WEBVTT - BEAR MARKET NFTs STILL WIN w/ KALAH HALEY 0:00:00.080 --> 0:00:02.960 I'm Will Lucas and this podcast, if you haven't heard, 0:00:03.160 --> 0:00:05.960 has been nominated for an inn Double A CP Image Award, 0:00:06.000 --> 0:00:08.520 and I need your help. The Double A CP has 0:00:08.520 --> 0:00:11.559 recently opened up the opportunity for the public. That means 0:00:11.560 --> 0:00:15.040 you to weigh in and vote on this category. Head 0:00:15.040 --> 0:00:17.840 over to vote dot Double A CP Image Awards dot net. 0:00:18.160 --> 0:00:22.079 Scroll to the Outstanding News and Information Podcast category and 0:00:22.160 --> 0:00:24.799 vote for Black Tech, Green Money. It's not often that 0:00:24.840 --> 0:00:28.200 we see a podcast for us by US, which highlights 0:00:28.200 --> 0:00:32.680 the stories of black innovators, technologists, venture capitalists and angel investors, 0:00:32.960 --> 0:00:36.560 scientists and engineers with this biggest spotlight. So I'm asking 0:00:36.600 --> 0:00:38.400 for you to take a moment of your day and 0:00:38.520 --> 0:00:42.400 vote for us now. So I think this is where 0:00:42.440 --> 0:00:44.520 I think a lot of people can have a pretty 0:00:44.520 --> 0:00:49.080 bad misconception. The base layer technology that we're talking about 0:00:49.120 --> 0:00:53.440 is blockchain technology. The first use case, the first the 0:00:53.479 --> 0:00:59.160 first born child use case of blockchain technology is cryptocurrency. 0:00:59.240 --> 0:01:02.240 So you usually when I'm having this kind of conversation, 0:01:02.760 --> 0:01:05.479 I love to kind of have a first principles conversation 0:01:05.560 --> 0:01:09.880 around the use case and the efficacy of blockchain technology. 0:01:10.640 --> 0:01:18.040 Cryptocurrency is a use case of block pain. I'm will 0:01:18.120 --> 0:01:22.320 Luca's Mrs Black Tech cream Money. I'm gonna chew this 0:01:22.360 --> 0:01:23.840 you to some of the biggest names, some of the 0:01:23.880 --> 0:01:27.199 brightest minds and brilliant ideas. I feel black and building, 0:01:27.280 --> 0:01:30.319 but simply using tech to secure your back. This podcast 0:01:30.360 --> 0:01:38.240 is for you. Kay is an n f T strategist 0:01:38.360 --> 0:01:41.119 and founder at sting Rock Media, which helps companies all 0:01:41.160 --> 0:01:45.080 over the world craft cultural experiences and events. A frequent 0:01:45.120 --> 0:01:47.720 speaker on n f T related topics, Kayla is the 0:01:47.800 --> 0:01:52.600 prolific investor and trusted voice on blockchain technologies. I spoke 0:01:52.640 --> 0:01:54.919 with Kayla about the current n f T bear market 0:01:54.920 --> 0:01:57.600 and investor outlook and what's happening in the world of 0:01:57.720 --> 0:02:00.800 n f T s that gives investors like her hope. 0:02:01.080 --> 0:02:05.160 I think number one is there's some really interesting examples 0:02:05.280 --> 0:02:08.080 of really large brands out there that are doing a 0:02:08.120 --> 0:02:11.760 fantastic job um. Two of which would be like Reddit, 0:02:12.360 --> 0:02:16.880 um and uh Starbucks. And the interesting thing I would 0:02:16.880 --> 0:02:20.760 say that they've done UM that's unique about their n 0:02:20.840 --> 0:02:22.520 f T programs is that they're not even calling them 0:02:22.600 --> 0:02:26.160 n f T s. They call them uh digital collectibles. 0:02:26.160 --> 0:02:30.000 They're calling them it's just you know, uh Starbucks just 0:02:30.040 --> 0:02:33.640 calls it their new like Odyssey rewards program UM. And 0:02:33.720 --> 0:02:36.720 so I think that what a lot of groups are 0:02:36.720 --> 0:02:40.600 doing right now is there they a lot of fintech solutions, 0:02:40.639 --> 0:02:43.040 a lot of big brands. They have not slowed down 0:02:43.680 --> 0:02:48.840 on adopting the technology UM, but they have tweaked the 0:02:48.840 --> 0:02:51.720 way that they bring that technology to market UM and 0:02:51.760 --> 0:02:55.080 what they're calling it. The technology is the same. People 0:02:55.120 --> 0:02:57.239 just don't know that they're using it. And so I 0:02:57.320 --> 0:02:59.400 think that's one of the big differences that I've been 0:02:59.400 --> 0:03:01.560 seeing in the LATS a couple of months, is how 0:03:01.639 --> 0:03:04.560 some of the big brands have been UM using mass 0:03:04.560 --> 0:03:08.200 adoption with with blockchain and n f T. Can you 0:03:08.280 --> 0:03:10.840 make a distinction because I've heard you use n f 0:03:10.880 --> 0:03:13.600 T business before and like your tweets, you've you've you've 0:03:13.639 --> 0:03:16.680 used that, you've used that phrase. Can you describe the 0:03:16.680 --> 0:03:18.679 difference between like an n f T and n f 0:03:18.760 --> 0:03:21.040 T project and an n f T business and if 0:03:21.040 --> 0:03:25.640 there are others, can you describe the differences between those? Yeah, 0:03:26.200 --> 0:03:28.680 So I think, like you know, I just described a 0:03:28.680 --> 0:03:33.560 couple of companies that are natively web two companies that 0:03:33.600 --> 0:03:36.480 are adopting blockchain technology. So they're kind of in this 0:03:36.560 --> 0:03:42.000 like Web two point five UM space Web three companies 0:03:42.240 --> 0:03:46.040 are companies that have started from the community first. So 0:03:46.120 --> 0:03:48.680 a lot of times UM web two companies tend to 0:03:48.720 --> 0:03:51.280 be like products driven, and so they'll create their product, 0:03:51.320 --> 0:03:54.600 they'll create their m v P what's their minimal viable product, 0:03:54.680 --> 0:03:57.120 and then they uh, you know, get a bunch of 0:03:57.200 --> 0:04:01.240 VC money and go, you know, uh customer acquisition right 0:04:01.720 --> 0:04:05.640 UM web three companies UM. Some that I might throw 0:04:05.640 --> 0:04:08.200 as an example would be board A Yacht Clubs, so 0:04:08.280 --> 0:04:12.400 like you Go Labs, UM Artifact which then got acquired 0:04:12.440 --> 0:04:16.839 by Nike. UM are all community based companies. So they 0:04:16.880 --> 0:04:20.599 started as a community, the community bought the token, the 0:04:20.720 --> 0:04:23.320 n f T, and that was the startup. Those are 0:04:23.320 --> 0:04:25.880 the startup finances for the company to continue to build 0:04:25.880 --> 0:04:28.360 and develop as a company. UM. So it's really just 0:04:28.440 --> 0:04:31.520 kind of the ethos of like how those two world 0:04:31.640 --> 0:04:34.880 kind of use the technology. UM. I will say though 0:04:34.880 --> 0:04:38.160 that there are the vast majority of n f T 0:04:38.320 --> 0:04:42.599 companies out there are not great operators. So they tend 0:04:42.640 --> 0:04:46.160 to get really excited and get the community really excited, 0:04:46.320 --> 0:04:49.200 and um everyone buys the token and then they don't 0:04:49.200 --> 0:04:52.360 have any operations. They don't actually have a value proposition. 0:04:52.400 --> 0:04:54.840 They don't actually have a product that they that they 0:04:54.880 --> 0:04:57.880 want to continue to develop on UM. And so that's 0:04:57.880 --> 0:05:00.840 where a lot of Web three n f T companies 0:05:00.880 --> 0:05:04.640 specifically kind of stumble and fall. Um what typically, what 0:05:04.720 --> 0:05:09.040 typically do they have that makes people buy in? Celebrity status, 0:05:09.279 --> 0:05:11.600 you know, great design, great art, like, what what makes 0:05:11.600 --> 0:05:16.919 people buy into these things that have very bad business operations? Yeah? 0:05:17.000 --> 0:05:19.480 I think that UM. A lot of these folks are marketers, 0:05:19.760 --> 0:05:22.920 so they're really talented at marketing. They're really they're really talented. 0:05:23.120 --> 0:05:28.040 The artwork UM is really attractive. UM. People love being 0:05:28.040 --> 0:05:29.880 a part of something that other there's kind of this 0:05:29.920 --> 0:05:33.240 like indie culture of folks not you know, oh I 0:05:33.279 --> 0:05:35.720 know about I'm an early adopter, right n f T 0:05:35.880 --> 0:05:38.560 Web three people love being like early adopters. So they 0:05:38.560 --> 0:05:40.919 love being able to like be on the bleeding edge 0:05:41.000 --> 0:05:45.479 of the next trend. UM. And so I think that 0:05:45.480 --> 0:05:49.000 that in combination with the fact that people who if 0:05:49.000 --> 0:05:50.840 they wanted to resell the n f T, they can 0:05:50.839 --> 0:05:53.000 make money off of it. So you add those two 0:05:53.040 --> 0:05:56.960 components together and making money culture tech uh, and it's 0:05:57.000 --> 0:06:00.599 kind of a winning recipe. For people to to to 0:06:00.720 --> 0:06:03.719 to buy into something. Uh, the problem is that they've 0:06:03.760 --> 0:06:06.640 lost a lot of money along the way. Damn. Can 0:06:06.720 --> 0:06:11.440 you describe more about the projects? What typically is a 0:06:11.520 --> 0:06:16.359 thread between projects that are successful, that have that gave 0:06:16.400 --> 0:06:20.040 them unique or innovative, you know, features that allowed them 0:06:20.080 --> 0:06:22.680 to be successful other than the operation, which we'll talk 0:06:22.720 --> 0:06:27.960 about mm hmm, yeah, great questions. So I think that, um, 0:06:28.040 --> 0:06:30.520 some I call them at st Rock, we call them 0:06:30.600 --> 0:06:33.920 value engines, And so you have to be really clear 0:06:34.000 --> 0:06:37.520 on what exactly you're offering. What is the value proposition 0:06:37.600 --> 0:06:40.719 for Sometimes you have some artists out there that it's 0:06:40.760 --> 0:06:43.039 literally just art and that is the value problem. And 0:06:43.040 --> 0:06:44.800 you've got to have the art and that's it and 0:06:44.839 --> 0:06:48.400 it's beautiful. UM. And you know, the interesting thing is is, 0:06:48.440 --> 0:06:49.840 as the market has kind of had a bit of 0:06:49.880 --> 0:06:53.640 a downturn, art projects have performed better and maintained their 0:06:53.720 --> 0:06:57.040 value better than the projects that promised you know, this 0:06:57.240 --> 0:07:01.080 really fantastic road maps. UM. So that's that's been a 0:07:01.080 --> 0:07:05.400 bit of an ironic and an interesting thing to see. UM. 0:07:05.400 --> 0:07:09.200 But other than that, UM, I think that basically you're asking, like, 0:07:09.320 --> 0:07:12.760 what makes um, some of these projects successful, some some 0:07:12.760 --> 0:07:16.200 some successful projects. UM. I think it also comes down 0:07:16.240 --> 0:07:18.760 to the funding and the runway. Uh. Some of these 0:07:18.760 --> 0:07:22.480 projects raised a lot of money they UM through the 0:07:22.600 --> 0:07:24.600 n f T, and they had the time to go 0:07:24.640 --> 0:07:27.679 and acquire like talent to help them figure it out. 0:07:27.920 --> 0:07:29.720 So some of them just had the runway to go, 0:07:29.840 --> 0:07:33.800 like figure out what they were going to offer UM doodles, 0:07:33.840 --> 0:07:38.160 for example, they hired uh, they hired uh uh Farrell 0:07:38.320 --> 0:07:42.080 as their creative their chief creative officer UM. And so 0:07:42.840 --> 0:07:47.240 between Doodles, you go labs, UM artifacts some of these 0:07:47.240 --> 0:07:50.080 other big projects, they just simply had extra funding to 0:07:50.240 --> 0:07:52.440 like help them figure out what they're gonna do. Some 0:07:52.480 --> 0:07:56.080 of them have moved really aggressively into gaming because I 0:07:56.080 --> 0:07:57.960 think that they think that that's like a really viable 0:07:58.000 --> 0:08:01.000 business model going into the new year. When you are 0:08:01.040 --> 0:08:03.840 looking at the team, who are who's building a product, 0:08:04.040 --> 0:08:08.080 a project, even um building a community, what are you 0:08:08.160 --> 0:08:10.680 looking for as an investor in n f T, Like 0:08:10.760 --> 0:08:12.920 what kind of things give you signals that say, you 0:08:12.920 --> 0:08:15.320 know what, this is likely going to be around a 0:08:15.320 --> 0:08:20.320 while because these things are in place. Mm hmm. Yeah. 0:08:20.400 --> 0:08:22.880 Number one, the team has to be docks. And by docks, 0:08:22.960 --> 0:08:25.240 that just means they need to. They cannot be anonymous, 0:08:25.640 --> 0:08:27.320 and so you have to be able to do your 0:08:27.400 --> 0:08:29.600 due diligence to be able to look at Okay, great, 0:08:29.640 --> 0:08:31.920 let's look at this person's LinkedIn profile. Let's look at 0:08:32.280 --> 0:08:35.400 you know, what is their history of just part participating 0:08:35.400 --> 0:08:39.040 in this like overall ecosystem, um over over a period 0:08:39.040 --> 0:08:42.720 of time, so that's important. What's their background? UM? What 0:08:42.880 --> 0:08:45.040 experience do they have. They're saying they're going to bring 0:08:45.400 --> 0:08:48.800 a game, a metaverse game to market. Great, who on 0:08:48.840 --> 0:08:51.960 the team has actually done that before? Um? Those those 0:08:52.000 --> 0:08:53.600 are some of the things that you would do kind 0:08:53.600 --> 0:08:56.840 of during your own personal due diligence process. I'm looking 0:08:56.880 --> 0:09:01.040 at the community. How engaged is the community? Um? If 0:09:01.080 --> 0:09:04.319 they are hosting a Twitter spaces on Twitter? Great, how 0:09:04.320 --> 0:09:06.959 many people show up? How many people are engaged and 0:09:06.960 --> 0:09:10.920 are asking questions during that Twitter space? Um? Another thing 0:09:10.920 --> 0:09:14.160 would be to look at, um, you know, the team's important. 0:09:14.320 --> 0:09:17.120 Um Uh what is the value prop? What is the 0:09:17.160 --> 0:09:20.240 business model beyond the initial n f T sale? Because 0:09:20.280 --> 0:09:23.360 if I think that a lot of people who aren't 0:09:23.480 --> 0:09:25.440 attracted to n f T s and web three, they 0:09:25.440 --> 0:09:29.160 tend to be UM kind of like libertarian uh from 0:09:29.160 --> 0:09:33.160 a kind of political slant. Um in point of view, Um, 0:09:33.320 --> 0:09:35.600 they don't want to be the product, which is why 0:09:35.640 --> 0:09:38.240 they are happy to pay money up front, because they 0:09:38.240 --> 0:09:42.880 don't like traditional social media platforms and so. Um. The 0:09:42.960 --> 0:09:45.240 problem though is that again with some of these folks 0:09:45.280 --> 0:09:48.480 who are running these projects, they're not great operators. Um. 0:09:48.520 --> 0:09:50.160 All they know to do, all they know how to 0:09:50.160 --> 0:09:52.200 do is sell n f t s to people. They 0:09:52.200 --> 0:09:55.040 don't know how to create products. And therefore those same 0:09:55.040 --> 0:09:57.360 people that don't want to be the product realize that 0:09:57.400 --> 0:09:59.840 they end up being the product again because they're just 0:10:00.240 --> 0:10:02.800 selling more n f t s two people. This is 0:10:02.840 --> 0:10:07.960 so talk about the the value proposition because so often 0:10:08.080 --> 0:10:10.760 when we hear about value propositions, Hey, your n f 0:10:10.800 --> 0:10:13.120 T gets you in the door at this party, or 0:10:13.200 --> 0:10:15.440 it gets you, you know, a ticket to you know, 0:10:15.559 --> 0:10:17.880 meet me and have lunch face to face. Like what 0:10:17.960 --> 0:10:22.960 are better things of avengers? I shouldn't say better, Like 0:10:23.000 --> 0:10:25.560 what are other things of avengers that tickets to the 0:10:25.600 --> 0:10:28.439 party that n f t s you know, really unique 0:10:28.440 --> 0:10:34.680 opportunities have provided for those holders. Yeah. I think that Um, 0:10:34.720 --> 0:10:39.480 with some of these I think that a lot of Um. Again, Uh, 0:10:39.679 --> 0:10:42.079 the industry is so nascent right, and so a lot 0:10:42.120 --> 0:10:44.760 of those business models are still being ironed up. When 0:10:44.800 --> 0:10:47.400 we're talking to clients, were like, hey, look, n f 0:10:47.440 --> 0:10:49.079 T s are not a business I wrote a tweet 0:10:49.120 --> 0:10:50.880 about this too. Business n f T s are not 0:10:50.960 --> 0:10:53.319 a business model within themselves. You already have to have 0:10:53.360 --> 0:10:56.040 an established business model that n f T s can 0:10:56.080 --> 0:10:59.120 be an added value layer to something that's already pre 0:10:59.240 --> 0:11:01.440 existing you already. You need to know that the market 0:11:01.520 --> 0:11:04.080 is there. You need to know that the solutions that 0:11:04.080 --> 0:11:06.920 you provide are already there. UM. I'll give you an 0:11:06.920 --> 0:11:11.079 example of one that we actually did UM for an 0:11:11.200 --> 0:11:15.440 education higher education product UM. Essentially it was a membership 0:11:15.480 --> 0:11:18.400 pass by your n f T. I think it's not 0:11:18.600 --> 0:11:22.120 it's not too much different than UM, like a costco membership. 0:11:22.840 --> 0:11:25.880 We have a network of partners of UM, you know, 0:11:25.960 --> 0:11:29.720 online college, UM colleges around and universities around the country. 0:11:30.360 --> 0:11:34.840 UM all Tier six or Tier five or higher accreditation. 0:11:35.640 --> 0:11:37.839 They're in our network of schools that you can if 0:11:37.840 --> 0:11:40.760 you have our n f T pass, you get access 0:11:40.800 --> 0:11:43.240 to any of those schools you can enroll. Obviously you 0:11:43.280 --> 0:11:45.840 still have to apply and get in, but assuming that 0:11:45.840 --> 0:11:49.480 that happens, you get access to those college credits at 0:11:50.800 --> 0:11:54.760 off of what retail is and so um similar. So 0:11:54.800 --> 0:11:57.200 it's almost the idea if you're familiar with like Mark 0:11:57.240 --> 0:12:00.360 Cuban's Cost Plus Drugs or if you're familiar with obviously 0:12:00.440 --> 0:12:04.200 costco um it was like wholesale college online college courses 0:12:04.640 --> 0:12:08.680 and so that was like a very um it was 0:12:08.720 --> 0:12:12.880 a very tactical and practical um application of how you 0:12:12.920 --> 0:12:17.720 have a membership pass uh that then translates into real 0:12:17.760 --> 0:12:21.320 world savings for something that people want, which is, well, 0:12:21.360 --> 0:12:25.319 some people want a college degree. And so you touched 0:12:25.360 --> 0:12:27.079 on this a little bit about n F t Art 0:12:27.240 --> 0:12:29.800 and that's one you know, vertical inside the n f 0:12:29.880 --> 0:12:33.240 T space and it was super duper hot a year ago, 0:12:33.400 --> 0:12:38.079 eighteen months ago, or any time in that window. Where 0:12:38.080 --> 0:12:41.000 are we with just n F t art and beyond 0:12:41.120 --> 0:12:43.800 the ones that have communities behind them, it's just a 0:12:43.840 --> 0:12:47.600 pretty picture. Where are we today? Is there still value today? 0:12:48.120 --> 0:12:51.200 If I'm a designer and I'm just a designer, I 0:12:51.240 --> 0:12:54.080 may not be a community builder. Is there still value? 0:12:54.840 --> 0:12:56.400 Is it still worth it for me to go to 0:12:56.480 --> 0:13:01.520 open see and publish my thing. Well, with all of 0:13:01.559 --> 0:13:03.680 these things, you still have to build a community because 0:13:03.720 --> 0:13:05.199 it's we're at the end of the day, we're talking 0:13:05.240 --> 0:13:08.400 economics and we're talking supply and demand, and that's that's 0:13:08.440 --> 0:13:10.640 that's regardless of if you're an n f T artist. 0:13:10.960 --> 0:13:13.680 That's that those rules apply even just in the regular 0:13:13.679 --> 0:13:18.560 traditional art world as well. So UM, regardless of whatever 0:13:18.600 --> 0:13:20.960 you're offering to the world, there's gonna there has to 0:13:20.960 --> 0:13:24.920 be a buyer for it. So UM. So the the 0:13:25.520 --> 0:13:29.160 value prop for um for artists. And I think the 0:13:29.200 --> 0:13:32.000 reason why so many artists are attracted to n f 0:13:32.040 --> 0:13:36.120 T s is because of the royalty component. And so 0:13:36.160 --> 0:13:38.160 they're like, Okay, great, if I'm going to spend all 0:13:38.160 --> 0:13:40.520 my my time and energy creating this piece of art, 0:13:40.840 --> 0:13:42.200 I want to get as I want to be able 0:13:42.200 --> 0:13:46.160 to extract and capture as much value from it as possible. UM. 0:13:46.240 --> 0:13:49.559 And I think that that the smart contract, the royalties 0:13:49.600 --> 0:13:53.680 and perpetuity is what attracts so many artists. So I 0:13:53.800 --> 0:13:58.240 was having a conversation with a nonprofit um executive directors 0:13:58.559 --> 0:14:00.520 think of think of it in the way of you know, 0:14:00.600 --> 0:14:04.640 a zoo executive director or a metro park executive director, 0:14:04.679 --> 0:14:07.800 and they were they were wondering what the value of 0:14:07.840 --> 0:14:10.960 them could be with producing an n f T collection, 0:14:11.520 --> 0:14:14.320 and you know, doing research online and learning about this, 0:14:14.360 --> 0:14:16.880 you know, there's a there's an argument to there's no 0:14:17.120 --> 0:14:21.040 secondary value or very little secondary value of holding that 0:14:21.240 --> 0:14:23.480 n f T. Like, so, if if I'm buying the 0:14:23.600 --> 0:14:26.440 n f T to support sustainability at my local park, 0:14:27.200 --> 0:14:30.440 what is the value to the next person who may 0:14:30.640 --> 0:14:32.480 want to buy that thing? So? Can you talk about 0:14:32.520 --> 0:14:36.080 that concept and how to fix it? Yeah? So, so 0:14:36.160 --> 0:14:39.920 two things I would say. One is, if you are 0:14:40.120 --> 0:14:43.800 that type of organization or something like that, I'm actually 0:14:43.840 --> 0:14:47.120 a really big fan of. Instead of the organization, especially 0:14:47.120 --> 0:14:49.600 like a nonprofit, like actually did a talk about this 0:14:49.720 --> 0:14:52.520 at n f T n y C. Literally, My argument 0:14:52.600 --> 0:14:58.360 was that UM UM nonprofits should actually, instead of doing 0:14:58.400 --> 0:15:02.960 their own projects, they should actually partner with artists. They 0:15:03.200 --> 0:15:06.880 actually partner with folks who have a value prop that 0:15:06.960 --> 0:15:11.440 extends beyond visiting you know, the rescue center or whatever 0:15:11.440 --> 0:15:16.000 the case may be. UM because instead of like having 0:15:16.000 --> 0:15:17.880 their own n f T project or perhaps doing it 0:15:18.000 --> 0:15:22.400 in collaboration, now that that nonprofit entity can have their 0:15:22.440 --> 0:15:27.000 wallet address written into the primary and secondary UM sales 0:15:27.400 --> 0:15:30.560 of the of the chain in perpetuity UM being a 0:15:30.600 --> 0:15:35.400 partner to organizations that do have a secondary uh driver 0:15:35.640 --> 0:15:37.880 for for what's going to drive the secondary sales. So 0:15:37.920 --> 0:15:41.080 that's actually that's that's typically the strategy that I actually 0:15:41.280 --> 0:15:44.240 um usually talked. Could you give an example of what 0:15:44.320 --> 0:15:46.840 that might look like. Yeah, Um, there's an n f 0:15:46.880 --> 0:15:49.240 T called I'll give you a good example. I'll give 0:15:49.240 --> 0:15:51.560 an example one that I I used literally use this 0:15:51.840 --> 0:15:54.320 at n f T MC UM a case study of 0:15:54.400 --> 0:15:57.960 this one project called Flower Girls, um. And they are 0:15:58.600 --> 0:16:01.000 it's an artist. Her name is Eva something I forgot 0:16:01.040 --> 0:16:03.840 her name. UM. So she comes from the traditional art world. 0:16:03.920 --> 0:16:07.120 She has a huge community already. UM. Part of the 0:16:07.160 --> 0:16:09.560 project is they wanted to make sure that they were 0:16:09.560 --> 0:16:12.000 giving back to the community, so they give to women 0:16:12.160 --> 0:16:15.280 and girls shelters. Um. And so as a part of 0:16:15.320 --> 0:16:18.640 they have a gamified component where they have like you know, 0:16:18.720 --> 0:16:20.080 I don't want to bore you to death, but it's 0:16:20.080 --> 0:16:22.840 like they have seeds and these different it's like very garden, 0:16:23.280 --> 0:16:25.840 you know, themed is the n f T. And so 0:16:25.880 --> 0:16:27.840 they have like this game ified thing where you plant 0:16:27.880 --> 0:16:30.560 your seeds and water the seeds and watch the flowers 0:16:30.600 --> 0:16:33.840 grow and this whole thing. Right, Um, But as people 0:16:34.160 --> 0:16:36.560 get into the game and they're playing it and they're 0:16:36.600 --> 0:16:38.600 treating their n f t s back and forth. That's 0:16:38.640 --> 0:16:42.920 the volume that's happening on the secondary um. And because 0:16:42.920 --> 0:16:45.200 of the partnership they have with like the women shelters 0:16:45.240 --> 0:16:49.080 and things like that, those nonprofit profits are are benefiting 0:16:49.560 --> 0:16:52.160 um from all of the transactions happening on that on 0:16:52.240 --> 0:16:57.520 that smart contract. So um, you had tweeted six months 0:16:57.560 --> 0:17:00.280 ago maybe about you were you were at Basil at 0:17:00.680 --> 0:17:02.840 art Basil, and you were talking about you wouldn't you 0:17:02.840 --> 0:17:05.399 wouldn't believe that the world of crypto is falling apart 0:17:05.640 --> 0:17:09.240 if you were in that environment, because the energy was 0:17:09.280 --> 0:17:13.000 so palpable. I want to particularly talk about the you know, 0:17:13.080 --> 0:17:15.960 the falling apart, you know part of that comment there, 0:17:16.040 --> 0:17:19.919 and because there is a sense that crypto isn't what 0:17:20.040 --> 0:17:21.920 it was cracked up to be. We were Some people 0:17:22.040 --> 0:17:24.679 lost a bunch of money, you know, whether they were 0:17:24.800 --> 0:17:28.520 where they aped into stuff and whatever. People lost money. 0:17:28.720 --> 0:17:30.840 And there are some people who are really really big winners. 0:17:30.880 --> 0:17:32.960 It just came out a couple of days ago. Peter 0:17:33.040 --> 0:17:36.040 TiAl pulled out a bunch, you know, right before the 0:17:36.040 --> 0:17:38.960 market crashed. And so how does he know who knows, 0:17:39.200 --> 0:17:43.359 But the idea I wanted to discuss is what is 0:17:43.400 --> 0:17:46.919 your take on the world of crypto and it's long 0:17:47.080 --> 0:17:50.439 term value. So I think this is where I think 0:17:50.480 --> 0:17:53.280 a lot of people could have a pretty bad misconception. 0:17:54.040 --> 0:17:58.560 The base layer technology that we're talking about is blockchain technology. 0:17:59.000 --> 0:18:01.879 The first use kid is the first the first born 0:18:02.000 --> 0:18:08.160 child use case of blockchain technology is cryptocurrency. So usually 0:18:08.160 --> 0:18:11.159 when I'm having this kind of conversation, I love to 0:18:11.240 --> 0:18:14.360 kind of have a first principles conversation around the use 0:18:14.440 --> 0:18:19.920 case and the efficacy of blockchain technology. Cryptocurrency is a 0:18:20.119 --> 0:18:26.000 use case of blockchain So, um, cryptocurrency is not going anywhere. 0:18:26.520 --> 0:18:28.919 This is I think a lot of people. So if 0:18:28.960 --> 0:18:31.960 you go back and kind of do some history, um, 0:18:32.400 --> 0:18:35.320 seventeen was the last time that there was a really 0:18:35.359 --> 0:18:39.000 big influx of users and and and onboardings into the 0:18:39.040 --> 0:18:43.240 block blockchain and crypto space. One was just the last 0:18:43.359 --> 0:18:46.800 most recent version of that. So um, if you look 0:18:46.840 --> 0:18:50.159 back at any of the trading charts since the beginning 0:18:50.200 --> 0:18:53.639 of Bitcoin in two thousand nine and ethereum in two thousand, 0:18:53.720 --> 0:18:57.480 I think it was like twelve. I think, Um, this 0:18:57.480 --> 0:19:02.280 this kind of rise and fall is normal to be 0:19:02.400 --> 0:19:05.160 quite frank, and you don't lose money if you don't sell. 0:19:05.720 --> 0:19:08.720 So there's no such thing as there's There are realized 0:19:08.760 --> 0:19:12.160 gains and realized losses um. And so everyone who has 0:19:12.200 --> 0:19:15.600 held and gone through um all of these cycles over 0:19:15.640 --> 0:19:19.960 the last decade have gained so UM. So if we're 0:19:20.000 --> 0:19:23.360 looking it really depends on what perspective. Perspective your chart 0:19:23.520 --> 0:19:26.080 is that you're looking at your chart, um. But if 0:19:26.080 --> 0:19:28.360 you're looking at in the last filled months, well then yeah, 0:19:28.440 --> 0:19:31.000 everyone's crying right now. But if you look at the 0:19:31.040 --> 0:19:35.080 next three years until the next bitcoint goole cycle, UM, 0:19:35.119 --> 0:19:56.960 if you hold, perhaps you'd be giving people kiss. Cryptole 0:19:57.040 --> 0:20:00.360 goes up, crypto goes down. Some people believe us all 0:20:00.359 --> 0:20:04.320 the fantasy in the first place, and others are true believers. Myself, 0:20:04.800 --> 0:20:08.440 I foundationally believe that there will be a mainstream digital 0:20:08.480 --> 0:20:11.760 currency now, whether it's ethereum or bitcoin or some other 0:20:11.760 --> 0:20:14.720 actions yet to be seen. But I do believe at 0:20:14.800 --> 0:20:17.159 my core that there will be a digital currency that 0:20:17.280 --> 0:20:21.600 is widely accepted. Is this then a good base idea 0:20:21.720 --> 0:20:25.760 for investing k Let's peaks on it. Yeah, No, I 0:20:25.760 --> 0:20:29.879 I agree wholeheartedly. Um. That is the question back in 0:20:29.880 --> 0:20:33.119 two thousand and seventeen. Uh, it's what we called like 0:20:33.160 --> 0:20:39.960 the I c O boom um um uh initial exactly. 0:20:40.400 --> 0:20:44.040 And so there are a lot of really terrible projects 0:20:44.040 --> 0:20:46.760 out that didn't do anything, and so the same it was. 0:20:47.040 --> 0:20:48.920 I mean just look at the you know, copying paste. 0:20:48.920 --> 0:20:51.080 What happened in one is the exact same thing that 0:20:51.119 --> 0:20:54.240 happened back then. Um, you got a lot of people 0:20:54.320 --> 0:20:57.399 excited about making money. Nobody actually wanted to provide value 0:20:57.400 --> 0:21:02.040 to the marketplace. Cool, it was a big bubble, it popped, um, 0:21:02.080 --> 0:21:06.360 but the real players I do feel confident. Um, bitcoin 0:21:06.640 --> 0:21:08.879 is the most Like if you were to look at 0:21:08.920 --> 0:21:11.119 this on like a on a on a on a 0:21:11.160 --> 0:21:13.239 line and look at you know, on one end you 0:21:13.240 --> 0:21:17.800 have the most decentralized blockchain, and then on another end 0:21:17.840 --> 0:21:21.520 of the spectrum, you have, um, the least decentralized blockchain. 0:21:22.160 --> 0:21:24.399 Let's describe what that means for people who may not 0:21:24.440 --> 0:21:28.680 get centralizing. Decentralized means before you go too far. Yeah, 0:21:28.720 --> 0:21:33.080 so decentralization is it's really like the reason why blockchain 0:21:33.160 --> 0:21:34.680 was created in the first place. I don't want to 0:21:34.720 --> 0:21:37.160 go to in the history, but the reason why bitcoin 0:21:37.280 --> 0:21:39.600 was created was out of the housing crisis of two 0:21:39.600 --> 0:21:42.760 thousand and eight. Essentially, the idea that we were as 0:21:42.840 --> 0:21:45.560 as you know, my parents put their money into real estate, 0:21:45.560 --> 0:21:49.000 put their money into therefore one case, as you know, 0:21:49.200 --> 0:21:50.840 that's what everyone was told to do, is like the 0:21:50.880 --> 0:21:53.560 safe way to invest your money. UM. And yet you 0:21:53.640 --> 0:21:59.800 have banking bankers who do UM uh fractional reserve banking. Right, 0:22:00.080 --> 0:22:03.879 they're allowed to leverage the funds of inside of you know, 0:22:04.160 --> 0:22:06.000 your bank account. You put your money into the bank 0:22:06.400 --> 0:22:09.480 UM or into some type of investment vehicle. They take 0:22:09.520 --> 0:22:12.800 those funds, invest them, they give you a percentage back 0:22:12.960 --> 0:22:16.400 of what they make. Right basically how it works. They 0:22:16.440 --> 0:22:20.560 lost their money, they were doing really risky UM investments UM, 0:22:20.600 --> 0:22:24.560 and they lost your money. They lost your investment UM 0:22:24.640 --> 0:22:28.199 and so essentially because of that, the value of you know, 0:22:28.200 --> 0:22:30.960 putting your money into those investments. So anyways, long story short, 0:22:31.040 --> 0:22:35.119 the person or people Satoshi Nakamoto who created bitcoin was 0:22:35.440 --> 0:22:39.159