In this episode, we sit down with Frank, co-founder of Safello, the leading crypto exchange in the Nordics, to explore their bold decision to convert their entire Bitcoin and Ethereum treasury into Tao, the native token of Bittensor. Frank walks us through Safello’s 11-year journey since 2013, from surviving the Mt. Gox collapse to becoming a publicly listed company on Nasdaq First North. We dive deep into why they made the strategic shift from traditional crypto assets to Bittensor, and what makes this decentralized AI protocol so compelling. We unpack the mechanics of Bittensor: how it creates a decentralized incentive mechanism for AI development through 128 specialized subnets, each solving different problems from text generation to climate modeling. Frank explains the complex dynamics between miners, validators, and the newly introduced alpha tokens, and why he believes this represents a "black swan event" in AI that most reports are ignoring. We also explore the value flow between Tao and subnet alpha tokens, the challenges of the new tokenomics introduced in February, and why Frank sees Tao as a credible balance sheet asset for companies seeking exposure to decentralized AI. The conversation touches on regulatory compliance under Europe's MiCA framework and Frank's broader reflections on crypto's evolution from its early ideals to today's reality. 📣📣📣 Building something exciting & want to come on the show or collaborate with us? Email us at 👉👉 business@teachmedefi.de 👈👈 or DM us on X: https://www.twitter.com/teachmedefi 👉 Please share this if you learned something! What should we discuss next? Comment! 👉 Fed up with crypto influencers? Follow us for quality education. ▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀ Guest Links / Additional Material: https://safello.com/labs ▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀ ▸ Find us on Youtube: https://www.youtube.com/@teachmedefi ▸ Find us on 𝕏: https://x.com/TEACHMEDEFI ▸ Find us on Instagram: https://instagram.com/TEACHMEDEFI ▸ Find us on TikTok: https://www.tiktok.com/@teachmedefi_official ▸ Find us on Podcast Streaming Sites: https://podcasters.spotify.com/pod/show/teachmedefi ▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀▀ Timestamps: 00:00:00 - Introduction and technical difficulties 00:01:03 - Frank's background and Safello's founding story 00:02:24 - Safello's journey from 2013, surviving Mt. Gox, regulatory compliance 00:03:42 - Strategic shift from Bitcoin/Ethereum to Tao treasury 00:08:52 - What is Bittensor and what problem does it solve? 00:09:22 - Decentralized AI as alternative to centralized players like OpenAI 00:11:55 - Comparing decentralized vs centralized AI compute efficiency 00:13:15 - Token usage metrics - AI tokens vs crypto tokens 00:14:40 - How Bittensor works: subnets, miners, and validators explained 00:18:48 - Specialized mining across 128 different subnets 00:19:46 - Game theory and incentive mechanisms in Bittensor 00:21:18 - How subnet rewards are determined and alpha token dynamics 00:26:05 - Domain squatting problem and subnet limitations 00:29:17 - Value accrual between alpha tokens and Tao 00:32:39 - Utility and purpose of alpha tokens 00:35:22 - Competition between subnets for Tao emissions 00:37:24 - Bittensor's market cap approaching Polkadot 00:40:00 - Tao as credible balance sheet asset for AI exposure 00:43:14 - No pre-mine structure and organic protocol development 00:45:42 - Current subnet landscape and investment opportunities 00:46:40 - MiCA compliance challenges and regulatory landscape 00:50:28 - Reflections on crypto's evolution and regulatory gatekeeping 00:52:13 - Closing thoughts -------------- Disclaimer: TEACHMEDEFI is a provider of entertainment and opinions. We are neither a broker/dealer nor an investment advisor. This is not a service for issuing or receiving financial or investment advice. None of our content constitutes a recommendation – or should be understood as such – to conduct transactions in securities, cryptocurrencies, or crypto-assets, or to engage in any of the investment strategies presented in our discussions or provided content. We do not provide personalized recommendations or views on whether a stock, cryptocurrency, crypto-asset, or investment approach is suitable for the financial needs of a particular individual.