Episode Transcript
[00:00:00] Out of Cycle Update.
[00:00:03] We might need to change the definition of scam. CryptoTalk FM. My name is Lyster, I am your host. I'm still not doing a swag on Block Dag that rhymes. I will not. I refuse. Let me clarify. I refuse. For now, once the hype dies down, once the smoke and everything clears, once the dust settles, I'll consider it. For now, I'm not doing a swag. I am going to do an update, mostly because I was cracking up laughing and I want to share it. But also some stuff that came to note that I want to use because I think it's good for people to be aware as they consider their purchasing decisions and it's entirely plausible that somebody who listens to the show was enticed to get in on this. And if you don't know, this is Block Dag, which is on pre sale and has been on pre sale for what seems like eternity.
[00:00:53] As with many other these large hype projects that just seem to have endless cycles of pre sale, this is Block Bag. And as a result, many people, including binance stuff on YouTube shout out to him, have been repeatedly doing coverage that are calling it out, either in the positive or in the negative. Binance Stuff has maintained that he believes it's a scam. Now he has shifted some of his messaging. Initially he basically said it doesn't exist, it's not a thing. Then he shifted to say, okay, it's a thing and it'll probably launch, but it's still a scam in concept. So I thought we should probably define scam and maybe that'll help and then you can make a decision. I can't tell you what is or isn't because it's not out yet. I don't know if it will be out, so I can't give you a guidance. Some people are expecting people to tell them what to do and what the truth is. I can't. Nobody can.
[00:01:41] Binance Stuff will adamantly tell you it's a scandal. Buy it.
[00:01:45] Listen to him if that's if you listen to his and I like I encourage you to check his stuff out because I think he does good analysis, especially with the AMAs and the squirreliness of the AMAs. I'm going to flip and give my perspective, but I'm not going to give you a call to action because for me I don't want to tell you what to do. I want you to decide what to do.
[00:02:05] So Block Dag just in high level, the Dag concept, it was Inspired and the team has admitted it was inspired by Ghost Dag. You can do all the research, I'm not going to spend time on it. Inspired by Ghost Dag. They actually even said that Caspa in some regards is a competitor, but they were also inspired by Caspa. So they acknowledge both Ghost Dag, Caspa with respect to their strategy. And they're saying we see those and we see that they've got a head start on us, but we're trying to do it better than them. So for number one bullet, number one is they're acknowledging the competition, which tells me that this isn't something where they're some fly by night something. They at least acknowledge it. And I got the sense this came from the ama, from Anthony Turner, who apparently is the lead guy on this. This came from the AMA where I got the sense on this whole business that they feel. They honestly feel that they've got something that's going to win.
[00:03:04] They believe there is something that's going to win. They believe they're going to have something substantive as substantive. And they are leaning heavily on the results of the certic audit, mostly the certic audit to highlight to people that this is a real thing and they. That they believe in. You should believe in too.
[00:03:22] Binance stuff said the audit doesn't really mean stuff. He is correct. He's absolutely correct in the sense that the audit does not affirm that it's not a scam. All the audit does is say that Certic looked at it and apparently they're doing team validation right now, which is something that the thorium side didn't do and Libero. So right there, there's kind of an advantage. I looked at the Certic score. It wasn't stellar. I was surprised at how low the cert score came back as.
[00:03:50] But it's possible that the reason that it was so low in what it was doing has to do with things that they've yet to solve. I'll get to that later. Suffice to say that I was not impressed with the Certic audit results. You could check those out. They linked them on the site. So when I. When my messaging is all around the transparency of a thing really of what they're communicating, you have to then look at that and think, does this change your mind?
[00:04:17] Does it make you have any confidence in what they're doing? Does it make you feel as though they know what they're doing?
[00:04:23] So. So that's that they. They acknowledge Casper, they acknowledge Ghost Dagger. They acknowledged the certic audit and they acknowledge they got work to do. All of that's true. In the ama, Anthony Turner repeatedly said these are kind of provisional things. These are things that are works in progress. These are things that we're adjusting. Initially the vesting which goes to the pre sale was set much higher and allegedly, and they said it in the ama, that allegedly community feedback, they course corrected, they changed what the vesting timing was going to be away from what it was. Well, think about one thing.
[00:04:56] If they were really going to blatantly rip you off, I'm talking a blatant ripoff, why would they like the. The vesting period doesn't really matter because if they wanted to take the money, they could just take the money. They could do that now.
[00:05:09] So it doesn't really matter. With respect to the exchanges, which is the current furor that I'll get to here in a second. With respect to exchanges, the exchanges want to see sufficient liquidity, allegedly there's 100 million locked available liquidity from day one.
[00:05:25] Then Bitmart specifically and LBank, those two on their X accounts announced that block Dagger was coming. They didn't give a date, they just said it's coming.
[00:05:35] These are not large exchanges. People are looking for the larger exchanges because in a prior message they said as of the 13th, which is two days ago, that they were going to do a reveal.
[00:05:47] That's a keyword for 20 exchanges.
[00:05:51] Now there's some chicanery and semantics with the terminology, but what people are saying is they didn't guarantee you that they were going to announce each of the 20 exchanges. They said that they were going to reveal that 20 exchanges were going to be on the go live and that some of them would be announced live. This is what Anthony Turner said on the video. He said the ones that let us do it, we're. They're good to go. And those are the ones you know about, which is the five Coin Store, xt, Bitmart, L Bank and mexc. MEXC has not announced. Coin Store is not announced.
[00:06:24] XT did a. They did some blog stuff, but not an actual announcement. The only ones who announced were Bitmart and LBank. They specifically confirmed those are smaller exchanges. LBank, it's easy to get on Bitmart's not as easy, but it's somewhat easy. So now you have five exchanges confirmed. So we know it'll be on exchanges and at least that minimum we know to be on exchanges because those would not have announced if they didn't have supply all worked out. So that was settled. Okay. Then it got into this whole minor conversation. The miners, there's different levels and I think people misunderstood the X1. What they call a miner is not really a minor in the traditional sense.
[00:07:03] It's an app on a phone and it's for engagement. It's engagement farming. So you engage with. It's like games. You play games and it scores points and then the points can be exchanged for blockback tokens. And that's out now. If you wanted, if you're interested in doing that stuff. I wasn't going to do it then. They shared ratios of the exchange rate and you'd have to do a lot to make it worth the time. But some people. That may be all you want to do. But they said that it was important to do that because it increases how many tokens are getting mined and they need to have the tokens mined in order for the tokens to be available to support the blockchain.
[00:07:38] Then there's the X10. The X10 is a large point of contention. When they initially announced and showed photos of all these different hardware pieces, the X10 looked like a wireless router. It straight up did. So did the X30.
[00:07:52] The X100 is only one that looked like a hardware device. And I had to back and forth with somebody on YouTube about what they said with the algorithm. All that's changed. So now the X1 looks like a little.
[00:08:03] It looks like a. Like a nest, you know, the thermostat. It looks like a nest. And it. But it does apparently it's again engagement farming related. So you plug it in and there's something you do and it mines behind the scenes. But it's not really mining in the traditional sense. It's all engagements.
[00:08:19] X30 and X00 are the actual mining with respect to proof of work.
[00:08:24] And there's an algorithm that they called out, the algorithm that they chose. And I'm not going to go into deep innards because you can search it yourself, but the algorithm they chose you is not a common algorithm. I think there's only like eight different tokens that use it lesser known tokens. What that tells me is that. And apparently they modified it to where the algorithm can only be used for block deck. But what that tells me is that it's kind of off to the side and that finding is going to go to my summary thoughts when I wrap this up, which I will hear shortly. But the X. So they have different, you know, thresholds and I, I thought the thresholds were kind of weird. But given what the. We don't know what the algorithm that they modified, we don't know what that is. But what he said was is they need the miners because again, they need the tokens mined and something has to mind them. And the miners is what. When it's proof of work, that's what you have to do. So some people got. They were critical because they're like, well, wait a minute, why do you have to sell these miners? What do you have to do? All this other.
[00:09:22] Because they're use of proof of stake, right? In Ethereum, you set up a node and there's proof of stake and then that's what makes stuff happen. But in the proof of work era, you got to have miners that are willing to do it. And what Turner was basically saying is if we don't have people in the community that are doing it, nothing gets done. Meaning the tokens don't go in circulation because they're not mine. And okay, he's not wrong. So now he's creating this very interesting situation of he's not wrong. Binance stuff's not wrong. Like nobody's wrong about the perception about what's going on, which is there's this aggressive pre sale with all this hype and all this marketing and all this shill, which is usually red flag after red flag after red flag. And still is. There's all these bonuses, right, that they're just essentially trying to get more tokens to people. And then newer investors are getting all these bonus codes. In the ama, they even said, we're going to true up the bonus for people who were early investors because they couldn't benefit from some of the early, you know, code stuff that, that they implemented and took away. And then they couldn't benefit from the newer codes for newer investors. So they're trying to make it fair for the early investors without unduly slanting towards the whales. In other words, Anthony Turner seemed like he had an answer for every single concern that Binance stuff put out, that the community was putting out left and right Sunday, even some other stuff that came to light later. So here's kind of the background of the team. Allegedly they're based in Seychelles. So Seychelles is obviously not in the US and in the ama, Turner talked about how they were trying to get the devices compliant with fcc because you have to do that because it's an electrical device. So they're trying to get that certification done and they can't give the minors until they get that done. And there's a process and then they have to do mass production and that the. I think it's the X30 they wanted to get. Those like the X10 apparently is about to start here soon, but the X30 is going to take a little bit longer and they're going to distribute to like 100 people to kind of get it started and then do mass production after that, after they tweak the bugs. But being in Seychelles and they said that trying to figure that in the U.S. separately, Seychelles, they have what's referred to as the Virtual Asset Service Providers act that was passed last year.
[00:11:48] This act, I'm not going to read the act, you can read yourself. But they called out the act with a press release that they submitted that said, quote, unauthorized activity under the Virtual Asset Service provider Act of 2024. This notice is issued by the Financial Services Authority of Seychelles, drawing attention to the website blockdag.network, which is the official site for block dagger and the block DAG coin which has been issued by DAG Systems Ltd. A company registered in the Seychelles.
[00:12:20] The public is hereby notified that the aforementioned company does not presently have any authorization for the issuance, having failed to submit an application to register the coin offering. Furthermore, the FSA Seychelles urges investors and members of the public to exercise adequate research at evaluation on an entity, service providers and representatives prior to conducting business and or performing any transactions involving money exchanges or exchanges of personal details. This was dated mid March 2025.
[00:12:51] Now, they didn't say it's blatantly illegal, as in you can't. They didn't say there's a ban. They didn't say we're taking action against them. They said you should be cautious because they didn't follow our hoops.
[00:13:04] Now that's different than like the SEC in the old days where they would straight up say that's security, we're going to, you know, that's a security. We're going to shut them down, we're going to sue them out of business. So there. My point is, I'm curious why Seychelles didn't do the same. They didn't say we're shutting them down, we're stopping it. They don't seem to be stopping it. They're calling to attention. This is something you have to do and we need you to do.
[00:13:26] Turner in the video said that there's a possibility that there may be some other KYC that they may have to subject investors to that they didn't expect, they didn't realize. So he might be calling out that they knew this was A thing after the fact and then realized, oh, well, if we do that, if we choose to do that, that means. And I don't know this, but it might require the investors go through kyc, which is kind of crap, but it's another country now. He says, well, we have to decide if we want to subject our investors to that.
[00:14:00] Now it got me thinking. It's possible that they knew that this was something that they had to do and they chose to ignore it and they chose to just kind of go their own way because they figured what do they have to lo with the amount of money allegedly invested in this one, it's kind of surprising that that wouldn't have come to surface before. Like, if you think about when they issued this particular press release, why didn't they call this out back in 2024? Because at the, you know, this was originated in 2024 blockback. So why didn't you call it out back then? If you knew this Virtual Asset Service Providers act existed, talking to Seychelles, how come you didn't call it out back then? It was not like it wasn't well known.
[00:14:38] So it's a sketchy business is the point all the way around. And I'm looking at Turner's response and he seems like they're acknowledging there's stuff that we still have to do that we haven't done. And that's the reason why we are hesitant to give specific dates because there's stuff that we still had to do to have to get done and we didn't do it. And so now here you are. Now we got all this stuff that's spreading around social media around something that is okay. And then the whole reveal of the 20 exchanges and they only called out five. But they didn't really say that they were going to name the exchanges. They just said a launch reveal. It's kind of this subjective thing. Here's my summary thoughts on this. As people on CoinMarketCap, scream, scam, fraud, et cetera. Because the 13th passed and nothing happened as they get beat up on X like crazy. Here's my summary thoughts on this business. I was just simply sharing, here's what happened. But here's my thoughts on this whole business.
[00:15:28] I think, I think that the team figured they could pull something off and just kind of muscle forward.
[00:15:37] And I think they relied way too heavily on hype, way too heavily on hype.
[00:15:45] I think they were focused so much on just getting it out, they overlooked basic things that would have helped avoid a lot of this.
[00:15:54] And my guess, and it's only a guess because I don't know there is a tangible product. I'll tell you this.
[00:16:02] I did put in because it was throwaway, you know, it was F money. It didn't matter.
[00:16:07] So I did put in for an X30.
[00:16:10] If an X30 arrives, I will do a review of the X30. Right? That's fair. Does it. Does it look like. Because I'm a technologist anyway, right. I'll see, I'll know. I'll know straight up of what it is and we'll know about the whole mining of tokens. They said that initially the tokens wouldn't be in circulation, so possibly some accumulation method. We have to see what that looks like. But point is I'll know. I did not do the tap because I don't do mobile crap. And I wasn't going to the X10 because it's engagement and I wasn't going to do that.
[00:16:40] But some people allegedly had done that one. But that's engagement so that could be fake for all you know. The mining is where you really know for sure. It is truly a thing. It is mining tokens, it's making them available, etc. And so on.
[00:16:53] I'll know if there's anything sketchy once I see the X30 which allegedly is gonna sometime in September. So that's gonna be some time out they're gonna start. I think the manufacturing is between today and the September and then September roll. Cause I don't think I wanted the hundred that they selected. I'm pretty sure not because I don't recall any form. Point is I will be checking the X30 because I figured it's throwaway money. I'm curious and it's possible you could repurpose the thing if it turns out it's nothing because it didn't really matter because at the time.
[00:17:22] Here's the other part that's weird.
[00:17:25] At the time the price of BNB, which is what I use was 400 bucks, right. So to them I invested a certain amount of money. Now the value of that money has almost doubled since. Right. So it's an interesting situation that. Okay, only $400. I put that in there. And you know, for miners that's a. That's a pretty low amount of money for a miner that's in the terahertz.
[00:17:48] That's why I'm curious. Is it a bunch of bunk or whatever and it's throwaway money where I can give you some usable information about it. We'll run it through its paces. But I don't know if there's a real thing. We'll find out with the X30. We'll find out when it gets closer to whatever the true launches, which allegedly is October for the actual token generation event. That's when you're going to start allegedly seeing tokens come up and show up. And then there for the pre sell people, there's a vesting period.
[00:18:17] So 40% of the tokens, I think get released day one and then 20% each month after the team's token is locked up for two years. It doesn't really matter because the team could have bought tokens on the cheap themselves in separate wallets you don't know about. So the locking is. My point is the locking doesn't mean anything as far as the team wallets. It doesn't mean jack.
[00:18:36] The real key is what will A, will it launch?
[00:18:40] Obviously, will it launch?
[00:18:42] B, what will truly be the value at launch C, how many. What's going to be that pump and dump, how many whales? You could see it in transactions that there's quite a few whales in this business. Millions, millions of dollars worth of tokens on it. So even at 40% that's a significant drop of what's expected as such, my summary thought on this business and as we get closer I might do another one. But my summary thought on this business, you know what, before I give the summary thought, because it ties to the summary thought, there's a bug in their site, their pre sell site, and I'm not going to specify the bug because it might be.
[00:19:21] It might be. They don't know and if I were to share it, it might cause you to fumble. So I'm not going to share it. Suffice to say that there are people who have a certain number of tokens that is not the price that they would have bought at, doesn't necessarily match the amount of tokens that they received. I'm going to leave that there because I'm going to test it and I'll know, right? Because again, it was F money. I'm going to know come launch.
[00:19:52] I'm going to know if that was legit or just a visual bug. I suspect it was legit and they don't know. So we'll see.
[00:20:00] Given that now, now that I gave you that little hint and gave you no specificity, my theory on this is if it does launch, this is likely going to be very, very similar, if not identical to Internet computer.
[00:20:19] Internet computer. When it launched, its price went to unreasonable levels. Now the supply on this one is 150 billion so it's not going to go anywhere near as high as Internet computer just because supply it's not possible.
[00:20:33] I would say the most that this guy is going to go the most this guy is going to go is probably about 10 cents ish is my guess which is I think it's like 100x from where it's at. So that'd be the highest I would expect it to be able to go just based on the supply all, all the way around because you've got the circulating supply that's going to be you know once they launch the business and then you got the mining supply that's coming like it's got to, it's controlled inflation but there's still an inflation aspect such that you know you'd have to hit 150 billion in market cap in order for it to hit a dollar. A dollar to me is unreasonable because even with the height anybody that would want it has already bought in off the pre sale.
[00:21:15] Anybody buying after the fact is not going to buy significant amounts because the price would have already been higher. So I don't expect much in terms of that price. I'm saying that the price pattern I expect it to follow Internet computer it's going to be. I think it's going to spike, you know initial spike pump like they all do to unreasonable level which again I, I'm going to target 10 cents maybe 20 but I think 10 cents and then it's going to drop and it's going to drop quick.
[00:21:42] I think it'll stabilize and then it'll slowly go down. That's what I think. I think they're going to again this is all theoretical of whether they launch or not but I think if that happens I think you'll hear them announce a burn event where they'll start burning some of the supply, some of the excess supply because after they get a sense of you know the appetite in the market they'll realize that the supply is just grossly over swelled. It's too much even for something that is essentially a blockchain of sorts. I think it's a, I think it's way too high. If I were going to tell like if I were in the very beginning and they were going to do that I had a targeted 50 billion as the total initial supply to work on at 50 billion I think they could have gotten away, I think they could have gotten away with like $0.50 target then burn off supply to get to basically a $10 target and I think they could have pulled that off just in if nothing else then because of hype.
[00:22:44] But like Internet computer I think it's going to settle down to a fraction of its of its launch value.
[00:22:53] I think the pre sale folks are going to.
[00:22:58] There's going to be issues claiming because there always are.
[00:23:03] I think that when you can claim the value is going to be low because they're going to have issues releasing tokens.
[00:23:11] I think that people day one are going to buy in and apparently the launch price I think they said 5 cents so I think people are going to buy in and the 5 cent price is artificial. It's going to be artificial. There's no way they can sustain that. So I think people are going to buy in day one prior to the crap out.
[00:23:31] Now I could get all that wrong. They might not launch. It might be a bunch of smoke. There might be no miner whatsoever. There might be nothing there.
[00:23:39] I'm saying if they do I think it feels like another Internet computer. It feels like something where something will launch. It's just not going to be anywhere near what the hype was and there's going to be all sorts of bumps in the road and issues along the way is my guess on block bag.
