Pang Xue Kai on exploring the multiverse of cryptocurrencies

Tokocrypto’s Pang Xue Kai shares valuable resources to educate ourselves about the emerging asset class of crypto assets, their investment potential, and risks.

Before Pang Xue Kai became the CEO and Co-Founder of Tokocrypto, one of the largest crypto exchange platforms in Indonesia, he used to be an engineer in the oil and gas industry. “In 2015, I was first introduced to Blockchain Technology and crypto assets by a close friend. After learning about the technology and the potential of this new technology, and of course, the tremendous rise in the price of Ethereum and Bitcoin over the last few years, I started investing in Bitcoin and Ethereum,” Kai recalls the moment he became interested in the cryptocurrency and blockchain domain.

Long story short, Tokocrypto was born in 2018 to a group of crypto enthusiasts in Indonesia. At the beginning, Tokocrypto was supported by a company from Singapore, QCP Capital. Its mission is to onboard mass crypto adoption for Indonesia’s 345.3 million mobile users using Tokocrypto’s trusted platform and TKO ecosystem. Up until February 2022, Tokocrypto already has registered 2,500,000 users and an average weekly trading volume of USD 300 – USD 400 million. Interestingly, 66 percent of its users belongs to the 18-34 age group. “The interest in cryptocurrency among Indonesians is quite considerable, but the path ahead lies in the best form of investment, which is education. Thankfully, the Indonesian government has been very supportive of our efforts thus far and for that, we are truly grateful,” he shares further. Below are excerpts from Prestige Indonesia’s interview with the head of Indonesia’s leading crypto exchange.

First and foremost, what sets Tokocrypto apart from other exchanges in the crypto space?

The launch of Tokocrypto has three main agendas: to present the latest content and information related to digital assets, to reach out to blockchain and crypto-asset communities to share knowledge and understanding, and to involve the public in digital asset projects in Indonesia and Southeast Asia. Also, Tokocrypto is committed to expanding the use of blockchain technology in Indonesia by presenting TokoVerse, a blockchain ecosystem that includes TKO, TokoMall, T-Hub, TokoLabs, TokoScholars, TokoCare, TokoNews, and Kriptoversity.

At the moment, there’s a not-so-small group of people who are diehard crypto fans, and then there’s a majority of people who don’t even know what crypto is. How does Tokocrypto bridge the gap?

With various educational programs. There are educational programs at Tokocrypto, starting from using all social media channels, YouTube, TokoInvasion, AMA, T-Hub, Kriptoversity, TokoScholars. All have a mission to introduce more about crypto assets and the blockchain ecosystem.

Can you tell us a little more about your Toko token (TKO)? What are the core benefits of holding TKO, and how is it going to be distributed among the community?

TKO is a holistic CeFi+DeFi ecosystem built on BNB Chain (Build n Build). TKO is pioneering a dual-approach strategy for every Indonesian to participate in crypto for greater financial equality. It combines solutions, like Farming Pool and TKONFT, to provide unparalleled security and advancement. Global investors can get early investment exposure in the Indonesian market and leverage on a sizable crypto user influx in Indonesia. All while supporting and shaping the Indonesian crypto landscape. TKO community initiatives cover a dedicated community fund, continuous educational efforts for the Indonesian community, and iconic blockchain events like Indonesia Blockchain Week.

Could you talk briefly about your partnership with AZNVerse and what these partnerships will mean for Tokocrypto going forward?

Our goal is to widen the adoption of blockchain technology where we empower people through education and also encourage them to experience the technology themselves. With NFT becoming more mainstream, we want to be part of a strong NFT project where the project can be a good example for other NFT projects, especially in the BNB Chain by delivering the roadmap and benefits smoothly.

AZNverse is an NFT Collectibles project initiated by Tokocrypto with the help of our community. We present 10,000 unique NFT characters of “not so rich crazy AZNs” to represent diverse Asian cultures. Living on the BSC network, the NFTs come in four tiers of rarity. Holding AZN NFT gains you access to the CRAClub and services of Asia’s first crypto community hub, T-Hub, initiated by Tokocrypto. Over time, benefits and offerings to AZN holders will grow, all of which are aimed to help AZN holders gain financial freedom.

On the flip side, we’re intrigued about Kriptoversity as well. What’s your plan for this?

This is Indonesia’s first blockchain crypto-asset and trading learning app. It’s now available on Android and iOS, and users can complete various courses on specific topics. Each completed course will earn users a TKO and the token can be transferred to a Tokocrypto account wallet or donated via TokoCare. Our Tokocrypto research team will develop topics and curricula that match the interests and developments of crypto assets and the blockchain ecosystem to keep them relevant.

In general, what are your thoughts on crypto regulations in Indonesia?

Crypto asset trading in Indonesia has been regulated and supervised by the Commodity Futures Trading Regulatory Agency (BAPPEBTI) under the Ministry of Trade since 2019. BAPPEBTI has regulations that protect customers, traders, and other relevant institutions. I think the regulation of crypto assets by BAPPEBTI is not to limit the market, but to prevent the perceived risk of volatile or high-volatility assets. Regulation can increase market liquidity, provide investors with confidence, raise prices, provide transparency, and lower volatility. I agree with the view that crypto assets are still prohibited as a means of payment, but as an investment tool, they can be included as commodities that can be traded on futures exchanges. This regulation also facilitates innovation, growth, and development of crypto asset physical trading business activities in Indonesia, which have great potential for the growth of domestic startups and prevent potential outflows abroad. Crypto assets that emerge from blockchain technology are traded freely without government intervention. Thus, the market structure is perfect.

What do you see as the biggest challenges to cryptocurrencies? How does Tokocypto counter these risks?

Previously, the main challenge was in terms of blockchain and crypto awareness, but we have conducted a host of outreach and educational initiatives that has raised the level of awareness about blockchain and crypto. Presently, the main challenge lies in furthering these outreach and educational initiatives to equip Indonesia’s crypto community with basic investment skills such as those pertaining to fundamental and technical analysis, so that they would no longer resort to sentiment-based investing which is counterproductive, to say the least, and also how to have a supportive regulatory framework.

What advice would you give to somebody looking to start an investment in cryptocurrency right now?

The way to assess a good crypto asset is to do in-depth research. Investors can read these fundamental crypto assets from trusted sources, and one of the most important is reading the whitepaper. A whitepaper is like a prospectus for a company about to go public with an IPO. In the whitepaper, there is an explanation of the crypto project roadmap, tokennomics, the profile of the developer team, the technology used by investors who have joined the project.

Choose a crypto asset with a clear realization roadmap and a reasonable project timeline. This means that developers can realize the project to increase the value of crypto owned by investors.

After that, make sure the crypto asset company or developer has a good track record. One plus, look at already signed up investors and crypto funds, so they have a good business plan and cash flow for the long term. The point is that investors must “Do Your Own Research” (DYOR) and don’t “Fear of Missing Out” (FOMO) to follow investment trends in crypto projects that are not yet clear. More importantly, try to start with a small nominal and use cold money.

How do you think this whole ecosystem will evolve?

Crypto assets, especially in Indonesia, are still at an early stage. There is still room for growth and potential to be developed. The Crypto ecosystem can encourage the digital economy and make it easier for people who do not have access to financial services. We’re not talking about just crypto assets. Starting from NFT, DeFi, GameFi, and others, a blockchain ecosystem can still be applied and developed in Indonesia. Here’s the thing, Indonesia has the potential to become the center of the world’s digital economy by 2030. One of the driving factors for the digital economy is blockchain, and Indonesia’s contribution to the digital economy is also projected to increase up to eight times by 2030, which is worth Rp. 4,531 trillion.

With concern about inflation running hot around the financial sectors worldwide, could cryptocurrency become a new haven for individuals looking to preserve and increase their wealth?

Yes, I believe crypto can be a new financial haven. Investors now prefer to invest in Bitcoin compared to gold, whose price movements tend to stagnate, while Bitcoin price limit value always increases every year. Even Elon Musk has even stated that he will not sell his crypto assets even in times of high inflation. This is proof that crypto can be a guarantee for long-term investments