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In The Media

Notes on Pre Paid API Calls

by Larry Chiang on September 5, 2018

Tokens: Inherently Incorporating Money into Every API Call. Can’t lie about statistics, all information is available on the ledger.

Outdated Industries:

• Credit card industry: Farcical system set up by a centralized system of experience. Ex. Equifax, TransUnion, etc…

• Prohibiting email interactions with the credit bureaus––have had to interact via the API of the U.S. postage stamp. Expensive––$20 dollar “API call.”

• They create friction so that you can’t triplicate Experian, Transunion, Equifax…

Further Learning:

Ryan E Shea and Muneeb Ali Medium blog posts.

• How to underwrite a crypto token. 

        ◦ Does the GitHub repository have code commits? Is there even code in the PDF? Does token have functionality? Is there anything real behind 65 pages of white paper? Pure copy paste?

        ◦ #CS183UWCT

• Why is the Fed Reserve owned by shareholders? Pres. of states appoints the head of the FED

• Why is financial literacy not taught in schools?

• Why does it cost money to shop for a car loan?

• Why do you create $800,000 with a $400,000 loan. $400K goes into buying the house, $400K into notes. 

• Avg. consumer stands little chance. 

• Blockchain tech., tokenizations opens the door for consumers to ask tough questions regarding transparency.

The Real Bubble

• The real bubble isn’t ETH, BTC, etc… It is USD. Can be printed in masses, synthetically created. US currency has become the standard world reserve currency. 

• USD is the alt coin.

• People may start taking haircuts on Fiat because they have to pay taxes against BTC. USD could be easier way for them to pay taxes. 

• Always consider everything in terms of Money in, Money out.

• Schedule C. 

• Money in Money out helps you be mindful of tax.

• Will be easier to track ^ on the distributed ledger. Can pinpoint exactly what you were doing last summer, etc.

• People are breaking the rules of house money in Crypto

• Crypto turns some people into Vegas-like zombies; Gossipy VCs on how to make 30% returns in a month, etc…


• VC wants to invest in a token because it’s the same idea of money in money out. Can help with shocks. — FICO score.

Owning your day

• Morning Pages; Julia Cameron

• Find times to unplug

• Optimal– wake to circadian rhythm.

New Business Models

• Doesn’t take money to make money

• Arbitrage an API call.

• Internet-of-thinging

• Example of Arbitraging API Call:

        ◦ Netflix viewing party – getting people to prepay their Netflix accounts. Akin to prepaid token.

        ◦ Surf API example:

                 Equipment person trying to break into new market. Consumers pre-pay for the product. Create advocate users; viral sensationn. You should view user as an API call every time they take the board out on the weekend.

                 Youtube videos drive prepayments, sell ownership in the company (which is similar to a token launch)

                 First adopters who ride; put on their Youtube channel, generate a viral sensation. = API Call to Youtube. Triggers 5 Youtube videos, snowball, network effect.

                 You are paying users to use, and virally tell people about it. Ex. paying a user $3 per API call. 


• Interested in the space because it is the first time money can be incorporated into an API call. Before, people could lie about their API calls volume and use.

• Token is an API call with a small dose of money attached. Can’t cheat it because it is a swap of info.

Interesting quotes:

• This is a religion wrapped up in a get-rich-quick scheme (Naval)

• Potential business opportunity: write an algorithm that helps people in the future decide whether or not they should convert out of BTC, pay with dollar, etc.. 

Sent from my personal iPhone XIII number that Steve Jobs texted me on

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