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#FTX To Begin Reimbursement Payments Beginning February 18th
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#FTX To Begin Reimbursement Payments Beginning February 18th
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Episode
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February 05, 2025
•
00:22:34
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Episode Transcript
[00:00:01] Speaker A: Welcome to Crypto Talk Radio, the podcast for everyday investors like you. Visit us on the [email protected] and now here's your host, Leister.
[00:00:13] Speaker B: Thank you for that, Bailey. And welcome everybody out there on Crypto Talk radio. [email protected] a crash, but not quite a burn. Flames, but not quite destruction. We have damage across cryptocurrency that's freaked people out, undue amounts of panic. I think it's, I think you should be excited, but I know people are not. And I, I saw some YouTube folks that I shook my head at some of their feedback about what's happening because.
[00:00:46] Speaker C: I think some of them missed the forest for the trees.
[00:00:48] Speaker B: In my personal opinion, I'm going to be speaking somewhat about that.
I'm going to be talking about some of the news that came out from the sec. I'm going to talk about some updates for some people that might be affected by some of these exchange activities.
Let me get a personal update out of the way. I'm going to be this, this will be a quick episode, by the way, but I'm going to get a personal update out of the way real fast. So I am in the process of getting things sorted out for renovations as we finally get back out of winter. I'm trying to, I'm being forced to take a stupid photo that's like miles.
[00:01:31] Speaker C: Away and I can't go do it.
[00:01:35] Speaker B: Because I can't renew the car because they force my plug in electric car to do an emissions test like some jackasses. And so I can't.
[00:01:45] Speaker C: It will not test.
[00:01:46] Speaker B: The test refuses to run because it's.
[00:01:49] Speaker C: Based on a gas vehicle.
[00:01:51] Speaker B: And if you don't know modern emissions tests, all they do is run the OBD port for any codes that are emissions related. That's all it does. And so what ended up happening was the first time my car has a plug in electric, it has a code, but it's not emissions related. But it then failed the test because it sees a code and just freaks. Now, first of all, I don't like being forced to do that because the.
[00:02:22] Speaker C: Gas vehicle, which I haven't driven in.
[00:02:24] Speaker B: Like four months, passed with flying colors. What I learned is that for some reason they forced the test. If you live in certain cities.
[00:02:34] Speaker C: So this ain't like California where you.
[00:02:36] Speaker B: Got to do it no matter what.
[00:02:38] Speaker C: Here they force it only if you're.
[00:02:40] Speaker B: In certain cities but not in others, which is a scam. And worse, they have a waiver process. And beyond the Waiver process. The waiver process, they still issue you the damn thing.
[00:02:53] Speaker C: So they're only doing it as a best case effort. But they don't let you do any of this online.
[00:02:57] Speaker B: You got a mail, it's the word.
[00:03:00] Speaker C: So the getting the first one's easy.
[00:03:01] Speaker B: You could do it all on mail. You never need to talk to a person. You can mail a check and do it.
[00:03:06] Speaker C: Renewals easy in certain cities, but not others.
[00:03:09] Speaker B: But then when you, if you're in these other cities that are basically discriminated against, you just get screwed. That's where. So then I have to go down to the city where it's allowed, but I can't do it there any different because of where I live. It's a scam. It's a blatant scam. So that's what I have to figure out. But I figured in the middle of this I gotta try to find some way that I can fix my house and get all these things sorted out.
[00:03:36] Speaker C: So that's also on deck to resolve.
[00:03:38] Speaker B: In the middle of that.
[00:03:39] Speaker C: The other thing I did is I'm.
[00:03:41] Speaker B: Working on electric, electrical power, redundancy, reliability. You can't do anything with the gas lines, but we haven't had very many gas outages, but electric outages because these numb nuts don't believe in cutting trees. So what I did is I bought.
[00:03:57] Speaker C: Shout out to ecoflow.
[00:03:58] Speaker B: By the way, they have not paid me for this shout out. I'm giving them a shout out because.
[00:04:02] Speaker C: I've used them for years.
[00:04:03] Speaker B: I bought one unit and I forget exactly when I bought the unit. I want to say I bought it like 2020 somewhere around there. 2020, 2021 somewhere around there. And I've had it ever since. And then it was great when I drove up to where I'm at and it was great when I was driving to my client and it was fantastic.
[00:04:20] Speaker C: Having it as a device.
[00:04:21] Speaker B: And then I still have it, he's.
[00:04:23] Speaker C: Now powering my living room.
[00:04:25] Speaker B: And then I bought an extra battery for it. And then I bought two more of these units. One's a Delta 3, one's another of the same unit.
[00:04:33] Speaker C: And then I have a little small.
[00:04:34] Speaker B: River that's a piece of garbage. But that's not, it's not ecoflow's fault. It's just the, you know, it's undersized. But the point is that my whole house, the only thing that's not at this point on essentially I'm off peak throughout the day. The only thing that's not at this point is the furnace because that's whatever. And then the lighting, the outdoor lighting and the porch lighting and any ceiling lighting. And I'm going to be doing those. But it just wasn't urgent. Urgent was the big hitters in the kitchen and stuff. So that's really cool and I'm happy to share information anybody's curious about that separately. Let's go ahead and talk some cryptocurrency.
[00:05:11] Speaker C: Hopefully I can allay some of your freak out concerns.
[00:05:14] Speaker B: I doubt that I will, but I'll certainly give it a try.
CoinDesk.com and we're going to go ahead.
[00:05:25] Speaker C: And zoom out to the month chart.
[00:05:26] Speaker B: And why don't we start with Ethereum because of course I, if it weren't.
[00:05:30] Speaker C: For the idiot Vitalik, I would have.
[00:05:32] Speaker B: Told you that Ethereum has the strongest upward potential, has the strongest run potential.
[00:05:38] Speaker C: It should have been five figures by.
[00:05:39] Speaker B: Now, easy given the bitcoin runs. And it's an, it's almost a foregone conclusion. But the idiot dumping on your head.
[00:05:47] Speaker C: Is holding it back and Sentiment Optics.
[00:05:50] Speaker B: Is holding it back.
[00:05:51] Speaker C: Nobody likes the guy except for the cult. And I understand.
[00:05:55] Speaker B: But if it weren't for him, I would tell you, you know, Ethereum right.
[00:05:59] Speaker C: Now just shy of $2800 is a fantastic price. So if you're one that doesn't care.
[00:06:04] Speaker B: About the idiot, you want to roll the dice on it. Ethereum is a fantastic price right now over the last 24 hours.
[00:06:11] Speaker C: A lower just shy of 2900.
[00:06:14] Speaker B: Excuse me, 2600. A high of 2900. Currently hovering around the 2700 mark. And I mean this is, this is.
[00:06:22] Speaker C: This is rare pricing.
[00:06:23] Speaker B: I, I struggle with just the idiot. I don't like the idiot because I don't know what Nick he's gonna do.
[00:06:30] Speaker C: Next that causes even further drops.
[00:06:32] Speaker B: And I don't, I know they released some other like Petra upgrades and things and I know they're. But then the gas bump up I think might actually cause negative sentiment.
[00:06:42] Speaker C: I can't say for sure but I.
[00:06:44] Speaker B: Suspect it's gonna cause some negative sentiment.
[00:06:46] Speaker C: That might offset gains.
[00:06:48] Speaker B: I think it's a long term positive. But I said that before bitcoin ran up and I got that wrong because it never got to its all time high. And as it stands, Bitcoin, if we.
[00:06:59] Speaker C: Look at bitcoin going to the 24.
[00:07:01] Speaker B: Hours, you know a low of 90.
[00:07:03] Speaker C: Just shy 96,000, a high of a hundred thousand. So it's slightly down but nowhere near.
[00:07:09] Speaker B: The level of drop that theorem's Doing currently hovering at the 98,000 mark.
[00:07:13] Speaker C: And although the trend is identical on.
[00:07:16] Speaker B: Bitcoin versus Ethereum, Bitcoin simply has a.
[00:07:19] Speaker C: Better upside and has had a greater upside for the past couple of months.
[00:07:23] Speaker B: Whereas the theory seems to want to go down. It feels like there's just downward pressure.
[00:07:28] Speaker C: The flip of that is that it's.
[00:07:30] Speaker B: Almost guaranteed to bounce back up, especially because Trump's World Liberty Financial purchased a whole crap ton of the Ethereum.
[00:07:37] Speaker C: So we expect it should, if nothing else, double.
[00:07:41] Speaker B: So if you're one of those that's game and you got the free money, and I stress free money, please don't yolo, but free money, you have an.
[00:07:49] Speaker C: Almost guaranteed opportunity to double what you got.
[00:07:52] Speaker B: We just don't know exactly what will happen.
[00:07:54] Speaker C: We do know that all the other.
[00:07:55] Speaker B: Tokens on the Ethereum chain right now are suffering because of what's happened with Ethereum.
[00:08:00] Speaker C: So it's a gamble, but it's one.
[00:08:02] Speaker B: Of those that has greater odds of.
[00:08:04] Speaker C: Making you some really good money. Even if you were to buy into.
[00:08:07] Speaker B: One of the, you know, VOL coins, you know, like say Paypay or something, because they cracked so far down they have nowhere to really go it up. So that's my recommendation to consider is if you are going to get into something, Ethereum is going to go somewhere. It's just a matter of time before it does, but it's certainly going to go to something.
In recent news, of course, the crypto.
[00:08:33] Speaker C: Landscape is starting to change under President Donald Trump. David Sacks is leading this. He's a so called crypto czar leading.
[00:08:40] Speaker B: A commission put together to start putting together crypto legislation starting with stable coins.
[00:08:48] Speaker C: I took a look at what's proposed.
[00:08:50] Speaker B: I wasn't a fan of what I saw because what it's basically doing, I, I understand why they're doing it, but.
[00:08:57] Speaker C: I still see kyc, which I don't like to see.
[00:09:00] Speaker B: I understand why I think it's crap.
[00:09:03] Speaker C: I think they should know again, if.
[00:09:04] Speaker B: They say, you know, transactions under 10,000 bucks, don't worry about it like they do with banks, I wouldn't have a problem with it.
[00:09:11] Speaker C: But as far as I can tell.
[00:09:12] Speaker B: They'Re just doing it because it's a stable coin. And that's not what I want to personally see. I want to see that we are lightening that up and not have to do onerous privacy violations just to trade the shit. It's what I don't want to see.
The other thing that the legislation does not want to see is what's referred to as rehypothecation.
[00:09:35] Speaker C: I don't like when they toss larger.
[00:09:37] Speaker B: Words than necessary to explain a concept.
So I'm going to take as best I can a swag at trying to explain what this is to you.
The irony of rehypothecation at its simplest form is we already have forms of rehypothecation in the home lending system. If you buy a house, you're taking out a mortgage.
[00:10:06] Speaker C: Your mortgage is usually extended by whatever.
[00:10:08] Speaker B: Bank marketed to you or you walked into or you contacted or whatever and then that bank originates the loan.
[00:10:17] Speaker C: When they originate the loan, depending on you, they'll choose to keep it on.
[00:10:22] Speaker B: The books and service it or they'll.
[00:10:25] Speaker C: Sell it when they sell it to another entity, that entity basically gives them.
[00:10:30] Speaker B: The money fresh out. So it's off the books of your.
[00:10:32] Speaker C: Bank and it's held at the other lender even though the servicer has not changed.
[00:10:39] Speaker B: Then what often happens and this was a strong contributor to the crash of 2008 that backing company will sell the.
[00:10:48] Speaker C: Debt as an asset backed security.
This was extensive.
[00:10:53] Speaker B: We had a lot of this activity happening.
[00:10:56] Speaker C: Rehypothecation is essentially that it is you're.
[00:11:00] Speaker B: Taking an asset and instead and somebody's.
[00:11:04] Speaker C: Lending it to you or giving it.
[00:11:05] Speaker B: To you and and because of it what you're doing is you're giving it.
[00:11:08] Speaker C: To someone else who gives you money.
[00:11:10] Speaker B: That person sells it to somebody else who gives them money, etc.
[00:11:14] Speaker C: And so on and then it starts.
[00:11:16] Speaker B: To become a house of cards. The new regulation is trying to stamp.
[00:11:21] Speaker C: Down on rehypothecation and make it to.
[00:11:23] Speaker B: Where stablecoins cannot be so called quote rehypothecated. You might wonder how does that affect you?
It affects you in one main way. The idea of wrapped so wrapped, you know, usdt, which is rare but it's out there.
[00:11:42] Speaker C: DAI has a wrap.
[00:11:44] Speaker B: There's other stable coins that have wrapped type asset exposure on certain chains.
The wormhole concept, anything where it's not the original source asset essentially is affected in some way by what they're saying. So they're trying to.
[00:12:02] Speaker C: I think what they're trying to do is they're trying to make it one.
[00:12:05] Speaker B: Simple single stream similar to what the United States dollar. I'm talking the physical asset was meant to be as in I'm issuing it directly from point A to point B. The flaw with that is that that's not the way the US dollar has.
[00:12:21] Speaker C: Been issued since they decoupled from gold.
[00:12:25] Speaker B: The way the US dollar works is.
[00:12:27] Speaker C: Now is that it's printed, right.
[00:12:30] Speaker B: Federal Reserve. They print and print and print. Jerome Powell Right. They print the physical assets.
[00:12:35] Speaker C: They make it available to banks.
[00:12:37] Speaker B: Banks order essentially physical assets so that.
[00:12:40] Speaker C: They have assets that they can provide. And in some cases they allow the.
[00:12:44] Speaker B: States and the banks to print their own in exchange for, you know, promissory. So the point is, the whole printing press concept, there's multiple hands involved in what gets that money to you.
[00:13:00] Speaker C: Why they're trying to restrict stable coins then is somewhat of a mystery, except.
[00:13:05] Speaker B: That it seems like they're trying to create something that has a little bit more rigor.
[00:13:10] Speaker C: If the plan was to eventually replace.
[00:13:13] Speaker B: US$, I don't see that that's going to work.
If the plan is to simply minimize how it can be used, it's going to contradict everything else. I don't appear to be alone because.
[00:13:26] Speaker C: The industry, the market reacted very strong.
[00:13:29] Speaker B: Negative at what, you know, this crypto.
[00:13:32] Speaker C: Czar was talking about.
[00:13:34] Speaker B: They weren't really happy.
[00:13:35] Speaker C: Of course we need regulations, but I've always said they should be smart regulations.
[00:13:39] Speaker B: I do not agree that limiting the potential and use case of stablecoin is the right answer. The one I did like was there's a moratorium, as in is there's a delay essentially on algorithmics while they study them and try to identify the risks associated so they can craft smart rags on the algorithmic side. So this would have to be. For these stable coins, you'd have to have the actual United States dollar as well as the stablecoin. You cannot just calculate the value of the stablecoin. You have to actually hold the asset either in some sort of, you know.
[00:14:17] Speaker C: Asset class or a bank or something else.
[00:14:20] Speaker B: You have to have proof of reserves, as it's referred to, in order to be of an issuer of stablecoins. This doesn't affect you as a holder.
[00:14:29] Speaker C: It affects the ones issuing it. I like that. Because what it does is if you.
[00:14:34] Speaker B: If, especially if the government enforces it, if they say they've got a billion, right.
[00:14:40] Speaker C: Stablecoins available that they want to issue.
[00:14:43] Speaker B: To people and they want to pair it, let's see, on some new blockchain or something, they got to have a billion dollars available to back those, to help your value, to make sure it cannot get crapped on, like Luna Classic and ustc.
[00:14:58] Speaker C: So I do like that.
[00:15:00] Speaker B: I just don't like the general regulations that I saw and I thought that.
[00:15:03] Speaker C: Those were a little bit too aggressive.
[00:15:04] Speaker B: And I wish they hadn't done that. But I understand what they're trying to do, they're trying to avoid what happened with my next topic, which is ftx, which is about to begin payouts for the small players starting mid February. Big players are not going to get their money yet, but the small ones are going to start distributing their money. This is good. So if you're in ftx, FYI, I want to just talk about basically what.
[00:15:29] Speaker C: They'Re planning to do.
[00:15:31] Speaker B: I don't, I'm not an ftx, I was never an ftx. I'm sharing this as a public service announcement because some might have been, but.
[00:15:37] Speaker C: Apparently what they're going to be doing.
[00:15:39] Speaker B: If you had $50,000 or less within whatever accounts or counts, you are believed to be eligible for this as well as some interest, you know, 9% per annum. So that's not bad. It's not great, but it's not bad. But you're eligible to get reimbursed on this one. They apparently are going to put it to a Bitgo account. A Bitgo account is essentially a, it's related to Bitcoin and it's designed for, but it's designed for this distribution. So it's a, it's a wallet, it's, you know, it's got its blockchain, it's, it's designed for this type of distribution.
[00:16:18] Speaker C: So I can't say what that experience is.
[00:16:21] Speaker B: I'm just sharing that the plan is that it would go through Bitgo accounts. It may be that the Bitgo account already exists. It may be that the Bitgo account was created similar like a prepaid debit card. I don't know specifics, it didn't say and I'm not in it. I can't say for sure. Just know that that's what is on deck to help reimburse those that were smaller players. I think that's great news for those that were in it, but I feel.
[00:16:47] Speaker C: Bad for those that were in it.
[00:16:48] Speaker B: And got had to wait while your money was held out.
[00:16:50] Speaker C: And then the industry suffered as a result. Obviously the government's trying to avoid major disruptions like that again, which is why.
[00:16:58] Speaker B: Donald Trump, President United States started talking.
[00:17:01] Speaker C: More about his so called sovereign wealth fund.
[00:17:04] Speaker B: And people were kind of confused at what exactly that meant. So I figured I would talk a.
[00:17:09] Speaker C: Little bit about sovereign wealth funds and.
[00:17:11] Speaker B: What that really means. In the simplest form, a sovereign wealth fund is, it's basically an entity, it's a business entity designed for investments and it's state owned. So it's, the idea is that it's.
[00:17:26] Speaker C: It'S owned by whichever state.
[00:17:27] Speaker B: And when we say state, obviously for us that's going to be a united state. But in other countries it might be a province, it might be whatever. For us, it's the United States.
[00:17:37] Speaker C: So these vehicles, these entities are state owned.
[00:17:41] Speaker B: And what they're trying to do is help manage national wealth, but it's managed by each state. You wonder how that would work. Consider a flow, and I'm just spitballing based on the way they describe it, but consider a flow that uses cryptocurrency.
[00:17:57] Speaker C: In such a way that that you.
[00:17:59] Speaker B: Can immediately distribute, using blockchain's power, immediately distribute assets worth X to get ahead of things that they're trying to do for disaster prevention. As an example, I'm just tossing something out there, or let's say that there's a desire to allocate certain emergency funds, or let's say that there's something where you want the federal, you know, wealth pool to simply be distributed such that, you know, disaster in one place or.
[00:18:30] Speaker C: Damage in one place or loss in.
[00:18:32] Speaker B: One place doesn't crash the whole thing. We see this now, that's kind of the thought is to give kind of some sovereignty to the different states to manage this investment vehicle. Now, of course, some people, because this.
[00:18:46] Speaker C: Is all speculative and there's nothing hard and fast, but some people saw this.
[00:18:50] Speaker B: As a negative thing, that it seemed like they didn't really have a good plan, seemed like they didn't have a.
[00:18:55] Speaker C: Strong handle on exactly what's going on.
[00:18:58] Speaker B: The problem, I think, is nobody understands what the value of bitcoin is really going to be.
[00:19:05] Speaker C: Bitcoin's value is and has been speculative since it started.
[00:19:09] Speaker B: And so people are kind of nervous, like with the El Salvador, obviously they.
[00:19:13] Speaker C: Made out like bandits.
[00:19:14] Speaker B: Certainly the microstrategy who, by the way.
[00:19:17] Speaker C: Stopped buying additional bitcoin, made out like bandits.
[00:19:20] Speaker B: Certainly when you start putting it in.
[00:19:22] Speaker C: The hands of an inefficient federal government.
[00:19:24] Speaker B: United States people are not as confident that they're going to be able to.
[00:19:27] Speaker C: Do good, buy your money.
[00:19:29] Speaker B: So that's making people kind of nervous. And I think the market has reacted.
[00:19:33] Speaker C: Accordingly to what they believe is uncertain plans and uncertain things going on.
[00:19:38] Speaker B: Plus, you have Elon and the whole.
[00:19:40] Speaker C: Doge business and them, you know, they.
[00:19:42] Speaker B: Apparently saved a billion dollars, but they're cutting a lot of programs that are making people nervous.
[00:19:46] Speaker C: They're forcing back into the office.
[00:19:49] Speaker B: And then Trump pissed off some of his supporters because of the callback to office things and stuff where he's not.
[00:19:57] Speaker C: He said he's going to do something and he. I think he's going to, but he hasn't done it yet.
[00:20:01] Speaker B: Like he, he hadn't even talked about the bitcoin and putting regs in place.
[00:20:05] Speaker C: The crypto czar said they're coming within.
[00:20:08] Speaker B: The first hundred days, but we didn't see anything. He didn't say anything Trump when he was inaugurated. So some people are thinking that they got the rug pulled out from them. You know, I don't think really, I'm saying that that's what people feel. And then Ethereum, you got the idiot Vitalik and of course worldwide stuff going on and the tariffs are kind of the icing on the cake. The tariffs were always going to disrupt the market. He backed off the terrorists a little bit, but the point is that the tariffs caused people to be a little.
[00:20:36] Speaker C: Bit sketchy and nervous.
[00:20:37] Speaker B: And so all of these things are kind of a domino effect happening on the economy right now.
[00:20:42] Speaker C: And he's taking the blame, rightfully so.
[00:20:45] Speaker B: Because he had a talk point and a plan he's not fully executed. But we see talk about it and then you don't know how Congress is going to react yet. We don't know how the Feds are going to implement. We don't know what the SEC part looks like. We have a lot of talk and no real action. And I think the economy is simply reacting to what I just said. That's my spitball gut instinct about what's happening.
Some may be curious, given everything that's.
[00:21:13] Speaker C: Happening, what really should you do?
[00:21:14] Speaker B: And I simply cannot answer the question. I'll tell you this much though. We have an opportunity of discount opportunity.
[00:21:21] Speaker C: It's a discount across the board if.
[00:21:22] Speaker B: You want to get in it. There are discounts across the board and.
[00:21:26] Speaker C: There are opportunities to get in at.
[00:21:27] Speaker B: A good price and if nothing else, double what you put in.
[00:21:31] Speaker C: Just don't yolo into it. And I think you're fine.
[00:21:33] Speaker B: As long as you're smart about what you invest in, I think you'll be okay. And I think again, Ethereum, if warren for idiot vid Lake should be 5x.
[00:21:40] Speaker C: From where it is easy and Bitcoin.
[00:21:42] Speaker B: Doesn'T have much to go, but it's going to rebound strong as well.
[00:21:45] Speaker C: Everything feels good, but it's going to.
[00:21:47] Speaker B: Be a patient game. I'm thinking probably Q4 before we start seeing anything significant happen.
[00:21:54] Speaker C: Time will tell.
[00:21:55] Speaker B: Strap in. It's going to be a wild ride.
