As we find ourselves at the midpoint of 2023, it’s a perfect time to reflect on the transformative journey that Lotus Capital Hub has embarked upon. From rebranding to groundbreaking developments, this year has brought both challenges and triumphs that have shaped the course of our company’s evolution.
A Holistic Vision:
With the successful rebranding from Lotus Capital to Lotus Capital Hub, we’ve boldly ventured into a realm of expanded possibilities. This shift signifies our commitment to offering a comprehensive range of services that extend far beyond a traditional launchpad model. By aligning our scope with our overarching vision, we’ve set the stage for a dynamic future.
Empowering Security Through KYC:
Implementing a KYC (Know Your Customer) system was a pivotal achievement for Lotus Capital Hub. Through an ongoing partnership with seon.io, we’ve ensured that our platform remains a secure space for all members. The added feature of locking KYC-approved accounts to specific wallet addresses enhances security, preventing unauthorized access and providing users with peace of mind.
Venturing Beyond Chains:
Our determination to move beyond a single reliance on the BNB Chain led us to explore various bridge solutions. While this journey presented challenges, it also highlighted the importance of self-sufficiency. This realization became even more evident after a less-than-productive experience with the Synapse Protocol Bridge.
Discovering New Avenues:
In our quest for better solutions, we crossed paths with LayerZero Labs—a beacon of innovation in the blockchain landscape. LayerZero Labs introduced us to a Layer 0 chain that facilitates cross-chain communication. Overcoming initial hurdles, we successfully deployed contracts on testnets, making progress toward bridging networks.
Trailblazing in Company Formation:
Parallel to our technical pursuits, we embarked on a journey of company formation. The decision to register a Vietnam company was rooted in our aspirations for investment opportunities and industry insights. However, the Vietnam Blockchain Association didn’t meet our expectations. Despite hopes that it would connect us with experts and investors, it turned out to be more of a marketing list for events.
Closing a Chapter:
The experience with the Vietnam Blockchain Association, coupled with the lack of regulatory development in Vietnam’s blockchain landscape, prompted a difficult decision. By the end of 2022, we recognized that maintaining the Vietnam company held no value. In light of this realization, we made the choice to close the company and pivot toward new possibilities.
Fostering Innovation Through Global Engagement:
In an exciting stride towards our mission, we introduced an online pitchfest that garnered tremendous enthusiasm from startups worldwide. The influx of exceptional applications marked a significant milestone for Lotus Capital Hub, solidifying our role as a steadfast supporter of startups’ fundraising endeavors. As we embarked on this journey, a valuable lesson emerged. The vibrancy of African startups resonated strongly, although the current investor network’s scope predominantly caters to European companies due to established processes tied to a London-based SPV setup. As we gear up to recommence the pitchfests, our commitment to nurturing startups remains unwavering. We eagerly anticipate extending our support to entrepreneurial ventures across the globe while upholding the high standards that define Lotus Capital Hub’s engagement.
Enhancing Partnerships and Global Reach:
In our pursuit of holistic growth, we’ve forged a valuable partnership with Upliers. This collaboration equips our partners with essential tools to develop content, drive effective marketing strategies, and create impactful websites. Upliers’ expertise serves as an integral asset for any business seeking to excel in the digital landscape. With a global reach, Upliers collaborates with leading companies across the world, further enriching the diverse network that propels Lotus Capital Hub forward.
Strategically Positioned in Delaware:
Navigating the intricate landscape of regulation led us to Delaware, a jurisdiction known for its forward-thinking stance on blockchain. Recognizing the need for a solid legal foundation, we registered a DAO (Decentralized Autonomous Organization) in Delaware. This choice was driven by the clarity and structure that the state provides, enabling us to operate with confidence.
Navigating Regulatory Realities:
Anticipating regulatory clarity, I believed that the United States would implement comprehensive crypto regulations through congressional action. Surprisingly, regulatory enforcement has been the approach, with the SEC addressing matters through legal means rather than offering clear rules from the outset. The appreciation lies in the recognition by Republicans of crypto’s value and its potential to drive entrepreneurship and economic growth.
The Value of Regulatory Certainty:
The uncertainty surrounding regulations played a role in my decision to register the DAO as an LLC. I envision a future where the USA establishes unambiguous rules, providing a solid foundation for businesses like ours. The SEC’s lawsuit against Coinbase was unexpected, but it reinforced the importance of legal understanding. In response, ChatGPT became a crucial tool in crafting new legal documentation, expressing my compliance with the law and the operational ethos of Lotus Capital Hub.
Empowering Legal Documentation with ChatGPT:
ChatGPT’s role extended beyond just support—it became an integral part of our legal document development for the DAO. From addressing regulatory challenges to ensuring legal clarity, ChatGPT facilitated the creation of documentation that aligns with our principles and the evolving regulatory landscape.
Laying the Foundation:
With Otoco, we’ve laid the foundation for a new legal structure for Lotus Capital Hub. Our DAO in Delaware encompasses all assets, including wallets, and streamlines our operations within a secure framework. This step brings us closer to realizing a dynamic and robust future.
Seizing Regulatory Opportunities:
Delaware’s framework for DAOs offered a structured environment that aligns with our vision. This strategic decision empowers us to operate within defined legal boundaries while embracing the decentralized ethos of the blockchain. The DAO structure fosters transparency, innovation, and adaptability—core principles of Lotus Capital Hub.
Hong Kong’s Regulatory Landscape:
Amidst our progress in Delaware, we also navigated the evolving regulatory landscape in Hong Kong. While the USA’s approach to regulation remains complex, Hong Kong’s proactive efforts to define regulations for crypto and Web3 solutions present promising opportunities. This region’s willingness to engage in thoughtful dialogue serves as a beacon of hope for regulatory clarity.
Challenges in STO Structuring:
Although the path forward became clearer, the STO structure presented challenges. While the SFC clarified that decentralized crypto remains unregulated, the specifics of STO compliance proved elusive. This uncertainty hinders experts from definitively structuring an STO, creating a dilemma for companies seeking regulatory alignment.
Hong Kong’s Regulatory Progress:
The horizon, however, is promising. Hong Kong’s proposal to develop regulations for Web3 and consider a semi-private blockchain framework signifies progress. Tokens on this blockchain would be subject to regulation, potentially aligning our token with STO compliance. Such advancements give hope for a more streamlined path in the future.
Strategic Considerations for Lotus Capital Hub:
Entering the Hong Kong market under our current understanding involves calculated financial planning. Acquiring a Type 1 license comes with a $200K price tag, coupled with the need to recruit employees and manage operational costs. This projection emphasizes the significance of raising capital—a target of $2.5M—to secure a promising future.
Pioneering Toward Future Horizons:
As we set our sights on the latter half of 2023 and anticipate the dawn of 2024, I am committed to a path of strategic fundraising. My approach remains anchored in a comprehensive understanding of the Hong Kong regulatory landscape, ensuring that Lotus Capital Hub establishes itself as a legal and compliant entity in the market. The evolution of web3 regulation holds the potential to reshape the financial landscape, potentially minimizing the need for an extensive fundraising effort. Should this scenario materialize, I am fully prepared to adapt my plans accordingly. Immersed in the journey of making Lotus Capital Hub operational across various chains, I take pride in the hands-on approach that has underscored our progress. Demonstrating our operational versatility within this realm serves as a testament to our resilience and adaptability. Through this journey, I aim to showcase our potential to investors, highlighting that as we secure the necessary support to operate legally in Hong Kong, we are poised to leverage that momentum to further expansion. This expansion extends beyond geographical boundaries, encompassing the vibrant landscapes of mainland China, Europe, and beyond.