Speaker 1: Hello, and welcome to another episode of the Markmas Show
Speaker 1: where we talk about this decentralized revolution that the world
Speaker 1: is going through. Of course we are talking about bitcoin
Speaker 1: that is leading this decentralized revolution, cryptocurrencies, and we do
Speaker 1: it through looking through the lens of politics, technology and finance.
Speaker 1: It's where those three converge is where all the change
Speaker 1: on the edges, as we say, and so each and
Speaker 1: every week and bringing to you the latest breaking news
Speaker 1: to keep you informed. I'm bringing you some educations you
Speaker 1: can really understand exactly what's going on. And of course
Speaker 1: I try to bring to you some of the best
Speaker 1: and brightest guests in the space so you don't just
Speaker 1: have to hear me all the time. And right now
Speaker 1: we are going to dig into some big topics because
Speaker 1: there is a lot going on in the macro financial
Speaker 1: space and then specifically inside the cryptocurrency space. Stuff is
Speaker 1: blowing up left and right. It's what we might call
Speaker 1: a crypto currency blood bath. And I know that sounds bad,
Speaker 1: but that's basically what we're looking at. A blood bath.
Speaker 1: Now what do I mean by that? Well, one, it's uh,
Speaker 1: people are dying, not not literally, um well, unfortunately, some
Speaker 1: literally uh. Most and we'll talk about that in a second.
Speaker 1: But it's a sea of red right when you look
Speaker 1: at the charts, it's all red. As a matter of fact,
Speaker 1: the SMP five hundred this week was one day was
Speaker 1: completely right. It means every single position in the SMP
Speaker 1: five hundre it was down. That's bad news. But inside
Speaker 1: the cryptocurrency space it's been bad. I talked about a
Speaker 1: couple of weeks ago talking about this terror Luna us
Speaker 1: stable coin terror Luna backed uh. It's an algorithmically pegged
Speaker 1: to try to stay at a dollar which didn't work. Um,
Speaker 1: and it was backed by their own token called Tera.
Speaker 1: I went deep into that. If you miss that, I'm
Speaker 1: not gonna go through all that again because people didn't
Speaker 1: miss it and they don't want to hear it again. However,
Speaker 1: if you did, don't worry. I got your back. You
Speaker 1: can check it out on the podcast network. Just search
Speaker 1: Mark Moss podcast on the Heart Radio network, iTunes wherever
Speaker 1: you get your podcast you can find just search markets
Speaker 1: podcast now. UM, if you did miss it, don't miss
Speaker 1: it again. If you're not driving, pull your phone out
Speaker 1: right now. Put a calendar reminder to be with me
Speaker 1: on this channel on this time, right now, each and
Speaker 1: every week, so you don't miss it. But as I
Speaker 1: warned a couple of weeks ago, with that Terry Luna
Speaker 1: um crash, I warned there would be more problems. I
Speaker 1: warned that these Wall Street traders would be coming for
Speaker 1: more of these pegs. I said that all pegs are
Speaker 1: meant to be broken. I had. I had a conference.
Speaker 1: I hold my own conferences. Is called Market Disruptors Live.
Speaker 1: Market Disruptors live dot com if you want to check
Speaker 1: it out. We just had one in May in Dallas, Texas.
Speaker 1: And at the event, I was stopped by somebody they're attending,
Speaker 1: and they asked me, what's your take on the Terror
Speaker 1: Luna stable coin, because you could take it, you could
Speaker 1: stake it on this thing called Anchor Protocol and earn
Speaker 1: about nine point six And I told him that all
Speaker 1: pegs are meant to be broken, not necessarily meant to be.
Speaker 1: They didn't, they didn't design them to meant to be.
Speaker 1: But the traders are going to target them and try
Speaker 1: to break them and get really wealthy off of that.
Speaker 1: Well maybe not always wealthy, but increase their stack if
Speaker 1: you will. However, George Soros became famously wealthy by breaking
Speaker 1: the peg, breaking the Bank of England in a single day,
Speaker 1: making a billion dollars. And so that's what they do.
Speaker 1: They play that they're gonna target it, they're gonna try
Speaker 1: to break it. They're gonna try and make money. We've
Speaker 1: seen this, you know, in the eighties through these corporate raiders.
Speaker 1: There's a movie Wall Street made about it. They made
Speaker 1: a remake of that, or an extension of that movie
Speaker 1: called Money Never Sleeps. It's a great movie, kind of
Speaker 1: covers what happened, um in the two Great Financial Crash.
Speaker 1: If you haven't watched it, you should. Um. And we
Speaker 1: thought in game stop and you know now here it
Speaker 1: is targeting. There's Tara Luna and it's a shame. You know,
Speaker 1: I'm gonna explain what's going on. We're gonna look at
Speaker 1: the contagion that's happened. But you know, in regards to this,
Speaker 1: it's a shame. Um. You know, you have these these
Speaker 1: wealthy head fund guys, you know, maybe billionaires, and they're
Speaker 1: hoping to make an extra half a billion dollars when
Speaker 1: they already got billions and uh, you know whatever, good
Speaker 1: for them. However, they're ruining the lives of thousands and
Speaker 1: hundreds of thousands of people. And when I say it's
Speaker 1: actually blood bath, like people died in that terror learned thing,
Speaker 1: I heard over a dozen people had taken their life,
Speaker 1: which is a real shame. I was in. I was
Speaker 1: in Austin, Texas last weekend for one of the biggest
Speaker 1: cryptocurrency conferences in the world called Consensus, and I was
Speaker 1: at one of their official after parties and somebody stopped
Speaker 1: me and they said, hey, you know I'm a I'm
Speaker 1: a big fan, and um, I'm here at this conference.
Speaker 1: I booked this ticket a while ago. I put the
Speaker 1: highest level ticket I could get so I could get
Speaker 1: the networking. And I was really hoping to launch this
Speaker 1: new business inside this cryptocurrency space. And um, you know,
Speaker 1: I'm He was about fifty years old, and uh, if
Speaker 1: you're listening, I'm not going to call you about by name,
Speaker 1: but um, you know I'm talking about you. But anyway,
Speaker 1: he said, you know, I've I've had this marketing business
Speaker 1: for a long time and I did really really good
Speaker 1: for myself and I just sold it and uh, you know,
Speaker 1: have a good amount of money. I think it was
Speaker 1: enough money to retire off of it didn't give me
Speaker 1: the exact amount. He kind of hinted to it, Um,
Speaker 1: it's enough to retire off of. And he put it
Speaker 1: all into stable coin, so real quick. For those that
Speaker 1: are not up to speed, a stable coin basically means
Speaker 1: I give you a dollar, you give me a token
Speaker 1: back that's redeemable for a dollar. And they call it
Speaker 1: stable because it doesn't have the volatility that bitcoin or
Speaker 1: the cryptocurrencies would have. Instead, it's always worth one dollar
Speaker 1: and so let that. So he's like, oh, you know
Speaker 1: stable coins at stable, I don't have to worry about it.
Speaker 1: And he took his eye off the ball, and he
Speaker 1: didn't measure the risk that was involved. And we're gonna
Speaker 1: talk about the risk here in a minute. He didn't
Speaker 1: look at the risk. He took his eye off the ball. Uh,
Speaker 1: he saw that the peg was breaking. But then, um,
Speaker 1: what happened is you know all of these people are like, no, no, no,
Speaker 1: don't sell, don't sell, don't sell. It's gonna come back.
Speaker 1: This happened before you know, it loses the peg, but
Speaker 1: then it comes back. If you lose, now you're gonna
Speaker 1: you're gonna take the losses, right, That's what they said.
Speaker 1: You only you only lose if you sell hold hold, hold,
Speaker 1: hold whole. Within three days, it was gone. He lost everything.
Speaker 1: Decades he worked building up this company, he put it
Speaker 1: all in, he let it all ride, and he lost
Speaker 1: it all. And now here he isn't in, uh, you know,
Speaker 1: fifty years old and basically has to start all over.
Speaker 1: And I really sympathize with that. You've heard my story.
Speaker 1: When I was thirty years old, I had to start
Speaker 1: all over. Now thirty and fifties a little bit different,
Speaker 1: but you know, I sympathized for him. He can, he can,
Speaker 1: he can make it back. I know he can. I
Speaker 1: I did. I know he can as well. He still
Speaker 1: has those skills. However, the point that I had to
Speaker 1: learn the hard way, the point that he just had
Speaker 1: to learn the hard way, in the point I'm hoping
Speaker 1: you don't have to learn the hard ways. Never go
Speaker 1: all in, ever, don't do it. Don't do it. It's
Speaker 1: not worth it. The the the reward of being right
Speaker 1: is not worth the risk of being wrong. And I said, hey,
Speaker 1: once they started taking these out, they're gonna start going
Speaker 1: after all these other pigs. So um, all these leveraged
Speaker 1: positions like the game stop I referenced right, it was
Speaker 1: a short squeeze. All the people had leveraged shorts against
Speaker 1: game Stop, and so they tried to push it back
Speaker 1: up and squeeze that short because they were using leverage.
Speaker 1: Keyword being leverage here, and so you need to be
Speaker 1: very very careful about these leverage positions, including taking your
Speaker 1: Bitcoin or other cryptocurrencies and leveraging against them using debt.
Speaker 1: That's that's what leverage is, using debt. I like to
Speaker 1: say that leverage is sort of like fire. Leverages. Like fire,
Speaker 1: it can warm your house or it can burn your
Speaker 1: house down, and that means it can work both ways.
Speaker 1: If you use it properly, it can be very useful tool. However,
Speaker 1: if you don't use it properly, it can wipe you out.
Speaker 1: It can be disastrous, and so you've gotta be very
Speaker 1: careful with that. Now, if all you're doing is holding
Speaker 1: bitcoin only and you're not putting it on these exchanges
Speaker 1: like Terro Luna or into something like Celsius, which we're
Speaker 1: going to talk about here in a minute. And that's
Speaker 1: the next one blowing up. And now there's two or
Speaker 1: three more dominoes about the fall next because of happening
Speaker 1: in Celsius. We're gonna talk about that. But if you
Speaker 1: just hold your bitcoin, and you just hold it in
Speaker 1: your possession, in your custody, and you don't really have
Speaker 1: a lot to worry about. Yeah, sure it's volatile, but
Speaker 1: over the long period of time, it's always continue to
Speaker 1: go up. The lowest point of bitcoin every single year
Speaker 1: has always been higher. So that's been pretty good. You know,
Speaker 1: when you look at where is it from the top,
Speaker 1: it says a different story. But if you look at
Speaker 1: from the bottom that it's been higher every single year,
Speaker 1: then it looks pretty good. Now, if you have a
Speaker 1: you know, three year time frame at least, then you're
Speaker 1: looking pretty good. If you're looking at bitcoin on a
Speaker 1: monthly basis or weekly basis, it could tell you a
Speaker 1: different story, which is why you should never look at
Speaker 1: any of your investments that in that short time unless
Speaker 1: you're unless you're a day trader, which you shouldn't because
Speaker 1: I don't make a lot of money. Now, I'm gonna
Speaker 1: talk about three more bombs that are sitting in the
Speaker 1: crypto space that you need to be aware of, and
Speaker 1: even if you're not involved in them, it could be
Speaker 1: disastrous for you. So I'll be right back with more.
Speaker 1: All Right, welcome back. You are listening to the markma Show,
Speaker 1: and we're talking about the decentralized revolution and that the
Speaker 1: world is going through. That's why it's so crazy. So
Speaker 1: why the world seems like it's breaking up, because it
Speaker 1: literally is. For the last two or fifty years, the
Speaker 1: world has been working towards centralization and now that's breaking
Speaker 1: apart and we're going to decentralization. Of course it's being led. Um,
Speaker 1: I don't know about being led, but it's it's being
Speaker 1: helped along by decentralized technology, which of course we're talking
Speaker 1: about bitcoin, thinking about this cryptocurrency space, and specifically we're
Speaker 1: talking about these blow ups that are happening in this
Speaker 1: blood bath that's been happening. And so we talked about
Speaker 1: Tera Luna. I'm not gonna go back through that again.
Speaker 1: And now the next domino, as I warned a few
Speaker 1: weeks ago, is starting to collapse, and that is Celsius.
Speaker 1: Now Celsius is they halted withdraws and that's not a
Speaker 1: good sign. Now if you have money with Celsius. This
Speaker 1: is what I know so far. Um, Basically, they halted withdraws.
Speaker 1: The reason why is because again back to the Tera Luna,
Speaker 1: these Wall Street raiders are targeting these these funds that
Speaker 1: have leverage and they're trying to take them out in
Speaker 1: order to enrich themselves a little bit, all right, And
Speaker 1: we knew that Celsius could be liquidated if Bitcoin got
Speaker 1: below I think it was like twenty three and so
Speaker 1: I guess what they're gonna do. They're gonna try to
Speaker 1: push bitcoin down by shorting it below twenty three thousand
Speaker 1: to liquidate Celsius, and the Celsius was trying to prevent
Speaker 1: that from happening, and so what they did supposedly is
Speaker 1: they locked all customer with draws because what happened is
Speaker 1: as soon as customers started hearing about this, they wanted
Speaker 1: to get their money off as fast as possible. But
Speaker 1: the more money that was pulled off of Celsius a
Speaker 1: bank run and that's what it's called um, then the
Speaker 1: less collateral they had to try to bring this hedged
Speaker 1: position down. So they locked customer with draws and then
Speaker 1: they started adding more collateral and they brought their liquidation
Speaker 1: point from twenty three thousand down to eighteen thousand and
Speaker 1: fifteen thousand, and I think it sits somewhere in the
Speaker 1: twelve to thirteen thousand range right now, which is pretty good. Um,
Speaker 1: if you have money locked up on Celsius, h you're
Speaker 1: not alone. There's lots of people that do. And it
Speaker 1: all hope isn't gone. Now. I'm gonna be real with you.
Speaker 1: It doesn't look super good, um, but there's a chance.
Speaker 1: So they brought in some They brought in some restructuring
Speaker 1: specialists who are trying to help them restructure this. You
Speaker 1: don't think bankruptcy. And there's there's talk of a potential takeover,
Speaker 1: maybe a buy out, A big fund would would buy
Speaker 1: them out. Maybe if they can unwind this, they can
Speaker 1: prevent the liquidation event first of all, and then maybe
Speaker 1: something they get some investment to buy out and then
Speaker 1: some restructuring. Maybe there's a chance you get some of
Speaker 1: your money back. I don't know what that percentage will be.
Speaker 1: We'll have to see, but uh, there's a chance. However,
Speaker 1: I wouldn't hold your breath, so maybe just consider it
Speaker 1: a rite off and if you get anything back, maybe
Speaker 1: consider yourself lucky. But that's where the situation is right now.
Speaker 1: But what went wrong? I think that's what we have.
Speaker 1: We want to learn that. Um. The old saying is um,
Speaker 1: fool me once, aim on you, fool me twice, shame
Speaker 1: on me. My father has told me over and over
Speaker 1: once as an accident, twice as stupid, which means, hey,
Speaker 1: we all mit mistakes, but don't let it happen again,
Speaker 1: or you're stupid. And so basically, what the heck happened here?
Speaker 1: What can we learn? So even if you had money
Speaker 1: in or didn't, you still need to learn from this.
Speaker 1: This is a learning experience. They say, I never I
Speaker 1: never lose because I either win or I learned. So
Speaker 1: let's learn from this. Even if you didn't lose, let's
Speaker 1: learn something for this. So what do we see? Celsius
Speaker 1: calls itself a network or a lender, but in reality
Speaker 1: it wasn't. It was like a highly leveraged lead hedge fund.
Speaker 1: Now they said that supposed it was Celsius, And and
Speaker 1: there's block fine, there's Nexto, and there's crypto dot com,
Speaker 1: and there's there's other ones. Supposedly you give them money
Speaker 1: and they give you yield back. I give you my
Speaker 1: bitcoin or my cryptocurrency, you pay me four percent or
Speaker 1: five percent interest on it. Sounds pretty good and then
Speaker 1: they were supposedly giving able to pay me that because
Speaker 1: they would loan that bitcoin or other cryptocurrencies out, and
Speaker 1: they would only loan it to people that were overcollateralized
Speaker 1: a collateralized that way, if they um to pay back,
Speaker 1: then they could liquidate their capital and I would get
Speaker 1: my money back. That's the story that I've been told.
Speaker 1: Now that's apparently not how it was working. And so
Speaker 1: let's see exactly what happened now. First of all, if
Speaker 1: you're giving your money to somebody, first of all, that
Speaker 1: introduces something called counterparty risk. Um. Anytime you give something
Speaker 1: to someone else, there's a chance you don't get it back, period,
Speaker 1: and it's up to you. Please do me a favorite.
Speaker 1: Never give an asset, your money, a stock or or
Speaker 1: bigcoin of cryptocurrency to somebody without knowing if they'll be
Speaker 1: able to pay you back. What that risk is. You
Speaker 1: need to quantify what that risk is of not getting
Speaker 1: that back. That step number one, which is why I'm sorry,
Speaker 1: I'm ready for the hate mail. But that's why defy
Speaker 1: as a scam, Defy standing for decentralized finance, which is
Speaker 1: what this was doing. All right, You should never loan
Speaker 1: your money to somebody you don't know, and I would
Speaker 1: never expect somebody. I wouldn't even want someone I don't
Speaker 1: know to lend me money. Um, if I'm going to
Speaker 1: buy a car or house, I want the bank to
Speaker 1: determine my credit worthiness and give me a different rate
Speaker 1: than you may get based off of how good my
Speaker 1: credit is. And and if I'm gonna loan money to
Speaker 1: someone else, I'm gonna do the same thing. It should
Speaker 1: be done by a centralized entity, not a decentralized entity.
Speaker 1: We have to overcollateralized loan. All that's good for is
Speaker 1: d gen gamblers, which is exactly what this was. That's
Speaker 1: first number thing. But so basically they're trying to um
Speaker 1: somehow get me you know, five, six, seven, eight percent
Speaker 1: interest in a world with no yield, so the bonds
Speaker 1: pay zero pretty much. How are they able to pay six? Well,
Speaker 1: they do that by going way out on the risk curve.
Speaker 1: The more they're able to pay you, the more risk
Speaker 1: they must be taking on. You know, the old saying,
Speaker 1: if it's if, if, if it's too good to be
Speaker 1: true sort of a thing. It's not necessarily the case.
Speaker 1: But if they're able to pay that, how the heck
Speaker 1: are they getting it? Are they going way out on
Speaker 1: that risk curve? So, um, if they're doing that, do
Speaker 1: they have a good risk management plan and have they
Speaker 1: conveyed that to you? When I was in bitcoin Miami,
Speaker 1: I met with one of the top people at Celsius,
Speaker 1: I think it was the number two person, and I
Speaker 1: explained to him and I said, look, I could never
Speaker 1: I could never give you, um, you know, my bitcoin
Speaker 1: and cryptos currency for yield because I don't know what
Speaker 1: the risk tolerance is with you. And I think that
Speaker 1: if you guys were much more transparent about it, and
Speaker 1: you would explain to people what you were doing and
Speaker 1: show some transparency, then I could. Then you would give
Speaker 1: me your risk maent plent, I could quantify that and
Speaker 1: then I can decide intelligently if I want to give
Speaker 1: you money or not, and what my risk profile is,
Speaker 1: so I know how much of my portfolio I would
Speaker 1: want to give to you. Um. So far they didn't
Speaker 1: take me up on that, but that's what I told them.
Speaker 1: And what we can see is that they were making
Speaker 1: very risky bets and so we saw that in last
Speaker 1: December they admitted losses related to a hundred million dollar
Speaker 1: hundred twenty million dollar badger Dow hack. Now you may
Speaker 1: be asking, what the heck is a badger Dow hack,
Speaker 1: and I would say, exactly, I know what it is.
Speaker 1: It's a it's it's a it's a dow that they
Speaker 1: someone tried to create a called the badger dow um.
Speaker 1: A dow is a decentralized autonomous organization which is a
Speaker 1: bunch of mambo jumbo um and it's badged out. It
Speaker 1: was it was, it was brand new, it was super tiny,
Speaker 1: super risky. What the heck were they doing investing into
Speaker 1: those types of projects with other people's with users funds,
Speaker 1: especially without disclosing that type of risk. Now, the converse
Speaker 1: would also be true if you've loaned money to Celsius,
Speaker 1: wouldn't you want to be paying attention to what the
Speaker 1: heck they're doing with the money. You should be, And
Speaker 1: so you should have seen that and go and shoot,
Speaker 1: they're doing some really risky things. I wonder if I
Speaker 1: can trust that. And then last month with this Tara
Speaker 1: Tara fiasco, um Celsius pulled off at least half a
Speaker 1: billion dollars out of this Terra Luna the Inchor protocol
Speaker 1: right before it crashed. So was that good risk management
Speaker 1: or were they just lucky? Either way, what that tells
Speaker 1: me and you is that, shoot, they're taking a lot
Speaker 1: of risk and we barely got out with our skin
Speaker 1: on our skin, of our teeth, and so we should
Speaker 1: have seen that. All right, So this is what's going
Speaker 1: on now. I want to finish explaining what's going on
Speaker 1: with Celsius so we can learn from this, and then
Speaker 1: I'm gonna tell you about the other two or three
Speaker 1: big bombs that are about to crash, and whether you
Speaker 1: have money in these or not, it's affecting you. This
Speaker 1: is why cryptocurrencies are crashing, and I want to warn
Speaker 1: you before it's too late, like I tried to warn
Speaker 1: you before these things went down, and like I said,
Speaker 1: it's a good learning moment. I'll be back with that
Speaker 1: and more in a minute. By the way, you're listening
Speaker 1: to the Mark Moa show. We're talking about the decentralized Revolution,
Speaker 1: talking about bitcoin, cryptocurrencies, looking at through the lens of politics, finance,
Speaker 1: and technology, and right now we're having a teaching moment,
Speaker 1: a learning moment. Hopefully you can learn from this, and
Speaker 1: I'm gonna warn you on what's coming up next. So
Speaker 1: don't go away. I'm gonna be right back, all right,
Speaker 1: Welcome back here, listening to the Mark Moa Show. And
Speaker 1: we're talking about the decentralized revolution each and every week,
Speaker 1: talking about bitcoin, talking about cryptocurrencies and looking at it
Speaker 1: through the lens, the macro lens of what's going on
Speaker 1: in the world. Now, we've been talking about what's going
Speaker 1: on in the crypto space right now that's dragging Bitcoin,
Speaker 1: ethereum and all the other cryptocurrencies down. And it's like
Speaker 1: a domino ef act right now. I talked to you
Speaker 1: a couple of weeks ago about this terroa Luna thing,
Speaker 1: and I warned you that that the next Almano would drop,
Speaker 1: and here we are at it right now, and there's
Speaker 1: more coming. So I was just before they break talking
Speaker 1: about Celsias specifically, they locked withdrawals this week. There's a
Speaker 1: chance you might get some of your money out, but
Speaker 1: I wouldn't I wouldn't count on. I wouldn't be holding
Speaker 1: your breath. But we'll see. Let's let's let's remain hopeful
Speaker 1: if you've got money in there. But we're trying to
Speaker 1: learn from this, and what we can see is that
Speaker 1: Celsius was doing some very very risky things. And if
Speaker 1: you had money there, you should have known about that.
Speaker 1: And if you didn't know about that, you weren't paying attention.
Speaker 1: And so hey, look, don't get down on yourself. Don't
Speaker 1: let it happen again, all right, So let's keep going
Speaker 1: down this road. UM and so UM. Basically we saw
Speaker 1: they were doing these risky things. They barely got out
Speaker 1: of the Terra Luna by the skin of their teeth.
Speaker 1: But now they've also been in Um putting their money
Speaker 1: into something to their money, they've been putting their customer
Speaker 1: funds into something called staked Eath or it's known as
Speaker 1: STAT and it's another synthetic coin that's supposed to be
Speaker 1: pegged the original e Um, which means, you know, more
Speaker 1: risk um. And it's also very ill liquid, which means
Speaker 1: their money is locked up and they can't get their
Speaker 1: money out of it. Now. Apparently Celsius holds another half
Speaker 1: billion dollars worth of this, And it's especially concerning because
Speaker 1: Ethereum is supposed to have this merge going on, and
Speaker 1: it just keeps getting delayed and delayed and delayed, and
Speaker 1: so depend on what happened with that. We could see
Speaker 1: this continuing this peg continue to break, potentially becoming unpegged
Speaker 1: like we saw with with Tera Luna, which means Celsius
Speaker 1: could lose another half a billion dollars. Celsius also had
Speaker 1: their own token called to Sell Token, which also crashed.
Speaker 1: We saw it go from uh you know, basically just
Speaker 1: become worthless overnight. And so once these things start going,
Speaker 1: they start going really fast. Everything works until it doesn't.
Speaker 1: That's what I always say, It works until it doesn't.
Speaker 1: And that's basically what we're looking at all. Right, So
Speaker 1: what comes next? So Celsius had massive exposure to um Luna.
Speaker 1: Who else had a massive exposure to Luna and who
Speaker 1: has exposure to Celsius. Like I said right off the bat,
Speaker 1: Celsius is causing the whole market to draw down because
Speaker 1: they're liquidating as much as they can, trying to um
Speaker 1: post more collateral. And this is what happens in the
Speaker 1: liquidation event, not different than the stock market. When the
Speaker 1: stock market crashes, it continues to crash even faster because
Speaker 1: people are trying to cover their margins and then leverage
Speaker 1: on their stocks. That is why stocks fall really fast. Um.
Speaker 1: And then you'll also see, you know, when the stock
Speaker 1: market crashes like say two eight the stock market crash,
Speaker 1: the SMP dropped about and gold drop, Now why would
Speaker 1: gold drop? Shouldn't gold be going up during that time?
Speaker 1: And the reason why it's because of a liquidity event.
Speaker 1: When they start crashing. Everybody's selling anything they can to
Speaker 1: get money to cover that leverage position, which is exactly, um,
Speaker 1: what happened back in the stock market. That's exactly what's
Speaker 1: happened now. So it brings the whole thing down. So
Speaker 1: whether you you only hold bitcoin and it's in your
Speaker 1: cold storage, or whether you're playing with all these things,
Speaker 1: we're all being affected by this, which I'm not super
Speaker 1: happy on. Now, somebody might just say, well, shoot, shouldn't
Speaker 1: we pass some laws that prohibit this from happening? Um,
Speaker 1: shouldn't we pass a law that says, uh, you know,
Speaker 1: these Wall Street raiders aren't allowed to short the heck
Speaker 1: out of these things. Shouldn't we pass a law that
Speaker 1: prevents you know whatever? And And my answer is no.
Speaker 1: My answer is no. Now I'm affected just like a
Speaker 1: lot of other people, but I would still say no.
Speaker 1: And the reason why is I believe in free markets.
Speaker 1: And if somebody wants to post a risky trade, then
Speaker 1: somebody has to take the other side of it. That's
Speaker 1: how trade works. The trade doesn't happen unless there's two
Speaker 1: willing people involved. Otherwise it's a trade. And so in
Speaker 1: a in a free market, both people believe they're getting
Speaker 1: the better end of the deal. Otherwise there would be
Speaker 1: no deal. And so somebody is willing to take that
Speaker 1: risk for the potential reward, and this person is willing
Speaker 1: to pay a potential reward for that person taking the risk.
Speaker 1: Now other people get involved and they start betting on
Speaker 1: those two players, and then they're taking risk, and everybody's
Speaker 1: taking risk. And in a free market, that's just what happens.
Speaker 1: Um it's up to it's up to everybody to be
Speaker 1: educated on their own. The bigger problem, though, is we're
Speaker 1: in an environment that allows us to happen in the
Speaker 1: first place, not because it's allowed legally or from a
Speaker 1: regulatory standpoint, because of the fake Fiat monetary system that
Speaker 1: just pumped eight trillion dollars into the ecosystem over the
Speaker 1: last twenty four months and basically and something called that
Speaker 1: cantel On effect. Go ahead and google that if you want,
Speaker 1: and it says that the people that are closest to
Speaker 1: the money supply have the first advantage because they get
Speaker 1: the money first for the cheapest price, and then they
Speaker 1: start pushing it up as it goes down. So the
Speaker 1: hedge funds, the banks, they get the money first for
Speaker 1: basically free. You and I, we don't get any money,
Speaker 1: and we certainly don't get it for free if we
Speaker 1: do get it, and so they're getting they're getting billions
Speaker 1: of dollars for basically free, and then they're using that
Speaker 1: to manipulate markets, like, for example, buying up all the
Speaker 1: single family homes in the United States. Now they're paying
Speaker 1: thirty over asking price. You and I can't do that
Speaker 1: because we have to pay well now interest rates six.
Speaker 1: But they got the money for free, so they can
Speaker 1: afford to pay more for the house because they're not
Speaker 1: paying for the money. And they're also using that money
Speaker 1: to take out these crypto positions and so forth. And
Speaker 1: so the problem is that we need to take away
Speaker 1: the money printer that prints all this money, that gives
Speaker 1: it to them to then weaponize it against us. We
Speaker 1: don't need to pass laws to prohibit people doing stuff
Speaker 1: with their money. We need to pass a law, or
Speaker 1: not even pass a law, but just take away the
Speaker 1: ability to print this money and gift everybody. All Right,
Speaker 1: So what's the next bomb that's about to drop? Well,
Speaker 1: let's see what do we got. We have the st H.
Speaker 1: That's a big problem. Like I said, this is this, uh,
Speaker 1: this is this new synthetic pegged version to ethereum and
Speaker 1: uh it's something that we can learn about ill liquidity.
Speaker 1: Right obviously you know it involves Celsius. Like I said,
Speaker 1: they have about half a billion dollars in there um
Speaker 1: and a lot of it is in this this st
Speaker 1: H right now. Um, Celsius is, like I said, caught
Speaker 1: with us because it's a liquid and they've been paying
Speaker 1: down this debt which has been helping. It's pretty good.
Speaker 1: But a lot of it is caught in that. And
Speaker 1: when that blows up, who else is holding that? And
Speaker 1: that's something that we have to figure out. Um. And
Speaker 1: it looks like that next player, that next one to
Speaker 1: drop could be something called three a C if you
Speaker 1: ever heard of That stands for three Arrows Capital. Now,
Speaker 1: three Arrows Capital wasn't really a crypto firm as far
Speaker 1: as I As far as I know, I believe there
Speaker 1: are more of like an FX trading, which is like
Speaker 1: a foreign currency reserved trader um, and they've been trading
Speaker 1: in that and they figured, hey, we'll take our you know,
Speaker 1: we'll take our chances in the crypto market as well,
Speaker 1: and they have and and apparently done really well. Now.
Speaker 1: Warren Buffett, famous who said I believe it was warm.
Speaker 1: Bufett says that all a rising tide rises all boats.
Speaker 1: But when the tide goes out, we see who's been
Speaker 1: swimming naked, and so that's exactly what's going on here,
Speaker 1: rising tide rising all boats. Now, Um, since we've been
Speaker 1: in this long bowl market with trillions of dollars slashing around,
Speaker 1: everything's going up. Everybody looks like a genius. And Three
Speaker 1: Arrows Capital has done really, really, really well. The problem
Speaker 1: is with all these leverage positions that allow them to
Speaker 1: grow really fast, when it works against you, the leverage
Speaker 1: also tears you down really fast, and that is part
Speaker 1: of the problem that we have. Now Three Arrows Capital
Speaker 1: UM looks like they're going down. Now. It hasn't been
Speaker 1: a formal announcement, but per the chatter I see on
Speaker 1: the street, UM, they have basically been ghosting everybody. They're
Speaker 1: not putting out any releases. UM traders that they work
Speaker 1: with are reporting their credit lines being shut down, their
Speaker 1: funds being taken, and this is monumental. If they collapse,
Speaker 1: this will be monumental because they borrow from every single
Speaker 1: major lender. So the other ones I already mentioned Block five, NEXTO, Celsius, Genesis, etcetera.
Speaker 1: So as I said, right, I was supposed to give
Speaker 1: my money to block find, next, Um, whatever, Celsius, and
Speaker 1: they were supposed to loan it back out again to
Speaker 1: traders who are overcollateralized traders like Three Arrows Capital, and
Speaker 1: so they've been borrowing from all these people. So if
Speaker 1: they're going down, if they're a liquid, then who has exposure?
Speaker 1: I want to tell you who has exposure. I want
Speaker 1: to tell you the dollar amounts and you will be
Speaker 1: blown away. And then when I come back, um UM
Speaker 1: show you UM some perspective to maybe make this not
Speaker 1: look so bad. You listen to the Markma Show. We're
Speaker 1: talking about the cryptocurrency market crash. We're talking about the
Speaker 1: the centralized revolution of course bitcoin, UM and more. UM
Speaker 1: I'm gonna talk about the bombs that are about to drop,
Speaker 1: So don't go away. I'll be right back, all right,
Speaker 1: welcome back. You are listening to the Markma Show. We're
Speaker 1: talking about the decentralized Revolution. We are talking about bitcoin.
Speaker 1: We're talking about the cryptocurrency blood bath that's been a
Speaker 1: domino effect. As I talked to warned you about a
Speaker 1: couple of weeks ago, starting with Terror Luna and now
Speaker 1: the contagion. We call that the contagion is spreading and
Speaker 1: we see it spreading into another one called Celsius, who
Speaker 1: has now suspended all withdraws. UM. I said, there's some hope,
Speaker 1: it's there's there's hope, there's maybe some money coming back.
Speaker 1: We don't know. Don't hold your breath, but potentially, um.
Speaker 1: But now it's spreading. And I was talking about Three
Speaker 1: Arrows Capital. Now three hours Capital was borrowing money from
Speaker 1: a lot of people. Know, we don't know exactly. So
Speaker 1: some of this is speculation. I'm not trying to spread
Speaker 1: any fud. But there's some things we do know for
Speaker 1: sure and something that we don't. So for example, the
Speaker 1: last public number for three Air Capital assets was about
Speaker 1: twenty billion dollars. Okay, so we do know that. UM.
Speaker 1: Now we don't know what they're real nav net net
Speaker 1: assets value. We don't know what that is. UM Rumors
Speaker 1: are that they might have been losing some but we
Speaker 1: know the last time it was it was about eighteen billions.
Speaker 1: We know that, we know they were borrowing from most
Speaker 1: of these major lenders. We don't know exactly who, We
Speaker 1: don't know exact amounts, but the major lenders are um
Speaker 1: Celsius who were talking about Nexo UM Block five and
Speaker 1: Genesis which is a backslow these as well. All right,
Speaker 1: so that's some of it. Now, if we look at
Speaker 1: this eighteen billion UM, it's a big number, it's a
Speaker 1: real big number. And if they go down, then it
Speaker 1: continues to spread. So now UM again not trying to
Speaker 1: spread food on these companies. Fund means fear in certainly
Speaker 1: in doubt. But if they are if they've loaned money
Speaker 1: to three arras capital and they show that on their
Speaker 1: balance sheet like oh we have you know, five billion
Speaker 1: dollars on our balance sheet, then their balance sheet looks strong,
Speaker 1: which allows them to back their leverage positions that they
Speaker 1: have collateral to back their positions. But if three years
Speaker 1: capital goes down, that potentially what let's call it hypothetically
Speaker 1: five billion is gone and now all of a sudden,
Speaker 1: without that five billion. They don't have the backing to
Speaker 1: back um the leverage that they have in the system.
Speaker 1: That's how this works, all right, So um, these lenders
Speaker 1: aren't prepared for this, and then the next one goes down,
Speaker 1: which then drags the next one down, now twenty billion dollars.
Speaker 1: It's also rumored that a lot of Wall Street hedge
Speaker 1: funds also have money in this as well, which UM
Speaker 1: I wouldn't doubt. So then it starts spreading to Wall Street.
Speaker 1: Now Wall Street at least has you know, the FED
Speaker 1: that has their back. The FED is the lender of
Speaker 1: last resort. They're there to make sure banks are backstopped,
Speaker 1: meaning don't go bankrupt, which we saw, you know in
Speaker 1: two the too Big to fail. But Krypto has no
Speaker 1: of that. Crypto has none of that. It's going to
Speaker 1: go down and no one's gonna come to save it. Now.
Speaker 1: Part of this is uh. Part of this is uh.
Speaker 1: You know, it's part of the financial markets that we're
Speaker 1: going through. Like I said, we're shifting from this long
Speaker 1: term bowl market of prices going up and now we're
Speaker 1: potentially shifted into a long term secular bear market, meaning
Speaker 1: we could see prices going down for a long time.
Speaker 1: That's the way I'm leaning right now. I'm not trying
Speaker 1: to make a long term prediction, but that's way I'm leaning.
Speaker 1: But at the same time, as we're seeing the financial
Speaker 1: markets rotate, we're also seeing the birth of a new
Speaker 1: technology in a new industry. Um. There is an article
Speaker 1: that came out this week on market Watches says, uh,
Speaker 1: why is cryptocrashing? Mark Cuban says that crypto was going
Speaker 1: through the lull that the Internet went through. So Mark
Speaker 1: Cuban Shark Tank, owner of the Mavericks, outspoken investor, et cetera.
Speaker 1: Of course he got rich in the early days of
Speaker 1: the Internet. He started Internet company, sold it off for
Speaker 1: whatever billion, a couple of billion dollars, and so he
Speaker 1: knows about these market cycles and he says it's it's
Speaker 1: it's like the lull in the Internet. So I think, uh,
Speaker 1: two thousand, so from the first first public company went
Speaker 1: public and then uh it brought all the money in,
Speaker 1: and then the vcs pumped it up through I p
Speaker 1: O s from sight and by the year two thousand,
Speaker 1: anything with the dot com on its name was going
Speaker 1: for lots of money. Like Mark Cuban made Amazon, pumped
Speaker 1: from five dollars to eighty dollars. It was insane. But
Speaker 1: then the crash, the dot com crash two thousand, Amazon
Speaker 1: dropped from five, went from five to eighty and all
Speaker 1: the way back down to five. But it came back.
Speaker 1: That's the lull that he's talking about. It came back.
Speaker 1: And he thinks that cryptocurrency is in the same downtrend
Speaker 1: the Internet and Tech company saw in their early two thousands.
Speaker 1: Um and uh. He said that crypto was going through
Speaker 1: the lull that the Internet went through, and and he
Speaker 1: compares it, which I think is is a good bet.
Speaker 1: But I think if you look at that, you'll realize
Speaker 1: that in two thousand, when that Internet lull that he
Speaker 1: calls it happened, most of the most of the dot
Speaker 1: com companies never made it past that. As a matter
Speaker 1: of fact, most of the big Internet companies today Facebook, Um, Twitter, Instagram,
Speaker 1: they didn't come around and tell the mid to mid
Speaker 1: to late two thousand's, and so if you were trying
Speaker 1: to pick the winners in the new Internet age thousand,
Speaker 1: they weren't around. Amazon made it, sure, but most of
Speaker 1: them didn't A O L, Netscape, etcetera. They didn't make it.
Speaker 1: It was not until the late two thousand's that we
Speaker 1: got the facebooks and the Instagrams and the twitters, etcetera. Okay,
Speaker 1: but I think I think he's right. But are you
Speaker 1: in Are you in the netscapes? Are you in the Amazon?
Speaker 1: That is the question. Now again, it's not just um,
Speaker 1: it's not just the Internet age that was like that.
Speaker 1: As a matter of fact, anytime we have a new technology,
Speaker 1: it's the same thing. We can go back to uh
Speaker 1: eighteen seventeen, in the city of my Mannheim, Germany, there
Speaker 1: was a low Will inventor by the name of Carl
Speaker 1: von Dreys and the unveiled a brand new futuristic vision
Speaker 1: that no one had ever seen before. He just enveiled
Speaker 1: and developed it. It was called the luft machine or
Speaker 1: a running machine in German. And I'm sorry if you
Speaker 1: speak German, I probably butchered that really bad. But it
Speaker 1: was basically what he invented was the world's first bicycle.
Speaker 1: There were no pedals, there was no seats, there was
Speaker 1: no chain to connect the wheels. The writer had to
Speaker 1: basically had to propel it with his feet and then
Speaker 1: balance on it with momentum, sort of like a scooter. Right.
Speaker 1: It was It was super crude as you could imagine.
Speaker 1: But it worked. But the but the reaction was instantly divisive. Right,
Speaker 1: some people thought it was this it was significant. Oh
Speaker 1: my gosh, look how how nice this is. Now he
Speaker 1: can glide around. Right, But then several governments, including the
Speaker 1: United Kingdom, the US and even Germany banned its use
Speaker 1: for posing too much risk to pedestrians. Sound familiar. Nevertheless,
Speaker 1: development of the bicycle persisted over the next several decades
Speaker 1: and public interest grew. By the eighties cycling they'd become
Speaker 1: incredibly popular. Even the Queen of England owned a bicycle,
Speaker 1: making it fashionable among Britain's elite. So you see, anytime
Speaker 1: there's a new technology, um, it goes through these cycles
Speaker 1: and people want to pooh pooh it and shut it down.
Speaker 1: But you can't stop a good idea whose time has come. Now.
Speaker 1: The rapidly growing populated bicycles prompted inventors and engineers across
Speaker 1: Europe to work feverishly on new designs, safer designs, innovations.
Speaker 1: There was so much brain power divided cycling that by
Speaker 1: eighteen and six, a full fifteen percent of British British
Speaker 1: patents were issued for bicycle designs. The industry exploded, bicycle factories,
Speaker 1: tire factors, repair shops, sales everywhere you get the point,
Speaker 1: sort of like the Internet boom, sort of like the
Speaker 1: crypto boom. Bicycle mania was in full swing, so naturally
Speaker 1: it didn't take long for the bankers. Now, once the
Speaker 1: bankers got involved, then it went bonkers. Seventy bicycle related
Speaker 1: companies went public on stock exchanges in the United Kingdom
Speaker 1: um in in eight the number swelled to three sixty three,
Speaker 1: and just in the first six months of eighteen and seven,
Speaker 1: another two hundred and thirty eight were listed, sort of
Speaker 1: like the dot com boom, sort of like the crypto boom. Now,
Speaker 1: most of these companies were nothing. They're hollow, there's no management,
Speaker 1: there's no hope of them ever making a profit. They
Speaker 1: just went to the market and said, I'm a cryptocurrency company.
Speaker 1: Now they said I'm I'm a bicycle business for real.
Speaker 1: That's what they said, and their prices stored just like
Speaker 1: in the dot com boom if they put dot Com
Speaker 1: on there. The bikes were so popular real, so quickly.
Speaker 1: The Financial Times devote a section of its daily newspaper
Speaker 1: to the industry Cycling magazine, and it kept growing, growing, growing.
Speaker 1: Roughly half of the bicycle companies that had gone public
Speaker 1: were no longer in business. Why the the index fell
Speaker 1: sevent from its peak. Well, why because there was no
Speaker 1: market it got it got too exuberant. Now did the
Speaker 1: bicycle die, No, not at all. As a matter of fact, Um,
Speaker 1: mountain bikes and road bikes now routinely sell for over
Speaker 1: ten thousand dollars. Biking is huge, mountain biking, it's all huge.
Speaker 1: But it got to um feverish, just like the dot
Speaker 1: com boom, just like the cryptocurrency whom this is the
Speaker 1: way new technologies work. Automobiles were no different. Um, the
Speaker 1: same thing happened, and that's where we're at with cryptocurrencies today.
Speaker 1: Sort of like the low the Internet went through, sort
Speaker 1: of like the low the cars went through. Sort of
Speaker 1: like the lol that bicycles went through. But it doesn't
Speaker 1: mean it's over. However, most of them won't make it.
Speaker 1: Bitcoin will Bitcoin will buy it. Put it in your
Speaker 1: cold storage, forget about it for three to five years,
Speaker 1: forget about everything else. Get rid of that stress in
Speaker 1: your life, and you're gonna be okay, Because the future
Speaker 1: is decentralized. You listen to the markma Show talking about
Speaker 1: the decentralized revolution, Bitcoin, cryptocurrencies, and more. That's what I
Speaker 1: got for you. Hopefully enjoyed that