Reggie Middleton - Howard University
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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
New York, United States
2021 Japan and US DeFi patents granted.
2017 Launched VERI tokens and created VeADIR autonomous financial software.
2014 Filled DeFi patents.
2013 Started Veritaseum, entered the crypto and blockchain space.
2007 Started the renowned BoomBustBlog.com
2000 Started distressed real estate investment business.
1995 Created NuoMedia.com, essentially Google Docs 11 years before Google Docs.
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.
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 the hegemony 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. 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 counter-party/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. 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: 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.
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 second 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.
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.
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.
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.
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 involved in active development anymore, 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.
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 in the Caribbean 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 use 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:
Sleep is very important. Thinking is next on the list.
Approach things from the perspective of what you don’t know.
In a simple phrase, risk vs. reward.
» Granted foundational tech DeFi patents JP6813477B2 and US11196566.
» Created world’s first NFT-based tax credit tokens.
» Created world’s first, blockchain-based, redeemable gold-based token.
» Created the VeADIR, world’s first autonomous smart contract driven investment vehicle.
» Officially Patented DeFi.
» Invented decentralized finance (DeFi), created the world’s first, ZeroTrust P2P swap over the Bitcoin blockchain.
» Predicted, the collapse of Bear Stearns, Lehman Bros, real estate crash, among many others.
Reggie Middleton is an American entrepreneur who is the acting CEO of Veritaseum and the finance and technology blog, Boom Bust Blog. Reggie has advised tens of thousands of investors, traders, hedge funds, family offices and global banks. Mr. Middleton publicly predicted the fall of Bear Stearns, Lehman Brothers, GGP (2nd largest US retail REIT), and the European sovereign debt crisis amid nearly 100 successful macro and investment calls. Veritaseum has been the first to settle a
peer-to-peer blockchain swap, the first to apply for patent protection for the capital markets application of the technology in every major financial jurisdiction, and has heralded the merits of blockchain-based assets since 2013. For further information, please visit interact with Reggie Middleton directly via Twitter - @reggiemiddleton