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Sep 19, 2017 · 23m · top-founders

787: Crypto: With $163m Raised, He Launched the #1 ICO

Eyal Herzog · 11m spoken Nathan Latka · 8m spoken
0:00 / 0:00

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Host Nathan Latka interviews Bancor Network co-founder Eyal Herzog to examine the architecture behind Bancor's automated liquidity protocol and the execution of its record-setting $153 million initial coin offering. Herzog breaks down non-profit token economics, smart contract price floors, and his entrepreneurial shift from traditional tech to decentralized finance.

How this conversation actually went

Every chapter scored 0–10 on four independent dynamics. Hover any point for the reasoning behind the score. Nathan holds 42.5% of the talking time here. How this is scored →

Nathan as informed peer 4.0 Guest teaching 3.1 Guest disagreement 1.0 Nathan pushing back 2.1
05100:0010:0020:000:44–4:58 · Nathan as informed peer 4/10 GetLatka Platform Promotion and Upcoming Guest Preview Nathan introduces his platform and previews the interview before asking how Bancor makes money. Herzog explains the non-profit foundation model used by Ethereum and Bancor, clarifying how token liquidity works.4:58–7:03 · Nathan as informed peer 6/10 Automated Liquidity Mechanisms Versus Centralized Crypto Exchanges Nathan provides an in-depth breakdown of the First Blood ICO to ground the discussion in practical cash liquidation mechanics. Herzog builds on this to contrast Bancor's automated on-chain liquidity against centralized exchanges like Coinbase.7:03–13:02 · Nathan as informed peer 6/10 Bancor's Record ICO and Smart Contract Price Floor Nathan drills down into Bancor's ICO metrics, challenging Herzog on centralization risk since the top five wallets held over 55% of tokens. Herzog addresses the concern by explaining whale psychology and the automated floor price smart contract.13:03–16:25 · Nathan as informed peer 6/10 Foundation Token Distribution and Global Bounty Programs Nathan breaks down Bancor's foundation reserves and bounty budgets into raw dollar numbers for listeners. Herzog clarifies how market-driven valuation works when Nathan simplifies token arithmetic.16:26–19:20 · Nathan as informed peer 4/10 Herzog's Entrepreneurial Pivot to the Crypto Revolution Nathan inquires about Herzog's motivation for pivoting into crypto and explores where Bancor ranks globally. Herzog explains his philosophy of cultural technology shifts and the role of grassroots crypto communities.19:20–22:27 · Nathan as informed peer 2/10 Sponsor Spotlight: Acuity Scheduling for Founder Productivity After an ad read for Acuity Scheduling, Nathan conducts the Famous Five rapid-fire questions covering favorite books, sleep habits, and lessons in humility.22:27–23:04 · Nathan as informed peer 0/10 Episode Conclusion and Previous Interview Episode Preview Solo host monologue wrapping up the episode and teasing the previous episode with Mitchell Reichgut.0:44–4:58 · Guest teaching 5/10 GetLatka Platform Promotion and Upcoming Guest Preview Nathan introduces his platform and previews the interview before asking how Bancor makes money. Herzog explains the non-profit foundation model used by Ethereum and Bancor, clarifying how token liquidity works.4:58–7:03 · Guest teaching 4/10 Automated Liquidity Mechanisms Versus Centralized Crypto Exchanges Nathan provides an in-depth breakdown of the First Blood ICO to ground the discussion in practical cash liquidation mechanics. Herzog builds on this to contrast Bancor's automated on-chain liquidity against centralized exchanges like Coinbase.7:03–13:02 · Guest teaching 5/10 Bancor's Record ICO and Smart Contract Price Floor Nathan drills down into Bancor's ICO metrics, challenging Herzog on centralization risk since the top five wallets held over 55% of tokens. Herzog addresses the concern by explaining whale psychology and the automated floor price smart contract.13:03–16:25 · Guest teaching 4/10 Foundation Token Distribution and Global Bounty Programs Nathan breaks down Bancor's foundation reserves and bounty budgets into raw dollar numbers for listeners. Herzog clarifies how market-driven valuation works when Nathan simplifies token arithmetic.16:26–19:20 · Guest teaching 3/10 Herzog's Entrepreneurial Pivot to the Crypto Revolution Nathan inquires about Herzog's motivation for pivoting into crypto and explores where Bancor ranks globally. Herzog explains his philosophy of cultural technology shifts and the role of grassroots crypto communities.19:20–22:27 · Guest teaching 1/10 Sponsor Spotlight: Acuity Scheduling for Founder Productivity After an ad read for Acuity Scheduling, Nathan conducts the Famous Five rapid-fire questions covering favorite books, sleep habits, and lessons in humility.22:27–23:04 · Guest teaching 0/10 Episode Conclusion and Previous Interview Episode Preview Solo host monologue wrapping up the episode and teasing the previous episode with Mitchell Reichgut.0:44–4:58 · Guest disagreement 1/10 GetLatka Platform Promotion and Upcoming Guest Preview Nathan introduces his platform and previews the interview before asking how Bancor makes money. Herzog explains the non-profit foundation model used by Ethereum and Bancor, clarifying how token liquidity works.4:58–7:03 · Guest disagreement 1/10 Automated Liquidity Mechanisms Versus Centralized Crypto Exchanges Nathan provides an in-depth breakdown of the First Blood ICO to ground the discussion in practical cash liquidation mechanics. Herzog builds on this to contrast Bancor's automated on-chain liquidity against centralized exchanges like Coinbase.7:03–13:02 · Guest disagreement 2/10 Bancor's Record ICO and Smart Contract Price Floor Nathan drills down into Bancor's ICO metrics, challenging Herzog on centralization risk since the top five wallets held over 55% of tokens. Herzog addresses the concern by explaining whale psychology and the automated floor price smart contract.13:03–16:25 · Guest disagreement 2/10 Foundation Token Distribution and Global Bounty Programs Nathan breaks down Bancor's foundation reserves and bounty budgets into raw dollar numbers for listeners. Herzog clarifies how market-driven valuation works when Nathan simplifies token arithmetic.16:26–19:20 · Guest disagreement 1/10 Herzog's Entrepreneurial Pivot to the Crypto Revolution Nathan inquires about Herzog's motivation for pivoting into crypto and explores where Bancor ranks globally. Herzog explains his philosophy of cultural technology shifts and the role of grassroots crypto communities.19:20–22:27 · Guest disagreement 0/10 Sponsor Spotlight: Acuity Scheduling for Founder Productivity After an ad read for Acuity Scheduling, Nathan conducts the Famous Five rapid-fire questions covering favorite books, sleep habits, and lessons in humility.22:27–23:04 · Guest disagreement 0/10 Episode Conclusion and Previous Interview Episode Preview Solo host monologue wrapping up the episode and teasing the previous episode with Mitchell Reichgut.0:44–4:58 · Nathan pushing back 2/10 GetLatka Platform Promotion and Upcoming Guest Preview Nathan introduces his platform and previews the interview before asking how Bancor makes money. Herzog explains the non-profit foundation model used by Ethereum and Bancor, clarifying how token liquidity works.4:58–7:03 · Nathan pushing back 2/10 Automated Liquidity Mechanisms Versus Centralized Crypto Exchanges Nathan provides an in-depth breakdown of the First Blood ICO to ground the discussion in practical cash liquidation mechanics. Herzog builds on this to contrast Bancor's automated on-chain liquidity against centralized exchanges like Coinbase.7:03–13:02 · Nathan pushing back 5/10 Bancor's Record ICO and Smart Contract Price Floor Nathan drills down into Bancor's ICO metrics, challenging Herzog on centralization risk since the top five wallets held over 55% of tokens. Herzog addresses the concern by explaining whale psychology and the automated floor price smart contract.13:03–16:25 · Nathan pushing back 3/10 Foundation Token Distribution and Global Bounty Programs Nathan breaks down Bancor's foundation reserves and bounty budgets into raw dollar numbers for listeners. Herzog clarifies how market-driven valuation works when Nathan simplifies token arithmetic.16:26–19:20 · Nathan pushing back 2/10 Herzog's Entrepreneurial Pivot to the Crypto Revolution Nathan inquires about Herzog's motivation for pivoting into crypto and explores where Bancor ranks globally. Herzog explains his philosophy of cultural technology shifts and the role of grassroots crypto communities.19:20–22:27 · Nathan pushing back 1/10 Sponsor Spotlight: Acuity Scheduling for Founder Productivity After an ad read for Acuity Scheduling, Nathan conducts the Famous Five rapid-fire questions covering favorite books, sleep habits, and lessons in humility.22:27–23:04 · Nathan pushing back 0/10 Episode Conclusion and Previous Interview Episode Preview Solo host monologue wrapping up the episode and teasing the previous episode with Mitchell Reichgut.

speaking balance: gold is Nathan, purple is the guest (3 minute bins)

0:00 · Nathan 85.3% · guest 14.7%0:00 · Nathan 85.3% · guest 14.7%3:00 · Nathan 35.5% · guest 64.5%3:00 · Nathan 35.5% · guest 64.5%6:00 · Nathan 16.9% · guest 83.1%6:00 · Nathan 16.9% · guest 83.1%9:00 · Nathan 39.7% · guest 60.3%9:00 · Nathan 39.7% · guest 60.3%12:00 · Nathan 12.3% · guest 87.7%12:00 · Nathan 12.3% · guest 87.7%15:00 · Nathan 54.9% · guest 45.1%15:00 · Nathan 54.9% · guest 45.1%18:00 · Nathan 51.3% · guest 48.7%18:00 · Nathan 51.3% · guest 48.7%21:00 · Nathan 47.8% · guest 52.2%21:00 · Nathan 47.8% · guest 52.2%
Sharpest disagreement ▶ 10:03 Herzog corrects Nathan on Ether price timing

When Nathan asserts that Bancor issued tokens when Ether was at $200, Herzog directly cuts in to correct him that Ether was near $400 at their launch.

 Hardest push from Nathan ▶ 10:49 Nathan challenges whale token concentration

Nathan pulls data showing the top five holders control over 55% of tokens and directly asks whether a single bearish whale could crash the entire token ecosystem.

 Biggest teaching moment ▶ 2:38 Herzog explains non-profit crypto governance

Herzog educates Nathan on how token networks like Ethereum and Bancor can operate as non-profit foundations while still generating immense economic returns for early participants.

 Nathan holds their own ▶ 4:58 Nathan maps out crypto-to-fiat mechanics

Nathan demonstrates command of crypto fundraising mechanics by detailing First Blood's exact token metrics and fiat off-ramping strategy to contextualize liquidity.
the scores for every segment, with the reasoning behind each
ChapterTopicNathan as informed peerGuest teachingGuest disagreementNathan pushing backWhy
GetLatka Platform Promotion and Upcoming Guest Preview 4512 Nathan introduces his platform and previews the interview before asking how Bancor makes money. Herzog explains the non-profit foundation model used by Ethereum and Bancor, clarifying how token liquidity works.
Automated Liquidity Mechanisms Versus Centralized Crypto Exchanges 6412 Nathan provides an in-depth breakdown of the First Blood ICO to ground the discussion in practical cash liquidation mechanics. Herzog builds on this to contrast Bancor's automated on-chain liquidity against centralized exchanges like Coinbase.
Bancor's Record ICO and Smart Contract Price Floor 6525 Nathan drills down into Bancor's ICO metrics, challenging Herzog on centralization risk since the top five wallets held over 55% of tokens. Herzog addresses the concern by explaining whale psychology and the automated floor price smart contract.
Foundation Token Distribution and Global Bounty Programs 6423 Nathan breaks down Bancor's foundation reserves and bounty budgets into raw dollar numbers for listeners. Herzog clarifies how market-driven valuation works when Nathan simplifies token arithmetic.
Herzog's Entrepreneurial Pivot to the Crypto Revolution 4312 Nathan inquires about Herzog's motivation for pivoting into crypto and explores where Bancor ranks globally. Herzog explains his philosophy of cultural technology shifts and the role of grassroots crypto communities.
Sponsor Spotlight: Acuity Scheduling for Founder Productivity 2101 After an ad read for Acuity Scheduling, Nathan conducts the Famous Five rapid-fire questions covering favorite books, sleep habits, and lessons in humility.
Episode Conclusion and Previous Interview Episode Preview 0000 Solo host monologue wrapping up the episode and teasing the previous episode with Mitchell Reichgut.

Statements from this episode (9)

Disclosure
Herzog: Bancor Operates as a Non-Profit Organization
“First of all, Bancor is a non-profit organization, which is a new model that has been rising in the last years.”
Eyal Herzog Sep 19, 2017 ▶ 2:38
Disclosure
Herzog: Bancor Uses Algorithmic Formulas Instead of Order Books
“And we provide like a different way that does not require traders bid and ask automatically finds the market rate according to some formula.”
Eyal Herzog Sep 19, 2017 ▶ 4:46
Assertion Supported
Herzog: Bancor raised $153M in three hours during record-setting ICO
“And we raised in three hours, something that was at the time, a hundred fifty three million dollars, which was at the time the large, largest fundraising ever, but that record was quickly broke by following ICOs.”
Eyal Herzog Sep 19, 2017 ▶ 7:25
Assertion Supported
Herzog: Bancor holds over 100,000 Ether in buyback smart contract
“We also did something nice that that said that above, like, a specific amount we will not take any of the funds to ourselves, but we will put it in, like, a special smart contract that will offer to buy back the token at the original price. So it gave, like, n…”
Eyal Herzog Sep 19, 2017 ▶ 8:17
Disclosure
Herzog: Bancor employs about 20 people across its foundation and structures
“We're like, we're about a, I think everyone involved in the project, so there's a foundation, it's about five people, and then, you know, with the people that are involved in the, in different structures, they're like, I would say it's 15 more.”
Eyal Herzog Sep 19, 2017 ▶ 9:03
Disclosure
Herzog: Bancor has liquidated less than 10% of ICO proceeds
“Less, less, less than 10%. Less than 10%.”
Eyal Herzog Sep 19, 2017 ▶ 9:50
Assertion Supported
Herzog: Bancor executed its ICO when Ether was near $400
“No, I did it when it was almost 400.”
Eyal Herzog Sep 19, 2017 ▶ 10:04
Opinion
Herzog: Crypto's financial ecosystem is bigger than the internet
“This is like, you know, it's bigger than the internet in, in terms of, you know, the implication that you can expect from that move.”
Eyal Herzog Sep 19, 2017 ▶ 12:33
Disclosure
Herzog: B Protocol Foundation sold 50% of Bancor tokens and reserved 40%
“And the foundation actually sold 50% of the token. And with the other 50%, it kind of have, like, different buckets. For example, 20% is keeping for long-term budget. So, you know, in a few years, if it needs more money, it can sell those. 20% of that is for o…”
Eyal Herzog Sep 19, 2017 ▶ 13:26
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