WEBVTT - The Great Unwind 0:00:00.000 --> 0:00:02.360 Hello, and welcome to another episode of The Markma Show, 0:00:02.400 --> 0:00:05.000 where we talk about the world changing right before our 0:00:05.080 --> 0:00:08.280 very eyes through what I'm calling the decentralized Revolution. Three 0:00:08.320 --> 0:00:11.959 converging forces changing the world. Of course, those are politics, finance, 0:00:12.000 --> 0:00:15.280 and technology, And of course the technology is the biggest piece. 0:00:15.280 --> 0:00:18.240 We're talking about bitcoin cryptocurrencies because as we go back 0:00:18.280 --> 0:00:21.160 through thousands of years of history, it's always the technology 0:00:21.200 --> 0:00:28.800 that changes the world. And while changes happen over decades, UM, 0:00:28.840 --> 0:00:30.480 a lot of times when you're looking at it so close, 0:00:30.520 --> 0:00:32.800 you don't really see the changes, but if you zoom in, 0:00:32.880 --> 0:00:34.559 you can see them all around. And that's exactly what 0:00:34.600 --> 0:00:37.400 I'm doing today, trying to bring to you the best education, 0:00:37.720 --> 0:00:40.720 the most up to date news, UM, and uh, some 0:00:41.479 --> 0:00:43.280 interesting people to hear from, so you don't have to 0:00:43.280 --> 0:00:44.879 listen to me all the time, so you can get 0:00:44.880 --> 0:00:47.640 some different perspectives. But uh, there is so much news 0:00:47.640 --> 0:00:49.880 going on in the big thing that's going on really 0:00:49.920 --> 0:00:53.080 in the bitcoin crypto space is um, let's call it 0:00:53.159 --> 0:00:55.880 the Great Unwind. Maybe I just made that up. I 0:00:55.920 --> 0:00:58.000 don't know if I've heard that before, the Great Unwind, 0:00:58.040 --> 0:01:01.800 but that's exactly what's happening the leverage, and that's the keyword. 0:01:02.000 --> 0:01:04.800 Leverage that's been built up in the system is now 0:01:05.400 --> 0:01:10.920 de leveraging went from leverage to d leverage. Now leverage 0:01:11.160 --> 0:01:15.080 is is a tool. I like to say that leverage 0:01:15.120 --> 0:01:18.640 is like a fire. Leverage is like fire. So leverage 0:01:18.680 --> 0:01:22.240 could leverage like fire. Fire could be used to warm 0:01:22.319 --> 0:01:24.720 my house in the winter and I could save my life. 0:01:25.400 --> 0:01:29.959 Um or it could burn my whole house down. And 0:01:30.000 --> 0:01:32.039 that's sort of like what we're seeing. So we could 0:01:32.040 --> 0:01:35.120 call it a double edged sword. It can cut my enemy, 0:01:35.120 --> 0:01:36.840 it can cut me. I have to be careful with it. 0:01:37.440 --> 0:01:40.000 And so that's what leverage is. Now. Leverage helps us 0:01:40.000 --> 0:01:44.720 to grow faster, that's the positive benefits of leverage, and 0:01:44.760 --> 0:01:48.200 then it tears us down faster. So a couple of 0:01:48.440 --> 0:01:52.280 examples of this would be, um, let's say that my 0:01:52.400 --> 0:01:54.720 business is booming because the FED printed a bunch of 0:01:54.720 --> 0:01:56.360 money and I have a way more customers than I 0:01:56.360 --> 0:01:59.080 ever had before. More people want to fill in the 0:01:59.080 --> 0:02:00.800 blank whatever kind of buy and us. Let's say I'm 0:02:00.840 --> 0:02:03.920 a home service based business. So people want to remodel 0:02:03.960 --> 0:02:05.720 their homes, they want to buy new mini blinds, put 0:02:05.800 --> 0:02:08.880 jacuzzis in remodel their bathrooms whatever, fill in the blank, X, 0:02:09.000 --> 0:02:11.440 y Z, and so, shoot, man, I'm booked out. I 0:02:11.440 --> 0:02:13.720 can't get to the appointments fast enough. I hire new people. 0:02:14.000 --> 0:02:15.600 I have to buy new trucks. I get a couple 0:02:15.600 --> 0:02:17.079 of new trucks to get the new people in there 0:02:17.080 --> 0:02:19.040 going out there. I gotta buy a new equipment to 0:02:19.040 --> 0:02:22.359 get these things built and serviced and installed. Business is booming, 0:02:22.400 --> 0:02:25.480 it's never been better. And in order to grow faster, 0:02:25.639 --> 0:02:27.519 to keep up with that demand, would use leverage. The 0:02:27.600 --> 0:02:31.440 leverage would be credit. So now borrowing money, I'm using 0:02:31.480 --> 0:02:35.240 credit lines. I'm using leverage to buy those trucks, to 0:02:35.480 --> 0:02:37.799 buy that equipment. And of course it's great because all 0:02:37.880 --> 0:02:41.280 this new business is making up way more than what 0:02:41.360 --> 0:02:43.760 those payments are on those trucks or that new office 0:02:43.880 --> 0:02:45.799 or that equipment that I had to buy. So you know, 0:02:45.840 --> 0:02:48.000 I bought a new machine, it's a hundred thousand dollars, 0:02:48.400 --> 0:02:50.760 my payments whatever, five hundred bucks a month, but it's 0:02:50.800 --> 0:02:53.480 making me five thousand dollars a month. So it's like, hey, 0:02:53.520 --> 0:02:55.960 I'll pay five a month in debt to get the 0:02:55.960 --> 0:02:57.760 five thousand a month it's making me. That's great, And 0:02:57.800 --> 0:03:00.639 so that leverage. That debt allows me to grow really 0:03:00.680 --> 0:03:02.200 fast and keep up with that. But the problem is 0:03:03.720 --> 0:03:07.160 when the market shuts off, my phone is not ringing 0:03:07.680 --> 0:03:09.760 and I'm not getting new customers, and that machine is 0:03:09.880 --> 0:03:13.160 not running. How do I afford to pay for all 0:03:13.200 --> 0:03:17.080 that debt? And just as fast as it built up, 0:03:17.639 --> 0:03:20.360 it gets wiped out. All the debt just evaporates and 0:03:20.360 --> 0:03:22.920 it clears out. And that's exactly what's happening um in 0:03:23.120 --> 0:03:26.440 all the markets in UH, in the stock markets, in 0:03:26.480 --> 0:03:29.600 the housing markets, but it's specifically been really, really painful 0:03:29.639 --> 0:03:31.920 in the cryptocurrency markets. We've been talking about this for 0:03:31.919 --> 0:03:36.120 several weeks now, and really we went super deep when 0:03:36.160 --> 0:03:39.960 we saw Tara Luna meltdown. Tara Luna was supposed to 0:03:39.960 --> 0:03:41.960 be a stable coin. I'm not gonna go super deep 0:03:41.960 --> 0:03:43.560 into this. I've already broken this down. You can go 0:03:43.880 --> 0:03:49.200 check out Mark moss Um podcast, Mark moss I Heart 0:03:49.200 --> 0:03:52.200 Mark moss Podcast, and you can find all my back issues. 0:03:52.480 --> 0:03:54.080 So dig back a couple of weeks, just go through. 0:03:54.080 --> 0:03:55.760 You'll see where I talked about Terry Lune. I broke 0:03:55.800 --> 0:03:58.040 down the mechanism, how it worked, how they use leverage 0:03:58.080 --> 0:03:59.560 to build it up, how it was like a Ponzi 0:03:59.680 --> 0:04:02.280 and how on wines. But the problem is as Tara 0:04:02.360 --> 0:04:06.400 Luna unwound, which I was about a sixty billion dollar 0:04:06.520 --> 0:04:08.840 valuation at the time. Now to put that into perspective, 0:04:10.080 --> 0:04:12.720 you remember the Great Financial Crash, you know, two thousand eight, 0:04:12.800 --> 0:04:15.120 the Great Financial crash, you know, when the entire global 0:04:15.600 --> 0:04:21.080 banking system was basically crashing at the same time. Well, 0:04:21.120 --> 0:04:23.839 if you remember that, um, there was a spark that 0:04:23.920 --> 0:04:26.320 really led to that. Of course, that was Lehman Brothers. 0:04:26.360 --> 0:04:29.919 Lehman Brothers went bankrupt and Lehman Brothers was worth about 0:04:30.480 --> 0:04:33.400 sixty billion dollars at the time, So we're talking about 0:04:33.440 --> 0:04:36.200 about the same magnitude. And what happened when when when 0:04:36.400 --> 0:04:39.240 Lehman Brothers went down, all the other banks that were 0:04:39.320 --> 0:04:41.479 caught up with I had loaned money. There were also 0:04:41.520 --> 0:04:43.400 caught up, and then they started coming down because of 0:04:43.400 --> 0:04:48.120 the leverage UM and that's the collateral. So they loaned money, 0:04:48.200 --> 0:04:49.840 they had it on their books as an asset. When 0:04:49.880 --> 0:04:52.640 that money got written off, then that collateral was no good, 0:04:52.640 --> 0:04:55.400 so they got margin calls, staded to post more collateral. 0:04:55.440 --> 0:04:58.240 That went down and it triggers a domino effect and 0:04:58.240 --> 0:05:00.719 that's exactly what happened with Harry Luna. As we've been 0:05:00.760 --> 0:05:02.720 covering this each week, right, So then we saw Ary 0:05:02.839 --> 0:05:05.520 Luna go down, and then it was like Celsius is 0:05:05.560 --> 0:05:08.119 going down. And then when you talked about like three arrows, 0:05:08.160 --> 0:05:11.440 capital starts going down and it's it's the Great unwind. 0:05:11.760 --> 0:05:17.680 That's what we're dealing with. And it's all because of leverage. Now, um, 0:05:17.839 --> 0:05:23.000 we're still processing through this, but this is probably uh, 0:05:23.080 --> 0:05:25.920 you know, obviously a lot of this, the Great unwind 0:05:26.080 --> 0:05:29.440 was kicked off, was ignited because the FED is trying 0:05:29.480 --> 0:05:32.080 to do a great unwind. So the Fed, the Federals 0:05:32.120 --> 0:05:35.560 over there States is the greatest, the the producer of 0:05:35.600 --> 0:05:39.520 the leverage. Right, that's where it comes from. They print money. 0:05:39.600 --> 0:05:42.159 They print trillions of dollars and put it into the system, 0:05:42.160 --> 0:05:45.880 which causes the housing market to boom, for example, and 0:05:45.920 --> 0:05:49.159 then they drop interest rates to zero. So you go 0:05:49.480 --> 0:05:53.120 borrow a bunch of money, you use a bunch of leverage. 0:05:54.000 --> 0:05:57.039 That's what creates the booms. They print the money, they 0:05:57.160 --> 0:06:00.880 lower the interest rates. You go use that leverage they've 0:06:00.920 --> 0:06:05.200 provided to you, but then they decide when to suck 0:06:05.240 --> 0:06:07.440 it right back out. They decide when to shut the 0:06:07.520 --> 0:06:11.160 music off. So then they stop putting money into the economy, 0:06:11.200 --> 0:06:15.040 and then they raised the rates on you. And so 0:06:15.120 --> 0:06:17.080 that's what started this great and wine that that started 0:06:17.360 --> 0:06:19.120 was November of last year. The FED said they were 0:06:19.120 --> 0:06:22.400 gonna start raising rates, They're gonna start letting assets roll 0:06:22.440 --> 0:06:24.080 off their books. They weren't gonna pump money out through 0:06:24.120 --> 0:06:26.600 quantity of easian anymore, um. And so since then we've 0:06:26.600 --> 0:06:29.279 seen the cryptocurrency markets really start to unwind. Now the 0:06:29.279 --> 0:06:33.360 cryptocurrency markets seem to lead the rest of the financial markets. 0:06:34.000 --> 0:06:38.800 So I think that bitcoin specifically and crypto overall um 0:06:38.920 --> 0:06:40.400 really is kind of this canary in the coal mine 0:06:40.440 --> 0:06:43.440 where it unwound way faster. So bitcoins started rolling over 0:06:43.440 --> 0:06:47.440 really quick and started selling off much before the traditional 0:06:47.440 --> 0:06:50.400 financial markets did. So the FED kicked it off. But 0:06:50.440 --> 0:06:54.800 then as as the bitcoin and cryptocurrency markets capped started falling, 0:06:55.560 --> 0:06:58.080 then that's when the that's when the Terror Luna got 0:06:58.120 --> 0:07:00.240 into trouble. It worked really well when bick And was 0:07:00.240 --> 0:07:02.720 going up in value, but when Bitcoin went down in value, 0:07:02.720 --> 0:07:05.120 Tary Luna got into trouble. When Terry Luna got into trouble, 0:07:05.120 --> 0:07:07.599 then Celsi's got into trouble, etcetera. So here we are 0:07:07.920 --> 0:07:10.640 dealing with this, and it's been a massive drag on 0:07:10.680 --> 0:07:15.160 the bitcoin and cryptocurrency space because it's basically causing massive liquidations, 0:07:15.200 --> 0:07:18.600 meaning they are being forced to sell huge amounts or 0:07:19.000 --> 0:07:22.000 pretty much all everything. They have. Huge amounts of bitcoin 0:07:22.040 --> 0:07:24.400 and ethereum exce are onto the markets at the right time, 0:07:24.440 --> 0:07:29.480 at the exact same time. So supply and demand. If 0:07:29.520 --> 0:07:32.640 you have more bitcoin being sold or more crypto being 0:07:32.680 --> 0:07:35.880 sold than there are buyers for it, the price will 0:07:35.920 --> 0:07:38.640 come down. And so right now with the markets, all 0:07:38.680 --> 0:07:41.280 the markets crashing, the entire you know, from real estate 0:07:41.360 --> 0:07:44.480 to stock markets, do you name it down. Crypto of 0:07:44.520 --> 0:07:46.760 course is way down. But then you have to dump 0:07:46.840 --> 0:07:48.880 all of this on the market. There's not people to buy. 0:07:48.880 --> 0:07:50.400 It's what happens to the price. Of course, it comes 0:07:50.400 --> 0:07:53.960 down pretty easy to understand. So I think it's been 0:07:54.600 --> 0:07:55.960 like I said, the carrying the coal mine, I think 0:07:55.960 --> 0:07:58.680 it happened first, and I would think we would be 0:07:58.800 --> 0:08:02.440 maybe at about the bottom about now. But man, the 0:08:02.560 --> 0:08:04.840 hits just keep on coming. So let's talk about some 0:08:04.880 --> 0:08:08.640 of those hits that keep on coming. So um, like 0:08:08.680 --> 0:08:12.320 I said, uh, Terry Luna has done. That's over UM Celsius. 0:08:12.400 --> 0:08:14.960 What's going on with Celsius? So UM. As I've said before, 0:08:15.360 --> 0:08:18.239 maybe there's a chance you get some of your money 0:08:18.280 --> 0:08:21.480 back from Celsius if you're really lucky. UM. They are 0:08:21.560 --> 0:08:25.200 working with UM, you know, bankruptcy attorneys right now to 0:08:25.240 --> 0:08:28.840 try to wind this down. UM, there's a potential that 0:08:28.960 --> 0:08:30.920 you might get some money back. I wouldn't hold your 0:08:30.920 --> 0:08:33.800 breath over it. But we saw this week f t 0:08:34.320 --> 0:08:38.200 X Exchange that has basically come into kind of be 0:08:38.280 --> 0:08:42.920 like the FED. They're like back stopping all these crypto institutions. UM. 0:08:43.000 --> 0:08:46.679 They looked at Celsius and they made some shocking claims 0:08:46.840 --> 0:08:48.400 that you may not like. I want to tell you 0:08:48.440 --> 0:08:52.000 what that is. UM, But they also stepped into back 0:08:52.080 --> 0:08:58.760 stop another really big, actually two really big other crypto 0:08:58.800 --> 0:09:02.960 companies that are getting hit. And you won't believe the 0:09:03.000 --> 0:09:05.720 deal they made for this. I mean it is insane. 0:09:06.679 --> 0:09:08.400 I guess this is what you get into bear market. 0:09:08.520 --> 0:09:10.600 Maybe you can follow f t x's lead. I'll tell 0:09:10.600 --> 0:09:12.960 you what that is what they said about Celsius. I'm 0:09:13.000 --> 0:09:15.720 gonna tell you about the other deals they've just made. UM, 0:09:15.760 --> 0:09:17.440 And I got a whole lot more coming up. You're 0:09:17.440 --> 0:09:19.280 listening to the Mark mo Show, talking of course about 0:09:19.280 --> 0:09:24.520 the decentralized revolution, talking about bitcoin, cryptocurrencies and breaking down 0:09:24.520 --> 0:09:26.240 the play by place so you can take advantage of it. 0:09:26.400 --> 0:09:28.280 We'll be back with all that and more in a minute. 0:09:28.320 --> 0:09:31.000 Don't go away, all right, Welcome back. You are listening 0:09:31.000 --> 0:09:34.120 to the Mark Moa Show. We're talking about the decentralized revolution, 0:09:34.120 --> 0:09:36.920 the world that's changing before our very eyes, being led 0:09:36.960 --> 0:09:40.520 by the catalyst of bitcoin and cryptocurrencies. We're talking about 0:09:40.600 --> 0:09:45.920 the great unwind, the great unwind, which is uh, the 0:09:46.040 --> 0:09:48.559 leverage in the system melting down. I went through that. 0:09:48.600 --> 0:09:50.080 I'm not going to go back through that again, but 0:09:50.120 --> 0:09:53.480 I was saying that f t X, which is led 0:09:53.520 --> 0:09:56.760 by Sam Bankman Freed, he's kind of stepped up to 0:09:56.840 --> 0:10:01.320 become like the Federal Reserve back stop, the Federal reserves, 0:10:01.360 --> 0:10:04.360 the backstop for the banks. So um previous to the 0:10:04.360 --> 0:10:06.640 feder Reserve in the late eighteen hundreds of United States, 0:10:06.800 --> 0:10:09.880 we had an era known as free banking, and you 0:10:09.920 --> 0:10:11.559 have all these different banks popping up, and each bank 0:10:11.600 --> 0:10:14.079 would have their own currency, and they're going they're going 0:10:14.160 --> 0:10:16.440 bust all the time, and so the Federal Reserve was 0:10:16.440 --> 0:10:19.400 created to say, hey, we'll backstop these banks, so if 0:10:19.400 --> 0:10:21.000 they go bust, all the people that have their money 0:10:21.000 --> 0:10:23.320 there don't lose at all. Um, we'll come in and 0:10:23.320 --> 0:10:25.840 we'll back stop them. Now that's a whole different story. 0:10:25.840 --> 0:10:28.640 I'm not gonna get super deep into that, but f 0:10:28.800 --> 0:10:31.080 TX is doing something similar where now they're coming and 0:10:31.080 --> 0:10:33.600 they're back stopping a lot of these companies going down. 0:10:33.640 --> 0:10:37.320 So celsius Um, they were potentially going to do a 0:10:37.360 --> 0:10:40.960 deal with celsius to backstop it that maybe at least 0:10:41.000 --> 0:10:43.000 help some of the investors get their money back or 0:10:43.040 --> 0:10:45.520 something like that. And we saw this week that f 0:10:45.640 --> 0:10:49.440 t X passed on a deal to purchase celsius due 0:10:49.480 --> 0:10:52.640 to a deficient balance sheet. What does that mean? Deficient 0:10:52.679 --> 0:10:55.760 balance sheet? Well, they didn't like. They didn't like what 0:10:55.760 --> 0:10:58.440 they saw when they pulled back the covers. It says 0:10:58.559 --> 0:11:04.240 uh FTX passed on to purchase leaguered crypto lenders celsius Um, 0:11:04.280 --> 0:11:08.720 but walked away on account of a two billion dollar 0:11:08.960 --> 0:11:13.520 hole in the lender's balance sheet. A two billion dollar hole. 0:11:15.040 --> 0:11:17.199 Where did that two billion dollars go? Well, a lot 0:11:17.200 --> 0:11:19.400 of it was just wiped out in market gap Um, 0:11:19.440 --> 0:11:24.280 there's rumors that potentially the founder of Celsius, Alex Maschinski, 0:11:24.440 --> 0:11:27.680 might have been siphoning money away. UM. I don't know 0:11:27.679 --> 0:11:30.319 if I want to feed into these allegations because I 0:11:30.320 --> 0:11:32.480 don't really have any proof on it right now. But 0:11:32.559 --> 0:11:35.199 we do know that FTX is backstopping a lot of companies. 0:11:35.200 --> 0:11:37.360 I'm gonna go through a couple of them right now. UM, 0:11:37.400 --> 0:11:40.280 but it doesn't look like they're gonna do with Celsius. 0:11:40.360 --> 0:11:42.400 They walked away because of a two billion dollar hole. 0:11:42.520 --> 0:11:45.679 So again, if you have money there, there's a chance 0:11:45.760 --> 0:11:48.360 you might get some back. Now. I think the way 0:11:48.360 --> 0:11:50.199 that I've been understanding this is there's two ways you 0:11:50.200 --> 0:11:52.040 could hold money on Celsius. One you could have it 0:11:52.040 --> 0:11:54.480 with a loan, you could have it earning yield, or 0:11:54.720 --> 0:11:59.040 they could just be doing custody. If you're only having 0:11:59.080 --> 0:12:02.280 money as cut study, then I think you might have 0:12:02.320 --> 0:12:04.360 a better than average chance of Well, you get the 0:12:04.360 --> 0:12:07.000 money first, if there's any money to go to anybody, 0:12:07.200 --> 0:12:09.679 I think you'll get the money there first. And then 0:12:09.679 --> 0:12:11.760 if you have money in the yield products and them 0:12:11.920 --> 0:12:15.840 lend products, then I think you're an unsecured creditor and 0:12:16.240 --> 0:12:18.280 you'll probably last to get any money if there's any 0:12:18.280 --> 0:12:21.000 money left. Now, there's not gonna be enough money to 0:12:21.040 --> 0:12:24.000 go around for everybody, So the chance of getting money 0:12:24.000 --> 0:12:27.400 into those um is probably gonna be slim if if 0:12:27.400 --> 0:12:30.080 not more than a few pennies on the dollar UM. 0:12:30.120 --> 0:12:32.800 So we'll see, we'll see, but we know that Unfortunately 0:12:33.080 --> 0:12:36.080 f t X walked away because of a two billion 0:12:36.120 --> 0:12:40.240 dollar hole. But that's not the same for everybody. Now. 0:12:40.280 --> 0:12:43.080 F t X actually has been talking to multiple companies, 0:12:43.800 --> 0:12:47.680 one of which is another company called Block five, and 0:12:47.720 --> 0:12:50.760 so Block five is maybe one of the other really 0:12:50.800 --> 0:12:52.880 big companies in the United States that was offering the 0:12:52.920 --> 0:12:56.880 same sort of products as a Celsius Both. You could 0:12:56.920 --> 0:12:59.240 give them their bit, your bitcoin or cryptocurrencies, and they'd 0:12:59.320 --> 0:13:01.680 give you a yield on it and give you interest 0:13:02.240 --> 0:13:04.920 four eight percent something like that. Now, a lot of 0:13:04.920 --> 0:13:06.959 people who used to ask me about these and I 0:13:07.000 --> 0:13:10.400 would always tell them the same thing. Look, as a 0:13:10.440 --> 0:13:15.640 real investor, we want something known as asymmetric opportunities. Asymmetric 0:13:15.720 --> 0:13:18.000 means symmetric would means the same on both means the 0:13:18.000 --> 0:13:21.240 same upside and the same downside. I want asymmetric opportunities. 0:13:21.240 --> 0:13:23.200 I want something that has way more upside than it 0:13:23.200 --> 0:13:25.880 has downside. So with bitcoin today, I'm not gonna go 0:13:25.880 --> 0:13:29.240 through the math, but I believe bitcoin has an eight 0:13:29.800 --> 0:13:33.319 x e d x upside. It can go up eighty 0:13:33.320 --> 0:13:36.240 times pretty easily, in my opinion, but it could go 0:13:36.360 --> 0:13:38.960 down to zero, so it has a one x downside, 0:13:39.040 --> 0:13:41.000 could go to zero one x down with an a 0:13:41.160 --> 0:13:44.280 d x up see how it's asymmetric. I like that. 0:13:45.000 --> 0:13:47.760 But unfortunately, when you're using platforms like Celsius or block 0:13:47.800 --> 0:13:51.600 fire or whatever, it was the opposite because now I 0:13:51.679 --> 0:13:57.959 had a hundred percent risks. As we're finding out Celsius, 0:13:58.000 --> 0:13:59.480 you may not get your money back. I had a 0:13:59.640 --> 0:14:04.160 hundred percent risk to make four or eight percent or 0:14:04.160 --> 0:14:07.800 eight whatever it is. So I'm risking a hundred to 0:14:07.920 --> 0:14:11.160 make eight. So I don't like those odds. I want 0:14:11.160 --> 0:14:13.520 it the other way. I want to risk eight to 0:14:13.559 --> 0:14:15.520 make a hundred, not risk a hundred to make eight. 0:14:15.559 --> 0:14:17.319 And that's exactly why I haven't been a big fan 0:14:17.360 --> 0:14:20.240 of those products. And here we are. Block five is 0:14:20.280 --> 0:14:23.200 in the same boat again, caught up in the great unwind, 0:14:23.240 --> 0:14:28.840 too much leverage, tied together. But um, after weeks and 0:14:28.880 --> 0:14:32.200 weeks and weeks of deliberation. It looks like there's a 0:14:32.240 --> 0:14:34.600 deal that actually is going to happen for Block five. 0:14:34.680 --> 0:14:36.800 So good news if you have money trapped on Block five. 0:14:38.040 --> 0:14:41.480 It looks like the deal that f t X worked 0:14:41.480 --> 0:14:45.040 out with Block five is going to buy them out 0:14:45.120 --> 0:14:51.640 at a n discount to their last money raise. So 0:14:51.880 --> 0:14:56.040 UM companies like Block five, they raise money, pull up 0:14:56.080 --> 0:14:59.760 the exact amount so UM. You know these companies, they 0:14:59.840 --> 0:15:03.000 raise is money and as they go up in value, 0:15:03.080 --> 0:15:06.000 they continue to raise money but at a higher valuation, 0:15:06.040 --> 0:15:09.320 which is exactly what happened. So ft X has agreed 0:15:09.360 --> 0:15:14.040 to provide two hundred and fifty million dollar emergency credit 0:15:14.080 --> 0:15:20.360 line to Block five UM, but at a very very 0:15:20.400 --> 0:15:23.560 reduced valuation. So it says ft X is expected to 0:15:23.560 --> 0:15:26.920 pay roughly twenty five million one source set, which is 0:15:28.400 --> 0:15:33.240 below Block five's last private valuation, which was valued at 0:15:33.320 --> 0:15:38.080 four point eight billion. So block fire recently raised money, 0:15:38.280 --> 0:15:41.239 they raised it at a four point eight billion dollar valuation, 0:15:42.520 --> 0:15:44.720 and today f t X is going to buy it 0:15:44.760 --> 0:15:50.520 for twenty five million, which is off of UM what 0:15:50.680 --> 0:15:56.040 their last round was at UM. So that's a big discount. 0:15:56.240 --> 0:15:59.760 Now why would they do that? Well, it appears that 0:16:00.000 --> 0:16:05.720 what happened is block Fi agreed to maybe sacrifice themselves 0:16:05.720 --> 0:16:10.720 and all the investors so that the people that the 0:16:11.000 --> 0:16:13.280 customers of block fire, the people have money on block fight, 0:16:13.360 --> 0:16:17.200 could maybe get some of that money back. Other deals 0:16:17.200 --> 0:16:20.960 that they had potentially UM looked at. According to sources, 0:16:21.080 --> 0:16:24.280 UM were trying to keep the equity of the investors 0:16:24.280 --> 0:16:28.640 in place, but sacrifice customer deposits. But the rumors say 0:16:28.680 --> 0:16:31.120 that FTX that no, no, no, no, We're going to 0:16:31.200 --> 0:16:34.800 help the customers who have deposits. But all the investors 0:16:35.640 --> 0:16:38.400 they invested into a bad company and they're out. Now. 0:16:38.520 --> 0:16:42.120 Look a lot of people in the bitcoin space are 0:16:42.600 --> 0:16:45.240 happy about this, and we told you so. You never 0:16:45.240 --> 0:16:47.680 should have done that. I would never take joy in 0:16:47.760 --> 0:16:49.760 watching somebody else have pain. I'm not going to take 0:16:49.760 --> 0:16:52.880 any joy in that. UM. You know, these investors love 0:16:52.920 --> 0:16:55.880 and thought they were making good investments, but in a 0:16:55.920 --> 0:16:58.400 situation like this, when the markets crashed, I mean, everything 0:16:58.400 --> 0:17:02.440 goes down, they made bad choices. I'm guessing most of 0:17:02.440 --> 0:17:04.600 them were pretty uh. I know some of the top 0:17:04.640 --> 0:17:07.560 guys were very experienced investors. I'm sure they didn't allocate 0:17:07.600 --> 0:17:09.320 more than they could afford to lose. I'm sure most 0:17:09.359 --> 0:17:12.080 of them are going to be tanked. Um so maybe 0:17:12.119 --> 0:17:14.520 having the investors lose the money and having the money 0:17:14.560 --> 0:17:16.760 accrued to the customers is the best source of let 0:17:16.800 --> 0:17:19.000 me know what you think. Of course, get at me 0:17:19.160 --> 0:17:21.680 on social media. Just at one Mark Moss, it's the 0:17:21.760 --> 0:17:24.760 number one Mark Moss. Hit me up and let me 0:17:24.800 --> 0:17:27.480 know what you think about that. But this is just 0:17:27.520 --> 0:17:30.399 a drop in the bucket. There's even bigger ones happening. 0:17:30.400 --> 0:17:32.000 As a matter of fact, the next one I'm gonna 0:17:32.000 --> 0:17:34.320 talk about isn't even bigger liquidation, which is then going 0:17:34.359 --> 0:17:39.800 into potentially the biggest one in the entire bitcoin cryptocurrency 0:17:39.840 --> 0:17:43.480 market space, and it could be bad for the short 0:17:43.600 --> 0:17:45.600 term price. I'm gonna talk about that and more in 0:17:45.640 --> 0:17:47.320 a minute. You're listening to the Mark mo Show talking 0:17:47.320 --> 0:17:51.240 about bitcoin cryptocurrency, is talking about the decentralized revolution, talking 0:17:51.280 --> 0:17:55.880 about the great unwind, what's happening, how you can observe 0:17:55.920 --> 0:17:58.240 it navigated if you're caught up in it and know 0:17:58.280 --> 0:18:00.199 what to expect. Next. I'm gonna cover all that and 0:18:00.240 --> 0:18:02.199 more when I get back in a minute. Uh So, 0:18:02.280 --> 0:18:04.760 don't go away, all right, Welcome back. You are listening 0:18:04.800 --> 0:18:08.400 to the markma Show. And we're talking about the decentralized revolution. 0:18:08.720 --> 0:18:11.159 We are talking about the way the world is changing 0:18:11.440 --> 0:18:13.280 right before our very eyes, of course, being led through 0:18:13.280 --> 0:18:18.479 bitcoin and cryptocurrencies, through technology, looking at politics, finance and 0:18:18.520 --> 0:18:21.640 technology to understand what the heck is going on? What's 0:18:21.680 --> 0:18:23.879 up with these prices of gasoline and food? Why are 0:18:23.880 --> 0:18:26.520 the markets dropping? And right now we're talking about what 0:18:26.640 --> 0:18:29.679 is going on with the cryptocurrency and bitcoin space. And 0:18:29.680 --> 0:18:33.240 I'm calling it something I've been calling it the Great liquidation, 0:18:33.280 --> 0:18:36.440 the Great unwind. And so I was talking about how 0:18:36.640 --> 0:18:38.879 this leverage, all the leverage have built up in the 0:18:38.880 --> 0:18:42.080 system that allowed to grow really fast is now unwinding 0:18:42.400 --> 0:18:45.080 and that leverage is now caused it to crash equally 0:18:45.119 --> 0:18:47.200 as fast. So we're talking about how f t X 0:18:47.400 --> 0:18:49.960 is kind of like the FED acting as similar to 0:18:50.000 --> 0:18:53.399 a FED, where they are UM the lender of last resort, 0:18:53.440 --> 0:18:56.439 their backstopping UM. Some of these companies that are going down, 0:18:56.480 --> 0:18:59.960 they looked at Celsius, they said heck no. He said, 0:19:00.000 --> 0:19:02.520 heck no, there's a two billion dollar hole. We don't 0:19:02.520 --> 0:19:04.240 want to dump our money into a two billion dollar hole. 0:19:04.520 --> 0:19:06.199 I don't blame him. I wouldn't want to lose two 0:19:06.200 --> 0:19:08.119 billion dollars if I had it UM. I don't want 0:19:08.160 --> 0:19:10.600 to lose two dollars, much less two billion UM. So 0:19:10.640 --> 0:19:14.399 they said no to that UM, but they did say 0:19:14.840 --> 0:19:18.560 yes to UH to block five, so it looks like 0:19:18.560 --> 0:19:21.040 they are helping out block five. So good news, good news, 0:19:21.080 --> 0:19:22.600 bad news depend on where you have your money, if 0:19:22.640 --> 0:19:26.639 you have any money at all, UM and what's next. 0:19:26.680 --> 0:19:31.200 So now there's another one crypto exchange, coin Flex. Coin 0:19:31.280 --> 0:19:34.239 Flex has um paused withdraws, so now they won't let 0:19:34.240 --> 0:19:36.320 you get your money off of their Mark Lamb, the 0:19:36.359 --> 0:19:40.640 CEO of coin flex, said that withdraws will probably not 0:19:41.080 --> 0:19:46.439 restart as they had originally hoped. UM to fix the 0:19:46.560 --> 0:19:49.480 forty seven million dollar hole much better than two billion 0:19:49.480 --> 0:19:52.840 on celsius forty seven million dollar hole on coin Flexes 0:19:52.840 --> 0:19:56.280 balance sheet. The company is issuing a token called Recovery 0:19:56.440 --> 0:20:01.640 Value us D and enticing investors with a interest rate. 0:20:02.920 --> 0:20:07.520 Mm hmm. Now that sounds just like the problem that 0:20:07.640 --> 0:20:11.200 caused all of this in the first place. So it 0:20:11.400 --> 0:20:15.159 started with terror Luna and Terra. Luna was a stable 0:20:15.200 --> 0:20:20.080 coin that offered you a rate, And what are what 0:20:20.160 --> 0:20:23.520 is coin flex proposing? They're proposing to create something called 0:20:23.600 --> 0:20:27.240 recovery value U s D an entice, which is a 0:20:27.240 --> 0:20:29.160 stable coin that they're going to create out of thin air, 0:20:29.640 --> 0:20:34.840 and they're going to pay you interest rate on that. One. 0:20:35.080 --> 0:20:38.840 I'm not sure. Well, a couple of things. One, I'm 0:20:38.880 --> 0:20:40.960 not sure how the heck they're allowed to do that. 0:20:41.000 --> 0:20:42.520 You would think the SEC would step in and go, 0:20:42.560 --> 0:20:44.600 wait a minute, this is insane. You can't do the 0:20:44.600 --> 0:20:46.200 exact same thing that caused the whole problem in the 0:20:46.200 --> 0:20:48.800 first place. That's one. Two. I can't believe that they 0:20:48.800 --> 0:20:50.639 would even try. I mean, who the heck is this 0:20:50.720 --> 0:20:52.880 Mark Lamb CEO. What does he think he's doing. Wouldn't 0:20:52.880 --> 0:20:55.360