In an interview at Cannes, Shrem also shared with Decrypt details on his new crypto film-financing project.

Bitcoin pioneer Charlie Shrem was at the Cannes Film Festival this week to launch crypto film-financing project Defiine—and he had some choice words regarding the collapse of Terra’s UST stablecoin.

“I think a lot of people predicted what would happen with Terra and LUNA,” he told Decrypt. “But at the end of the day, because we were in a bull market, it’s like an example of our industry.”

He drew a distinction between asset-backed stablecoins such as USDC and Tether—the latter of which has remained famously opaque regarding its reserves—and algorithmic stablecoins such as UST.

Algorithmic stablecoins, he said, have “been tried so many times over the last 10 years; even in 2014, people were trying to theorize different ideas.” He added that, “Tether launched for a reason, but they realized you can’t create a stablecoin backed by the same type of speculative asset, so when one starts going down, people are going to be selling one for the other.”

Crypto film financing

Shrem’s latest project, Defiine, is itself based around stablecoins. Billed as a digital finance solution for independent films, it leverages “assets and IP against crypto liquidity pools.”

“We’ve figured out a way to create potentially a stablecoin that’s backed by a basket of NFTs,” Shrem said. “The NFT is a lien against a tax credit or in-film minimum guarantee, or negative pickup, or Netflix saying, ‘We’ll give you $3 million when you finish the movie, and over three years.’ Currently, there are banks that do this, but they charge 15% and higher.” It’s a “huge problem” for filmmakers.

“There’s a new phase of stablecoins coming—stablecoins 2.0,” said Defiine co-founder Tom Malloy, president of Glass House Distribution. “You saw what happened to UST; bottom line is, stablecoins backed by assets, I feel are still viable.”

Shrem argued that over the past few years, all decentralized finance (DeFi) has been based around yields. “You go on Vesper or Curve, you can do vaults and you can get automated market making, but all the yields that people are getting, 5% to 60%—what are the businesses behind them?” Securitizing physical assets like houses introduces the prospect of securities regulations, along with costs like maintenance, he said. “What other asset is digital, has value, and is the largest export of the United States? The film business.”

Malloy suggested that the platform could offer an alternative route to tax credit financing for films. For a tax credit of 25%, a million-dollar film could recoup $250,000. “There are places you’ve got to be done with the movie, then wait another nine months afterwards. There are places that loan that money, but it’s just a loan with a high interest rate; maybe they’ll give you 85% of that money. We have much better interest rates, and the difference is that people are going to have a stablecoin, so that anybody can be part of the liquidity pool.”

Shrem argued that the platform resolves “significant liquidity problems” for filmmakers. “It’s not like, ‘Give me $100,000 and I’ll go make a movie.’ It’s, ‘I have a script, I have actors attached. I have a director, I have a state that will give me $300,000 on delivery.’ Why not be able to put that on a protocol? You’re creating a digital asset anyways.”

Shrem and Bitcoin

The Defiine platform is being built using Mintlayer, a Bitcoin sidechain for tokenization and smart contracts.

Shrem has a long and storied history with Bitcoin, and is regarded by Bitcoin maximalists as one of the community’s pioneers—and martyrs. In 2014, aged 24, he was sentenced to two years in prison for aiding and abetting the operation of an unlicensed money transmitting business related to the Silk Road darknet marketplace.

Since then, he’s reinvented himself as a crypto evangelist through speaking engagements and his podcast Untold Stories. With stablecoins facing renewed scrutiny from financial institutions and lawmakers in the wake of Terra’s implosion, selling people on the idea of a stablecoin backed by film IP could prove to be a test of his skills.

Copy article link

Want to be a crypto expert? Get the best of Decrypt straight to your inbox.

Get the biggest crypto news stories + weekly roundups and more!

Keyword: Bitcoin Pioneer Charlie Shrem: ‘A Lot of People Predicted’ Terra Collapse

TECH'S NEWS RELATED

What is a Fashion Challenger in Pokémon Go?

Image via Niantic Every so often, Niantic throws a curveball at players in Pokémon Go. This will typically happen with the event quests or the exclusive rewards players receive for participating in limited Special Research. For those participating in Pokémon Go’s Fashion Week 2022 event, you may notice that ...

View more: What is a Fashion Challenger in Pokémon Go?

Say hello to the R1-million Ford Everest

Standard features Ford Everest Sport Ford Everest Platinum At long last, Ford has revealed the South African pricing and specifications for the new Everest, the SUV now starting at R965,400 and going all the way up to R1,113,100. Two trim levels are on offer for the seven-seater at launch ...

View more: Say hello to the R1-million Ford Everest

All Fashion Week 2022 Timed Research tasks and rewards in Pokemon Go

Image via Niantic The Fashion Week 2022 event has arrived in Pokémon Go. In this event, fashionable Pokémon will appear throughout the mobile game, allowing players to catch these stylishly Pokémon, along with some new choices, such as the shiny version of Yveltal and Mareanie as it makes its ...

View more: All Fashion Week 2022 Timed Research tasks and rewards in Pokemon Go

When 3D Printing Gears, It Pays To Use The Right Resin

There are plenty of resins advertised as being suitable for functional applications and parts, but which is best and for what purpose? According to [Jan Mrázek], if one is printing gears, then they are definitely not all the same. He recently got fantastic results with Siraya Tech Fast Mecha, ...

View more: When 3D Printing Gears, It Pays To Use The Right Resin

How to open locked Plort doors in Slime Rancher 2 – Plort Gate guide

image via Monomi Park At its heart, Slime Rancher 2 is (like the original) a farming game about managing an ever-expanding stock of Slimes. But it also has some more tricks up its sleeve, with the biggest being its surprisingly expansive world to explore. It isn’t as simple as ...

View more: How to open locked Plort doors in Slime Rancher 2 – Plort Gate guide

How to Take and Highlight a Screenshot on Mac

How to Take a Screenshot on Mac Capturing the Entire Screen on Mac Capturing a Particular Area of Screen on Mac Highlighting a Screenshot on Mac Annotating a Screenshot on Mac Drawing on a Screenshot on macOS Edit a Previously Taken Screenshot on macOS The Highlight of the Day ...

View more: How to Take and Highlight a Screenshot on Mac

What do Ringtail Slime statues do in Slime Rancher 2?

Image by Monomi Park There are multiple types of slimes that you can find all over Slime Rancher 2. One of the more difficult-to-find versions of the Slime is the Ringtail Slime. It’s a slime that resembles a raccoon and is equally mischievous and capable of getting into trouble. ...

View more: What do Ringtail Slime statues do in Slime Rancher 2?

All difficulty levels and their payouts in Phasmophobia

A note on maps Amateur difficulty in Phasmophobia Intermediate difficulty Professional difficulty Nightmare difficulty Screenshot by Gamepur Phasmophobia allows players to dive as deeply into terror and difficulty as they would like, and they do so with varying difficulty levels that the player, or party leader, can select while ...

View more: All difficulty levels and their payouts in Phasmophobia

Crypto Lender Nexo Hit With Enforcement Actions From Eight States

Have Helium Leaders Been Lining Their Own Pockets While Not Delivering on Product?

Cyberpunk 2077 ARG has players combing Arasaka Tower for RTX 4090s

The best moveset for Toxapex in Pokémon Go

Can you catch a shiny Mareanie in Pokémon Go? – September 27, 2022

Ubisoft CEO sparks controversy by saying that making games requires 'friction'

NFT Game Pixelmon Attempts Comeback After $70M ‘Horrible’ Art Reveal

New Erbium password-stealing malware spreads as game cracks, cheats

Apple starts iPhone 14/14 Plus manufacturing in India

Apple Watch Ultra battery is 76% larger than Series 8

Bitcoin Shows Resilience In Dollar-Driven Bloodbath | BTCUSD September 26, 2022

Polkadot Price Watch: What A Drop In This Key Area Can Mean For DOT?

OTHER TECH NEWS

;