UST and Luna collapse, big tech in web3 and Coinbase

Transcript

what's up friends welcome to web3 academy a place for entrepreneurs creators and marketers to explore and learn how to use web 3 to transform business models and create thriving communities enjoy this next episode gm gm what's up web3 friends web 3 doers wow what a week it's the weekly roll up i feel like we say what a week every week but this one is like this one's for real i i feel this one in my in my soul kai how you doing uh i'm surviving i'm alive for the most part that's good man happy to hear

just kidding everyone everything is all good we're gonna be okay it's all it's all fine it's just crazy but it's fun this is what happens when you're building you know building an entire new world when you're going through a revolution right there's uh there's big highs and there's big lows but we uh we all get through it together and uh we get through it together by learning and by making sure we're on top of everything and that's what uh this podcast is all about so um let's uh let's jump into it but before we do uh we always like to take a deep breath and share gratitude particularly important to share gratitude in the times uh like these kyle what are you grateful for today well before i get into that i mean first

there is some good stuff we're gonna talk about today too so quick outline we're gonna talk obviously about luna and ust and what's all going on there we'll give you guys some some more information we're gonna talk about big tech entering crypto and web3 there's a lot of actually really good things in terms of adoption that we're going to share so we'll talk about that is coinbase becoming the next apple of web3 we're going to discuss that and then we've got a bunch of other things uh as well as our web3 protocol our tool of the month so we will dive in there what am i grateful for today uh i am grateful for nicaragua um i have just a couple days left here and then i am off to the permissionless conference in miami um and uh and then i'll be in mexico city after that so i'm just super

grateful for my time here and uh yeah that's all nice i am grateful for the web3 academy discord and i'm grateful for community and web 3 in general if you're not in our web3 academy discord um i'm partially showing it as i say this but i'm also i'm grateful for it because when we have challenging times we need support and we need each other and having a place where i don't even i've never met some of these people well i mean 99 of these people in the discord have never met and

there's people sharing vulnerably the struggles that they're going through and their mental health and what they're feeling and then there's people helping out and saying hey i feel the same and i've gone through similar things and here's what i've done and so it's amazing to have uh you know when you're falling you need a net uh and a community is really your net when you're struggling and when you're falling and the web through academy discord has been a great net this week of support and positivity which has been really really cool to see it's amazing how online communities develop in such a powerful way and so supportive i mean there's just this amazing culture of web3 to support each other and to collaborate and to make a better future we even have a bear market cope room in

there right now that's right that's right it just makes me feel good so shout out to everybody in the web3 academy discord uh thanks for being you thanks for being there yeah great absolutely agree uh discord has been really cool we're getting a lot of people in there and a lot of great conversations uh both in terms of what you said jay but also and i think people helping each other just understanding and learning the space and building in the space etc and so it's been really cool to watch um i guess on that note real quick before we dive into things jay and thanks for sharing that um we so we're tokenizing uh this discord so it's going to be token gated by an nft it is a free nft if you're not aware um but you just need to fill out

an application and then and then we send out approvals the first round of approvals went out this week on monday so if you already filled this application make sure you check out your email there's a link in there to claim your nft and then you just go in the discord hit the verify nft channel and you can verify it on may 15th uh is when we will be locking down the discord and if you don't have the nft and if it's not verified you won't be able to see any more of these channels so make sure in the show notes you'll see there is a application form make sure to fill that out uh and then uh and then follow the steps awesome thanks kai all right let's get into the roll up in the news of the week but before we do what's the web 3 word of the week guy

oh this one was a tough one i think uh the word of the week is experimental that's what web 3 is that's what crypto is still we are not this huge giant industry that you know everything is figured out and we know what's going on it's a lot of experiments and uh the first news we're going to talk about was a unfortunately very big experiment that went unfortunately very very wrong and that is tara luna if you can see the chart so for those that are not watching uh and i don't mean to laugh because honestly this is a terrible situation for a lot of people it's probably one of the biggest collapses in one of the biggest events i think in crypto's history in what has

been 12 13 years now um so if you have not seen or heard of what's going on the terra luna economy which relies uh specifically on its stablecoin uh called ust um it lost its it's an algorithmic stablecoin meaning it's not backed by anything technically um it does have some different tokenomics where it's technically backed by the market cap of terra luna so the luna token itself which was worth about 45 billion dollars at its peak which is pretty insane for an experiment and anyway over the last week it had started to lose its peg um and we'll dive into not specifically why but we'll give some details and anyway starting i

think it was monday it like completely lost its peg and as you can see from this chart here um it's sitting at i don't know 40 cents i think or something 40 46 cents at the time of this recording uh it is a stable coin meaning it's supposed to just stay at a dollar um so meaning anyone who holds ust the dollars they had are now just worth 40 cents similar to like i don't know inflation of you know like a currency uh so um not ideal uh and that's so that's on the stablecoin side of things if you go to the next chart we see the chart and the um price of luna which you know was kind of the darling over the last you know let's say year and a half in the space um you know over the last

year it's it went up the token price went up to something like 120 almost if not more i think at one point uh market cap as i said over 40 billion and um basically in order to well there's a few things in order to try to save this peg they had to sell a lot of this luna but at the same time there are a bunch of big investors in this uh company or this protocol and so they knew this was coming so they sold their positions uh and basically it is down to what is the price scroll up for a second i think it's like one dollar no no no scroll up it's way less than that oh yeah one cent one cent a hundred and twenty dollars down to one cent do you understand how massive that is it

is down basically been down 99 every day all week almost um so unfortunately there's a lot of money being lost mainly by retail i think a lot of the like big investors and funds got out um but uh it's very unfortunate for the terror community uh and for any holders of of luna and uh yeah just not not what we wanted to see happen but also i mean it was known to be risky i think there's a lot of people that had been mentioning this we've every other algorithmic stable coin that's ever existed in crypto's history has gone to zero so um of course this one was risky and uh hopefully you know listeners you were aware of that and didn't put your life savings into that um because it's an

experiment uh just like a lot of what web theory crypto is and unfortunately this experiment went very wrong yeah and i think you know from the investment side of things uh and this this doesn't help anybody who's lost in this situation you know i hope i hope you're you're coping well and you're staying positive and you know staying focused on the long term uh but the truth is if you lost if you lost big in a situation like this because you were over leveraged you know you gotta you gotta make sure any investments you make you're willing to lose right because we all investments are risky inherently and everybody's going to have a promise of

something but doesn't doesn't mean it's going to happen so yeah so there's a lot of stories that come out from this now over the last week as this one's playing out uh and so we're just gonna share kind of some of it and take some learnings from it um but uh up on the screen here we have a tweet from dokwan this is the founder of tara luna uh and over the last year as this you know protocol has gone from basically nothing to you know a 40 billion 50 billion dollar market cap he has become extremely confident and basically bashes anyone who fudds or says anything bad about this uh and um and so i think he's feeling a bit of pain at the moment obviously uh this is

a tweet of him just reaching out to the community kind of trying to explain what they're doing what's happening if we go to the next one there's a tweet from him from uh last week where it started to d-peg and he basically put out this meme and he said so is the ust d-peg in the room with us right now and he says no i prescribed 24 hours of pegging over the next seven days so he says it's going to be completely fine with this like kind of sad bear or whatever this is just basically making fun of anyone who's saying that this d-peg is risky and obviously uh things did not turn out well for dokwan um so so what happened um it's not just like hey this stablecoin just didn't work out it actually looks like um there

was some um what do you want to call it bad actors that were involved here uh and i'm not gonna get too far into the details of this uh but basically there we can see on chain that a wallet bought um was it something like a billion dollars worth of ust which takes a lot of liquidity off of this and they started like selling like crazy on finance um they also bought something like a hundred thousand dollars worth of bitcoin or a hundred thousand bitcoins not a hundred thousand dollars worth hundred thousand bitcoins which is i think in the billions or something as well and they were doing some trading with this in ust which dokwan was involved in and basically they just kept selling us to usd to push it down

and and so basically tara or the the foundation they had to sell the bitcoin that they had been buying over the last few months which is why prices were going up um which so this just like pushed prices down even further um and it wasn't enough capital to save the peg and so this wallet that we don't know who it is yet there was some rumors that it was citadel and blackrock they've come out and said it wasn't them um but anyway this wallet that did this that basically single-handedly pushed this peg down and blew up this whole entire system walks away with over a billion dollars in profit uh is what the wallet shows and this was i don't know exactly how but choosing trading and things that they're doing so um pretty crazy uh ordeal um but let's just

look at like what else happens here there is a bit of reasons of why this is a big deal other than just like the terra ecosystem there is kind of a contagion effect so ust was in a lot of different ecosystems like ethereum and like um solana i believe in avalanche et cetera and so of course plus they were buying up bitcoin in which they had to sell so this this impacts everything it's not just the luna ecosystem um so there's kind of the contagion effect and that's why we're seeing markets uh one of the reasons why we're seeing markets the way they are the way they are now um if we look at the luna ecosystem i mean luna being worth i think the market cap of luna now which was 40 billion is now like 200 million which is the thing that's supposed to

back ust so even if ust gets back to its peg it has nothing backing it so it's essentially useless which is scary because there was a bunch of apps built in this system as well which all relied on this peg and luna and so anchor which is a great protocol and you know there's a bunch of other ones on ontara that i don't know what happens to them next uh maybe they can move to another blockchain i don't really know where that goes but um doesn't look good for that ecosystem for sure i think the other big issue that comes from this is just stable coins in general are kind of like the killer app for crypto over the last year or two the the market cap so these things have been going crazy there's a lot of utility there um it's a huge benefit using

stable coins versus you know usd because you get off the swift rails and the you know rails to get between different countries um and so it is a good thing it's just algorithmic stable coins are probably not a good thing and something we want to i don't know i don't know if we stay away from them or we keep experimenting with no idea but hopefully just not at the scale that that we're seeing right now so where do we go from here yeah where do we go from here yeah i think you know where do we go from here it's a it's a big question well there's a few things that you know we'll we'll be navigating obviously this is going to slow overall crypto adoption there's you know a lot of fear and fud that gets brought in with something like this and

you know algorithmic stable toys were really emerging and driving crypto adoption and that will no longer be the case uh so we'll see a slowdown obviously the ust market cap shrinks um you know trust has been lost and there's more money being pulled out than it's going in i think as well regulation will increase you know there's when there's a breach of trust on this scale um it leads it leads regulators to say okay we gotta act here we need to we need to step up we need to regulate this thing because this is not this is not what we want for our citizens to have this type of loss and be affected

in this way we need to protect them um so that'll happen and there's also which isn't necessarily a bad thing right i think regulation is probably a good thing uh well depends how it goes uh but like so long as we do it the right way it can be really good just to get people to understand you know um how they can enter the space and what they can do in this space and i think that's that's fine especially for bigger companies who you know don't want to enter because of you know the absence of regulation so i think overall like that's going to be fine um i think just one other thing to point out is this doesn't mean that stable coins are bad it just means that this algorithmic stable coin was bad you have dye which is a stable coin

which is decentralized stable coin it's been around for years and has gone through all these ups and downs in the markets and has been um has been basically unphased right but it's it's fully collateralized over collateralized so it has that you know which is great then you have the centralized ones like usdc usdt which again are fully collateralized um and so like stablecoins is still a great thing i think they still continue to climb and probably all those ones i just mentioned benefit here um they're just i don't know what this means for algorithmic stable coins yeah definitely uh definitely not in not not a good thing for them right so this is some news that came out i

don't know when it was a couple days after all this was happening uh and um let's just kind of look if we look at the crypto web 3 space in general it's it's still very new it's experimental um but it's very immature unfortunately and there's a lot of there are a lot of bad actors like any new industry this happens right it happened with the internet um so it happens here so what we found out is that do kwan who's the founder of of tara was also i guess uh a backer or behind uh and founded another company called basis cash back in 2020 which is another stable coin that went to zero um but he was in anon at the time so people didn't know it was him um but this was a pretty big deal back in in 2020 for anyone who's in the

d5 space so this is a second attempt at doing this and uh both are basically going to nothing so that's not cool and and at the same time you know not to not to spread too much fud around right now but uh there's a realism to being experimental as we said with the web 3 word of the week uh which is that when you're in experimental phase everybody wants to jump in and be part of the experiment and um i don't necessarily think that everybody's a bad person more so you can get caught up in doing bad things because of the way experiments go especially with the focus on monetary

gain that can happen and so some other news that came out about another founders the founder of the uzuki nft project was revealed as a creator of three other abandoned projects or rug polls that he participated in previously where basically he built the project and then left without fulfilling any sort of creation of the nft project beyond the mint um and azuki's a blue chip nft project if you haven't heard of it it's one of the big projects i can't remember what it was trading at its height i feel like 25 eth around kai i'm not sure if you know um and now i think it's down to like uh nine or ten eth uh now

one bad actor doesn't mean that the whole space is bad uh it means that we need to be careful and be mindful uh and be be smart about where we invest in because there's tons of great opportunities and tons of great businesses being built here right and i i don't want to necessarily say they're all bad like i don't think do kwan was acting in bad faith i think he handled it really bad um as you know it was working out and he was just became the cockiest person you've ever seen on twitter and on podcasts et cetera and so i think that's not the way you you don't want leaders doing that uh especially when it becomes so big like it was um but i i don't think he was trying to do this you know what i mean

um i don't even know that he benefited from this i'm gonna assume he probably did not so um so i don't want to say he was a bad actor by any means same with azuki i don't know he was i think it was um part of crypto funks which was a i always thought was kind of a weird project and there's two others um but um yeah i think the the takeaway i get from from this and this is what i tweeted out this morning was just quality always wins in the long run right crypto web 3 has to be reminded for this of this every few years um invest build and learn about the projects which are building for long term sustainability price action impacts you a lot less when you're in it for the right reasons and you're building for the right reasons um

in 2017 2018 there was the craze of icos right and all of most of it was just crap and we needed a bear market to wash out all the people that were just talkers and that had all the fluff and some amazing projects came through the other side but it was the ones that we're building for the long term not trying to make a quick buck now and so i think we're seeing the same thing here and it's just we're probably going to continue to see that in this space because a lot of it is right now anyway is um is pushed through because of monetary reasons right like everything is an asset in the space which is unheard of uh and so there are a lot of speculators right now uh and a lot of the users are speculators unfortunately uh and so that

will that will like that will get better over time as we have better projects and more utility and um and as that plays out we'll have people who just use this stuff and they're not in it to try to like pump and dump basically so it's just going to take some time but for everyone who is either building or if i mean i'm sure if you're investing too or learning learn about the projects that have been here for a long time right you don't have this stuff happening on bitcoin for example right they they they know their ethos they focus on quality they focus on long term um and we'll talk about actually some of this throughout this uh throughout the rest of the show with some of the news that we have speaking of bitcoin some

some positive news here uh is uh although although bitcoin has been falling as the whole market has been uh el salvador bought the dip so sovereign bought 500 coins bitcoins at a price of about 30 000 u.s so investing is still happening opportunities are still are still to be had and there's still still a lot of belief obviously in all of these in in the as kyle said a lot of belief and a lot of support in the the stable blue chip the ones that have been here for the long term and they're building for the long term and you just called bitcoin stable it's currently down about sixty percent in

the last like five years yeah stable stable as a as a business technology not stable [Laughter] yeah it is cool to see countries still buying and still and i mean look again they are going to do this big companies big countries or small countries whatever like they're gonna buy they they like this stuff the utility is there for a lot of countries a lot of companies and they're gonna get involved we're about to show you that big tech is entering the space like crazy um but again they are entering the space not with these experiments they're waiting for things to get built out that show utility that show they are um uh what do you call it like risk proof i

guess that have been battle tested and then they're going to get involved and they're going to build on top of it or they're going to buy it etc and so whenever you're getting these new projects that promise the world like be careful because it hasn't been battle tested right and you're seeing this with a lot of these like all the darlings of 2021 were these all l1 solana and tara et cetera and look at what's happening to all of them right now uh it is i mean last week was our i think our word of the week was broken and uh that was nothing compared to this week so okay well speaking about big tech as i'm sure many of you heard if you haven't heard instagram started testing nfts uh this week so instagram is rolling out uh nfts

which is really exciting um it's a big big step towards onboarding you know instagram has what two billion users kai i don't know if you know i think it's about that at least um so you know we're talking about reaching the masses um now what exactly is instagram doing right now uh because i think there's a little bit confusing everyone says oh yeah like nft is on instagram like is it a marketplace can you buy nfts what's going on um it's clear that instagram is taking a slow approach to this so here's here's what you can do right now and actually shouldn't see you can do a select number of instagram users have been given

access to this uh feature and eventually will be rolled out to the rest of us um so right now uh these users can connect a digital wallet to instagram and then once you're connected to your wallet what's that i said i like that we want we want onboard people in the wallets so didn't drive this you need the wallet and that's perfect that's what you need that's the most important metric in my opinion for this entire space instagram's helping that so i like that yeah yeah if you don't have a digital wallet everybody should have a digital wall and should be using one and learning about them so okay once you connect your digital wall to instagram then you can share um instagram calls from digital collectibles you can share your nfts um so

you could choose to you can choose this it doesn't automatically just share all your nfts in your wallet you pick okay i want to share this nft on instagram boom shares it on instagram and then automatic tagging of both the creator and the collector will happen which is a big bonus to the blockchain is this trustless information permission this information right so um okay and the way this will appear because instagram has to create a way for you to know that this is a visually know that this is an nft is there is a shimmer effect i keep seeing this like shimmer effect uh you got to go on instagram and find one of these creators in order to see this but basically the nft will shimmer

and then and then you'll be able to see it but as well it'll say digital collectible on it and you can open it up and you can see who the creator was what the project was and more information about the nft which comes from the blockchain and if you want to see this i think you can go to what is the um the first creators go to the left there who who's the one that posted this oh too far this is this is this is this is creators so if you go to creators yeah that's the instagram handle but i don't know the one that posted the nft are they no they just posted this is a uh right there hold on right here what's the name here who is this anyway i found one before i'll we'll share it in the notes so you can click

sure and go to the actual like instagram account so you can see it play out here's the cool thing i think we talk about the d5 mullet all the time right uh and um we're seeing that play out here with nfts and you said it they're like instagram calls it digital collectibles that's a much more friendly word my mom understands what that is she doesn't know what an nft is right so when you think about adoption and sort of this thing we talk about d5 mullet of like we need better ux on the front and then use the blockchain stuff on the back end we probably won't use the word nfts in five years from now i hope we don't anyway non-fungible token that's an awful theme right and so instagram kind of like taking the lead here of going how can we make this

actually user friendly for the people and this is what's the one good thing or one of the good things about bringing big tech into the space is like they are the experts on ux these guys build apps that bring on billions of people okay this is good that they are doing this and they're going to create an experience that makes sense for mainstream not for developers or people who have been in this space for a long time and changing the names and making the experiences better this is perfect this is exactly what we want yeah i know it's a great point the ux is so important and digital collectible is a way better word uh so what what is instagram building what blockchains are they using here kai do you know yeah so down in this tweet we got a

tweet up from instagram where they announced this on the 10th of may um and so they're starting with ethereum and polygon are the two main ones uh that they started with they do say that they coming soon is the flow blockchain and solana um so uh ethereum obviously they're gonna start there which is the longest standing the least riskiest the most decentralized et cetera every everyone that's come in has done this first and it's also the most trading volume and everything like most of the nfts are on there polygon is the kind of the second biggest one for this sort of stuff and the other reason they would go polygon immediately and solana which is also one of the big ones is the language and um that you use for ethereum polygon are the same and

they're both edm compatible so meaning once you link it with ethereum it's very very easy to do it with polygon just like it's very easy to go do it with the layer twos like arbitrary and optimism etc so you can expect those will come as well the challenge is it's very difficult they basically have to rewrite the whole thing when they want to go to something like solana because it's not evm compatible it's a whole new world that they have to their developers have to figure out so this is why you often see evm chains kind of group together and go first because it's they almost have their own like ecosystem even though it's a different blockchain it's all in the same language and it's all evm compatible so it's just much easier so that's where they start and then eventually they'll build out salon and

flow what do they say what is ev what does evm stand for okay ethereum virtual machine so it's i don't exactly know the details there and probably most people don't need to know it um but uh yeah i don't even want to try to explain what it is to be honest it's there okay this is the way that it's built so yeah good enough that's all we need to know i'm happy with that information uh who else is building in web three is uh google so yes google just now just go ahead guy yeah google is building a web3 focused team um and they announced this uh last week and so they are not building like a

specific protocol or something with a token or whatever they've actually said that they want to they want to do this sort of indirectly they don't want to be related to a specific cryptocurrency they said so what they're doing is they're building tools for developers to build applications on blockchains to make it easier um so they're going to help speed up the development of all of these dapps so that's really cool it's just an announcement i have no idea how far along or what they're building yet we will obviously keep people in the know as that comes out more but again great to see that they see the benefit of this space and they see that this being the future and so they're going to help developers build it out well and really this is what google did for web too so it's awesome to see

because like you said before big tech are ux experts right that's their product builders their product designers uh you know really how many of us have a gmail address right google took email and brought it to us all in a way that we all could use it to the best of its abilities um for all of its positives and negatives so it'll be exciting to see what what they will build to help onboard more people onto webster as well yeah absolutely so this was also some really big news which to at the time felt really big and now it seems like it doesn't really matter after everything that's happened this week um but so we talk about bankless a lot one of our clients uh

that we've been working with for a long time so on i can't remember when it was over the weekend i think it was saturday or sunday um their youtube channel which they have i think 150 000 subscribers um and it's very popular uh was completely shut down every single video they've had for the last however many years was completely blocked uh by youtube um and so that was a big scare obviously uh and and just a huge risk anyway right like this should not be happening it's crazy that this is where we're at but this is again why we are building web3 because like bankless has been building this business which youtube is not their entire business but it is a big part of it um and it just can get shut down without even anyone saying why right like there's not

even a warning and they just lose all of the followers of their subscribers that they have all that reach which is a big revenue generator for them right a lot of their communities over there and it just completely shut down so bankless being the bosses they are they went out and they started tweeting like crazy they got their community involved everyone started tweeting at like google and youtube and whatever and within 24 hours um they not only had their youtube back up they actually received a dm in twitter from susan uh why chicky how do you say that yeah of woochuki the ceo of youtube to see the ceo of yeah she's the ceo of youtube i don't understand your last name but um anyway she dm'd them and or she messaged them

and she just tweeted publicly and said we clearly made a mistake bankless glad our teams were able to fix things quickly can you dm me your contact info we can talk offline love the level of conversation happening on crypto on youtube very interested in web3 and the role we can play in the topic um so that's huge actually um and bankrupt is trying to get her on the podcast right now that would be super sweet if they can i don't know if they will um but i think what this says is like hey they're aware this is the ceo of youtube right i don't know how many users are on youtube but it's it's billions um and um they're aware and they want to find a way to integrate in and to make this work because they are also launching nfts on their platform probably this year as

well they've announced so um just another tech giant uh that is seems to be a friend of the space and wants to work with uh the community and and figure out ways to to dive in so that's cool yeah really really great to see uh because it's scary it's scary to think about being d platformed and it's scary when your entire business is on one of these big central platforms and they own your data so uh good to see that the a platform like youtube and hopefully the others if this similar thing happened on facebook or on instagram or any of these others would do the same because the last thing you want to see is somebody create a business and then have it taken away from that for because

of some algorithm that decided that their content was bad right oh and actually back to the instagram thing for a second i forgot to bring this up so mark zuckerberg was actually on the um tom tom bailey bailey uh podcast the uh founder of impact theory um he's gotten really big into web three and um and nfts and that and so he's been a big proponent of this similar to like a gary vaynerchuk but anyway he had mark zuckerberg on and it was a great podcast he's actually mark's been on a lot of them recently and he seems to get it right although he owns this massive massive behemoth of a centralized company he seems to get the whole decentralized component here what we're trying to build and he talked a lot about that in the podcast and

basically his kind of timeline for what's going on here with instagram is they're testing on instagram nfts will soon be on facebook as well as their other apps which probably means i don't know whatsapp oculus um i don't know where else they'll go with that but he sees this as a bigger thing and they just want to test right now and then they'll move it across all applications he also has something cool which is they're looking to integrate ai to use 3d nfts and specifically with instagram stories and so what i think this is which is actually really cool is if you've ever seen the nfts that are like avatars like a me bit for example or i don't know there's like cyber kongs there's a bunch of them now i think snoop dogg's uh nfcs are these avatars that you can invisible friends or

exactly yes so these are ones that you can like go into a metaverse and move around and they're like characters basically but they're you own them as nfts and so there's ways that you can use like um ai to like put them in your videos and they can be like behind you or you can like dance with them and like i don't know a lot of like think of like pokemon go style and so they're looking at integrating that into instagram stories um which will be uh super cool i've seen a lot of videos of people experimenting with this um so yeah it looks like we are making friends with these uh big tech giants hopefully and uh this could be good news yeah i think they they all know that this is the future and this is the way it's going which we all know and so uh

let's all build together as we've always said let's all collaborate absolutely so next up on the news uh another big tech giant telegram which i think they have like what 500 million maybe uh users might even be more at this point but they are now letting users send cryptocurrencies uh right inside of like the chat through um and i don't even know what this one is but tan blockchain i guess the open network is what it's called um and so basically they've just made it very easy and seamless um to uh to send crypto from one user to another right inside of your um right inside a telegram um and so i think you're like what's actually interesting is um in china for example they have big tech

behemoths as well and it's their social platforms but in china their social platforms are also their banking platforms they're integrated in one and so it's very normal to be like think of their version of the facebook or instagram and like in there you just move money around you can make payments you can send money to each other it's like their apps are these like combined big apps of banking services and social we don't have that on the western side of the world because governments haven't allowed that um and it seems like that's kind of what's just forming under the hood anyway because crypto just enables that um so it'll be very interesting i think they're going to see social and and payments and banking all kind of combined in these like one big apps kind of thing okay so then we've got some uh

sort of just like quick hitters for you of some other big moves that are happening big companies making moves in the web 3 space first up is billboard's president announced that he's stepping down from billboard billboard music is a big entertainment and music media company they produce the billboard music awards they produce um billboard top 100 uh you know old been around for decades uh and so the ceo is leaving billboard to become the ceo of doodles uh and the president the pr president of billboards president of billboard uh right president ceo uh the guy at the top of the chain um

although at billboard they probably also have a ceo so that's what i do yeah um he's and he's leaving to become the ceo of doodles doodles is a one of the blue chip nft projects uh so it's probably a uh top five top ten by sales volume nft project uh but what's really interesting here is he's making a move to an nft project from this you know massive entertainment company because clearly he believes in the future of these nfts right and this nft project doodles is really just a pfp project right now but they've done super well they've raised millions of dollars and they're building a business around it we

talked previously about a month ago about doodles was partnering with i can't remember which beverage company but they were partnering with the beverage company and putting doodles brand on um on the the cans of that beverage company uh so you're gonna see a lot of these big nft projects uh start to infiltrate other areas of consumer goods because really these projects are doodles is a brand that can be used across any any consumer good absolutely and it's kind of funny this to see this it's like if you see the picture up on the screen it's like so you have billboard which is like a big you know corporate organization right that has a big structure and it's like he stepped down

from that to be the ceo of and you see the doodles picture and it's like this like cartoon that's puking out a rainbow duke or something with like another eyeball that's like off of his face like it's like what is this and so i was just as you were talking i was trying to google i was like who is the president actually don't even know who it is it's julian holgen um and he's 43 years old uh because that's what i wanted was this like some old dude that was the president that's just like now gonna be the ceo of a nft project this is crazy so i guess he's still fairly young 43 um and he sees the future and i think i would bet in his circle people are probably looking at him like what are you doing like this is insane uh but i bet you the same thing

happened with the internet back in the day when people were moving over to tech companies even smaller ones back then people were like what the heck are you guys doing um so we'll see how this one plays out this is really interesting yeah other other big news from the uh web i wouldn't say web 2 space but from the retail spaces starbucks has announced that they are creating uh nfts um and they're calling it the digital third place starbucks brand was always the idea was that going to a starbucks coffee shop was your third place to be you have your home you have your work and then you have your starbucks and so they're they're launching nfts and getting into the space as well kai do you know the specifics of what they're doing with these nfts not

the full specific but if you stop right there uh actually go down one more paragraph so basically what they're doing is they're using they're launching a series of branded nft collections and it has utility so the ownership uh will initiate community memberships it allows for access to like exclusive experiences and perks and things like that and the themes of these collections will be born of starbucks artistic expressions both heritage and newly created um so it's sort of like a membership i guess that they're going to do with these nfts and i think it's like a reward system essentially so kind of like loyalty rewards but this way it's in nfts and has some branding and community around it um actually super cool here's what they said about mts so this was from

starbucks on their site we believe nfts have broad potential to create an expanded shared ownership model for loyalty the offering of unique experiences community building storytelling and customer engagement and while doing so also being a source of a creative business that can benefit a number of stakeholders in the process while creating a new type of digital ecosystem and complements starbucks current digital platform offering so they think it's better for the users it creates way better experiences and ultimately they think it's going to be better for their bottom line which is amazing and so i just want to highlight one thing um here is like look right now we have this blow up of tara luna we have prices going down people are probably scared

look at the adoption we're about to have or are having right once you have the like i don't know how many people use starbucks every single day but it is a hell of a lot right and then you have instagram you have telegram and you have twitter has nfts and you have you know google moving into this in youtube and it's just like guys this is gonna be it is but it's going to be more and more everywhere right and so this adoption is coming and it's coming fast it's currently being adopted and growing faster than the internet itself did so like zoom out turn off the charts don't look at your portfolio whatever um like this is happening and it's happening fast uh and it's exciting so maybe jay we're gonna have to have no more fun uh weeks in our in our roll up

i don't know can we do that i think the the you know it goes back to a the the word of the week is experimental so true when you're experimental there's going to be there's going to be mistakes there's going to be lessons to learn right like you think that you can experiment and create a a new um pharmaceutical drug and just do it overnight no you gotta test it a thousand times and it's gotta break and you gotta fail and then you learn and you figure it out right so that's part of the process here but i also think that there is unfortunately but the media loves fud right like we didn't even want to start with tara

luna today you know that was not what we were most excited to talk about but we started with it because it's what everyone's talking about and we're we're here to bring you the news and so we're going to talk about what everyone is talking about because that's what everyone wants to know about it's important for you know for better for worse that you want to be smart around the dinner table you want to be smart in the office you want to be able to discuss these topics so you know there's this balance of like following the media and the trends versus talking about the maybe not so exciting and not so click-worthy stuff but um you know so we try to bring you a balance i think people also probably want to know why they're what their portfolio is taking and so i think we had to start there to help give

some insight well yeah and and i think we'll also uh we're going to start to um using our newsletter as a place where there's so much news each week and also our discord is a place where we can share other news because we can't even get through everything uh i mean we're we're almost at the hour here and we're gonna have to keep going because uh there's just so much news okay sticking with uh sticking with some big companies going crypto going web3 amc amc theaters which is one of the um largest uh movie uh cinema companies in uh in the world they came out with their their public

company so they came out with their q1 report okay goes a couple weeks ago and in that they announced that one third of their online payments are made in crypto which is just incredible adoption to see so this is people going now i guess maybe you could argue people going to do movie theaters or the younger generation and and you can currently use dogecoin to buy your movie tickets at amc so i guess there's just maybe there's a whole bunch of young people out there buying movie tickets with dogecoin now regardless of what the coin is that's not what i'm trying to make a point on

is doge the point is wow what i think we all we all keep saying that this is going to happen and this is coming but it's happening way faster every i feel like every month i'm like shocked at how fast it's happening it's like wow 35 of digital payments at amc are made in crypto i was mind blown when you told me that this morning jay by the way that's insane and just to clarify dogecoin isn't the only one they have they do have bitcoin and ethereum and and others so they just adopted dogecoin i think last month it says uh so yeah it's not only that yeah that's amazing i'm mind blown a third of people used crypto to pay that's just i don't even believe it that's where i that's what i felt but

but that's huge but it shows the the adoption is happening at all ends the spectrum you know the big companies are adopting it the customers are adopting it and using it that's that's a good point and that's what's really cool about this space is it it literally is coming from so many angles right it's like okay stable coins are looking a little bit scary there's probably some regulation there but like look at nft adoption by all the big tech firms and then there's payments which is looking amazing and it's like there are still like um there's just so many different aspects to this ecosystem and they're all kind of fighting at the same time and coming in and i think that's um that's just makes it so strong you know and this might be our most bullish episode ever even though

the beginning was all fun i like it i like it uh okay one more uh payment uh news is gucci has announced that they're gonna begin accepting bitcoin in some of their stores uh gucci's definitely been a leader in the adoption of of web 3. they they have some nft projects that they're part of they've been experimenting with some metaverse stuff very similar to adidas was very early in the space gucci's really been a leader in the space which is awesome to see again just more brands coming on and experimenting with how can we use web3 in our business and accepting bitcoin is something that

you're going to see a lot i mean a lot of people are accepting crypto payments uh in their retail stores one another yeah yeah spotify is opening or it's building in roadblocks so spotify uh one of the biggest music music companies in the world has announced that they are going to build in roblox they're going to build spotify island which is basically aimed at creating a gaming experience so that spotify can target the younger demographic which is that's where they are they're on roadblocks i don't another kyra i have

kids but i know if we did and my friends that have kids every time i'm over at their place their ipad is open and they're playing roblox so yeah another big announcement tons of people looking to build in the metaverse and get into the space yeah and look roblox is not crypto or web 3 by any means no it's metaverse but spotify is also um hiring uh multiple positions for web3 to bring nfts to spotify so probably music nfts i don't know we'll see how that goes yeah um but like yeah that's cool too well i also saw uh napster was in the news this week somebody

somebody no no no napster too yeah yeah linewire's made a comeback uh good that was like a month ago i remember seeing naps yeah limewire but something yeah somebody either bought napster like the rights to the brand name or they or they they fundraised but something so like all these you know old brands are making comebacks on the backs of web3 because there's just so much opportunity napster was my favorite i hope that they make a comeback okay so let's i mean we talked a lot about this is sort of like onboarding users you talk a lot about like ux that all of these companies are going to help with and so i had a thought i don't know

last week or whatever and um just hearing a lot about what coinbase is doing and they're launching their their nfc marketplace right now um and and i posed the question is coinbase becoming the apple of web 3. we had a big conversation about this in our discord um we had a lot of people talking about it and commenting on twitter as i as i posted this the reason why i say this is think about what apple did for the internet slash for computers let's call it and even mobile phones they controlled the ux from a to z right like you get your phone you get your computer and it's just like they control it all they have the browser they have the um you know they have the phone they have the computer now they have your air pods they have your i don't even know

whatever else right they have apple tv they have everything right and so you could literally just use apple products for like everything you want essentially um even things of like imessage and itunes and apple podcasts and like the list goes on right and what's good about that other than the fact that it's all owned by one company but what is great about that is the experience is so easy right the ux is so easy because they control it all right it's when it becomes fragmented that becomes a lot more difficult and so when i look at what coinbase is doing is like they're almost trying to do the same thing i think they're still very early stage um but if we think about what coinbase has they have the exchange which is the largest in the world um except for maybe binance but we don't

know their numbers so meaning that's the starting point to enter right so that's exchanging your fiat into crypto right so the starting point for most users is coinbase and they control that ux cool then to get into the web3 world you need a wallet a non-custodial wallet so coinbase is not the number one here metamask is but it's gaining steam and they're and it's in there they're working on that and i'm sure it's an easier experience to get this non-custodial wallet uh from coinbase than it is to go to a different ux of metamask or whatever so they now control the not control it but they are they're creating the ux of the non-custodial wallet which is cool because you're going to use that for literally everything we talk about wallets all the time that's how you're going to interact with apps

and it's how you're basically going to store everything your nfts everything like that then they have the coinbase marketplace uh the nft marketplace which is where you can create sell and trade nfts so again that all comes into the coinbase branding the coinbase ux i'm sure there will be benefits of you know using your coinbase wallet inside of there maybe just makes it easier i don't know maybe they'll even integrate it into their exchange somehow um i don't know uh and then you have coinbase commerce which is basically like for businesses to um to invoice clients uh then they can just use coinbase commerce again same branding same ux you use your existing wallets so they control the flow of that you also have um

uh what's the other one um payments so the user when they want to buy things from the real world they can use coinbase commerce so for example if i want to create a product and i want to um i want people to pay in crypto you use coinbase commerce right and so now users get the full experience of like i want to switch my fiat into crypto right i want to move it into web3 then i want to buy something back in the real world and instead of using fiat i can just use my crypto wallet and use this coinbase commerce and that flips it over back to the business and so it's like that full cycle there which i think is really interesting and really good for web3 right because um if you think about what apple did for personal computers it brought in the adoption it wasn't until

apple started doing everything they were doing to where at that point is when everyone started buying personal computers bringing them into their home and that was like the like inflection point right and so we need that for web3 if every company is building something different uh like yes we have interoperability and composability in web3 but you still need that ux and i think coinbase is is scroll down a little bit more but i think coinbase is uh is really ahead on this and so i posed the question and jay i'd love to hear your thoughts it's like what else does coinbase need to do to really control all of the experience um and so there's like i don't know maybe they need a dex right now we use uniswap maybe we want a coinbase one um there's adap maybe they want to create the dap

for creating erc20 tokens so these are your social tokens etc right now you use things like coin buys or mirror or whatever um and that's kind of a starting point for all businesses in the spaces you got to create your nfts you got to create your tokens well they already have the nft side now will they go to the token side maybe um maybe there's daos it's gonna become huge right so are they gonna have some sort of dow tooling where now that's the crm for daos or something i don't know um and then who knows do they build their own blockchain i hope they don't but maybe they'll integrate and build their own rollup on ethereum for example and maybe they'll create bridges so that you can get around this the blockchain system much easier i don't know but these are just some of the uh some of

the thoughts actually there's a good take here from david mihal who we had on the podcast a couple months ago he says my thesis on coinbase has been that they're positioned to be the biggest bank in the us right he's like millennials hate banks but most have a coinbase account even more true for gen z and so maybe they also become a bank right i mean they already are basically a bank but they could become the biggest one yeah i think the the main thing that i really take away from this and that you made that point at the beginning is most consumers want simplicity right i don't most people don't want to have 10 accounts in order to do something

right so if you can if you can make that simple in through one service through one provider and now obviously there's a balance between centralized and decentralized and you know i'm not going to open that can of worms right now but if coinbase can be that one on-ramp for web3 then that's exactly what we need right now because it's too complex to try to explain to somebody the ux of opening a wallet and then going over here and then buying over here and then going over to this dex and oh trade your coins here and then bridge it over here it's it's a lot right so yeah i think all the power to coinbase and i think one thing to clarify is like

we we talked about how the other big tech companies said it's a problem that they own so many things that's not how this works here and that's the beauty of web3 is yes they own the non-custodial wallet but they don't own the assets in the wallet they can't shut down your wallet they actually don't have any control over that wallet they just created the ux for it right same with the nft marketplace they created the marketplace but they don't own any of the assets that are on there so even if yes coinbase marketplace goes down you can just go over to openc and use that or go over to looks rare and use that right so all these tools and now they do have a social component to their marketplace which is not um is not built on the blockchain yet they said they're going

to so like you don't own the social reputation but that will come as that technology improves and so it's okay if they own the whole us ux experience because they don't own any of the assets and the things that we really need um so they can't just block you like what youtube just did to bankless so um i'm actually pro coinbase taking over the web3 world and building this out i think it'd be very good bullish on coinbase all right which their stock is just got completely crushed after all this is not financial advice but speaking about coinbase's nft marketplace uh it's it's also now open to all because

initially they were just testing it but now it's anybody can use it um but no users are really showing up are they kai yeah i mean so maybe my thesis is wrong but uh it's super early i think yeah you know they haven't really done a big push on it yet um they're probably working through kinks and things so i wouldn't this is like the headlines all came up that oh they finally opened up to everyone and there was like less than a thousand people that started using it which is tiny um but like i'm not too concerned about it yet i think we got to give it some time it's so early so we'll see how that goes but if you haven't checked it out uh if you were on their list i believe you now can so that's cool okay and then some

sort of some information about coinbase to be aware of uh is um and this is where we get into the the legal side of all of these tokens and nfts uh which i'm certainly not an expert on um but i think this is where it's important to do your own research and to be to be to understand um and so understand between a custodial and a non-custodial account that's exactly here exactly so why don't we actually start there kai explain the difference between a custodial and a non-custodial okay so you have the coinbase exchange which is where you have an account on you create an account with the username and password you got to be kyc whatever then

you have the coinbase wallet which is a non-custodial let's call it non-custodial account okay they both hold your assets right the difference is coinbase exchange is the same as like a facebook for example where they own it all they own your account and they can shut it down whenever they want just like youtube did right but on the non-custodial side meaning there is no custodian coinbase does not own that account you created your own and it's stored on your device and it's accessed through your seed phrase coinbase cannot do anything with the assets on the coinbase wallet they can do things with the assets on coinbase exchange because they are your custodian they are holding your assets for you similar like a bank is holding your money for you or holding your gold for you or whatever so what's coming up here

jay okay so what's coming up here is in the event of a bankruptcy and a bankruptcy of coinbase customers could be treated as general unsecured creditors which basically means if coinbase had a bankruptcy and their exchange and you had you had your assets left on the exchange you didn't pull it off into your own wall you didn't take custody of it then your crypto assets could be considered property of the bankruptcy estate of the exchange and they would be held in custody by the exchange uh so you could lose access to your crypto assets so use exchanges to

buy that's great great on-ramp very simple whether it be coinbase or another exchange but we recommend that you take your assets off that exchange into your own custody into your own wallet whether it be coinbase wallet metamask wallet uh or phantom or another one or a ledger i highly recommend you get a ledger or treasure and do the cold wallet style yes um yeah nacho keys not your coins that's what they say that's what the bitcoin has been saying for many many many years uh people still don't learn though but here's another one here's another here's here's an example of this playing out in real time so uh when luna was falling um binance which is an essential exchange stopped their users from being able to

do lunar withdrawals so all of a sudden if you owned luna on the binance exchange and you wanted to get out you couldn't you were stopped by the centralized exchange and so that's a centralized exchange taking control of your assets in a way that you know really you don't want to see that nobody wants to see that and this is what we saw with like robin hood back in i think it was 2020 it was 2021 right where they stopped was a game stop um and this is the problem with centralized companies that control assets specifically centralized companies is not a bad thing for other stuff but when it comes to your money or your you know your business like you don't want to be at the risk of

these companies this is the whole idea of web3 um so i'm just gonna keep pressing that button and pushing that every single episode i think is you know we need real web3 we need actual permissionless stuff and uh yeah crypto changes are not that they're just a place to buy your tokens um but you get them off there and you go to where it's permissionless um you could you could buy there was no issues in buying or selling luna on uh um i don't even know what the exchanges are that have luna but let's say a uniswap um or whatever else those are fine it's just the ones that are controlled by people like finance and why they did it i don't know maybe the people from finance are friends with people from tara i have no idea um but uh it's the thing if they

can do it they probably will and i think what's really important here and we can't say it enough is the education is what's most important for all of us right now you don't need to understand every token you don't need to understand nft projects what you need to understand is digital ownership and how that works right and so you need to understand digital wallets uh and if you don't understand that stuff shoot us a message ask us uh you know maybe maybe we need to do a whole podcast on how to do this right we want to hear from you message us in discord maybe we need to have more conversation about this because we want to be a part of helping you understand and learn how to do this

in a safe way yes sir all right what is the web3 protocol slash tool of the month well it's not a protocol it's not even really web 3 but it it's a tool let's call it a tool it's a tool it's a tool it's actually super cool when i first heard about this i was like i had a double look i was like is this actually real um so well could i just yeah so bankless dao which we've talked about before uh is a dow that i am not actively a part of but i uh i was i've been a part of uh and still am now um but they just launched or are launching um a really cool new um

i guess what do you what do you call us here it's a visa card scroll down a little bit so you can see the picture but it's a visa debit card and instead of like we're starting to see this in the space where you spend with your visa debit card and they'll give you like rewards in bitcoin or whatever right we see this with gemini card and block fi etc this one is integrating into the dao ecosystem and so what they've done here is somehow they have this partnership with visa to do this where it's going to integrate with dows and essentially what happens is as you spend you can earn tokens in the dow that you are in or want to be in and so there's a few um really cool things here so you purchase spend and you earn you don't just earn the token but it

actually gives you governance to start voting and doing things inside of the inside of the dow right um and we'll break down how this does is but this also generates revenue for the dow so scroll down a little bit um to the breakdown of the i think three things or four things that they're saying that this does here it is so as you spend uh you'll earn governance power by swiping your card and that helps your dow grow too the more tokens um that we buy for rewards the higher the price so basically what this means is that in order to get these rewards that you're gonna get for buying whatever you're buying in the real world um bankless dow needs to buy up more of the bank token so they can reward you with it and so that's by pressure on their token which improves the price of

it this is really good um so it's kind of a win-win for everyone we are earning uh you know bank token or whatever doubt is um and ideally price is going up is that because it's buy pressure for it so that's cool it's utility right um it allows you to enter your dow so sometimes if there are more established as you have to buy the tokens to enter a dao if you want to be involved in whatever the community is well this allows you to earn without having to buy you could just you know have pay your groceries and pay your rent or whatever with this card and you can start to earn the token which then um will give you access into the dow yourself so you didn't actually have to buy anything so that's really cool um and then it also supports the community

so a portion of that cashback um will go back to the dow into their treasury so instead of rewards going to a bank for example um they go to the dow instead and it helps to grow their treasury so that they can do other things maybe it's to pay you to help out and do certain tasks um so really really cool i never even thought about this as a thing that's going to happen but what bankless dial is doing is actually creating this for all dows so it's not just for bankless dao they are testing it in their own dow first i've signed up to get the pre-launch and hopefully i can use this and i will definitely give feedback um to everyone that's listening but eventually this will be a thing for all dows to use and i think that's that's super cool one that visas down to do

this and two that this is now a possibility yeah i think it's amazing to see the usage of current tools that we're very familiar with such as credit cards debit cards right as a way to get involved in community which is really what dows are is it's it's tokenized communities that allow you to to build things together well wow like now i can use a credit card to get more involved in that community and support that community and bankless is doing this not just for themselves and i think that's why we picked this as the web 32 of the month was this isn't just about bank lists this is about all dao s

dows are all growing they're the future of you know decentralized work which is so powerful and we're seeing that movement huge happening in a big way right now so wow give me a way that i can support my dow by just spending money day to day incredible i love it you can think of it as like say the company you work for it's like as you spend you are now like getting more equity inside of that company the difference here is that dows are more community driven when you think of a company you think of sort of hierarchy it's people doing it because they have to do it not because they want to do it it's not necessarily a bunch of like-minded people et cetera whereas a dow or or just social tokens in general is more community-led and so

like you said it's supporting your community and getting more governance or more you want to call equity as well in your community um and that just creates more value to everyone inside of the community and so it benefits everyone instead of like i wouldn't really want this if i was working at i don't know facebook or something because this just benefits mark zuckerberg and whoever else owns it right um so i guess it would benefit me a little bit as i would have some equity but i can't i can't vote with that equities doesn't do anything in terms of the direction so um yeah really really cool on how this is going to help evolve um dao's all right well the most bullish podcast we've had yet comes comes to an it comes to an end i

think uh we might have started on the low but we finished on the high lots of exciting things happened in space stay positive take care of your mind uh go for a walk get out in nature take a deep breath don't stare at the charts too much you know the short term can be very painful but we're all here for the long term if you need support reach out we're here for you guys uh and if you have not already done so uh fill out our application to join the web3 community as we go to uh a tokenized community so you can get our free nft fill out our application we'd love to have you in our community where we're talking about all this stuff

every day and supporting each other well said jay well said uh ditto to everything he just said and we'll see you in the discord thanks everyone see you guys thanks everybody thank you for listening to web3 academy we hope this helps you along your web3 journey if it does please share this episode and subscribe so you don't miss the next one by the way if you have yet to join the discord community you are missing out this is where all the magic happens this is where we learn where we ask questions where we network uh you want to be in there the link to join is in the description below and finally a quick disclaimer nothing in this podcast was financial advice crypto and web3 can be risky you can literally lose it all in fact if you invest on account of what we

say you probably will lose it all so don't do that in all honesty the point of this podcast is to remove the noise of markets and price and focus on utility implementation anyway so you should not take any of this as financial advice thank you friends and see you in the next one