WEBVTT - All Pegs Were Meant To Be Broken 0:00:00.760 --> 0:00:03.920 Hello, and welcome to another episode of the Markmas Show 0:00:03.920 --> 0:00:07.240 where we talk about this decentralized revolution that the world 0:00:07.320 --> 0:00:10.080 is going through. Of course we are talking about bitcoin 0:00:10.160 --> 0:00:14.200 that is leading this decentralized revolution, cryptocurrencies, and we do 0:00:14.240 --> 0:00:19.440 it through looking through the lens of politics, technology and finance. 0:00:19.480 --> 0:00:23.360 It's where those three converge is where all the change 0:00:23.440 --> 0:00:25.439 on the edges, as we say, and so each and 0:00:25.480 --> 0:00:28.840 every week and bringing to you the latest breaking news 0:00:28.880 --> 0:00:31.280 to keep you informed. I'm bringing you some educations you 0:00:31.280 --> 0:00:33.800 can really understand exactly what's going on. And of course 0:00:33.800 --> 0:00:35.240 I try to bring to you some of the best 0:00:35.240 --> 0:00:37.720 and brightest guests in the space so you don't just 0:00:37.720 --> 0:00:40.240 have to hear me all the time. And right now 0:00:40.320 --> 0:00:43.240 we are going to dig into some big topics because 0:00:43.600 --> 0:00:47.600 there is a lot going on in the macro financial 0:00:47.640 --> 0:00:52.120 space and then specifically inside the cryptocurrency space. Stuff is 0:00:52.240 --> 0:00:55.000 blowing up left and right. It's what we might call 0:00:55.120 --> 0:00:59.000 a crypto currency blood bath. And I know that sounds bad, 0:00:59.600 --> 0:01:03.040 but that's basically what we're looking at. A blood bath. 0:01:03.080 --> 0:01:06.840 Now what do I mean by that? Well, one, it's uh, 0:01:06.880 --> 0:01:10.880 people are dying, not not literally, um well, unfortunately, some 0:01:11.120 --> 0:01:14.240 literally uh. Most and we'll talk about that in a second. 0:01:14.280 --> 0:01:16.040 But it's a sea of red right when you look 0:01:16.080 --> 0:01:17.960 at the charts, it's all red. As a matter of fact, 0:01:18.000 --> 0:01:20.800 the SMP five hundred this week was one day was 0:01:20.959 --> 0:01:23.520 completely right. It means every single position in the SMP 0:01:23.520 --> 0:01:26.319 five hundre it was down. That's bad news. But inside 0:01:26.360 --> 0:01:28.720 the cryptocurrency space it's been bad. I talked about a 0:01:28.760 --> 0:01:32.000 couple of weeks ago talking about this terror Luna us 0:01:32.040 --> 0:01:36.120 stable coin terror Luna backed uh. It's an algorithmically pegged 0:01:36.400 --> 0:01:39.160 to try to stay at a dollar which didn't work. Um, 0:01:39.200 --> 0:01:41.800 and it was backed by their own token called Tera. 0:01:41.880 --> 0:01:44.840 I went deep into that. If you miss that, I'm 0:01:44.840 --> 0:01:47.280 not gonna go through all that again because people didn't 0:01:47.280 --> 0:01:48.720 miss it and they don't want to hear it again. However, 0:01:48.720 --> 0:01:51.320 if you did, don't worry. I got your back. You 0:01:51.320 --> 0:01:54.840 can check it out on the podcast network. Just search 0:01:54.920 --> 0:01:58.240 Mark Moss podcast on the Heart Radio network, iTunes wherever 0:01:58.280 --> 0:02:01.040 you get your podcast you can find just search markets 0:02:01.080 --> 0:02:04.720 podcast now. UM, if you did miss it, don't miss 0:02:04.720 --> 0:02:07.000 it again. If you're not driving, pull your phone out 0:02:07.080 --> 0:02:09.480 right now. Put a calendar reminder to be with me 0:02:09.560 --> 0:02:11.800 on this channel on this time, right now, each and 0:02:11.840 --> 0:02:15.800 every week, so you don't miss it. But as I 0:02:15.840 --> 0:02:18.200 warned a couple of weeks ago, with that Terry Luna 0:02:18.480 --> 0:02:22.760 um crash, I warned there would be more problems. I 0:02:22.800 --> 0:02:25.720 warned that these Wall Street traders would be coming for 0:02:25.960 --> 0:02:29.600 more of these pegs. I said that all pegs are 0:02:29.600 --> 0:02:32.200 meant to be broken. I had. I had a conference. 0:02:32.200 --> 0:02:34.840 I hold my own conferences. Is called Market Disruptors Live. 0:02:35.440 --> 0:02:37.639 Market Disruptors live dot com if you want to check 0:02:37.639 --> 0:02:40.359 it out. We just had one in May in Dallas, Texas. 0:02:41.000 --> 0:02:43.880 And at the event, I was stopped by somebody they're attending, 0:02:45.000 --> 0:02:47.919 and they asked me, what's your take on the Terror 0:02:48.000 --> 0:02:50.320 Luna stable coin, because you could take it, you could 0:02:50.320 --> 0:02:52.400 stake it on this thing called Anchor Protocol and earn 0:02:52.440 --> 0:02:58.120 about nine point six And I told him that all 0:02:58.240 --> 0:03:01.760 pegs are meant to be broken, not necessarily meant to be. 0:03:01.760 --> 0:03:03.240 They didn't, they didn't design them to meant to be. 0:03:03.320 --> 0:03:06.919 But the traders are going to target them and try 0:03:06.919 --> 0:03:09.400 to break them and get really wealthy off of that. 0:03:09.400 --> 0:03:11.639 Well maybe not always wealthy, but increase their stack if 0:03:11.639 --> 0:03:16.400 you will. However, George Soros became famously wealthy by breaking 0:03:16.440 --> 0:03:18.720 the peg, breaking the Bank of England in a single day, 0:03:18.720 --> 0:03:22.560 making a billion dollars. And so that's what they do. 0:03:22.680 --> 0:03:24.880 They play that they're gonna target it, they're gonna try 0:03:24.880 --> 0:03:27.079 to break it. They're gonna try and make money. We've 0:03:27.080 --> 0:03:29.360 seen this, you know, in the eighties through these corporate raiders. 0:03:29.639 --> 0:03:31.960 There's a movie Wall Street made about it. They made 0:03:31.960 --> 0:03:34.320 a remake of that, or an extension of that movie 0:03:34.360 --> 0:03:36.800 called Money Never Sleeps. It's a great movie, kind of 0:03:36.840 --> 0:03:40.240 covers what happened, um in the two Great Financial Crash. 0:03:40.280 --> 0:03:42.360 If you haven't watched it, you should. Um. And we 0:03:42.440 --> 0:03:44.800 thought in game stop and you know now here it 0:03:44.960 --> 0:03:50.120 is targeting. There's Tara Luna and it's a shame. You know, 0:03:50.360 --> 0:03:53.000 I'm gonna explain what's going on. We're gonna look at 0:03:53.160 --> 0:03:55.880 the contagion that's happened. But you know, in regards to this, 0:03:55.920 --> 0:03:58.440 it's a shame. Um. You know, you have these these 0:03:58.480 --> 0:04:01.760 wealthy head fund guys, you know, maybe billionaires, and they're 0:04:01.800 --> 0:04:04.120 hoping to make an extra half a billion dollars when 0:04:04.120 --> 0:04:07.200 they already got billions and uh, you know whatever, good 0:04:07.200 --> 0:04:13.120 for them. However, they're ruining the lives of thousands and 0:04:13.480 --> 0:04:16.080 hundreds of thousands of people. And when I say it's 0:04:16.080 --> 0:04:18.440 actually blood bath, like people died in that terror learned thing, 0:04:18.440 --> 0:04:21.159 I heard over a dozen people had taken their life, 0:04:21.640 --> 0:04:23.400 which is a real shame. I was in. I was 0:04:23.440 --> 0:04:25.880 in Austin, Texas last weekend for one of the biggest 0:04:25.880 --> 0:04:29.320 cryptocurrency conferences in the world called Consensus, and I was 0:04:29.360 --> 0:04:32.560 at one of their official after parties and somebody stopped 0:04:32.600 --> 0:04:34.000 me and they said, hey, you know I'm a I'm 0:04:34.000 --> 0:04:36.839 a big fan, and um, I'm here at this conference. 0:04:36.839 --> 0:04:38.200 I booked this ticket a while ago. I put the 0:04:38.240 --> 0:04:39.920 highest level ticket I could get so I could get 0:04:39.920 --> 0:04:42.279 the networking. And I was really hoping to launch this 0:04:42.320 --> 0:04:46.080 new business inside this cryptocurrency space. And um, you know, 0:04:46.200 --> 0:04:50.480 I'm He was about fifty years old, and uh, if 0:04:50.480 --> 0:04:52.640 you're listening, I'm not going to call you about by name, 0:04:52.680 --> 0:04:55.840 but um, you know I'm talking about you. But anyway, 0:04:55.880 --> 0:04:58.160 he said, you know, I've I've had this marketing business 0:04:58.160 --> 0:04:59.960 for a long time and I did really really good 0:05:00.120 --> 0:05:04.080 for myself and I just sold it and uh, you know, 0:05:04.240 --> 0:05:05.400 have a good amount of money. I think it was 0:05:05.520 --> 0:05:07.040 enough money to retire off of it didn't give me 0:05:07.080 --> 0:05:09.840 the exact amount. He kind of hinted to it, Um, 0:05:09.839 --> 0:05:12.400 it's enough to retire off of. And he put it 0:05:12.440 --> 0:05:15.440 all into stable coin, so real quick. For those that 0:05:15.480 --> 0:05:17.920 are not up to speed, a stable coin basically means 0:05:17.920 --> 0:05:19.520 I give you a dollar, you give me a token 0:05:19.600 --> 0:05:22.760 back that's redeemable for a dollar. And they call it 0:05:22.800 --> 0:05:25.120 stable because it doesn't have the volatility that bitcoin or 0:05:25.160 --> 0:05:29.480 the cryptocurrencies would have. Instead, it's always worth one dollar 0:05:30.240 --> 0:05:31.560 and so let that. So he's like, oh, you know 0:05:31.560 --> 0:05:33.320 stable coins at stable, I don't have to worry about it. 0:05:33.320 --> 0:05:35.000 And he took his eye off the ball, and he 0:05:35.000 --> 0:05:37.160 didn't measure the risk that was involved. And we're gonna 0:05:37.160 --> 0:05:39.240 talk about the risk here in a minute. He didn't 0:05:39.279 --> 0:05:41.800 look at the risk. He took his eye off the ball. Uh, 0:05:42.000 --> 0:05:45.360 he saw that the peg was breaking. But then, um, 0:05:45.400 --> 0:05:47.680 what happened is you know all of these people are like, no, no, no, 0:05:47.720 --> 0:05:50.239 don't sell, don't sell, don't sell. It's gonna come back. 0:05:50.440 --> 0:05:52.960 This happened before you know, it loses the peg, but 0:05:52.960 --> 0:05:54.799 then it comes back. If you lose, now you're gonna 0:05:55.240 --> 0:05:57.080 you're gonna take the losses, right, That's what they said. 0:05:57.160 --> 0:05:59.520 You only you only lose if you sell hold hold, hold, 0:05:59.560 --> 0:06:03.200 hold whole. Within three days, it was gone. He lost everything. 0:06:04.320 --> 0:06:07.560 Decades he worked building up this company, he put it 0:06:07.720 --> 0:06:11.320 all in, he let it all ride, and he lost 0:06:11.360 --> 0:06:13.719 it all. And now here he isn't in, uh, you know, 0:06:13.800 --> 0:06:17.120 fifty years old and basically has to start all over. 0:06:17.279 --> 0:06:19.239 And I really sympathize with that. You've heard my story. 0:06:19.480 --> 0:06:21.640 When I was thirty years old, I had to start 0:06:21.720 --> 0:06:24.040 all over. Now thirty and fifties a little bit different, 0:06:24.040 --> 0:06:26.040 but you know, I sympathized for him. He can, he can, 0:06:26.040 --> 0:06:27.320 he can make it back. I know he can. I 0:06:27.480 --> 0:06:29.640 I did. I know he can as well. He still 0:06:29.640 --> 0:06:32.159 has those skills. However, the point that I had to 0:06:32.240 --> 0:06:34.200 learn the hard way, the point that he just had 0:06:34.240 --> 0:06:35.520 to learn the hard way, in the point I'm hoping 0:06:35.560 --> 0:06:37.920 you don't have to learn the hard ways. Never go 0:06:38.200 --> 0:06:42.000 all in, ever, don't do it. Don't do it. It's 0:06:42.040 --> 0:06:45.160 not worth it. The the the reward of being right 0:06:45.760 --> 0:06:50.360 is not worth the risk of being wrong. And I said, hey, 0:06:50.360 --> 0:06:52.240 once they started taking these out, they're gonna start going 0:06:52.279 --> 0:06:56.360 after all these other pigs. So um, all these leveraged 0:06:56.440 --> 0:06:58.839 positions like the game stop I referenced right, it was 0:06:58.880 --> 0:07:02.120 a short squeeze. All the people had leveraged shorts against 0:07:02.200 --> 0:07:04.400 game Stop, and so they tried to push it back 0:07:04.480 --> 0:07:08.000 up and squeeze that short because they were using leverage. 0:07:08.080 --> 0:07:10.200 Keyword being leverage here, and so you need to be 0:07:10.320 --> 0:07:14.000 very very careful about these leverage positions, including taking your 0:07:14.000 --> 0:07:17.600 Bitcoin or other cryptocurrencies and leveraging against them using debt. 0:07:17.760 --> 0:07:20.080 That's that's what leverage is, using debt. I like to 0:07:20.120 --> 0:07:24.920 say that leverage is sort of like fire. Leverages. Like fire, 0:07:26.560 --> 0:07:29.720 it can warm your house or it can burn your 0:07:29.800 --> 0:07:32.119 house down, and that means it can work both ways. 0:07:32.160 --> 0:07:35.040 If you use it properly, it can be very useful tool. However, 0:07:35.440 --> 0:07:37.960 if you don't use it properly, it can wipe you out. 0:07:37.960 --> 0:07:39.760 It can be disastrous, and so you've gotta be very 0:07:39.800 --> 0:07:43.440 careful with that. Now, if all you're doing is holding 0:07:43.520 --> 0:07:47.840 bitcoin only and you're not putting it on these exchanges 0:07:47.880 --> 0:07:51.960 like Terro Luna or into something like Celsius, which we're 0:07:51.960 --> 0:07:53.560 going to talk about here in a minute. And that's 0:07:53.600 --> 0:07:56.720 the next one blowing up. And now there's two or 0:07:56.800 --> 0:08:00.400 three more dominoes about the fall next because of happening 0:08:00.400 --> 0:08:02.920 in Celsius. We're gonna talk about that. But if you 0:08:02.920 --> 0:08:05.160 just hold your bitcoin, and you just hold it in 0:08:05.240 --> 0:08:08.640 your possession, in your custody, and you don't really have 0:08:08.680 --> 0:08:11.760 a lot to worry about. Yeah, sure it's volatile, but 0:08:11.880 --> 0:08:13.760 over the long period of time, it's always continue to 0:08:13.800 --> 0:08:16.760 go up. The lowest point of bitcoin every single year 0:08:16.800 --> 0:08:20.880 has always been higher. So that's been pretty good. You know, 0:08:20.960 --> 0:08:22.880 when you look at where is it from the top, 0:08:23.160 --> 0:08:24.840 it says a different story. But if you look at 0:08:24.840 --> 0:08:27.480 from the bottom that it's been higher every single year, 0:08:28.160 --> 0:08:30.680 then it looks pretty good. Now, if you have a 0:08:30.800 --> 0:08:33.319 you know, three year time frame at least, then you're 0:08:33.320 --> 0:08:34.960 looking pretty good. If you're looking at bitcoin on a 0:08:34.960 --> 0:08:36.839 monthly basis or weekly basis, it could tell you a 0:08:36.880 --> 0:08:39.360 different story, which is why you should never look at 0:08:39.360 --> 0:08:42.079 any of your investments that in that short time unless 0:08:42.040 --> 0:08:44.720 you're unless you're a day trader, which you shouldn't because 0:08:44.720 --> 0:08:46.520 I don't make a lot of money. Now, I'm gonna 0:08:46.559 --> 0:08:49.280 talk about three more bombs that are sitting in the 0:08:49.280 --> 0:08:51.000 crypto space that you need to be aware of, and 0:08:51.040 --> 0:08:52.680 even if you're not involved in them, it could be 0:08:52.679 --> 0:08:54.480 disastrous for you. So I'll be right back with more. 0:08:55.040 --> 0:08:57.480 All Right, welcome back. You are listening to the markma Show, 0:08:57.520 --> 0:09:00.320 and we're talking about the decentralized revolution and that the 0:09:00.360 --> 0:09:03.400 world is going through. That's why it's so crazy. So 0:09:03.440 --> 0:09:05.560 why the world seems like it's breaking up, because it 0:09:05.640 --> 0:09:07.800 literally is. For the last two or fifty years, the 0:09:07.840 --> 0:09:10.880 world has been working towards centralization and now that's breaking 0:09:10.880 --> 0:09:14.800 apart and we're going to decentralization. Of course it's being led. Um, 0:09:15.200 --> 0:09:18.040 I don't know about being led, but it's it's being 0:09:18.080 --> 0:09:22.480 helped along by decentralized technology, which of course we're talking 0:09:22.520 --> 0:09:26.360 about bitcoin, thinking about this cryptocurrency space, and specifically we're 0:09:26.400 --> 0:09:28.920 talking about these blow ups that are happening in this 0:09:29.000 --> 0:09:32.480 blood bath that's been happening. And so we talked about 0:09:32.520 --> 0:09:34.040 Tera Luna. I'm not gonna go back through that again. 0:09:34.120 --> 0:09:36.880 And now the next domino, as I warned a few 0:09:36.920 --> 0:09:40.439 weeks ago, is starting to collapse, and that is Celsius. 0:09:40.480 --> 0:09:45.080 Now Celsius is they halted withdraws and that's not a 0:09:45.080 --> 0:09:48.240 good sign. Now if you have money with Celsius. This 0:09:48.320 --> 0:09:52.080 is what I know so far. Um, Basically, they halted withdraws. 0:09:52.080 --> 0:09:55.360 The reason why is because again back to the Tera Luna, 0:09:55.440 --> 0:09:58.760 these Wall Street raiders are targeting these these funds that 0:09:58.800 --> 0:10:00.880 have leverage and they're trying to take them out in 0:10:00.960 --> 0:10:03.600 order to enrich themselves a little bit, all right, And 0:10:03.640 --> 0:10:07.719 we knew that Celsius could be liquidated if Bitcoin got 0:10:07.720 --> 0:10:10.120 below I think it was like twenty three and so 0:10:10.280 --> 0:10:12.480 I guess what they're gonna do. They're gonna try to 0:10:12.559 --> 0:10:15.840 push bitcoin down by shorting it below twenty three thousand 0:10:15.880 --> 0:10:20.000 to liquidate Celsius, and the Celsius was trying to prevent 0:10:20.040 --> 0:10:23.280 that from happening, and so what they did supposedly is 0:10:23.320 --> 0:10:25.719 they locked all customer with draws because what happened is 0:10:25.760 --> 0:10:27.640 as soon as customers started hearing about this, they wanted 0:10:27.640 --> 0:10:30.080 to get their money off as fast as possible. But 0:10:30.160 --> 0:10:33.080 the more money that was pulled off of Celsius a 0:10:33.120 --> 0:10:35.520 bank run and that's what it's called um, then the 0:10:35.640 --> 0:10:39.320 less collateral they had to try to bring this hedged 0:10:39.360 --> 0:10:43.840 position down. So they locked customer with draws and then 0:10:43.920 --> 0:10:48.760 they started adding more collateral and they brought their liquidation 0:10:48.800 --> 0:10:51.640 point from twenty three thousand down to eighteen thousand and 0:10:51.880 --> 0:10:54.160 fifteen thousand, and I think it sits somewhere in the 0:10:54.200 --> 0:10:59.760 twelve to thirteen thousand range right now, which is pretty good. Um, 0:11:00.000 --> 0:11:02.800 if you have money locked up on Celsius, h you're 0:11:02.840 --> 0:11:05.960 not alone. There's lots of people that do. And it 0:11:06.120 --> 0:11:09.719 all hope isn't gone. Now. I'm gonna be real with you. 0:11:10.200 --> 0:11:13.559 It doesn't look super good, um, but there's a chance. 0:11:14.160 --> 0:11:17.680 So they brought in some They brought in some restructuring 0:11:17.720 --> 0:11:19.880 specialists who are trying to help them restructure this. You 0:11:19.920 --> 0:11:24.319 don't think bankruptcy. And there's there's talk of a potential takeover, 0:11:24.400 --> 0:11:26.440 maybe a buy out, A big fund would would buy 0:11:26.440 --> 0:11:29.679 them out. Maybe if they can unwind this, they can 0:11:29.720 --> 0:11:32.280 prevent the liquidation event first of all, and then maybe 0:11:32.400 --> 0:11:34.640 something they get some investment to buy out and then 0:11:34.679 --> 0:11:38.080 some restructuring. Maybe there's a chance you get some of 0:11:38.120 --> 0:11:40.560 your money back. I don't know what that percentage will be. 0:11:40.600 --> 0:11:44.400 We'll have to see, but uh, there's a chance. However, 0:11:44.440 --> 0:11:47.840 I wouldn't hold your breath, so maybe just consider it 0:11:47.840 --> 0:11:50.480 a rite off and if you get anything back, maybe 0:11:50.480 --> 0:11:53.240 consider yourself lucky. But that's where the situation is right now. 0:11:53.280 --> 0:11:55.240 But what went wrong? I think that's what we have. 0:11:55.600 --> 0:11:59.120 We want to learn that. Um. The old saying is um, 0:11:59.280 --> 0:12:01.480 fool me once, aim on you, fool me twice, shame 0:12:01.520 --> 0:12:03.360 on me. My father has told me over and over 0:12:03.440 --> 0:12:06.080 once as an accident, twice as stupid, which means, hey, 0:12:06.160 --> 0:12:07.800 we all mit mistakes, but don't let it happen again, 0:12:07.880 --> 0:12:10.160 or you're stupid. And so basically, what the heck happened here? 0:12:10.200 --> 0:12:12.600 What can we learn? So even if you had money 0:12:12.600 --> 0:12:14.400 in or didn't, you still need to learn from this. 0:12:14.520 --> 0:12:16.320 This is a learning experience. They say, I never I 0:12:16.360 --> 0:12:21.040 never lose because I either win or I learned. So 0:12:21.080 --> 0:12:22.679 let's learn from this. Even if you didn't lose, let's 0:12:22.760 --> 0:12:24.600 learn something for this. So what do we see? Celsius 0:12:24.600 --> 0:12:27.680 calls itself a network or a lender, but in reality 0:12:27.720 --> 0:12:31.000 it wasn't. It was like a highly leveraged lead hedge fund. 0:12:31.000 --> 0:12:33.600 Now they said that supposed it was Celsius, And and 0:12:33.600 --> 0:12:36.120 there's block fine, there's Nexto, and there's crypto dot com, 0:12:36.160 --> 0:12:39.480 and there's there's other ones. Supposedly you give them money 0:12:39.760 --> 0:12:41.760 and they give you yield back. I give you my 0:12:41.760 --> 0:12:44.880 bitcoin or my cryptocurrency, you pay me four percent or 0:12:44.920 --> 0:12:48.120 five percent interest on it. Sounds pretty good and then 0:12:48.160 --> 0:12:51.120 they were supposedly giving able to pay me that because 0:12:51.160 --> 0:12:54.400 they would loan that bitcoin or other cryptocurrencies out, and 0:12:54.440 --> 0:12:57.400 they would only loan it to people that were overcollateralized 0:12:57.400 --> 0:13:00.920 a collateralized that way, if they um to pay back, 0:13:00.960 --> 0:13:03.400 then they could liquidate their capital and I would get 0:13:03.520 --> 0:13:06.199 my money back. That's the story that I've been told. 0:13:06.240 --> 0:13:09.160 Now that's apparently not how it was working. And so 0:13:09.240 --> 0:13:11.800 let's see exactly what happened now. First of all, if 0:13:11.800 --> 0:13:13.720 you're giving your money to somebody, first of all, that 0:13:13.760 --> 0:13:17.520 introduces something called counterparty risk. Um. Anytime you give something 0:13:17.559 --> 0:13:20.319 to someone else, there's a chance you don't get it back, period, 0:13:20.640 --> 0:13:23.720 and it's up to you. Please do me a favorite. 0:13:24.360 --> 0:13:28.599 Never give an asset, your money, a stock or or 0:13:28.600 --> 0:13:33.240 bigcoin of cryptocurrency to somebody without knowing if they'll be 0:13:33.240 --> 0:13:35.280 able to pay you back. What that risk is. You 0:13:35.320 --> 0:13:37.720 need to quantify what that risk is of not getting 0:13:37.720 --> 0:13:41.440 that back. That step number one, which is why I'm sorry, 0:13:41.880 --> 0:13:43.839 I'm ready for the hate mail. But that's why defy 0:13:43.880 --> 0:13:46.800 as a scam, Defy standing for decentralized finance, which is 0:13:46.840 --> 0:13:49.839 what this was doing. All right, You should never loan 0:13:49.920 --> 0:13:51.760 your money to somebody you don't know, and I would 0:13:51.760 --> 0:13:54.280 never expect somebody. I wouldn't even want someone I don't 0:13:54.320 --> 0:13:56.520 know to lend me money. Um, if I'm going to 0:13:56.559 --> 0:13:59.200 buy a car or house, I want the bank to 0:13:59.320 --> 0:14:01.640 determine my credit worthiness and give me a different rate 0:14:01.679 --> 0:14:03.360 than you may get based off of how good my 0:14:03.440 --> 0:14:05.120 credit is. And and if I'm gonna loan money to 0:14:05.160 --> 0:14:07.080 someone else, I'm gonna do the same thing. It should 0:14:07.120 --> 0:14:09.920 be done by a centralized entity, not a decentralized entity. 0:14:10.000 --> 0:14:12.520 We have to overcollateralized loan. All that's good for is 0:14:12.600 --> 0:14:15.439 d gen gamblers, which is exactly what this was. That's 0:14:15.480 --> 0:14:18.920 first number thing. But so basically they're trying to um 0:14:19.000 --> 0:14:21.880 somehow get me you know, five, six, seven, eight percent 0:14:22.000 --> 0:14:25.680 interest in a world with no yield, so the bonds 0:14:25.720 --> 0:14:29.440 pay zero pretty much. How are they able to pay six? Well, 0:14:29.840 --> 0:14:32.840 they do that by going way out on the risk curve. 0:14:33.480 --> 0:14:35.960 The more they're able to pay you, the more risk 0:14:36.040 --> 0:14:38.600 they must be taking on. You know, the old saying, 0:14:38.720 --> 0:14:40.200 if it's if, if, if it's too good to be 0:14:40.200 --> 0:14:42.040 true sort of a thing. It's not necessarily the case. 0:14:42.200 --> 0:14:43.520 But if they're able to pay that, how the heck 0:14:43.520 --> 0:14:45.000 are they getting it? Are they going way out on 0:14:45.040 --> 0:14:48.440 that risk curve? So, um, if they're doing that, do 0:14:48.520 --> 0:14:51.160 they have a good risk management plan and have they 0:14:51.200 --> 0:14:54.040 conveyed that to you? When I was in bitcoin Miami, 0:14:54.360 --> 0:14:56.880 I met with one of the top people at Celsius, 0:14:56.880 --> 0:14:59.360 I think it was the number two person, and I 0:14:59.440 --> 0:15:01.320 explained to him and I said, look, I could never 0:15:01.600 --> 0:15:03.720 I could never give you, um, you know, my bitcoin 0:15:03.760 --> 0:15:06.320 and cryptos currency for yield because I don't know what 0:15:06.440 --> 0:15:09.600 the risk tolerance is with you. And I think that 0:15:09.640 --> 0:15:12.240 if you guys were much more transparent about it, and 0:15:12.280 --> 0:15:14.520 you would explain to people what you were doing and 0:15:14.520 --> 0:15:17.800 show some transparency, then I could. Then you would give 0:15:17.800 --> 0:15:20.240 me your risk maent plent, I could quantify that and 0:15:20.280 --> 0:15:22.120 then I can decide intelligently if I want to give 0:15:22.120 --> 0:15:24.520 you money or not, and what my risk profile is, 0:15:24.560 --> 0:15:27.200 so I know how much of my portfolio I would 0:15:27.200 --> 0:15:29.760 want to give to you. Um. So far they didn't 0:15:29.760 --> 0:15:32.360 take me up on that, but that's what I told them. 0:15:32.480 --> 0:15:35.040 And what we can see is that they were making 0:15:35.160 --> 0:15:37.840 very risky bets and so we saw that in last 0:15:37.840 --> 0:15:40.880 December they admitted losses related to a hundred million dollar 0:15:41.000 --> 0:15:44.800 hundred twenty million dollar badger Dow hack. Now you may 0:15:44.840 --> 0:15:47.000 be asking, what the heck is a badger Dow hack, 0:15:47.160 --> 0:15:51.000 and I would say, exactly, I know what it is. 0:15:51.200 --> 0:15:53.440 It's a it's it's a it's a dow that they 0:15:53.560 --> 0:15:55.920 someone tried to create a called the badger dow um. 0:15:55.960 --> 0:15:58.920 A dow is a decentralized autonomous organization which is a 0:15:58.920 --> 0:16:01.520 bunch of mambo jumbo um and it's badged out. It 0:16:01.560 --> 0:16:04.080 was it was, it was brand new, it was super tiny, 0:16:04.160 --> 0:16:08.160 super risky. What the heck were they doing investing into 0:16:08.200 --> 0:16:11.320 those types of projects with other people's with users funds, 0:16:11.760 --> 0:16:15.040 especially without disclosing that type of risk. Now, the converse 0:16:15.040 --> 0:16:17.960 would also be true if you've loaned money to Celsius, 0:16:18.480 --> 0:16:20.760 wouldn't you want to be paying attention to what the 0:16:20.760 --> 0:16:23.920 heck they're doing with the money. You should be, And 0:16:23.960 --> 0:16:25.440 so you should have seen that and go and shoot, 0:16:25.480 --> 0:16:27.720 they're doing some really risky things. I wonder if I 0:16:27.720 --> 0:16:29.880 can trust that. And then last month with this Tara 0:16:30.120 --> 0:16:35.080 Tara fiasco, um Celsius pulled off at least half a 0:16:35.200 --> 0:16:39.440 billion dollars out of this Terra Luna the Inchor protocol 0:16:40.040 --> 0:16:43.640 right before it crashed. So was that good risk management 0:16:43.680 --> 0:16:46.680 or were they just lucky? Either way, what that tells 0:16:46.680 --> 0:16:49.360 me and you is that, shoot, they're taking a lot 0:16:49.400 --> 0:16:51.840 of risk and we barely got out with our skin 0:16:52.040 --> 0:16:54.680 on our skin, of our teeth, and so we should 0:16:54.680 --> 0:16:55.920 have seen that. All right, So this is what's going 0:16:55.960 --> 0:16:57.960 on now. I want to finish explaining what's going on 0:16:58.000 --> 0:17:00.200 with Celsius so we can learn from this, and then 0:17:00.200 --> 0:17:02.840 I'm gonna tell you about the other two or three 0:17:02.960 --> 0:17:05.040 big bombs that are about to crash, and whether you 0:17:05.160 --> 0:17:08.239 have money in these or not, it's affecting you. This 0:17:08.320 --> 0:17:12.120 is why cryptocurrencies are crashing, and I want to warn 0:17:12.160 --> 0:17:14.080 you before it's too late, like I tried to warn 0:17:14.119 --> 0:17:16.720 you before these things went down, and like I said, 0:17:16.760 --> 0:17:18.360 it's a good learning moment. I'll be back with that 0:17:18.680 --> 0:17:20.000 and more in a minute. By the way, you're listening 0:17:20.040 --> 0:17:22.880 to the Mark Moa show. We're talking about the decentralized Revolution, 0:17:22.880 --> 0:17:26.480 talking about bitcoin, cryptocurrencies, looking at through the lens of politics, finance, 0:17:26.520 --> 0:17:30.440 and technology, and right now we're having a teaching moment, 0:17:30.480 --> 0:17:32.840 a learning moment. Hopefully you can learn from this, and 0:17:32.840 --> 0:17:34.439 I'm gonna warn you on what's coming up next. So 0:17:34.520 --> 0:17:37.760 don't go away. I'm gonna be right back, all right, 0:17:37.760 --> 0:17:39.800 Welcome back here, listening to the Mark Moa Show. And 0:17:39.840 --> 0:17:43.400 we're talking about the decentralized revolution each and every week, 0:17:44.160 --> 0:17:47.439 talking about bitcoin, talking about cryptocurrencies and looking at it 0:17:47.440 --> 0:17:49.840 through the lens, the macro lens of what's going on 0:17:49.840 --> 0:17:52.239 in the world. Now, we've been talking about what's going 0:17:52.320 --> 0:17:55.000 on in the crypto space right now that's dragging Bitcoin, 0:17:55.040 --> 0:17:59.240 ethereum and all the other cryptocurrencies down. And it's like 0:17:59.280 --> 0:18:00.960 a domino ef act right now. I talked to you 0:18:00.960 --> 0:18:02.600 a couple of weeks ago about this terroa Luna thing, 0:18:02.680 --> 0:18:05.359 and I warned you that that the next Almano would drop, 0:18:05.359 --> 0:18:07.280 and here we are at it right now, and there's 0:18:07.320 --> 0:18:09.560 more coming. So I was just before they break talking 0:18:09.600 --> 0:18:13.399 about Celsias specifically, they locked withdrawals this week. There's a 0:18:13.520 --> 0:18:15.280 chance you might get some of your money out, but 0:18:15.320 --> 0:18:17.240 I wouldn't I wouldn't count on. I wouldn't be holding 0:18:17.280 --> 0:18:20.600 your breath. But we'll see. Let's let's let's remain hopeful 0:18:20.640 --> 0:18:21.960 if you've got money in there. But we're trying to 0:18:22.080 --> 0:18:23.840 learn from this, and what we can see is that 0:18:23.880 --> 0:18:26.280 Celsius was doing some very very risky things. And if 0:18:26.280 --> 0:18:27.919 you had money there, you should have known about that. 0:18:28.000 --> 0:18:29.880 And if you didn't know about that, you weren't paying attention. 0:18:30.280 --> 0:18:33.480 And so hey, look, don't get down on yourself. Don't 0:18:33.640 --> 0:18:36.080 let it happen again, all right, So let's keep going 0:18:36.080 --> 0:18:39.920 down this road. UM and so UM. Basically we saw 0:18:39.920 --> 0:18:41.800 they were doing these risky things. They barely got out 0:18:41.800 --> 0:18:43.600 of the Terra Luna by the skin of their teeth. 0:18:43.840 --> 0:18:46.520 But now they've also been in Um putting their money 0:18:46.520 --> 0:18:49.560 into something to their money, they've been putting their customer 0:18:49.640 --> 0:18:53.080 funds into something called staked Eath or it's known as 0:18:53.359 --> 0:18:58.240 STAT and it's another synthetic coin that's supposed to be 0:18:58.320 --> 0:19:02.200 pegged the original e Um, which means, you know, more 0:19:02.320 --> 0:19:06.720 risk um. And it's also very ill liquid, which means 0:19:06.800 --> 0:19:09.000 their money is locked up and they can't get their 0:19:09.000 --> 0:19:12.040