Episode Transcript
[00:00:00] Out of Cycle Update.
[00:00:04] And it feels. It feels so good to be rugged. So bad.
[00:00:13] Those who ignore the lessons of the past are doomed to Repeat them. CryptoTalk FM. My name is Leister. I'm your host.
[00:00:20] I was asked, I wish I wasn't, but I was asked to provide thoughts on something known or named as, as the quote, super application that is increasingly being communicated from the project known as blockdag. Now, the reason I wish I didn't get the question is because it then occurred to me most of the people listening at CryptoTalk FM maybe knew they weren't in during that time.
[00:00:50] And it means I gotta take you on a magic carpet ride in a time machine because we got to go back in time and I got to hit you with a history lesson and there are people who won't listen.
[00:00:59] That's what bothers me is the fact people won't listen. Those who do listen, I appreciate you. If you listen CryptoTalks FM, you listen. I appreciate you. But the vast majority don't listen.
[00:01:10] So let's assume, let's take it on face that some of this is new.
[00:01:14] Time machine must be engaged. I don't know if you saw this, but the Clinton news Network, cnn sent out a bullshit article implying that Michael J. Fox had passed and that he had to respond on threads and say, no, I'm still alive. But he is alive as of this recording. Great, dude, awesome. One of my heroes, frankly, for everything that he's done and went through and come out on top.
[00:01:36] But we got to go into time machine. The year is 2021. That's our destination. And I'm gonna hit you with some history. Some of this is in our archive too. But I never went this deep on some of these projects I'm gonna be talking about. But in order for me to answer your question, and I know you're not, some of you are not going to like my answer because I'm going to tell you what you already know to be the truth.
[00:01:56] But if you're new, you might have missed this era. I know you heard about it, but you might have missed it. You weren't living it like I lived it. I watched it, watched it go down, crash and burn in fiery flames.
[00:02:07] The year is 2021. 2021 was arguably the wah wah west, the cryptocurrency because you had a lot of projects, primarily on the binance smart chain space spin up and do all a bunch of garbage. And then that was also right around the time that Ethereum switched away from proof of work to proof of stake killing the business on mining profits. There was a time I I was having hard, hard. This is Covid, right? I was having a hard rough time. My only source of money at this time, right around this was mining profits. I with my gaming PC I was making roughly about three, maybe $3.50 a day.
[00:02:46] And that's all I was living on.
[00:02:48] Just to put in perspective, there's more to that story. But suffice to say, in terms of me being fed, in terms of me getting something to eat every day, mining profits is all I had to bank on. There was a point I was excessively dehydrated. The urine came out brown. That's excessively dehydrated. That's how bad it was. Crypto mining was the only thing that got me out of that rut to buy me some time until I was able to get back stable, which took some time all the way to 2023 frankly.
[00:03:19] But the thing is a lot of crypto projects were spinning up and you had things like unminable and unminable lets you quote mine different cryptocurrencies even if they're not directly minable. And all they're really doing is mining some other cryptocurrency that is proof of work selling for proceeds. And then you can get these other coins. And so then a lot of these one these one offs were spiking because of the price spikes of bitcoin.
[00:03:47] When bitcoin's running up, Ethereum runs up. All the other chains run up.
[00:03:51] Ethereum I think got as high as 4800 bucks at that time.
[00:03:55] This is still proof of work. Now mind you, there were a number of projects that were created some Ethereum but the vast majority of Binance Smart chain. But some of them are theorem. For example, Safe Moon. You may or may not have heard of Saitama. You may or may not have heard of Tatano, Libero, Seifu. A number of these projects Para Inu, Keanu, Inu, Shib, even Shib was originated a little bit earlier than that. But that was its peak.
[00:04:24] All these projects had a different message and different approaches to the message.
[00:04:30] Shib's message was really we can be basically a payment. We don't have reflections, we don't have burn. We could just be payment. We could take over the world. And it had its pumps and spikes largely because it was a meme coin era ship then inspires others.
[00:04:48] Dogecoin inspires others. We had certain ones that are kind of like at that top of the pyramid. And they inspire others to be created. Shib and Doge are competing. Leash gets created the so called Doge killer, which of course is a scam. But the point is at the time that was kind of that predominant messaging. Well then someone had the idea and I don't know who specifically if it was Safe Moon, John Carony, if it was him or somebody else at the time that originated this thought. I'm pretty sure that it had to be Safe Moon that started it. But I don't know hundred percent.
[00:05:25] But the idea of reflections and burns and taxes. So in the reflection what happens is as volume occurs on chain, so you have buys and sells, a small percentage gets redistributed to everybody else who's still holding the token. With the thought being we are incentivizing you for holding. So then that's where Hodl, Hodl the concept comes into play. We're giving people some sort of incentive to hold instead of selling sell. And we do that by these main mechanics, reflections, which is your bag's just going to grow based on you holding you hold and the amount that you hold grants you a percentage. And that's just going to come to you. It's free money, right?
[00:06:06] Well, in order to sustain that you had to have an obscene amount of tokens. That's where you started seeing the trillions and quadrillions of tokens start spinning up. That's where with Shib, the story was. I believe it was 1000-000000-00000 of tokens at the time. I believe that's true.
[00:06:25] And then half get sent to the idiot Vitalik who then burns them.
[00:06:31] And that act is what started spinning up the concept of burns. So you would spin up a token with an obscene supply and then they would burn half of it. And that's the sales pitch. So they're following what idiots like Vitalik were doing as some sort of message of what to do, even though it was burnt bs.
[00:06:50] Then you had this tax slash fee structure, the idea that when you sell there's a tax certain percentage against it. And then that tax was either put into liquidity or redistributed to the reflection pools.
[00:07:05] Or there might even be a tax on buys. And you might think, well why would you tax buys?
[00:07:12] In their mind they're trying to defray for the damage for other people. Because put it this way, if you had a buy order that's a large buy order, that buy order is taking away from available supply. And so we were trying to put back liquidity so they would create Kind of this liquidity circular pool concept. And the only way to do that is you have to put the tax against buys and sells because buy both transactions contribute to liquidity. That was the brainchild of why they did it even though it was stupid.
[00:07:50] A lot of it also is copying regular commerce. Right? You go to the store, you buy something, there is a tax. If you sell something you might be taxed on capital gains. So there's kind of that also. But the main was for liquidity stabilization.
[00:08:05] Incomes like the Libero Titano, Seifu Ascent and some of these other ones drip where they flipped it around and they took all of what I just described to the end. Concepts of banks, concept of treasuries, concept of mining baked beans Project was doing mining. Everything is a gimmick. A gimmick on a gimmick on a gimmick on a gimmick on a gimmick. The ultimate or I say penultimate look it up gimmick is a wallet Shib initially talked about wallet concept and eventually spun to say let's just do Shibarium. Just kind of go full scope with it. But Safemoon was the first to actually talk about implement deploy a wallet concept. The wallet mindset was we should be a better wallet than the Metamasks and the trust wallets and the other ones of the world. But we also have our own lock in thought process to it.
[00:09:02] Then I spin over to Saitama who wanted to create what's called Cytomask. Cytomask was their wallet. That's what triggered billions of dollars to flow into it because they started showing concept designs of it.
[00:09:17] Saitama's thought was trying to solve what was a problem at the time. In the proof of work era during excessive volume for Ethereum you would see gas prices go to the moon.
[00:09:30] Sometimes you would do a trade and it wants a hundred dollars worth of gas to do the trade.
[00:09:35] That was real in the proof of work era.
[00:09:38] That was one of the compelling reasons to go. Proof of stake was to help offset some of that gas expense. I won't bore you with the deets behind it but suffice to say that the gas created a sale opportunity for Saitama's team with Saitamas. Because what they said was and it was a scam if you think about it. But what they said was you'll be able to use your Saitama tokens as the gas and trade all these different tokens. So now you're not paying the Ethereum gas. You use your existing Saitama. Well the reason it didn't make any sense is that the only thing that drives value for a given token is its liquidity. Liquidity has to be paired at minimum to the blockchain it's on. Saitama was an Ethereum chain, which means it was always paired to Ethereum, which means just doing basic transactional activity, you're still paying the gas, you're just kind of offsetting it.
[00:10:30] And so what they were trying to build was this idea that you already have the Saitama tokens in your wallet.
[00:10:38] They would take the tokens, they would then do a transaction behind the scenes. But you don't have to absorb the impact of it. The only way they were going to do that without taking a loss is to take a significant enough amount of Saitama tokens anyway to equate to what it would have done if you'd done the trade. It was all a scam.
[00:10:55] And so they never could get sight of Mask, just the mask to conceptually work at the basic level. Then when they did, there were all sorts of issues.
[00:11:03] Believes talked about it back then. I think he's deleted all that stuff. But at the time he was talking about it wants like a thousand dollars or it wants to give me. It's doing a jacked up trade or something because they couldn't make that work. What they sold people then they claim they got it figured out then that's leading up to the failed November 13th Vegas event of 2021, where they did a Times Square announcement and they claimed the mask is going to be there. It's going to be available for download. You can be able to use it. Day one on November 13th, we're going to do a Vegas shindig. We're going to demonstrate it and do all this fancy stuff. Turns out of Jake again getting drunk and all this stuff.
[00:11:38] Allegedly coke and hookers. I don't know if that was true, but that was alleged. And they were just partying. And Russ, the cult leader who's locked up, he took a deal and admitted his guilt at the time had said, yeah, it's not really ready, but we're just going to party and celebrate that we hit this pinnacle. And then people started dumping off the project. Wyatt told all that history of 2021. Mask of SafeMoon, Mask of Saitama.
[00:12:01] These were very important at the time of what was the next vision for some of these projects to try to change the game, changing how you control these assets and use them to work and interop with all these other blockchains and all these other tokens rather than and it's kind of a lockup. Pulsechain just used its blockchain. Shib just use its blockchain. These used a wallet concept.
[00:12:26] So now back to the question asked. Back to the question at hand.
[00:12:30] Somebody wanted to know what do you think about this so called super application as described? I heard what was described, the super application as described.
[00:12:38] The only difference between what I heard of the super application versus SafeMoon wallet is allegedly the X1 mining being wrapped into it. That there would be a mining concept to mine these. Well, I want you to think about this very seriously.
[00:12:55] First of all, we know it's a proof of stake chain, okay? So we know there's not true quote mining. It's not really a mining, it's really a staking kind of thing. Fine.
[00:13:03] But again, it's got to have some value. The value must come from being paired to liquidity. The liquidity has to exist. It doesn't currently.
[00:13:12] So that application is only as good as the liquidity that borns it or that supports it. And if that's not there, what are you really transacting? So do I think that they can pull off what they say? I think you're going to be able to do something with your coins because they control the blockchain.
[00:13:28] Do I think you're gonna be able to do what they claim it's gonna do? No. At least not in the short term. What about the long term? This, as I wrap up is where I'm going to go back to the Safe Moon fiasco and I'm gonna quote you a couple of things and I'm gonna leave you with those. And I want you to think it through and come up with your own outcome. Because I'm not gonna make a conclusion. I'm simply sharing what is publicly documented. You can see yourself. Case number two, colon 22cv00642.
[00:13:59] This is the case around Safe Moon, John Corona and all the other scammers who got locked up not just because of the wallet but because of everything else. I'm going to quote some of these lines, quote.
[00:14:11] In furtherance of this scheme, defendants touted the technological innovation of the company's token and related cryptocurrency wallet as well as the ability for investors to make significant returns due to the favorable, quote, tokenomics of the Safe Moon tokens. In truth, defendants marketed the Safe Moon tokens to investors so that they could sell their portion of the float or profit stop. So what is float? Float is as the token moves in price, they're basically just siphoning off gains. That in itself is not illegal. The problem that the government had is they were doing it without communicating what they were doing on tokens they didn't purchase. So. So they're holding the liquidity bag and then they're siphoning out like a drain the liquidity on the back end. Doing it secretly while telling people. It's like with Saitama they were telling people I said hold while they were dumping on your head. That kind of thing. Same kind of deal quote defendant strategy was a success.
[00:15:07] The misleading promotions and celebrity endorsements were able to artificially increase the interest in and price of the SafeMoon tokens during the class period causing investors to purchase these losing investments at inflated prices. Meanwhile, the company's executives Koroni and Haynes Davies conspired with the promoter defendants to sell the SafeMoon tokens to investors for a profit stop.
[00:15:29] This is of a class action lawsuit on behalf of SafeMoon investors. But the reason it's referring to promoters and celebrity endorsements is because the concept of getting celebs or getting influencers or somebody else to pitch the product. They're shilling and pumping the token telling you to buy. And you know the names. I don't need to spell them out here. Some of them were celebrities, some of them were just regular YouTube influencers. The point is some of these were also named because of what they're doing. They're telling bye bye bye bye bye. But behind the scenes the Safe Move team was alleged to be just draining off the project and pulling liquidity out for why ever they did without communicating to the investors that they were doing it.
[00:16:10] Okay, this one I want you to think deeper than what it says. I'll do the best I can to translate it but I want you have to kind of follow it because it's a little bit over technical.
[00:16:25] I'm going to skip some of the preface but suffice to say there was a developer of the project they hired on another one to build out the actual the token at that time. So we're not talking blockchain, we're just talking a token at this point on finance Smart chain. Okay. They wrote together the contract these two and then their wallet, which is the deployer wallet puts the token out there.
[00:16:49] What they do then after they. So basically they mint the tokens or in this case mine them out.
[00:16:56] They mint them out. Mine them out.
[00:16:58] They took a section of those tokens and they dumped them over to other wallets fresh off jump. Many tokens do the same thing. They'll do the initial load, whether it's minting or, or mining, it doesn't matter.
[00:17:11] And then they'll take segments of it and they'll distribute to other wallets. In of itself, it's not a problem if you disclose what we're doing with it and their transparency. So you could have one that's a Treasury wallet, you could have one that's a vesting wallet. You could have one that's for marketing and so on. So many of the projects got smart about just communicating these intents, but you couldn't necessarily prove the intent because there was no accounting of the dollars. Right. So if you're doing a sell, we're selling $50,000 from this wallet and it went to this invoice that went to this company. Why don't they do that? Because if they did that and they communicated that intent down to the nth, it means that there's questions about the amount of money they spent. I had the same conversation with SEIFU in the community because people were asking questions about the marketing and the blockchain costs and it seemed excessive. And somebody said, yeah, that's because the guy's taking kickbacks. Well, you can't prove it, but if any of what's being redirected is going to him or to a wallet he controls, yes, that would qualify as a kickback in this case for SafeMoon, it turned out that one person controlled access to all of those wallets. So it's the centralization issue with reserved with respect to these wallet addresses.
[00:18:24] And if they own the wallets, this was Seifu again. If they own the wallets, that means that you're basically paying them. If you're doing anything, where you're doing buys and sells to a wallet that's controlled by an individual, that's not decentralization. Right. And so then the risk is that somebody could dump off the project on these.
[00:18:42] When you have a wallet, then goes back to what I said. If you have a wallet that you create, SafeMoon wallet still exists. Okay, it did. It did launch, it did what it's doing. But by the time it got to that point, the value of the project was in the crapper. So at that point, what is the real differentiation between SafeMoon wallet and, say, Trust Wallet? There really isn't Trust wallets actively developed against. Trust Wallet does not have any person behind it. Trust wallets more ubiquitous supports, more chains.
[00:19:13] SafeMoon was kind of left, I don't want to say unfinished, but it was left in an unstable state. So what's the point? Cytomask, which became Cytopro, eventually did launch a wallet, but it was a fraction of what they promised it was going to be.
[00:19:26] So now when I circle you back to the future and the current state, I'm not suggesting for a moment that the fact that there's a wallet is a scam. What I am saying is the concept of focusing on a wallet, it feels. Everything I hear feels like someone is stuck in 2021. They're stuck in those things that were at the time the number one things to try to focus on, to appeal to people in 2021. You need to have a blockchain of some kind, you need to have a wallet of some kind. You need to have miners.
[00:19:59] These feel like 2021 sell points that have long since been bypassed. I don't want them to do what some of them are trying to do, like AI crap or finance crap or any of that stuff. What I'd rather see, frankly, is a focus on something that everybody can benefit from. The number one thing I can think that everybody can benefit from if we're talking ethical people, which I can't 100% say we are, because I don't know. But if we were talking ethical people, I would love to see a project that would do what Libero started doing and failed to do. Because I felt, frankly, Libero had the right idea and the wrong people doing it all along. They had the right tools. And at the time, remember that one started, I'm pretty sure it had three zeros pumped all the way up to a penny. So you have very similar patterns. They didn't focus on a wallet, they didn't focus on anything that required any software. They didn't focus on anything made of mass. They didn't do a blockchain, they just did a core something. Yes, they had unrealistic APYs. Yes, they had reflections.
[00:21:08] Unfortunately, they did rebasing, which is a different mechanic, and they did it wrong.
[00:21:13] They had all the tools to pull it off and they screwed it up. They screwed it up because of a bug in the contract, frankly. And that bug in the contract came from Tatano, which is where they inherited it from, and that's why Titano went in the crapper. So what you're dealing with is what I'm saying, people that don't know what they're doing and then they're getting. They get down in the weeds, they get too far off.
[00:21:33] Now they're scrambling to try to course correct it. It's too late because you've already lost sentiment.
[00:21:38] So when I get asked about the super application, I'm saying it feels like it's focusing on the wrong thing. It feels like it's not going to appeal like they think it will.
[00:21:49] And it feels like there was an opportunity, and frankly, still is, but there was an opportunity to do something that was already done that actually would benefit everybody. I felt, frankly, Libero's model could benefit every and anybody. I felt. If you took what Libero was doing and. And I'll get to the point of Dex here in a second, but if you took what Libero was doing and you combined it with a blockchain that you owned full stop, the sky's the limit at that point. Like, you could literally change the world. Especially when Libero. What it really lacked was good marketing. It lacked good marketing. To this day, I believe to this day, one of my videos is still one of their marketing videos. That's how bad it is. Even though they trashed me, they trashed me after I called them out for the nonsense they were doing because they had a dao and they were making stupid decisions and I called them out for it. But yet my video. Somebody in their channel said I didn't know what I was talking about. Liberal essentially doesn't exist anymore. Thorium essentially doesn't exist anymore. All those ones where I said, you guys are going to be in trouble here. Don't exist anymore. So I clearly knew what I was talking about. But yet my video was marketed the whole damn time. This is what I'm saying. Of people that don't know what they're doing. You can call the signs and you can see how easy this really could have been if you took Libero's core concept and did it right. And you combine that with a blockchain that you control and that you own, and you pair that with Dapps. Good. Dapps.
[00:23:17] That's how I'll wrap it up.
[00:23:19] Change now. Rich Quack. Rich Quack is a binance project. It still exists. It's still going strong. Rich Quack created their own Dex swap partner with Change now that lets you swap any coin to any coin. You don't care about blockchain. You don't care about any of that stuff. It's simple. You don't have to link a wallet. You don't have to do anything. You just do all. It's the perfect swap. I love it for what it is versus a super app.
[00:23:45] Why, to me, why not just Create a basic Dex partner with ChangeNow that gets your coin tradable with anything else which immediately gives it some value because you can then add yours in there to trade with all these other coins that's there.
[00:24:02] Then you don't have to worry about maintaining liquidity pools directly other than providing supply on it and the integration points. Why not do that? That gets you started with regular dex swapping. Dex swapping negates the issues people have that are regional limitations trying to do anything because the regional limitations are going to affect a silver a super app anyway. So I would to me start with the basic dex basic decentralized swap. You can swap the damn thing as free as you care to in or out. You're sitting on a bunch of tokens that you like to get in. If you can't, you don't want to come to our site because you don't want the lockup. You can't go to exchange for why ever you can't. Maybe you can't do kyc. Okay, here's the basic dex that doesn't care about any of that stuff. Why not you do that first.
[00:24:46] Second, as I said, if you took Libero's model, I'm talking the initial model, not the later garbage. I'm talking the initial model and if you want information about Libero's model, check my archives on YouTube or CryptoTalk FM. I have a whole playlist about Libero and the fiasco.
[00:25:03] Start from the beginning and just kind of look at what they had. They had all sorts of great crap. But if you took liberals base model, the start model, what it had and you implemented it correctly and then you paired that with DAPP support throughout the ecosystem and then you, you culminate that into a stronger blockchain and get away from the garbage. Right? You could have something that's changing the game. You could. I'm not sold on super application because I haven't seen anything number one. Number two, I've been down this road. I saw it with Safe Moon, I saw it with Saitama Lofty promises and they couldn't execute it. SafeMoon did launch a wallet.
[00:25:42] Saitama did launch a wallet. What I'm saying is what they promised in those said wallets never really came to fruition. And I suspect the same will happen with this one. And regardless, even if they do pull it off, I feel like just trying to create a wallet or super application quote. I don't feel that that's the right focus now. It would have made sense if we were in 2021. Because in 2021 it was essentially a race to the bottom of a bunch of projects that were trying to do it. And the vision I hear in the super application might have actually stood out in a crowd versus the other one. Certainly more than Saitama. You could have taken billions off Saitama with what I hear of the super application.
[00:26:23] But it's a different era. People's focus are in a different direction. It's a lot trickier now to appeal to those people than it used to be. And there's already been a damage of sentiment. So when you have a damage of sentiment, you already have to overcome that. And the way in my mind that you do that is with a fully open market, both centralized and decentralized exchange. Freedom of exchange to exchange the damn thing, however you do.
[00:26:45] Futures would help now, but the Basic is full open descent and sin I struggle to this day, I struggle with why they don't have a decentralized app. Because Pulsechain launched with Frickin1Fact. You can set up your own local on your own computer. You don't even need to connect to a server. It runs on your computer. That's what this should have done.
[00:27:08] Encourage freedom of trade of the assets you have. You can trade them as much as you want to do. Do that first, because what you're doing there is. You're saying it's open, fair game. Do what you're going to do. You might miss the train. That rhymes.
