The ETH ETF approval and the shift in US crypto politics

Transcript

this might be the biggest day the biggest week in crypto it happened it happened everybody let's go let's go the eth ETF has been approved in the US the political backdrop has completely changed we started this year we didn't know what was going to happen Gary gendler was on a crusade against us Biden was going anti- crypto with his administration and now it seems that it's completely 18 in one week what is going on what does it mean for the markets what does it mean for your bag we're going to tell you today well this is just going to be a wild episode Jay

look we're going to mainly talk about eth obviously we're going to talk about what's going on in the political world as well cuz there's tons there we're going to be cheersing I don't know about you Jay I'm having a beer I just opened up you can see on the screen I've got a nice fresh cold Imperial as I'm in Costa Rica so that's the the local beer what do you have Jay I got an espresso got anpress J got an Espress so we actually held off on recording we usually record the morning it is now I don't know just we just got the approval we wanted to wait and make sure that this happened before we recorded so we can get you the most up toate information as you listen Friday morning to hear what's going on we're also going to talk about some craziness going on the pump. Fun World

with the hacker we're going to talk a little bit about Jupiter and them trying to bring everything on chain Crypt Punk's biggest fail a bunch of stuff that you probably missed this week because honestly everything that we were paying attention to all week was the eth ETF but before we jump in a quick announcement next week May 29th we are having an AMA and I'll bet you you're going to have a lot of questions coming out of this week and heading into this weekend because things are going to be happening so we got an AMA this AMA is only for pro members it's happening in our Discord so if you're not a pro member click the link in our show notes and go pro before next week May 29th 12:00 p.m. Eastern in the Discord you

can bring your questions Kyle myself and the whole milk Road team will all be there to answer all your questions and make sure that you feel good with your bags with your Investments and you're ready to crush it in the coming months because yeah there's some opportunities to make some money that is for sure inside the the Discord is a form that you can fill out and get your questions asked now and that way we'll get them into the session next week and we will be sure to answer as many as we possibly can so if you're not yet Pro Go Pro we also were telling you to get some eth I think we put out a whole Pro report on eth last month and said we still believed that the ETF was going to get approved even when everyone else said it wasn't and we were damn

right feels so good we didn't actually say for sure we just said it was odds which by the way we'll talk about that too let's get this started okay let's jump in first up we're going to skip BTC price chart usually we start with BTC but we're going to skip we're going go straight to e Kai what is going on with eth this past week well if you look at this chart right now the last like I got the daily chart on this is the daily chart that's up here right now yeah right the last couple hours have been absolutely wild obviously the news broke on Monday and so that's when eth just jumped from it was about 3,000 it's currently sitting at almost 3,800 it was a wild move in on Monday and then we sort of stayed flat as everyone wasn't really sure what was

going to happen and then now with the approval today it was supposed to get approved at like 4 p.m. EST and it right at 4 it didn't get approved and everyone started selling and so we went down to like 3500 and then people weren't really sure and now it's approved and we're sitting at you know close to 3,800 so people like to buy and sell real fast no one has seems to have conviction but either way all is good because the spot ethereum ETF was just approved by the SEC literally a few minutes ago as we have clicked record here Jay you want to break down the beginning of this yeah we've done it this is super exciting so let me pull up here the official announcement from the SEC where it basically breaks down that they

have under rule 19 B4 which allows them to allow exchanges stock exchanges within the US to offer these commodity products to retailers they're saying this is official it has been approved and it is go time baby we are on it's time to happen I'm just trying to look here Kai on who got approved we've got basically all of them yeah gray scale bitwise I share so it's all the ones that have been applying in in REI in refiling so we don't know the I don't know the numbers yet but it's five six seven of them basically everyone is getting improved and they're doing it

all at the same time now reminder these are not live today we still don't know what that is it could take days to weeks the best guess there's just a report that was put out saying probably in July is when these start we'll see it could be faster but we don't really know at this point all we know is everyone's getting approved it's all happening probably at the same time they are put under the commodity rules not the Securities which is huge we talked about that in our episode earlier this week and all of them have no staking so there will not be any staking for any of these but that's all good we just wanted to get these things live the staking will come in the future for now we just need to get these things approved yeah it' be interesting to see how long this is going to take I know

you said July here I've got James safe art saying that he thinks it could be a couple weeks but it could take longer but we will know more within the next week so definitely next week keep an eye on the newsletter and on our podcast because we'll be keeping you guys up to speed on when we can expect the actual ETFs to start be traded by these institutions and we're going to talk about in a second what that means for inflows and what we predict will happen but first Kai let's just take a step back and talk about odds for a second here because our C Tob some confusion this week so we started this week before this week we are sitting at about 25% odds of the ethereum ETF being approved

clearly it's now been approved then on Monday there was a big switch as a lot of people started to speculate that it was going to get approved this week and it moved to 75% odds of being approved and so a lot of people were confused because when it was at 25% people were saying well why you were wrong it's going to get approved and then when it moved to 75% people were saying well it should be 100% because it's clearly going to happen now what's theion here this is the Bloomberg boys Eric balunas and and Jeff who they put out these predictions and by the way they have been extremely helpful guiding everyone in the crypto world who had no idea about what an ETF

is or how this process works previous to bitcoin so they've been absolutely amazing and they got just ripped on Monday because they were once at 25% they moved moved it to 75% everyone's like oh you can't just change the goal post that's how odds work that's the whole point right from the data they had in that moment it was 25% doesn't mean it's not going to happen everyone's like well now it's happened so you guys were wrong they said there was 25% chance it was happening so that that means that they were right they just said it wasn't a good chance which was also very much right it was not looking good until Monday and then just because we got word that hey they wanted them to refile that doesn't mean it's going to get approved either it's nothing's 100% And so they went to 75 and this is is just how odds

work I'm surprised how many people are just kind of missing this and not understanding that if you say it's 25% chance of happening and it happens you're still right you know what I mean like I just don't get how people can't quite understand that so anyway thanks to Eric thanks to Jeff you guys have been just incredible to guide us through this and to be fair this was a wild turn events I'm not sure that people are really understanding how big of a deal this is like this was a basically a for sure zero they they even said they actually wanted to put it to 10% but they didn't but this was not what Gary Gensler wanted this was not going to get approved and then something happened over the weekend of last or on Monday that just changed the tune and we'll talk a little bit about what's happening

in the political world just a second but um we believe that it this was the I don't want to say the president exactly but this is something to do with the political movement that has changed the course of the sec's decision here okay before we move in on to the political situation because there's a lot to talk about there and what happened this week that led to this but there's some other news as well out of the US house but first Kai what do you think we can expect to see in terms of inflows that's going to be the big question that I think everybody's going to be asking over the next week is when this does go live how much of this ETF is going to be bought in comparison to bitcoin which obviously has been massive

over 13 billion dollars in net inflows so far 20 billion in Gross inflows to date yeah it's I mean it's anyone's guess at this point it's really tough to say Eric balunas has a tweet up here where he says maybe it gets about 10 to 15% of the flows of Bitcoin which seems pretty good I said on the show earlier this week maybe around 30% due to just looking at the comparison between eth e and gbtc the great scale trust that that were live well before the ETFs my ballpark is probably somewhere between 10 and 30% it's just really tough to say because I just don't know how much institutions really understand what eth is just yet it also kind of matters about what's the backdrop here in terms of macro if rates start coming down by July and that's when we turn this thing

on or or maybe we turn this thing on by August when the all of a sudden we can trade and rates are down and inflation's down it's not an issue like we could blow these numbers out of the water from what Bitcoin did because Bitcoin did this not in the greatest macro environment right and so like it really depends a little bit on okay what do the institutions already know about ethereum and I think many of them are still trying to wrap their heads around it they're they're actually really just trying to wrap their heads around Bitcoin at the moment so there's the education side of it and then there's like what happening in markets in general we've obviously been in a lull for the last few months this has really moved things up a notch over the last week or so but now it's back to macro

what what's going on with macro and if we're in a risk on environment eth is going to do really well and I think the ETFs will do well the only other points I would say is in terms of do institutions really understand eth somewhat it's more complex so there is a lot to understand but it's also a little bit more simple because they have revenues and they have you know fees and expenses if you understand that side of how blockchains work smart contract platforms that is it's kind of a kind to like a an app store or Google Play Store so like they have ways of valuing this where you didn't really have that with Bitcoin as a store of value and so I don't it's hard to say are they going to know it or not I've heard a lot of people say when they talk to

institutions about crypto they kind of get ethereum right off the bat because it just sort of makes sense whereas Bitcoin Is this different asset something we've never really had before so anyway we'll see kind of what happens there it also depends like will a bunch of people want to hold ETF or will they just go straight on chain so they can get the yield that's the thing that I don't really know either way this is massively bullish for ethereum for the whole crypto space and it really just legitimizes this and I think it makes it more acceptable for Brands and companies institutions to start you know coming in and buying eth sure but also using eth and building on eth and I think that's going to be the biggest driver of this ETF more than anything it feels silly to go to the Bitcoin chart but let's just

take a look at Bitcoin over the last week what's going on here yeah Bitcoin sitting at 67,000 up 2.23% on the week which is kind of funny I mean it was down pretty bad though we were having a rough start to the week and then obviously with the news it jumped up to over 71,000 and now it's currently sitting at 67,000 so eth is still dominating or is dominating this week so far salana had has had a wild week as well it obviously jumped on the news originally and then it sort of pulled back gone back down to about $168 today and it's pumped on the EF news as well currently sitting at about 178 and up 11.67% of the week so still doing pretty good although eth has obviously blown those two out for this week so I think eth has its moment for a little bit here

as it's been the one lagging right everyone's been talking about Bitcoin and salana not much has been said about ethereum and now ethereum is going to be in the spotlight for the next little bit here leading up to whenever this thing goes live the other chart I've got up here is the total crypto market cap which uh if you look at this over the past week up almost 7% on the week now obviously most of this was driven by eth which brought over a 100 billion uh in market cap in when it jumped up its 20% earlier this week week but that's not all everything all all boats are rising with this tide right now yeah I mean ethereum was sitting at around 2 point was it 2.2 is or 2.2 and a half trillion or sorry the total crypto market cap was

sitting on there at the beginning of the week and then with the news obviously it jumped to close to 2.6 it's now sitting at 2.47 trillion so it's gone up a few hundred billion since Monday which is huge eth brought about 100 of that but of course eth ecosystem tokens have just been lights out over the as well I haven't opened up my coin G could to see what they're doing right now but Jay's got a list up here this is from I don't if this is live or what but Pepe up 46% on the week Lio up 30% Unis swap 26% Athena 28% you know there's just everything is going off look Tok are going nuts yeah so it's been a it's a wild I mean this is because obviously if eth is doing well then its ecosystem tokens are going to do well but more

importantly you got to look for a lot of these protocols earn Revenue in eth and so just by eth going up 20% in a day their revenue just went up 20% right and they sound like they got more users and more activity from that although they will because the more eth goes up in price the more people will transact and do things on chain and so some of these tokens or some of these protocols let's say when eth goes up in price their revenue goes up more than that so if eth goes up 20% their revenue goes up 20% just from eth but then also for more activity more users coming on that chain so they can be thought of as beta plays you got to spot those ones but there's a bunch of them that do that right now plus their treasuries a lot of these

people a lot of these protocols hold eth in their treasuries and if eth Rockets their treasuries go up which means everyone in the spaces has more money to do other things and a lot of times people will go down the risk curve and invest elsewhere so let the good times roll okay let's go over to a lot of political news that happened this week so first up the week started off with the FDIC chair Martin gromberg resigning now Martin was the one that was behind operation chokepoint 2.0 which was aimed at really targeting the crypto and digital asset industry and affecting the space as a whole from the political side

so him resigning and stepping down was sort of the first Domino to fall this week happened on the same day that happened on the same day as all of a sudden we had the speculation around the ethereum ETF approval going through so it was like two things came on Monday and we're like okay this is a weird start to the week like what's going on here and then we had and then we had the SEC has been trying to pass Sab 121 which is their law that will enable will not enable Banks to custody crypto and what happened was last week we talked about this and Biden said that he would veto this if it passed through

well it did pass through both the house and the Senate and Biden has not vetoed it yet we've all been watching and waiting to see would Biden veto this hasn't vetoed it he does have until May 28th to make his decision on this and it seems likely that the political really that the democratics have pulled a big political shift here and switched from being anti- crypto to proc crypto so all positive signs for everybody and this is a pretty big deal I mean we talked about we'll see what Biden has had to do but we talked about this one last week where this is what allows Banks to custody crypto assets and that's going to make the ux of using crypto not using crypto but holding crypto much easier for

Boomers institutions Etc obviously the ETF help with that a lot but soda is just allowing where all the money already is which is in banks at least in the US and in Canada Etc you know if we can just use that rate in the banks themselves and it's going to be much better and so that's what we're trying to do here B wasn't going to allow that seems like he's going to now so that's a pretty big deal but there's one more big deal that's happening too in the regulation side of things probably the biggest deal of all is the house has approved crypto fit 21 this bill has passed with a wave of democratic support look the biggest thing here is this was a really bipartisan movement that happened seemingly out of nowhere when everyone thought that the Dems were

going to go against this bill a lot of them cross party lines in order to support this bill and this bill itself the objective of this bill is to establish a team that will regulate the US crypto markets you did hear that correctly we've all been asking for clarity for so long and they are finally going to give us Clarity it also defines responsibilities between the SEC and the cftc and it makes the cftc the new leading regulator of digital assets so under this bill the cftc would have primary oversight whereas up until now the C the SEC and the cftc have basically been fighting to

try to say hey these are is my job to regulate this no it's my job to regulate this now what this means when you really get down to the Brass tax is that BTC eth Soul likely soul and most layer ones most blockchain networked assets are now going to be labeled as Commodities and they will fall under the cftc doesn't mean the SEC loses all jurisdiction they will have some jurisdiction but it'll be limited tokens that basically give Financial interests such as equities or debt or dividends to through their business entity so a lot of the application tokens we don't know as things like let's say Unis swap for example but what we do know is like blockchain native assets that's your BTC

your eth your soul your near whatever these things that are selling block space those are going to be on the CFC those are Commodities which is huge I think there's a lot of lawsuits right now actually the SEC with coinbase and Kraken Etc that have salana for example or polygon as as security and I guess that's going to probably go away I don't know how that works in terms of the lawsuits but this clears up lot now to be clear this isn't like a done deal yet the vote is done but what happens here is we still need to make the legislation or the make the rules right we have some guidance on them but then they need to go and actually like fill everything out and so like it's not a perfect setup yet but this is the right step in the direction and so basically this week

though we've just everything I think we put out a thing in um a newsletter in milk Road on Monday saying like the top five things to look for and it was you know EF it was the fit 21 bill it was the Sab whatever that was called and we've just nailed them all somehow we're just checking them off I don't know what's happening but everything seems to be going our way this week and this is just this is massive momentum for the crypto space yeah I think this is probably the biggest week ever for crypto Reg ulation in the US put this date on your calendar history books will be talking about this and to cap it all off the Biden Administration actually put out a statement that said that they're going to work with Congress to create a balanced regulatory framework for digital assets so even the Biden

Administration is changing their tune and they're not the only ones that were excited about this we had Brian Armstrong getting in on the party he was celebrating as well pointing out that 71 Democrats of voted for fit 21 he thought that it would be somewhere in the range of 20 to 40 but seeing 71 cross really shows how much these congressmen think congressmen and Congress women think that crypto is an important uh piece of their voting and they're willing to do what they need to do for their constituents and vote in favor of this so big step forward and then we also had Mike dudis founder of the block say this is great flood GES

are open Americans love crypto the politicians understand that their constituents love crypto day one it's really is day one for the US it's such a big step and I don't know that people realize there's so many Founders that have had to move out of the US in order to run a company in this space which is just unheard of and unbelievable a lot of VCS that are giving Capital they're actually looking like hey are you prepared to move out of the us or do you not live in the US they want to invest in non us companies that it's not changed fully yet but it's starting to change and obviously the US is very important in terms of innovation they've got silicum Valley they've basically built the internet in terms of everything we use in the internet and it's a lot of people and a lot of

resources that we want fighting for crypto and pushing the crypto industry forward and there was a little bit there we were like are we gonna have to leave the us behind and do this stuff on our own we're gonna have to move all over to Europe or wherever El Salvador and it looks like no the us is going to be a part of this now we'll see where things go but things are looking really good right now so this is a big day I'm really excited yeah I think when we step back and we look at this is the turning point where obviously we're going to finally get the clarity that we need that we've all been demanding for so long as you said Kai that Clarity is going to lead more Builders to be able to build the products that need to be built in order

to take crypto the mainstream but also this is going to allow more big players to enter the game there's a lot of big Enterprises that are sitting on the sidelines right now right Apple Google Amazon Netflix all these large players they're scared they don't want to it's not worth it for them to risk coming into crypto and blockchain when there's no clear regulation well what happens once there is clear regulation they join the party and what happens once they join the party you guaranteed the whole world retail follows suit because everyone's like oh you guys trust that well I trust that as well and it's also been interesting to see the way the political Tides have Shi shifted so fast

Kai we talked about remember I don't remember if it was the last week or two weeks time is so so funny in crypto when Trump held that rally and he had who did he have he had Ryan selus and one of the founders of polygon on stage with him talking about crypto and obviously Trump was Shilling his nfts at the same time which is hilarious but that seemed to be maybe like do you think that I I think that might have been the Catalyst like Biden was seeing we going into an election Biden saw that Trump is you know really going hard on crypto and Biden's sitting there being like am I going to lose this election because I didn't support crypto like no like that's a stupid thing to do and so he switched his tune and here we are wild

times wild year but I mean hey if you wanted the perfect setup for this bull cycle people are saying are we at the top is this cycle over guys we've got macro still is just getting cleaned up inflation's coming down interest rates still waiting they're still high so when those come down you bet that we're moving into risk environment and now not only we going to move into risk environment from macro side of things we've basically got the approval to do it from the US so you talk about what's going to be that Catalyst that drives this next stage of the bull market well uh it's here guys um so pack of bags get ready it's going to be a big big let's say 12 to 18 months gety up baby crypto will go up more than 100x in both users and value over the next decade if you're

listening to this right now you're extremely early and have an incredible opportunity to capitalize at milk Road our mission is to make you smarter about crypto crypto that's why we're doing today's podcast and why we send you a daily newsletter for free but if you're ready to level up as an investor then let me tell you about milroad Pro we crafted this resource for investors who are already smart enough about crypto and are looking for more actionable insights on how to invest successfully in one of the fastest growing Industries on Earth every week we break down the latest trends dive into tokenomics of popular and upand cominging tokens and get into the Nitty Gritty of market analysis all to help you invest smarter plus we have a private Discord Community for pro members it's like your backstage pass to the milk road crew exclusive insights Hot Tips and live amas with our

team now if you're looking to level up as an investor then click the link in the show notes below and sign up to Pro today don't let this bull market opportunity slip through your fingers all right next up we are going to talk about an exciting story out of Jupiter this week that is the giant unified Market initiative also called the gum initiative Jupiter I run a marketing agency if you want to talk I'll help you with your branding here but that aside this is super exciting news out of Jupiter let me tell you what this is so this is a Alliance basically that aims to bring all assets onto salana so I'm talking meme coins I'm talking real world assets I'm talking stocks Commodities and this gum Alliance

includes many top Partners within the salana ecosystem who are already aiming to achieve all these things independently and Jupiter has always had this mission of becoming the everything exchange basically being one single Marketplace that is accessible to everybody in the whole world where you can do anything from purchase US Stocks such as apple or coin you can buy real estate you can buy US Treasury which could yield you a 5% yield uh you could provide liquidity to different markets all these things all in one place and that's what The Gum Alliance aims to do and I think a lot of people missed this

week Kai but to me this was super exciting news because this is aiming at achieving really what we've all been talking about from the beginning of not just bringing the monetary system on chain but bringing all real world assets on chain as well and here we are seeing it happen well not happen this is them saying they're going to look to achieve this in the future but a first step in that direction from Jupiter and uh very bullish on them and Sal right now yeah I mean Jupiter's a a beast of a project what they're doing their their protocol is amazing and so all the kudos to Jupiter gum is a weird name for whatever this thing is I don't really understand

but I get what they're trying to do of course I think that's super cool I think it's gonna happen hopefully it happens on Jupiter but we'll see we'll see what happens how good this Alliance actually does I have no idea yeah I think that it makes me think about almost what x is been trying to achieve and what Elon has been talking about which is like the everything app right and Jupiter is trying to be that same thing but for all assets and right now when you think about it if you want to buy all these different types of assets you have to do it in such a fragmented way yeah think about the world where everything you buy is all and can all be swapped for each other whether it's stocks crypto real estate Commodities it's just all in one

platform permissionless and you just like you could swap your stock for your real estate your real estate for your Fiat and it's just there's no fees it's permission it's a wild world whenever we get there I think it's a long ways away but it is going to be really really cool and the world is going to change a lot whenever that happens like liquidity is going to be moving at the speed of light and that's really the purpose of what Salon is trying to do super cool and and opening it up globally that it's cross border now and then enabling anyone to participate without kyc when we talk about how much of the world is unbanked because they can't access it just simply because their government doesn't have the proper infrastructure to allow them to enter the financial system the way

the rest of us can yeah I just I think initiatives like this they are what we are all here for from the beginning so yeah shout out to Jupiter Sher the team big news and excited to see how this goes I'm certainly going to be following along closely and we'll keep you guys up to date let's stick with the rwa theme and I want to go over to coinbase here Kai something thing I think some people missed this week was coinbase announced that they are launching retail sized oil and gold Futures on June 3 further progress towards Commodities coming on chain and rwas being available to everyone yeah basically what we're talking about right like coinbase you

can already buy crypto you can put your feed on there kind of like a bank and now they're going to allow I mean it's just Futures so it's not really what we're saying but they're having other things that you can trade on their platform so coinbase looking to be more than just crypto which makes sense everything is merging into one trafi crypto it's all kind of merging together like we don't have internet companies anymore we just have companies it's merged right and the same thing's happening with crypto coinbase though absolute Beast right now and they are they're way more than just a crypto exchange I think a lot of people sleeping on that they are becoming a bank and they are becoming a NASDAQ like exchange like they are becoming just the place where you're going to put your money to work and you're going to swap

and trade everything similar to juper the difference is it's a centralized exchange and Jupiter is a decentralized exchange so how's that going to work how's that going to play out I think there's room for both we're not going to go fully decentralized exchanges all the time like now or even in the next years to I don't know how long it's going to take to get fully on dexes and coinbase is going to cannibalize their own company I think with base and probably putting everything they have on chain but it's going to take a long long long long time for that to happen Okay let's jump to the next story which you might have missed earlier this week this actually happened last week but if you're subscribed to the milk Road newsletter you didn't miss this so if you're not subscribed to the milk Road newsletter you're going to want to

subscribe because these are the types of stories that you just don't want to miss and I'm talking about pump. fun and what happened with their hack this week let me bring you up to speed on what happened here Kai so that you're in the know and everyone else listening as well okay so first of all pumped up fun last Thursday was hacked for about $2 million now this hack revolves around a former it was done by a former employee whose name is stack that's his name on Twitter now this former employee recently lost his mom and he actually got kicked off the pump. vun team so there's a little bit of clearly you know he's struggling with some mental health issues because

he lost his mom sorry that you lost your mom my man but also he got kicked off the team so he's probably got a little bit of a Vengeance and wants some Revenge against the Pumped off fun team so what does he do uh he goes and he steals about $2 million from a hack that he completes and then he puts up this tweet and this tweet as you can see here on screen Kai got about two million views and here's what he says he says and now magic everybody cool this is a robbery what it do stack attack I'm about to change the course of history and then rot in jail am I Saye nah am I

well very much not do I want for anything my mom raised from the dead and barring that life without parole sticking this here now if stack winds up dead it was not a suicide I will tell you this whoa whoa so this guy goes public admits that he stole the 2 million and talks about all this online he's clearly is really struggling I really feel for this guy he's having a real mental crisis here and I'm not trying to bring this up to make fun of anybody who's lost a parent horrible situation to be in but he's also really taking this to a bit further

he then goes on to basically accuse his former bosses at pump. fun of not being sympathetic to him losing his mom which is why he was then let go from the pump do fund team he then proceeded to airdrop Soul tokens to tons of people around the crypto ecosystem basically saying that he was kind of acting like the Robin Hood of crypto and then he when asked about the hack he starts to talk about how the founders withdrew two million from the treasury the previous day so the day before he did the hack sealing to 2

million these numbers are clearly not a coincidence the founders withdrew 2 million and So He suggests that they should have to pay for the hack themselves themselves he then demands that the founders pay $100,000 out to every non-founder of pump. fund who had ever contributed and then he threatens to burn all the funds if his demands aren't met you just you can't make this stuff up and then where does this all end on Saturday stack was arrested by British law enforcement and he's now in custody and you want to know why he was arrested because he was on Instagram posting that he was in a strip club in London which obviously the cops saw his Instagram and they were able to find

him uh a wild tournaments you know what what worries me the most is just seeing everything that this guy's written who are these people that are working at some of these protocols that we're trusting and putting our money into uh there's nothing to say against the pump. fun team I have no idea who works there I've never met anyone from that team but this is not who I want to be building the protocols uh that I'm going to be trusting and putting my money into a wild situation but this is the that happens in crypto it's just it's so crazy to me that the number of hackers that seem to complete a hack and then go on cryp on crypto Twitter and then talk about it openly just unbelievable like you you realize that what you did is illegal and you could be arrested don't you what are

you thinking it reminds me of I gotta make a Canadian hockey reference here Kai it's as if these people think that they're in a hockey game where in a hockey game you can punch somebody in the face and you are clear from legal action for any of the damage that you caused that person so it's as if these guys think they're in a hockey game but you're not this is not a game this is real life everybody come on what are you thinking nice Canadian reference there okay let's go to in case you missed it there was a in case you missed it there was a lot so week holy jeez I everyone missed everything I mean every story you said you literally start off with think most people miss this one was kind of funny because literally there wasn't much pay attention to other than

the EF okay first up in case you missed it crypto punks dropped a new collection called super Punk World Kai what was your reaction when as you can see my face is or my hand is currently covering my eyes right now it's terrible if you have seen this art it is so bad I don't even know I can't even explain it honestly it looks just terrible if you guys watch on YouTube or if you're listening on Spotify just open up your app we have it on the screen right now I don't know what this these guys should be thankful that the EF e ETF thing was going on this week because this didn't get as much coverage as it should I'll let you finish the story it it's just so

bad they got a whole bunch of flak for this they look they engaged an artist who who was aiming at creating a new collection that celebrated diversity and was in line with the woke movement and instead it landed completely flat and really had a lot of people thinking like what is yugal laabs doing and is it a shame that yugal laabs owns Crypt punks which really is one of the most important nft collections in our space and are they going to ruin it I don't know I just this is very it just scares me to see what ulabs is up to I saw a lot of a lot of punks holders on Twitter saying that's it for

me this is ridiculous the price is down real bad it is down to it's at 35 eth which is still pretty pretty wild it's almost 100K but maybe it is 100k I can't do the math right now but anyway it's actually this $127,000 is the floor which is still super high but when you consider that it was pretty much it had not really dropped below 50 maybe it was like 40 e but there was reached 125 eth in October of 2021 geez wild I mean the thing with punks is it's meant to just be there is no Community around it's not meant to yeah just art it's just was one of the first well was the first pfp to ever really come across and that's what makes it cool you don't do anything else with it

that's just that's what everyone wanted was like just don't touch this thing anyway all right next up in case you missed it Craig Wright is not soshi Nakamoto no surprise here Craig Wright was found guilty of mass forgery of documents for years as he attempted to convince the world that he is Satoshi Nakamoto he's not we still don't know who Satoshi is and you know what honestly I hope it stays that way yeah agreed I think it will for those of you that are new in the space of no idea who Craig Wright is he's just this guy that has been in crypto for a while and he decided one day to say that he is the guy that started Bitcoin to Nakamoto and I guess through Court they've decided

it's not him everyone in the industry decided it was not him a long time ago so like this isn't really matter but screw that guy okay next up in case you missed it farcaster raised $50 million backed by Paradigm this week an absolutely massive raise this is at a $1 billion valuation Kai and wow is it really I was just GNA ask that great comparison here is do you remember remember who else had a 1 billion valuation early on in their history sold to Facebook for a billion dollars and let's look at the numbers here when Instagram sold to Facebook that was in 2012 Instagram had 30 million monthly active users how many users do you think

farcaster has and I'm not trying to rip on farcaster I like farcaster let me just C 100,000 maybe monthly AC less ,000 50,000 daily daily Act users so like monthly versus daily but still they're not even in the same ballpark so two takes here either a lot has changed since 2012 which yeah okay sure it has a lot has changed and valuations have gone up a lot for Tech and but also I would say the real take here is that there is much bigger potential for open networks and protocols versus an ads based business like Instagram yeah I think it's just the dollar's worth a lot less to be honest like a billion dollar

valuation which used to be the Unicorn is no longer a unicorn thing anymore so that's my take fine just slam my take why don't you okay next step Unis swap responded to their SEC Wells notice this week with one of the best lines I've seen in a while they said the SEC is not the world internet police Amen to that see you bye next up the grayscale CEO Ste down this week a surprise nobody saw this coming really a surprise considering gray scale's success and they are one of the most important crypto institutions in the world and you know what's really

interesting is who's going to replace him is the an executive from Goldman Sachs Peter mburg who is a trafi guy so we got a crypto institution that is bringing in a new CEO from the traire world very interesting to see we talked about last week how Vanguard CEO stepped down and they're replacing him with a crypto guy so yeah go both directions this one I could as much as they are the most important and one of the biggest without a doubt they also just created the record for the longest day straight of outflows for an ETF by a long shot and the most amount as well like billions of dollars of outflows which has just never happened in an ETF before and it happened because there's a lot to

it this was a weird one with the court case etc etc but they did come in with a like 1.5% fee or two whatever it is versus every other ETF is like minuscule 0.15 or whatever so it was obvious these outflows would happen it was a weird move by them but obviously they made a ton of money from it so I wonder they lost a lot of customers from that and I don't know was it his decision was it not his decision I have no idea or was it just everyone's decision and he's just got to be the guy that takes the Reign for it and Away you go don't know but hopefully this TR five guy is cool not a boomer okay next up in case you missed it the Venezuela government has seized the Bitcoin mining that is facilities that

are currently set up in Venezuela and cracking down basically saying Bitcoin mining is no longer a thing in our country which there was a lot of Bitcoin mining happening in Venezuela you know why because the cost of energy in Venezuela is quite low but what all these Bitcoin miners clearly didn't anticipate is it's also a government that is not a predictable government and can do things like this in an instant there's a video that if you want to if you're watching on YouTube you can see the I don't know if this is the president of Venezuela or some Minister I'm sure standing in front of a bunch of army officials like holding guns like AK-47s and then they're surrounded by

just like server machines like it's unfortunate because the Venezuelan I think it's peso or whatever it is inflating away like crazy so like Bitcoin is a big solution there they obviously have a huge financial problem but the problem is they also have a energy problem in Venezuela and so obviously Bitcoin miners use a lot of energy so that's the real reason they're doing this I don't know if it's because they care about the financial side although I'm pretty sure they're they care about that too but it kind of sucks there's like just a lot of problems going on in Venezuela and the one solution is you know if we can mine some Bitcoin get Bitcoin in the hands of the citizens that would be pretty helpful but they're not down with that unfortunate to see for sure okay next up in case you missed it there was

a exciting pilot program that happened this week between the finished this week between Edward Jones Franklin Templeton JP Morgan and US Bank and and about six other Banks some of the largest banks in the world partnered with chain link to test out using blockchain to store data that the dtcc uses in order to settle most of the Financial transactions that happen in the US for those who don't know the DTC dtcc is responsible for settling two about 2.5 quadrillion dollars in transactions every year and they do this mainly by needing to share various

documents between asset managers so like the idea here is that rather than share these documents between asset managers in these current ledgers that they use and these old archaic ways the idea is to store this relevant data in smart contracts on chain using link chain links token as the central Source between it all look very exciting to see these types of this news kind of really I don't think anyone saw this news but very exciting to see how much the trafi world and these banks are embracing blockchain they're doing it slowly they're doing pilot tests but this had a lot of positive results and a lot of the

saying yeah there's some great use cases here for blockchain we'll take it we'll take it okay let's go to agree or disagree Kai one of our favorite segments of the week first up here we have from Tangen he says unlike previous Cycles this is the market where you don't want to be portfolio heavy and alts if you can help it the majors BTC eth Soul are outperforming significantly on a risk adjusted basis it's easy to see why the Trend will continue institutional bid I don't think that I agree with this uh I think alts are going to do just they're going to go absolutely nuts but the thing that everyone is missing as we talk about

almost on every single rollup episode is these people are confusing how the Cycles work we've always said it goes Bitcoin then it goes eth then it goes alts and for some reason people think that we just need to obliterate through that and it happens in like a couple days and Bitcoin did really well so all a sudden it's Ethan and it's Al it's like no guys we had our Bitcoin we're still only about halfway through the cycle eth is coming was already happening this week and Same Soul along with it and soul has been going along and has actually done really well which is also funny because Soul wasn't a major at the beginning of the cycle it was an alt and now it's major because it did so well so obviously he's missing something there and then I think after eth has its moment for the next little

bit here I think alt are going to do really well although you're already going to see the eth tokens as well are just absolutely skyrocketing too so I think I I know I disagree I I think you just need to give it time Bitcoin then eth then alts we're not at that part of the cycle yet where everything just goes ballistic we're still working our way through there rates are still high macro is still not cleared up we are not in that 2021 era that we had last cycle that's coming and in that moment is when you damn well better be holding some alts because those things are going to go absolutely ballistic but yes as I've been saying hold B Bitcoin hold eth hold Soul because these are important at this point in the cycle it's so easy to think that we skipped eth and alts because

meme coins have also ripped so early and so I think there's a lot of people that just buying this narrative that like we're skipping Ethan Al in this cycle which as you said makes no sense be patient everybody be patient it's coming okay next up from Daniel God hits he says the difference between this cycle and previous Cycles is last Cycles on a day like today and let me be clear on the day like today is Monday that he's referring to when the speculation around the eth ETF changed from 25% to 75% on a day like today fomo running hot maybe a couple people couple rich people aped in a few million bucks today Wall Street is

clicking buttons and buying hundreds of millions of crypto in seconds not the same there were institutions buying a lot of crypto last cycle to obviously it's at a different level with the ETFs now I sort of agree the behind the scenes is is definitely different but it's all kind of the same whether it's institution or person they all have fomo they're all buying with speculation and so money's moving around but yes there's bigger money moving around which is what allows Bitcoin and ethereum to still move at trillions to hundreds of billions of dollar of Mark caps you need that bigger money to move these bigger assets yeah I agree I agree disagree I don't know I don't know if you fully agreed with that one Kai that's okay that's okay okay next up edgy the defi Edge says all you had to do was chill

and not up the past two weeks starting to think being able to sit still is an edge oh man this is like the biggest Edge if you can and this is what no one has in today's world if you have some patience and you can buy an asset and then not touch it for two three years even longer in crypto if you can hold it for five ten years you've done better than basically anyone who's tried to trade this stuff so like anyone who bought Bitcoin in 2010 did better than anyone who tried to trade around these Cycles because these Cycles are nuts and moving in and out of all these ridiculous assets are nuts if you just hold Bitcoin since its beginning or hold eth since its beginning or hold salana since its beginning like you would have done better than most investors in any

industry ever and so it's just buy and hold build some conviction and then don't do anything the more you do the more you up that's I think this is I agree more than I probably ever agreed on anything Jay so so long as so so long as that asset actually has a use case is a good asset saying that I'm thinking about nfts which you know a lot of people held and those haven't done so well but they weren't they weren't they still shouldn't they are still growing businesses that are trying to figure it out maybe they come back a few of them will most of them will not right memecoins also GNA see big rise gonna see big fall because they're not legitimate businesses Network effects

just exactly okay next up qw says there's no doubt in my mind now that moving money across the globe via stable coins is is the least sexy yet by far the biggest and most real use case of crypto yeah it's basically whenever people ask me like what is the point in crypto I always go to stable coins now it to me is the most obvious use case it is the thing that basically solves a problem for everyone in the world now not every American especially Americans that don't leave the US it doesn't solve a problem for them because they have venmo but if you're an American that goes anywhere else in the world or you're anyone else in the world basically or you're anyone in the world that travels to anywhere else in the world stable coins is the best there's

billions of people that want access to dollars that can't get it there is ridiculous fees and remittances to send money from one country to like to your family and other countries take some of these companies take like 30 40% can you believe that it's absolutely nuts and then just like the fees and not even just fees but the time it takes to send money from one country to another is absolutely nuts the thing I always explain is I can pack my suitcase with $99,500 in US Dollars and take it to Europe faster than I can just send it digitally which is just take it on a plane faster than I can send it digitally which is nuts in 2024 and so stable coins is the solution to all this and it already exists it already Works we're already there and so it's so so so obvious and

so it's the thing I'm most bullsh on by far you you could take more than $9,500 you just wouldn't be able to do it legally you would be doing that's thing that's why you picked that number okay last one Dees defi says born too late to explore the earth born too early to explore the Galaxy born just in time to watch crypto change the world I love that that's nice although I don't know I've been exploring the Earth for the last five years as a nomad and I think I love it so I don't know I don't think you're too late at all to do that I think you know maybe first he means being first to explore you're saying

yeah yeah yeah I love this one I just happy to be here to be a part of this crypto Revolution that's what excites me the most so I agree 100% And we are happy that you're here with us too Kai and more importantly we're happy that every one of you listening in is here with us every week here at milroad as we do our best to onboard everybody into crypto in a safe and responsible and simple way we know it's confusing we know there's so much happening it is very difficult to keep it up with all of it but that's what we're here for at milk road is to make sure that you're on top of it every day of the week so thank you so much for being part of this journey without you we couldn't do it

without you we're so grateful have a great weekend everybody and we'll see you next week on the milk Road radio thank you for listening to milk Road radio the easiest path to get smarter about crypto if you like this episode share it and hit subscribe or follow so you don't miss out on the next one there's also a link in the description to our free 5minute daily newsletter where we simplify crypto for you while making you laugh and if you're willing to step up your crypto investing game then we'll leave a link to milk Road Pro as well your number one resource to help you invest successfully in crypto one final note this podcast is for educational purposes only and nothing we say is financial advice crypto is risky so you should never invest more than

you're willing to lose thank you friends and we'll see you in the next one