The Most BULLISH Project On Bitcoin Has Arrived!

Transcript

speaking of meme coins we're going to talk about Bitcoin and its happening Bitcoin is not the mem coin but what happened on The Happening basically bitcoin's meme coin event uh so The Happening of course happened last week and we've seen happenings before it's pretty pretty much a non-event except for the fact that it just happened this one's different though bankless Nation it is the last week of April it is time for your bank list weekly rollup David we got so much to talk about where are we starting the Bitcoin happening one week later how are the runes doing well they're probably doing better than CZ who might be sentenced to jail uh for how long what was the reaction to all of that what else we got Ryan dude why are we smiling at CZ going to jail man that's like

serious it was the transition between runes and CZ that was funny is it one of those awkward Smiles that you know you hear tragic news and you smile like it's just one of those things it's just how you how you react to it yeah we'll talk about that and we'll talk about how the the crypto Community is is reacting I think it's a little bit different than SPF also though this is very sad uh two more crypto privacy developers were arrested in the US what is going on we got to talk about that and the IRS also wants everybody to register their unhost crypto wallets so your metamask your Ledger David all that's got to be on a tax form we'll talk about that too and then an LRT announced their token release which then triggered liquidations how did that happen and then telegram also expanding into the

world of payments using tether 900 million users in in telegram now all like proximate to a wallet and to stable coins I'm sure that that's just the start is this the beginning of a new super app before we get into all of those details and everything else that happened this week a moment to talk about our friends and sponsors over at safe safe of course you know safe it's a multisig uh that's where bank list. eth is it's a multisig uh it's where I have my own multisig a lot of people have their own multisig and they frequently use safe because it's the largest account abstraction leader with a hundred billion dollar in TV that just announced their safe activity Rewards program so you get rewarded for using your safe making transactions through safe holding assets and safe doing

things with your safe so there is a link in the show notes to getting started with your safe pass that they want you to get so you can get your rewards from the safe ecosystem you know it's not only they want you to get it I want you to get it we want you to get it because it is a a key to amplifying the points that you receive in your safe so uh we just claimed ours yesterday I don't know if you know this David in one of multisig because if you have safe tokens I didn't did you not know that oh you you didn't do that I didn't I was told it was done I didn't know you did it because I guess it takes two people to do huh yeah mul yeah it was me and somebody else who's not you okay well

thanks for doing it see that's opportunity for me to thank you uh and now that we have the the safe pass uh we get extra points when we use safe so if you do more transactions if you have more assets in there if you like do more stuff and you're safe you get more points now I don't know what these points are going to be redeemed for entirely but I'm sure uh they they will be redeemed for some sort of incentive in the safe ecosystem in the weeks to come so if you got a safe that's just a PSA go get your safe pass yeah speaking of safe okay so like safe I mentioned my multi via NOA safe like in 2019 I think we did ours in bankets in like 2020 uh NOA safe has it's like one of the earliest projects products that's been

in crypto it's like the first like when you spawn a smart contract ecosystem like what's the first thing that you build oh you you build a multi you build you build a vault uh and so like as this is how like safe has secured like so many billions of dollars over the years um they they air dropped their token last cycle uh but it was nontransferable so you could claim it it's like locked your wallet it was locked and it's been locked it's been locked for a very very long time it actually just unlocked um this last week like a couple days ago uh so you actually now know what the token value of the safe product is yeah I almost forgot had safe tokens right because could do anything with them which you would claim inside of your safe which is how you got the safe

tokens all right 1.9 billion 1. 1.9 billion yeah for the market cap of safe oh it's pretty uh pretty impressive and that just happened this week too right government unlocked it so safe safe tokens are now transferable so that's another PSA for you uh David let's get to the markets on the week thanks to Kraken for these glorious charts uh flat but glorious nonetheless what are we looking at in the week better than down yeah flat is not down which is a good news in the last like four weeks or so Bitcoin start of the week at 62,000 up 1.5% to 64400 uh actually 700 just kidding uh and then eth price also up but still kind of flat start of the week at 3,60 up about 3% to

$3,160 David do you have any uh snipe orders in for like any prices what' you call it last week stink bids stink bids you got stink bids uh because Bitcoin if I have if I have dollars I don't hold on to them I don't cuz like stink bids require you to be patient oh and I just I just bid you're spare the moment type of person oh I have dollars oh now I have eth looks cheap looks cheap that's not 10K eth I'll buy hey look anything under 10k eth is super cheap right now how about the E Bitcoin ratio it's not great Ryan uh 48 yeah I got all the way down to 0478 uh it's low it's been in a long last time well I'm sorry for your loss

David but bitcoin's having its moment in the Sun and hopefully e gets that this cycle we'll have to see though it hasn't happened yet soon as we get a goddamn eth ETF let me tell you how about the uh Global crypto market cap today $2.5 trillion 25 um later 2 updates this week brought to you by mantle as they always are which is a uh I got to stop saying new and upcoming layer 2 because they have really cemented themselves as one pretty mature yeah yeah super impressive 1.25 billion in total locked value uh okay there's lots we could talk about on layer 2os this week I I want to highlight maybe three things all right so one is cost layer 2 beat by the way just put together a new a new kind of

like chart new set of dashboards called costs and I want you to see this David I don't know if you looked at this so if I go to the 7day cost layer twos actually no no I'll go to the one day cost of layer twos okay so one day cost of Layer Two is what they're paying in a post blob space is cheap World blob space is available and blob space is cheap look at this arbitrum one they are spending $3,000 a day $3,300 a day this is their cost the cost that they pay to settle all of their transactions everything 1.7 million transactions that's $3,300 crazy cheap okay this is a total cost for all of the the transactions

since Arbitron has 1.7 million transactions on daily basis let's let's filter it click that little button and let's filter it buy per transaction so total cost per transaction of the of the 1.8 million transaction 0.0074 cents to settle to ethereum like per per year per transaction that's pretty it's it's pretty impressive and I think the tldr of this is like as we said before when uh this gets cheap when like Layer Two fees to ethereum gets cheap you know everyone talking about ethereum is so expensive well from a chain perspective it's really not cheapes areay lay twos already when it's more

profitable to build a layer two you will get more layer twos yep uh another thing I wanted to show you in the layer two ecosystem David is um the number of active wallets so look at this chart this is active wallets per week in the ethereum ecosystem you spend it's not all the of the chains in the ethereum ecosystem but some of the major ones we are now at 10 million active onchain wallets in ethereum pretty cool yeah that's that's a doubling in a year yeah this is I guess we're like 10 million it's kind of the size of New York City right like that's that's uh you know a sprawling Metropolis of of users or something like that 8 million 10 million oh yeah in in that zone uh other thing that's cool this week is um Bas just became the

number two chain after ethereum in terms of number of usdc amount of usdc Supply inside of it not surprising consider coin bases started to settle on the base chain itself do you have any takes on this oh yeah so coinbase owns I think 25% of circle uh there's totally a competitive with uh competition with Visa angle going on here they're using base chain to like store their own uscc and user account usdc so they're just using base their own chain as their own settlement Network for the coinbase exchange um I expect this I honestly could see like uscc on base are passing ethereum l oh for sure I think it's up I think it's up only I think um it could

be become the number one uscc chain think might as call base usdc chain they're trying to make it they're trying to make it a payment chain I think over time like maybe a competitor to Visa or something like that um David let's talk about the movers wasn't stable coins of course on the week wasn't Bitcoin wasn't ether about it was uh your favorite my favorite meme coins were up on the week all right between 50 to almost 100% Bonk was up 97% on the week Pepe was up 54% uh flaky I don't even know what flaky is 40% on the week dog with hat it's got a 20% 28% on the week that's our favorite that's what we love Bist I I know I know you're bullish meme coins

um speaking of meme coins we're going to talk about Bitcoin and it's happening Bitcoin is not the meme coin but what happened on The Happening basically bitcoin's memec coin event so the H The Happening happened last week and we've seen happenings before pretty pretty much a non-event except for the fact that it just happened this one's different though uh because now the chart that you are seeing on the screen you are seeing the fees paid to bitcoin miners uh the blue the very flat blue bars are the block subsidy that was the 6.25 BTC that was minted per block paid to miners which is now 3.125 and then the Orange is the block fees since the happening you have seen uh they call it like a preh happening it was like a 5:1 ratio of block subsidies to block fees

that's how it's been like almost for like for a very long time for most of uh bitcoin's history like there hasn't been much fact that those fees are actually in existence those are all ordinals fees for most of bitcoin's history there there was no orange bar slim even smaller yeah so like a six to1 ratio of fees to block subsidies block subsidies being the six um now post havening uh it's pretty volatile but with runes the introduction of runes block fees are just totally surpassing all historical total incentives so like for the podcast listeners we're seeing bar charts that are like five times higher than the preh haviing uh security budget uh and that's all coming from uh Rune fees transaction competition to

become a transaction in the Bitcoin blockchain to Mint runes uh we should explain what runes are but before we do I just have a comment on this so uh I used to be of the camp and I still sort of am I I used to sort of think that having was um a like a bit weird to celebrate and by by the way do you know sometimes we say having sometimes we say having and I just like can't help it because there's no consensus yeah well I mean I've had so many people what it is and they all give me different oh so both are acceptable so you can say having both are acceptable okay so it we'll we'll use them interchangeably then to to you know be the really throw off the listeners yeah exactly anyway I I used to be at the camp that uh like it's kind

of weird to celebrate like I get that word celebrating um algorithmic is kind of strength of BTC monetary strength but like there's a there was at least it used to be especially like let last happening no one would acknowledge that this is actually reducing cutting your security budget uh Bitcoin security budget in half as well so it's kind of like you're celebrating this algorithmic issuance policy but like you're also celebrating well the economic security of our blocks is now like half right and I was very worried about this and didn't think that the Bitcoin Community was giving this enough attention or time because if you cut your block subsidy you have to make up for it and block fees in order to have the same security

budget and it's interesting David that that is what's happening only more so like because there is now building on bitcoin I'm actually if this is sustained of course I'm much less worried about the block subsidy uh like dropping down I think a big question though is how sustainable is this runes Bitcoin layer 2s will that be a sustainable source for L2 is going forward yeah that's that's totally right the the main difference between the ethereum security budget design with EIP 1559 is that ethereum tries to ensure it sustainabil uh sustainability internally with its own internal mechanisms like fee capture via 559 whereas what we're seeing here with ordinals and runes starting to become a very dominant part

of the Bitcoin security budget those are things that are actually external to the protocol things happen is going to issue block subsidies potentially as long as it needs to to you because because it knows that it can't demand on external influences to protect itself wants to always ensure at the to the very end that it will have the assurances that it will be secure which always seemed to me a more like conservative uh approach this but anyway we should probably explain a recap of what what runes are David what are they and why are they causing the spike in uh Bitcoin block fees runes are a new introduction to bitcoin the Bitcoin app layer the Bitcoin layer one uh they are fun tokens on bitcoin so we probably all know what ordinals are they use Bitcoin

block space to etch or inscribe jpegs into Bitcoin block space and that is an ordinal runes do a similar thing but it produces fungible tokens inside of the Bitcoin layer one so they are native to the Bitcoin layer one fungible tokens that you can trade and send all like erc20 tokens on ethereum but with like a lot less functionality like no there's no smart contract inside of Bitcoin for any of these tokens they're just tokens which is why when I did the transition into the segment I called them meme coins because they're kind of constrained to becoming meme coins if you want to invoke some sort of like meaning into them it has to come from outside the protocol because you can't put logic into runes but as the Creator said uh mem coins that's perfect product

Market fit right so like let a thousand meme coins Bloom and that's really what we're seeing this is a a dashboard by the way this is on a centralized exchange okx a dashboard of is pretty cool to see Bitcoin tokens actually Trad on centralized exchanges yeah I that is that's a new thing there were some of the ordinals tokens maybe doing that I wasn't paying attention to that but now like NS yeah so matrick Eden has been like not just that there there were BRC 20 BRC 20s right in or those are orinal those are ordinals okay BRC 20s are ordinals so the BRC 20s were like trying to layer on fungible tokens on top of an ordinal and they kind of worked didn't work they worked enough to have speculative me Memory Mania around them

they basically like an an ERC 1111 1155 but the Casey was like somebody just like brute forced funable tokens Casey the creative run ordinals so he said somebody just somebody just brute forced fungibility onto an ordinal let's just actually make a brand new protocol we'll call runes oh and how this relates to the happening is he just co-released it he just co-ed theing just cuz why not you get the maximum attention on bitcoin anyway these on the okx these are the leading uh coins in the runes ecosystem one is called ZZ z uh I it's called in in the naming of runes there is no space yeah so instead of a space they have a little dot it's like a bullet that counts as the space that's why that's why there bullets here

we dog go to the Moon uh of course all separated by these spaces as you said um dot dot dot satosi Z space z space V space f eh hu space dot look at look at this this uh you know like straight five Z's in a row or dog go to the Moon I mean look at these market caps man like this is 50 oh no sorry 45,000 Bitcoin uh market cap which is3 billion billion market cap for a Bitcoin Rune called ZZ zzz F ZZ ZZ Z wow and then the number two market cap uh is yeah dog go to Moon I love I love uh

Satoshi Nakamoto enu number five solid name $80 million wano Rune necro mean Gob isin x honey badger coin all right so like there's no way to like actually do any fundamental analysis on these things right it's just like Oh I like that name oh this is Eric Wall pissing off eth Maxis and Bitcoin Max he alike and he is tweeting a picture of one day uh block space fees and look at this Bitcoin takes the lead with 7078 million 8 million and absolutely ethereum on the one day ethereum is comes in second place uh nothing else is close with uh $3.2

million in one day fees look at that the block space is valuable again funnily enough like I didn't I put out a tweet that was retweeting this thing I don't really feel grieved At All by this like I think it's cool that Bitcoin is generating fees like that this means like hey at least something is being productive here that's because you're not NE Maxi David that's because I'm not in eth Maxi I will say it did make me feel a very immense appreciation for EIP 1559 because these $78 million of BTC that that people are paying to Mint and trade and purchase minor Revenue baby are going straight to miners who have expenses and overhead and eventually they all sell Bitcoins miners are bullish Bitcoin they would love to hold Bitcoins but in the fullness of time they are forced sellers of Bitcoin

because of the overhead of their operations they have to pay for electricity or they have to pay for new Chips aay event Bitcoins get sold huge Payday for miners whereas if this was on ethereum which a is when there's nft drops 1559 Burns that and so it actually gets recycled back into the value of eth rather than gets sold by Miners and turns into like a line item in their p&l yeah well that just makes you a greedy plutocrat David uh that's what I say yep yep this is such cases okay so um Bitcoin is now treading this territory of its block space fees are really high this is a tweet from Hector Lopez 82% of wallets that hold Bitcoin cannot move right now due to high fees so if you have Trace Amounts of Bitcoin inside of

a Bitcoin wallet it's not worth it for you to move your Bitcoin um like out outside of your like self- custody because it's too expensive that's what happens when you have high block space fees it's the same thing that ethereum has been through and will continue to go through uh like moving forward it's even worse for Bitcoin because I think this just shows how much how much more small a Bitcoin block is than an ethereum block like and then data through per per time ethereum just has so much more data per uh per bit bcoin block compar a Bitcoin block and so like it's just a really when there's any marginal amount of demand for Bitcoin block space fees just go through the roof I was going to ask you this though so um here's a tweet um how sustainable is this this is from

Dan Smith Bitcoin runes are playing out exactly like the short-lived inscriptions craze uh we saw on Avalanche and arbitrum um I don't know pretty bearish on the longevity of this in in the meantime miners stay winning uh and you like put some stats about some of the largest CL CS the question is is this a flash in the pan or is this sustainable if you have any takes on that very hard to guess it's certainly part of the mcoin mania this time on bitcoin um and firsttime tokens have been in a like reasonable way on bitcoin but the question is do you think all of this is is sustainable there's there's definitely some like Bitcoin exceptionalism that tokens and ordinals like ruins and

ordinals will receive just because they're on bitcoin uh part of the the pitch of a bit ordinal is that like well the Bitcoin blockchain is going to be around forever and so you can be assured that the data of your ordinal will also be around forever and it's on like you know the one the one blockchain with all of the Lindy uh and so there yes there's Bitcoin does have like some exceptionalism in it you can see that in the monetary premium and so therefore I think runes and ordinals get some overflow from that but also at the same time Bitcoin the blockchain is entering in the dangerous world of utility and if you are trying to in invoke utility into your chain you have to you you have to keep on moving like you have to add more and more utility you have to keep on

evolving and so like what is the evolution path for further utility further expressiveness for ordinals and runes uh the one that I see that's very clear and obvious are Bitcoin layer 2os uh because of what ordinals and runes are which are like native to the Bitcoin layer one all of the data for a rune Orin ordinal is on the Bitcoin layer one they are fully interoperable with Bitcoin layer 2os which are far more expressive than Bitcoin the Bitcoin layer one and so maybe that is the path where the Bitcoin blockchain does grow and evolve in its utility and so maybe that is the Future Path but at the same time like ordinals and runes are like strictly an inferior technology to a Smart Contracting system yeah I think

Casey called it you know stone age right is in terms of what you're dealing with Casey the cre creator of this um it's also difficult to imag I mean $78 Million worth of fees that's what like people are paying for like how do you sustain that in in day number one which is quite literally a flashing for sure for sure this is a a take here honestly I can't help but be disgusted by some of the behavior I see in the ordinals and runes ecosystem there's uh influencers or influencers they're grifting and stealing from you as blatantly as i' ever seen and it'll be egregious with runes and he goes on to explain Bitcoin block times are 10 minutes long and he like goes on basically I think there are many he basically saying the me opportunities the Arbitrage and sniping

opportunities in Bitcoin runes and ordinal ecosystem is massive and people are taking advantage of that and so this what happens when when you see like 78 million dollars of daily fees like where you where's that coming from is actually coming from meev yeah uh I G Casey said that there wouldn't be as much he didn't anticipate as much me in runes I mean yeah how can there not be right um yeah if if there are fees on your blockchain there is me okay so Bitcoin block space um has a new set of buyers mcoin buyers and uh Bitcoin the asset of course this has been something we we've talked about since earli in the year has a new set of buyers which is the institutions let's go check in on the Bitcoin ETF this week

inflows versus outflows things are starting to slow down in Bitcoin ETF world what are we looking at yeah we're just seeing a tapering of both both the inflows and the outflows so outflows are lessening inflows are lessening uh and so we are staying at an equilibrium which again like I said last week and I think the week before and I think the week before that uh which is why prices haven't moved um we're I probably going to stay flat for a while until we probably see some BTC inflows because that is ultimately the thing that's wagging the entire market right now um two investment advisers however have uh allocated over five% of their portfolio into a Bitcoin ETF there is some kanit adviser who put $20 million into Fidelity that's 6% of a investment advisor's portfolio and then

also some investment advisor in Minnesota put 177% % that's 5% of their portfolio so you can see starting to see some like further marginal buyers of extremely Boomer F uh investment uh advisers starting to put uh BTC into their portfolio I know I say the word Boomer a lot and I'm sorry if I that offends any actual Boomer listeners but these are actually Eric balunis his words he calls them he says like here's a homepage of the Kansas adviser that just plowed 20 million into the Fidelity uh BTC ETF literally this is as Boomer as it gets and if you look at the picture like yeah come on they're all they're all suit and tie yeah it's um it's it's definitely what I think crypto adoption looks like

with raas right which is like these registered investment advisers in the US kind of like just starting to buy a portion of funds and exposing their clientele to it that that you are no longer early if you are buying Bitcoin these people are buying Bitcoin now I think early is kind of a spectrum it depends I mean they're still early for registered investment advisers so there's still some Alpha there it's just like you're not early like right you know many listeners were uh many years ago on bitcoin but it's still super early for registered investment advisers um David let's check in on the grayscale ETF as well so that if I recall was like bleeding to the other ETFs you know

Fidelity was taking share from them so outflows it's cuz they had the most expensive ETF out there was like uh well they had the most expensive ETF but they also had had all the buyers so there was it was the most crowded like asset in history in crypto are you saying because it used to be a trust and then it transferred to the ETF so it's already really big all all the new ETFs were all net new buyers whereas the gptc is like had buyers from like eons go well and their fee doesn't help it 150 basis points 1.5% fee on this ETF that's that's a lot of money but they've rolled out something to help mitigate that what do they got and they're rolling out a mini Bitcoin ETF which is exactly the same thing I think it's just like another second ETF out of grayscale

except this one instead of having the 1.5% fee has a 0.15% fee I believe that's 15 bips um and this is the lowest either the lowest or tied for the lowest of all the fees out of the Bitcoin ETFs uh and what's important to note here is like you can actually if you are a gbtc holder one of the reasons why you might not want to sell your gbtc and go into a different ETF is that that triggers a taxable event and you might have been buying gptc when it was like you know 80% lower like a significant taxable event for you like you might have be up very very significantly and you don't want that taxable event so you're just taking the fees to the face because you don't want to pay the taxes uh so you can actually

roll over your gptc into this brand new grayscale Mini Bitcoin ETF uh and that is not a trackable event some sort of fancy Shenanigans going on there to make that true uh and so you can get instead of you can hold your BTC with grayscale continue that and not pay the 1.5% fee pay the 1.5% fee and so I think the growth of this mini B BTC ETF that they call it you'll actually start to see the bifurcation of people who are selling uh gbtc to get out of the um the very high fees versus people that are actually just selling just to get out of BTC as a whole because they made that speculative bet of I'll buy gbtc at a significant discount and sell during the uh once the ETF is approved you see those two

populations emerge this is just a way for gray scale to kind of Salvage its business it's sort of a a Lifeboat right because you know the 1.5% fees are just not sustainable and uh you know this 15 bips I know you're a big fan of bips uh this 15 bips mini ETF alternative is just like it's actually cheaper in terms of fees than than almost all of the other ETFs so it's way for to salvage this uh which totally makes sense I think it'll be it'll should be neutral though it's not like I I don't think it's going to do anything it's not going to attract any more marginal buyer yeah exactly so it's just you know good for Grays scale type thing um but it could prevent marginal sellers is so that is bullish you know I was thinking about the the raia investor class who is now

sort of like getting up to speed on on bitcoin I was thinking about I think about them a lot David yeah they're in my thoughts often thoughts and prayers mostly prayers uh but here's one unsung story so they're starting to understand Bitcoin oh there's this digital asset it's like gold right here's a story that they're going to understand give them like five years maybe hopefully it's sooner but 5 years okay hold your breath bagas nation that is crypto now has this cycle we have productive Capital assets okay uh if that doesn't mean anything to you I've heard this before it does to the RAS all right because they like they like productive assets they buy things like stocks with with dividends and we have

those now this is interesting from token ter terminal who by the way I think they're doing fantastic work over there at like showing you what a Crypton native p&l looks like right and so if ethereum these are two um protocols if ethereum and maker were to issue their earnings report right like imagine they did this of course this is completely on chain and there's no centralized uh like group that kind of uh issues this so you can find all this data on chain if they were to do that then ethereum earnings would be $370 million on the q1 quarter that's big that's over like like well north of a billion in terms of um like annual profit profits which is exceptional this

is maker which is of course a long-standing D5 protocol Blue Chip 30 million on the quarter like really impressive if you look at these assets from just a productivity uh element as well anyway this is a story that I think for crypto natives there's still time to front run I will tell you though I'm not I don't get optimistic yeah keep on front running the cryptos industry it's like deciding that like fundamentals and re Vue is actually bullish I've been waiting for that for like five years this is what I think of when I think of fundamentals in crypto and uh yeah I could I so maybe now fundamentals in crypto is which crypto Twitter influencer is talking about your me maybe I'm just praying that R raas get it come and push out the meme coins in

this industry God damn it make fundamentals matter again make fundamentals they never did all right uh what do we got coming up coming up next three CZ might spend three whole years in prison is this Fair what are people's reactions to this and why and then also more crypto privacy devs arrested uh who's next is it you is it me is it your local podcast I hope not but first before we get there there a moment to talk about something these fantastic sponsors that make this show possible especially Kraken our preferred crypto Exchange in 2024 if you do not have an account with Kraken consider clicking the links in the shoutout so getting started with Kraken today if you want a crypto trading experience backed by world class security and awardwinning support teams then head over to Kraken

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prison sentence for billionaire binance CEO CZ and the scheduling is sentenced for the end of this month so a few days from now April 30th um a few of the highlights from the prosecution what they're saying a custodial sentence of 36 months which is twice the high end of the guidelines range would reflect the seriousness of the offense this is the prosecution speaking promote reasonable respect for the law afford adequate deterrence and be sufficient but not greater than necessary to achieve the goals of this sentencing that's what they're saying of course the the major misconduct that CZ has already pled guilty for is that he failed to implement an effective AML program that's anti-money laundering program at binance and he allowed elicit actors to

use the binance exchange like to do elicit things uh that's that's the summary here and the prosecution is asking for 3 years in jail I got to tell you David jail time actually surprised me I don't know why I was surprised but the fact that um CZ could go to jail for this for like years was actually surprising to me I kind of thought that all of this was going to be negotiated ahead of time uh by CZ and his team that's definitely what Arthur Hayes did when he had to settle with the doj was it the doj uh when over the bitmax case is like he said like hey I'm not coming in to negotiate I'm not coming in to talk to you guys until like we agree on some certain terms and those terms were like ended up being like house arrest um

CC's defense team says that no defendant in a remotely similar Bank secrecy act case has ever been sentenced to incarceration and a quote although probation references a conversation in which binance's SE Chief compliance officer warned Mr CZ that there were users from sanctioned countries on binance andom the reality is that binance a non- US company was not prohibited from having users from us sanction countries on his platform form so some some back and forth between cz's defense te saying hey this is um 36 months in jail is too much uh I'm guessing I like I said I kind of always thought that this was already negotiated ahead of time um we'll see I bet you it's it's something closer to Arthur Hayes than actual jail you think so I I think I mean who knows it's this is up

to the judge right this is up to to the court system and Arthur Hayes as you said he got uh six months on house house arrest basically in his Mansion didn't spend any time actually in jail I think there's an interesting contrast with um there's been a lot of banks over the past decade David that have been charged massive fines billions of dollars in fines for breaking uh AML AML laws as well and I've NE I've never heard of Bankers going to jail so there's the case where like yeah like maybe you can kind of like pre-negotiated this or it could be that the US you prosecutors and maybe the judge and the courts are really trying to make an example of CZ that's kind of what they were saying in their statement like would reflect the

seriousness of the offense promote respect for the law and afford adequate deterrence that to me just says like we want to make an example of CZ so I don't know maybe the maybe the political climate has has changed or there's something about this where they're really going to uh like go for the jugular here yeah uh C actually wrote a letter uh to the court where he said uh he apologized for his poor decisions and accepted full responsibility for his actions and a letter to the judge there is no excuse for my failure to establish the necessary compliance controls at binance I originally became interested in cryptocurrency because of the inclusiveness and equal opportunity it provides everyone to the world looking forward I see many opportunities in biotech as well specifically I feel too

much of the current medical research is too profit driven words cannot explain how deeply I regret my choices that result in me being before the court rest assured that it would never happen again uh is what CZ says to the court so kind of saying hey I had a bad guy past but I'm going to be a good guy in the future I promise yeah this is um plead pleading to the judge basically he said I also apologize to everyone I've leted down my family my friends binance employees and the larger crypto Community right this is a very contrite letter basically saying I don't want to go to jail um you know like I'm sorry I've learned my lesson and uh he talks at the end about um another area I will continue to my spend my time is helping youth which was a PRI priority

for me so he's he's trying to paint the picture to the judge he's going in full good good guy Arc um it's interesting he he has a sister I believe that works at JP Morgan who spoke on his behalf as well and is kind of like writing letters to the judge uh his kids are in the US they go to uh like us colleges and they have also You Know spoken out and so like CZ is really trying to gather a lot of support there's um letters of support from a US ambassador to China professors at University Columbia University Morgan Stanley managing directors it's really a whole campaign to to kind of uh you know like show that cz's on a good guy Arc and has learned his lesson he just doesn't want to go to jail man I get it not just those of all the people you

mentioned the 161 total letters of support so there was a very like a coordinated effort to like hey can you please write a letter to the court saying don't put CZ in jail um what do you think about this what do you think about this so um 36 months in prison should he get prison time I asked the crypto Community this question but but before they speak I I want to hear what you say um I do I mean I've said this before many times on the weekly rollup I do think that CZ has some like pretty crazy skeletons in the closet uh I don't think they're related to anything about this like the bank secrecy stuff and financial surveillance things which is what he's being charged for and what he's going to jail for I care less about um the things that like I know that CZ

has done that are wrong are more probably more in their familiar camp for what people are known in the crypto Twitter space which is like backd door dealings about pumping tokens and you know unsavory relationships with Justin son and things like this that are kind of actually back in the rearview mirror of 2017 to 2020 I think CZ realized that he was becoming uh at the head of a very large empire and he knew that he would have to eventually like kind of button up and manage risk which is slowly The Arc that Cy has been on this entire time um 36 months in jail for like what is you know very much like you know very illegal things kind of seems like a good deal like the guy's going to come out after 3 years at most

if that's what the sentence is like a jiga billionaire and he's gonna be just fine um three years that that that sucks though so uh the question of the crypto Community uh should he get prison time no prison time 82% yes prison time 177% yeah that's because it's like C CZ in according to crypto Twitter is like a god so every well SPF uh stole people in crypto's money CZ did not do that and I didn't lose anyone's money I think there's just a a a number of crypto people myself included who think that AML kyc laws are like broken anyway and so um probably treat that with um less severity than maybe some will but it's all up to the court system now so we'll have to see David uh speaking of AML K

kyc all right this was uh huge this week the samai wallet Founders were arrested on Wednesday morning so that happened just a couple of days ago one of them is extradited from Portugal they could face up to 25 years in prison so the samurai wallet this is a Bitcoin wallet and it has a coin join feature coin join is like pretty old technology in the Bitcoin world uh it's basically a mixing Service uh so all the Bitcoin utxos which is what a Bitcoin is all goes into this coin join thing they get mixed up and then you get sent back a new utxo which is your new Bitcoin same amount uh but now you have some amount of privacy with where that utxo came from uh and so like like I said this technology has been around uh this is not the only time this coin join technology has been used

uh the problem with coin join is that it requires a centralized server to do some coordination about which utxo uh is selected for input into a coin join like cycle uh and so this is what the samurai Founders were actually like operating and maintaining um you can actually go to the samurai wallet.com website and you'll notice that it is seized by what it looks like right now this website has been seized it's a big FBI notice like the Road type notices that seen previously yeah so the samurai wallet coin join functionality is actually debt it is actually a down service unlike tornado cach for example which I mean the devs are also having their court case uh but tornado cache as autonomous

code on ethereum is still operating unlike this one uh and so uh there's also some other differences here uh the accusation of these two developers is that they actually kind of targeted gray and black market uh activities intentionally uh they were they made more than hundred million in profits from fees from money laundering from legal dark web markets uh they facilitated around two billion dollars in unlawful transactions between 2015 and now uh and then there's also some like pretty bad facts is what a lawyer would call them which is like um Samurai Founders messages to their investors talking about their intent to solicit activity from Gray and dark markets and kind of boasted uh and invited illegal

activity so uh yeah as a lawyer probably some some bad facts we'll have to see you know everyone gets their day in court but materially different from the tornado cash case which there is no such evidence that either the developers facilitated or aided in any sort of um nefarious activity obviously nefarious activity did use tornado cach but that wasn't any sort of result of the actions of the founders of tornado cach uh and also tornado cach was like totally autonomous uh and so like while we don't enjoy privacy devs or devs who write code uh to be um arrested uh the precedent for this I don't think is as meaningful as it would as it is with a tornado cash case yeah I guess like you know that that subtlety is is definitely

a a difference and I think it makes the tornado cash uh case which is like two devs got arrested uh charged with like anti-money laundering stuff publishing code yeah yeah uh makes it more defensible but like I think there there's goes to the basic question of like should US citizens have the right to private transactions of their crytocurrency and like all of those subtleties that'll get worked out in kind of like courts in terms of what's permissible and what's not but I think the samurai wallet devs were basically they took kind of like the Silk Road vantage point and they basically like everybody should have have access to you know privacy and if we have to run centralized servers for that then so be it right like I don't know that the the doj right now is making the distinction

that you're making of like these guys were writing private code these guys are you like writing immutable smart contracts on ethereum because they're both arrested right now like both groups are arrested right now go straight to jail go straight to jail and I I think that's like the the biggest concern about this like it really feels like the US is putting its foot down and saying we don't want uh the world US citizens or anybody to have the ability to transact privately and and they've enjoyed these benefits in in the banking system to today right they have like the eye of Sauron they can see all the transaction that are going on any one time and I think that the concern here for crypto whether it's a tornado or whether it's

Samurai is where does this stop right like we're talking about 25 years for writing code that helps people uh keep their transactions private yes bad guys uh can use tornado cash code but like it's you know it's required if you want private uh transactions there's no other way to do it uh in crypto right now so here's another thing David they they treat the banking system system with kid kid gloves right over the last 10 years there have been like dozens of cases uh of AML breaches of of some of the largest banks in the world HSBC just like others the UN estimates there's 2 trillion in money laundering by big Banks each year and I never see any the any of the bankers go to jail they're

never just like arrested from their homes and like they have facing 25 years of prison time which makes me feel very much like crypto is being targeted in this and so tornado developers privacy developers we have Samurai wallet developers like what about Aztec that is a layer two there's a private layer to what about zcash this is an entire blockchain that keeps all transactions shielded in private are they going to come after them next we don't really know because this is not like laws on the books through through a you know Congressional um Act of any sort this is like regulators and the doj coming out after after these people and so like

where where does it end is kind of the question and I think what their objective is is to push out a lot of fear in the industry to get people to stop using these tools uh and to get people to stop developing them and actually here's the concerning thing I think it's working right like if you're a Dev working on something related to privacy in crypto like you're going to stop working on that thing unless you want to face the possibility of prison yep yeah um just a the incentive of the state is always to capture the next most marginal uh illegal person doing the next most marginal legal activity so at some point the court has to stop them um hopefully that's the tornado cash case speaking of the Court's deciding things

this is actually some breaking news that we had to pause the recording right now just to actually in inject into this weekly rollup consensus the ethereum software studio is actually suing the SEC this is coming out right now yeah so apparently uh the SEC gave consensus a Wells notice and then the consensus was like okay great we're going to see you guys uh and so they are preemptively suing the SEC over a number of different things uh I think the main SEC lawsuit against consensus is that it's popular metamask wallet everyone knows metamask is a broker dealer because it probably has that swap feature in it uh and so consensus it's the same thing as Unis swap right they're like same thing as unap Unis swap is a broker dealer so

metamask must be a broker dealer too every wallet yeah yeah same yep yeah and like metamask is just like it has that like transaction swap feature and it uses um onchain dexes and Dex aggregators to fill those orders um so this is the precedent that's going to be decided around that uh but consensus is saying hey we're not going to wait for you guys to sue us we're just going to sue you preemptively to get clarity ahead of time and also Ryan they're also going for eth as a security this is the new thing wait what who is they are they are trying to get a court to get the SEC to consensus is okay I thought you meant the was trying like suing consens okay yeah consensus is going after the SEC leveraging the court saying hey Court

get the SEC to say that eth isn't a security so this is in the consensus complaint against the SEC um as well as an injunction to the SEC to leave eth devs alone I don't know what that means but apparently that's alone leave leave them alone that's great all right so we're we're we're being a bit more aggressive and proactive right not not waiting the lawsuits to come to us taking them to no no one's scared of the everyone's scared of the doj no one's scared of the SEC SEC is a joke yeah finson is is kind of scary these days for sure in the financial surveillance stuff uh all right what do we got coming up coming up next an LRT token D pegs and causes liquidations rut row uh the super chain gets a little bit more real and the IRS wants you to pretend that

your Ledger wallet is a broker dealer so joining forces with the SEC well let's go hear about all this stuff and more but first I want me to talk about something the fantastic sponsors that make the show possible especially mantle the chain with all the yield your me yield and all the other types of yield and the defi ecosystem that's on mantle if you not if you have not checked out mantle check it out today there's a link in the show let's get started with mantel let's go he from them right now mantle formerly known as bit Dow is the first dled web 3 ecosystem all built on top of Mantle's first core product the mantle Network a brand new high performance ethereum layer 2 built using the op stack but uses I layer's data availability solution instead of the expensive ethereum layer one not only

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hundred countries you'll have the opportunity to learn directly from The Architects and Advocates representing Bitcoin ethereum salana along with the teams from popular layer twos like mantle arbitrum optimism based and others but consensus is more than just discussions and presentations badge holders get access to witness 10 professional karate combat fights and one unprofessional one between myself and Nick Carter for The Visionaries pitchfest is your Spotlight presenting a stage for the most promising early stage web 3 companies and for the devs the hackathon offers a unique chance to build your next project or take your existing project to the next level immerse yourself in hundreds of side events and hacker houses scattered around Austin register for consensus 2024 today and save 20% with code bankless a new LRT airdrop this week Renzo announced its token launch that

will actually launch on May 30th is when that token will be live second largest LRT after ether f with 33.5% market share three and half billion dollars in deposits uh so season 1 campaign ended on April 26 Season 2 incentives will start soonly thereafter this is kind of the new meta the season one is like people's retroactive aird drop in season 2 is like but wait there's more don't leave uh so air drop t again claiming on the 30th the total airdrop allocation for both season 1 and season 2 is 12% 7% for season 1 uh and then there was some airdrop eligibility as well minimum number of 360 easy points per wallet uh as the E the Renzo org announced their air drop that was

the good news side right that was the good news there was a little bit of a hiccup post uh so Renzo did not have withdrawals enabled yet and so if you had e East which is the Renzo LRT uh and you could not you can't just unwrap it and get your eth back if you wanted your eth back You' have to go to un Swap and sell it uh they'll they will eventually eventually open up withdrawals but withdrawals was not enabled uh once they announced their token and that the snapshop was happened had happened uh all the airdrop farmers were like oh well we're done here uh I'm going to leave the protocol except since there was no withdrawals the only way to leave is to sell your easy eth for eth on Unis swap uh which causes the the a disequilibrium in price like this what

we're looking at on the screen that just like yeah and so Bank listens owners and we are looking at what is called a big wick Big D A dpeg yeah uh so the price of Easy E D pegged all the way down to like $680 for what is worth one ether uh and so some num skull that's like a that's like a 7% de that's a big deeg yeah yeah cuz some idiot just like Market sold all their easy eth into Unis swap not accounting for how much liquidity was there which was not enough to actually account for the like the outflow demands there's something like $30 million of liquidity in the unir so someone learned a harsh lesson that day someone someone immediately took a 70% haircut yikes trying to become an airdrop farmer um that's why I just like hands off guys

calm down calm take your breath know what you're doing uh anyways uh on there is also leveraged airdrop farmers in the defi ecosystem who have Easy E as collateral or other types of collateral that is related to easy eth uh specifically inside of Morpho and so where if Morpho and the Morpho vault that uses easy eth as collateral it uses the Unis swap um uh exchange to get liquidity for any sort of liquidation and so it uses Unis swap as like hey what's going on over there is there enough what's the price of e eth on unap when the price of when it gets cut in half by like 70% liquidated then all of a sudden Morpho is like well we're going to have to liquidate you guys uh and so there's a big liquidation morco Morpho because

some Trader some airdrop farmer just hit market sell into Unis swap into like no liquidity uh and so uh yeah so this is we have discovered that we are on some sort of efficient Frontier of risk inside of the leveraged airdrop farming ecosystem people that were depositing easy eth into Moro to borrow more eth to go like Leverage up on point farming uh yikes uh and then we also learned that you uh don't dump into Unis swap we also learned that lrts should enable withdrawals before they announce their air drop that's the correct order of operations um lots of learnings lots of learnings for everybody lots of learning lot of learning I mean who would have known that when if you stake your eth then restake it and then lever long on it you could get liquidated right like

wind that up baby I mean but people should be aware LRT is Cy Peg sometimes quite significantly and I mean as a result you probably just shouldn't lever up um by the way this is a chart that's kind of worrying to me a little bit I don't know if this is a a chart for the future this is the you know the carak protocol the new restak car is like the Anan competitor that's like is just e and lsts well you can restake with carak with anything okay but here's the problem if you look at this pie chart the the stake that's in carak right now about 75% of it is Igan layer lrts okay so this is eth that's been staked restak and then restak again it's not just 70% lrts it's it's 34% lrts and then 41%

derivatives of those LRT in pend levered it's levered LRT oh yeah uhhuh yeah okay so like so here's the structure going on so let's start from I'm going to start you really want to get into this yes here's the structure that's being built right now we have uh the beacon chain proof of stake Beacon chain with eers we're good solid super strong we have uh Anan lir as and the withdrawal contract for Igan L that's where the slashing events happen for it's new but okay well it's designed to be it's new it's designed to be like no one is supposed to be cont unless they are really meaningfully like F like you can be an AVS and never have a slashing event unless somebody like materially f uh

okay so that's layer then lrts deposit ether or lsts into igen layer on top of that and that's that's that's the that's the igen layer LRT ecosystem then we can enter the ethereum defi layer where some people are doing Pendle trades some people are leveraging up on morpo uh some people are like providing liquidity in Unis swap that's some of the LRT ecosystem and that's that's the conversation that we just had with Renzo and Morpho and all that super RIS now we enter this is where carak is built on this is where CarX starts no no no not all of 75% just 75% of CarX starts here and those assets are deposited for the carak points you know

what people getting liquidated in in these things like I mean come on come on do not complain do not complain you know what you're doing you're hunting for some some points here oh my God uh all right David let's move on to something a bit more stable telegram is allowing usdt payments so 900 million uh telegram users out there do you know that um I know we are one of them and uh they're it's just going to work like send sending a direct message except with a stable coin except with tether so free cross border instant um pretty impressive the telegram is really like doubling tripling down on on crypto these days yeah F finally getting their like crypto like ecosystem that they promis in like 2018 um but come back to me when we can do some liquidations on

telegram because tether payments not St coins are so boring to you right now let's get some like telegram reaking stable coin leverage going on well I mean this does pull the question of where the next Super app's going to live right telegram kind of building on top of crypto to become a payment super app X of course is building a wallet um they're not talking about the cryp any crypto plans right now so far it seems to be built on the Trad banking system so far and they're they're trying to turn X into a venmo type experience and we also have this is a rumor just coming to this episode David so not completely substantiated looks like stripe is adding crypto payments finally this summer look at this this a good oldfashioned crypto wallet of course everybody uses stripe um so I don't know a lot like feels like 2022 I know we're

actually getting some of that adoption that we were hoping for pivoting into the world of this super chain optimism is releasing a multi-chain upgrade system uh so this is a way for all of the chains in the optimism super chain to upgrade their chain at once via a single shared upgrade contract so when this one single contract upgrades and like all and we're upgrading the op stack all of the chains in this super chain all upgrade all at once uh and so this is just part of the growing scope of the super chain uh and then this is of course Liam saying native interop between base World chain cell Zora op mayet and all the other Future Super chains fractal is also one of those those these will all upgrade in unison

and then will all become universally composable that's s that's great if we can just solve fragmentation across at least the super chain ecosystems right that would be like you know 80% uh of the challenge to day thinking of more chains uh this is this a little curveball this week Ryan Sheba enu has raised 1212 million for its new Chain by selling an unreleased token treat token because you know you give treats to your dog yeah uh uh so that it could have a privacy focused layer three wait what built on top of the shib layer two so this is a FH fhe fully horic encryption rollup that settles down to the sharum

ler which is which is actually a side chain which is own native validator network uh and so they spin they spit out this new token called treats which is the native token of the shib layer three that's going to be a privacy Focus layer three settles down to the shib layer two which is actually a side chain wow wow okay I think I get it it's actually a side chain so it's not a layer two so it's not even layer but but but did you say privacy Focus privacy Focus it's an F it's fhe fully horc encryption rollup that is some uh a privacy layer three that some deep Tech I I did not let's just introduce privacy into crypto via the meme coins doj will never see it coming well actually this

is a meme coin that's building maybe presumably I have to see what they build but um wow that's how we're going to revolutionize the world huh revoking their memec coin status injecting utility wow B bu trategy tell me about this David uh so Lio is starting with DVT I think like dvts I understood it is you get to stake with friends right so you can kind of like do group staking can be less than 32 eth uh but remind me uh about that and I I it seems like this is maybe a step towards making Lio more decentralized what's going on here that's exactly right uh so DVT distributed validator technology basically you and your buddies can and create a virtual validator in the cloud of sorts uh and so if if none of y'all have 32 eth but you need the 32 eth you

guys can ban together and have like two three four five n number of nodes that all put in eth into a pot once you get over 32 e you can become an ethereum validator and only one of you has to sign a message on everyone else's behalf and the cool thing is if one of you fails to sign a message somebody else can take over that role so it's not only a decentralization mechanism but it's also an uptime mechanism as well um actually uh Lio originally gave I think obal Network a grant way back in the day uh to uh research DVT before it was actually a piece of software uh and so this is actually coming full circle from an initial Lio given Grant to research and develop DVT now Lio is bearing the fruits of that that Grant uh so that

they can actually use DVT to include 72 net new node operators into the Lio ecosystem that's very big uh I guess cuz they have 30 right now right so 32 yeah so they're adding 72 onto the previous 32 that already existed that's great all right so if you don't have 32 eth all you need is one eth and then a very rich friend or a group of friends right all that e or maybe hopefully you're all equally Rich uh David this um was annoying super annoying this week this is uh the IRS news so here's how when was the last time you looked at a$ 1099 tax form you ever look at these uh no I pay someone to look at them for if you have an exchange account with

our favorite exchange or Kraken kraken's going to send you a1099 every year like detailing your trades and transactions you did um this is a new proposed form from the IRS for digital assets so it's a1099 for digital asset proceeds from broker transactions and are you making me look at an IRS form I don't have to yeah okay well let me zoom in let's enhance enhance I'm going to zoom this in right so okay so a coinbase or a kraken or something like exchange has to send you one of these uh there's a checkbox broker type involved in the transaction kiosk operator digital asset payment processor hosted wallet provider or what's this unhost wallet providers broker type un hosted wallet provider what is a broker that is an unhost

wallet provider okay I have a wallet on this computer right now is my computer a broker the IRS thinks your Ledger is a broker basically that's the huge concern with this type of a tax form because what it could mean David is that if you are a Unis swap user interface or if you are a metamask or something uh you have to go find the identities of anyone who has used an unhost crypto wallet inside of your application go track down their social security number their like where they live all of that to send them this 1099 that is the nightmare scen scenario if the IRS considers unhost crypto wallets essentially a broker this is what uh shean is it is isn't this what consensus is suing the SEC over cuz like

metamask the last thing that metamask wants to do different BR you know we're fighting the Hydra here so we like that's the SEC head of the government this is the IRS head of the government we're going to kill we're going to chop off the SEC head and then the IRS is like the IRS com like you know bites our head and that's what's happening so this is shean he is a uh like crypto tax uh expert can we take the IRS to court I mean I think we're going to have to take them all the court DAV he says I don't think crypto will be suited on privacy presing sh fig out at least in the US yesterday IRS issued this the form that we were just talking about and Brokers will be required to generate this form for the sale of transactions okay we're not sure sure exactly whether

the IRS like did this accidentally whether they don't know what they're doing or what but like we had already given comments on this this is months ago the problem is the form captures data points is date acquired date sold date proceeds it's also it would also create a massive IRS database of every single person's crypto wallet and like who owns it I mean like what a Honeypot this is sick anyway I we talked too much about the different heads of the Hydra in this episode I'm just kind of exhausted by it but that's another thing for you to um think about I know you spent a lot of time thinking about your 1099 forms so totally yeah what's that line like you don't account don't attribute something like malice and which could be contributed or attributed

to um uh what's it like being incompetence stupidity something like this yeah in this case I think for the government when it's about the government in relations to crypto it's got to be inverted it's not incomp incompetence it's actually malice I think it could be both a little bit of both the good news says Jake trinsky is these rules make literally no sense at all and uh the great news is is that good news yeah well he says the great news is we really like filing lawsuits um so if you a crypto lawyer you're about to be real busy I mean you already have been um yeah yeah get to get more busy yeah this can only be explained by wanting to discredit and Destroy crypto it's another crypto take right right thanks G it's like all the all the the

Hydra heads are kind of working together at this point it feels very coordinated um yeah it's all happening once David some raises to mention on the week there there's two that bankless Ventures has involved in uh the first one is movement what is this yeah movement is so simple a move evm layer 2 on ethereum so move the language uh this is the thing the the coding language developed actually by Facebook and that was the focus of the uh Libra DM project uh developers speak very highly of move for some reason I don't know why because I'm not a Dev but everyone loves move uh it's objectoriented uh which I think is like what our tokens and nfts other than objects so I think there's a connection there yeah um but different the point is different virtual machines that are

extremely performant as layer 2os on ethereum uh and so a move based Layer Two that is bik code equivalent with the evm so you get both the benefits of move and the ecosystem of the evm uh they say Ryan 30,000 transactions per second with bite code compatibility wow 30,000 how many you think those are votes how many how many of those are vote transactions oh wow David you couldn't res that the answer to that is zero bank lantion because move and movement is not not one so it doesn't need consensus and it's not Salon delegated proof of stake so it doesn't need votes wow you the joke explain the joke authentic as well they raised 4 million their seed round this to me this is this mless Ventures

was involved this is a almost like a Ras like a infrastructure layer rollup is a service you've heard that for um the rollup ecosystem this is that for igen apps it's kind of infrastructure what this means is more igen apps I think faster because we have the infrastructure you just like kind of printed out more yield hopefully if you were a reaker although like don't go and Rel leverage your your restake we just talked about that and something as well called stateless rollups what is a stateless rollup David that that's possible on authentic yeah so a stateless rollup so a rollup is a blockchain right and so blockchain has trustless State H that's my Twitter name um a stateless rollup is basically just like take the state out of a rollup and then what what are you left with you're

left with compute so you get stateless compute so like these are compute networks uh which can compute certain things uh literally anything um and that can be kind of a module inside of the rollup ecosystem or any sort of like in the veilance of ethereum can Leverage The stateless compute of these specific abss uh this is like a perfect bankless Ventures deal uh because we like scaling things uh we love reaking uh and we need more avss uh and so this I think there's actually going to be more AVS than there are rollups I think it's there's more need for more avss than rollups in in the long T some some rollups can be avss yes you just econom I think yeah I think AVS is actually incompass a larger vend

diagram the the rollup uh ven diagram fits inside of the AVS V diagram uh and the the I layer ecosystem is like really H like hitting the the gas right now and so but like what is needed the most is more abss actual apps that people use actual igen apps yeah I think we're the only ones I call them igen apps but more people should uh so authentic just helps um I layer avss U spawn and structure themselves and build themselves well guys that has been uh the rollup last thing I want to talk to you about David is H your big fight that's coming up okay I just want an update because I was looking at this on the week this is the poly markets people are gambling people you know crypto likes to speculate Nick's coming he's he's getting on he's

biting up my heels if if you haven't heard the the margins have compressed is it May 30th is that the date you're fighting Nick Carter okay me and Nick Carter are fighting karate combat these podcast tit it's basically basically kickboxing all right you are winning so far in terms of the betting mark Market okay 50% on David Hoffman that's gone down though I don't know if you're happy about that start 60% yeah uh and then uh Nick has 43% there's like a lot of money on the line it's growing there there's like 63 and5 thousand B betting between me and Nick Carter and I'm just enjoying uh seeing Nick taunting you and like you clapping back on all the social media that I follow this is Nick thinking

about we have pretty good band yeah did you see my most recent tweet I don't think so I don't know what' you say uh there's this telegram group of all the fighters in the card where so there's six fights going on we're actually the headliners cuz really you know of course who else is fighting anyone I would know uh Billy McFarland from the the fire Festival guy no way I I saw that documentary who's he fighting uhhuh I don't know I don't know dude yeah yeah so he's in the card but yeah we're the we're the headliners um uh so in there's this like group of us and they're like hey you guys have to go get like a medical exam blah blah all this kind of stuff like Logistics and Nick just drops a question

in there it's like um will there be drug testing because I don't see anything about drug testing in this in this I'm like dude bro you can't just have that is he roiding up to come beat you is that what he's doing do you think he's got that was what so I I tweeted a screenshot of him asking that that being the implication I don't think Nick would take seems it seems not characteristic of him so fat of him very Fiat of yeah it would be very Fiat of him anyone if anyone knows any roid stealer hit me up oh my God are you um so how's training going for this like you going to be ready how you feeling oh I'm I'm pulling an I'm pulling an anom what by the way I um so you're not the only crypto can't I call you crypto

influencer David that's what other people say okay but if you do I get to go on a a quick Soap Box about that all right then I won't say it um we got to end this episode I did watch the anom fight though okay so this is anom versus I don't know who what's Barney Barney anom unlike you is definitely a crypto influencer not sure about David but is definitely one and uh yeah I watched um three rounds of this um I'm not a big boxing guy you watch three and a half rounds I can't really assess what I watched uh an some did lose I will say that and uh yeah I don't know if you have any any thoughts on this fight anything that you've learned anything that you're going to do differently any

different kind of energy you're going to bring to the Nick Carter fight uh but yeah it's no I'm gonna this is actually a message to Nick um I'm GNA perfectly bring the amson energy into I'm just I'm just not going to train I'm just gonna I'm going to wing it oh wow I believe in myself yeah I I believe in myself I'm gonna I'm just GNA eat myself into this without training yeah wow I was not giving a lot of faith to to one side of that prediction Market here David but uh I'm rooting for you and we'll be following your training with G great interest uh and certainly updates on the rollup from time to time let's uh end with this um crypto is risky so is karate boxing and whatever you and Nick are getting up to you could lose what you put in but we are headed west this

is a frontier it's not for everyone but we're glad you're with us on the Bist Journey thanks a lot