Bitpanda-CEO Eric Demuth in the Interview: Institutional investors get more and more into the market

The Austrian crypto-Broker Bitpanda is one of the leading centres for crypto-currencies in Europe. In spite of the bear market to 2018, the already founded in 2014 brokerage company could continue on its course of growth. We have one of the two CEO and founder, Eric Demuth, the Interview made with him about the future of the crypto-Broker business, gold savings plans and the regulation in Austria spoken.

By Sven Wagenknecht
30. May 2019BTC$8.724,00 0.02%part Facebook Twitter LinkedIn xing mail

BTC-ECHO: Since the ICO-Hype the end of 2017, many crypto-to-stock exchanges and Broker close. Continue the Trend?

Eric Demuth: This has to do with the ICO-Hype anything. ICOs were at that time [during the hype in 2017] of free-riders, the the scene were previously remote, abused. Of Bitcoin was affected but only indirectly. ICOs were just a test phase for what is to come in the future, namely a more transparent IPO opportunities. ICOs have shown that you can act through tokenization, a lot more cost-effective in the global capital market.

Just in the Broker area there was since 2013, an incredible number of new entrants to the Market. The behaved but, as in other industries: If the Team and the underlying substance is bad, can't survive the Start-up in the long term. The Mt.Gox also seen that The Team was simply overwhelmed.

BTC-ECHO: So, just a normal screening process that separates the chaff from the wheat?

Eric Demuth: Absolutely! This has to do with crypto or ICO for nothing, as in any market, those companies that deliver a good product. And then there is how in every industry opportunist, the go with of money [in the market], and just as quickly disappear again.

unlike the other companies, we were not pushed by VC Money [Venture Capital, venture capital], but have managed to build a good product, we are since more than two years to be profitable. In the new office in Vienna, we are now 110 people. We have never recruiten stopped.

BTC-ECHO: more and more established financial institutions, such as traditional exchanges, or Asset management companies also push the crypto market. You see here a threat to your business model?

Eric Demuth: This is actually something Good. It started in the United States. The financial markets have gone first in the crypto-market, have good money in Hand and Teams were formed. There is Bakkt in any case, to call the New York Stock Exchange, Fidelity and J. P. Morgan. Everyone is involved somehow. Europe, now, hesitant. Now: month-to-month, the requests will be noted is greater. The market is becoming more professional and institutional investors get more and more into the market.

BTC-ECHO: Now your offers, Recently, the purchase of physically secured silver and Gold. As you can imagine, what is the difference to classical certificates?

Eric Demuth: We did originally, because the gold trading is extremely popular. The Problem with this is that the often intra-saving duck products with high hidden costs. We thought then, to bring a product to market that combines all the benefits of Gold, but in spite of the digital age to meet.

We decided then to take physical Gold in secure storage in Switzerland and is insured.

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BTC-ECHO: And how does that work now with the update with you?

Eric Demuth: Quite simple. Just like you can buy about us crypto-currencies, you can load the digital Gold on your Wallet. The storage and insurance costs per week only 0,0125 per cent., which is unbeatable.

BTC-ECHO: Where is your Business Case is, if the fees are so low?

Eric Demuth: This is actually not a very profitable business, but serves to strengthen the Ecosystem of our platform. Ultimately, we want to democratize the financial market as well as digitize. A Kilo of Gold to buy, currently costs about two percent in fees. However, if you buy only one gram of Gold for 37 Euro, do you have a surcharge of almost 50 percent. In both cases, the surcharge is us at only 0.5 percent. By the way, you can also a savings plan for Gold, silver and crypto-currencies create.

BTC-ECHO: Auto Binance, the largest crypto exchange in the world, was hacked. How do the hackers to infiltrate stock exchanges and brokers?

Eric Demuth: these are not Hacks, these are usually Inside Jobs. First and foremost, this has to do with internal Policies to. Often it is a matter of convenience. Often, the Exchanges do not want to go in high demand for the Cold Storage and allow large sums [of Cryptocurrency] on the Hot Wallet are and you've got the mishap.

The question is simple: How much effort are you prepared to invest in the security infrastructure.

BTC-ECHO: you're sitting in Austria. How you feel is the regulation there? Have you ever wanted to relocate your headquarters to another jurisdiction?

Eric Demuth: We started in Austria, at one time, in which it played no role, where you a crypto-Business. The has developed well so far. We now have to stay in Austria. There we built a new office, with nearly 3,000 square meters of space. So quite an investment for the future.

with regard to the regulation: We have now received the PSD2-license [Payment services Directive, an EU-wide scheme for the FinTech industry] the financial Supervisory authority. That was the fastest payment service provider licence, which was ever issued. This shows the openness of the authority in relation to crypto Start-ups.

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