elastos has sufficient funds for infrastructure construction. I assure everyone that Elastos Asset Management ensures that bitcoin and cash is held at reasonable levels to support the core development team for two rounds of bull and bear cycles. No one needs to worry about this.
However, Elastos has also made mistakes in the past two to three years, very serious mistakes. I think the most serious mistake was unlocking the tokens of angel investors in advance. That happened when the community had not formed a consensus at all. The white paper was unilaterally violated. Looking back, no one benefited from it, and it incurred losses to multiple parties. For Elastos, the consensus at the time was so vulnerable, and the strike was very heavy. I participated in this decision, and I take responsibility. I have publicly apologized to the community many times!
We have also held several meetings internally and externally to summarize. Of course, we were very anxious. Everyone was. The US dollar returned from the MIT laboratory, my money made by angel investing the Newton program, and even the 100 bitcoins of the DACA association (I have already publicly apologized to the DACA association for this matter, and promised to personally return the 100 BTC to the association before the end of 2021), were used to support ELA’s price.
There was a rumor by a local media that I used ELA to make profit and I sold ELA at a high price to buy villas in the United States. To be honest, I wish that this rumor was true. If I really bought a villa in the United States that year, I could have sold it and taken millions of dollars to support the ELA price if needed.
The first issue Elastos will face in the next round of the bull markets is to survive. There may be people saying that I am still bragging, and ELA’s performance is definitely not as good as bitcoin.
Of course, it is not as good as bitcoin right now. Elastos is just a seedling. Bitcoin has grown into a large tree after 12 years. An infant who has just begun to walk can’t be asked to run faster than a teenager. That’s too much.
The marketing of ELA does not work. I think the most important thing is that we made Chinese buns where the filling cannot be seen. We should make pizza, instead, which means that we have to make more applications so everyone can see the stuffing on the outside.
We have made many buns in recent years, and there are so many good things inside but no one can see them. In the future, the strategy of Elastos to build a Privatized Internet of Wealth will let traditional internet apps create wealth for users. User data rights are their wealth, and this will allow the entire internet economy to escape from the monopoly of the current big brothers. This will be the revolution. If this revolution starts, the next ELA bull market will come!
How have you personally promoted this, strategically?
Recently, I read the book, “My Experience and Lessons”, by Steve Schwarzman, the founder of the Blackstone Group. One of his most successful experiences is that he strives to be the hub (router) of resources and information by collecting the information, processing it, and then distributing the work. In other words, by becoming a distribution center of resources and information.
This is consistent with my experience in the bull market of 2017. Because of my active participation in the community evangelism activities in 2013, I was able to set up the first community blockchain association called DACA, in Hong Kong, in 2014. I raised 300 bitcoins in total and went to 100 universities in China to promote bitcoin and blockchain. I also edited China’s first blockchain book, so in a sense, I became the hub of the Chinese community. Vitalik asked me to help him organize his first speech at Tsinghua University. Ming Gong also came to me to promote BTS in China. Da Hongfei asked me to be an angel investor in NEO. These have led to huge changes in my financial situation.
My experiences in success should, of course, be used for Elastos.
After I went to the United States in 2018, I met with President Trump, former Federal Reserve Chairman Greenspan, JP Morgan Chief Economist Jim Glassman, World Bank Chief Security Architect Zhijun Zhang, and other important people with the help of my friends. During my time at MIT, I was also actively writing the book, “Blockchain Wealth of Nations”, and collaborating with Alex Shipp of the Elastos community to prepare the English version of, “Era of Quantum Wealth”. Now, I am invited to serve as the first rotating curator of The Museum of Funds in China. I have just created a series of videos to promote the concept of the Privatized Internet of Wealth.
In August, 2019, responding to Mr. Chen’s second-generation internet initiative, I was joined by Zhijun Zhang, the chief security architect of World Bank, and then Long Wang, vice president of Tencent Cloud, Brian Xin from Elastos DMA, and some other teams to launch a data capitalization campaign in Shenzhen. The name was suggested by Mr. Zhang, and the project team of Leo on Elastos was established. It appears that it was a good move to launch the campaign. Of course, the epidemic that occurred this year has hindered our original plans, and that’s out of our control. However, we did adapt to the situation and Brian developed GreenPass as the epidemic became serious. GreenPass protects everyone’s health data and saves data to prove health. This is the first step to confirm the rights of personal data on a Privatized Internet of Wealth.
We have also organized a professional team in Europe and a professional promotion team in Vancouver. We have also formally applied to participate in the UN’s open solicitation for new technologies to fight the epidemic. We have established a 30,000 ELA promotional fund through the Manhattan Project Fund. I contributed one-third of that fund. This is all being promoted in parallel.
The Chinese Research Hospital Association opened a seminar on May 24 to set up a study group. This is also a national-level group. Mr. Zhang of the World Bank is also preparing to open a GreenPass seminar. DMA team has been making progress for the adoption of this application.
These funds are mainly invested by the Manhattan Project Fund and me. Of course, that includes the funding from CR. The CRC Interim Council has also given great support.
Several listed companies have already contacted me to discuss the use of the Privatized Internet of Wealth to help transform their network APP. It is also in discussion to cooperate with Tsinghua University and Shenzheng’s local government to establish a digital economy research institute.
Internationally, we are actively contacting the CEO of Blockstack. The cooperation is progressing smoothly, and in particular, GreenPass. The concept of GreenPass is in line with international standards, such as Union Square Venture and Libra, as all are promoting the privatization of data. We are actively planning in this field. This year, I hope to be able to hold the second annual meeting of the data capitalization movement. I hope there will be more applications by then like Trinity, this huge contribution from the Niu Jingyu team, and that we will have a new iOS ElastOS ready for more dApps. Our entire community is looking forward to these days. With real applications, it can be proven that the “Privatized Internet of Wealth” can be built, and it helps everyone see that wealth consensus can be reached in the future.
Push for more exchanges
The global community, whether it is international or Chinese, has yearned for more exchanges. The need has been there for two years, and I think it will get done. I think that it is only meaningful to be listed on exchanges when the bull market comes. It isn’t helpful to be listed on new exchanges in the bear market. The exchanges themselves are struggling and there is no liquidity. We were not being lazy on this matter but getting prepared for the right time.
But, now is the time. I was in Davos last December with Shousong Zhang. Everyone knows that he is the founder of Jubi. Jubi used to be the fourth largest exchange in China, and now it has re-established itself in Singapore. Of course, I responded to the community’s call and personally made a donation. We have successfully been listed on Jubi. Being Shousong’s old friend earned us some support in marketing, and I think the result was good. There was a 20% increase in price when we got listed on Jubi. I think the liquidity is about 30% of Huobi. Anyways, we will get on even more exchanges.
In foreign countries, I support Clarence Liu in Vancouver. They are preparing to get on a more internationally known exchange. The legal side is ready. I’ve made my stance that I am willing to donate to support this. I have a call with Clarence in the morning of May 17th. I hope he can initiate a community crowdfunding. I will donate ELA as the community does in a 1:1 ratio. We are aiming at 100,000 US dollars. Of course, we will apply for funding through other channels like CRC. I think that together, we can solve the funding problem.
What will you do if you are elected as a CR member?
If I am elected, there is no doubt that I will use the CR platform. CRC is the cyber republic consensus. This concept was proposed by Su Yipeng and is a place where community consensus is reached. I think this concept is well understood. If this platform is completed, it will play a vital role in forming a real wealth consensus for Elastos in the next bull market. Therefore, we are approving of Su’s work. If it succeeds, this will be a moment in history. Of course, the earliest idea was proposed by Mr. Rong Chen.
Finally, let me talk about the 16.31 million ELA issue that many people are concerned about.
I have already said that we have made very fatal mistakes. Of course, I have also read important opinions from a large number of people in the community. Like Zhang Qing, Mr. Lin of Elacloud, Alex Shipp who cooperated with me to write the Era of Quantum Wealth. They are traditional financial professionals. I admire their analysis of this problem, and I also learned a lot to enrich my financial knowledge. Combining these opinions, I personally prefer to burn 50% -80% coins in the first step. Of course, some community members want to destroy them all at once, the sooner the better.
I know what some people think. People who want this burn feel that as soon as tokens are destroyed, the price of Elastos will immediately rise. I will clearly say that this will not happen, in my opinion. Don’t be so optimistic. If it were so easy, I would burn coins a hundred times. I would even burn half of my own coins now. Of course it’s not that simple. I prefer a burn that is step-by-step. 50%-80% can serve as an assurance to the community. We can then discuss DEFI and stable coins on Elastos.
Let me make it obvious here. The 16.31 million ELA is temporarily kept by the Elastos Foundation. This is a multi-signature wallet. I have one of the private keys. I assure the community that unless CR reaches a consensus by voting according to the rules of CRC, none of these 16.31 million ELA will enter the market.
My goal is to be a hub and make good use of trends to bring together resources so that the Privatized Internet of Wealth can be built! Thank you all!