FTX Killed Crypto!! Huge Scam!! | Brews and Blockchain - Transcripts

November 13, 2022

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On this episode of Brews and Blockchain, The Crypto Masters discuss the craziness that is the world of crypto right now, which of course included the epic battle between FTX's SBF and Binance's CZ. Tune in to get the latest news on the topic and get ...

Transcript

all right

we're not fade

welcome everyone to another episode of bruising blockchain

that's right

we talk all things crypto and Hey you may notice is the crypto masters but we also do the weekly cruising blockchain what we talk about anything crypto so there we go we're gonna talk about

yeah Brandon there's a just a few things in the crypto space happening this week we'll get into it but yeah it's it's a lot of juicy stuff

it was a crazy roller coaster week for crypto

to say the least

but so today's show was just kind of give a quick little road map Ross we've been having our intense three to see crypto challenge where you and I have drafted teams of coins and tokens and we take their cumulative price increases and decreases in seniors Emily so we'll give an update on that will be pretty quick on that there's no grief redraft this week and then we got an update on L. Ron which has had a change to it that will discuss briefly and then we'll get to the main topic of the week that everybody's talking about and that is F. T. acts in the battle between SDF and CZ of binance there and the craziness that happened with that

yeah Brian this is gonna be a great Hollywood movie down the road let's just say that could be you know what's going to happen

yeah that's true that does seem like would be interesting all right Ross let's start with Nancy crypto challenge update

so

yes fantasy crypto update Brian just give this a one more refresh here so I'm sitting at one oh seven two again let me zoom in real quick actually just to make sure everyone can see so yeah I'm at one hundred and seventy are sorry a hundred and seven a thousand two hundred dollars and Brian is at given a refresh that's not official if you're watching oh one hundred and seven thousand eight hundred Sir Brian still in the lead yesterday Ross took the lead but I now Brian's he claimed it

apparently but we're

now

we're now last week we are actually in the green right I mean we were a both above the starting their baseline was a hundred twenty thousand

yep we're both well yeah in the fifteen K. in the green

yes and then with the S. B. F. R. S. T. acts yes go this week yeah we are we are below the starting point but on our way back up

yeah yeah we're coming back you know

any big movers let's talk about the the big movers of the week on that each of us well

that just freeze

mmhm

so yeah I mean the biggest mover from Iran right now this is the right yeah it's maker up four percent somehow all in all this mess

that is pretty impressive

I mean shoot Cardano just being down five percent on this mess

it was good yeah Cardano did not drop as much as a lot of them what's my biggest drop

are your biggest drop on the weekly is merit circle

sorry gaming gaming stampede up I I saw some other gaming

gaming can hurt

got caught her

all rights you know I don't know does F. T. X. have investments in merece circle around but I think a lot gonna come out with you know some big movers down could have a lot of F. T. X. a basement so

good it could be it could be

and let's see on Ross side of the house so

we got there which

poly gone up twenty percent on the week very nice and thirty four percent twenty four hours so biggest loser want want is doge coin which used to be I mean overall in the competition is my biggest gainer I've gained almost four thousand dollars with that from my starting ten but

yeah yeah they got they got slaughtered during the FTX anchor drop

which I mean in some like this the assets they're going to go over the memes the the you know the blue chips I think are gonna hit least hard sell

yeah

makes total sense

all right well we'll have an update on that next week

and

actually then we have to do are re draft next week and that's always fun that's right so let's talk about another I don't know development in crypto this week

a little bit more

positive I think than some of the stuff we're gonna talk about then we'll do it and that is L. Ron and yet L. Ron is a it's a it's a project that we've talked about before we did a deep dive on it on the crypto masters I actually drafted it in the fantasy correct then I think I dropped it

well yeah I was actually surprised in hot seat still

yeah that affects you could actually drive

well I think either of

either one of us could pick it back up but so L. Ron has made an announcement

and it's not

it's no longer L. Ron it is

Maltesers

axe with crocus on metaverse it's still that token is still you gold yeah they eat G. L. D. but Stella Ron is more diverse acts or what do you what do you think this development roles

yeah I think you know I'd say just from you know if we had a ton of co workers in the office talk about what if you won that big lottery pot

yeah actually

I said I would start working to build a metaverse honestly and I think this is just one it's the the fun thing to do to I think it's gonna be a very profitable thing to do it could be early you know we're seeing Medicaid hammered hard with him critics and stuff like that but you know they're the first one through the door they're getting their teeth punched him first but seen more people go towards the metaverse I think is very promising I I just think it's very exciting and you know to everyone that's touching the metaverse now it's

looks like they've got the midas touch it's a big market mover so I think it's very exciting you know in your your look for where L. Ron's gonna go big to next so

yeah this is where talked many times about

the

fierce competition in later ones and

you know

each competitors

and

it's a bit of a crowded market with fresh with frankly a lot of good projects I mean there's there's some bad ones they're all ones there's a lot of good ones so anyway I'll run this kind of differentiating itself maybe from from that group of of competitors when you meet with each

yeah and the you know I'll I'll I'm also sharing my screen here showing the error on website you know if you wanna continue the new site here really cool website honestly as a web developer on the side this is awesome so it really cool when I say just side note but yeah very cool very exciting and you know we did I'm episode on our on I think we both gave it you know a plus or whatever a rating system is we given up some eagled

star yes how nice

yeah and dumber than

you know the thing that really stands out about it to me is the chart you know it's it's way to scale is three sharding and they're still emphasizing that about you know the being out a platform for multi verses were metaverse is so it's maybe it's it's marketing but marketing with with some differentiators that you know can get those people like you Ross and you win the lottery and want to build a a metaverse you know you might want to go to L. Ron I mean that's what they're what they're trying to do

yeah brand that's I just I don't know what Facebook is building I hate to keep bringing them back up but the centralized metaverse I mean you know world until later centralized exchanges not great I just think the real fun in the metaverse is going to be at the centralized world I ecosystem if you will that we can all exist and one where you don't have to create a Facebook account to get on a shot at oculus their shot at it you know I need oculus I have to log in with my Facebook I hate that one of the reasons I haven't got one but yeah I don't know just a little mini rant there but the metaverse has to be decentralized

well we were all set and we will continue to discuss matters no doubt bruising blockchain you'll be hearing about

this absolutely but to loosely

the big news of the week and maybe of the year although we have luminous with still this year as well but well

the make it easy those to these two things are in a year wasn't it wasn't

it was one week ago wasn't that we talked about a bit or was it two weeks ago

in last week

well anyways in a recent bruising blockchain either one or two weeks ago

we we noted how Big Boy was going off on Sam make men free and

mainly

at least started with his rant was with SPF you know what being Congress for

a

foursome the quick deregulation which really didn't seem to be in the spirit of of crypto and decentralization and seem to be favorable you know to his exchange and so that upset a lot of people most notably bad boy but what made some allegations about Sam you know doing some shady activities which at the time I certainly I don't think most people or anybody really knew what he was talking about

for sure I mean I didn't know I had no clue I was like what I mean what's going on right I mean

we don't know why

yeah and he did it I will say I'm just gonna but in here real quick Brian he was you know in his paper or proposal to Congress about big corn reveille regulation it was really took some shots to defy and really helpful is ation of all that so and really benefiting centralized entities house which

which FTX you know

it's

for Kerry out what's what so so anyway let me give a really quick background I I don't think most of our people our listeners are either gonna know about it or you know can she can find more details in other places but just for my respect even in a very quick summary is lot of people know that the sandbagging freed also owned Alameda research that's sort of where we started it's kind of a trading hedge fund type thing and then he owns like ninety percent of that in the course he started FTX the crypto exchange is sort of a competitor to binance and crack and Coinbase and it was extremely successful you know they are named in the Miami Heat arena is F. G. X. arena and we found out I think what really started the dominoes with a report from a clean desk which pointed out that our Mehta and S. T. acts have a lot of a cross transactions with loans and things like that and that Alan Maeda on on its balance sheet I had the token the F. T. X. exchange token which is F. T. T. it had just the Honda that's T.

T. which it was sort of valuing using as collateral and valuing at its current price you know at the time which is I don't know like thirty dollars or something and anyway that was the end there were some non transparent aspects that which the coin base

I'm sorry that

that that going desk article brought out kids so that alerted R. S. someone everybody knows almost a crypto which is C. Z. who is the owner in face of finance the biggest exchange by far and I learned that binance was an early investor in F. T. acts which is kind of interesting a little bit confusing but yet the finances that are financed a competitor anyway CZ and of course binance owns a lot of F. T. G. and C. Z. made the unbelievably bold move of going on Twitter and saying basically Hey Sam you weren't transparent with means so I'm selling all of our F.

T. T.

yep and

you know what you think happens when the biggest player in the game because gonna sell all safety T. I mean the price of FTG one from one thirty to two dollars and a couple of days

yeah I had to bring it up because I I do yeah you know twenty five dollars and I mean as low as about two

yeah

the remarkable

and very short period of time yeah and that cause all kinds of consequences you know does it and the F. T. T. everybody want to get out of the refugee that cause people to worry about FCX's liquidity in general serve ice trying to get out of course they don't have the liquidity and so they have to stop withdraws and just leads to a huge huge problem and basically is going under and C. Z. sad okay binance is gonna buy it very next day said oh wow we started due diligence and there's nothing more that we can do about that so that

you know yeah

even worse I mean so that was sort of how the whole thing started yeah what what do you want to add to that

yeah I do I definitely want to add CV's tweet this is from November eighth this was just a big might drop but two big tweets this out too big lessons one never use your token you created as collateral

you know

you don't borrow if you run a crypto business don't use capital efficiently have a large reserve and manta yeah he just hit the nail on the head but yeah it seems like F. T. exes had everything burned out invested out so yeah

everyone get away

on

average again just like you know the the you know that you know regular finance crash of two thousand eight you know leveraging here we got leverage you get

yeah

yeah

you know it's interesting that CZ really has a I don't know persona of of being a nice guy you know we kind of the mild look to aim and and you just kind of comes across as a nice guy his tweets in the scene you know visiting these places and all that he seems very acceptable yeah but I mean I hear I think we see is the ruthless businessman side because man he brought down a big big player sh really not Ross I did not see this kind of I don't think anybody other than maybe SPF but I didn't see it

coming

in nobody saw this coming this is huge I mean I was either the second or third biggest exchange and it just vaporizes if not totally it's still uncertain what's going to happen with it but it

yeah yeah

it must there's help NSB office said this year talk about his treatment but unless there is help meeting some investor wants to come and provide liquidity and essentially by the exchange it's going to have to go to bankruptcy I'm it that that's the way I read the tweets that I've been reading

yeah and me and Brandon it's just a terrible look for crypto from from the on on the educated perspective you know if you don't know what crypto is this looks terrible but it's really it you know something we preach all the time is you know if you take something like crypto it's a beautiful idea you know talking back to justice center she's real vision of this thing not SP

you know and get away from it and centralizes thing package it up and really I mean I don't know what what you wanna say defraud investors I mean it the crypto is just another vehicle for fraud it's not it's not that critical is a fraudulent machine are choking her vehicle you know

like like anything else that can be used for fraud by bad actors

exactly and I don't know it's just sad it's a big hit to crypto regulation is coming hard if you think it's not you know

we got to that what's coming in here is kind of my my thoughts on that are I've always said you know regulators usually just screw up everything they get but and I certainly don't want a lot of regulation on on on crypto on the projects on the tokens on D. five but the two areas where I we stood up what about that's been discussed right where I can see a need and benefit for regulation is one is stable coins I mean we're gonna sort of show that

and

then you know if you're saying it's backed by assets show us the assets is backed by well that's the problem that's always been kind of hanging over tether at least until recently was they wouldn't show their reserves so you're just checking their work for and that's no way to go now they've they've come around on that and they they've shown their you know what what backs the

tether

and then there's you know U. S. D. C. which is centralized but it shows they're backing I mean it's it's US dollars one for one tether has some you know dollar like assets that it uses for its backing which is March but anyways yeah so one is one is stable because the other thing is centralized exchanges I mean I just I I can see there is a need for regulation on centralized exchanges and this is coming from a free market or but I mean this is just an example of that and I think one of the big winners of what this is going to be like Coinbase I mean Coinbase is

no yeah

yeah they're regulated there publicly traded which means all their stuff is transparent and published and you know I saw a Brian Armstrong the CEO going based on a on a show today and he was saying this just can't happen to us you know yeah I mean that that that's true you know what's backing yeah I'm going based because it's public information go look it up it's easy

yeah I mean whatever you want to have on Brian Armstrong but man he is having a field day with this I mean I I saw him on several shows just like yep this is just another win for us and while we're great you know I mean well

I think we did overstate it but it but it is it is a fact you know like that you can feel somewhat safe and I'm not saying going based can't get hacked or anything like that if you know anything like that it's possible but at least you know they're not taking your deposits and in doing stuff with them like FTX dead with depositors money it used to pay some loans that had to our major research so anyway that kind of stuff can't happen with going back so I think it is going to be a big winner from this

I gotta say I most of all and and this is you know everyone saying it right now especially but you know I think most of everyone I trust Coinbase and but that being said it of my whole crypto portfolio less than ten percent has left on coin base on that exchange

yeah

most isn't just cold storage so if any listeners out there I mean you're safest in cold storage if it's not your keys it's not your crypto you've probably heard a million times by now especially on other mediums of social media yeah

get a lot of storage I'm also interesting you know there's always been the height between after the accident so wanna and I I I think just because it was a big investor it was sort of a venture investor and so on I think that so on it took a beating as well I mean it really dropped like a stone

yeah let's take a look at salon a real quick so we got you know F. F. T. T. appear big dip let's look at salon because I know they got real

yeah like most of you

in the teeth

it did I mean I went from number what was it number eight I don't know down to like fifteen or something at one point

yeah

did you have like yes so it's seventeen what was it down double but there it is you know looking at

up to thirty six and then down to twelve

yeah

yeah

and now it's back up to what like seventeen the rules

seventeen

yep yeah

and I don't want taking shots at Solano right now but very centralized project we have done a review of it but

why

take a shot

I'm not taking shots at it because you know I know people have invested in it and no one wants to see this happen you know just because of really conductivity of not really one person that mainly one person you know and a lot of your savings gets wiped out that's just not cool so

well I think that that is as a good point Brian because you know let's say you invest in bitcoin you're investing in the technology right if you're investing and that's a distance allies very distant everyone agrees big coins very decentralized gold standard for it if you're investing in something like Selanne not only are investing in the technology but the leadership behind it

yeah

so you're not just marrying soul you're marrying the leaders behind that you know yeah just like

in the in the stomach you know the investors the the venture capital companies that invested in and they

very true

and you know there's a lot of concern about I think some some small maybe the tie up hearing aids are ending and that could lead to more I I think one of that that happened to some extent but the the venture capital firm said we're not going to sell it to kind of get some assurance to that other investors so it didn't take as much as you could have that's interesting yeah

quick Brian Sir we've got a comment here Ken Jones this is interesting there's a wild theory about Sam being the industry plant

like different from traditional finance

maybe Sir he was international finance before he started his first company there

against the areas or at least no he's just repeating the theory I'm not gonna say it's against their

yeah

Ken is aware of a theory where

the

traditional finance people grow like Goldman Sachs you know but salmon is a plant builds the second biggest exchange in the thanks

why not would be wild that that would be something wild another another segment of the movie

yeah

we got reelected again still on I'd love to hear more about that I haven't heard that one but yeah

can can do another comment with a little more detail that's interesting

and if you Hey if you're on the stream said the comment and we'll post it up to have a good one P. G. posted up hi

Ross so after all this shook out in really it looked like the bottoms falling out I mean it really did last night on November ninth in the evening in the U. S. it looked pretty bad because that was after binance and said we're not doing it and then it just really was everything was in free fall so this morning I think was this morning right SPF did a we are ready I called his apology tweet yeah

yep there's a little I'll zoom in a little more here so you can see it but there's a little coarse language here

but I am

yeah first first statement as I'm sorry that's the biggest thing I asked up and should have done better so it's a long rant I you know will link it down the description that what I would call it a rant I mean it does not ramp but

Paula he's apologizing some information and some explanation

yeah I mean I I have a few a few notes that I took on it one thing is he he makes it very clear that this he called it a **** show only involved F. T. X. international he says your F. B. X. U. S. basically if you're American you got nothing to worry about you know we're we're you can withdraw all you can do whatever you want now I have seen some other tweets that said if you're on F. E. X. U.

S. you want to get off but

I would yeah now Fanta not financial advice but yes I would advise

right right so

not personally on it but yeah

I'm not even sure Sam made that clear

here

he also noted that I guess this is like her bankruptcy concerns if your your funds or stock on FTX international he says the total value is more than the deposits I I think trying to indicate I can't even if we go to bankruptcy you ought to get your money back he mentioned that leverage was a problem he thought they were zero actual leverage in there actually

yeah

one point seven X. leverage so again leverage rears its head here in in a in a disaster I'm

he thank you up there quick Brian data analyst this should be on a freaking dashboard that he looks at daily I mean I know he's saying he's sorry but this is a major doubt he says this yeah he said but yeah

so let it sit down little hopeful there is definitely a hopeful message in here and he's like you know I'm doing everything now to to get some leverage you know work we've got some LOL eyes you know letters of intent we've you know we've got some things making it sound like they still might find investor that might be able to

a

lot of the sinking ship now so that would actually be very positive that

yeah

actually happen let me says no promises and then Ross one of the most interesting our parts of that thread was the one that says he calls in his sparring partner he doesn't name names but everybody knows he's talking about CZ he says well played you want so that's sort of speaks volumes about what really happened

yeah

yeah so interesting stuff

yeah very fast same Brian side note you know everyone is F. D. X. owns the Miami stadium are Miami arena where the name the name yeah the naming rights to it so you know the F. T. X. arena and

I

just pulling it up out of curiosity the mail website still live but you know Miami's tweeted out that

you know we're

we're looking for new people for the naming rights because there's a payment issue of course but

yeah I just I wonder how much in advance they paid you know that they may have it for another

that's a good point yeah

you months or six months in jail they can't make the next payment but yeah

yeah

so I don't know we'll see how this works out I gotta tell yet last last night when I went to bed I thought this was gonna be a disaster is still could make I mean it's bad it's already bad what is wrong and effects that could happen you know people get swooped in and everybody including institutions take all their liquidity off the exchanges there's going to be exchanges that fail and then when exchanges fail you get you know hurt depositors little guys and it just could be achieved in a chain reaction that I hope we can avoid it I I I hope they get some liquidity at least salvage this so that it's not domino effect disaster

yeah yeah

there seems to be hope for that and the markets reacted today the crypto markets reacted day following to some extent maybe that inflation news in the US and the stocks went up but crypto went up as well and I think part of it was based on optimism that this thing may not be as bad as could be

yeah N. I. but I think the major worry I have with this Brian is just the reporter sentiment R.

yeah

you know after that I mean it's just you know for those people are skeptical about crypto this was this is yet another smoking gun on the year that

it's Morimoto is

fraud yeah this is just more ammo this is this is a scandal get into it and Hey you've got people that I'm sure went on F. T. X. because you know they watch the World Series she last year when F. T. X. logo was first put on everything and you know gotta and got into crypto and bought in for the first time and now this is happened I mean that's one way to lose a crypto or for life I could go ahead for life I'd say so Dana back I'm very worried but

in my time yeah this set us back us being the crypto believers this set us back by at least some months but Hey that's

okay

if if if that's all it is yeah I mean I'm still I'm still a big believer crypto this is Nick and one guy screwed up in a sense doesn't change anything about all the benefits of crypto and decentralization everything we're gonna keep talking about

so Brian B. that's to say you don't believe crypt Arabic coins gonna hit a hundred K. by December thirty first

that is correct what whatever whatever the new all time highs we're going to be I think now we're going to be a few months later but

yeah

again crypto is still the future is the stills too many benefits to stop it so it's still gonna happen I'm still big

yeah the idea the technology everything is sound nothing has ever been wrong with I mean if you look at any photo by itself a crypto asset by itself especially big coin it's solid know what I mean that is solid but it's just you know it's just another vehicle for greedy and we're irresponsible people to mess up so

yeah just like they can do anything really

exactly exactly

it's not like a fiat currencies like US dollars don't have you know bad players manipulating them and you know you're all the same stuff so yeah

yeah I still use it so

yeah that's right so we are running a little long man I think we need to wrap this episode version blockchain

yeah I think it was good up there what all yeah I felt the map well you're you're related one lives every Thursday morning to this now Brian I say we just do it live every thirsty Thursday refers to blockchain all your crypto news and more crypto fantasy as it continues to unravel

all right about the crypto masters dot com

yes crypto masters dot com check it out you won't regret it I

think you're awesome

thanks

by Brent

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