Editor | Wu Says Blockchain

This episode of Wu Says Space features guests Shuyao Kong, co-founder of MegaETH, and Jarseed, a cryptocurrency practitioner. The two guests reflect on the actual state of Dubai under the shadow of escalating conflicts related to Iran from the perspectives of long-term residents and exchange practitioners. They analyze the reasons behind Dubai becoming a crypto hub and discuss the different working and living experiences compared to places like Hong Kong.

Shuyao recalls the rapid evacuation from Dubai after the outbreak of conflict, mentioning the immediate impact of missiles, drone attacks, and air defense interceptions. He also talks about government alerts, mobile notifications, flight disruptions, and the challenges of leaving via third countries. Jarseed, on the other hand, shares his earlier departure from Dubai, explaining that some highly mobile crypto practitioners had already been vigilant about regional security risks and had turned to places like Hong Kong before and after the escalation.

The two guests also discuss how war has affected locals' sense of security and market sentiment, including how "attacks on urban areas" are more about damage caused by intercepting debris, the markedly different responses from long-term residents versus short-term expatriates, and how narratives around property, gold, oil prices, stablecoins, and Bitcoin are being reassessed against the backdrop of conflict. Overall, while the conflict has not immediately shaken Dubai's status as a crypto hub, it has prompted practitioners to more specifically reevaluate the city’s safety, stability, and alternatives under geopolitical pressure.

The views expressed by the guests do not represent Wu Says's position and do not constitute any investment advice. Please strictly follow local laws and regulations.

Why Choose to Go to Dubai?

Cat Brother: Can you introduce when you went to Dubai and what the reasons were at that time?

Jarseed: I went to Dubai around March 2024. At that time, it was due to the needs of exchanges going overseas, and the team needed to choose a location abroad. Exchanges like Binance, OKX, Bybit, Bitget, and MEXC had already set up offices in Dubai, so many industry practitioners, exchanges, and project teams gathered there. I judged that the industry atmosphere in Dubai would be relatively good, so I decided to go.

We actually had quite a few options, including Singapore, Hong Kong, Kuala Lumpur, and Dubai, but I ultimately chose Dubai. On one hand, there are indeed many exchanges, companies, and projects concentrated in Dubai, creating a strong industry atmosphere. On the other hand, I like the time zone of the UAE, UTC+4, which conveniently connects Eastern and Western trading sessions, making it comfortable for work. Additionally, I wanted a change of environment. Compared to familiar Asian cities like Hong Kong and Singapore, Dubai offered me a fresher international experience, so I decided to go there.

Shuyao: I went to Dubai a long time ago, about 10 years ago. After graduating from university in the United States, I lived in Africa for two years, specifically in Nigeria. Then in 2013, after living there for two years, I was transferred to our company’s regional headquarters in Dubai. I was in Dubai in 2015 and stayed until 2018. After that, I returned to the U.S. to attend business school. Since 2018, I have been in the U.S. at Consensys’s office. Later in 2022 or 2023, I felt that U.S. policies were unfavorable, and having lived in the U.S. for ten years, I often faced visa issues. At that time, I didn't get selected for the H-1B, but I always had a home in Dubai, so I returned to Dubai to start a business, which was also convenient.

Differences and Advantages of Living in Dubai Compared to Other Crypto Hubs

Cat Brother: What are the main differences between Dubai and other crypto hubs like Hong Kong, Singapore, as well as New York and Silicon Valley in the U.S.? From the perspective of living or sense of security, what are Dubai's advantages that make you willing to live there for such a long time?

Shuyao: I think the biggest advantage of Dubai, whether ten years ago or now, is that it is itself a highly developed city. Hong Kong and Singapore are certainly prosperous too, but Dubai has a unique feeling of constantly opening up new spaces in the desert, which is quite different.

When I first went there, there wasn't even a Chinese supermarket; later when I returned, Chinese food and supermarkets became very convenient. My parents come to stay for a month every year, and I've had no difficulty adapting to life there. The network of Asian supermarkets is also very mature, and after placing an order, vegetables can be delivered directly to your home.

So I feel that Dubai, compared to many mature international cities, has stronger developmental space and plasticity, and it's also very safe. On the other hand, it is still a highly dynamic emerging city, with rapid changes in regulation and demographics, and this fluidity itself means more opportunities. You always feel there are new things popping up around you: new restaurants, new developments, and many Chinese people going there to buy property.

For crypto practitioners, the environment is quite friendly. In many other major cities, those in the crypto circle are somewhat stigmatized, but in Dubai, I have never felt looked down upon for being involved in crypto. Overall, it is a comfortable city to live in and quite friendly to Chinese people.

Cat Brother: I understand; I also have a similar feeling. Two years ago and last year, I went to Dubai for TOKEN2049 and Binance Blockchain Week. I even ordered snail noodles once; even though the delivery was from a South Asian guy, it was convenient to have it delivered to the hotel. Additionally, it's indeed friendly to the industry; at least, I didn't feel any discrimination at the activities I attended that were more industry-focused.

You’ve been in Dubai for ten years, which gives you a lot of authority to speak. Could you share your perspective on when Dubai began to become a crypto hub, attracting so many exchanges to set their headquarters there? Was there any key turning point during that time? It shouldn't be in the current state at least as of 2015, right?

Shuyao: Actually, as early as 2017, when I first entered the crypto circle, Dubai was already a significant hub; many people just didn’t realize it yet. At that time, I was doing Asia BD at Consensys, primarily interfacing with the Dubai government. My first client was Dubai Smart Government, which was looking to upgrade government services using blockchain technology.

Moreover, since I had previously worked in consulting with a focus on banking, I also interacted with many local banks and the central bank. At that time, the Dubai government regarded blockchain as an important strategy to promote, so many colleagues from Consensys around the world would come to Dubai. It was already very active in 2017, and I frequently spoke about blockchain at various conferences.

However, I believe the real turning point that made Dubai the preferred landing point for many people came after the DeFi Summer. When people started making money, their first consideration was tax issues, making Dubai a popular choice. Later, when U.S. policies on crypto worsened, and Europe’s economy showed clear signs of weakness, even more people turned to Dubai.

Of course, exchanges were also part of this wave, but I interacted more with traders and independent builders. Many of those who moved during the second wave were also essentially looking for tax evasion.

There is also something many people don’t know: the tax on crypto in India is actually very high, so many entrepreneurs in Dubai, especially those I see around me, are actually from India, about 60% to 70%.

The Majority of Crypto Practitioners in Dubai Are Exchange Employees

Cat Brother: I’ve always had a feeling that among crypto practitioners in Dubai, are exchange employees particularly numerous? Also, as an exchange employee in Dubai, what are the notable differences compared to working and living in other places? What do you think is Dubai's biggest advantage?

Jarseed: This might also relate to my circle, as I'm in an exchange myself, so many people I interact with are also exchange practitioners. But from my experience, Dubai indeed has a large concentration of exchange employees, with many from Binance in Dubai and Abu Dhabi.

Moreover, many people are not just there for work; they have actually settled down, bought homes, brought their families over, and their children are studying there.

From the perspective of work and life experiences, the biggest difference is that here, you can say you’re doing crypto without any sense of taboo or needing to be secretive, especially if you previously worked in Asia, like mainland China; that contrast can be especially obvious.

Additionally, Dubai is very accepting of cryptocurrencies. Buying a car, buying a house, including OTC exchanges, many scenarios are already quite mature. Overall, the openness to using crypto and for practitioners is my most direct impression.

As Crisis Approached, They Left Dubai in Sequence

Cat Brother: When did you leave Dubai? Was it because of the recent conflict with Iran?

Jarseed: I have already left. The conflict with Iran has always been ongoing. If people have been paying attention, this time might be considered quite severe, but previously conflicts between Iran, Israel, and the U.S. have always existed. I left Dubai in December last year. How to say it, I still had some premonition that there might be problems, so I chose to leave first.

I chose to go to Hong Kong because I thought Hong Kong would still be one of the main themes of development for the crypto industry this year, and it aligns well with Hong Kong, so I applied for a job there.

Not many of my friends or colleagues left Dubai. Many friends chose to buy homes and settle down in Dubai. The property situation can easily tie people to a place. Of course, not everyone in our industry is like that, but many people chose to stay partly because they had invested in local properties and their children are attending school there, and so on.

As for me, I went there relatively late and didn’t buy property, so it was easier for me to leave.

Shuyao: I also left. At that time, a colleague was on a business trip in Dubai with me. Initially, I didn't take it too seriously, but in the end, I left with my colleague the day after the war broke out.

I wrote an article that morning. My colleague and I were working while having coffee, and when we heard about the fighting, my first reaction was to think that such things in the Middle East are common and that it wouldn’t reach Dubai, so I wasn't too concerned. However, by the afternoon, missiles were starting to fly overhead.

But at that time, I still wasn’t too anxious; I even went to a Pilates class. During the class, there were occasional booming sounds outside, but I didn’t feel anything was wrong. Later, I reflected that this response was actually related to the long-established trust in Dubai. Whether for expatriates or locals, there is a default assumption that the government can control the situation and will not let things get out of hand. This is one of the foundational sources of safety in Dubai.

That night, when I was on the phone with my partner, there were still sounds of intercepting missiles overhead, and I still didn’t take it too seriously. Later, I checked Twitter for updates and saw a female analyst posting a long thread explaining the asymmetry of costs in this war: Iran can continually launch low-cost drones and missiles, but the defense side has to spend millions or even tens of millions of dollars each time to intercept, and the number of anti-missile systems is limited. That was when I began to feel something wasn’t right.

However, that night I still didn’t leave. By the next morning, I thought maybe it had passed, but since I lived near the coast facing towards Iran, I heard two loud bangs in the morning, and even the balcony door shook noticeably. It was then that I realized this situation might not be resolved shortly. So I immediately called my colleague, quickly packed my bags, and crossed the border into Oman, catching the first flight out.

Cat Brother: Your experience sounds almost like a movie scene, very dramatic. Because we see news from Dubai, we might only perceive information through a screen. Plus, before hearing your account, my perception had always been that while Dubai might be attacked, it didn’t seem to happen that frequently. My deepest impression is of a drone attack on the Dubai Financial Center. But from your description, it seems that these attacks are actually ongoing, right?

Shuyao: Yes, it’s all-day long, and often happens in the middle of the night. Iran has its own schedule, sometimes they prefer to strike at night, and sometimes in the morning; they probably rest from noon to afternoon, and so there aren’t as many attacks then. Most attacks usually don’t hit near you, so overall, not many people get injured. Yes, there was a hotel that got hit on Palm Jumeirah. Most of the time, what you hear are the sounds of intercepted missiles exploding overhead, just like something blowing up above you.

Just imagine, you’re working or sleeping, and suddenly, there’s an explosion overhead; what do you do? Do you run downstairs to the basement, or do you stay put? Including these last couple of days, it has intensified; if you watch many videos, missiles are flying towards Dubai like a meteor shower, and then you see the anti-missile systems taking them down one by one.

Cat Brother: So far, I haven't seen news of any Dubai residents dying as a result of this, right?

Shuyao: Yes, some have. Some people were unfortunately hit by falling debris, and there's nothing that can be done.

Cat Brother: From your perspective, has there been an influx of crypto practitioners who urgently left Dubai after March because of this situation?

Shuyao: It seems that very few people I know are still staying there. However, friends of mine who have lived in Dubai for ten years and are not in the crypto industry have not left much. As Jarseed mentioned, many have children, and especially many are reluctant to leave with their children since the kids need to go to school.

On the work side, I know some traditional large companies are hiring planes to evacuate employees—those very wealthy companies, basically chartering flights directly out. Some of my friends' companies also say, "OK, you can leave now." Sometimes Dubai's airspace gets locked down due to too many missiles, so you have to cross the border to Oman by land first, and then the company will arrange for a private flight for you. Those who want to leave can actually leave.

The Impact of War on the Residence and Daily Status of Dubai Practitioners

Cat Brother: After you left, seeing Dubai continually under attack, do you feel more justified in having left? What is the current status of your friends who stayed there, and are their lives significantly affected?

Shuyao: No problem, I feel like staying there is not an issue. I am someone who has a lot of confidence in Dubai. Although I left because my colleague was with me, I think this is the situation: would this war end in a short time? Certainly not. Will Dubai recover in a short time? No. But in the medium to long-term, I still have faith in Dubai. I feel like this is just a "bear market" that every organization or institution will go through; right now, Dubai might simply be in its "bear market" phase.

Those who remained around me are still going about their normal lives, often sending me photos and saying they went out to have fun, seeming not too affected.

I’m not sure about people in the crypto industry. In our circle, while many have moved to Dubai, they may only live there for two months a year and aren’t around for the rest, so they just enjoy the tax benefits there. But those who genuinely live there long-term, I don’t think they are greatly impacted. For myself, as soon as things get a bit better, I will definitely return. I believe Dubai is a very suitable place for people to live. Comrades, I must once again express my love for this city.

Jarseed: My feelings are similar to Shuyao's. Don’t we often refer to ourselves as digital nomads? That "nomad" aspect may lead to more movement. However, for those who have lived in Dubai long-term, especially with families, things are actually okay. There isn't much panic, nor is there an urgent need to leave; they are still working and living normally.

Cat Brother: In such situations, would the Dubai government issue alerts? For example, mobile notifications to remind people to take shelter in basements—does the official government have such precautionary measures?

Shuyao: Yes, and your phone will issue a siren-like alert, notifying you when there is a situation. At that point, you might also hear explosions overhead.

Cat Brother: Is this situation frequent, and do you take cover?

Shuyao: In the beginning, yes. At that time, people in our building would go downstairs, but later everyone got tired of it. Since it doesn’t hit directly, as long as the anti-missile systems are working, you’re actually safe, and everyone knows that.

Cat Brother: But didn't you say there are still fatalities? This implies that the deceased are relatively unlucky, correct? Is it a very low probability, primarily due to being hit by building debris?

Shuyao: Yes, because once you intercept something in the sky, it is still going to fall. The reason for the recent fire at that five-star hotel on Palm Island is this. There’s also a building next to my home that had a black hole burned into it because of this. Then there’s the fire at Dubai Airport, and the fires at the oil fields in Abu Dhabi, all due to this. The reason why oil prices are rising is also because of this context.

Jarseed: Including the earlier mentioned DIFC, it’s not that it was directly attacked; rather, it was damaged by the debris from intercepting missiles.

Cat Brother: So it seems everyone overall has a comparative confidence in the interception system, meaning they won’t be very worried. Of course, I’m not particularly knowledgeable in military matters. Are people concerned about saturation attacks that might exceed the interception system’s capacity, or is there such risk?

Jarseed: I think actually, the point Shuyao mentioned earlier aligns with similar introductions I’ve seen, about the asymmetry of this kind of warfare. The cost of drones is very low, but the cost of intercepting missiles is extremely high, and their quantity is limited, making resupply very difficult in a short time.

Many of the targets Iran has focused on this time revolve around the entire radar system and certain oil field-related systems. If this escalates further, it might also involve desalination facilities, etc. If it reaches that level, the situation could become quite serious.

However, so far, they have not targeted regular urban facilities, residential areas, residential buildings, or office buildings. Therefore, overall, people’s feelings are relatively calm. This is not a total war or indiscriminate bombing.

Cat Brother: Could this also be related to different demographic groups? For instance, lower or middle-income people more focused on life and family might find it difficult to leave; while wealthy individuals with more assets could more easily go abroad. They might not accept even a 1% or 0.1% risk, and would prefer to vacate Dubai for a while. Is this phenomenon present? In other words, whether or not to stay in Dubai may relate to a person's class or income level?

Jarseed: I've heard that there seems to be such a situation. Some people might temporarily go to Oman or other countries for a while. But I’m not entirely clear on that.

The Impact of War on Prices of Property, Gold, and Evacuation Paths in Dubai

Cat Brother: You mentioned many friends, especially exchange practitioners, are buying properties in Dubai. I've recently seen some claims on Twitter that Dubai's property prices have dropped significantly, possibly by 20% to 30%, and some say gold in Dubai is also seeing a discount compared to other places, likely due to transportation inconveniences. Have you heard about these situations? How credible are these reports?

Jarseed: There is such a situation. When looking at the Dubai real estate market, it primarily revolves around that index, which indeed has dropped significantly lately, close to 20% to 30%.

Shuyao: Yes, housing prices are definitely going to drop, and so is gold. Dubai is the largest gold black market in the world; once a lot of gold comes in, it can be "washed" easily here. Now that gold cannot be exported, its price has dropped. Comrades, we still need to trust Bitcoin.

Cat Brother: Shuyao, why did you leave through Oman? Was it because of flight restrictions from Dubai, or were tickets too expensive and flights too few? I remember when the conflict first broke out, there were social media screenshots claiming tickets from Dubai to Hong Kong shot up to millions. Were those reports true?

Shuyao: At that time, there were no flights. I left quite early, and at that time, there simply were no flights.

It was interesting because at that time, we happened to have an investor around, and we were discussing how to leave. He wanted to cross the border first, and I told him to try and see if he could get through. Later he got to the border and said it was closed. At that moment, I thought this was bad; I really had to find a way, because the place I lived was particularly prone to being bombed, so I had to find a new place.

However, I later discovered that there were many rumors during wartime. Like your mention of millions for a plane ticket, many of those messages were actually exaggerated. If you personally go to the border, you would know. I simply called an Uber, and directly went over, bought a ticket after crossing the border, and left. I think many people are just unwilling to try it themselves, so they sit in front of their phones, watching various messages. I find that to be a more passive approach.

At that time, there really were no tickets available. Later, flights gradually resumed, but once they did, they prioritized those who had already booked flights, such as stranded tourists, ensuring they were sent out first.

Cat Brother: You mentioned that the place you lived was particularly vulnerable to bombing; why was that? Was it near a military base or for some other reason?

Shuyao: Yes, I lived in Jebel Ali, which is considered a disaster area. Plus, I lived by the sea, and if I look out towards the opposite direction, I can see over there.

How Is the Demand for Bitcoin and Asset Buying Mood Under War in Dubai?

Cat Brother: Wouldn’t the drop in property prices, the discount on gold, and the difficulty in carrying assets significantly increase the demand for Bitcoin or stablecoins as crypto assets?

Shuyao: I personally think so, but I might also be carrying a kind of entrepreneurial blind optimism. I remember previously seeing a tweet saying many people from exchanges were withdrawing funds. I think during wartime, once people start worrying about risks, this demand tends to increase. Later on, it seems there was a new regulation in Dubai that restricted withdrawals, but I can’t recall exactly. However, I believe this type of demand becomes more apparent during times of war.

There’s just one thing. When I crossed the border from the UAE into Oman, I suddenly thought about a decentralized SIM card project in our ecosystem that allows people to connect to the internet no matter where they are. I thought that if one day a serious problem arises, this kind of decentralized internet would actually have a very strong application scenario. My colleague at that time even downloaded a product from our ecosystem called Ubitel, which was quite useful. People can use stablecoins for payments on MegaETH, ensuring internet access everywhere.

Jarseed: From my perspective, currently, it hasn't happened yet. I think people are still more focused on capturing some trading opportunities. Perhaps people are currently more concerned about the rise in oil prices due to the blockade of the Strait of Hormuz and the series of issues stemming from rising oil prices, which might present trading opportunities.

Cat Brother: But doesn’t this also include some people trying to bottom out property prices or gold in Dubai now that there has been a noticeable decline? Are there such people?

Jarseed: I think there are still perceptible differences between the property price index and the actual transaction prices. When buying a property, people tend to choose better quality locations and amenities, right? So I feel that this index reflects a broader direction or a common consensus.

However, if someone really views real estate as an investment, they will definitely choose quality assets because scarce, core assets are far more valuable for investment. Thus, while I haven’t particularly focused on specific property transaction situations in Dubai lately, I think core locations still possess significant advantages.

Even though I believe the issues in the Middle East and this war won’t resolve in the short term, I also don’t think it will turn into a prolonged conflict or escalate into a full-blown war. Therefore, I remain relatively optimistic about Dubai’s future.

Cat Brother: For people around you, especially those still remaining in Dubai, do they maintain an overall optimistic outlook on this war situation?

Jarseed: I believe there will be significant differences in perspectives among the people around me. Because from my own experience, your level of understanding regarding the causes and historical issues related to Iran, Israel, and conflicts between countries like Saudi Arabia and the U.S. will greatly affect your judgment of this conflict and its future trajectory.

If one understands these issues more deeply, they might notice internal disputes among Muslim factions; for instance, Khamenei—who is actually a relatively moderate Shia leader—was directly assassinated, but the U.S. has failed to successfully support a leader who is more "obedient" so far. The ensuing series of conflicts resulting from this are, in my view, currently unpredictable.

However, if people are not very interested in the religious factional divisions or the historical roots behind this conflict, they may interpret it as just an ordinary military conflict or a resource-based conflict. In that case, the viewpoints will differ significantly.

Will the Conflict Shake Dubai's Status as a Crypto Hub?

Cat Brother: Will this round of conflict shake Dubai’s position as a crypto hub? After all, many crypto practitioners fundamentally lean towards financial thinking and inherently dislike risk. Some have indeed begun leaving Dubai for places like Hong Kong, Singapore, or the U.S. Do you think this trend could solidify into a longer-term pattern, potentially altering Dubai's prior position?

Jarseed: I believe there will be some impact, as during this conflict, people have seen the consequences of a country or city facing geopolitical tensions or instability. Certainly, it hasn’t felt that severe so far, but if the conflict continues to escalate and starts to genuinely impact everyone’s life—that’s when things will change.

Especially regarding those in the financial sector or high-net-worth individuals, avoiding risk is always a primary consideration. I also feel that we have now reached a critical turning point. The U.S. and the dollar are facing a significant test this time. Whether this could lead to a historic turning point is hard to judge; we can only take it as it comes.

But returning to my earlier point, since people have seen the consequences of geopolitical instability, I think many will choose to evade risk.

Cat Brother: From your personal perspective, do you plan to live in Hong Kong long-term or will you consider returning to Dubai after things settle down?

Jarseed: For now, I’m just going to wait and see.

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