The Wolf Of All Streets - FTX Collapse, Twitter Shit Show, Tron, Solana, CPI, Elections | Review Of Crypto's Worst Week Ever

Episode Date: November 11, 2022

The review of the worst week in crypto ever! ►► JOIN THE FREE WOLF DEN NEWSLETTER https://www.getrevue.co/profile/TheWolfDen  GET UP TO A $8,000 BONUS IN USDT AND TRADE ALL SPOT PAIRS ON BITGET FOR ZERO FEES! ►► https://thewolfofallstreets.info/bitget   Follow Scott Melker: Twitter: https://twitter.com/scottmelker  Facebook: https://www.facebook.com/wolfofallstreets   Web: https://www.thewolfofallstreets.io  Spotify: https://spoti.fi/30N5FDe  Apple podcast: https://apple.co/3FASB2c  #Bitcoin #Crypto #Trading The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. This video was created for entertainment. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor. Nothing contained in this video constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to "Buy," "Sell," or "Hold" an investment.

FTX has completely collapsed. I've been trying to prepare all of the news for today, but it keeps changing every 30 minutes. And now it appears that FTX, FTX US, Alameda, etc. are all potentially it looks like filing bankruptcy to make it even more spicy and exciting. We forgot about the fact that we even had an election this week, a CPI print that was actually quite bullish for markets. Tron is in for bailing out FTX, and they're out for bailing them out, and CZ is in, and then CZ is out. Of course, we had a massive Solana unlock and saw that continue to dump already in the midst of upheaval from what happened with FTX. Basically, we are going to do the Friday Week in Review,

and it was arguably the worst week ever in crypto. I guess you'll stick around and hear all about it. Let's go. computer screen, your monitor, and maybe Sam Pegman Freed's cherub face and do that to the like button. You know, some days you don't really want to show up at work, but I still woke up at four o'clock this morning, wrote a very long newsletter about what was happening, which inevitably has once again changed in real time. And now the news has only gotten worse, unfortunately. What a week, guys. What a week. Vlad over here says, I'm in a bad mood today. How about you guys? Well, I mean, I'm in a good mood, right? It's pretty obvious. Yeah, I think it's pretty clear that there's reasons to be in a bad mood. But yes, as Ricky said, we are still here through

the good and the bad. Guys, I'm going to be here no matter what happens with my money, my mentality, and this market, because I still truly believe in Bitcoin. And I believe in crypto as an asset class and the underlying technology. It's just very hard at this point to believe in the people, the platforms, any of the centralized entities. You can't believe anyone. They say trust don't verify. I never thought that we'd be living in a world where my mentality, I'm one of the most, you should know this, I'm one of the most positive, trusting, silver lining kind of people with a very positive mentality. I don't trust anybody anymore. As a result of that thinking, I've had SBF, Mashinsky, Steve Ehrlich all on the show.

I lost money on Voyager. I actually have a little bit of money on FTX US that's been processing in a withdrawal for over a week. They declared bankruptcy today. That's gone. After Voyager, I had to move my funds to FTX US just to literally have an off ramp. I wasn't holding anything there, just a pass-through so I could get to a bank account. Bad timing on that pass-through. So I'm writing that off as a humongous zero, just like Sequoia and Galaxy are writing off their investment in FDX as a huge zero. But the fact is my level of trust and engagement with these people, you can see, guys, when I do a podcast with someone, I really try to be friendly. I really try to understand them, engage with them. And that is my Achilles heel, clearly, right? Because I'm trusting of them. I believe

the best in people. And then they continuously go ahead and disappoint the shit out of us. In the United States, it's innocent until proven guilty. I think in the crypto space, at this point, we sadly have to come with the approach that you're guilty until proven innocent. And frankly, I don't even know how you can prove yourself innocent because SBF would have been able to until very recently. Listen, FTX raised a huge, huge funding round at the beginning of this year, right? Giving them a valuation of what, $32 billion or something. For Sequoia and what is it? Theario's teachers union teachers union gave them 100 million dollars as evaporated it's sickening but for all of these huge entities the blackrock etc of the world to give them money they had to do due diligence which means that the books were in order at that point

and it really does lend credence to the idea that FTX was actually solvent, doing quite well until April, May, June, when the 3AC saga happened. When the 3AC saga happened, right? Listen, we can just start talking about it. I have like 80 tabs open and I have no idea how to get through them or how many we'll have to open by the time we're done with this stream. Yeah, FTX used client funds, FTT tokens, and Robinhood shares to prop up Alameda. We'll talk about that in a second because that's what I'm getting into. The rumor that seems to be potentially true is that Alameda blew up with 3AC, literally lost tens of billions of dollars, right? That's what it seems happened here.

And so instead of making the decision to let Alameda go under and run his other multi-billion dollar business, SBF decided to print money out of thin air and take customer funds, which is against their terms of service, arguably criminal, maybe not in the Bahamas, we'll see, decided to take customers' funds and lend them to Alameda,

where they then lost it all again. Nobody can fucking trade this bear market, it appears. Everyone's a genius in the bull market. Everyone is a genius in the bull market, right? And so that led to this entire saga of them using everything they could get to prop up Alameda and then eventually seeing everything come down the house of cards, obviously, and quite predictably, if you knew what was going on, collapsed, right? As I said, they violated their own terms of service and misused user funds.

Nothing new here, right? Steve Ehrlich lent $700 million to Three Arrows Capital on a handshake and a high five. I hope he at least got like a reach around out of it or something because he certainly didn't take any fucking collateral. Probably no reach around. I'm going to be honest, right? And what's crazy is Suzu is like tweeting from a beach talking about his surfing. Nobody's going to get, these guys aren't going to get punished, man. Not going to get punished. They're going to be back here writing long form blog

posts as like some kind of apologetic philosophers three or four years down the road, nobody's going to remember the shit that they did because that's how it goes. Right? That's how it goes. But let's talk about so Sam obviously took the money from FTX, sent it over to Alameda, regrettable decision. CZ saw an opportunity, but it would have blown up anyways, let's be honest. Right? A single tweet from CZ triggered the sell-off in FTT. That blew up the entire empire and shit went down, right? But now, of course, in hindsight, all of the obvious things come out, right? The stories are absolutely bananas. This is one story from people close to the situation that Sam Bankman Freed not only fucked all of us, obviously. It's so hard for me to even talk about him negatively still at this point, right?

All of his investors, but also his employees, right? His employees, he encouraged all of them at a point to invest in FTX. He doubled it. He told them to use FTX as their bank account. So all the employees seemingly have lost all their money, everything, everything they even made. They trusted him and they continued to just lie to everybody. It's brutal. It's absolutely real. I mean, it's really brutal, right?

So clearly this is a mismanaged company. Anyone who has read through all of this now, he was living in like a 30 million dollar apartment in the bahamas that's kind of tight to be quite honest with you with like 10 of the other people that he worked with his inner circle they were all having these weird like uh group orgies while playing league of legends with like you know condoms in his hair some shit i'm not even kidding like it was like 10 people and they all had romantic relationships with each other at some point. Probably had one of the rooms converted to a huge moonwalk, bounce house, bed thing, if I'm imagining it in my mind. And that's what was going on. It's a bunch of kids. We should have seen it, right? A bunch of kids just having a grand old

time. Dude, apparently couldn't even balance the books of FTX, thought they had more money than they did. And since then, we've had a tweet storm from SBF of all the things that we should take as fact, because you can't take fact from anyone. FTXUS is a different entity. It's fine, guys. It's great. Nope, they actually filed bankruptcy today, like less than an hour ago. Filed bankruptcy, right? And now this says several investors in talks for 9.4 billion FTX rescue. Oops, nope, that's yesterday's news. That's not true. That's dead. That's over. That's over, right? I don't even know what order to talk about

this shit in because it's happening so fast in real time. Bahamas freezes FTS assets, calls for liquidator. I got your liquidator. Just call me. You guys see it? Listen, I got to, you guys see it? I have a liquidator. It's right here. I keep it on my desk. Keep it on my desk, right? You don't need to call them. Call me. I'll liquidate you. But yeah, so the Bahamas decided to freeze their assets and to call in to liquidate them. Twist of news there is that that meant that Bahamas users apparently temporarily here were actually able to withdraw from FTX while other people were not able to all around the world. And what did that lead to? You guys have probably heard of it. Listen, I don't know the whole story. I don't really follow. These are people that I generally have blocked on Twitter. But this guy, AlgodTrader, who's the guy that made the, I think, Luna bet with Doquan that made him sort of a legend. The guy found some way to get KYC'd in the Bahamas,

found an insider apparently at FTX who would allow him to withdraw, was able to withdraw his funds. And then he started a Telegram group to buy people's FTX stakes for 10 cents on the dollar. I'm doing this out of memory. I don't have this written down. And then because he was KYC and had an offering,

but an FTX employee who would allow him to withdraw. He went into all those people's accounts who he's bought for 10 cents on the dollar and took their funds out in full one-to-one into his own account. Into his own account. And will now be surfing with Suzu and doing yoga at a fucking wellness retreat with Do Kwon and Sam Bankman-Fried's hair. Probably with all the Enron guys and maybe the executives from Lehman Brothers.

That shit happened. This is happening. All this in real time, right? So the offshoot of this Bahama freezing their assets was actually that more scamming was able to be scammed, right? Inside FTX US, employees are trying to sell assets with Sam Bankman freed away. Oh, dad's out of town. Let's have a party. Yeah. You might remember that FTX US went on a epic shopping spree, buying up distressed assets, buying up companies that were going to allow them to offer leverage trading and margin in the United States. Well, they bought all these

companies, all these founders who probably sold to them, I'm assuming probably took the shares in FTX to get paid. Well, those guys are all trying to sell the shit now. And by the way, I'm going to imagine that this story is also now irrelevant from yesterday if they are in Chapter 11 bankruptcy and FTX US owns all these assets, right? So here you go. FTX files for bankruptcy protections in the US is literally all we know. Answer this for me, right? It was FTX, FTX US, I think Alameda, some of the FTX trading parent companies, but how the fuck can FTX file bankruptcy in the United States if they are an offshore entity? They're going to get protection from lawsuits and claims here when their customers

weren't even supposed to exist in this country, right? But anyone who's been through the chapter 11 process here with Voyager or Celsius, or I don't know any other shit you can name, knows that this is going to play out over a long period of time with massive uncertainty. Man, I was literally just celebrating that I could potentially get 72 cents on the dollar on my assets from Voyager because FTX US was buying them out. That shit's gone back to the drawing board. What's even crazier is Monday, Monday, I got a call from a close friend who said, there's a hedge fund that's buying out Voyager claims for 65 cents on the dollar. Right?

Put me in touch with the guy. I was in active conversations. And before we were able to reach a deal and conclusion, FTX went under the next day. The hits are incredible. I have no idea how much of this shit can possibly happen at one time and how much we're all expected to take. But here we are. And of course, Tron TRX jumps 140% amid one-to-one FTX redemption of Tron-based tokens. I'm wondering if this is still going to be the case now that they are in Chapter 11. But you guys probably saw this. Justin Sun implied that he was going

to bail out the whole company, but what he did, and this is great for, you know, holders of BTT and Just and Tron and Justin Face and Justin Case and Just Yo Mom and whatever other Justin name tokens Justin Sun has, right? Sonny D, I don't know, right? He did right by the people who have invested in him, and he was able for those people to get their money off of FTX. But then there was conjecture. He was saying he was going to give them billions of dollars to help bail them out. Well, he

backtracked real quick today, even before the chapter 11. He's like, whoa, whoa, whoa, whoa, dog. I didn't say that shit. We got to look under the hood the hood cz took all of 12 hours to decide that binance wasn't gonna do anything with ftx right they bailed it was like 30 seconds in the books and they were like oh no yeah right it's nuts so this also now will be irrelevant obviously because i'm assuming trx people also can't get it. And if you thought that the contagion was done, guys, we can, let's move on a little bit from FTX. Well, first I want to talk about this.

Wait, because it's just, it's all in my head. Remix. We talked about on my stream yesterday with Caitlin, Mike Alford, and David Young, that Genesis, right? Parent company, digital currency group, or whatever, Barry Silbert, that whole crew, who gave Three Arrows Capital, you may remember, $2.1 billion, right? They gave him $2.1, said, hey, we traded around this.

We hedged. We only lost 7 million, guys. We are fucking God-tier traders. Five hours after my live stream, they announced they had $175 million locked on FTX. Everybody is lying about everything all the time. Oh, by the way, I'm not saying, I'm not trying to start any FUD. I'm not trying to start anything, but I believe that Gemini's earned product is through a partnership with

Genesis. I think Genesis will be fine. $170 million when you've already, when you've already, you know, busted off 2.1 million to Suzu while you're surfing. No big deal. Right. But God knows who else is affected. We've seen the list of investors, Sequoia writing it down to zero, Galaxy, Mike Novogratz, like this shit's worth nothing. You know who else is worth nothing? Sam Bankman-Fried saying his net worth is quite literally a zero, which is pretty astounding. That's pretty astounding. But yeah, let's get to this one.

First of all, like, you guys, you've all seen the Matrix, right? Like, Neo in the Matrix, you know, dodging bullets and shit, that's been BlockFi, like, since inception. Right? BlockFi absolutely exploded when GBTC went up. Right. Now I'm going to tell you another story.

This is let's let's just go back in time and talk about how all of this shit happened, because the answer is hubris. Right. It's hubris. And because these people were geniuses in the bull market, as I said, and then got trapped by the market turning and the situation, right? We can use BlockFi as an example, but it's the same for Luna. It's the same for 3AC. It's the same for Celsius. And it's the same for Voyager, right? And to some degree, the same for FTX. But let's take the example of BlockFi, which will resonate with you for anything in CeFi, right? BlockFi, how do they make yield? We were all like, oh, they're lending to trusted counterparties, bro. They do the best due diligence. No, they're fucking trading your money like degenerate dick bags in DeFi and beyond to try to earn a yield. So what happens? There was this free trade, GBTC, Grayscale BTC, which by the way, the fact that

that traded at such a premium and at such a discount now is completely fucking Gary Gensler and friends fault because they never approved an ETF. And that was the only product. There was a monopoly and that's how everybody had to invest in Bitcoin if they wanted to do it institutionally. But let's not even talk about that for the moment. What happened here is that BlockFi and others saw an opportunity to make free yield because they were accredited to go buy GBTC, make a huge gap as it matured because they were buying it and then could sell it at a huge premium. Free yield for everyone. So what happens there? Same for Voyager. We talked about the cash and carry trade. We've talked about all the ways that people made money. But anyone with a fucking brain cell in their head knows that when there's a

massive inefficiency in the market, it will eventually be arbitraged out and that opportunity will be gone. So you know what you don't do? You don't build a consumer facing business and sell people on it being a bank based on the yields that only exist for a short period of time while you're taking advantage of this opportunity. Right? And so what BlockFi did was they offered everybody 9% yield. And then GBTC went negative. They could no longer do that anymore. But if you're Voyager or Celsius or these people,

and you've gotten millions of customers overnight, basically, and now they're only with you because you're offering them a safe yield of 9%, you're under pressure. And you have to find that yield somehow. And that's how you go dangerously down this risk curve. And that's how you give 3AC a $600 million unsecured loan. Because they're such nice guys and they're so fucking smart. No, no. When Steve, my friend Steve, my friend Steve, when he gave that loan to them, he knew That's what happened to BlockFi. They had a strategy.

It blew up. They still needed to find a way to find yield. That's why Celsius manipulated the sell token, did all that shit. That's why Voyager did this shit. And that's why Sam Bankman-Fried, to some degree, did this, because he didn't want to see Alameda go under. It was hubris.

Doquan, 3AC, all these fucking guys, man. It all started probably with good intentions, and then they got to a point where they had to make a really bad decision to try to keep it afloat. Well, now BlockFi is fucked. They were almost fucked at GBTC. They were almost fucked when they had to pay a massive fine to the regulators. They were almost fucked when they had to pay a massive fine to the regulators. They were almost fucked when they raised a huge round.

And everyone was like, wow, BlockFi made it. If your money's still on BlockFi after you saw what happened to Voyager and Celsius, I don't know, man. Rough. But now BlockFi's done, citing uncertainty around FTX. Well, why is that? I don't know, because they got bailed out last by FTX with a $400 million credit facility. So when FTX goes under, where's that money? But there's now rumors that FTX gave them $400 million. BlockFi drew on that $400 million. And how do you think that BlockFi allegedly decided

to go use that $400 million to be able to pay your yield? They gave a loan to Alameda Research. Washing machine of pain. And now guess what? If you're on BlockFi, I'm not trying to be the bearer of bad news, but you're probably pretty fucked. We are.

Right? You're probably pretty fucked. Let's see. Let's see. We are shocked and dismayed by the news regarding FTX and Alameda. We, like the rest of the world, found out about this situation through Twitter.

Oh, you guys were really doing your due diligence, you douchebags. Given the lack of clarity on the statics of FTX.com, FTX US, and Alameda, we are not able to operate business as usual. Our priority has been and will continue to be to protect our clients and their interests, bullshit. Your priority was keep your dumb ass afloat. Until there's further clarity, we are limiting platform activity, including pausing client withdrawals as allowed under our terms. Did you guys read the terms of service where they're allowed to apparently steal all your money? It's in the terms. We will share more specifics as soon as possible, probably in six months. We request that clients not deposit the BlockFi wallet or

interest accounts at this time, because that's going to be a thing. We intend to communicate as frequently as possible going forward, but anticipate that this will be less frequent than what our clients and other stakeholders are used to. We're going to disappear. We have the right to do it, and we're going with your money. See you in Chapter 11. Can we just get everybody together and like have a fucking chapter 11 party and then they can all share the legal fees. So maybe we can get one more cent on the dollar out of this fucking shit industry. Yeah, guys, I'm sorry. Didn't intend to be like so aggressive today, but it's fucking Friday. I'm letting it out. Unfortunately, live.

Scott's pissed. Bottom is near, says Jeremy. Yeah, I mean, listen, like, I'm not going anywhere, but I've seen so many people who've been here for like 10 years on Twitter capitulating. Like, I'm out of here. Fuck this place. You know? So, Matt, let's talk about uh happier things let's talk about some happy things because uh you know i i by the way i agree that the i have no idea where the bottom is but this is going to unwind quickly i would imagine the next couple months but we have to move on from FTX, BlockFi, everyone who's fucking exploding. There will be more. There will be more. There will be more.

There are a few of these platforms left standing. Can't imagine how. FPL wannabe would like you to know that I would destroy SPF in a dance-off, and that's a fact. Yeah. Here you go. Suitcase Murphy. Ha-ha. So many of Scott's guests straight lied to his face. It's true.

It's true. It's a thing. It's a thing. Yeah. What happens to my BlockFi credit card? I don't know. Not financially. I don't know. I don't know. I don't know. I don't know. I got nothing for you. Let's talk about Twitter because it's going really good. Musk warns Twitter bankruptcy possible as senior executives exit. Chief Tritt twit warns employees of 80 hour work

week lost perks. Investors were already offering distressed prices for loans. So listen, you know, crypto has a great presence on Twitter, which is a complete fucking shit show on the side. Are these billionaires literally fucking mentally? I don't even want to say something. They'll get me canceled. How fucking dumb are these guys? I mean, Elon Musk, let's go offer everybody the same blue check that was the way that people confirmed they weren't getting scammed for $8. I don't know if you've seen what's going on on Twitter, but like Eli Lilly, you know, who makes insulin pharmaceutical company, a fake Eli Lilly

account opens. You don't have to do shit, but pay $8 to get verified. They're not actually verifying you. I don't know. Here's a fucking God's year idea. Give them a red check if they pay and a blue check if they're actually verified. But anyways, Eli Lilly went on and said, all insulin's free. The Tesla accounts, the funniest saying Tesla is going to go out of business and all this other stuff. But like you got fake presidents, George W. Bush with like two H's on there talking about how he wants to go back to Iraq and misses it. I mean, you've got the craziest shit happening on Twitter. It all looks verified. And the idea there was that $8 didn't keep the bots away. No, he's just trying to make money because clearly they're going to go fucking bankrupt.

But what they've done is empowered anyone with $8 to impersonate whoever they want for fun, which means that you can get Scott Melker with two Rs in your DMs asking you how your Bitcoin trading's going, and you're going to send that dickbag a whole bunch of your Bitcoin because he says, I'll give you two for one, bro. And then you're going to get scammed by someone with a blue check and my entire profile.

Going great. It's going great. They had to hire back a bunch of people they fired because they realized you actually need human people to run a company. It's a real vision. It's a real vision. But either way, it's going badly. Everything they released, they backtracked, they do half of it, whatever, man. It's a disaster. But the good side is Elon Musk details his vision for Twitter payment system, which everybody, we talked about this with Kate Lamong yesterday, is assuming is going to be crypto-based because he said it's not going to be on traditional rails.

They've applied for a FinCEN license. Listen, this is the PayPal guy, right? Loves payments. So a lot of people are saying that basically Twitter will somehow become your bank. Good God. Good God help us all if it's with this blue check system. You know, if it's this blue check system, but that would be cool. Probably be in Doge. Let's be real. Oh, Emmy's here. I didn't even see that my wife is here. She shows up for this one. Sorry,

dear. Find a positive in this situation listen i'm trying to have a great weekend i've held it together pretty good this week i'm actually i still remain a very positive person but i'm just getting it out of me right now so i can enjoy myself yeah yeah so yeah elon musk is apparently going to do some shit with payments, and it's going to be great. But that depends on Twitter literally even existing. I have my doubts. I have my doubts.

Yeah. Luke, Michael says, go golfing. Here's a story. Actually, I had a big weekend planned. All my best friends from college are flying in. And we were supposed to be golfing this morning, but then a hurricane. So I will not be golfing because we still got a hurricane. Yoda Wise says,

Stay calm, Scott. Remember that there's always someone who has it way worse. Guys, I may get mad talking about the news. How can you not get mad talking about the news? But my life is incredible. The end of the day, none of this shit matters. And I'm very aware of that. That doesn't mean that I'm not going to come here and voice my frustration. Solana blockchain hit by FTX tremors is nearly 800 million SOL tokens set to be unstaked. This was two days ago. I believe they've been unstaked.

It's scheduled to be unlocked, but we're doing a weekend review. The scheduled unlocked SOL token represents approximately 15% of its circulating supply. So obviously, Solana is getting absolutely manhandled, right? I mean, Sam Bankman-Fried did things to Solana that are only legal last time I checked in Mississippi and like three counties in Alabama. Right. So Solana getting absolutely crushed. Why? I don't know, because reportedly Alameda is selling Solana to prop up FTX. And they're the biggest holder, obviously, outside of some of the VC funds. They led some of the funding. So Salama's already getting raped, and it just happens to

be at the exact moment that they have their biggest investor unlock, and all those people are obviously going to sell their shit. I haven't even looked at the chart. I don't have the heart. Let's do it. Oh, it's bad. Oh, it's bad. So, I don't know. Like, in May, it was $16 Salama.

I'll tell you, man, you want a silver lining. Want a silver lining. When I saw Celsius happen and I was not able to get a lot of my money out of Voyager, I've discussed why that was for a long time. I couldn't withdraw crypto there because they had a protection on my account and never changed it back no matter how many times I asked. But I sold all my Solanas so that I could get to cash and to USDC

so that I would potentially benefit from the non-existent FDIC insurance in Voyager. So I actually had a massive loss, but at more than twice the price that it is today, certainly I sold that. So thank you. Thank you for that. Thank you for that. Thank you for that. So, you know, as my dad says, you win, you lose. God's life.

Yeah, there's good weeks, good weeks, and bad weeks. It's fine. It's fine. It's a lot. So, yeah, that's just what that means, by the way. The unstake is if you've invested in something like Solana or any of these coins early as a VC, the tokens vest. You don't have access to them. Lot, lot of paper millionaires and billionaires in crypto because you're like, well, I'm getting these tokens and they're currently worth this.

And in three years, no. Right. And then it unlocks when it's 20 bucks and you're like, fuck this, I'm out. And you sell all that, just pound it. You just get on that sell button, hit the ask. You know what I'm saying? So that's what happened. Just a perfect storm of pain. Let's talk about some other good news, though. Meta says it will lay off more than 11,000 staff, as Mark Zuckerberg claims the company is deeply underestimated.

So is your face. I don't really care. Let it burn. Like, social media is such an utter and complete shit show. It's unbelievable. Twitter is literally being run by, I kind of like Elon Musk, right? I drive a Tesla. I think he's funny, but like he has no place running Twitter, right? So Twitter is getting run into the ground. Facebook's hiring, firing 13% of its workforce. 11,000 people is 13% of its workforce. Over a hundred thousand people work at Facebook. Why? What are they doing? I never know what they're doing back there.

Probably could fire like 22,000, right? And he said maybe he made some bad investments at a bad time. The layoffs were a last resort. It's going good. It's going good. So Twitter is dying. Maybe we'll be resurrected. Yay. Facebook, which is Instagram,

is just playing Rochambeau with Mike Tyson. Right? And TikTok is a Chinese spy app, like a literal Chinese spy app that is taking all of your information and data and consuming it for the future information war but also twerking videos are dope gotta get the tiktoks gotta do the tiktoks with the kids right you know what china knows it knows that a bunch of 50 year old dudes really like watching

20 year old 20 year old girls twerk or whatever the fuck and do stupid dances. Emmy says every app does that, not just TikTok. Yes. The difference here is that it's the Chinese government rather than a big tech company in the United States. And probably that's basically the same thing. I have to agree with you. I have to agree with you. Nicholas, you're one of them, dude. You are a twerk fanatic. Yeah. Let's see what Fiboswani has to say. I'm not reading these.

I'm just clicking stuff. This is what people get for trying to match the old financial world and not trying new economic thinking. Same shit, different day. Yeah, we just, we did it worse. You'd think that if you saw 2008 to 2012, which is the reason that Bitcoin was literally created, like as a result of that complete disaster on the grandest stage. And then we took this pristine, beautiful asset and technology,

and we built a worse version, a greedier version, a bigger bubble of the same shitty system, but without regulation. Pretty tough, man. And you know what, man? We bought it hook, line, and sinker. Well, let's do some other good news. Can we find, can somebody send me some good news? Send me some news.

Yes, as Drucified says, can we talk about how all these failures are centralized entities? Nothing decentralizes failing the code works regardless. Yeah, that's true. Like DeFi has been extremely orderly. The collateral's there. You liquidate it, but like let's not be disingenuous about the hacks and exploits.

We have a lot of unknown unknowns right now. Your DeFi loan can be humming along really nicely and then the platform could get exploited and your money's gone there too. But yes, at least you don't have the human element of failure. Here's some more good news. Library loses. It says loses. It's bad news. Library loses SEC case. Calls ruling a dangerous precedent for crypto. I don't know if you guys saw this. You should watch my podcast

with Jeremy Kaufman. It just came out a couple of weeks ago. I don't know if you guys saw this. You should watch my podcast with Jeremy Kaufman. It just came out a couple of weeks ago. We literally sat and talked about this in real time. He was like, the decision could come down any day. I don't know if you guys followed this. I didn't follow it very closely, but basically in a previous regime of the SEC, they said, hey man, you know, like be transparent.

Kind of like Gary Gensler saying, come in. Library credits went in with their ico and they basically pitched the sec like literally like jeremy was like we did a deck and we showed them like all the shit we were doing no no don't do that right and then the sec was like yeah this shit is a security and has been suing them for years. Well, they lost, which obviously sets a lot of dangerous precedent for any other project that had an ICO or is not called Bitcoin in the space. Very high chance that they use this obviously to deem other things, including potentially ripple.

We don't know a security. Okay. Okay. But even in this, they said if there was no expectation of earning, no discernible leadership, if it was officially decentralized, if the coin itself was pre-mined, this was in the opinion. So this is not necessarily precedent, but it's opinion, that that could also violate the Howey test and be deemed as scary. So that would, by the way, apply to Ethereum. That would also

apply to Ethereum. Yeah would also apply to Ethereum. Gensler being investigated seems like a positive to me. I don't know how I don't have that news story up. But yeah, Emmer, Congressman Emmer, Congress-faced person guy, Emmer, who's a big proponent of crypto and also, I think, of fraudulent elections. Apparently, I don't know.

But he basically said he has evidence that Gary Gensler was in cahoots with Sam Bankman-Fried for FTX to get a monopoly on the crypto space and regulation in the United States and that he's going to be looking into that. Does anyone want the silver lining? There's so many conspiracy theories about this, though, right? Like Sam Bateman Freed's mom is in the Democratic PAC

and she's given money and she's coordinated with, she's friends with Elizabeth Warren. And at MIT, Caroline, the leader of Alameda, her dad was at MIT, and Gary Gensler was at MIT. And that means that they all did an orgy at MIT, and it's all Gensler. I don't know, man, but the fact that a sitting member of the United States Congress is saying that Gensler

needs to be investigated over this is kind of tight. Pretty tight. Pretty tight. Oh, also, I don't know if you guys saw this, but the much maligned by the crypto community bill that was going to crush DeFi that was championed by Sam Bankman Freed is still going to be proposed, even though Sam Bankman Freed is out of the way. Yay. And crypto, that was a funny comment. Crypto golfer says, and they all know Kevin Bacon. Six degrees. Six degrees. And what's the, i have one more story here oh this was the good news for everybody but us stocks skyrocket and best post cpi day on record you guys probably saw this right you know that uh i think uh september cpi was 8.3 percent well we came in nice and low this time at 7.7 with

an expectation of 7.9, which means that inflation is finally turning, which means that people can start looking forward to the all-powerful Fed pivot. And so markets had their 15th best day in history. I mean, things were up massively. Bitcoin even did bounce, going back to its little correlation there for a minute, off the lows up to, you know, the mid 17,000 to 18,000. But like I wrote about in the newsletter, it's like the meme of, you know, Pablo Escobar and Narcos, where he's like just sitting on the swing by himself. And he's like standing, looking into the distance by himself, like we should have got rich on that

shit. Right. Bitcoin would be like 24, 25, I'm convinced. And Ethereum would be over $2,000. So that sucks. But yeah, listen, we all know that the Fed is going to start slowing down. It's been priced in 75 bps November, then 50, 25, 25. Well, now it's 80% chance that it will be a 50 bp hike in December, but that shit changes with the wind. But that's what's being priced in. A lot of people say, hey, inflation's topped. It's the bottom for stocks. The bottom is in. Things are going to get better. Well, nobody's saying that shit. We talked about the price divergence of crypto, Bitcoin, and stocks. We've been seeing it for months. Everything, Forex, stocks were like up, down, all around, doing the roller coaster.

And Bitcoin was just sideways and shit. We were like, ah, it's decoupled. That's great. Well, then it decoupled a lot harder to the downside with this Black Swan event. Imagine like SBF, like a Black Swan with the floppy haircut, having sex with like seven of his employees in a bounce house bedroom. That's what's happening right now. Right. So we don't really get the benefit of this monster upside. Listen, I still think it doesn't mean everything's going to turn around. A recession

is certainly a possibility there. Another bottom could come in. God knows, man. God knows. But it was a huge day, and we effectively got to watch it from the sidelines. Should we take a look at a Bitcoin chart? Where are we at? Man, 17,592. That's that blue line right there. You see that? Yesterday, I wrote about the news

I've been talking about forever. That was the June low. That was the 2022 low. It got broken. We had this nice monster candle that bounced above it. Obviously, there's going to be liquidity and interest right there. But when we broke down, I said, you got to get back above that. Look exactly where yesterday's candle closed and today's open before the drop. This is the FTX bankruptcy candle. Below $17,592, if you're a technical analyst, it's bad. It's bad. Nothing to celebrate here. Nothing to celebrate here for the moment. That was a luckily CPI and reactionary bounce for now. So sentiment, yeah, price action may have decorrelated, but I'll tell you what's really not correlated is that sentiment to get back to what I was talking about. Everyone believes stocks

might be having their bottom. Nobody's thinking that about crypto. Maybe that means the bottom is in. I don't fucking know. Possible. Whatever. And this is the worst part, right? Everybody, for how long have we been talking about here that we were going to see the dollar finally roll over and when the dollar dumped, it was going to be Valhalla for crypto and Bitcoin? Well, it happened, guys. Look, I've even got a thing.

I circled it for you. What if it goes there? I would be like basically a legend in my own mind. We did it with ETH at 1284, hit right in the circle. But yeah, man, it was looking ugly and we were thinking the dollar could roll over and that inflation prudent did it. And we're not getting any of that sweet, sweet benefit of seeing that happen. So shitty. So shitty, right? But maybe we see the dollar continue to drop and maybe down the road we get a little bit of good news. Hey, what's going on out there, guys? MBO, David says, however, sentiment is still strong with those that are still active in the

crypto conversations. David, I love you. I disagree. I think that was true last week. It's not true today because I'm having those conversations and nobody's excited. Institutions are going to be gone for a while. Yeah. Crypto golfer wisely points out, unfortunately, you have to be dead

to be in Valhalla. Yeah. Right. Coinbase up 8% today. That actually makes sense because they are still here. They have the benefit of being not dead, which apparently is worth 8%. Yeah.

Apparently black swans are not as rare as we originally thought they were. There's literally an entire flock of them landed outside my house yesterday. That's not a true story. It's not true at all. They were blown in by a hurricane. Thoughts on Binance. I don't have thoughts on anyone. All I know is that there has to be a way to get your dollars out. And the minute you touch some of these exchanges, you have a chance of losing it. I don't know. Seems fine at Binance, but God knows what's under the hood. I lied. It's good. I don't know.

I need the podcast where Scott punches everyone who lied to them. I would punch them with my words. I'm not going to be a violent person. I cannot imagine that we've seen even the tip of the iceberg for the contagion from this. I really believe that the FTX effect, sadly, has to be much greater than the three arrows capital. How many miners go bankrupt now? Do we see bailouts, consolidation? We haven't even talked about that. Miners were already completely screwed with hash rate at an all-time high, electricity costs up, putting all these new machines online and just getting hammered. Core Scientific, Riot, all of them talking about bankruptcy.

Now Bitcoin's 25% lower than when that was happening. They're fucked. Bitcoin's not going anywhere. People are saying crypto isn't going anywhere just by the dip. Yeah, I mean, crypto's not going anywhere, but the systems that we've built surrounding it, those are done. Yeah. Remember Bill Hwang and how that was good. Yeah. And like

Evergrande and shit. I'm not saying it's going to bring down everything. I'm just saying there's going to be a lot of contagion and probably a lot less buyers. Right. Man, I really hope Saylor doesn't have to give up. These are pretty low prices. You know, I don't think so. I love that guy, man. He's fine. I don't know. I have no idea. I have no idea. Yeah. Listen, I wouldn't even surprise me if Bitcoin, I woke up and it was like, Hey, we're at 40 grand in like three months because nothing makes sense here. But like how, like, I'm so we're all like very disillusioned, you know? I said it. It's not even worth saying it again.

But, like, yeah, it brings us all back to the core. We're going to have a whole lot more Bitcoin maxis. That's probably a good thing. I hate, oh, it hurts to say it. Yeah. I don't know, man. But we can hope that certainly once all this excess and leverage is rinsed from the system, that we get good actors, things rise again, and we build back better.

I have my doubts. I have my doubts. Bitcoin down 7% 45 minutes ago. Looks like it might be in the green by the end of this video. I mean, that's how we roll, right? It's still below 17,000. It's not really an idea, but yeah. No, I'm not sure Saylor's fine.

I was being sarcastic. I have no idea. My track record on this sure is bad. Yeah, of course. Listen, like I said, I grew up in a country where you're innocent until proven guilty. Once you show me the evidence, I'm down, bro. Yeah. This feels like when I saw Santa Claus and my dad was eating the cookies at 4 a.m.

I know what you're saying. You're saying that your dad was Santa Claus and Santa Claus wasn't real. But it seems like your dad was hanging out with Santa Claus eating cookies at 4 o'clock in the morning. And I don't want to know what they were really doing. Weird. Build what back better? The same shitty financial system? No. I mean, you know, this pushes people towards self-custody, more towards Bitcoin to minimal exposure that we focus more on the technology and the things that are building and not the excess and the leverage and all that. But yeah, I don't know. Declan says,

Benkman is worse than Urban Meyer. And he knows that is a strong statement around here because I like nobody much less than Urban Meyer. Wait. Oh, it's coming from Simon. This has to be true. Because Simon, you are like the most reliable person in my comments and on Twitter, and you're just such a nice guy. Twitter suspends blue subscription paid verification services,

citing impersonation and abuse. Hope you didn't give me eight bucks. I don't know, man. I don't know, man. I don't know. But that seems bananas. But that's the right move. Because holy shit, it's broke.

Did they not know that was going to happen? Like all of us were screaming it. Like, hey, all you're going to get is a bunch of people who are willing to pay $8 to scam people and troll. Hustler Spirit says, I just pulled everything from Coinbase. All this is making me very uncomfortable. I'll come back in later. I'm sure there will be better opportunities down the line. We have plenty of time, I think.

I can't blame you. Yeah. Rip Blockfolio amongst the companies. FTX file for bankruptcy. Her block works 10 minutes ago. I guess I'm going to have to find another place to track my assets. Just another inconvenience. SBF is tweeting right now.

Let's get on that shit. What do we got? What do we got? Oh, hi, all. I love how he starts so optimistically. It's cute. Let's pull it up. We're going to read it together.

Hi, all. Today I filed FTX, FTX US, and Alamator for voluntary Chapter 11 proceedings in the US. I guess that raising $10 billion when you have like a billion left thing didn't go good. Really sorry again that we ended up here. He apologizes a lot. Hopefully things can find a way to recover. Hopefully this can bring some amount of transparency, trust, and governance to them. Ultimately, hopefully, it can be better for customers. What? How better? Okay. Let me, let me, oh shit. I got to zoom in on this, right? Is that working?

So you guys can see it. Okay. This doesn't necessarily have to mean the end for the companies or their ability to provide value and funds to their customers chiefly and to be consistent with other routes this is the guy that was bailing me out of chapter 11 bankruptcy of voyager logic ultimately i'm optimistic that mr ray and others can help provide whatever is best is mr ray literally the fucking teacher from finding emo mr ray swim around the stingray mr ray they got a stingray to handle the chapter 11 i'm gonna work on giving clarity on where things are in terms of user recovery asap they're nowhere we're just starting chapter 11 come on remember when he said ftx us was fine like i don't know yesterday or the day before that was good piecing together all the

details but i was shocked to see things unravel the way they did earlier this week. I will soon write up a more complete post on the play-by-play, but I want to make sure that I get it right when I do. Stop tweeting. Just stop. We don't need it.

Don't need your tweets. Mr. Ray. You know people are liking his tweets. There still believers left did you guys suzu pieros doquan those guys have come back and there's people like aggressively in the comments simping for them like oh bro we missed you like yeah we needed you man where have you been like we still believe man luna is the future of three arrows fucking seems like sam and doquan are the second third arrow how many more arrows do we need really i don't man i don't know i don't know yeah yeah people are gonna continue to ride these dicks hard. That Stockholm syndrome hits different.

It's different. Scott, was BitBoy right about SNF, SBF, I'm assuming you mean all along? I can't dig into that. BitBoy was going to come on the show today. Maybe it'll happen next week. We were talking about it. I mean, I want to hear what he has to say. Yeah, I don't know, man.

Swan is also having problems with spot Bitcoin pricing. Not surprised. How about this news? Sam Bateman Freed was the Democrat's second largest money pig. They're not going to say that. In 2021, donating $39.8 million second only to George Soros. Yeah, I mean, whatever. BitBoy, really?

Listen, everyone deserves a voice. I've given voices to worse. I want to hear what he has to say. He said he had insights all this happening, and it happened. I want to talk to him. I want to hear him.

I mean, Christine Lagarde is here she literally like runs the central bank of europe and she says he was right about everything of course i would have him he was right spf just updated his tinder profile yeah probably for to seek big dudes in jail outfits. No, he's not going to jail. That doesn't happen to people. Nobody goes to jail. Nobody gets punished. He's going to be living in that same penthouse doing the orgy thing. I find it so hard not to like Sam.

Yeah, whatever, man. Hmm. Yeah, guys, I think that's all I got. I'm sitting here hanging out with you guys. It's good. It's good. Yeah, that is true. I saw that. It was very sad. I met BitBoy at Consensus and we've been in touch and I told him I was sorry. His best friend from rehab of 15 years had died of an overdose two nights ago. It's pretty sad. Anyways, that's all I got. That's all I got. Hope you guys stuck through it. I know it was not my normal tone, but I still think it was kind of funny, to be honest.

Yeah, people are saying this. Can't wait for the movie about spf jonah hill for the part dude hollywood's gonna make him ryan reynolds or chris evans or one of those hunky guys that's what's gonna happen yes benny hill it's one of these wait wait now i got a copyright strike to add on to this amazing week it's fun guys it was fun i will be back on monday i'll be here yeah i'm gonna be there i was uh speaking of like me winning a dance-off last night it was in the kitchen and i cranked yeah i'm gonna be there you know my donald and my kids were jamming. I thought they were going to hate it. Yeah, actually, we're jamming.

It's pretty good. It's pretty good. Hey, guys, man, listen, I know it's hard. Go enjoy your weekend. Be done. Get out of this mess. Have a great weekend. I intend to have a great weekend.

It's going to be amazing if it just stops raining. You guys, for sticking with me, you're the best. Appreciate it. We will get through this. We're all going to make it. Peace.