CEO profile

Reggie Middleton - Howard University

Veritaseum Capital
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Reggie Middleton
Founder and CEO, Veritaseum Capital 
An interview with Reggie Middleton, Founder & Chief Executive Officer, Veritaseum Capital

 

Our exclusive interview on The DeFi Leader with REGGIE MIDDLETON, financial analyst, entrepreneur, investor, and CEO of Veritaseum Capital, examines the potential of decentralised finance, the application of precious metals, and wealth creation through a new revolution in fintech. Executive Global called upon the champion of investment forecasting and progenitor of DeFi to discuss macroeconomics, central bank policy, his new patents, and disintermediation of legacy banking, as well as the implications for affluent institutional and private clients. 

Reggie Middleton CV

 

BORN

New York, United States
 

ALMA MATER

Howard University
 

EXPERIENCE

2022 Established a headquarters in Kelowna, British Columbia.
 

2017 Faith Wilson Realty Group became affiliated with Christie’s International Real Estate, an iconic 250 year old brand.
 

2016 Received a Lifetime Award for being in the top 10% of Realtors in the REBGV, now for over 26 years.
 

2014 Who’s Who in Luxury Real Estate awarded Faith Wilson for Significant Sale 2014 for the sale of The Mayfair.
 

2011 Opened the doors to our new brokerage Faith Wilson Realty Group.
 

1995 Top 10% of realtors in the Lower Mainland and each additional year to present day.

The Defi Leader


EG: As a seasoned investor in residential real estate, having successfully called the 2008 housing crash and the collapse of Bear Stearns, what strategy would you deploy to mitigate against the impact of interest rate rises upon the market? 
 

Reggie Middleton: Amazingly, few seem to realise the farce that is the central bank actually having material control of over natural market rates. Rates have already increased! Why? Because mother market says so. The 10 year Gilt rate has increased ~100%. The US 10 year treasury is up about 40%. These are far from inconsequential spikes, and they have occurred despite rampant asset purchasing by both central banks. Farce!!! As for how to hedge against it, I would pile into tech and real asset growth opportunities, but be extremely wary not to overpay for them, since they will materially become cheaper as rates rise. As they get cheaper, if you choose wisely on a fundamental basis, you are buying future growth cheaply. In addition, the only hedge whose correlation should not be broken would likely be inverse bond ETFs. 

EG: Canada's controversial government overreach with broad sweeping, open-ended legislation, ostensibly aimed at penalising the Canadian truckers convoy, sets an ominous precedent which could later be utilised to target individual citizens who may not acquiesce to such Draconian measures in the future. With similar issues affecting the banking systems in Cyprus and Greece in the past, how could social credit-like state authoritarianism steer people in the direction of decentralised (DeFi) and private finance (Pri-Fi) solutions in the future?
 

RM: This is likely to be a byproduct of the Canadian, and to a greater extent, Russian, crises, The need to operate outside of the restrictive fiat environs have been made apparent to those who are outside of the core crypto industry. We have already seen this in the movement of crypto prices. Contrary to popular belief, crypto markets aren’t truly decentralised, for if they were you would not be able to see centralised pricing. This is simply common sense.

The centralisation of crypto assets came as a result of the institutional financialisation of crypto (Wall Street and London), where the same pools of capital that engorge on traditional assets feast upon the crypto assets in the same fashion, using the same tools, techniques and methodologies. Thus, the convergence of correlations. If you run the correlation from 2009 until today, you will see this convergence up until the Russian crisis, then you will see the assets negatively correlate. Why? Because there is buying pressure in the more liquid and privacy-based technologies (remember, crypto is really software, not an asset class, per se) and that pressure has lifted prices relative to the highly manipulated equity and fixed income markets. The source of this buying pressure is the realisation that many players need to avoid thehegemony that is
the USD, and to a lesser extent, the EUR and the pound sterling.

Utilitarian Vehicles for Solving Macro Problems

EG: As the Fed's balance sheet growth exceeds $10 trillion in assets and concepts of centralised, programmable, Central Bank Digital Currencies are tolerated- even though they just represent more of the same kind of banking malfeasance that debt monetisation and negative interest rate policies did to cause our global economic crisis, what potential role would precious metals-backed cryptocurrencies play in restoring a new era of trust and stability, similar to the worldbefore the events of the of Nixon shock of 1971? 

RM: That is much more of a statement than a question, but I will run with it since I don’t disagree. One correction, though…CBDCs won’t be more of the same, it will be more manipulable, leveraged, increase upon the same. I doubt very seriously that the established global leaders (governments) and their associated central banks will ever adopt precious metal-backed cryptos as legal tender. It is considerably too hard to debase, which is the entire purpose of leaving the gold standard to begin with. They may adopt PM-tokens as a step up to their accounting systems. On the other hand, retail, excursed CBs and SME currency holders are prime candidates for using blended, fully-backed and accountable PM tokens as the ultimate stable coin for trade and FX reserves.Russia is a prime example of someone who would dramatically benefit from something like that right now. Russia’s central bank parts ways with most powerful CBs around the globe in that they don’t warehouse their gold in NY or London, but in their own facilities, due to delivery risk. The reason why should be quite apparent to those following the news. As long as they work out the delivery issues, these PM-backed tokens would be the answer to much of their dilemma. I believe my firm was the first firm to sell programmable, deliverable, blockhain-based PM-backed tokens.

EG: Many cryptocurrency investors like to focus on projects that offer utility. Explain how your platform may utilise precious metals, cryptocurrency and smart contracts as a true utilitarian vehicle for solving macro problems? 
 

RM: The crux of our patented invention is the conditional transfer of value through a distributed ledger (i.e., blockchain) without the need for a middleman and little or no counterparty/credit risk. Put in regular English, or layperson’s terms, this means…sending stuff that is worth something to others with the guarantee that they will get what was agreed upon, and doing so without the need for big brother or rent seeking middlemen or unnecessary go-betweens.
 

Basically, this is the reincarnation of barter for the P2P, digital age. What many don’t realise is that this is the first time that currency (of any kind, not just fiat currencies) can be eliminated for many types of transactions. Currencies were initially implemented as a proxy for assets, commodities and services that were too unwieldly and/or cumbersome to transact with directly. The advent of currencies was a literal paradigm shift, a fintechnological breakthrough of its era! Over time, the use of currencies became bastardised and weaponised by governments and central banks, causing significant concentrations of power to a select few, and large swaths of relative poverty to a distant (and not so distant) relative majority. As powerful, and unfair, as these advanced currency systems became, they were a necessary evil…until now.
 

With the advent of P2P capital markets and DeFi, the assets, services and commodities that were historically proxied by currencies (and over the last hundred years or so, fiat currencies), can now be traded directly without the use of draconianly debased proxies, meaning human interaction and commerce (basic barter) can take place without inherent, baked-in weaponisation. Further, the elimination of counter-party and credit risk is just a mouse click or touchscreen tap away. This is an evolution of money, commerce and human interaction.
 

For particulars on how this is done, see my US patent https://patents.google.com/patent/US20170187535A1/en and Japanese patent https://patents.google.com/patent/JP6813477B2/en 
 

EG: Why do we see soaring energy prices, while gold merely remains stable and more interestingly, silver- the most scarce precious metal with immense industrial demand, manufacturing, medicinal and clean technology applications- remains on the floor? With rampant debt monetisation, do you see a revaluation and true price discovery occurring at any time soon?
 

RM: This is too long and in depth a discussion for this format!
 

EG: Tell us how your experience as a young finance entrepreneur in your twenties prepared you to succeed as a leader at the forefront of fintech today?
 

RM: My younger self’s experience taught me:

1. Diversity in knowledge and skill is mandatory

2. Despite number point 1, no one knows everything, and only a fool operates as if they do. Thus, capable, knowledgeable, creative, outside of the box thinkers are necessary in order to succeed against a status quo designed to keep you subjugated to them.

3. The hardest worker doesn’t win, the smartest worker does. In a room full of the smartest workers, the one that wants the prize the most is the one that usually gets it.

4. There is absolutely nothing new under the sun, except for the sun itself. IF you learn and understand history, you have learned and have the ability to understand the future. Just don’t be dogmatic in your adherence to historical instances. History teaches you patters, use your skills of pattern recognition to understand how to apply historical knowledge to future paradigms. Those who fail either don’t know their history – or don’t know how to let go of it.
 

EG: What was the most significant thing you learned about making your first million dollars in 2000? And with this knowledge, how much easier did it become to make your second, third and fourth million dollars?
 

RM: The most significant thing that I learned about making my first million dollars was that if made correctly, it’s the first million dollars that makes the send million dollars, and not me. The ascension to the capitalist class (those who subsist primarily from their capital) from the working class (those who subsist primarily from their labor, whether physical or intellectual) usually happens upon the realisation that stacking of capital should always come first and foremost. While this may seem like common sense prima facie, a quick observation of the behaviour of the world’s citizens tells us it is not. Thus subsequent millions are made by shepherding capital and having the capital do the work, If I am doing the work, then I am simply a labourer, and I can only make but so much money. Capital is capable of making untold amounts of money.
 

EG: With world central banks announcing they would allow unlimited QE, what would you suggest are some of the 'surest ways to wealth creation' using stablecoins, cryptocurrencies and precious metals today?
 

RM: Own the infrastructure of those projects and industries that provide the utility to stablecoins and cryptocurrencies. By owning the infrastructure, you (by default) participate in any upside, and are insulated against downside unless the technology itself fails through implementation or obsolescence. Therefore, I have chosen to focus on the IP underpinning the industry.
 

Precious metals are different. I don’t consider them to be investments, but rather Fx and debased currency stabilisation. They are the insurance against rampant debasement. If they are doing their job, you will make near zero real economic profit in precious metals, despite the appearance of making prodigious amounts of nominal accounting profits. The reason? You are using the wrong metric to measure investment gains and profits.
 

EG: According to Lynette Zang, Chief Market Analyst at ITM Trading, 'the financial system died in 2008.' If the central banks continue to monetise debt (printing money), we encounter hyperinflation, but if they stop- we may have a deflationary depression. What actions would you advise Fed Chair Jerome Powell to take in order to save the U.S. dollar, what asset classes must be recalibrated, and why?

RM: I look at the dollar differently than most. The dollars hegemony is powered by the militaristic, economic, technological and geopolitical might of the US, and NOT by how little it has debased the dollar. Honestly, the reason WHY the US can abuse the dollar to the extent that it does is because of this might. There is nothing that can currently replace the dollar, hence expect abuse to run rampant. The US will stop abusing the dollar when it no longer can, i.e., when it no longer has the militaristic, technological and economic dominance to do so. I repeat, this has very little to do with how much they debase the dollar. To the contrary, they debase the dollar because they have this power.
 

EG: Tell us about the newly granted DeFi patents you were awarded by the Japanese and the U.S. Patent Offices for a trustless value transfer system, as well as opportunities for platforms that may not be utilizing the full potential of this technology?
 

RM: The patents represent foundational technology, basically the technology upon which entire industries are based upon. They cover the “conditional” transfer of value through a distributed ledger (not just a blockchain) using a decentralised currency. Broken down to layperson’s terms, if you send value contingent upon something (almost anything) through cryptocurrency, the patent may cover it. The ability to perform said value transfer without having to trust the other side is an added benefit.
 

We pioneered this sophisticated value transfer at least 6 years before it was popularised by projects such as Uniswap, Compound and Aave, and envisioned (and patented) a much more robust and sophisticated toolset. While we are not as involved in active development anyone, we are more than happy to provide these ideas, concepts and inventions to market participants who voluntarily license our patented technology.
 

For example, we can include stable coin capabilities in the Bitcoin lighting network, without having to use stablecoins. This essentially raises the Lighting Network’s utility to a lever above that of Mastercard, Visa and American Express, near instantaneously.
 

We can also implement blockhain-based escrow and dispute resolution. Imagine the entire retail payment system of what many may consider 3rd world nations, running on technology that is superior to that of the US and Britain, sporting a cheaper, faster, safer, more transparent and auditable and drastically more capable feature set.
 

This is but one embodiment of the many permuations of the patented tech that we offer as a value add.
 

EG: You have been working with the Jamaica Stock Exchange more recently. What does your revolutionary intellectual property at Veritaseum enable for legacy banking systems, capital markets, financial institutions, brokers and traders?
 

RM: We worked with the Jamaican Stock exchange, one of the largest stock exchanges on the African continent and had verbal and email agreements to work with one of the world’s top ten exchanges. I will list the prospective advantages, but in arbitrary order.
 

EG: As the proliferation of these new technologies, cryptocurrencies and stablecoins continues to develop over the next few years, what exciting projects in your personal opinion may deliver the next x1000-level returns due to their critical utility and function in the economy?
 

RM: We worked with the Jamaican Stock exchange, one of the largest stock exchanges on the African continent and had verbal and email agreements to work with one of the world’s top ten exchanges. I will list the prospective advantages, but in arbitrary order.
 

EG: It would be fair to refer to you as The De-Fi Leader and the pre-eminent specialist in peer-to-peer capital markets. What excites you about the future of decentralised finance?
 

RM: Quite frankly, what excites me is what is missed by practically every pundit and practitioner in the space. That is, the virtual elimination of money (or more aptly put, currency), itself (reference the macro value of our products and inventions above). As most successful macro practitioners over time can attest, MISADA, or… Money is a Depreciating Asset!
 

There will always be uses cases for currency, but a very, very wide swath of value transactions (ironically enough, even currency transactions) can now be done without currencies as a middle layer, proxy or go between.   EG

For more on the concept of MISADA, reference:

>Veritaseum: MISADA, or...Money Is A Depreciating Asset

>MISADA: Money Is A Depreciating Asset - A Layperson's Primer on Wealth Creations Via Crypto, part 2

>MISADA: Money Is A Depreciating Asset, pt 4, Veritaseum IP Created to Disintermediate Rent Seekers

>MISADA: Money Is A Depreciating Asset, pt 5 -Crypto Adoption, Evaluating IP & That PARADIGM Shift

>MISADA (Money Is A Depreciating Asset), Pt 6: The More You Save, The Poorer You Get - PERIOD.

Reggie Middleton
Executive Recommendations


PRODUCTIVITY

Productivity comes from consistency. 
 

STRATEGY

Strategy encompasses having a very honest and thorough examination of where your company currently is.
 

PROFITABILITY

Profitability in business is a simple equation. Income versus expense.

Reggie Middleton CV

 

BORN

New York, United States
 

ALMA MATER

University of Hard Knocks
 

EXPERIENCE

2022 Established a headquarters in Kelowna, British Columbia.
 

2017 Faith Wilson Realty Group became affiliated with Christie’s International Real Estate, an iconic 250 year old brand.
 

2016 Received a Lifetime Award for being in the top 10% of Realtors in the REBGV, now for over 26 years.
 

2014 Who’s Who in Luxury Real Estate awarded Faith Wilson for Significant Sale 2014 for the sale of The Mayfair.
 

2011 Opened the doors to our new brokerage Faith Wilson Realty Group.
 

1995 Top 10% of realtors in the Lower Mainland and each additional year to present day.

Reggie Middleton is an American entrepreneur who is the acting CEO of Veritaseum and the finance and technology blog, Boom Bust Blog.
For further information, please visit interact with Reggie Middleton directly via Twitter - @reggiemiddleton