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Speaker 1: Good morning everybody, and welcome to the Daily OS. It

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Speaker 1: is the third of November. I hope those who had

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Speaker 1: a public holiday yesterday had a good one yesterday around

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Speaker 1: the country. In Victoria we were under one thousand cases

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Speaker 1: nine hundred and eighty nine new cases of COVID nineteen.

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Speaker 1: New South Wales was one hundred and seventy three and

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Speaker 1: in the Act there were eight cases of COVID. It

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Speaker 1: was the first Tuesday of the month yesterday. So the

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Speaker 1: RBA had some news for us on interest rates, Zara,

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Speaker 1: What did they tell us?

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Speaker 2: So, the RBA maintained the nation's cash rate at zero

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Speaker 2: point one percent and this is the twelfth month in

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Speaker 2: a row that that's happened. As the expert on all

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Speaker 2: things cash ratesam, what does that actually mean?

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Speaker 1: It means that the RBA is still happy for the

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Speaker 1: Australian economy to continue to grow and recover from the

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Speaker 1: COVID nineteen pandemic. Interestingly, they'd previously said they would not

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Speaker 1: move interest rates until twenty twenty four. They went back

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Speaker 1: on that guarantee yesterday and said that an interest rate

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Speaker 1: hike could be on the horizon.

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Speaker 2: And that was all based on comment that the Governor

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Speaker 2: Philip Lowe said, which was that the economy is expected

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Speaker 2: to bounce back relatively quickly and the RBA is actually

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Speaker 2: expecting that the economy will experience three percent growth this

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Speaker 2: year alone.

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Speaker 1: In Victorian politics, Victorian Liberal leader Matthew Guy has advised

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Speaker 1: Tim Smith not to contest the next state election after

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Speaker 1: the Victorian MP crashed his car while over the legal

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Speaker 1: blood alcohol limit on the weekend. Guys said quote, this

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Speaker 1: has potentially cost him his career and you would expect

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Speaker 1: anyone in that position to not just be remorseful, but

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Speaker 1: certainly very sorry for what has occurred.

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Speaker 2: The global death told from COVID nineteen has surpassed five million.

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Speaker 2: The US alone has recorded more than seven hundred and

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Speaker 2: forty five thousand deaths since the beginning of the pandemic

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Speaker 2: and now, according to the Associated Press, COVID nineteen is

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Speaker 2: the third leading cause of death after heart disease and stroke.

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Speaker 1: And in today's good news, the New South Wales government

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Speaker 1: has brought forward new freedoms for fully vaccinated peaple in

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Speaker 1: the state. From Monday, the eighth of November. There will

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Speaker 1: be no limit on household gatherings, no rules for outdoor

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Speaker 1: gatherings with fewer than one thousand people, nightclubs will reopen

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Speaker 1: with dancing permitted, and businesses will be able to move

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Speaker 1: to the one person per two square meter rule. The

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Speaker 1: most popular show on Netflix in twenty twenty one, In fact,

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Speaker 1: the most popular show on Netflix of all time is

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Speaker 1: South Korean drama Squid Game. There's been a few different

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Speaker 1: moments where Squid Game has spilled into our real world.

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Speaker 1: I did notice a massive version of the Red Light

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Speaker 1: Green Light Doll on Sydney Harbor this week. But now

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Speaker 1: we have a different type of intersection between the show

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Speaker 1: and the real world on our hands, and it's an

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Speaker 1: economic one. A crypto coin was released online. The coin

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Speaker 1: was called squid and it was based on the popular

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Speaker 1: Netflix show. It climbed above three thy seven hundred and

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Speaker 1: ninety five Australian dollars, surging by three hundred and ten

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Speaker 1: thousand percent in a matter of hours. However, within a

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Speaker 1: five minute period, the coin lost all its value. To

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Speaker 1: talk us through exactly how this happened, what it says

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Speaker 1: about the state of cryptocurrencies at the moment, and particularly cryptomnia,

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Speaker 1: We've got tech reporter Mariah Lattice on the line Mariah,

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Speaker 1: how on Earth did so many people fall for what

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Speaker 1: looks like a scam?

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Speaker 3: So this cryptocurrency had been around since October, and as

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Speaker 3: you said, Sam, it saw significant popularity on Monday of

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Speaker 3: this week, where it had climbed to a three hundred

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Speaker 3: and ten thousand percent increase within the matter of hours,

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Speaker 3: so dramatic increase, and then within that five minute window

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Speaker 3: that you mentioned, it had plunged to a value of zero.

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Speaker 3: Twitter actually had caught on to this unusual activity that

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Speaker 3: was occurring with this cryptocurrency and actually suspended the account

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Speaker 3: of the apparent creator of this token. And there was

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Speaker 3: further unusual activity with the website of this squid currencyquid cryptocurrency,

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Speaker 3: so the website vanished completely gone off the Internet. People

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Speaker 3: are dubbing what has happened a scam, and they're attributing

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Speaker 3: this specific scam as what is known as a rug

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Speaker 3: pool maneuver. So when people speak of a rug pool

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Speaker 3: or rug pool maneuver, what they're referring to is when

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Speaker 3: the creator of a specific token or a cryptocurrency, when

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Speaker 3: they sell all of their token assets and they sell

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Speaker 3: it for FA currency, so like AUD or USD, when

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Speaker 3: they exchange it for money that then causes the cryptocurrency

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Speaker 3: or the token to crash, and so it is believed

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Speaker 3: that what happened specifically with this squid currency is what

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Speaker 3: is known as a.

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Speaker 1: Rug pool, and so it sounds like the creators have

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Speaker 1: run off with about three point five million US dollars.

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Speaker 1: To go back a few steps, especially for listeners who

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Speaker 1: might not be familiar with crypto or squid game, Let's

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Speaker 1: say you really love any TV show, why would you

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Speaker 1: buy a crypto currency of that TV show?

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Speaker 3: As we know, cryptocurrencies for the most part of the

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Speaker 3: world can't be used as an actual currency. Of course,

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Speaker 3: there are exceptions, but people tend to use them often

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Speaker 3: as means of investment, and specifically with what appeared with

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Speaker 3: this squid token, usually we would dub tokens like this

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Speaker 3: an old coin, where they are typically small currencies and

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Speaker 3: they're not one of those bigger cryptocurrencies like bitcoin. And so,

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Speaker 3: with the attached popularity of the squid Game Netflix TV

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Speaker 3: show that in itself created this significant amounts of height

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Speaker 3: associated with this cryptocurrency, So that, coupled with the general

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Speaker 3: overall hype of cryptocurrencies and the popularity of the TV show,

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Speaker 3: had this exacerbated hype, and I actually spoke to a

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Speaker 3: psychologist from the University of Adelaide called Professor del Fabreau,

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Speaker 3: and Professor del Fabreu explained to me that when the

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Speaker 3: price of these coins, whether it's a super popular one

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Speaker 3: like Bitcoin, or a well known coin like Bitcoin, or

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Speaker 3: even an old coin like squid, what happens is this

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Speaker 3: phase called the mania phase, and that this happens where

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Speaker 3: social media starts promoting the coin and there's all this

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Speaker 3: additional hype that surrounds it, and people love the idea

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Speaker 3: of making quick money like we all do, and these

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Speaker 3: specific popular coins, you can see that there's a dramatic

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Speaker 3: increase in value, and there's this associated hype with these

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Speaker 3: specific coins that people are generally very enticed to participate

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Speaker 3: in making a quick buck, but also enticed into that

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Speaker 3: hype of the pop culture aspects associated with the coin.

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Speaker 1: And that's what I found really interesting as well, was

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Speaker 1: that it says much about buying into a potential zeitgeist

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Speaker 1: moment for the world. I mean, as far as a

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Speaker 1: lot of investors in the Squid coin were concerned, this

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Speaker 1: could have been the next big art collection, the next

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Speaker 1: big stamp collection, The ticket for a New World inspired

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Speaker 1: by squid game even And that's what I find so

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Speaker 1: interesting is that it looks like a lot of people

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Speaker 1: have made decisions not based on economic fundamentals, which is

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Speaker 1: something that you and I talk about on this podcast

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Speaker 1: a lot, but based on hype. It's a really fascinating

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Speaker 1: episode of the crypto story that there's almost three and

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Speaker 1: a half million dollars lost in a matter of days.

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Speaker 3: And I think it's also super important to distinguish that

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Speaker 3: what we're referring to here is not the legitimacy of

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Speaker 3: cryptocurrencies as a whole. It's not about, you know, how

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Speaker 3: successful people are with certain cryptocurrencies. We're specifically talking about scams,

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Speaker 3: so people with malicious intent using cryptocurrencies or cryptocurrencies quotation

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Speaker 3: marks as a means to scam people. We're not talking

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Speaker 3: about the legitimacy of the various different coins, and that's

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Speaker 3: a separate discussion as a whole. Some people have been

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Speaker 3: quite successful with that, but specifically, what we're talking about

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Speaker 3: here are scams and scams that are conducted through cryptocurrencies

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Speaker 3: for sure.

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Speaker 1: And as an anonymous squid investor told a popular crypto

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Speaker 1: website quote, I lost all of what I had in

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Speaker 1: this project, and at the end of the day, it's

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Speaker 1: a human story of financial loss and it's one that,

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Speaker 1: because it's an emerging market, is equally as important to

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Speaker 1: cover as traditional financial markets. Mariah, thank you so much

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Speaker 1: for your input. If you want to read more about cryptocurrency,

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Speaker 1: we're doing a bit of a deep dive this week.

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Speaker 1: We've covered off the psychology and now we're going to

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Speaker 1: look later in the week at the government's regulatory responses available.

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Speaker 1: That's all going to be over on our Instagram. It's

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Speaker 1: the Daily OS on Instagram. You can read up on

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Speaker 1: the day's news there. It's where over two hundred and

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Speaker 1: seventy thousand ozsies get their news every day. We cover

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Speaker 1: everything from aikak to crypto and we'd love to have

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Speaker 1: you on board. Have a fantastic hump day.