Exclusive Interview with Gate Founder Han Lin: Canadian Optoelectronics PhD, Started Coding Alone, Why Strategic Adjustment is Necessary

Author: Wu Says Blockchain

In this interview, Gate Exchange founder Han Lin shared his entrepreneurial journey, platform strategic evolution, and industry insights with Wu Says founder Colin. After earning a PhD in Optoelectronics in Canada, Han Lin returned to China to start a business. In 2013, he attempted to buy 100 bitcoins and was scammed, losing $2,000. In the early years of his startup, he completed almost all development work independently; although compliance has high short-term costs and low returns, it is necessary in the long run; he is very interested in the Hong Kong market and is considering rearranging applications for relevant licenses; he is investing in related fields, such as supporting chip companies for ZK to enhance computing efficiency; the company's asset reserves are mainly in Bitcoin and Ethereum; there are currently no obvious cyclical patterns, and he is relatively optimistic about this year's trends; most of his time is still spent on technology and products; the corporate culture is pragmatic and innovative, hoping everyone remains grounded and not too impetuous, avoiding shortcuts and overtaking on curves.

PhD in Optoelectronics from Canada, scammed when first exposed to Bitcoin

Colin: I remember you initially studied at Shandong University for both your bachelor's and master's degrees, and then pursued a PhD in Canada. What was your major?

Han Lin: I studied electronics; my undergraduate major was Electronic Science and Technology. I was later recommended to pursue graduate studies and then went to Canada for a PhD in Optoelectronics.

Colin: Did you start your entrepreneurial journey right after graduating with your PhD?

Han Lin: After graduating, I did a postdoc in Canada for a year and then returned to China to start a business. At that time, I had some research results that I thought could be applied in the industry, so I founded a company to develop optoelectronic simulation software, later shifting to high-performance computing.

Colin: What prompted you to enter the virtual asset industry? There are reports mentioning that you were scammed early on?

Han Lin: While working in high-performance computing, I needed to use graphics cards and found that many people were using them to mine Bitcoin, so I began researching the Bitcoin white paper. Due to my technical background, I quickly understood the technical value of Bitcoin and developed a strong personal interest. Later, when I tried to buy Bitcoin on forums (like Bitcointalk), I was scammed and lost about $2,000.

Colin: At that time, how much was 100 bitcoins worth?

Han Lin: The total price was about 3,000 Canadian dollars (equivalent to over 2,000 US dollars).

From Chips to Exchanges: Heavy Asset Model is Limited, Trading Platforms are Light Assets and Self-Controlled

Colin: With your background in electronics, did you also participate in mining? Why didn't you continue to develop in the mining or chip field?

Han Lin: I did participate in chip design and mining machine manufacturing. In 2013, we purchased a batch of Avalon chips and attempted to design mining machines, but later realized the issues in the chip industry: the heavy asset model is greatly restricted by the supply chain, with long procurement and production cycles and high uncertainty. In contrast, trading platforms operate on a light asset model, where all processes (like wallet deployment, trading systems, deposit and withdrawal functions) can be implemented through software, allowing for greater autonomy. Therefore, I shifted my focus to trading platforms.

Colin: When was the Gate trading platform launched?

Han Lin: It officially launched in April 2013. At that time, there were very few global trading platforms, mainly concentrated in Taiwan, Japan (like Mt. Gox), and Russia (like BTC-e). There were very few teams in mainland China; I remember only BitChina.

Colin: What was the reason for Gate's rebranding in 2017? Was it related to regulatory policies?

Han Lin: In 2013, domestic policies were relatively friendly, and CCTV reported on Bitcoin payment scenarios (like buying coffee and clothes). However, as the price of Bitcoin rose from $20-30 at the beginning of the year to over $1,000 by the end of the year, regulatory policies tightened. Therefore, we moved our entity overseas and began global operations.

Spot-First Strategy: Early Bets on Innovative Assets, Contract Business Progressed Conservatively Due to Risks

Colin: Gate is characterized by its strong spot business, while the contract business is not a focus compared to other exchanges. How is the overall strategy considered?

Han Lin: This is related to historical background. When we initially built the trading platform, I personally preferred new technologies, so we launched a large number of innovative assets. For example, in 2013, we were the first to list "Dogecoin" and other innovative varieties; at that time, there were almost no platforms as aggressive as we were globally. This strategy formed our cultural advantage—selecting quality assets through keen insight. For instance, during the DeFi Summer in 2020, we were the first to list DeFi projects (like Uni), while most people had not yet recognized the value of such assets.

Today, the importance of DeFi assets is widely acknowledged, but we had already begun promoting them early on. Last year, many breakout projects (like Pepe and other meme coins) were also listed by us first. As for the contract business, we have always treated it conservatively due to its high leverage risk and potential for liquidation. Although contracts are hedging tools with clear demand, we prioritize user safety. It wasn't until recent years, when contract trading volume surged (now 5-6 times that of spot), that we began to increase our investment.

Token Listing Quality Controversy: Acknowledge Selection Difficulty, Emphasize User Education and Risk Control System

Colin: Gate does have a large number of listed tokens, but does the high quantity lead to varying quality? The community sometimes questions whether certain projects may have "data盘" issues. What do you think?

Han Lin: Selecting quality assets is indeed very difficult, and almost no platform can completely solve this problem. We have always selected assets with a keen eye; for example, during the DeFi Summer, we quickly listed SushiSwap (SUSHI), while other platforms were relatively conservative. After SUSHI was listed, it rose from $1 to over $10 in ten days, and only then did other major platforms follow suit.

I admit that selecting assets is a highly challenging task, but we have a risk control system in place to select quality projects as much as possible. At the same time, we cannot make decisions for users entirely. Experienced users usually have their own judgments, and we encourage them to conduct independent analyses before investing, assessing the prospects and risks of projects. Therefore, we have invested a lot of effort in user education to help users improve their discernment.

Responding to On-Chain Asset Competition: Balancing Safety with Early Opportunities

Colin: In recent years, on-chain trading has increasingly competed with centralized exchanges. In the past, platforms created wealth effects through very early token listings, but now this effect seems to have shifted on-chain. How do you view and respond to this trend?

Han Lin: This issue is very critical. Early users could indeed gain wealth effects by selecting assets through centralized exchanges. However, now, more assets are issued directly on-chain, with about 10,000 to 20,000 new tokens born every day, totaling over 15 million. While there are early opportunities on-chain, it is very difficult for ordinary users to filter quality assets.

Experienced players can manage their wallets and protect their assets, but ordinary users find it challenging. Additionally, the quality of on-chain assets varies widely, with many projects disappearing within hours, making the selection cost extremely high. Therefore, we launched products like Winbox to establish an innovation zone, filtering quality projects from on-chain assets. Compared to the listing standards of centralized exchanges, Winbox's rules are slightly more relaxed, but we still use technologies like smart contract detection to exclude high-risk projects and ensure user safety.

For example, we discovered Trump-related meme coins and other projects through this method. After these projects were issued on-chain, we quickly listed them on our platform to help users capture early opportunities.

Independently Completed Development Work in the First One or Two Years

Colin: You mentioned that you developed the entire website independently in the early days. Were you starting your business in a residential building at that time?

Han Lin: At that time, there were very few people who understood blockchain development, so I had to teach myself. Because I had a technical background, after studying the Bitcoin white paper and wallet code, I quickly mastered the relevant technologies and began writing the trading platform code.

Colin: How long did you develop it alone? Do you still write code now?

Han Lin: Now I mainly participate in core architecture discussions. In the early one or two years, I almost completed all development work independently, and later gradually cultivated a team to share the tasks.

Colin: In the early Bitcoin or cryptocurrency circles, who were you more familiar with?

Han Lin: I was more focused on technology and didn't interact much with OGs in the early days. Later, I got to know some early entrants in the industry, but at that time they were in Beijing while I was in Jinan focusing on development.

Why Increase Compliance Investment and Market Exposure Starting in 2023

Colin: Last year, I felt that Gate's strategy underwent a significant shift. In the past, you were relatively low-key and focused on your own development, but last year there were significant changes in compliance and market exposure. What prompted this shift in thinking?

Han Lin: Your observation is very accurate. At the beginning of last year, we did indeed make a strategic adjustment. Previously, we had been focused on technology and products, but later realized that relying solely on these was not enough. Users might misunderstand us or even distrust us due to rumors or false information. For example, in 2020, we called on the industry to pay attention to reserve issues, but many people were unaware. Long-time users (who have followed us since 2013) have a high level of trust in us, but new users have limited understanding of Gate.

Therefore, we decided to showcase ourselves more, enhancing user trust through brand building and market activities. We began increasing brand exposure, strengthening interactions with the community and partners in the industry, sponsoring teams, hosting concerts, and other activities. These initiatives helped more people understand Gate's values and strengths.

Colin: Your personal Twitter has also become more active, and Gate has sponsored many events, such as team collaborations. This kind of investment is difficult to see immediate returns from. How do you weigh this?

Han Lin: I used to think that such investments were hard to quantify in returns, especially as someone with a technical background; I was more accustomed to looking at data and concrete results. But later I realized that brand building needs to attract attention and let users know who we are and what we do. For example, collaborations with Inter Milan, the F1 Red Bull Racing team, and music festivals have allowed more people to recognize Gate. Although these endorsements and exposures are difficult to quantify directly, the improvement in brand trust is significant.

Cost of Compliance: High Short-Term Costs, Long-Term Potential in Markets like Japan

Colin: Over the past year, Gate has made many moves in compliance, but compliance may mean withdrawing from some offshore markets, such as Japan. Is this a dilemma? Will it sacrifice short-term profits?

Han Lin: It does require sacrificing short-term profits, but we value long-term benefits more. I entered this industry in 2012 and witnessed its rapid development. In 2013, there were only about 1 million global users, and now there are over 500-600 million. Although compliance has high short-term costs and low returns, it is necessary in the long run.

Our group has invested years in compliance, applying for licenses and making compliance arrangements in countries and regions such as Europe (like Malta), the Middle East, Asia, and the Americas. Last year, we acquired related businesses in Japan (cryptocurrency service providers) and communicated with local regulatory authorities to clean up user data to meet compliance requirements. The Japanese market has huge potential, with a population of 120 million and strong investment demand, occupying an important position in global asset markets like foreign exchange and stocks.

Colin: Will compliance bring short-term financial pressure to the company?

Han Lin: The pressure is indeed significant, mainly reflected in labor costs and infrastructure investments. The demand for compliance personnel and security personnel has increased, and processes like wallet storage, KYC (Know Your Customer), and KYT (Know Your Transaction) also need to be managed separately. These basic expenses are very high.

Colin: You've also spent a lot of time in Hong Kong recently. Do you particularly value the Hong Kong market?

Han Lin: Hong Kong has a superior geographical location and is a financial center where East meets West, with frequent trade and capital inflow and outflow activities. We are very interested in the Hong Kong market and are considering rearranging applications for relevant licenses.

Colin: Is the progress going smoothly?

Han Lin: We encountered some difficulties when initially applying for licenses, as regulatory authorities were quite strict. However, this year the Securities and Futures Commission proposed a new roadmap with a more open and pragmatic attitude. They have begun to gain a deeper understanding of the industry and gradually relax restrictions, which is a positive signal for us (referring to Gate.HK).

Technological Focus: Blockchain Scalability and Efficiency Cost Optimization

Colin: As someone with a technical background, how do you view the development of blockchain technology? Which technological routes or ecological technologies do you currently recognize?

Han Lin: We have always focused on technologies related to the ecosystem, especially scalability technologies at the blockchain level. The current capacity of blockchain is limited, but as the user base grows and industry applications expand (such as payments, cross-border e-commerce, online gaming, NFTs, etc.), the demand is increasing. The existing throughput, transaction speed, and costs are difficult to meet the demand, so scalability technology is an urgent issue to be solved.

The emergence of new technologies like Layer 2 and Layer 3 has indeed brought significant improvements, but there is still much room for optimization. We pay close attention to these technologies because if the underlying technology is well done, building upper-level facilities (like trading and payment systems) will be easier and can better integrate with traditional markets, making it easier to promote real-world applications. However, the costs are still relatively high at present.

Colin: Which scalability technology do you think is performing well currently?

Han Lin: Optimistic Rollup is currently the most widely used solution, but zero-knowledge proof (ZK) technology is also receiving a lot of attention. ZK has advantages in speed and experience, but the costs are high. We are investing in related fields, such as chip companies that support ZK, to enhance computing efficiency. These issues will gradually be resolved in the future.

Colin: What do you think of solutions like Solana that improve speed by sacrificing some degree of centralization?

Han Lin: Such solutions are indeed efficient and can quickly solve problems, but people also wonder whether a higher degree of centralization might bring security issues. After all, it is not that decentralized.

For many applications, the high cost is the main issue, and reducing expenses is a priority goal. If the application scenario does not require high asset security or does not need long-term asset storage, then such solutions are feasible. For example, Memecoins are very suitable for running on Solana. However, for mainstream asset storage, users may prefer to choose more solid chains like Bitcoin and Ethereum.

Predictions on the Meme Coin Craze: Community-Driven + Celebrity Effect Promotes Breakout, Long-Term Cultural Phenomenon

Colin: Speaking of meme coins, do you think the current meme coin craze is a short-term phenomenon, or will it become a long-term cultural phenomenon in the industry?

Han Lin: Initially, meme coins were just a flash in the pan. At the end of 2013, Dogecoin appeared, which was cloned from Bitcoin code, featuring a Shiba Inu as its logo. At that time, we referred to it as "Dogecoin," the earliest prototype of meme coins. Many similar coins emerged then, but most disappeared, with only a few surviving.

The early meme coin craze quickly passed, but the situation is different now. Meme coins have become a community-driven phenomenon; as long as people like them and form a consensus, a coin can be issued. This is especially evident this year, as celebrities have also started issuing coins. Even those who are not in the crypto space can issue coins as long as they have fans. In the past two years, some celebrities began trying to issue coins, but they had many concerns, such as whether it would harm their reputation or involve legal issues. After Trump issued a coin this year, these issues seemed to be resolved, and many people began to feel relieved, thinking, "I can issue a coin too."

Colin: Can you share your personal asset allocation? Is it mainly in Bitcoin?

Han Lin: I personally don't have much time to think about asset allocation; it's mainly related to the company's assets.

Colin: What about the company's asset allocation? Is it mainly in stablecoins and cash?

Han Lin: The company needs to operate stably, so we adopt a low-risk allocation, mainly in Bitcoin and Ethereum. Additionally, platform tokens also need to be securely stored.

Industry Cycle Outlook: Bitcoin Halving Impact Weakens, Traditional Finance and Geopolitics Become Key Variables

Colin: Having experienced multiple industry cycles, how do you view the current market stage? Will the bull market continue this year, or are there signs of a bear market?

Han Lin: In the past, people often said that bull markets occur every four years, related to the Bitcoin halving cycle. At that time, the crypto space was small and not greatly influenced by external factors; industry development mainly relied on internal events. For example, during Bitcoin halving, market discussions were heated, easily triggering a bull market. But now the situation is different; cryptocurrencies are increasingly linked to traditional finance, and the influence of traditional financial markets is very significant. Even geopolitical events (like the outbreak of war) can lead to sharp market fluctuations.

I feel that there are no obvious cyclical patterns now. Since the market began to heat up at the end of 2013, through 2022 and 2023, the market has fluctuated greatly. Many people felt that the bull market might have ended, but in reality, the market has warmed up again without anyone noticing. From last year to this year, we feel that the market is still quite good.

Colin: Is your company also relatively optimistic about this year's and future trends?

Han Lin: Yes, relatively optimistic. There are several main reasons: First, the meme coin craze is still continuing to ferment. Although the initial speculative enthusiasm may have declined somewhat, it is gradually shifting towards a broader movement, with more celebrities beginning to participate in issuing coins.

Another important point is that after Trump took office, he encouraged Bitcoin to be used as a reserve asset for the United States. Other countries may follow suit. Bitcoin has very good characteristics, with a fixed total supply (21 million), and it will not be issued beyond mining output. This scarcity makes it a quality reserve asset. More and more countries and enterprises may adopt Bitcoin as a reserve asset, which will drive up its price. If other countries do not do this, the future costs in the financial sector will be very high. So I believe this trend will continue, and the market remains relatively optimistic.

Colin: This cycle seems a bit like "The Emperor's New Clothes." Has the evaluation of VC-backed tokens become stricter?

Han Lin: The main change is in the form of issuing tokens; now communities can issue tokens directly without the need for VC participation. In the past, projects needed to go through multiple rounds of financing, with VCs playing an important role, ultimately bringing tokens to retail investors through IEOs. But now communities can issue tokens directly, skipping the middle steps, which has weakened the role of VCs.

However, there are still many good projects that VCs invest in, especially those that require long development cycles. These projects cannot be completed overnight and need time and patience, and VCs can still play an important role in this process.

Colin: Finally, I would like to know, what areas do you mainly focus on in your work? Where do you spend the most time?

Han Lin: I still spend most of my time on technology and products because I believe this is the foundation. Although we also do brand sponsorship and marketing, without technology and products, everything is just a house of cards.

Technical Barriers of Exchanges: Underlying Security, Multi-Chain Support, and Ecological Service Build High Thresholds

Colin: There has been a viewpoint that the technical barriers of centralized exchanges are now very high, making it difficult for new entrants to imitate or replicate quickly. There are also some service providers specializing in cloud technology. What do you think?

Han Lin: Yes, the technical barriers of exchanges are indeed very deep. This is mainly reflected in two aspects: first, the underlying technology needs to be very solid, especially in terms of asset protection. Supporting multiple currencies and blockchains requires substantial investment; for example, we have thousands of servers to support these chains and data collection. This itself is a very high threshold.

Second is the complexity of upper-level ecological services. Exchanges are traffic entry points, and once users come in, they need various services, such as spot trading, wealth management, copy trading, quantitative trading, etc. All of these require significant technical investment, with both deep and broad thresholds. The team size of centralized exchanges is usually large, with thousands of people being the norm, while some projects may only need a dozen people or even one person to operate.

Colin: As someone with a technical background, do you envy those small and efficient projects? For example, some DeFi projects can generate high profits with just a dozen people. Do you feel that your current work is tiring and envy them?

Han Lin: I do envy them, but I think this is the advantage of decentralized technology. Blockchain technology solves many problems, such as asset security and transaction confirmation, without the need for centralized institutions to intervene. So you see, many people say that the trading volume of centralized exchanges (CEX) is shifting to decentralized exchanges (DEX). We are also exploring in the Web3 field, adopting whichever side has technological advantages without stagnating.

Core of Corporate Culture: Pragmatically Solve Real Problems, Oppose Impetuosity and Repeating Wheel Invention

Colin: Finally, what do you think is the most important value of Gate? Or what corporate culture do you most recognize and hope employees to unify around?

Han Lin: I hope everyone remains grounded and not too impetuous. Avoid always thinking about shortcuts and overtaking on curves; such things should never be mentioned. It is essential to do things earnestly and genuinely solve problems, especially those that others cannot solve. Only in this way will users recognize you, and the market will need you.

Additionally, do not reinvent the wheel. The corporate culture we encourage is pragmatic and innovative, rather than doing useless work.