Ryze Labs Ryze Up E06 - BAMK.Fi Jack Liu

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Introduction

In this episode, we welcome Jack Liu, a prominent figure in the Bitcoin ecosystem. Jack’s journey is noteworthy, with early exposure to scaling Bitcoin as far back as 2015/2016. Over nearly a decade, the Bitcoin ecosystem has evolved significantly, introducing technologies like ordinals, runes, op_cat, and various Layer 2 and sidechain solutions. Jack shares his unique journey and insights into the world of Bitcoin and crypto.

Jack's Journey in the Bitcoin Ecosystem

Jack’s journey into Bitcoin started in 2013 when he discovered a white paper on Zero Hedge. At that time, Bitcoin was valued at around $175. Coincidentally, he found an article about a Bitcoin ATM opening in Vancouver, where he was visiting, and bought his first Bitcoin. Initially, the Bitcoin industry was small and largely dominated by technologists, which made it challenging for someone without a coding background like Jack to enter the space. However, his passion for Bitcoin led him to become a blogger in 2013 and 2014.

Jack’s professional journey took a significant turn when Jesse Powell, the founder of Kraken, reached out to him through Roger Ver, who had been reading Jack’s blog. This led to Jack’s involvement with Kraken and later OKCoin, where he helped launch OKX. He also spent time at Circle, witnessing the evolution and debates within the Bitcoin scaling community. Despite the emergence of other cryptocurrencies like Ethereum, Jack remained focused on Bitcoin, contributing to various projects and innovations.

Jack's Investment Philosophy

Jack shared insights into his investment philosophy, emphasizing the importance of simplicity and liquidity in the decentralized economy. He described his approach to evaluating opportunities in crypto, using the formula of "Simple, New, Liquid". He explained that in the decentralized world, the goal is to connect with strangers globally, making it essential for an investment to be simple to understand and accessible to a broad audience. For instance, Jack highlighted how the simplicity of Ordi, the first BRC20 token on Bitcoin, and its easy trading on various platforms, helped it gain rapid adoption and significant market value.

Jack also reflected on missed opportunities and the importance of adapting his investment strategy based on past experiences. He stressed the need to recognize and seize new trends early, even if they seem unconventional or risky at the outset.

The Concept of BAMK and NUSD

Jack provides insights into the workings of BAMK and NUSD. BAMK is a meme token while NUSD is like Ethena on Bitcoin mainnet. The initial distribution of BAMK included 6.25% offered to the public and another 6.25% to NUSD holders. The remaining token supply is reserved for future needs, such as potential VC investments or additional reward distributions. Jack emphasizes the importance of sustainable growth, with plans to potentially burn tokens based on achieving specific milestones. BAMK has quickly become top 3 runes by fully diluted valuation (FDV). 

NUSD is a synthetic dollar designed to operate on the Bitcoin mainnet. Jack elaborates on the need for a stablecoin like NUSD on Bitcoin’s mainnet, which provides a decentralized alternative to traditional stablecoins like USDT and USDC. While Bitcoin transactions are slower and more expensive compared to Layer 2 solutions, the significant on-chain activity justifies the existence of NUSD. 

Jack draws comparisons between NUSD and well-known stablecoins like USDT and USDC. Unlike these traditional stablecoins, which are backed by actual dollars in bank accounts, NUSD operates as an algorithmic stablecoin on the Bitcoin mainnet. This decentralized approach appeals to Bitcoin holders who prefer to avoid centralized exchanges and maintain their transactions on-chain.

Building On-Chain Attention and Community

Jack’s insights into building on-chain attention were particularly enlightening. He emphasized that success in the crypto world doesn’t necessarily stem from traditional marketing tactics but rather from genuine engagement with the on-chain community. Instead of focusing on off-chain attention, such as social media buzz or media appearances, Jack believes in the power of on-chain presence and activity.

For BAMK and NUSD, this approach meant creating real value and engagement within the Bitcoin network. Jack mentioned that the rapid traction of these projects was due to their organic growth, transparency, and the community’s active participation. By launching tokens on-chain and fostering a decentralized economy, they attracted a dedicated user base who contributed to the project’s success through trading, holding, and building additional tools and applications.

One of the standout aspects of BAMK’s growth is its strong community engagement. Jack attributes this to a user-first approach, prioritizing how users can benefit rather than focusing solely on investor profits. This philosophy was demonstrated by the initial distribution strategy: 6.25% of BAMK was free to mint and open to the public, and another 6.25% of BAMK tokens were airdropped to NUSD holders. This inclusive approach led to a highly engaged community that organically contributed to marketing and content creation, aligning their interests with the project's success.

Jack shared that the Telegram group for BAMK has grown from a small community to a couple of hundred active members who are making memes, introductions, and content to raise awareness about the project. This grassroots approach has been instrumental in the project’s development, showcasing the impact of genuine on-chain engagement and community building.

Future Milestones and Goals

Looking ahead, Jack discusses the future milestones for 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. A key long-term goal is to automate the project using on-chain perpetuals, reducing reliance on centralized exchanges.

Jack also touches on the importance of organic growth and addresses any concerns from centralized exchanges before seeking listings. The ultimate aim is to ensure that BAMK and NUSD are sustainable, transparent, and beneficial for the community in the long term. It is noteworthy that UTXO Management has put $1M into NUSD, indicating some level of institutional attention to the project.

Conclusion

BAMK and NUSD are emerging projects that have been live for less than two months, yet they have quickly risen to become the third highest-ranked runes token. Their rapid ascent has taken many by surprise, making them a notable presence in the Bitcoin space. It's interesting to observe builders like Jack creating the infrastructure and essential tools needed for BTCFi to develop. While there are potential risks associated with a synthetic dollar, it will be intriguing to see how Jack and his team navigate these challenges and continue to develop this project. We'll be keeping a close watch on BAMK and NUSD as they progress.