Speaker 1: Hello, and welcome to another episode of The Mark mo Show,
Speaker 1: where we're talking about the decentralized Revolution. Of course, each
Speaker 1: and every week we talked about through the lens of politics, finance,
Speaker 1: and technology, and the story we are talking about today
Speaker 1: is really a battle over decentralization, what people think is
Speaker 1: decentralized versus what really is. And this really is about
Speaker 1: cryptocurrency and what is decentralized and what is centralized, and
Speaker 1: it's centralized. That is the problem, which is what we're
Speaker 1: trying to get away from, which is why we're talking
Speaker 1: about the decentralized Revolution. Now, if you are just tuning
Speaker 1: in and you've missed. In the beginning, we talked about
Speaker 1: this f t X blow up in the cryptocurrency space.
Speaker 1: We framed up um how this whole thing worked, how
Speaker 1: they are two companies worked, how they create value out
Speaker 1: of thin air, why venture capitalists love it, why the
Speaker 1: media loves it, why advertisers love it, why it got
Speaker 1: so much hype and play. Then we got into the
Speaker 1: deep ties that Sam Bankman Freed, the founder of ft X,
Speaker 1: have inside the government. So if you missed any of that,
Speaker 1: go back and check out our one on the podcast.
Speaker 1: You can link to that um or um check me
Speaker 1: out on YouTube as well, just search Mark Moss and
Speaker 1: watch me there as well. Now let's keep going in here.
Speaker 1: So we were talking about the deep ties that they
Speaker 1: have to the government, and that's part of the problem,
Speaker 1: of course, right, It's always about the favors. It's always
Speaker 1: about the money that you want to put into the market.
Speaker 1: And we know that there were deep ties, like I said,
Speaker 1: deep ties with the World I Coming Forum, deep ties
Speaker 1: even in the Ukrainian government, deep ties into the US government,
Speaker 1: both in donating being the second largest donor to the
Speaker 1: binder Bind administration and then donating over forty million dollars
Speaker 1: for the mid term elections, basically influencing every election across
Speaker 1: the country. Big big, big big deals um. On top
Speaker 1: of this, as as bad as that is, then we
Speaker 1: also know that there's connections with the regulatory bodies, the
Speaker 1: SEC and the CFTC. We can see here that Sam
Speaker 1: Bankman Freed's father, so I said, both of his parents
Speaker 1: are very connected into the Democratic Party, both in influencing policy, writing,
Speaker 1: policy and so forth. We can see here that we
Speaker 1: can see here that Sam Bankman Freed's father actually drafted
Speaker 1: tax legislation force Senator Elizabeth Warren and donated thousands of
Speaker 1: dollars to their party. So Senator Elizabeth Warren, who of
Speaker 1: course has been very very outspoken about this, and she's
Speaker 1: going to get to the bottom of this, and she's
Speaker 1: going to fix this and she needs to protect the people. Meanwhile,
Speaker 1: the guy's father writes her legislation and her policies and
Speaker 1: donates money to her campaign. Oh what a tangled web
Speaker 1: this is. She introduced a bill called the Tax Filing
Speaker 1: Simplification Act in Warren, who currently chairs both the Senate
Speaker 1: Banking Committee Economic Policy and the Senate Finance Committee's Fiscal
Speaker 1: Responsibilities of Committee. Um, is somehow connected to this. Now,
Speaker 1: you know, I'm not saying she's a part of it.
Speaker 1: I'm not going to draw that conclusion. But again, this
Speaker 1: goes deep. Bankman Fried says here was donated the Democratic Party.
Speaker 1: We're talking about that, all right, So that's part of it. Um.
Speaker 1: We also know, like I said earlier, if he just
Speaker 1: tuned in, that his girlfriend ran the sister company Alameda,
Speaker 1: which UM, her father was the boss of Gary Ginsler,
Speaker 1: the head of the SEC. We also know that, Um,
Speaker 1: when all of this came out um FTX froze everybody's money,
Speaker 1: wouldn't allow anybody to get out. Um, there was about
Speaker 1: a billion dollars sitting on the exchange that could potentially,
Speaker 1: you know, get divided up between customers or could get
Speaker 1: you know, divided up creditors or something like that. Um,
Speaker 1: there was about one point seven billion dollars in assets
Speaker 1: there and then they just disappeared. So f t X says, oh,
Speaker 1: there's a hack. There was a hack. All that money
Speaker 1: just disappeared, which is pretty coincidental. Right again, where they're smoked,
Speaker 1: there's fire. Um it says that it might be taken
Speaker 1: up by the SEC and d o J in their investigations.
Speaker 1: But Bankman Freed allegedly allegedly implemented a back door in
Speaker 1: t f into f d x's book keeping system. Reuters
Speaker 1: repeated that the alleged back door enabled Bankman Freed to
Speaker 1: execute commands that could alter the company's financial records without
Speaker 1: alerting other people, including external auditors. The very fact that
Speaker 1: they would have something like this again, why do you
Speaker 1: build something like this so you could move funds without
Speaker 1: alerting auditors unless you are moving funds without alerting auditors,
Speaker 1: or you want to move funds with like like uh,
Speaker 1: I mean this is like this whole like, uh, you
Speaker 1: know now now all this conspiracy that people were the
Speaker 1: platform for for saying that, you know, the COVID could
Speaker 1: have come from a lab, and now the government says, yeah,
Speaker 1: it actually did come from a lab. Uh. But why
Speaker 1: were they work why do they work on these things
Speaker 1: in a lab? Like what's what's the point unless you
Speaker 1: want to use them? Right, and so why would you
Speaker 1: build a back door unless you want to use it?
Speaker 1: And it gets even better than that. So the there's
Speaker 1: a guy named Dan Freedberg who is the Chief Regulatory
Speaker 1: Officer the middle word regulatory, the chief regulatory officer, the
Speaker 1: guy who's supposed to be in charge of regulations, Dan Freeburg. Oh,
Speaker 1: he's got a troubled past. It's a matter of fact.
Speaker 1: He comes from another company called Ultimate Bets that got
Speaker 1: brought up on charges of having what, oh a back door?
Speaker 1: M hmm seems pretty coincidental. So he had a company
Speaker 1: called Ultimate Bets that was fined massively for having a
Speaker 1: back door something he called god code that allowed him
Speaker 1: to see all the hands of all the other gamblers
Speaker 1: on the platform, so then he could then play against them.
Speaker 1: Imagine being playing poker and seeing all your opponents cards,
Speaker 1: knowing when you could bluff them, knowing when you should fold,
Speaker 1: et cetera. And that's what he built in, and he
Speaker 1: got busted for it. And now he just happens to
Speaker 1: be the chief regulatory officer of this company which has
Speaker 1: a back door in which, um, you know, billions of
Speaker 1: dollars of customer funds disappeared without triggering internal compliance or
Speaker 1: accounting red flags. Now, bankman Freed told Reuters that he
Speaker 1: hadn't implemented a back door, but the investigations show otherwise.
Speaker 1: And supposedly SEC and d o J are investigating this
Speaker 1: UM and it just keeps getting bigger and bigger and
Speaker 1: bigger and deeper and deeper and deeper. UM. So what
Speaker 1: else we can see here? That, as I said, the
Speaker 1: Maxine Waters, she's now um. Democrats decided to recommit funds
Speaker 1: from FTX donations towards charity or other party campaigns after
Speaker 1: they filed bankruptcy. Maxine Waters is dodging questions, says she
Speaker 1: doesn't want to get into it. She is the chairwoman
Speaker 1: of the House Financial Services Committee. She said they would
Speaker 1: be having a hearing to explore interesting. Um, it gets
Speaker 1: even deeper than that if we want to keep going.
Speaker 1: And what do I mean by that? Well, we can
Speaker 1: see that as I said, there's massive ties to the
Speaker 1: regulatory bodies, the SEC and the se f TC, Maxine Waters,
Speaker 1: House Financial Committee, Um, Senator Elizabeth Warren, I mean this
Speaker 1: the Biden administration, even the world document format, and it
Speaker 1: goes deep, deep, deep. And again, um, where there's smoke,
Speaker 1: there's fire. Typically, Now what happens next? And I think
Speaker 1: this is a key piece to understanding. Now. Hopefully if
Speaker 1: you're here on our one and you understood how this
Speaker 1: all worked, understanding what comes next is a little bit
Speaker 1: easier to understand. Now what comes next in the in
Speaker 1: the in the short to mid term for stam Bankman Freed,
Speaker 1: there's a you know, in in election markets, they run
Speaker 1: polls to find out who gets elected. The polls aren't
Speaker 1: typically as accurate as the betting markets are. The betting
Speaker 1: markets are typically more accurate because people actually put their
Speaker 1: money where their mouth is. They have to put up
Speaker 1: money to vote versus polls. People just like say whatever, um,
Speaker 1: And there's actually a betting market on will SPF be
Speaker 1: federally indicted by the end of the year. Pretty interesting
Speaker 1: and uh, you won't believe what the betting markets are saying,
Speaker 1: or maybe you will. Um, if his money, his billions
Speaker 1: of dollars he created out of thin air, defrauded with
Speaker 1: counterfeit money and poured into the political parties of the
Speaker 1: Democrats and the and the president and the regulators, maybe
Speaker 1: will believe what this betting market says. But I'll be
Speaker 1: back with that and more in a minute of Just
Speaker 1: tune in your listening to the Mark Moss Show. We're
Speaker 1: talking about the f t X fiasco, the crypto market meltdown.
Speaker 1: We'll be back with that and more in a minute,
Speaker 1: So don't go away, all right, Welcome back. If you're
Speaker 1: just tuning in, you're listening to the Mark mos Show.
Speaker 1: We're talking about Sam Bankman freed f t X and
Speaker 1: the blow up happening. I was talking about how, um,
Speaker 1: this is probably the biggest case of fraud that we've seen,
Speaker 1: you know, maybe potentially since I don't know Enron, or
Speaker 1: since um, you know Bernie made off, potentially something like that.
Speaker 1: As a matter of fact, Uh, speaking about in Ron.
Speaker 1: Ron if you're not familiar, was a giant company that
Speaker 1: did massive amounts of fraud and money laundering, embezzlement and
Speaker 1: stuff like that. And Um, what we can see is
Speaker 1: that when f t X filed for bankruptcy, they filed
Speaker 1: for Chapter eleven and they had to file an affidavit,
Speaker 1: and they appointed a restructuring CEO, John Ray the Third,
Speaker 1: and he oversaw in Ron's bankruptcy proceedings and he, after
Speaker 1: looking at the contents of their affid David calls f
Speaker 1: t x is case the worst of his career and
Speaker 1: the contents are shocking. So the guy who sat on
Speaker 1: arguably the biggest fraud case in history is now saying
Speaker 1: that this is actually the worst that he's just seen
Speaker 1: in his whole career. So let's see what he has
Speaker 1: to say here. Um, it says, Look, we owe a
Speaker 1: lot of people a lot of money, and we don't
Speaker 1: know exactly where it all is, but we're looking. We
Speaker 1: don't know where the money went, we don't know who
Speaker 1: we owe to, but don't worry, We're gonna look into
Speaker 1: it all right. Um. He says that it's one of
Speaker 1: the He is one of the most experienced restructuring executives
Speaker 1: in the world, having an overseen n RON and a
Speaker 1: slew of other high profile bankruptcies. Um Ray's statements are
Speaker 1: given under penalty of perjury. All right, So that's to
Speaker 1: say that a serious investigation. Ray opens with his experience
Speaker 1: and then immediately condemns f t X as the worst
Speaker 1: case of his career. Quote. Never in my career have
Speaker 1: I seen such a complete failure of corporate controls and
Speaker 1: such a complete absence of trustworthy financial information as occurred
Speaker 1: here in quote. So it wasn't just like some mistake.
Speaker 1: When you have a corporation and you have investors. There
Speaker 1: are things that are required to be done by law,
Speaker 1: and they did none of those. Never have seen such
Speaker 1: a complete failure of corporate control. So there's controls that
Speaker 1: are supposed to be in place to make sure that
Speaker 1: you do the best things, and they have failed all
Speaker 1: those things. He identified four businesses within f t X,
Speaker 1: so we kind of know about these Alameda um different
Speaker 1: f t X things, and that's not super important, but
Speaker 1: he said, he immediately communicates distrust of any furnished financials.
Speaker 1: F t X US balance sheet shows one point three
Speaker 1: six billion in assets. However, he says, quote because this
Speaker 1: balance sheet was produced while the debtors were controlled by
Speaker 1: Mr Bankman Fried, I do not have confidence in in quote,
Speaker 1: so basically saying, look, we don't trust anything that they
Speaker 1: have to say. We can't believe any of this. Um.
Speaker 1: He then goes on to recount SPS negotiations with attorneys
Speaker 1: and his father around filing chapter eleven, which is in
Speaker 1: his interview with Vox. SPF stated as his biggest regret,
Speaker 1: claiming that everything would be fixed by now if he
Speaker 1: hadn't so f SPF the head of f t X UM,
Speaker 1: he just can't keep his mouth out and he can't
Speaker 1: stay out of trouble. He started having um U a
Speaker 1: d M conversation with a reporter from Vox, and in
Speaker 1: this he, I mean just gave out so much damning information.
Speaker 1: It's incredible. It's incredible that he would actually say this
Speaker 1: and not just say it like verbally where someone could
Speaker 1: misconstrue it. No, no, no, he actually put it in
Speaker 1: text where people could read it. The reporter said, quote,
Speaker 1: you were really good at talking about ethics for someone
Speaker 1: who kind of saw it all as a game with
Speaker 1: winners and losers, and Sam Bankman Fried says, yeah, he he,
Speaker 1: I had to be he he. He's laughing about it.
Speaker 1: So you were talking. You're good about talking about um
Speaker 1: Paul ethics, right, because he was in Washington trying to
Speaker 1: push regulations to supposedly regulate the fraud out of the
Speaker 1: crypto industry while he was doing it. So the reporter said, hey,
Speaker 1: you were good about talking about it, and he said yeah.
Speaker 1: He he had to be. It's what reputations are made up.
Speaker 1: To some extent, I feel I feel bad for those
Speaker 1: who get ft by it, by this dumb game we
Speaker 1: woke Westerners play, where we say all the right shibbo
Speaker 1: with and so everyone likes us. So he says, right
Speaker 1: here to the reporter, I had to I had to pretend.
Speaker 1: I feel bad for those who get fed by it.
Speaker 1: So you know, those hundreds of thousands of families who
Speaker 1: literally lost their life savings, and people who don't have
Speaker 1: medications now, and kids can't go to college now, and
Speaker 1: they don't have homes anymore. I feel bad for those
Speaker 1: people who get fed by my lies, my pretending to
Speaker 1: be somebody, by this dumb game we woke Westerners play,
Speaker 1: where we say all the right things so people like us. No,
Speaker 1: we don't do that. That's called lies, that's called deceit
Speaker 1: and that's called fraud. No, that's out what we do.
Speaker 1: That's what he did. This is what he said in
Speaker 1: text message. I mean, I just can't believe it. Um.
Speaker 1: The whole world thought he was the smartest guy in
Speaker 1: the world, the smartest Some of the smartest investors in
Speaker 1: the world got totally scammed by this guy, which I
Speaker 1: don't understand because he can't even keep his mouth shut.
Speaker 1: This is what he said in text messages. He put
Speaker 1: this into writing. Nobody with half a brain would put
Speaker 1: that stuff into writing. Um. Elon Musk apparently he wanted
Speaker 1: to donate, or not donate, but invest up the fifteen
Speaker 1: billion dollars into Elon Must take over of Twitter. And
Speaker 1: Elon Must said, just ever sitting down with him, just
Speaker 1: for a couple of minutes, his BS alarms were going
Speaker 1: off and he knew that he couldn't take on any
Speaker 1: of his money. So, um, this was not Uh, this
Speaker 1: was this was not something that nobody caught. People caught it.
Speaker 1: Elon Musk caught it. They could see it. Now. People
Speaker 1: didn't see it because they didn't want to see it. Um,
Speaker 1: but let's see, let's see if we can find some
Speaker 1: more of what he said here. There was a whole
Speaker 1: thread on it. But I seem to have lost it anyway.
Speaker 1: Um he he bamboozled. Will say, well, he bamboozled the industry.
Speaker 1: We had Jim Kramer. Jim Kramer Um called him the
Speaker 1: next Jp Morgan. We have Fortune magazine, saying that he
Speaker 1: was going to be the next Warren Buffett, but instead
Speaker 1: all he turned out to be was a big Bernie
Speaker 1: made off. What else did he say here? He said,
Speaker 1: he said, uh, uh, they said the reporter said, you
Speaker 1: said a lot of stuff about how you wanted to
Speaker 1: make regulations just good ones. Was that pretty much just
Speaker 1: PR two? And he said, there's really no one out
Speaker 1: there making such good things happen. Bad things don't. So
Speaker 1: he said, uh, he said, yeah, just pr F regulators.
Speaker 1: They make everything worse. They don't protect customers at all.
Speaker 1: That's his quote. So you you talked a lot about
Speaker 1: wanting to protect us with regulations, was that pr Yeah,
Speaker 1: just pr F regulators. They make everything worse, they don't
Speaker 1: protect customers at all. Hopefully that might be a warning
Speaker 1: shot across the bow of the sec um because he
Speaker 1: called them out F the regulators. They make everything worse,
Speaker 1: they don't protect customers. At all. Well, they certainly didn't
Speaker 1: protect customers at all from losing ten billion dollars. So
Speaker 1: let's talk about what regulators are gonna do next and
Speaker 1: what that means for the industry overall, and what I'm
Speaker 1: calling the last cryptocurrency bowl market will ever see. So
Speaker 1: what do I mean by that? But we'll talk about
Speaker 1: that in a minute. If you're tuning and listen to
Speaker 1: the Markma Show, we're talking about, of course, the decentralized Revolution,
Speaker 1: but we're talking about the s SPF, n f F
Speaker 1: t X below. I'll be right back with more. Don't
Speaker 1: go away, Hello, and welcome back. If you are just
Speaker 1: tuning in you're listening to the Mark Mo Show, we're
Speaker 1: talking about the ft X cryptocurrency exchange blowing up, the
Speaker 1: largest meltdown we've seen in the cryptocurrency space. Now I
Speaker 1: want to talk about regulations. So just before we went
Speaker 1: to break, I was reading quoting a direct message conversation
Speaker 1: that SPF had with some reporter from Box and he said,
Speaker 1: they said, they asked him, Uh, you said a lot
Speaker 1: of stuff about how you wanted to make regulations. Was
Speaker 1: that just pr two? He says, Yes, just pr F
Speaker 1: regulators they make everything worse. They don't protect consumers or
Speaker 1: I'm sorry, they don't protect customers at all. And so
Speaker 1: the SEC is supposed to be there to protect customers.
Speaker 1: He says, they don't do it, and they certainly didn't.
Speaker 1: They were all up in his business. If they can't
Speaker 1: catch this, they can't catch anything. If if if a
Speaker 1: law abide incorporation forgets to cross a T on a document,
Speaker 1: they're gonna be all up in their business with fines.
Speaker 1: But him, he's just still in ten billion dollars. Never
Speaker 1: mind that they certainly didn't protect customers. So what happens,
Speaker 1: Well again I read I told you there's a betting
Speaker 1: market to see whether he gets indicted or not. Sevent
Speaker 1: say no, he will not be indicted by the end
Speaker 1: of the year. He should already be in handcuffs. He
Speaker 1: should have been handcuffed immediately as soon as we found
Speaker 1: out he stole that money. It should have been game over.
Speaker 1: What is he even doing walking around? What do we mean?
Speaker 1: Will he be indicted? Are you kidd he meet? We
Speaker 1: have all the facts we need, We have the information
Speaker 1: right here, we have all the documentation everything. The fact
Speaker 1: that he's walking around a freeman is just unbelievable to me.
Speaker 1: And will he ever be indicted? Well, we don't know
Speaker 1: the betting. Marcus saying no, why Well, Gary Ginsler ahead
Speaker 1: of the sec says, well, it's a Bahamas it's a
Speaker 1: Hamas corporation. So I don't know if we have jurisdiction.
Speaker 1: You don't have jurisdiction. Well, he did have an offshore corporation,
Speaker 1: but he also had f t x US. He's also
Speaker 1: a U. S citizen. He also has defrauded all these
Speaker 1: American citizens of money. What do you mean we don't
Speaker 1: have jurisdiction. I mean that's just insanity for Gary Gains
Speaker 1: that is saying something like that, we need heads to roll,
Speaker 1: that's what we need. We need, we need examples. Now
Speaker 1: I'm afraid that this is just unfortunately, as I'm calling
Speaker 1: the decentralized revolution, the entire world is going through a
Speaker 1: revolution and it's going to be very messy. But we're
Speaker 1: seeing this all over. Nobody wants to take accountability, Nobody
Speaker 1: wants to take responsibility. All we want to do is
Speaker 1: continually shuck off that. And so it's not the federal
Speaker 1: reserves fault. They didn't understand inflation and they printed way
Speaker 1: too much money, and now we have inflation. It's not
Speaker 1: their faults, nobody's fault. Nobody's fault. You know, all these
Speaker 1: people that perpetrated this whole COVID pandemic and the lockdowns
Speaker 1: and all the damage and unharmedus cause from that. And
Speaker 1: now they're saying the Atlantic ran that piece and said
Speaker 1: we just need amnesty. You know, we didn't know what
Speaker 1: we were doing. Can we just forgive all that? No? No, no,
Speaker 1: no no. We need accountability, We need responsibility, and we
Speaker 1: need examples made. People must pay the price, not just
Speaker 1: because they've done wrong, which they have, but also so
Speaker 1: other people don't do the same thing. You don't just
Speaker 1: wipe out ten billion dollars of people's wealth like it's
Speaker 1: just a number on a spreadsheet, without understanding the lives
Speaker 1: that are at risk. You don't just walk away from
Speaker 1: that and pretend like nothing happened, because what prevents the
Speaker 1: next guy from doing that? I mean, shoot, if you
Speaker 1: can just go still ten billion dollars and have no um,
Speaker 1: no responsibility or consequences for that, I mean maybe we
Speaker 1: should all just do that now. As a matter of fact,
Speaker 1: I've read before UM Vladimir Linen um in Russia. Bizarre
Speaker 1: of Russia a hundred years ago said that the best
Speaker 1: way to destroy capitalism is to debouch the currency. So
Speaker 1: de Devalue debase the currency through inflation. And he said,
Speaker 1: I'm paraphrasing here, I'm not reading directly, but he said, Um,
Speaker 1: through inflation you can steal and confiscate wealth arbitrarily. So
Speaker 1: just as as you want, you can just take people's money.
Speaker 1: And then you wanted to say that through a series
Speaker 1: of inflation, you'll lose all relation to money and society
Speaker 1: will break down. The best way to get rich will
Speaker 1: be through theft and gambling. Sam Bankman Fried Jim Kramer
Speaker 1: said the next Jp Morgan. Fortune Magazine said he's the
Speaker 1: next war and Buffett. He had built a thirty two
Speaker 1: billion dollar company in three years. Um. All the political elite,
Speaker 1: the world Ecomic Forum, Bill Clinton, Tony Blair, the Bide
Speaker 1: administration all praised him. He's the smartest guy in the world.
Speaker 1: All theft. So remember what Vladimir Lenin said, The best
Speaker 1: way to get wealth will be through gambling and theft.
Speaker 1: He stole all the money, he counterfeited it, and then
Speaker 1: he made more money by given it to gamblers. Remember
Speaker 1: gambling and theft. He theft and he made money off gambling.
Speaker 1: And if we don't said an example, then we're just
Speaker 1: gonna get more of the same. Now, I wouldn't do it,
Speaker 1: because you know, I have morals. Luckily, I have a
Speaker 1: I have a father, I have a family that raised
Speaker 1: me up with morals and integrity and a conscience. Unfortunately
Speaker 1: most people don't these days. And so if you don't
Speaker 1: make an example out of this, if there's no consequences
Speaker 1: to pay, if there's no responsibility, then what will stop
Speaker 1: people from doing the same thing? And of course the
Speaker 1: answer is nothing will. My guess is though, that I
Speaker 1: think we're going to see some massive regulations come from this.
Speaker 1: I think we're gonna have to see Chair SEC Chair
Speaker 1: Gainsler said this week quote non compliant end quote crypto
Speaker 1: industry um needs to be cracked down on. He says, uh,
Speaker 1: crypto investors need better protection in the space that is
Speaker 1: significantly non compliant despite clear regulations. US Security An Exchange
Speaker 1: Commissioner Gary Ginsler said in an interview to CNBC on Thursday,
Speaker 1: he said, quote the runway is running out. Investors around
Speaker 1: the globe are getting hurt in quote yeah, no, kidding.
Speaker 1: Ten billion dollars gone. Um, so I think I think,
Speaker 1: I think I think they're gonna be forced in order
Speaker 1: to do this. Now, what is the security and what
Speaker 1: is a what is a commodity? And what does this
Speaker 1: mean for the cryptocurrency space overall? Like I said, I
Speaker 1: put out a tweet on Twitter. A lot of people
Speaker 1: are not liking my tweet on Twitter because I said,
Speaker 1: this is why I believe we've seen the last crypto
Speaker 1: bull market. So a lot of people they got in
Speaker 1: at the end, they lost their money. But wait a minute,
Speaker 1: I didn't. I didn't get into the bull market. I
Speaker 1: need one more? Can I get one more? Please? One more?
Speaker 1: And I said there's not going to be another one.
Speaker 1: People aren't happy about that. So what do I mean
Speaker 1: by that? Well, if you're around on our one and
Speaker 1: you heard how I explained how all of this worked.
Speaker 1: If you weren't here, go back and listen to that,
Speaker 1: because if you don't understand that, you're not gonna understand
Speaker 1: what I'm about to say. So remember, they create these
Speaker 1: tokens out of thin air, and then venture capitalists come
Speaker 1: in and give them a little bit of money to
Speaker 1: create this token out of thin air. And then the
Speaker 1: venture capitalists are able to turn around and liquidate that
Speaker 1: money right away. Now, venture capitalists is somebody who would
Speaker 1: invests into early round companies, startups. Okay, now the way
Speaker 1: venture capitalists vcs way, the way the VC funds works. Typically,
Speaker 1: they put in a pool of money and then they'll
Speaker 1: invest that over like say fifteen companies, and then they'll
Speaker 1: give it like a seven to ten ten year time frames.
Speaker 1: They know when I invest into Uber, for example, it's
Speaker 1: gonna take ten years before there's some sort of liquidity event.
Speaker 1: So if I put my money into Uber or something
Speaker 1: like Uber, how do I get my money back out?
Speaker 1: Whether it has to be an a liquidity event, meaning
Speaker 1: that Uber either has to get bought out typically or
Speaker 1: go public. If it goes public, then I get stock
Speaker 1: and I can sell my stock. But if there's no
Speaker 1: liquidity event, if it doesn't go public or doesn't get
Speaker 1: bought out out or some other way I can get
Speaker 1: my money out, I don't get my money out. And
Speaker 1: venture capitalists know that a lot of deals they do,
Speaker 1: they won't ever get their money back out. But of
Speaker 1: course the few that do, they make big, big money.
Speaker 1: That's the way venture capital works. But now venture Capital
Speaker 1: has been able to buy these tokens out of thin
Speaker 1: air and then automatically made ten times on their money
Speaker 1: by dumping in on unsuspecting retail And of course they
Speaker 1: love it, which then means the media loves it, which
Speaker 1: then means the advertisers love it, and then you get
Speaker 1: all this hype around that. Now, if the if the
Speaker 1: regulators come in and put laws around this, I think
Speaker 1: it could be the end of the bull market. And
Speaker 1: a lot of people on Twitter are like, oh, Mark,
Speaker 1: you don't know what you're talking about. Um, it'll just
Speaker 1: go off shore. Okay, sure, I agree. They can't stop
Speaker 1: something decentralized. Okay, I agree. So if I agree with
Speaker 1: those statements, then why would I say that there won't
Speaker 1: be another crypto bull run? And by the way, i'm
Speaker 1: breaking apart of course bitcoin not crypto. I'm not talking
Speaker 1: about them too interchangeably. I think we'll see bitcoin going
Speaker 1: another bull run, and I think we might not see
Speaker 1: crypto going another bull run. So what do I mean
Speaker 1: by that when I agree with all that, I'm gonna
Speaker 1: break all that down for you want to come back
Speaker 1: in a second. If you're just tuning in, you're listening
Speaker 1: to the Mark mass Show, breaking down the f t
Speaker 1: X scenario, what's gonna happen with regulations, and what happens
Speaker 1: with the crypto industry. We're back with all of that
Speaker 1: and more when I come back after just a quick
Speaker 1: short break. Don't go away, We're back, all right, Welcome back.
Speaker 1: If you're just tuning in, you're listening to the Mark
Speaker 1: Moa Show. We are talking about the ft X blow up.
Speaker 1: F t X, the second largest cryptocurrency exchange, blew up,
Speaker 1: taking over ten billion dollars of customer money with it
Speaker 1: um leaving probably I'm guessing hundreds of thousands of families
Speaker 1: broke massive amounts of fraud, the greatest negligence of fraud
Speaker 1: um that we might have ever seen. The the person
Speaker 1: overseeing the f t X bankruptcy filing also worked on
Speaker 1: the n Ron case and he said it's the worst
Speaker 1: he's seen in his career, and that's a lot. So
Speaker 1: I'm saying that I think this is going to force
Speaker 1: regulators to to impose more regulations, be more strict, And
Speaker 1: I'm saying if that happens, which I think it will,
Speaker 1: then I think this could be the last crypto bull run. Now,
Speaker 1: like I said before the break people I put this
Speaker 1: on Twitter. People are all mad, They say, what do
Speaker 1: you mean, Mark? They can't shut crypto down. It's decentralized.
Speaker 1: They and it'll just go off shore and the U S.
Speaker 1: Regulators won't be able to reach it. I agree with that,
Speaker 1: But here's why I think it could be the last
Speaker 1: bull run. The reason why is because this got all
Speaker 1: of its momentum, It got all of its hype, it
Speaker 1: got all of its money because venture capitalists were able
Speaker 1: to come in and buy these tokens for nothing and
Speaker 1: then instantly flipped them and make all this money and
Speaker 1: then spend all this money for for media and for hype,
Speaker 1: and everybody got all caught up in this. If all
Speaker 1: of this goes off shore into these dark, unregulated markets,
Speaker 1: that means like American firms, like these venture are capital firms,
Speaker 1: the ones that have the hundreds of billions of dollars
Speaker 1: and the media won't participate. So will it go off shore? Sure?
Speaker 1: Will innovation still happen, of course it will. It will
Speaker 1: just be a fraction of the size. And I'm not
Speaker 1: saying I want this. Remember this is what I think
Speaker 1: is going to happen. It's not what I want to happen.
Speaker 1: I would like the sec to be disbanded. I would
Speaker 1: like to see none of this happen, But this is
Speaker 1: what it is. So I think they're most likely going
Speaker 1: to be forced to do something. I think that, um,
Speaker 1: most likely, they're going to deem almost all of these cryptocurrencies,
Speaker 1: in my guess, like of them as securities, and most
Speaker 1: of them will just go away. Some of them will survive,
Speaker 1: some of them will go off shore. But this VC money,
Speaker 1: American VC money and media will not go with it.
Speaker 1: And so then the hype dies. And with the hype dies,
Speaker 1: so does the next Bowl run. I'm not saying it
Speaker 1: goes away. I'm not saying whatever seed it again, there
Speaker 1: will still be stuff being innovated. There was stuff, stuff
Speaker 1: being done. But this big run where all of a
Speaker 1: sudden you can close your eyes and buy some stupid
Speaker 1: dog coin, um, you know, cryptocurrency and make a thousand
Speaker 1: times on it, I think those days are over. Now.
Speaker 1: What is the difference between bitcoin and crypto? Why would
Speaker 1: I say I think bitcoin could have another Bowl run
Speaker 1: and crypto won't. So let's think think about this. There's
Speaker 1: two types of kind of financial assets that we can
Speaker 1: buy one is one are commodities, and one are securities.
Speaker 1: Commodities and security Securities are regulated by the sec Commodities
Speaker 1: are regulated by the CFTC. Commodities are things like gold,
Speaker 1: like precious metals, gold and silver, platinum, palladium, et cetera.
Speaker 1: There are things like oil gas right. There are things
Speaker 1: like food like wheat, corn. Right Now, what do wheat
Speaker 1: and corn and oil and natural gas and precious metals
Speaker 1: all have in common. Well, they all come from the ground.
Speaker 1: They're all like naturally hurrying things. There's no central issuer.
Speaker 1: There's no company that invented corn and sells people investments
Speaker 1: into creating corn. No, you can go buy a piece
Speaker 1: of land and you can plant corn, or you can
Speaker 1: plant wheat, or you can you can mine for gold
Speaker 1: on your land, or you can droll for oil on
Speaker 1: your land. Anybody in the world could go get land
Speaker 1: and can go grow wheat or corn or dig for
Speaker 1: gold or oil. Okay. And then no matter where in
Speaker 1: the world I grow wheat, wheat sweet, it's fungible. No
Speaker 1: matter where I dig for gold, if I dig for
Speaker 1: gold in China or the US, it's still gold. Okay.
Speaker 1: So that's commodities. Securities are different. Securities are companies. Security
Speaker 1: is secured interests in companies. So a company starts, we're
Speaker 1: going to create this software, and um, we're going to
Speaker 1: raise money and you can buy a share, a stock,
Speaker 1: a security in this company because in the future we're
Speaker 1: going to do these things or whatever. It's a big
Speaker 1: difference a company versus a modity. So bitcoin is a commodity.
Speaker 1: The SEC has been very clear about this. They said
Speaker 1: unequivocally bitcoin is a commodity. And the reason why is
Speaker 1: bitcoin has no company. There's no company, there's no marketing department,
Speaker 1: there's no regulators, there's no nothing, there's no steering committee,
Speaker 1: and it's one of the only very very few cryptocurrencies
Speaker 1: that had no issuer. So bitcoin was a piece of
Speaker 1: software that was created and released to the world. Anybody,
Speaker 1: even right now today can go to go get a
Speaker 1: computer and you can mine for bitcoin, just like you
Speaker 1: can go mine for gold today. Now, I don't have
Speaker 1: the same advantage mining for gold as like Barrack Gold,
Speaker 1: the largest gold mining company in the world. I don't
Speaker 1: have the same advantage. They have way more money, they
Speaker 1: can mind more gold than I can. But I can
Speaker 1: still go look for gold if I want. As a
Speaker 1: matter of fact, I'm in California. One of my good
Speaker 1: friends love to go mine for gold and the rivers
Speaker 1: and stuff in northern California and he finds gold all
Speaker 1: the time. Um, just like I can go buy a
Speaker 1: computer and I can mind for bitcoin today. Now I
Speaker 1: don't have the same advantage that you know a big
Speaker 1: publicly traded bitcoin mining company has, But but we can
Speaker 1: still do it the same. And whether I mind the
Speaker 1: bitcoin or they mind the bigoin to same bitcoin, whether
Speaker 1: I go find gold in the river or Barrett Gold
Speaker 1: finds the gold, the same goal. Okay. But Ethereum, the
Speaker 1: second largest cryptocurrency, was started by a company. Seventy percent
Speaker 1: of the tokens were pre mind, meaning when they created
Speaker 1: the company, they created the tokens and they kept seventy
Speaker 1: for themselves and the rest they released on to the public.
Speaker 1: And like a company, there's a steering group they're controlling
Speaker 1: what it does. So if you haven't been paying attention,
Speaker 1: Ethereum has changed their monetary policy I believe three times
Speaker 1: in the last couple of years. They recently just changed
Speaker 1: the entire consensus mechanism to go from a proof of
Speaker 1: work to a proof of steak and they have a
Speaker 1: ten year road map of what they're trying to do.
Speaker 1: That's essentially controlled. Pre mind all right, now take cardano,
Speaker 1: take whatever X y Z token. I don't care. They're
Speaker 1: all basically the same. There's a group of people that
Speaker 1: control it. Now. Oh but it's decentralized governance. Okay, call
Speaker 1: it what you will. That's up for the SEC to decide.
Speaker 1: But they issued the tokens. So only bitcoin is a
Speaker 1: commodity now, um, I believe, uh mon, narrow and light
Speaker 1: coin and siah coin I think. So maybe there's like
Speaker 1: three other ones that didn't actually have a issue or
Speaker 1: as well, all the other ones had issuers, okay, um,
Speaker 1: And so that's a big difference. And so SEC has
Speaker 1: already said one in a commodity. All the rest are
Speaker 1: still open for interpretation. If they say they are securities,
Speaker 1: then they have to be regulated securities. Now that this
Speaker 1: doesn't mean they go away. Now we have securities all day,
Speaker 1: all these companies and securities. There's just a high bar there.
Speaker 1: You can't create tokens from thin air. You can't do that.
Speaker 1: Now you can go raise money, Don't get me wrong.
Speaker 1: That's basically what companies do. Right, So if I want
Speaker 1: to if I want to start Uber, I go raise
Speaker 1: a hundred million dollars and I give you shares back,
Speaker 1: and those shares are each worth a percentage of that
Speaker 1: hundred million dollars, So just so you kind of are.
Speaker 1: But there's just a lot of regulations around that. And
Speaker 1: so I think that's going to change the industry because
Speaker 1: if real investors with real money had to give that
Speaker 1: real money to a real company and maybe wouldn't get
Speaker 1: that money back for seven to ten years unless that
Speaker 1: company actually succeeded and made a profit, you wouldn't have
Speaker 1: all the wild and rampant speculation that we see right now. Now.
Speaker 1: I think this is bullish for bitcoin because bick, all
Speaker 1: these cryptocurrencies, about twenty of them are what we would
Speaker 1: call a denial of service attack against bitcoin. So in
Speaker 1: the computer space, we have these d d o S
Speaker 1: attacks where like um, the spam will span a server
Speaker 1: and it will it will flood it and try to
Speaker 1: block it out, and all these cryptocurrencies are like a
Speaker 1: denial of service attack against bitcoin. So instead of money
Speaker 1: going into bitcoin, which is a commodity of the digital asset,
Speaker 1: that's a commodity. Instead of money going in there supplying
Speaker 1: demand end, they go into these other twenty thousand cryptocurrencies.
Speaker 1: And there was two thousand, there was five thousand, there
Speaker 1: was ten thousand, there's twenty thousand. Who knows there'll be fifty.
Speaker 1: But if they all go away, most of them go away,
Speaker 1: except for the high bar of the ones that can
Speaker 1: pass the Security Act, the majority of them go away. Well,
Speaker 1: then all that money that was being siphoned into these
Speaker 1: you know, gambling tokens will find its way into bitcoin.
Speaker 1: And so that's why I said, I think the Last
Speaker 1: Bowl run of crypto but not of bitcoin. I think
Speaker 1: this is very bearish for crypto as a category. I
Speaker 1: think it's very bullish for bitcoin. And I believe people
Speaker 1: are now starting to realize, like these are not the same,
Speaker 1: and all of this money that was finance we over
Speaker 1: there will eventually find its way into bitcoin. But that's
Speaker 1: my take. If you're just tune in, you listening to
Speaker 1: the Mark Mos Show, we are talking about the f
Speaker 1: t X blow up, the cryptocurrency market melt down, and
Speaker 1: the fraud that happened because of that. If you missed
Speaker 1: any of it, don't worry. Catch me on the podcast.
Speaker 1: Just check out Mark Boston your favorite podcast player. Check
Speaker 1: me out on YouTube as well. I'll be back with
Speaker 1: more in a minute, so I don't go away.