Conversation with the founder of Bamk.Fi: How did the first Bitcoin stablecoin protocol become a dark horse in the race?

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1. Introduction

2. Jack’s Bitcoin ecosystem journey

3. Jack’s Investment Philosophy

The concept of BAMK and NUSD

5. Build on-chain attention and community

6. Milestones and Goals for the Future

7. Conclusion

01. Introduction

Welcome to the Ryze Up program brought to you by Ryze Labs. Ryze Labs is a bridge connecting the East and the West, and we aim to accelerate the development of Web3 in emerging markets and influence the global Web3 world. Local Insights, Global Impact. Let’s embark on this journey together, Time to Ryze Up.

Host of this episode

Joven, Director of Business Development at Ryze Labs, focuses on expanding the influence of the fund in the global developer community, and provides strategic guidance to the fund’s portfolio companies.

Special Guests

Special guest: Well-known figure Jack Liu in the Bitcoin ecosystem, who has been involved in Bitcoin scaling as early as 2015/2016. Over the past decade, the Bitcoin ecosystem has seen significant development, introducing concepts such as ordinals, runes, op_cat, as well as various Layer 2 and sidechain solutions. Jack shared his unique journey and insights into the world of Bitcoin and cryptocurrency.

02, Jack’s BTC Ecosystem Journey

Jack’s journey into Bitcoin began in 2013 when he stumbled upon a white paper on Zero Hedge. At that time, the price of Bitcoin was around $175. Coincidentally, he came across an article about the opening of a Bitcoin ATM in Vancouver, so he purchased his first Bitcoin during his visit. Initially, the Bitcoin industry was relatively small and dominated by tech-savvy individuals, making it quite challenging for non-coders like Jack to enter this field. However, his passion for Bitcoin led him to become a blogger in 2013 and 2014.

Jack’s career took a major turn when Jesse Powell, the founder of Kraken, contacted him after reading Jack’s blog through Roger Ver. This led to Jack’s involvement with Kraken and later joining OKCoin, where he helped launch OKX. He also worked at Circle, witnessing the development and debate within the Bitcoin scaling community. Despite the emergence of other cryptocurrencies like Ethereum, Jack remains focused on Bitcoin and has made contributions to various projects and innovations.

03, Jack’s investment philosophy

Jack shared his investment philosophy, emphasizing the importance of simplicity and liquidity in the decentralized economy. He described his approach to evaluating cryptocurrency opportunities using the formula of ‘simplicity, novelty, and liquidity’. He explained that in the decentralized world, the goal is to connect with strangers globally, so investments must be easy to understand and widely accepted. For example, Jack pointed out that Ordi is the first BRC20 token on Bitcoin, and its simplicity and ease of trading on various platforms have helped it quickly gain market value.

Jack also reflected on the importance of seizing missed opportunities and adjusting investment strategies based on past experiences. He emphasized the need to identify and seize new trends early, even if these trends initially seem unconventional or risky.

04, The concept of BAMK and NUSD

Jack provided insights into the operation of BAMK and NUSD. BAMK is a meme token, while NUSD is similar to Ethena on Ethereum. The initial allocation of BAMK includes 6.25% for the public and another 6.25% for NUSD holders. The remaining token supply is reserved for future needs, such as potential venture capital or additional reward distribution. Jack emphasized the importance of sustainable growth and plans to burn tokens according to specific milestones. BAMK quickly became one of the top three runes by market capitalization after its launch.

NUSD is a synthetic dollar that operates on the Bitcoin mainnet. Jack explained in detail the need for stablecoins like NUSD on the Bitcoin mainnet, which provides a decentralized alternative to traditional stablecoins such as USDT and USDC. Despite the slower and more expensive Bitcoin transaction speed, significant on-chain activity has proven the value of NUSD.

Jack compared NUSD with well-known stablecoins such as USDT and USDC. Unlike these traditional stablecoins backed by actual US dollars in bank accounts, NUSD operates as an algorithmic stablecoin on the Bitcoin mainnet. This decentralized approach has attracted those who wish to avoid centralized exchanges and maintain on-chain transactions for Bitcoin holders.

05, Build on-chain attention and community

Jack’s insights on building on-chain engagement are particularly thought-provoking. He emphasizes that success in the crypto world doesn’t necessarily come from traditional marketing strategies, but from genuine interaction with the on-chain community. Instead of focusing on off-chain engagement, such as social media popularity or media exposure, Jack believes in the power of on-chain presence and activities.

For BAMK and NUSD, this approach means creating real value and engagement in the Bitcoin network. Jack mentioned that the rapid development of these projects is attributed to their organic growth, transparency, and active community participation. By issuing tokens on-chain and nurturing a decentralized economy, they have attracted a group of dedicated users who have contributed to the success of the project through trading, holding, and building additional tools and applications.

One prominent aspect of BAMK’s growth is its strong community engagement. Jack attributes this to a user-centric approach that prioritizes the interests of users rather than focusing on investor profits. This concept is reflected in the initial distribution strategy: 6.25% of BAMK is minted for free and open to the public, with an additional 6.25% of BAMK tokens airdropped to NUSD holders. This inclusive approach has resulted in a highly engaged community that organically contributes to marketing and content creation, aligning their interests with the success of the project.

Jack shared that BAMK’s Telegram group has grown from a small community to several hundred active members, who have increased the project’s visibility through creating memes, referrals, and content. This grassroots approach has played a crucial role in the project’s development, showcasing the impact of real on-chain participation and community building.

06, Milestones and Goals for the Future

Looking ahead, Jack discussed the future milestones of BAMK and NUSD. These include further growth in Total Value Locked (TVL), potential listings on centralized exchanges, integration with Layer 2 solutions, and broader adoption within the Bitcoin ecosystem. An important long-term goal is to reduce reliance on centralized exchanges by utilizing on-chain perpetual swap automation projects.

Jack also talked about the importance of organic growth and addressing any concerns about centralized exchanges before seeking listing. The ultimate goal is to ensure the long-term sustainability, transparency, and community benefit of BAMK and NUSD. It is worth noting that UTXO Management has invested $1 million in NUSD, indicating a certain degree of institutional attention to the project.

07. Conclusion

BAMK and NUSD are emerging projects that have been online for less than two months, but they have quickly risen to become the third highest ranked token in the runes. Their rapid rise has surprised many and made them a noteworthy presence in the Bitcoin field. It is interesting to observe developers like Jack creating the infrastructure and necessary tools for Bitcoin finance (BTCFi). While there are potential risks with synthetic dollars, it will be fascinating to see how Jack and his team tackle these challenges and continue to develop the project. We will closely follow the progress of BAMK and NUSD.