An interview series spotlighting global tech influencers, disruptors, visionaries, and of course, innovators.
The Innovators series continues its coverage of key players from Paris Blockchain Week 2023.
Ilya Volkov, Founder and CEO of the Swiss blockchain-based FinTech platform YouHodler, has pursued a career in innovation since starting at the commercial finance company in 2000. A Crypto Valley Association Board Member and a former Western Chapter Chair, Volkov also serves as an Innovaud ambassador.
With a $2B+ monthly trading volume, YouHodler currently offers 50+ crypto pairs with top cap coins, altcoins, and stablecoins to 900K+ users who can access 24/7 online support sans annoying chatbots (“2m 03s median response time and 3m 17s median resolution time,” according to YouHodler).
It was a pleasure meeting Ilya in person in Paris in March at PBW23 and discuss multiple blockchain ecosystem trends. He covered a range of engaging topics including his experience founding YouHodler, attending conventions over the years, the recent banking crisis, prioritizing stability over growth, hiring new talent, and the value of theYouHodler team’s traditional finance practices. Our interview follows.
EKMH: At PBW23 you noted that the atmosphere had changed from prior years. Please share some observations about the current blockchain sector.
Ilya Volkov: As someone said at the event, “No more kids are running the show.” The statement sums up the atmosphere at PBW23. Compared to years past when most people were focused on making easy money, the energy has shifted. Projects are now focused on hard work and creating value for the industry. I also noticed more conversations about cooperation with TradFi. On one panel in which I participated, we spoke a lot about applying the same tools from TradFi to the crypto with one major difference - transparency via blockchain technology. To summarize, I think the blockchain sector is continuing to develop its unique strengths while also relying on proven, successful traits in legacy industries.
EKMH: What’s your vision for YouHodler’s Web3 banking?
Ilya Volkov: I don’t believe in the crypto “revolution.” Instead, I believe in evolution. In my mind crypto is just a logical evolutionary step in the development of Finance Technology. What will keep driving this financial evolution? For me, the bridge between traditional finance and “new finance” is the next big driving factor.
Our paper cash is still here. It’s not going away anytime soon because it still has major use cases. At the same time, if you want to participate in Web3 adoption and benefit from all the new financial services, then crypto financial institutions are great for that. However, I never saw anything that lets us harness the benefits of fiat, crypto, Web2 and Web3 all in one place. So that’s the basis of our Web3 banking roadmap, to provide a service that doesn’t ignore fiat or cryptocurrency but instead allows one to benefit from both sides efficiently and easily.
EKMH: Can you share more thoughts on stability vs. growth?
Ilya Volkov: I think the recent banking crisis in the U.S. was a strong reminder of the 2008 global financial crisis - which also began in the U.S. Both events were great examples of financial systems growing too fast - and eventually losing stability and collapsing.
Rapid growth is a tradeoff. Throughout history, we can see evidence where rapid financial development leads to rapid economic growth to a point where the positive effects begin to decline. This is then followed by economic and financial volatility. This tradeoff will always exist, but I believe it can be controlled somewhat. By improving the strong institutions and creating a sound regulatory and supervisory environment, we can increase the benefits from financial growth while reducing the risk that comes with that tradeoff.
EKMH: What’s your disaster recovery program? How does YouHodler ensure cybersecurity to combat cyber risks and counteract fraud, scams and security breaches?
Ilya Volkov: YouHodler follows all the industry best practices for IT security checks, data protection, access rights, and data encryption. We store fiat funds at reputable bank accounts in Europe and Switzerland and partner with trusted fiat payment providers only. YouHodler uses Ledger Vault's industry-leading information technology infrastructure to securely control its crypto assets with a multi-authorization self-custody management solution. All credit card operations are under PCI Security Standards, and all crypto operations follow Cryptocurrency Security Standard (CCSS). Lastly, we run external security audits regularly. We’re keeping investing in the infrastructure; cybersecurity related spendings take a significant part of our budgets.
YouHodler Founder / CEO Ilya Volkov: “As someone said at PBW23, ‘No more kids are running the show.’ The statement sums up the atmosphere at PBW23. Compared to years past when most people were focused on making easy money, the energy has shifted. Projects are now focused on hard work and creating value for the industry.” Photo Credit: EKMH
EKMH: YouHodler is an EU and Swiss-based brand with regulated institutions in Switzerland, Italy and other EU countries. Which traditional finance practices have helped you set YouHodler apart from competitors?
Ilya Volkov: With our traditional finance and banking experience we apply traditional risk management principles to our operations. This is related to internal organizational structure, governance rules and of course management of our treasuries.
EKMH: How have recent Big Tech layoffs benefited the sector?
Ilya Volkov: I think it has been a benefit. Back in the 2017-2021 period it was very difficult to compete for talents with giants like Facebook (Meta), Google and big banks. But, now hiring in bear markets and layoffs provide a unique opportunity to snatch up highly talented people who are passionate and believe in what we’re building in the long term. These types of people are in it for the right reasons, not just looking for a paycheck.
Furthermore, these layoffs also mean more access to bigger pools of talent with a proven track record. Big Tech companies have extremely high standards when it comes to hiring their employees. So when these employees get laid off for one reason or another, the talent pool becomes saturated with high-quality people with impressive resumes. However, this also means there is more competition from other startups trying to acquire high-quality talent as well. Companies also need to sell themselves to the talent they want to attract, not just read through applications and pick who is best.
EKMH: Which three leadership skills have proved invaluable to you as a CEO?
Ilya Volkov: 1. Agility and open-minded way of thinking; 2. Relationship building and negotiation skills; and 3. Decision making expertise (especially under uncertainty)
EKMH: Last but not least, which books, films and/or podcasts top your list?
Ilya Volkov: Great question - my list is too long! Let me quickly give you the first tips coming to my mind:
Books: Antifragile and Skin in the Game by Nassim Taleb
Movies: Eat the Rich: The GameStop Saga; The Billion Dollar Code
I do not usually listen podcasts, instead I scroll a Twitter feed to get up-to-date and pick something interesting/valuable to read.
*Disclaimer: The views and opinions expressed in this series are those of the interviewees and do not necessarily reflect the views or positions of any entities they represent.
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