Key Insights
- We recently sat in an interview with Helmut Siedl, the visionary behind DMD ($1.00) Diamond, to learn about his views on crypto, decentralization, and the outlook of DMD Diamond.
- Siedl believes that buying into crypto when the market is red might be a great strategy.
- Holding and staking crypto can be very profitable if done right, even in bear markets.
- DMD Diamond is Siedl’s legacy and has the potential to change the world in terms of decentralization and real-world adoption.
The world of crypto is full of different classes of people, from innovators to investors, and Helmut Siedl is one of them.
Siedl, who is the visionary of DMD Diamond, is known for being outspoken and unconventional when it comes to innovation.
He is one of the inventors implementing the innovative technology that powers DMD Diamond.
He is also a strong believer in the principles of Decentralization. Recently, Siedl sat with us in an hour-and-a-half-long interview, sharing some fascinating insights into his journey as an inventor, his views on crypto, as well as his strategies and visions for the future.
Below is what he had to say:
Interviewer: Helmut, thank you for joining us today.
Helmut Siedl: Thank you for having me.
Interviewer: You are well-known in the Austrian crypto community for your unconventional views and the way you passionately advocate for blockchain technology. Let’s start with the basics—how did your crypto journey begin?
Helmut Siedl: My journey into crypto began in late 2013. By today’s standards, it was relatively early. However, I feel like I arrived late. I often describe myself as one of the “late ones of the early born”—if that makes any sense.
At the time, I started investing in Bitcoin and other cryptocurrencies. Mostly, I applied a contrarian approach—buying when the market looked its worst.
Interviewer: That’s interesting. Can you elaborate on this contrarian strategy and how it worked for you?
Helmut Siedl: Of course. My principle was simple: I always bought when everything was screwed.
I wasn’t afraid to take risks, even taking out loans to invest. There was a point when I told myself, “If this doesn’t work, I’ll be donating blood plasma for seven years to pay it off.”
Fortunately, it did work. My initial investment of about 40,000 euros eventually turned into well over 10 million euros.
Interviewer: That’s an impressive return! Did you always get the timing right?
Helmut Siedl: Not always. The timing wasn’t always perfect.
For example, in 2017, I realized profits too early when I took out my first three million euros in the spring of 2017 and missed the later market peak.
The same thing happened in 2021 when I sold Ethereum at 300 euros instead of waiting for 3,000 euros.
Interviewer: That must’ve been hard to pull through.
Helmut Siedl: It was, for a while. However, these experiences taught me the importance of risk management.
I’m more conservative today because of it. If an investment doubles, I’m happy, whereas before, I aimed for at least a tenfold return.
To date, my biggest win was a 400x return on $NEM—which—ironically, is now a dead project.
Interviewer: Your investment philosophy seems to be deeply rooted in blockchain ideals. Can you share more about that?
Helmut Siedl: Absolutely. I’m an idealist at heart.
For me, crypto isn’t just an investment. It’s part of a larger cultural and economic shift, and I focus on projects with strong fundamentals.
I mostly buy projects related to blockchain infrastructure rather than hype tokens like meme coins.
Interviewer: That seems reasonable.
Helmut Siedl: It is, I hope. I call hype tokens “frogs and dogs.”
Bitcoin is essential as a market pulse and offers limited upside for me. However, I hold two Bitcoins for my children—those are my “Holy Bitcoins.”
Most of my other assets are in projects that provide staking or other rewards, and staking alone generates about 40,000 euros monthly for me.
Interviewer: That’s substantial. Could you explain your investment strategy when it comes to managing market cycles?
Helmut Siedl: It’s very straightforward.
I always keep part of my assets in crypto and part outside. In bear markets, more flows into crypto. In the hype phases, more go out.
There were new all-time highs [that came] too early. So far, the meta has shifted—maybe as a delayed reaction to the cycle that was handicapped by Corona in 2021.
But I don’t fully trust that — I’m ready for anything and can afford to get out too early again. Profits have already been made.
Interviewer: Your use of traditional assets as a hedge against crypto bear markets is interesting. Can you tell us more?
Helmut Siedl: Certainly. Anyone who pays taxes has made a profit, and transparency is critical for me.
I have partnered with Schelhammer Capital (a subsidiary of GRAWE) for regulatory compliance.
I have also achieved the highest VIP level on Bitpanda, and my holdings of BEST ($0.93) tokens provide substantial rewards for me—most of which I use to cover my living expenses through the Bitpanda Black Edition credit card.
This way, I don’t reduce my principal holdings.
Interviewer: If you had to pick five cryptocurrencies to hold until 2025, what would they be?
Helmut Siedl: *laughs* Can I take stablecoins, too? My picks would be Bitcoin, Ethereum, Solana, Pantos, and the Bitpanda Ecosystem Token.
These projects have stable infrastructure and offer meaningful rewards.
Interviewer: Let’s talk about your blockchain project, the DMD Diamond Chain. What inspired you to take it on?
Helmut Siedl: DMD Diamond is more than an investment; it’s my legacy.
If someone asks me one day what I have left to the world, it will be the DMD Chain.
The project started in 2013 but was abandoned by its original developers.
I worked with a dedicated community to revive it, investing over a million euros of personal funds and restructuring it from scratch.
Today, it’s a chain built on principles I deeply value: decentralization, censorship resistance, and financial freedom.
Interviewer: What makes the DMD Diamond Chain unique?
Helmut Siedl: Several factors.
First, we use the Honey Badger consensus mechanism, which ensures instant finality and enhanced censorship resistance.
The blocks in the DMD Diamond chain are created dynamically based on network activity and do much to save storage space.
Our governance is fully decentralized through a DAO ($1.96), and it even runs on integrated features like on-chain random numbers and front-running prevention—both of which are features that set us apart.
Interviewer: What are the challenges you face with DMD Diamond?
Helmut Siedl: The biggest challenge is balancing decentralization with scalability.
It’s a big part of the scalability trilemma, where many chains sacrifice one for the other.
We’re working hard to maintain both without having to sacrifice any part of blockchain principles.
Interviewer: Sounds Interesting. What other challenges are there?
Helmut Siedl: Despite all we have managed to achieve, another issue with DMD Diamond is its chain of about 60 active validators — a relatively low number compared to other chains like Ethereum and Solana.
But we’re relatively larger than chains like Sui and Cosmos.
The risk of a regulatory attack could be seen as a challenge. However, here also the community could take appropriate countermeasures.
Interviewer: As we wrap up, what’s your vision for the future of blockchain?
Helmut Siedl: I believe blockchain can create a fairer financial system for everyone. But this will require dedication to decentralization and transparency.
My hope is that in 20 years, I can look back and say that the DMD Diamond Chain contributed meaningfully to that vision.
Interviewer: Thank you for sharing your insights, Helmut. It’s been a pleasure.
Helmut Siedl: Thank you. The pleasure is mine. I’m always happy to discuss the future of blockchain and crypto.
Continue Reading: Exclusive Interview With Helmut Siedl, Austrian Crypto Visionary and Founder of DMD Diamond
