Speaker 1: From the Heart of where Innovation, money and power Colli
Speaker 1: in Silicon Valley and beyond. This is Bloomberg Technology with
Speaker 1: Emily Jay I'm Emily Chang in San Francisco, and this
Speaker 1: is Bloomberg Technology. Coming up in the next hour. China
Speaker 1: on lockdown, sparking a sell off across Chinese stocks, delays
Speaker 1: in exports of just about everything to countries around the world,
Speaker 1: and comparisons to the two thousand eight financial crisis based
Speaker 1: on top of concerns about China's ties to Russia. We
Speaker 1: will discuss plus. Mark Zuckerberg lays out his vision for
Speaker 1: the Metaverse at south By Southwest in Austin, Texas. From
Speaker 1: Avatars and Creators to the Future of Work, will critique
Speaker 1: his take on the economies of the future. And my
Speaker 1: exclusive conversation with the and new CEO of All Rays
Speaker 1: working to raise up more women in tech, how she
Speaker 1: plans to make much needed change that has so far
Speaker 1: seemed impossible. Mark Zuckerberg speaking at south By Southwest in Austin, Texas,
Speaker 1: laying out his vision for the metaverse and how he
Speaker 1: believes meta is building the fundamental technologies that will make
Speaker 1: it possible. Let's dig into that conversation with Blueberks Kurt Wagner,
Speaker 1: who covers Meta for US, saying, Kurt, looking at the
Speaker 1: highlights from this interview, I know we were hoping for
Speaker 1: some hard news questions, for for some commentary on what's
Speaker 1: going on in Russia, Facebook and its properties getting shut down.
Speaker 1: That's not so much what we heard today, is it. No,
Speaker 1: it's not. Mark Zuckerberg started the conversation by acknowledging the
Speaker 1: elephant in the room. Of course, this this war that
Speaker 1: is going on, his services kind of at the center
Speaker 1: of a lot of the information sharing that's happening there.
Speaker 1: You know, he said the things that you're supposed to say.
Speaker 1: He said, Hey, I'm thinking of the people in Ukraine
Speaker 1: that there's not much you know, that that I can
Speaker 1: say that will do justice to what's happening there. Um.
Speaker 1: But really he didn't get into any of the specifics,
Speaker 1: and he didn't take any questions about the specifics, and
Speaker 1: I think it's just yet another sign of how much
Speaker 1: he's giving that portion of Meta's business, that portion of
Speaker 1: Meta's operations over to Nick Clegg, the head of policy there,
Speaker 1: who's been very forlorward and public about the company's stance
Speaker 1: in in Russian Ukraine over the last couple of weeks.
Speaker 1: So this was him kind of acknowledging what he what
Speaker 1: he felt he needed to acknowledge, but then moving on
Speaker 1: to what he wants to talk about, of course, which
Speaker 1: is the metaverse, and not just the metaverse, but the
Speaker 1: economy of the metaverse. I want to take a quick
Speaker 1: listen to a clip from that conversation earlier. And these
Speaker 1: are gonna be basically creators who are basically building all
Speaker 1: of these different experiences, and I think that's going to
Speaker 1: create this massive new economy around a lot of this
Speaker 1: that that hopefully will support many, many millions of jobs
Speaker 1: and people doing the kind of creative work that um
Speaker 1: that they want to instead of maybe the kinds of
Speaker 1: jobs that they feel they have to today. Girl, do
Speaker 1: you buy into this idea that the metaverse will create
Speaker 1: a too truly new economy? For example, how many new
Speaker 1: jobs will this create? I couldn't tell you how many
Speaker 1: new jobs, but I do think that it's going to
Speaker 1: open up a lot of probably commerce related initiatives and
Speaker 1: opportunities that we don't think about today. You know, he
Speaker 1: talked about the idea of even dressing your avatar right
Speaker 1: and and just similar to how you have a wardrobe
Speaker 1: at home, you choose what you want to wear for work,
Speaker 1: for dinner, for play, whatever it might be. You're gonna
Speaker 1: be presumably doing that with your avatar too. Your avatar
Speaker 1: is gonna show up in different settings, and you might
Speaker 1: want to dress or or act differently in those different places.
Speaker 1: Presumably you might actually spend money on those digital clothes
Speaker 1: right in much the same way. So that's just one example,
Speaker 1: but you could imagine that expand into a bunch of
Speaker 1: different things, you know, workouts, concerts, all the types of
Speaker 1: stuff that you spend money on today in the real world,
Speaker 1: but doing it in a digital environment. I think that's
Speaker 1: what he envisions as this economy surrounding the metaverse. Meantime,
Speaker 1: just a couple days earlier at south By Southwest, I
Speaker 1: asked former Nintendo president Reggie fees M his thoughts on
Speaker 1: Facebook and Zuck's view of the metaverse. He is not optimistic.
Speaker 1: Take a listen to a portion of that conversation. I'm
Speaker 1: not a buyer of that idea. I don't think that
Speaker 1: their current definition is going to be successful. Why do
Speaker 1: I say that. I say that because, first, you know
Speaker 1: and I don't know if anyone from Facebook is here,
Speaker 1: but you you have to admit that Facebook itself is
Speaker 1: not an innovative company. Not mincing words there. Facebook is
Speaker 1: not an innovative company. I'm sure that's not something Mark
Speaker 1: Zuckerberg would want to hear. No, not at all. I mean,
Speaker 1: but it's hard to dispute in some cases because a
Speaker 1: lot of the stuff that Facebook has, dawne really well,
Speaker 1: have actually been inventions that were created by other people, right.
Speaker 1: I mean, they acquired Instagram, they acquired WhatsApp, they acquired Oculus,
Speaker 1: and while they certainly helped build those those services into
Speaker 1: what they are today, a lot of the features that
Speaker 1: we know stories reels on Facebook, which is kind of
Speaker 1: a TikTok clone, right, Facebook has become known for a
Speaker 1: lot of things that other people came up with. Now,
Speaker 1: maybe that's the difference between inventing something and making it
Speaker 1: massively popular, which is something they're they're capable of doing, alright,
Speaker 1: Bloomberg's Kurt Wagner, thanks for breaking it down. Meantime, last week,
Speaker 1: Bloomberg News reported that by Now pay Later lender Affirm
Speaker 1: delayed a proposed asset back bond sale after a major
Speaker 1: investor in the top rated portion of that deal backed
Speaker 1: out last minute due to market volatility. I spoke about
Speaker 1: this with a firm founder and CEO, Max Levchin, but
Speaker 1: started by asking about the conflict in Ukraine, a country
Speaker 1: he fled as a child. Take a listen. I have
Speaker 1: people there, I have cele relatives, friends, former classmates, colleagues, UM,
Speaker 1: and UH, it's horrible what's going on there. And I
Speaker 1: think the human cost that it's now crisis proportions. UM
Speaker 1: don't have to be born in Key or Ukraine to
Speaker 1: UH to understand just how awful it is, but certainly
Speaker 1: it does not does not help to UH to recognize
Speaker 1: the streets in some of the footage. I've been very
Speaker 1: focused on trying to channel all of our family charitable
Speaker 1: contributions to refugee helping charities on the Polish border. I
Speaker 1: think that's probably the most concentrated thing one can do
Speaker 1: right now financially, to just try to upset some of
Speaker 1: the damage. Now. It's also having a macro economic cost,
Speaker 1: as we're seeing John mentioned Affirm halting this big planned
Speaker 1: bond sale or asset BacT Securities, a big investor pulling out.
Speaker 1: It seemed like this was going to go through why
Speaker 1: did that investor pull out? Um? So that's actually, you know,
Speaker 1: probably pretty important to set the record straight. So I'll
Speaker 1: I'll start from far, but I'll cover this very carefully.
Speaker 1: So first of all, we've known each other for a
Speaker 1: long time. You know that I am an engineer and
Speaker 1: think like an engineer. So we built the entirety of
Speaker 1: a firm through this whole engineering concept of full redundancy
Speaker 1: and resiliency. So our servers have tons of redundancy. Our
Speaker 1: products have a lot of ways of a complish the
Speaker 1: same thing. Are funding for our loans. Since we're not
Speaker 1: a bank, we have to fund loans from from the outside,
Speaker 1: has lots of lots of redundancy. We have ASIDA execurizations,
Speaker 1: which is what we're talking about here. We have warehouse
Speaker 1: lines where we basically place these loans into a warehouse
Speaker 1: arrangement that we sell our loans directly through forward flow arrangements.
Speaker 1: The deal that we were contemplating executing last Friday was
Speaker 1: a refinancing with an existing ASTA security. One of the investors,
Speaker 1: as you correctly pointed out, felt that the market volatility
Speaker 1: overall just made them decided to pause a purchase of bonds,
Speaker 1: and the deal had a real opportunity of becoming economically
Speaker 1: less financially attractive to us than our other funding sources.
Speaker 1: So we very quickly pivoted to place the same assets
Speaker 1: to a much better economic arrangement. And so it is
Speaker 1: correct that we decided not to do this deal, but
Speaker 1: this was entirely an economic choice in our part in
Speaker 1: favor of a firm, and part of what we said
Speaker 1: um yesterday to sort of highlight the point of this
Speaker 1: isn't just a choice we made specifically because you know
Speaker 1: that that's what I wanted to do for funding. Our
Speaker 1: profitability guide was raised specifically to make the point that
Speaker 1: even as we shift between different funding sources, we're not
Speaker 1: going to see any deterioration of our margin. In fact,
Speaker 1: we intend to improve it and expect to improve it. Right,
Speaker 1: so will you launch that deal again? And if so when,
Speaker 1: especially in the context of the market volatility that we're
Speaker 1: talking about, UH is we're certainly always looking to both
Speaker 1: expand our funding sources. And this is not our first
Speaker 1: deal and certainly not our last deal. And as we
Speaker 1: watched the asset eccurities market will certainly come back to
Speaker 1: it with other products I've literally spoken with handful of
Speaker 1: ADS investors last twenty four hours and asked them, so,
Speaker 1: how do you feel, you know, just trying to get
Speaker 1: the market color, and the answer has been, Oh, you
Speaker 1: guys are the quality and the market is definitely very volatile,
Speaker 1: but their flight to quality that secretes to you guys.
Speaker 1: And so we'll absolutely launched the next deal when the
Speaker 1: time is right a firm founder and CEO Max Levchin there.
Speaker 1: You can catch the full interview at Bloomberg dot com.
Speaker 1: Coming up, the Future of Money, We're gonna hear from
Speaker 1: Mike Novograts on Bloomberg New Crypto Show to talk about
Speaker 1: the role of digital assets in the War on Ukraine
Speaker 1: and more next. Global stock markets have whipsode investors in
Speaker 1: recent weeks with the War on Ukraine. Yet Bitcoin, usually
Speaker 1: no stranger to wild moves, has been locked in its
Speaker 1: narrowest trading range more than a year, a trend that's
Speaker 1: likely to continue, according to Mike Novograts of Galaxy Digital.
Speaker 1: He joined Bloomberg New Crypto Show Bloomber Crypto earlier with
Speaker 1: Matt Miller and Kaylee Lines. Take a listen. Let's say
Speaker 1: the dollar might never be the same, right I mean,
Speaker 1: I think the biggest thing that's happened in the last
Speaker 1: ten years, in lots of ways, maybe longer, is when
Speaker 1: Europe the US said, hey, Russia, those reserves that you
Speaker 1: thought were yours, they're not really your reserves. So what
Speaker 1: does that mean? It means the dollar or treasuries as
Speaker 1: a risk free asset isn't so resfree. It's not resfree
Speaker 1: if you're Russian, and maybe if you're Chinese, you're like,
Speaker 1: might not be a risk free either, uh. And so
Speaker 1: I think it's we're entering in a world uh that's
Speaker 1: unknown where people are going to struggle to figure out
Speaker 1: what is the reserve currency. The US isn't going away, right, Uh,
Speaker 1: the dollar is not going away, but it's not going
Speaker 1: to be the sole place. And so I think you're
Speaker 1: gonna see this hodgepodge of assets. Gold, certainly digital digital
Speaker 1: assets are gonna be part of that that bucket. The
Speaker 1: whole world is not gonna flip the bitcoin overnight, but
Speaker 1: you're going to see more and more people say I
Speaker 1: want to have some of my money outside of the sovereign.
Speaker 1: How do you deal with that debate? Though, because a
Speaker 1: lot of people are talking about the problem with cryptocurrency
Speaker 1: is that you can use it to circumvent um these sanctions.
Speaker 1: On the other hand, people in the community are saying,
Speaker 1: that's the point, right, we don't want government censorship to
Speaker 1: be able to take away our property. So let's let's
Speaker 1: talk big and small. There's zero chance the Russian government
Speaker 1: can use cryptocurrencies a circumvent right. We're regular by twenty
Speaker 1: five different agencies Galaxy and I'm sure you know f
Speaker 1: t X and Finance and the others have have just
Speaker 1: as many. And so almost all crypto moves to exchanges.
Speaker 1: Those exchanges have k y c amail processes just like
Speaker 1: Trade five exchanges. Uh. And so plus bitcoin is a
Speaker 1: public blockchain, you know. Way back we hired Mike Morell,
Speaker 1: who had run the c I a week Galaxy at
Speaker 1: a few other companies, to do a study on bitcoin.
Speaker 1: And he did like a ten weeks exhaust exhaustive study
Speaker 1: with the security agencies, with the three letter agencies, with
Speaker 1: crypto companies, and he came up with the thesis that
Speaker 1: if you're going to design a trap to catch criminals,
Speaker 1: it would look a lot like the bitcoin blockchain. And
Speaker 1: so it's just Elizabeth Warren is just wrong when she
Speaker 1: thinks you can use bitcoin for the Russia to say sanctions,
Speaker 1: and we're looking at it the wrong way. The Russian
Speaker 1: ruble has depreciated over nine in the last ten years,
Speaker 1: just this year, Loan, I think lie to low is
Speaker 1: like sixty. The Turkish Layra did the same. Bitcoin is
Speaker 1: a lifeline to people in countries with really poor stewardships
Speaker 1: of their economy, and we should be thrilled that Russians
Speaker 1: can get some of their money in bitcoins so they're
Speaker 1: not completely broke holding worthless rubles. Well, that brings me
Speaker 1: to the question of what the use cases because in
Speaker 1: the context we're talking about it, it's essentially as a
Speaker 1: replacement for fiat currencies. Is that how you view what
Speaker 1: the fit future of digital assets is? In a store
Speaker 1: of value? So gilassis is a big word, right. I
Speaker 1: think bitcoin has this really beautiful lane of being digital
Speaker 1: gold or a store of value. Everyone has a human
Speaker 1: right to have the fruits of their labor stored somewhere,
Speaker 1: and if you don't trust your your government's currency, traditionally
Speaker 1: we put it in diamonds or gold. This is the
Speaker 1: first really digital version of that, and so I think
Speaker 1: that's bitcoin's use case. Now listen, there's also a lot
Speaker 1: of other digital assets. There's digital uh stable coins, or
Speaker 1: digital dollars or euros. There's things ethereum digital networks and
Speaker 1: f t s right, and so the the the revolution
Speaker 1: that's happening isn't just in one lane. But I think
Speaker 1: for bitcoin it really is a place you store value.
Speaker 1: Galaxy Digital head crypto investor Mike novograts there. You can
Speaker 1: now catch our weekly Bloomberg Crypto Show every Tuesday one
Speaker 1: in Eastern Time, co hosted by my colleagues Matt Miller
Speaker 1: and Kaylee Lines, where they covered the people, transactions and
Speaker 1: technology shaping the world of DeFi welcome back to Bloomberg Technology.
Speaker 1: I'm Emily Chang in San Francisco. Two years into this pandemic,
Speaker 1: working women and especially moms are struggling. We see women
Speaker 1: leave the workforce at historic levels. A new global study
Speaker 1: found that last year alone, roughly of women left their
Speaker 1: jobs between just March and September alone, most because of
Speaker 1: their responsibilities to care for others. Joining me now Rashman Johnny,
Speaker 1: founder of Girls Who Code and the author of a
Speaker 1: new book Pay Up The Future of Women and Work
Speaker 1: and why It's different than you think, talk to us
Speaker 1: about where we are right now as the pandemic hopefully
Speaker 1: winds down. What are we not seeing, what's different than
Speaker 1: we think? Well, I think we know that workplaces have
Speaker 1: never worked for women, and over the pandemic, you know,
Speaker 1: women found themselves without childcare, with managers who didn't get it,
Speaker 1: with partners who weren't doing their fair share, and now
Speaker 1: women are in crisis. Millions of women have left the workforce.
Speaker 1: Working moms say they're anxious and depressed. We can't go
Speaker 1: back to a broken system. What can business leaders do
Speaker 1: right now to support women in moms in the workforce.
Speaker 1: And I'd love to hear your thoughts on the tech
Speaker 1: industry in particular where it's so male dominated. Yeah, well,
Speaker 1: we have a once in a lifetime opportunity. As you know, Emily,
Speaker 1: the recent jobs report that came out eleven million open jobs.
Speaker 1: CEOs are desperate, desperate for talented workers to fill those jobs.
Speaker 1: So it's the seller's market right now. So I think
Speaker 1: women have an opportunity to ask for what they need.
Speaker 1: And what we need is affordable childcare. What we need
Speaker 1: is paid leave. What we need is employers who are
Speaker 1: going to support us on our mental health. We can
Speaker 1: ask for what we need. We don't have to go
Speaker 1: back to the old normal. There are companies like Netflex,
Speaker 1: like Microsoft, eBay with really strong family and parental leave policies.
Speaker 1: Is that enough or do we need something at a
Speaker 1: national level? And if we need something at a national level,
Speaker 1: why has it been so hard to make that first?
Speaker 1: I don't think it's enough. Look, many tech companies are
Speaker 1: doing you know, they're making progress right there offering some
Speaker 1: of these benefits. But for example, some technology companies like
Speaker 1: Facebook offer more in helping you freeze your eggs than
Speaker 1: in childcare. And we know that the reason why women
Speaker 1: are not returning back to work is because childcare is
Speaker 1: too expensive. Most families spend more for their mortgage, more
Speaker 1: for their childcare than they do for their mortgage. It
Speaker 1: is literally the largest expense for families paid leave. It's
Speaker 1: not good enough just to tell that you offer paid leave.
Speaker 1: Companies like Apple still don't have gender neutral paid leave
Speaker 1: policies in two thousand and twenty two. That's archaic. So
Speaker 1: you can't just offer these policies. You have to mandate
Speaker 1: that men actually take them. Tie it to performance review,
Speaker 1: change the corporate culture. You know, Emily, we just went
Speaker 1: through We're just in the middle of women's history of
Speaker 1: and we just went through International Wednesday, Today's pay Equity Day,
Speaker 1: And in every single boardroom there's a conversation happening about
Speaker 1: how to get a mentor, how to get a sponsor,
Speaker 1: how to learn how to be an investor. The conversations
Speaker 1: that I want to be happening is how to get
Speaker 1: your partner to do more laundry, how to get the
Speaker 1: men in this corporate culture to do more laundry. How
Speaker 1: to make sure that we audit our corporate policies so
Speaker 1: that they're not exacerbating gender inequality at home, because until
Speaker 1: we get to gender equality at home, we're never going
Speaker 1: to get to gender equality in the workplace. And quite frankly, frankly,
Speaker 1: corporate feminism has been taking us down the wrong path.
Speaker 1: And I I realized that, you know, for the past
Speaker 1: ten years, I've been telling young women to lean in,
Speaker 1: you know, to girl boss their way to the top.
Speaker 1: That the quality was just you know, an express train
Speaker 1: to the corner office. And I found myself in the
Speaker 1: pandemic with two little kids, trying to maintain a full
Speaker 1: time job, and it nearly broke me, and I realized
Speaker 1: that having it all, it's just a euphanism for doing
Speaker 1: it all. So we had to stop trying to fix
Speaker 1: the woman and fix the system. And that includes technology
Speaker 1: companies who often tout that their policies and and the
Speaker 1: fact that they're trying to lift women up. Well, now
Speaker 1: it's trying. It's time to get meant to do more right.
Speaker 1: Let in, let's talk about that rushima. It doesn't help
Speaker 1: that there are tech founders and investors out there like
Speaker 1: Joe Lonsdale perpetuating stereotypes about men taking parental leave. This
Speaker 1: tweet from him just a few months ago, saying great
Speaker 1: for fathers to spend time with their kids and support moms,
Speaker 1: but any man in an important position who takes six
Speaker 1: months of leave for a newborn is a loser. In
Speaker 1: the old days, men had babies and worked harder to
Speaker 1: provide for their future. That's the correct masculine response. I mean,
Speaker 1: there are almost no words, no words, no words. I
Speaker 1: mean almost so many female founders I know get asked, well,
Speaker 1: you're planning to have kids? You know when you have
Speaker 1: a family. Is that it's as if being a mother
Speaker 1: is a distraction to your job and it's why we
Speaker 1: have the motherhood penalty. You know, the reason why we
Speaker 1: have a pay gap is because is between mothers and fathers.
Speaker 1: The minute you become a mom, suddenly you're less committed
Speaker 1: to your job. You're unable to build the next Facebook
Speaker 1: or the next Twitter. And so we have to root
Speaker 1: out that discrimination, which is at its core. And oftentimes
Speaker 1: in tech companies that think they're libertarian, they think they're
Speaker 1: a meritocracy. You know, they do it the worst. You know,
Speaker 1: in many ways, rooting out the motherhood penalty is just
Speaker 1: an algorithm away. Tomorrow. Every single one of the Fortune
Speaker 1: on companies could get rid of the pay gap if
Speaker 1: they wanted to. Well, appreciate you out there trying to
Speaker 1: shatter some of these stereotypes. Rashmachal Johnny, author of the
Speaker 1: new book pay app Always great to have you here.
Speaker 1: Thank you for having me. It's great to be here.
Speaker 1: Tesla is raising prices on all of its electric cars
Speaker 1: after CEO Elon Musk said costs were going up. The
Speaker 1: cheapest Model three in the US is now just under
Speaker 1: forty dollars. Credit Sweet says the price hikes were between
Speaker 1: three and five in the US and China. Coming on
Speaker 1: speaking with Joe Lubin, Consensus CEO and founder and Ethereum
Speaker 1: co founder about their massive new round of funding and
Speaker 1: the future up blockchain companies as they lean in to
Speaker 1: the metaverse. The whole year, I thought we need to
Speaker 1: be a thirty thousand fifty thousand range in Bitcoin risk
Speaker 1: to the upside, not the downside. Um, but I think
Speaker 1: you know five years out bitcoin is not at five thousand.
Speaker 1: I'm wrong. On the adoption cycle, uh right, we see
Speaker 1: an adoption cycle that accelerates. Bitcoin grew so much faster
Speaker 1: last year Crypto grew than the Internet did its best
Speaker 1: years in the nineties. Mike Novograt's there of Galaxy Digital
Speaker 1: saying Bitcoin could hit five hundred thousand dollars within five years.
Speaker 1: I want to kick off our crypto report now with
Speaker 1: our crypto contributor Sali Bostic Shanali bold prediction there from
Speaker 1: Mr novograts bold prediction, and to get there you would
Speaker 1: have to have bitcoin rise more than twelve times Emily.
Speaker 1: So you have to wonder what will it take to
Speaker 1: get there and what does that adoption curve look like.
Speaker 1: Bitcoin is trading below where it was this time last year.
Speaker 1: We have seen if you take a look over here
Speaker 1: at the chart, a few days of a lift here,
Speaker 1: but that still leaves you only under forty thousand perfect coins.
Speaker 1: So there's a large question about exactly that. What does
Speaker 1: that adoption curve look like? Last year there was a
Speaker 1: ton of companies, a couple of sovereigns that have started
Speaker 1: to discuss adopting it at a greater rate. But what
Speaker 1: is twelve times the that we've seen prior? All right,
Speaker 1: Janalie stick with us. I want to bring in our
Speaker 1: next guests, Consensus CEO and founder and co founder of Ethereum,
Speaker 1: Joe Lubin, whose company just announced a new four hundred
Speaker 1: fifty million dollar round of funding, huge round. Joe, and
Speaker 1: I want to talk about how you're using this funding
Speaker 1: and also putting it to work in kind of a
Speaker 1: different way. Explain that, Um, thanks simply. Yeah. UM, So
Speaker 1: we are taking in we we've taken in four hundred
Speaker 1: fifty million dollars in our latest rays, and we've been
Speaker 1: working on being a crypto native company. UM. We've been
Speaker 1: working on progressively decentralizing ourselves for years. We've built infrastructure
Speaker 1: in the form of a consumer wallet, in the form
Speaker 1: of a metal mask institutional wallet UM and we've built
Speaker 1: institutional grade staking facilities and u UM. We are converting
Speaker 1: the vast bulk of the pro seats of the rays
Speaker 1: to ether um, both because we have steaking infrastructure where
Speaker 1: we can generate yield on that, but also in advance
Speaker 1: of the merge where a THEREM one and ETHERREM two
Speaker 1: um affects the transition between proof of work and proof
Speaker 1: of steak and UM, and that's going to ring in
Speaker 1: an era of what we like to call ultrasound money
Speaker 1: where the ethereum token M becomes a very important financial
Speaker 1: instrument in the global economy. All eyes on that merge, Joe. Indeed,
Speaker 1: you surpassed thirty million monthly active users with your Etherium
Speaker 1: based crypto wallet meta mask, and I'm curious how much
Speaker 1: awareness this is driving around Web three and in what's
Speaker 1: going to take? What number is it going to take
Speaker 1: for Web three to hit mainstream UM So where we're
Speaker 1: seeing a lot of crossing of the chasm, where we're
Speaker 1: seeing cryptocurrencies defy n f t s crossing the chasm
Speaker 1: into mainstream adoption. Very recently, we've seen another major crossing
Speaker 1: where nation states are considering this technology to be of
Speaker 1: national security importance UM and UM. Firstly, every nation state
Speaker 1: has to get savvy. They have to start experimenting with
Speaker 1: the technology and gaining expertise and really wielding the tools
Speaker 1: of the blockchain and crypto ecosystem because if they don't,
Speaker 1: their neighbors will. And UM. Monetary systems, financial systems are
Speaker 1: being wielded as weapons on the global geopolitical stage right
Speaker 1: now and UM. This technology is going to flip everything
Speaker 1: upside down, make it more bottom up, build a new
Speaker 1: trust foundation UM. And essentially nation nation states are are
Speaker 1: jumping in already, UM and UM. So it's it's elements
Speaker 1: like that that will drive adoption. Its elements like sports
Speaker 1: leagues and many other platforms that are starting to make
Speaker 1: use of web three. Joe to that point, you know,
Speaker 1: there's a lot of conversation over the last year on
Speaker 1: how to think about bitcoin versus ethereum and how ethereum
Speaker 1: will get greater adoption on a global scale. How do
Speaker 1: you see the conversation playing out as people make decisions
Speaker 1: on what they're going to operate on. So it coin
Speaker 1: is a very important construct. We think of it as
Speaker 1: digitally sound money, where gold is so physically sound money. Um.
Speaker 1: Ultrasound money is this new concept UM where the ether
Speaker 1: token is burned on every transaction and a huge amount
Speaker 1: of ether um is being frozen, essentially reducing the supply
Speaker 1: on the market via staking in the protocol itself as
Speaker 1: we moved to proof of steak and staking in defy
Speaker 1: and in decentralized organizations and so UM. I think bitcoin
Speaker 1: will have an important role going forward UM as a money,
Speaker 1: but Ether is a fuel for the entire decentralized protocol
Speaker 1: economy which is going to eat the world. And ultrasound
Speaker 1: money is a deflationary money, and so we expect a
Speaker 1: huge amount of value to move into Ether in the
Speaker 1: next few months. You mentioned D five, but I'm curious
Speaker 1: about your take on n f T s. Here, Joe,
Speaker 1: we see volumes trending downward. Do you see this space
Speaker 1: being stagnant? And if it grows more, what would be
Speaker 1: the catalyst to help it expand once again? So our
Speaker 1: ecosystem moves in masses, surges and consolidations UM. So from
Speaker 1: tokenization to i c o S to defy one point
Speaker 1: oh two n f t s to divide two point
Speaker 1: oh two doos UM and so we're going to continue
Speaker 1: to see major new constructs emerge in our ecosystem. They
Speaker 1: tend to happen on Ethereum first UM, and each one
Speaker 1: drives a lot of excitement. Some are rational exuberance UM
Speaker 1: and months of high intensity activity and growth of the
Speaker 1: ecosystem and increase of value UM. But then we see
Speaker 1: consolidations as things shake out, and each of these pieces
Speaker 1: become fundamentally important. They become a foundation for for the
Speaker 1: next fundamental construct to potentially be built. UM. I don't
Speaker 1: know exactly what the next phase is, but UM all
Speaker 1: of us in the ecosystem essentially use these UH, these
Speaker 1: more relaxing periods to gird up our our teams for
Speaker 1: the next wave. Joe, a group of our former employees
Speaker 1: and shareholders are asking for an audit of a transfer
Speaker 1: of assets, including intellectual property you made from Consensus a
Speaker 1: g two Consensus Software, Inc. What's your response to this?
Speaker 1: Quickly so, the mothership Consensus a g UM has invested
Speaker 1: in north of two D projects, has incubated many of
Speaker 1: those projects. Internally, we spun out forty or so of
Speaker 1: those projects met a mask and Infura UM and our
Speaker 1: protocols teams spun out together UM and UM so we
Speaker 1: we've transferred intellectual property in many situations into startups. The
Speaker 1: the group in question is um seeing the value of
Speaker 1: the success that the Consensus Software Inc. Is having now
Speaker 1: and they would like to apply the current valuation to
Speaker 1: an event that was priced by our house Cooper's at
Speaker 1: third at arm's length and uh um and done in
Speaker 1: the darkest moments of COVID. And so it's uh it's
Speaker 1: an unreasonable ask. Unreasonable ask? Got it? Joe Lubin, co
Speaker 1: founder of Ethereum, CEO of Consensus, along with our Shinali Bask,
Speaker 1: thank you for taking the time accelerating the success of
Speaker 1: women and people of color in technology. My next guest
Speaker 1: has spent her career trying to do just that, and
Speaker 1: now she has a chance to shift into high gear.
Speaker 1: At All Rays, the nonprofit with the singular goal to
Speaker 1: diversify the tech ecosystem. Joining me now, Mandela Schumacher Hodge Dixon,
Speaker 1: the new CEO of al Rays, in an exclusive interview, Mandela,
Speaker 1: thank you so much for joining us. You were named
Speaker 1: after Nelson Mandela, So I imagine change is something that
Speaker 1: is incredibly important to you. How are you going to
Speaker 1: change something specific sically? The representation of women in technology
Speaker 1: that so far seemed impossible to change. Wow, the million
Speaker 1: dollar question. Well, thank you so much, first of all,
Speaker 1: Emily for having me here. I am beyond honor to
Speaker 1: be in conversation with you. And just like you said,
Speaker 1: my origination is in an insto racial marriage of two
Speaker 1: civil rights attorneys who are part of grassroots movements like
Speaker 1: the apartheid movement, the anti apartheid movement, and uh, you
Speaker 1: can just imagine the conversations around the dinner table that
Speaker 1: we had. But empathy, inclusion, diversity, justice, UM, seeing people
Speaker 1: valuing people is a core part of my d n
Speaker 1: A and I definitely will bring that to the work
Speaker 1: at all rays where we support the success like you
Speaker 1: mentioned of women and non binary leaders in tech. And
Speaker 1: I think the thing that I'm really going to add
Speaker 1: to it is my long history in community development. We
Speaker 1: support funders, founders, operators, LPs, angel investors. When you think
Speaker 1: about all the wrongs of the tech ecosystem, they are
Speaker 1: within the all race community. We are twenty two thousand strong.
Speaker 1: And I think that going forward, if we have a
Speaker 1: more unified approach to how we are going to create
Speaker 1: seasonic change, then I think that will start having different outcomes.
Speaker 1: All Rays was founded by power women investors who come
Speaker 1: from competing firms, but all want the same thing. More
Speaker 1: women writing checks, more women getting funded. What have they
Speaker 1: told you that they want you to do differently in
Speaker 1: this next phase of All Race. Yeah, well, there's a
Speaker 1: big focus on the founders. So the founders are the
Speaker 1: entrepreneurs and they're really the lynchpin of this entire ecosystem.
Speaker 1: And one of the stats that's I know you know
Speaker 1: very well and that you report on a lot, is
Speaker 1: this two percent number, This two percent of funding that
Speaker 1: is going to women founders, And I want to clarify
Speaker 1: for everyone that it's a little bit deeper than at
Speaker 1: It's actually seventeen percent of venture capital in went to
Speaker 1: female founders. But if you break that down, fifteen percent
Speaker 1: of the seventeen percent went to mixed gender teams, whereas
Speaker 1: two percent went to female founded only teams. Right, So
Speaker 1: we are seeing an uptick in the capital flowing to
Speaker 1: female founders, but whether or not they have a male
Speaker 1: co founder, right, that's something to dig further deep into.
Speaker 1: But this question around why two percent? Why does it
Speaker 1: keep staying here? I really want to ask a different question,
Speaker 1: which is who is owning this capital that is making
Speaker 1: the decision not to deploy more capital to female founders. Right,
Speaker 1: if we continue to give the same types of people
Speaker 1: the same opportunity to take a swing at bat, of
Speaker 1: course they're going to have a higher probability of hitting
Speaker 1: a home run. Part of the issue is giving women
Speaker 1: and non binary leaders a swing at back so we
Speaker 1: can get our capital, our mentorship, all hands on tech,
Speaker 1: access to the portfolio founders, access to all that comes
Speaker 1: along with the capital to really have it be a
Speaker 1: strong arm in our business to get different outcomes and
Speaker 1: spending those numbers a slightly different way. That means more
Speaker 1: than eighty percent of venture capital is going to all
Speaker 1: male teams. Right, you were one of the You were
Speaker 1: one of the first black women to be raising money
Speaker 1: in Silicon Valley, and I'm curious how that personal experience
Speaker 1: is going to inform the work that you do. Yeah.
Speaker 1: You know one of our board members, just Lee, who
Speaker 1: was the first female partner at Sequoia Capital. One thing
Speaker 1: that she brings up oftentimes in our conversations and even
Speaker 1: with our all race community this morning, is this notion
Speaker 1: of me being an insider but having an empathy and
Speaker 1: a deep understanding of being an outsider. Right. Just like
Speaker 1: you mentioned, this is back in two thousand eleven, before
Speaker 1: you know, Jesse Jackson was in Silicon Valley knocking on
Speaker 1: the doors of all the tech companies demanding for them
Speaker 1: to release their diversity numbers, before this really became a
Speaker 1: mainstream topic. I was a black woman from at the time,
Speaker 1: living in Los Angeles who has a background as a teacher,
Speaker 1: trying to break into this world. I had many things
Speaker 1: stacked against me, right, my pedigree, my identity, my lack
Speaker 1: of insider knowledge, and so I have a deep understanding
Speaker 1: of what it's like to break in as an outsider,
Speaker 1: and also what it is like to transition from a founder,
Speaker 1: a two time founder, a two time operator, an investor
Speaker 1: in LP, all of these hats I've floored in my
Speaker 1: now eleven year career out here, and so that was
Speaker 1: part of the magic of what I'm bringing to all
Speaker 1: rays of just understanding the nuances of this ecosystem. Well,
Speaker 1: change is certainly not going to happen without a healthy
Speaker 1: dose of reality but also optimism. So I appreciate hearing
Speaker 1: a little optimism in your voice. Mandela Schumacher Hajje Dixon,
Speaker 1: the new CEO of All Rays. Thank you. We will
Speaker 1: be cheering you on. And that does it for this
Speaker 1: edition of Bloomberg Technology. We're gonna be joined tomorrow by
Speaker 1: Aaron Levy, CEO of Box, along with Jared's Pittaro, corporate
Speaker 1: vice president of Mike Rossoft. We'll be talking about the
Speaker 1: future of work. That's tomorrow. This is Bloomberg