FTX Scandal - GOOD for Crypto?? | Brews and Blockchain - Transcripts

November 17, 2022

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Join us as we dive into the latest on the FTX scandal and of course the latest in our Crypto Fantasy draft! Will Ross keep the lead or can Brian gain it back?? Here is a link to our fantasy rules slide deck: https://docs.google.com/presentation... Ma...


Hey guys we're back my name is Ross and this is my good pal Brian and we are the crypto masters welcome to Burzum blockchain where we talk all things crypto all things around news in the crypto space and Brian guess what we got a lot in his lot action going on it's

it's got

it's actually hard to collect our thoughts on this yeah or doll yeah it's never dull never dole in a normal week or day in crypto but it seems to be wild lately and you know again this is Bruce a blockchain we're going to drink a little bruise and also will give a little update on our fantasy draft at the end here so

make sure to

check around for that

it's actually re draft night so we re draft to make some changes to our line up

that is correct demand

for every draft it's challenging because sometimes you don't want to but you know you have to

especially mine this week finally get rid of anyone anyone of my picks

all right well I think you took the lead so we'll

all right Ross well you know

we're still on the heels of the F. T. X. closing bankruptcy filings and the fallout from that and so you know well we've got that to talk about and then you know some of the of the chain reactions that are expected I think and I'm not really that many of happened so far but we got news of a little bit today it's hard to say how how big of a deal it's going to be but I think you're gonna mention that that was going around on on Twitter and some of the crypto news outlets

yeah for sure Brian so I think you're talking about the gym and I outage so let me just share my screen he are so yeah crypto exchange Gemini reports brought out age but they said client funds are are secure so yeah they had a temporary outage today and funny fact Brian I was literally usually if I can I try to watch the Big Boy live show and it literally happened I think pretty much during the middle of that show in the comment section was blown up and they're just on stream like what the heck's going on like you know and at that time you know they're speculating but it seems like Jim and I it's only Germanized


their earning platform so if I can kick it over here

you can see

if you got a status that Jim and I dot com they have a status of pretty cool like little portal to see all their outages or you know what's up what's down what's in maintenance mode but yeah there Jim knight earned right here it might be a little small for you see is still reporting outages right now and to give a little context there a juvenile uses genesis well what exactly called genesis LOC genesis global capital LLC for their lending an earning program so basically if you go on Jim and I now and you specify that you want something to be earning yield they use genesis global for that they basically landed out in the genesis gives the earned back so only that pieces down they've just heard us you know as far as your big goin on exchange is safe and all that although with the Christian masters like for you to go up you know everything on cold storage on a hardware wallet something like that I get off the exchange if you can't but yeah I think it's been assured to us now

Sam Bregman freed said that a few times as well

funny enough yes and I

I think genesis is owned by the same parent company that also owns grayscale you know which has a lot of the publicly traded trusts involving crypto than their big one most famous one is GBTC other greats grayscale BTC I'm in I'm in theory and wine and then they have some that they have some other ones men that have some combinations they have a trust that's called smart contracts platform we just got a comment question from crypto Katie should I be worried about my gray scale B. T. C. that is a timely question crypto Katie

I'm in the question

and the answer to that is no you do not need to be worried I actually incident IGP there it is I own some buy GBTC you know I have a retirement account you can buy that's kind of how you can get in your retirement account an easy way and so I haven't seen GVC for a long time and I'm on grayscales mailing list or their you know their email list for updates and stuff and they sent an email out telling everyone to rest assured it's not anything to be worried about and and that's true because you eat out from the beginning all it's the get cases we do all of


you know all of the required it's a so it's publicly traded so it has a lot of the disclosure requirements in it always says you know we're one for one for every BTC that's in our now they package it into like one tense but essentially it's backed one to one and all of their assets there bit coin and and the other crypto assets are in they call deep cold storage so

it it's yeah

it's a trust is right to do anything but store the the day coin that it sells to people and they you know they get a two percent fee or something so yeah that's good news you have to worry about the GBTC but this is a bit of fallout from the F. T. X. question I I don't know exactly what ugh genesis you know maybe maybe they had some assets on F. T. acts that they can't get to it that must be it I don't know but so something like that yeah that's right

it's very interesting Brian

yeah showing a little bit of contagion but you know for the most part it seems like the fallout so far hasn't been as bad as what people were expecting although you know it may take some more time

yeah definitely make take more time to shake out and I want to say a first Brian you know I have two brains going on the analytical brain and the speculative brain so my speculative side was like oh man that F. T. X. hacker that's working for F. T. acts just hack Jim and I had to make it look like all these hackers are out there and that's great for the lawsuit had like stop for a second like okay let me do a little research real quick you know and I think that's that's kind of what a lot of people are speculating on like a lot at the starlet over they offer everyone you know but you know it's yeah

yeah so what you know there's been some other topics about the the F. T. X. and Sam bank been freed playing a lot of things I've been seeing going around Twitter with a lot of big names in the crypto world talking about is the fluff piece that The New York Times ran about this embankment freeze and I didn't I didn't read it but basically everybody says it is just you know I got ridiculous a PR piece you know somewhat way too favorable for this guy who's yep pretty clearly a criminal


and then there's all kinds of you know why why would they do that it first of all the new York times is like the worst journalism it's not even journalism at such a terrible publication that's just a fact but you know people are wondering why why would they do a piece like that now and you know he he Sam was the biggest or the second biggest contributor to Joe Biden's campaigns and massive contributors

one rain I think I got the right one yes

yes I believe that is it yeah he's a contributor to the Democratic Party they're in charge now and the government

you know

this for a couple more months of total control and

you know so there's just a lot of commentary about this ridiculous article and the timing of it so I I again I haven't read it I'm not going to read it I I don't

crap but

anyway that's kind of another thing going around the the crypto world today like you know this they think this is kind of a set up to give him a chance to make a comeback and people are like you've got to be kidding me

yeah I don't think I mean after all this you just not you're out

yeah there he Indo kwon can start their own coins anymore on that wants to buy that deserves what they get

what is the new Luna logo and it kind of like a Phoenix or something like a Phoenix rising from the ashes or something like that let's see

they have been up on here

maybe not


yeah I thought that was really funny it's like now that fires burnt


you're more like a piece of burnt wood it's done it's spent

and done

yeah Brian I don't know that there's so much to say an impact about this I know we don't want to beat a dead horse because it's been going around the crypto space a lot I'm sure ever all of our listeners have heard it by now but yeah a couple of other interesting things I heard about this

you know whole SPF FTX staying as is it's very interesting that you know the the guy that wrote the big short of actually falling around SPF for bioptix so

I heard that

this is kind of interesting timing for that

in addition to that I heard their CM class action lawsuits against Tom Brady and Larry David for her you know yes indoor saying that so

that's kinda jealous but still that that


that I guess it did happen but yeah good luck with that they're not getting anything out

yeah yeah thank you you can suit someone for anything right but I I'm right that's just ridiculous so yeah it's not going to win

that's fine

and if I could take a quick shot at I don't know we're not huge fans of TA maybe we do a little bit but I don't know if any T. H. chart will plot any fraud going on I don't know man I just take a quick shot at that

well here's what I'm I'm and I'm reflecting on this now about what happened to F. T. X. when you really think about it right why did it happen well it was a centralized exchange with really one guide mainly in charge I'm sure there are some others that sort of one major decision maker so is centralized and we know that what led them to trouble like usual is it was very leveraged they and their sister company Allen made a research used the F. T. T. tokens as collateral for loans of cities that


but there were no sort of repercussions on what happens when the value of F. T. T. falls in I'm just saying that because I want to compare it two what I'm getting out of this is the real message you know what we're really want to look at this it's not crypto is bad frankly this had nothing almost nothing to do with crypto other than it was a centralized exchange the trade crypto


when you look at what really underlies crypto but this just emphasizes those principles right I got it if there were self custody which you can get from crypto that's one of the major benefits you can have the self custody it doesn't have to be on the exchange nothing had to be on the F. T. X. exchange aren't so there's no trust no permission that's what crypto brings self custody the ability to do that see it so you had that choice that sort of highlighted by this and then another thing to me that's highlighted by this is the defy protocols you know they defy protocols Mike if you wanna get alone on on your crypto it's all spelled out in black and white you know exactly what's going to happen there's no negotiating there's no charming someone or taking amount for a state dinner around the golf no

although that is nice



drops if the value drops there are exactly what's gonna happen is exactly what you know in advance is going to happen you know whatever you have on as collateral can be partially liquidated to make up for that until it gets into the ratio that everyone agreed to and you remember defy every every defy I've seen it all is over collateralized is never under collateralized you have to have more collateral then you borrow well that is a way to avoid it bank runs that's a way to avoid you know the the whole anything that happened with F. T. acts that would never happen would defy yeah really this is just an example of why D. five is superior I I saw I I mean and and not to mention the other things I buy this is the on chain date right there was no on chain data for the shenanigans that F. D. X. was doing behind the scenes when you go to defy protocol it's all there it's it's all on the blockchain which double click sensible so it's it's an open book and that's just contrasts with it with everything that F. T. acts in Sam bacon free we're doing so even though it somewhat gives crypto a black guy it's not really justified because crypto you know in theory behind the whole blockchain and the whole bit coin ideals they're just highlighted by this the superiority of them shine through this and I hope that maybe that will come out of this in some way I mean I it's not now not immediately not I certainly I feel bad for the people who had any anything on that exchange yeah because you know sure lock that I didn't have anything on there you know

okay same here yeah

right I mean I just was turned off from the beginning by SPF and so I was never going to use FTX but that was just a a quirky saying I could have easily had some

money on there and

so I'm not that the people had it on there are the victims and I hope and I think they will get most of their money back that's my reaction to it just may take a while

it's a really good point Brian I mean we're we're both not huge fan of the week by Jim and I but I know they offered it merits circle that I can get easily so that's literally the only thing I have on Jim and I so I you know rifles okay that's that's not my have just on Jim and I


well that's

the thing I was going to mention when you're talking about that story and I don't

know that anything

at all is wrong with Jim and I and there may not be anything at all wrong with it but but

I'm ready for this but right now I'm just you know

it just seems to have

a lot

of the same attributes as F. TX I mean it's not publicly traded it's not it doesn't have all the disclosures so it

just seems

yeah it just seems possible that there could be something they're going on that we don't know about just like FTX and I just and I say that to contrast it with coin base because I know not everybody loves coin base but it it this day in time you know right now if you if you have to use a central exchange and you can you can

you do

really to get on and to make your initial fiat deposit to get some crypto then you can take it to a decentralized exchange but as far as I know you still have to get it you still have to use a centralized exchange

yeah going this

is you're going to it's publicly traded


which means there's all kinds of disclosures the stuff could not be going on let me tell you Kathy word in arc you know her ARC investments think of that team that they have and she's invested heavily that product is investing heavily arc isn't Coinbase now do you think they didn't do their homework do you think they didn't check everything they they did I mean and it's required disclosures required audits anyways so I'm not here to promote anything but I'm just saying right now as an American probably as as anywhere in the world you used if you got is the central exchange below use going base there that's that made it simple I hope

yeah I mean there's a lot of good options but yeah I I think our top one is Coinbase that's what we've always use again so I can't use the real by

we can't use the regular binance that has all million tokens on it

exactly yeah

Americans were allowed to do it I'm not dealing with the V. P. N. anymore

yeah it's just not worth the risk and that's really what we both started our on was binance until they kicked over to binance U. S. that was trimmed back so it's like well get a coin bass pro so yeah the whole song and right but

then I realized Coinbase may not have every coin it doesn't have merit circle which you and I both wanted in you actually went on and got it I I get that there sometimes you really get fixated on one you really want it but

look at the lineup

on Coinbase it's got a lot of of coins and tokens and you ought to find something there to to invest in if you really want to do it

yeah and I guess the you know I just bring it back to one last thing I'll say about F. T. X. the analogy I've got is if you're if you this is tainted your view of crypto it's almost like with the Enron collapse if people were upset with the American dollar you know it's like first

oil we were you know I mean or energy it's

exactly yeah it's like energy or oil or the dollar that we traded to used to buy this that's not the issue it's the people managing this and the company behind the scenes the the dirty guys in the suits you know

it really has nothing to do with crypto I think in fact either they were listing stocks are there on the way to listing stocks you know kind of like Robin Hood you know has both

yeah I think he Toro Toro yes island stuff yeah so

again it's not the underlying


if that were to happen I mean the Toro or or whatever even some exchange you're not gonna say oh all stocks are bad because this exchange went bust I mean it was just a poorly operated fraudulently operated exchange what what it was trading has nothing to do with it you know so yeah I think we do need to keep that in mind as well yeah

and I I don't get to this point too much Brian but it didn't it just like it kind of breaks your heart a little bit that you know human nature is just to it's just always going to be their fraudulent activity is always gonna be there I can't be trusted you know it's it's kind of sad but

but but think about this here's what yeah I I agree with the Ross that humans right it's the


but think about the internet scams you know think about the Nigerian prince and all that I mean

I guess

there's still

the internet bad should we shut the internet down

you know what I think about his email bad yeah what about that yeah what about the telemarketing scams you know where they target the elderly and get them to you know give them their credit card number over the phone should we ban telephones are telephones that I mean again if you

like you were saying

I think on the last show it's just the vehicle and essentially everything is a vehicle for fraud in criminal criminal activities so it it's just another vehicle then I don't don't blame the crypto learn about the ideals underlying crypto and you'll see they are the opposite of what happened with that P. X.

yeah I think that the people get now I encourage you hate yeah maybe wanna get out right now take a break that's yeah whatever you want to do but definitely get into it again read the white papers read you know the tech is solid the tech and the ideas awesome so toe she's vision of this decentralized currency is is really a beautiful thing so I think that's what technology is about and it's your own power human beings to

we will keep hammering and supporting the decentralization aspect of this because that's the heart beat of of the blockchain and crypto

and let's let's look real quick so this is pretty interesting Brian on coin gecko F. T. T.'s rank is now in a

so that's brunch thing and they have this warning up here proceed with caution and it's down to like a dollar sixty I think we last saw it at like three or two dollars something crazy but

yeah I think last time it was a couple dollars when it was just thirty five or forty right before all this

yeah I think we're kind of right in here maybe when we looked yeah so it's yeah don't touch this


if you somehow can don't touch it

yeah when you were a kid about fighting no I don't know yeah it's it's not I'm not tempted whatsoever it's not

worth space in your brain

but speaking of that Ross may be good time to segue to the fantasy crypto challenge the crypto masters crypto fantasy

crypto fantasy baby

that's right

we do need a jingle maybe I can get on Fiverr and get someone to sing a slow


now we'll do it ourselves yeah we just proven we don't need that we don't need anyone else like falsetto tunes there that is exactly right and so let's look at who's in the lead what what's the current



if we

if we didn't know Ross is taken leader if you have been following on Twitter Ross is taking the lead so he


is ninety eight thousand five hundred dollars keep in mind we started at a hundred twenty thousand Brian now is at let me give a refresh that's not exact seven thousand nine so still close

hi this is very close this is exciting

but Brian close's no cigar I am in the



and and now we have to we have the forced under our rules which are which we think to there there are we are forced to redraft it's been two weeks since we re drafted Ross and a quick reminder we just do what's right we have to change out one from each of our categories large caps medium caps small caps

yep in the large cap above fifty in market cap ranking medium fifty one hundred and twenty and then a hundred twenty below for small

hello Europe first thank this week yep

I think I'm up first and I'm looking at my teeth my up big portfolio here brand I really I honestly love a lot of what I've got in here doge coin poly gone that big movers for me they're actually the two in the green east still lagging behind surprisingly enough actually not because everything's bleeding but I'm looking at you know I picked Minero here and I still love Minero I don't own some in the real world but I thought I'd be kind of a stable pick as a kind of figure things out but I'm gonna knock off Minero here and what I'm gonna pick up as something epic we talked about last show it's not L. Ron anymore

but its multi verse X.

what number is right

multiverse excellent pulled up again it's forty three

all right so that's your large cap all right what did you drop Monero

Monero drop Monero from Walter's


are either old baby

gold white my large caps I have ada I'm keeping it I have Adam I'm keeping it


I have

because most look

I am quant and algo rand and I like a mall but I got to choose one I think I'll go is Alex and

was out okay

I I'll go had a short run with me but it's just it's just the way it could be crumbles I'll go out and dot in

and that's the way the cookie crumbles actually I'm a little surprised none of us have dot

really no one thought yeah well I do now well there you go all right yep polkadot everybody knows what poking out is if not go to the crypto masters and find our our deep dive on we have not

we have done an episode on polka dot yes some

all right well yeah medium cap

I love poker that Brian but if I ever wanted something to go down now is the time and so medium cap I've got let me we filter this real quick so I can get better looks so I've cat axiom Finetti iota Loopring and defy chain


all great pics really I performance wise axiom Phineas hurting hurting bad I did hear F. T. exes kind of affiliated with taxing death from an investment standpoint your honor

yeah yeah

so yeah that's bleeding real bad this isn't if you're watching on YouTube this accurate descriptor or depiction of the loss here because I'll added it on Coinbase but I'm down almost five grand for my starting ten thousand but the axiom fifty now but at this at this point Brian it's that low I just got to ride out the storm I gotta hope this roller coaster has another climb you know I mean some stay with it but what I will do is take out defy chain just because I feel like the retail investor might be looking at defy in a different light now mistakenly I'll say but in the short term I'm a take up a defy chain and I'm gonna add synthetics network

synthetics yeah

that's right we cut we did absolutely we do Absalom your protocol

we did and

there are some similarities yes yeah there's some similarities there they kind of get you kind of get a synthetic stock or commodity or whatever you write credo token form so

mysteries won't go with you all right surprisingly good pick all right go to to go back to my roster I think I have a are we Chiles floor chain water my mediums and maker

yep that is correct

all right I am going to I like them all but I am going to drop my store chain my Rooney and I'm gonna pick up even though it's probably it out too early for the metaverse I'm gonna pick up mana

do some

man which is Decentraland sue

west noble

Hey man this the that that's the way the redraft works you gotta make some some choices sometime I'll out long term though I I if I could hold this man a for five years I'd be happy with the tech but in the few months we have left in this yeah it's probably

well that I mean Brian II didn't sell me on that you got me back a little bit you just folded like a card table all right and I love it but I will say mana with the bad press of daily active users at one point being like thirty people something crazy like that I don't know the exact stat but it was like under a hundred I think they're looking for something like what that bad press they're looking for something to gain at so who knows what manta we'll see yes injure landed

the matter time

manner yeah

all right what's your small cap pick cool we got to wrap this baby up we're we're

yeah we're owner so small caps have yearned out finance could Dana wax protocol an alchemy pay which is my dark horse supposed to make me a ton of money because it's so low market cap down at three six six six but what I'm gonna do is I like cal wax kept me steady but Ameritrade it out


because you know the top performer my Pully portfolio Brian is Dogecoin in in these bear markets the main coins can really surprise here they can Shakya round steak in ski area and in the crypto fantasy competition I think it's what I need and Brian


what's cuter than a DOJ how does on Mars

our baby division so

yeah Brian


wanted entertainment yeah got it


didn't even read this freaking number Brian it's point oh oh oh oh oh oh oh one one three five that


why I picked this because you're tuning in the crypto master for entertainment you're gonna get it

whatever goes to once

let's disregard market market cap would take to get there but yeah

all right last redraft pick on mine I think I have I have yellow does on Mars which I'm keeping for the reasons you just said Iraq merit circle which I like a lot


again I mean it may not happen in our small time frame but I just got a whole because I think it's good

that's a lot like for sure yeah

I got sushi swap which I think is tremendously undervalued and last time I picked up I picked up oasis right rose yep

asus net

man I don't wanna get rid of any of those but I have to so I knew she was up

thirty percent the last seven days just FYI

yeah all right you know what I'm going to I'm on a get rid of oasis it's had a short run with me okay and you know I drafted that I picked UP dot I'm gonna pick up the other dots which is

sama lu

that like that was like the docks four runner test network but it still gets a lot of he has a lot of action on from developers so who knows


let's go with it Kasama where is it I don't see what number it is now

it is one thirty five yep Kusama's ranked at one thirty five all right

there we go yeah yeah


so there we go there's the redraft Ross you'll plug all those and put it up on I guess it's not a website we you casually posting things on Twitter with an update right

yeah I keep it updated on Twitter so you know if you're trying to get updated their look for updates seeing how far in the lead Ross's just check or whatever you know link in the description there

why Ross


I think it's been a good show what we're running a little longer than we want to but that's okay we had a lot to talk about we had to re draft so all good we'll be back next week we won't re draft so we have a little more time we'll talk about some more current events and maybe some more developments or maybe will be done talking about S. T. X. who knows

yeah who knows Brian it's a crazy crypto world right now but Hey check out these crypto masters dot com make sure to follow us on YouTube Twitter Facebook Instagram

well all right we'll get this part I