ROLLUP: Stripe's Billion Dollar Stablecoin Bet | Noteworthy Investor Longs BTC | Kraken's New L2 | Self Custody Is For Losers??
59:32 Share

Bank of station is the fourth week of october s time for the bank was weekly roll up. Okay, where do we start? We got a record breaking billion dollar pipal. It's catching mainstream attention and IT could be a really big deal for stable coins.

We also got multiple layer tues adding to the theory um settled network this week crack in adding its lair to to this superchain what's IT plan, what's IT called. And then also world chain from world coin is online. In addition to all of that scroll another theory to dropped their air drop this week. Was everyone happy or was everyone upset?

It's an air drop. So what do you think, David, at this part cycle?

Was IT like all the other ones, or did to break the trend?

Also, a paul tudor Jones noted investor is buying crypto. We'll talk about why. And then Michael sailor, another notable cyp to investor, he's on the hot seat for basically saying .

self custody for losers, hot, not strategy for him. We're going to get to all of this anymore. But first amount to talk about our friends and sports over at zero X C O G builders building critical dey infrastructure ever twenty seventeen. I remember reading the zero y paper and teen, one of the few y papers that actually got value out of and stood the test of time. They are now building out zero X V to a full stack upgrade of their crypto trading aps.

What does a bring what is eros y to multi hop and multi plex x routing that that means just split trades across multiple liquidity sources in remediate tokens to find the optimal execution row across all the theory ms liquidity pools um you know bajillion ons of permutations ah in zero X H in his new engine will find the right one for you to make sure that you get the best Price, not just the best quote, but the best final Price when the tokens finally land in your wallet first in class for large trades as well as small trades. It's just the best. It's just the best.

And for all of you security maxims out there, they've also upgraded the risk exposures when doing all of this of permit allowance holders. If you know i'm talking about, then you know that these are the industry best practices to making sure that your was stay safe when you trade on chain. There is a link to show out. Bank was not cc slash zero x.

This is what trade is, one best Price beggin lions of permutations begin ilian, a very scientific number there.

We don't want begin arians permutations. We want the one person out of the begin ilian permutations. And that's what your exit .

gin into the markets this week. Let's take a look at our friend bitcoin.

where we had on the week up one point three percent on the week side of the week, sixty seven thousand dollars, ending the week at sixty seven thousand seven hundred. So OK, okay, flat. OK.

yeah.

about either. Uh, not great. Down two point eight percent on the week. Out of that we get twenty six hundred. A fl, pretty low, fell below to two thousand five hundred for a little bit.

currently at two thousand five hundred and twenty dollars. Eth holders in shambles. Dead sea. The sentiment going on in cypher. A, what are we seeing in the etf flows? Maybe should start with bitcoin, because I had a bank week.

did probably start and end with bitcoin. bitcoin. E, T, flows come on in hot.

I'm just going to art reading out of numbers. October eleven, two hundred and fifty million. October fourteen, five hundred and fifty million.

October fifteenth, three hundred and seventy million, the next day, four hundred and fifty million. The next day, four hundred and seventy million. The next day, two hundred and thirty three million.

The next day, two hundred and ninety four million. The next day out, eighty million. And then yesterday, the most recent day in one hundred and ninety two million racking in the numbers for there's a total inflows of twenty one billion. And like three billion, two billion came in, in the last like .

ten days are is so big, one of the big week about either.

I mean, it's not not too much action. We're at negative four hundred and seventy five million. It's like marginally inflowing, but not anything .

comparison. It's probably not even a tenth of the inflow inflows in that same h time period. So just basically take take the numbers that you heard and like you take ten percent of that, that was basically what pickin did. A let me show your chat is going to make you even saturday, David.

really like we're looking we're about to look at the eat BTC ratio. And the eat BTC ratio reflects the inflow that we were just talking about. IT is down to point zero three seven two.

which is the three year down. Wait three, you say three year low three year. okay.

So the lowest levels since April twenty twenty one, according to our sources here. You know trader then callin, he has predicted this ratio for actually some time. Memory came on the back last.

He he basically told us this. He thought he was kind of crazy back in twenty twenty two and twenty twenty three. But his range for the last years has been point zero three, still some ways to go two point zero four.

But he says that we are be in the bottom ing process right now. He says that kind of the home range. And over the next few months into maybe the first two weeks of january, that's when we're going to bottom. We might be at the bottom right now.

according to him, bottom.

or we could go a little bit lower before we resume some accent tier. And his base case is just reversion to mean, because he reads kind of the T A lines and algorithmic charts in that kind of thing. So this could be the worst of a David, but is definitely feeling kind of bad in sentiment land.

Yeah we ve we've been here before. I've seen that point zero three handle, but I was all the way back in like twenty, eighteen, twenty nine. Most people don't remember that.

Most people were not here for that. No, that's where the crucible was. That's where a lot of ships h sharpened.

Well, I have nothing more to say to eat holders of this. It's conviction, time and something that you are often say, which I like David, is you can't copy trade convention so you can have IT for this particular asset or you don't and if you don't, I mean Better, Better cell.

The actual line is you can copy someone's straight but you can't copy someone. Is the best total .

cyp to market cap where we are in the week coming .

in at two point four two trillion dollars below at that two point five trillion dollar market. But you I bet you I got you, we see three trillion by the end of the year.

yeah. I mean, I think so a particularly if we start talking about well, I don't know about them of the year, but like stable coin is included in this number two and that that's destined to go higher. Let's do a quick l to update drive by.

Of course, there's some major updates on altus and big the launch is happening that will get to for a second. I just wanted to highlight this and and thanks to our sponsored and friends over at mental for for supporting the section of the roll up. Um L U fraudful proofs are coming on base next week, okay? So this will elevate base from stage zero on l tub to stage one, which is a big upgrade in terms of coin basis.

Inability to use your funds. Basically, when you have fraud d proofs, you, as a user of the base chain, have the ability to exit to l one, no one can steal permissionless. Ly, no one can steal your crypto asset on bed is a pretty big milestone.

And there are a lot of people out there who said would never happen basis, never going to decentralize. All the altus are not going to decentralize. Of course, op may net did IT not too long ago, and now they're ruling that out to base.

I think that i'll become relevant when we talk about crackings later to a little bit later. This is luke Young blood saying in about a week, base will become a stage one rolled up with permissionless fault proofs. While arbitrium has been ahead of base, their system only accepts a foolproof from a Whitelees set of actors. So base will leap program for a bit. I love this competitive pressures of like which l two ecosystem became become more decentralized and like the the pressure to to be on the front of that.

This is just about property rights. So with stage one, and even more so with stage two, your property rights on line or tools are given much stronger, almost equivalent assurances to your property assets on the aim later once. So it's all about just like permission ously expanding atheist property rights settled network, a very necessary part of the a theory road map moving into markets.

Some big news out of the world of paul toter Jones on square box here there is an an interview on square box where he says all roads lead to inflation and the interviewer, Andrew ross kan, asks him what exactly he's long if he thinks over the to flag. Let's go watch that clip right now. Given all of the things you're saying, are you off buying gold and bitcoin? I think.

I think all roads lead to inflation. We're gonna end up, if so, which is always .

need to inflation. Therefore, gold is a good investment.

Is big coin a good investment to you? I'm long go. I'm long bitcoin.

I think commodities are so ridiculously underworld, so i'm long comedies. I think most Young people find their inflation hedges, the the nasdaq. That's also been great.

It's probably some combination. I probably have some basket of goal bitcoin commodities and masked at something like that. And I want to zero fixed in cut.

I really like framing actually that he's so long commodities or he believes that commodities are just super undervalue because I I think if if you go to coin deco, you just look at the market you got big in either like all the other ones, these are all commodity monies. Every single layer, one else is a commodity money. So to me, that day, when is just like secularly bullishly the whole entire .

crypto industry yeah I ree IT when he says all roads lead to inflation, some people will hear that and think he's just talking about consumer Price index inflation like CPI and they'll be like, well, no powers got that under control. Look at all the reports. I mean, he came down from a percent to now it's like roughly two to three percent.

And that seems to be sustained moving for that's not what Jones is talking about here. He's talking about the increased supply of money. He's talking about currency debasement.

Essentially, he's talking about asset Price inflation, ways to hedge against that when there's more and more liquidity and more and more fiat dollars in the system. That's the type. Inflation, he means that's why he's pointing out there awesome hedges out there.

Like commodities, he says those are under valued and even like the asset can be A A inflation had as well. And certainly, we think our cyp du monetary assets are the best of the best with respective inflation hedges es, because they're completely outside of the the fiat system. Just a stats on this .

metrix on this. Just to puts the numbers here, the congressional budget office s mates that the federal government will clock one point nine trillion dog deficit this year, quite the end of twenty twenty four, and that's on track to grow to two point eight trillion by twenty thirty four. So in a decade were gona have a two point entrance of our deficit. All of that, that's just that inflation, all of that. How how do we cover that deficit, inflation, inflation?

We are eleven days out from the election. So let's do a check on Polly market and what we're seeing on the twenty twenty four election forecasts, at least on Polly market. Is trump still up sixty one percent odds of winning for Donald trump versus coal Harris at about thirty nine percent? I've actually been surprised at how trump's lead has held for so long.

gone up and then held its position exactly.

And so what I sort of expected to see if this was more kind of short term noise or maybe even market manipulation was, you know trumps sixty percent like fading as the day's progressed. What we're seeing is some sustained lead here. So what does that tell us? I mean.

I mean, the more of volume that's coming in at these current evaluations, but like percentage likelihood, uh, this is the more true the number is as according to like the market, right? Uh, but in addition to that, I think I saw this market the senate control after twenty, twenty four, eighty four percent chance republicans, which i'm obviously Donald is the far more appropriate to candidate. But I think there's a lot of contents that it's actually really the senate and that really matters in terms of the crypto industry because the senate is going to be the people that or does not pass procreate or regulation. And when the republicans have an eighty four percent chance up ten percent on the week, eighty four percent chance to win the senate, that that just vote so well for the industry getting legislation past that we needed.

I do think that's like think of that is like, you know higher percentage likelihood of getting fit legislation and actually through so we understand what's a commodity and what's a security and cyp to higher percent likelihood d of getting stable coin legislation through lower percent likelihood of having like regulators who are sort of unchecked by laws. So you like definitely the election is moving in. Uh, crypto s favorite here.

H David, we ve got more to talk about crick's layer too. We have all the details also. That monumental trip to acquisition will tell you what that is.

We think it's going to main instream stable coins. And was kid to the Michael sailor gossip. Did he really just turn against self custody? Is he just another banker? Now we will talk about all that and more. But before we do, we want to think the sponsor that made this episode possible crack in are recommended exchange for twenty twenty four, also the exchange that is bringing you a brand new shiny layer to let's go here from them.

Now, if you want a cyp to trading experience, backed by world class security and award winning support teams, then head over the cracking when the longest standing and most secure cypher platforms in the world cracking is on a journey to build a more accessible, inclusive and financial system, making a simple and secure for everyone everywhere to trade cypher.

A crackings intuitive trading tools are designed to grow with you, empowering you to make your first or your hundreds trade, and just a few clicks. And there's an award winning client support team available twenty four seven to help you along the way, along with a whole range of educational guides, articles and videos with products and features like crack and pro and crack in nt marketplace and a seamless APP to bring in all together. It's really the perfect place to get your complete cyp to.

thanks. So check out the simple, secure and powerful way for everyone to trade cyp ta, whether you're a complete beginner or A C and pro, go to a crack in docs sah back to see what crop can involve. Risk of us tired of strugling multiple wallets and websites just to navigate web three me magic eating the home of web IT is becoming a super debt where you can do everything.

Cross chain all in one place are solving U. X. Issues by building products. Every chain ecosystem swap, sparring and lending N F P S and more all seem most cross train.

Instead of hopping between county sites and handling multiple laws, just use the same time into to the meme coin r plus, the M E token is coming out this quarter from the M E foundation. If you use any of their protocols like the N F, T platform, you can claim them. So check out magic eating today and want them become a super debt.

And the home of web three in real time, you can get there at magic eden di o ticket started the unit wap wallet is officially the preferred wallet of benglis and is the one we use any time when you want to transact on train where're, on your brother's or on the go. You wallet easier than able to swap anytime, anywhere, use your water to transfer funds directly from the top, and tries exchange and captain thousands of tokens. Other chains like bed arbitrium and optimism, and delivers deep liquidity, fast execution and reliable quotes with zero gas swap through unsweet x and when IT comes to security, you can rest easy knowing its back by unis ob lab, one of the most trust teams in defy their code is open source and independently reviewed.

So you know, it's protected. So why wait? Download at the union all today on chrome, IOS and android, and don't forget to claim your free ef username directly in the mobile.

Start swapping smarter with you swap introducing ink, the brand new op stack later two out of cracking crackers going on chain. Uh, and they are doing IT with their chain called ink. That tests net is coming in seventeen days with main net coming in q one twenty twenty five.

It's cool. They are actually introducing this dev con. So are going to have pack thongs s that sort of thing. So really getting right into the authorities community. Of course, we've been wait.

There's been rumor for a very long time that cracked in in was going to launch a layer two and there was of them discussing like talking to various uh, there are two solution providers and a looks like they've been doing that for the past year, David. This isn't just coming out of the blue. They're coming out with an announcement.

They're like, yeah, we're like a week or two away from a testa and we're going to a launch main net in q one. So why why is this a big deal? It's a big deal first because this is a total win for atheists and the authorities, economy and kind of the layer two road map.

What we're seeing here, David, is all of the centralized exchanges. They either have a layer two or they have a plan to launch a layer too. I mean, the one outliers by who has its own kind of like later one chain. But you wonder what the trajectory of that is when everyone else is a building out a layer tune, they're bootstrapping security in the centralization from the authorities network.

So so that's position this is something that we longed hope for and long predicted at bank less that all of the the crypt to banks, we call them the the centralized exchanges of the world, would actually start to move more and more on chain with eventual destination of all their assets and their order books are fully on chain as well. I mean, that's a long time out, but you can see the migration, the progression here. Base has its own layer to the cypher dot com with rono s has their own layer two that's on the Z K sing stack.

OK x has a layer to as well. And this is crack in joining their ranks. A few cool things about this that I think you're call. Anyway, it's going to be on the super chain. So that's going to be a very interesting cohort already have based there. You have unchained there, which is as just announced earlier this month, you have sora there have an interesting a malgamite tion of other player tools and a lot of liquidity, a lot of centralized exchange liquidity, the largest decentralized exchange with unus wap being there as well. I think that's going to be a very interesting and IT positions both crack in and coin days on the same ecosystem, in the same economy.

in the same family.

yeah. So what are they doing? They're not quite competing against each other inside of the superchain that they're sharing liquidity because across the superchain, all of this liquidity we were talking to bend from optimism yesterday. It's all going to be shared. And so what feels fragmented right now in the superchain is going to like come together and and feel like one single chain.

And so it's interesting position for both base and the coin bases l to and crack in to have kind of an all boats rise a type scenario where what's good for basis is good for ink and what's good for ink is is good for base. I love that dimension of IT, and I think that's going to be interesting to watch. Of course, they're bringing the crack and depth with them.

We're talking to the lead of this project. His name's Andrew. He's got over one hundred developers at crackin working just on cracking in on chain exercises.

So this is a big deal. First, crypto banks with altus. Then the actual banks, they are actual like real world so called banks will have altus.

And our prediction is that every letter in the world will eventually end up with some sort of cyp to bed. No layer two, layer three letter inside of the crypto ecosystem. We're all going on chain. David.

we didn't episode with Andrew. I'd actually never met before, but very eloquent, really interesting to see him uh come out. So in is actually this uh a sub unit inside of the cracking uh system so independent from the crack in organization owned and Operated byron king but still independent kind of in the same way that basis but then also bent James from optimism.

So if you're going to learn more about that, we did a part cash. So that's probably actually out out in your power cash v youtube as well. Movie in to crypt o's largest acquisition to date, stripe requires a stable coin startup called bridge for one point one billion dollars, just blow in the water out for all previous acquisition records.

So what? What is bridge? Bridge allows businesses to create, store and and accept stable coins. That was founded in twenty twenty two. Which is crazy at one point, one billion dollar acquisition for a company that started just two years.

Guys really good job from two former coin base executives, exact abms and Shawn, uh, their intention was to compete with a swifts network and with credit cards. Honestly, pretty easy people to compete with stable coins on your side. A largest acquisition for stripe as well as a cypher industry.

If you're not familiar with stripe, it's a just a payments company kind of web to fin tech payments company, definitely the most valuable definite one of the most valuable h fin tech companies in the world. IT Operates over one hundred and thirty five countries, millions of businesses. Uh, work with stripe. If you guys never use a little tap to pay on that little square thing, the square White thing, or you put your card into the square right is kind of like point of sale for consumer payments for businesses on the ground. And now there's just like very intimate, stable point integrations into the stripe vertical.

I think this is actually huge. I don't think it's high probably to say like stripe is basically internet payments today. They kind of like modernized and revolutionized payments on the internet.

Made is super easy with they're of I like everybody on the internet uses stripe in some former fashion. And this is a big vote of confidence for stable coins. You have to think if stripe is doing this day, they are betting that stable points are going to be a big deal.

Maybe they even see regulatory tail wins on the horizon, right? And so they're looking at, well, you know congress in twenty twenty five or twenty twenty six could come up with stable coin legislation. Yeah, we're looking at one hundred and fifty hundred and sixty billion dollars stable coin market.

Now you foot the switch on some legislation that that goes to stable coin in the us. And you you quickly turn into like a multi trillion dollar market for stable coins. So all of this is uh, hugely bullish.

Zack abms, the cofounder of bridge route. We started bridge because we thought stable coins could become a core global regulated payment platform and the first wave of interests of cross border companies. Today, we're moving many billions in payment volume, but more importantly, we're now helping hundreds of developers all around the world. Crisp, he he etes out .

the importance of stripe whole heartedly. Ly embraced ing. The blocks changes as a signal for other phin tex is not to be underestimated. So this is also kind of the conversation that is going round in the gypt of VC land is that stable coin deals are about to get very hot um because we just had a approval exit opportunity for any VC investing in stable going deals.

Um and then also you would think that like any other stripe competitor is looking at what stripe is doing and be like damp, do we need to be doing that? Yeah like how hot is that sector like I be behind here. And so there's perhaps a little bit of gold rush coming in, in the stable coin start objector.

Uh and so that's kind of been the conversion behind the scenes there. Moving into the drama of the week, Michael saylor feeling some heat after he called anyone who takes self custody a paranoid crypto anarchists if you hold your own keys, which is kind of a hot take for an industry that literally invented and has imbued deeply into which culture the idea of self custody. Ron, what was your reaction when when you heard this?

I can't believe a big, like a notable bitcoin actually said this.

The bar bit coiner know.

We should just play the clips so people can desire for themselves. Here's Michael sailor being interviewed in what he says. If there is more bitcoin, bitcoin held worth these third party kaas audience, what risk does that post having greater supply held by fewer large institutions? Does that increase the risk of seizure and conversation like we've seen with gold? And is that not exactly what that coin us don't want to have?

Now I think it's the opposite. I think that when the bitcoin is held by a bunch of cyp to anarchist who aren't regulated entities who don't acknowledge government or don't acknowledge taxes or don't acknowledge reporting requirements, that increases the risk of seizure. You have an og cyp dal community, very hard core about IT. But if you look at where all the money is, ninety nine point nine percent of the money is actually in the traditional economy.

If you consider the great depression and make people think that they go with safe and banks until the executive vote of one thousand nine hundred thirty three. So we're not entirely safe for me to know that kind of a wild thing to reduce my happen again. But history does repeat itself so wouldn't entirely .

people say that moly mostly it's paranoid crypto anarchist say OK because it's it's a it's a myth and a trop that goes on over and over again. But first of all, he didn't really seize the goal. People voluntarily returned in the goal. They didn't go and kicking everybody's door, rest them, shoot them to take their goal. That never happened.

Well, they did make IT illegal and basically send people to prison if they didn't turn in all of their gold. And this was A A federal law. Uh, no, at at the time, this is a pretty crazy honestly coming from Michael, who is the big coiner of big corinne, at least according to some.

So is let's talk about the reaction. So this is scena from twenty first capital saying this is terrible for sailor to become a chill for the government and banking system and call all true bitcoin ders paranoid sailors on a mission to relegate bitcoin into an investment pet rock and halt its usage as a currency spooky vives. It's interesting to this comes off of news we were talking about last week where course sailors amassing all of this big coin, well known, he has dollar across average, his way into microstrip gy, holding like over one percent of all bitcoin supply.

And he was talking about launching a microstrip gy bitcoin bank, especially on top of that. Well, that is not bank less at all. That is all custody. And so like maybe, maybe David Michael sailor is doing what's in Michael sailors best interest and not the interests of this essentially zed back less movement that most .

of us are here for. There are two pillars of bitcoin that you do not violate, one, twenty one million units, which Michael hailer loves and nose and its spouses. And the other is self custody, strong property rights, permissionless custody over your assets. You have to have both. The reason why, like actually those fit very well together, is because the inability to inflate bitcoin is property rights over the amount of big coins that you have percent, but you also have to batch IT with actual real property rights.

The ability to hold your own bitcoins and sailor nine the other, half the other into the Young of of bitcoin system is kind of just like an a front, an offense to the idea of which all the takes on the og s repeated out this week before he says sailor is getting trash for the self custody comment, as he should, a fatal lic said. I'll happily say that I think Michael sailors comments are batshit insane. He seems to be explicit arguing for a regulating, a capture approach to protecting cyp du equal.

I thought, put this mean together that I think, and capacity everyone's ideas. This mean format is the guy riding the bike who sticks a sticks through the bikes, pigs, and then falls over. Churchill sees the gold.

Rose of val sees the gold. Germany sees the gold. Japan sees the gold. Russia is the gold. There's nowhere on earth you could have kept your gold.

And then now, twenty twenty four microsys lor says, law, no one is going to kick down your door and sees the gold that never happened. A fucking paranoid cyberhomes nets. yeah.

So of a hotch. So there is actually some of people saying, actually this is, this is positive. E, V, from sailor.

Sailor is being listened to by the status quo, by the incumbents, by the banks, by the regulators. And this is like a good look for bitcoin. If you have like mr.

Bitcoin saying, like, oh yeah, you know, the old system is that I totally finding good like bitcoin has got to pay their taxes. It's a toy k to custody at with the system as like a prisoner's delima strategy of trying to CoOperate with this system to make big coin at less sketchy. That's the defense of sailor, which I think kind of there's something there.

Is that what sailor is actually doing? Or is he actually know? Sure, we take him at face value. I kind of think we should take him at face value.

yeah. Personally, I don't think there's anything like there. I think that this is just a little bit of sailor boot looking. This is the comment mital hole sailors willing to criticism from the maxim order to make bitcoin less sketchy and provide cover for institutions. That was basically the case.

And he was talking about the crypto holders not paying their taxes like self cussy is nothing to do with not paying your taxes ah he did has to do with like not having a third party, have all of the like, own all of the via and all that you get is nine U S. I mean, is the entire purpose for for bitcoin, for crypto, to for going bankers? I got ta say IT was a relieving to see some of crypt o og s you really come out and and say, hey, this is not okay.

By the way, saor kind of retracted a little bit of this. At least he had a tweet statement. And if you saw that, we don't have IT in the show, but he was just basically like, I support the right of all bitcoin holders to like b self custody.

He didn't exactly apologize for what he said. He just sort of, I guess, reheated that he is a supportive of self custody. So maybe it's trying to walked that back, but bicoastal wary of this type of thing. Everybody in the should be wary of this type of thing.

Culture matters.

Did you see you see this first saw tire book title called the .

compliant standard, my stand.

rather than the bitcoin standard? I think there's an element of that here. Fun fact, David, you're ready for this.

In fact, I am ready right now. BaLances of either on centralized exchanges are lower than bitcoin. They continue to be lower than bitcoin.

So of all of the earth that's out there, only ten point four percent is inside of centralized exchanges for bitcoin. That numbers actually fifteen percent. okay. So ten percent for either, fifteen percent for bitcoin. And you can see kind of like a flipper ing that has happened here over time with either started out with more on centralized exchanges and now you where we are at this point, twenty twenty four as less in centralized exchanges and more in in h like decentralized exchanges and altus and kind of like the bank, less world. So does this mean, David, that either the asset, the monetary unit, is more blank, less than biton.

You're ready for me to sorry, douse some water on this sure go IT. Um i'm pretty sure that this charts we need this to be factual by the listener because I think this is true, the percentage of centralize exchange each either that they go in stake like coin bay， C B E or anything staked by cob is is not reflected in this art. And a no, there were any either is being sticked by the centralize exchange. IT doesn't count. IT is being on the central, on the, on the centralize exchange.

I think the whatever metric we're using and we should get like kind of the right metrix for this, this is a really important dimension of which is percent that's decentralize, the percent that's an you like held by by code and not by third party institutions and intermediate, whether this is bitcoin or whether this is either or or any, any asset, it's all about going bank less is all about decentralized finance.

David, we got a lot coming up next. The school airdrop is alive. So of course, everyone is really happy with this and grateful.

How's the people can do in and who got IT? Also, the world coin l two has launched. What is this about? So not just cracking on the week, but world going with that.

And some uplifting news about the baLance. Exact who was stuck in a nigerian jail. We get to all that and more before we do. We don't think the sponsors that made this episode possible.

new projects are coming online to the mental layer to every single week. Why is this happening? Maybe because mental has been on the frontier of layer to design architecture since I first started building mental D A, powered by technology from icon D A. Maybe because users are coming onto the mental layer two to captures from the highest, develop and automatically receive the points in tokens being accrued by the three billion dollar a mental treasury in the mental rewards station. Maybe is because the mental team is one of those helpful teams to build with giving you grants, acquired ity support and venture partners to help boots drop your mental apple.

Maybe is all of these reasons all put together? So if you're a dev and you want to build on one of the best foundations in cypher to, or your user looking to claim some ownership on mental defy apps, click the link in the art with image wear, A I lock chain convert where decentish zed intelligence Operates transparently with well through infrastructure unlocking boundless human potential. And that future is here with zero gravity. The first dealie ed A I Operating system graves faster, fifty thousand times faster and a hundred times more conspicuous than current alternatives, unreached the power of high data applications and modular ai with arrival group at limits, scalability and a verified A I frameworks. Geography is turning the dream of on chain AI into reality.

Curious about how A I and when three can you shape the future? You can visit zero g 到 A I to explore the infrastructure as revolutionizing dealie ed A I critical announcement out of the world of a cross。 And unis wap unis wap in the APP and also in their wallet has integrated across kind of directly into their front end and then also when the transactions made into the transaction self uh and so across this intent based bridging has now gone directly into the uni swap of swapping and so you can swap and bridge right into uh inside of the APP and this is overall a part of the story of theory um layer tool just being woven together by various different technologies this one being across and intense and IT also prickly if you want to go from layer to to layer to at least the one that they showed in the demo from arbitron to optimism h two seconds and two cents and so this is a bridging standard of bridging solution being integrated right into universe wop ahern's biggest exchange.

Uh, and I would have imagined this kind actually the first step. Uh, we can see this today because people who are using unity sp kind of know, I think, or two about bridging and all this. But and I was now that solution rather than because usually I would have to go to unus open, then over to across. And now these two solutions, these two problems are collapsed together. Uh, and I think this as we go on even more abstraction layers and just kind of smooth this entire process over, i've always wondered .

to what extent a theory ms fragmentation problem would be great quote, solved just by like intense. You were talking about bridges are just a minute ago. And like by that you meant like across ses. A particular you take on on bridging ing and getting assets from one place to another, one chain to another is through using intense. And we've talked about intense for her like a while now, probably you eighteen months plus, but to see them go into production and some standardization around this cause track me find wrong.

I think the next step is a uh arc seven, six, eight, three standard that's co authored by both you swap labs and across I expect that to be widely deployed across the super chain and then probably picked up by other layer two environments. Anyway, i'm kind of like wondering to what extent you think intense will just basically solve the fragmentation problem. I don't think it'll get us to one hundred percent, but there could be the case if you see the standards like this widely deployed that IT gets to like seventy, eighty percent.

And again, the feeling for the users, just like the change is fully abstracted. You like my asset can move from here to here in three seconds. That's what across the use of is doing right now. And like IT won't feel like you're crossing over bridges because intense kind of like you are solving the gaps in between.

I think, in intense and a few other interpret standards solutions start to fill in a theory, an s fragmentation from like the top down, as in like the kind of the top of the text tag. And then there's also some like bottom up solutions as well. We literally talk about the bottom of the texas is in the protocol.

And so some Sparking needs to be added to the a three layer one. We need to increase the capacity of the a thermal layer one. And all of a sudden solutions that are higher up these international standards, these intense, all this work more effectively. And we just kind of to start to fill in the gaps between all of these different chains. And then ultimately be everything just is completely fixed, completely defragment anted by the cosmetic layer, which is just the applause .

er schooley first airdrop is here. Let's talk about this four minute. So what happened this week? What is score for people who who don't know this is another layer to there? They're not optimistic.

Roll up. This is A Z K roll up. Um what's unique about squall?

So as we have enjoyed a evm equivalency across many of the other optimistic roll ups like arbitrium optimism, this is the first zk evm that is one to one equivalent with all the other smart contracts that have ever been built and deployed, including all the two links around the of the ecosystem. So they just announce their S C R, their scroll airdrop.

So with a total supply of one billion scroll, we have one hundred and ninety million school in circulation from the airdrop clock in at just under a billion dollar fully diluted valuation with one hundred and seven seven million dollar market cap Price currently clock in at ninety three accents. So who receives the air drop? There has been a very long like air drop farming campaign just to earn Marks, which is kind of their points.

Five hundred and seventy thousand wallets, we'll receive five point five percent of the token supply. And so there, of course, were eligible participants, some ecosystem projects in the a contributors presented airdrop campaign. Um the air drop claim is open on october twenty second, which was two days ago.

Uh, you can go to claim m dots, corda I H or you can go to bingles claib les benger stock comas slash to see if you um earned a coral air drop. That claim period is open for ninety days so so do not forget this why we have been claimed. Les, uh, and so you guys have ninety days to claim your girl air drop if you received any of the Marks. There were some complaints as there are right or all in drops.

they were specially now makes complaints.

A A, an account puts. So the other there some analysis. A about who got what. A apparently one hundred, they top one hundred.

Wales have farmed a thirty percent of all of the Marks, which kind of compressed what the long tail was able to receive A A while with about a thousand Marks, again in points, will will get about ninety eight dollars in. The claim here is that some of the whales were able to just game. The game sucked up so much of the supply, leaving very little for the long tail.

But this is also the same story that we've seen with every single air drop. We know that the air drop beat is broken. Screw has been doing their their point farming systems and even before we all realize that the air drive mechanism was broken ah and remember we did this episode titled this cycle is cooked talking about this like era of talking distributions.

There's always areas of taking distributions points farming the air drops seems to have been cooked. Uh, one of the complainers was pretty strait forward who talked about this thing. Uh, seeing scrawl launch at eight, two hundred and forty million dollar market caps down since then shows mean that the universe healing every VC and their latest round is down thirty percent from their initial investment.

By the way, I farm screw with three hundred wallers and pass their civil flawless ly. Perhaps one of the guys contributing to the ending of this matter, I still fdd done a lot of all before bothering to claim my token. And sometimes, only sometimes is more important that your enemies lose, that you win. This is the people, that kind of people that rewarding with this air drop meta um please move on from air drops um we need these .

accounts are so blatant about IT there's like this is such a sm and haha.

I was one of the sand and you just let me ah ccs.

that's why this meat is so cooked.

And one thing prety interesting actually headed up a theoria blobs. So all people were claiming all their girl tokens at blob capacity. Blob consumption jumped up.

And so we had about like twelve hours, or maybe even eighteen hours of, uh, blob contention, Price discovery, Price discovery for gloves. Blows started to get old by these different layer tooi think a thereon collected something like fifteen thousand dollars during the air from layer tues. Buying layer one blos a is back.

David.

We fixed, uh, that has since gone down. We are now once again below the blob ticket, which which is good. It's like an opinion.

Way too early to be selling blobs. I personally want to sell blogs. For three, four years. I don't guy, it's cool to see that. Like you know the pricing mechanism the pricing mechanism loves actually doesn't need to get IT fixed but like laudes arbi blobs can bly blobs will pay either the layer on protocol for blobs. Um good.

Like right now we have a target of three blogs in the future, we need to target we are going to target in the eighteen partial two hundred and fifty six blobs. I hope blos stay free until then because I want more layer tools buying more blogs. I want a therm settlement works to expand.

How many orders amount is that? Two orders of magnitude from three to two hundred fifty six, almost almost orders of magnitude. Because that's that's the role of centric road map. I want all of the settled networks, a layer to settle down to a the um then we can start talking about blob Price discovery.

But you can only imagine when there is two hundred and fifty six blob targets being consumed by bajillion ans of layer tools, how much net the blob demand there might be. This is a small taste of that future. We don't want that future of to happen yet. We want to do some penetrated pricing in the market is what we're seeing today.

It's actually hilarious to me how the market can interpret this barish IT wants or can interpret this bullish. And it's like really up to you as an investor, you can either interpret what's going on with A A theory um and it's not burning anymore because blogs are very cheap.

You can either think that's like bullish for either the asset or you can think that it's barrier h for either the asset because it's not actually ing value at any point at this point time, right? And so it's just like the market sentiment that were in I feel like thems having a hard time in the narrative side like winning, right? So you know, now people are pointing to you blob space being consumed and they're like, well, there's not enough blob space or they're looking at the fifty k burned and they're just 4k what a joke of an asset。

You know like it's just a it's funny how this can be pretty ltl with my chosen interpretation, right, is that um similar to wish this goes in cycles, the theory block is going to get penetration of pricing. You altus kind of hooked into the network effect of a theory. Um and then either is exported as a monetary asset, eat is money and h it's net beneficial for all of crypto because we have you decentralized chains and also eat as a monetary asset inside of these layer two economies.

This is good for either whether IT is burning at the moment or not. That's my chose interpretation. But others are super barish like for whatever reason oh, you like, we're going to expand more blob space, more alto to take all the authorities users.

And this is bad for eat. Baba baba blast got almost like done you like with the debate here. I'll just see what happens.

You like you said, begin as a conviction time. We ve had the data, we've had the conversations, we've had the debates, and now we just seemed them to play out, right. So crackin announced in their layer to scroll, launched their airdrop in our world coin launches, the world chain layer two built once again as an op stack chain inside of the superchain superchain kinder, just like collecting some dubs left and right here. Um but this is actually definitely one of the more interesting layer tools it's going to use. Ref, the client out of paradise.

the georgia OS constant total is cant .

hyper scale clip scale IT will be the native token um but users can pay fees using a with the world coin token. W L D as well 啊。 But also interesting.

Ly, I think this is a cool world. ID holders, people that have the world ID APP. And I have scanner, I ball will have priority access to block space. So it's human reserved .

blocks 的 humans advanced and there's .

an allowance for some free gas for transaction。 So if you are verified human, you get an allowance of free gas to transaction on the world chain. Uh, right. How do you know how many users there are of world idea? How many world ID people have scanner eyeball and have the P I do because i'm .

looking right at the number of my node, David, but I didn't before this.

So I want you tell me million, there are seven million world ID holders. Yeah so this has always been the strategy of role coin is you pay for the you pay token to get people scanner arables down the APP uh and then get on chain.

It's still whatever you say, sand there is so like this topic and sketchy.

Have you been orbed yet? Have you got I have not been. My persons policy is that I will not be awarded until there's a very large incentive for me to get on world chain and as soon there is a good reason for me to get on world train.

i'll go get my eyeballs. H right now you know the privacy of IT or like you don't think it's .

like biome, I think the the technology checks out. I am not A Z K expert, but like I do believe in the ethos. So yeah the zk rap, the privacy, like what do they going to do with my ebl? Like they can do anything yeah your ebs .

already on the internet and all sorts of ways ably.

I actually signed up for clear one time like I know that mistake.

It's like, you know, the twenty three and me like you get your DNA tested and that sounds like like a really bad thing. Oh my god, some third party company has my DNA and like, you know, I agree with that. Like I I understand why that that feels really bad and yet also like somebody could grab my DNA, extract my DNA if I just like you leave a skin in print on a glass that I use at a restaurant, something like this a my hair false and they have my DNA that way I don't know. I think there's an argument for distant pia, of course, of like one world I D and is like run by corporations if we can keep IT to centralize, like maybe that's not so bad and all .

the same thing with with later tools and fraud proof and being a stage to is like you like sure the sequence or can see, like can suppress your transaction, but you always have your problem of right? Is this like you use fraud proofs, you use your knowledge proofs to have strong assurances. And is the same thing with your eye, you get your eyeballs gain and you have the assurances of k that no one can do anything evil with IT.

Yeah and I I might be more worried at this point time in the distant pius coming from a different direction of, like I don't have no idea who's a botton, who's a human online, right? And now we have, like you know, A I agents that are spinning up mean coins. I don't fully know whether that thing is that's another story, but that thing is human Operated or not.

And like her, the humans. And for the box, you could have a dystopia that way if we can't separate, if we don't have a proof of humanity without a passport. So there you go.

That okay. One thing that's interesting that I want to ask you, so world coin is going to be in the super chain, along with track and ink, along with base, along with unit swap a. And so if the world chain a, they specializes in kind of like decentralized proof humanity, that's going to be available to this growing network of of chains and economies inside of the superchain. You could come up with some really interesting primitives that way, shared liquidity across all of them. I mean, once they fix the interact fragmentation problem, that could be a pretty interesting sector.

The world, the world, like the APP, used to integrate with O P mana. You actually I member the the number, somebody to act me on this, but the like share of transactions on op a net that world world coin was something like sixty or seventy percent like stable coin transfers a world ID like seps. That's why they're starting to their own chain because they have their own their own sobbing blockchain.

And like the same pattern of like the world I D world train is taking all their transactions away from op mana and they're taking IT on to world train. And it's the same pattern of just like the theory um layer one is getting is being layer tools or parasitic to the a theory layer one. Superchain chains are parasitic to the op main net because they're all deploying their super chain chain.

But the one difference is that all super chain chains do pay fifteen percent of sequence or fees to the O P A net. And so O O P A net does have their take rate there fifteen percent. Take great that the theme layer one does not, but the theme later one as a credibly usual setting layer just takes the blob fees, which are going our free right now. It's the same pattern is a flat pattern of these chains settle on chain.

settle on chain. Yes, yes. And like look at kind of the upside, right? So are you just talking about value, a cruel of like, you know, that may be going away or being diluted for eat holders, but on the same token, eight million users, it's not users.

Yx are not fully on chain, but like potential users growing to hundred million, growing to who knows how many ball chain is going to on board and having east as a monetary unit inside of that chain. I mean, I just think that's like nett bullish for eat. When you ask any question of all the users, you have eight million potential users of uh, world world chain. So you that's the trade off here. Let me take you to central bankers, David because they you know the first ignore you.

then they laugh. I, well, first .

ignore you, then they laugh at you, then they fight you, then you win. I think we are getting even closer to the then they fight you face. There are two interesting papers released this week, one by the european central bank that claimed that those who acquire bitcoin in earlier date basically was an unfair system because IT would non holders should recognize.

They said that bitcoins rises fuelled by wealth distribution at their expense. There are compelling reasons to advocate for policies that cured bitcoins growth or even eliminated a. The stakes are high. Pro bitcoin politicians could skee wealth distribution, further threatening societal stability if non holders don't push back.

So this is the european and central banker author, a paper that saying, basically like hard money, strong property rights outside of the hands of the central bankers and the nation state, like we can move the dials as much on wealth distribution, so are kindly like waking up and realizing that size multi evensen. Last week, I thought this was a really interesting paper from. The federal reserve bank of mini apples recall the federal reserve bank as all of these kind of like regional chapters and and this is one of them. And they produce a paper that suggested that assets like bitcoin should be tax or banned to help governments maintain deficits, help them maintain this is them staying the quiet part out loud again. So they said in an economy where the government tries to uh maintain permanent deficits using nominal debt, bitcoin creates problems for policy implementation and as the quote IT introduced, baLanced budget trap in alternative state where the government is forced to baLance its budget.

an alternative .

where they force to baLance, we have to baLance our budget and so what do they recommend in their conclusion? They recommend this a legal prohibition against that can restore unique implementation of permanent primary deficits or also a direct tax on bitcoin. They're easily saying, like if this the whole crypt of bitcoin thing takes off, then we lose the ability to money run this thing a deficit in print money and it's like, yeah.

that's what we've been say, yeah yes, entire yes. Why we're here.

That's what we've been saying the entire time. So but at first, they were ignoring IT, then they we're kind of laughing at IT. And now I think we are moved.

This is a week by week. We'll see this. And probably over years, maybe over decades, the central bankers are like, oh, shoot this, this is picking up. This is actually working, and they will shift more into the now they fight us face.

I'll see how that goes. I just love IT. When we watch like nation stay empowers that be just like tussle with this idea of bitcoin. Remember that I quote like two two or three weeks ago, where one of the risks of the ims saw of bital sore is that like we we need to control public access to bit. You just think that you can do that like the statements that they're making just are the super indication of exactly the thesis of permissionless finance permissionless money money on the internet and is like saying this yeah .

saying this here, like I thought this results killed rooms but no, there is actually saying that this will allow them to no longer print as much money as they want to.

It's so funny, are a tale of two governments, a tale of two powers that be. On the flip side of things, the city of areas, which has three point six million citizens, by the way, is the first city to issue digital ID to its citizens. So there is this uh application uh up called corky deep a inside of monostori. It's a local APP for accessing unico services documents, documents like a your birth records, documents like health care records, drivers, licenses uh and so um all of this is going on chain with verifiable credentials and as ek props to let users show that a document has indeed been authenticated by the government without disclosing the information that is to that case the classic example is like, okay, like why how can is your knowledge proofs be used to help people, uh, in their daily lives? The music example is when i'm going up to a bar and they say, I D please let me check if your twenty twenty one years old night what what are they also getting with my I D they're getting my name, my last name, my my birthday.

my address photo.

my photos and all they need to know is this binary, are you over or not? over? The only thing that they need to know, you disclose extra information mainly your address being the big one ah ah and so zk approve has been like you actually just simpler to the proof to tell somebody if you are are indeed over or not .

over twenty don't know all of the rest of information is just a binary yes is over twenty one or no is not yes correct .

uh and this is what is being rolled out to three point six million citizens of bonus are so what kind of documents can be sort there? They say over sixty different types certificates, growth, income taxes, vaccination data uh but also importantly, no third party, not even the municipality of areas, has control over the document. The documents are trust list.

So cool, they're trust list. Once they are issued by the government, they are bare assets by the, by the account that controlled them。 The Z K proof, the Z K proof system user data is protected against identity theft and data temperature, which is so sick.

All of this is deployed on A Z K sink. I think one of the one of the cooler winds a of the cypher to industry coming out of Z K sink here. Uh, my prediction here.

Um this is on the Z K sink era. H I think cork I D is going to eventually in the future. This is my hypothesis, my prediction. Uh, core CAD will make the core K I D Z K chain on the elastic chain. And then we will have the chain for.

therefore genti protecting citizen privacy, the level. You know, one of the most discovering things I do, and like modern life, is I must do this like multiple times a month. Now, whatever I am, like moving money with, like trade fire, like getting credit investors, something like this, you have to do the your self fee of yourself, and you submit your driver's license or your passport, and you do the self fee of yourself, and they get you to turn laugh, turn right, like they scan your face. And this is going to some third party company.

I have no idea.

probably in china they have all of this information about me, my passport, my life, my driver's license is just basically everywhere. And um like they have a perfect scan of my face too. I mean, if we have Z K photography, we don't need to share any of that information.

They can just cypher graphically check whether I am you know m lk yc or an resident of the us. Or not out to share all of that information. This is such an upgrade.

And this is going to protect us from so many like privacy failures of the modern internet and like the modern digital, a landscape that um it's very bullish. Who says crypt doesn't have a real world utility? David OK, it's not just about number.

Go up here as we say, we want to help you front on the opportunity. I should did an interview with the the leader of the cork idea, dago fernanda, who is the secretary. Innovation for bonus oris.

He's like right next to hobby er mila back in january because we like to front from the opportunity here on bank. So if you listen to that, you kind of saw this coming from a long way off. If you are curious what was going on there, there is a link in that to get that them, to watch that .

some uplifting news, to close a soft on the week. I was so glad to see this. So nigeria has dropped the money launder ing charges against the finance exact tigran gambara who was stuck in jail and absolutely atrocious conditions.

He's been stuck in jail for for seven months. His health was affected last time. Like people saw him in a in a clip of video clamp, he's like walking with a limp.

Anyway, a lawyer representing nigerian government prosecution said that tigran wasn't serving a key role of baLance. Finally, they're mining this and they were going to let him out and drop the the charges. This is after almost eight months being held in custody in a nigerian jail sale.

But you know, thankfully, this comes to and now i'm not sure what kind of pressure was pushed behind the scene to actually make this happen. I'm sure there's a lot of folks that were involved, hopefully in the U. S.

Government side. Hopefully we did something. Yeah, certainly bints was pressing for this the entire time. And and from my perspective, tig grant was basically a political captain of users like nabbed because what the nigerian government didn't want baLance doing things, messing with their fight system, messing with their their banking system, giving citizens economic freedom.

They were doing the kind of central banker thing that we were talking about, which is, you know, probably coming to to many economies anyway. Great news there. Someone of lifting way to you to end the week.

And that's the all the news of the week. We don't really have a mean of the week. We have a tweet of the week.

I didn't put this in the agenda. One of one of the members did, but this is a tweet from me. Uh, because of course eat Price comparatively, uh, not great compared to bitcoin, compared to sol.

And so I eat that out. When I invested my entire red netware into either and twenty eighteen, I was under the thesis that most other cypher market participants are dumb wrong. And i'm grateful to have a second opportunity to do that all over again. And that's kind what I feel a has IT hasn't been this contrarian, I think sense twenty and twenty thousand and it's starting to kind of feel like that level of contrary and this once again, uh, and I think that's pretty cool because feels feels comfy, feels like i'm at home.

David, ending the week with some eat a conviction here I gott imagine this we was not very popular on that APP that people call twitter right i'm sure to all twitter .

past time crypt witters past time is just like harper on bank less from like whatever corner really give you the theory um you hard bond back if you're a so on a person your heart bond bank you are a big one here you harp on bank list i'm just honor that bank has almost contention about IT people really care one way or another is .

right h well back this nation. Thank you for joining us on the we appreciate IT, as always, got to end with this new crypto is risk. Y you could lose what you put in.

None of this was an investment advice. You can take our conviction and make yours you can I copy trade that right, David? But we are heading west.

This is the frontier. It's not for everyone, but we're glad with us on the bank. Less journey takes a lot.