New FTX CEO's Reaction and Cisco's Earnings Beat

and why they need for job cuts. And we're a week away from the official start of holiday shopping season and the digital strategy for retailers is more important than ever. Mac CEO joins exclusively to talk about expectations. But first, let's talk about the ft X empire collapse a little bit more if you can bear it, because d x's new CEO has been slamming the non existent oversight, the misuse of client funds, and saying that they're struggling to

locate billions of dollars in missing assets. The most Katie Greifeld is here with the shock the ore when we read, of course that bankruptcy statement coming Finally, Katie, what did you make of some of the most sensational parts. Well,

it's amazing because this is just day one. This is the first thing that we've seen from John j Ray the third and I like you highlighted at the top again this was the man who helped liquidate and Ron who drove that saying that this is a complete failure of corporate controls and such a complete acts absence of trustworthy financial information. So really slamming the record keeping that was going on and what it caught my eye, and I mean it was just a treasure trove, this war declaration.

But he also took task to test the concentration of control as well. It sounds like a lot of it rested with SPF, which just a small handful of people. You combine that with sort of shoddy record keep and here you are a big part of this story. Katie is looking for things and not knowing where they are. The administrators are looking at ft x is Empire, the digital assets that they held on behalf of clients and themselves and saying where are they It's a very pressing question.

So far, we know they were able to locate about seven hundred forty million worth of cryptocurrency in cold wallets. They also found about five hundred sixty million dollars in cash. You add that together. I'm not too good at math, but we're still missing billions of dollars there. And again, like we were saying, the record keeping, it was very halfhearted. It was very messy again according to the sore and declaration.

So that's a puzzle that needs to be solved. And then you think about how this is actually going to be distributed to the different creditors, of which there are more than a million dollars, and it's quite a process. More questions and answers. We tried to get some answers from our view as you out there you responded to us on Twitter. We love it because we put the polls out to you earlier in the morning, and we wanted to get a gauge of really, what is the

most extraordinary part of all of this thus far? Is it the CEO's new CEO's reaction that you just spelt out for us, Katie, Is it Sam Matman freed himself. The ongoing Twitter narrative, the cryptic tweets is it the fact that, of course he's now facing questioning in the US from a legal perspective. In fact, most people thought it's all crazy. It's then he feels all crazy. Whether the titbits can you bring us that have just been

totally sensational. I mean it's got to be the tweets, right, the fact that it's just tweeting through it, it's really amazing. You combine that with the d m s to that incredible report from Vox. But just focusing on the tweeting again, FTXS lawyers citing his quote incessant and disruptive tweeting while accusing SPF of undermining the bankruptcy case. I mean, it escapes me. Another example of something like this, it's one I think there was potential photographic evidence and him just

in a supermarket street. I saw section in the same Twitter circle late at night, too late at night. Katie Greifeld, we think of her being so on top of this story. I want to get you more really perspective here on the ramifications in the entire ecosystem. I'm really police and welcome back to the show, Jill Gunter. She is, of course chief strategy Officer and Espresso Systems, a company providing

scaling privacy systems for Web three applications. Jill, great to have your voice on this because you've been someone who helped, well, really put money to work in this space. When you're slow ventures now really building out this ecosystem. How much of a knock has it had across the entirety of not just exchanges, but more broadly. Yeah, I've been fortunate to be in this space in some capacity for the

last decade. Now, as you mentioned, whether that's on the investing side, were now on the building side with Espresso Systems, and I have to say, I have never seen a tragedy of this skill. I think it's a tragedy for the retail investors who came into this space and put money to work with SPF and with f TX, and who didn't fully understand what the mission of crypto was about.

And I think it's also a tragedy for the crypto industry as a whole, that it's being dragged down by the acts that it seemed to be, at least at this point, fraudulent and criminal on on the part of just a few actors in the space. F t X is not crypto it's not representative of the industry, and it's not what the industry was founded to solve. Jill, I've been excited to talk to you because you cover

basically the entire ecosystem of what's falling apart here right. Yes, your cso it Espresso, but you also are essentially a venture capitalists. You've invested in other crypto startups. Could you tell Caroline and I what conversations you're having with all your friends behind the scene, everyone that you know in this history industry. What are people talking to each other about. I think that the biggest takeaway amongst builders in this space, of which I'm lucky to be one, is that it end.

This is not what crypto is about. Crypto is a technology that was founded to bring accountability, openness, transparency to financial systems. It was founded if you look back at the Bitcoin White Paper, which was sort of the advent of the space as a whole, created in two thousand eight in the wake of the financial crisis that was playing out then. It was created to reduce the necessity to trust middlemen with your finances and um and with

your assets. And unfortunately, I will say that I think crypto is an industry has fallen short and a few capacities, one of which is that we have yet to build good enough user experience around the products that we've built that truly do take advantage of the openness, transparency, and accountability that it can offer. And because of that, people have trusted their assets to centralized exchanges like f t X, and they have gotten lost on what the actual core

value proper position of the technology is. They've also gotten caught up in the speculative hype around crypto as an asset class while losing track of its value proposition again

as a technology. And I think amongst builders in the space, amongst the entrepreneurs out there who have been building, whether it's for six months or six years, in this space, there is simultaneously a feeling of despondency that this is this is the mainstream view of crypto right now, is that SPF and f t X are somehow representative of it.

But there is also a real feeling of galvanization that this is our opportunity and that if anything, this should drive home to people why the core value prop of crypto is actually necessary, why we do want technologies that reduce trust in middleman and trusted intermediaries that SPF purported to be among passionately, said Joe. And there is a lot of passion, and there is a lot of anger rising, but there's also a lot of committed capital that still there. Adventure.

I'm interested as to whether we've heard of perhaps the institutional players who are looking at investing in the actual asset class perhaps pulling back. But what about those that are building like yourself at the moment. Are you worried about those checks that having been built up and I'm ready to be deployed, are still being cut for companies such as yours. My senses, yes, my senses that you know there will be, I think rightly an increase in

scrutiny and diligence being done around companies. I think that the standards will also be raised to ensure that companies are not just building another casino, but instead are building for real utility, real value, and real sustainable revenue and business models that aren't just founded on a pyramid of tokens um and I, I, for one, welcome that. I think many builders in the space welcome that as well. I think that that level of diligence has been missing

for a while. I think that there are many reasons for that. I think that people had the sense over the last decade really that there was easy money to be made. That was a combination of everything from interest rates to again a speculative bubble really around a nascent and poorly understood technology. And I think that that's all been washed out from the investors side, and I think that that's a good thing. I think we're just getting this conversation started. More to come. Do you're gun to

Chief strategy officer at Espresso Systems thank you. Hardest part for me, as somebody being on the organization side of layoffs is that you know that people's lives are at stake, and if you are an empathetic person, which I for better or worse, m you can't help but think about the impact that this is going to have on the people who have a job one day and not the next day. This is Camilla Boya. She had the misfortune of working at three companies in the space of nine

months that did layoffs. While there is definitely not a good way of firing people, there is absolutely a bad way. There's three really important things to bear in mind. First of all, don't fire a mass number of people over zoom or over email. Don't diminish their contributions to the company. Make sure you're showing gratitude for the time and effort and love in lots of cases that people have put

into their jobs at that company. It's much harder to trust a leader who isn't capable of owning their own fallibility than it is to trust one who will own up to their mistakes and be willing to kind of take that on board and move forward. Accountability, empathy, closure. It's really important to treat the people who are being laid off with that respect. Giving the people impacted a

chance to say goodbye. Treating them in that human way and not just cutting them off from every system right away, goes a long way towards the experience of both the people who are leaving and the people who were remaining in terms of that ability to move on. That was quick takes Alex Webb and checkout dot COM's Kamilla Boya and tech layoffs are in the air. Bloomberg TV also spoke to Airbnb s Brian Chesky earlier. Here's what he had to say about job cuts. Two and a half

years ago. We lost eighty percent of our business. We laid off of our employees, and I said at that time that we are going to be now prepared for anything to come, any storm. And so we stayed really disciplined for the last two and a half years, anticipating difficult times ahead, and we said, no matter what happens the economy, we do not want to have to change how we run the company. And that's only possible if we stay lean. And we stayed disciplined, and we only

have about six thousand employees, so we're really lean. Begin the year, we were only planning to hire seven percent more people than the year before, when many other tech companies that weren't growing even as fast as us, we're gonna hire more people. So because of that and because the strength of our business, we are not stepping on the brakes. In fact, we're stepping on the gas. We are still hiring. We're not freezing, we're not cutting, We're growing.

M That was Airbnb CEO Brian Chesky, and speaking of tech layoffs, Cisco closed four point seven sent higher on Thursday after giving an upbeat quarterly revenue forecast, and like many other tech companies right now, unveiling a plan to cut jobs. CFO Scott Heron joins us. Now for more, Scott, let's push this forward right, bullish outlook for the last three months of this year. But at the same time, you're acknowledging a changing macro picture, you're preparing for the worst.

How do you balance that? Yeah, and in our case, I think it's a little bit different. And first of all, thanks for having me on the card. It's great to see you both again. I'm a big fan. I should start there. We had a great first quarter. It was record high red quarterly revenues for US earnings per share and revenues above the high end of our guidance range.

And it's really on the back of a lot of hard work we've been doing over the last eighteen months to build a recurring revenue model and to manage the supply chain issues. So the performance is actually quite good at the company. We did announce a small restructuring today and it's really about two things, and I think it's a bit different than the way perhaps you've heard from other companies. Ours is really about rebalancing the number of

headcount we had at the beginning of the year. We have today, we're gonna have the same number of heads at the end of the year. What we're doing is trying to marshal more resources and focus more into a couple of key areas, which of course means we have to come down in some other areas. So we're focusing more on platforms and cloud delivered capabilities within our networking

business and insecurity. Our goal through internal placement, by the way, is to place as many of those who are displaced on the low end of that into some of the open jobs on the on the other end. So this is not a cost motivated, cost savings motivated restructuring for us. Talk to us there for about security, about clouds, Scott, Are they the two areas that a corporate, a government agency, a client of yours cannot do without. Why the bullishness

into this deteriing outlet. Yeah, I think it's a couple of things. It's a great question, and one of them I just talked about. We are more than our revenues now are are recurring, right, and so we've built up more than thirty billion dollars of remaining performance obligations. You hear the phrase r p O, right, that's sales we that we've transacted that haven't yet shown up in our revenue stream, so we we we start each quarter with

a nice recurring revenue base. We also, through the last year because of some of the supply concerns, have built up a significant order backlog. When you put those two together, and you know, demand is what demand is. We had the second highest Q one in terms of product orders that we've had in our history, second only to Q one a year ago, and so we continue to see good demand. We've got a base of recurring revenue, and we've got a backlog, so we have great visibility into

the next several quarters. Traditionally, Cisco is viewed as this sort of legacy tech name, not so exciting Scott, if you don't mind me saying, you know, that's the Cell sides kind of take on Cisco. But you are trying to do something new, move into services, recurring revenue, be more in everyone's face every day. How's that going. It's going great. You know. It's one of the reasons that I think you hear the bullish outlook from us at a time when there's a fair amount of uncertainty um

of our revenues. I'll say it again, of our revenues are coming from recurring revenue models. Um, that is subscriptions, it's sas, it's some of the the recurring revenue models attached to some of the hardware that we ship out. And frankly, as I said, we've built up a pretty large order backlog trapped in there is another two billion dollars worth of recurrent with the software revenue trapped in

that backlog. So, um, I think it's gone. Well, there's room for us to get to accelerate that even further. Let's talk about what on this are saying. I like the way it sort of paraphrases it. But City is keeping you want to sell, and City Group is saying that weren't about the order growth remaining negative down four?

What do you say to that? I say what I said earlier, Caroline, it's it was down in the first quarter on a year on your basis by four compared to a Q one last year that was up thirty four, right, and so it's hard to the compare. Point is actually part of why just the arithmetic gives you that. I think the better way to look at it then, is what's happening sequentially? Right when you can't when you've got

an anomaly quarter that we're compared to. And by the way, our fourth quarter of last year, our first and second quarter both had greater than all three had greater than growth. So in each case the arithmetic is gonna look tough. I think the better way to gauge what's really happening in terms of customer customer demand is okay, how did

the sequentials compared to what you've seen historically? And from that standpoint, it was pretty much in line, slightly below, pretty much in line what we've seen as a historical range going from it was our fourth quarter, by the way, to our first quarter that we just announced, So the sequentials look fine. And as I said, it was the second highest Q one in terms of product orders we've had in the history of the company. And to profess City Group doesn't say it's difficult year on year comps.

We thank you for spelling that out for us to go CFO Scott Heron, great to have some time with you. Keep on watching, We appreciate it. In while coming up what's new in the VC world, we'll get the latest global headlines. That's next. And before we had to break a softer tone, apparently coming from one Elon Musk. According to people familiar with the matter, Musk is now attempting to retain Twitter staff is by actually softening his remote

work mandate. This comes as apparently fewer workers are opting in to the next chapter of Twitter. It's a Blomberg. Let's take a look at the top headlines in the world. Adventure have toll VC Giant Tiger Global is raising six billion dollars for its next fund and looking to Morgan Stanley's wealth management arm for help. According to sources, the fun will invest in startups across the enterprise space and tech in Indian staying in that side of the world.

Over in Singapore, I Globe Partners is raising two million dollars for a new fund that will back deep tech. Is the fifth fund for the VC, which is mostly led by women. I Globe was founded in Silicon Valley before moving to Singapore in two thousand nine in invest in startups with deep scientific backgrounds, and finally, members of Dubai and aber Dabby's Royal families adjoining forces with other investors to back London based AI startup the Applied AI

Company that's according to sources. AI Code develops AI products for government, healthcare, and insurance sectors. Caroline, Welcome back to Bloomberg Technology. I'm Caroline Hide in New York. I'm blogs and Ludlow is with me in. Sam Francis go and Ed. Well, that's going to China. Take a giant story and as giant soaring today. Yeah, I'm looking at Alie Barba, the

e commerce giant in China. It's interesting the stock up almost eight percent, right, but it posted a surprise loss, and in fact the loss it posted was the same dollar amount that analysts thought it would record in profit. It's all about COVID zero policy, which is impacting consumer demand in China on the e commerce side, also about disruptions to supply chain, but they're seeing past that. You know, the stock trading at its highest level in six weeks

or so. I thought that was really interesting, as we're kind of zeroing in now on the retail space on e commerce, but then looking to other opportunities. Valley Barber sticking with retail Macy's really interesting. Biggest jump in the stock for Macy's since May, the stock trading its highest level since June. Strong performance for me looking across the Bloomberg tunel. There's kind of two sides of the story.

The e commerce side of the business kind of trading back towards pre pandemic levels, but we look at the role technology played Caro in how they manage inventories. This is a smart company and actually so many different names

faring so differently in this space. I think this is one to watch as we head into the holiday season, think about the consumer, think about retail, start rising, keeping on it's dead as well as it gets an upgrade from SMP and in fact I managed to get a catch up with Macco chairman Jeff Gannett is an exclusive conversation all about digital strategy ahead of the holiday season. When you looked at our digital business back in two thousand and nineteen, it was about of our overall omni

channel business during the pandemic. It was for we started the year expecting it was going to be like thirty seven. It's coming out at about thirty three, so thirty three percent versus a pre pandemic year of so it's still very robust growth. So even though our business was down to twenty one and digital in the third quarter it

was up thirty percent to two thousand and nine. So I think this evolution of the customer omni channel journey and more of those transactions being in digital, that's going to continue. But there is a new baseline that has been established in twenty two versus where we were in twenty and twenty one when customers didn't feel as comfortable going to brick and mortar locations to buy. So what

about that for Cyber Monday, for example? The predictions that is that something you lean into, Yes, like, as an example, we're looking very carefully at how much of our digital business was being done in late October and the first three weeks of November last year. How much of that do we believe is going to shift to Thanksgiving and Cyber Monday, Cyber Week. We do expect a deep higher spike there. We do expect the usual Christmas lull that

goes after that. That first week of December, we go into a lull of two weeks and then it comes raging back more to brick and mortar traffic the last ten days before Christmas and therefore your investment and this is a time where maybe companies are putting back in terms of investing. Are you still looking to be committing money to digital. Is it more about smaller form up stores, our more opportunities. How do you ascribe the money you

are going to spend. Yeah, one of the things I think is, uh, if I look at a kind of the Macy strategy pre and post pandemic, I think one of the things I'm proud of is really what we're doing with our financial strengths. And you look at our balance sheet and really when you think about our capital allocation and the first order of business and capital allocation

is investing in the business. So do your question. We're deeply committed to ensuring that we're top notch in digital, that we've got a modernized supply chain that can accommodate that, that our stores are in great shape, that we're investing in our team of people, of colleagues, um and that's serving us well. So we have not stepped back from that. So we're spending about a billion two in our CAPEX budget in and that's been about our average is about

the one billion range. You can expect us to spend that in future years because you know, retail is about investment and we've got to make sure that we're ready for the customer. However, they're going to change in digital technology supply chain. Are are places that have given us a good return on that investment, mac CEO Jeffkin at that. Now, for more on online retail environment that we are currently within,

we want to bring in Rachel Tendrink. She's general partner and co founder of Red Bike Capital, which invests in early stage growth startups in fintech in e commerce marketplaces. Rachel, it's great to have you here in the studio with us, and a lot of that the focus of Macy's a lot of what they're doing well as their inventory, but how is the build up in other companies inventory gonna affect us from an e commerce perspective as well. Thank

you for having me. I think what's going on is that they retailers had such a bad experience last year where they were so under stocked, they were so desperate. So on the one hand, it was good because they didn't have to discount whatever was there was what the

consumer was buying, there was nothing left. The flip side of that is that this year they've bought sort of preemptively and deeper levels of stock, and what you're seeing is the consumer is feeling the pinch of inflation, so they're out looking for deals, they're out looking for sales, and the retailers can't risk being stuck with loads of inventory after the holidays. Rachel, good to see you said

that pre empts. He talks about pre empting inventories. Didn't Amazon also kind of pre empt the entire season with an additional prime window. Absolutely, you're seeing that overall sales are happening earlier and earlier than ever before. As you said, Amazon started their Prime Day in October, which had never been done before. You're also seeing Walmart doing digital deals. They're doing digital deals every Monday of November and offering early access to their Walmart Plus um sort of prime

comparison um connection. So what you're seeing is consumers are starting to buy earlier, and you're seeing that e commerce brands that started those deals earlier are faring okay. The ones that started sort of Veterans Day, you know, a couple of weeks ago, whereas the ones that are just

starting now, they're off to a slow start. Wait sell What's interesting is with Macy's where they see the difference is perhaps sales falling at the overall Macy's brown sales climbing at the more luxurious and the blooming ales of blue mercury. How are you going to see the different income brackets impact different e commerce players here? So I think that the question it applies to all brackets, and that everybody's making trade offs in what things they're going

to spend in and what things are not. I think that when you're looking at the lower end, the lower bracket, they're going to go for that accessible luxury, but they might look for an item that's under a hundred dollars, so maybe it's a luxury lipstick, maybe it's a luxury, you know, small accessory. So the lower end is going to strive to sort of do fewer, nicer but accessible luxury.

I think at the upper upper end, you always have a certain segment of population that isn't affected, right my price increases, that isn't truly feeling the pinch of inflation. So you see things like LVMH continue to fare very well. Rachel, You've had a pretty storied career at some of the giants of consumer goods retail, but you're now investing on this sort of start up end of the curve when it comes to e commerce. Is there an opportunity here?

Lots of layoffs from the big tech names, people looking to invest in technologies that make them more nimble. What is the e commerce landscape outside of an Amazon. So it's an interesting time inventor, because, um, it's a tough time inventor, and particularly for consumer and particularly for consumer tech.

So what you're seeing is a lot of consumer DTC brands are being very judicious with their spend, not only because they're concerned about the consumer and worried about that this might be a more tapered holiday season, but number two,

they're trying to extend their runway. They know that they need to show strong numbers to their investors, they need to show a positive CAC to LTV ratio, and so they're being really thoughtful about how much paid spend they're using, thinking about how they can acquire customers more cost effectively, what channels to use, etcetera. We want to thank Rachel so much Fracial tem general partner and co founder of

Red Bike Capital. Check her out. Meanwhile, coming up, how regulatory priorities are changing in the wake of the f t X blow up. So much more on this debacle a Bloomberg f t X. Let's talk about it again, because is creating a headache for most, if not all, of crypto right now, let's getting right to Bloemotional Basak as well as Either Capital CEO Brian Mussov and Ether Capital, of course, holding about three million dollars in Ether tokens, half of which a staked and Sanie I want you

to take the first question. Yeah, thank you so much, Caroline and Brian, thank you for joining us. Because obviously a lot of questions around what happens to the crypto universe from here. There's a lot of logic here about DeFi really coming out on top here, but I'm wondering where does that logic hold and where does it break down. I think there's no question that in the long term

we need both worlds. We need easy access points for consumers, retail investors, institutions who aren't comfortable holding the assets themselves or playing around and defy. But I think some people have lost the narrative along the years who have decided to just trust these centralized entities, whether they were um regulated or not regulated here in the US or in

a foreign jurisdiction. And so people are gonna go out, They're going to do more research, they're gonna hold these firms more accountable, they're going to demand more transparency, and there's going to be access points. But they're certainly pain in the short term as the industry, you know, figures out how to go through this turmile and and build itself back in a much better way. As always, unfortunately,

retail often get hurt by this. Well, it's been so extraordinary about the ft X to Barklear is how many very wealthy, very sophisticated investors have also been duped. How is institution investing appetite right now in this space. I think it's pretty safe to say it's it's either pens down or people are going to take a pause on writing checks. They're going to decide to vet the teams, the whoever they're going to invest in, decide if it's appropriate.

I think maybe institutions are going to start to look towards holding tokens instead of investing in the picks and troubles. I've been saying for years that there isn't likely a universe where the centralized entity does really well but bitcoin and ether fail. But there is a world where the centralized entity who's you know, trying to insert agency or rent extraction in between this technology that's all about peer to peer transactions. That's what it's all about, is not

trusting some central authority um. But some institutions aren't able to hold it because maybe there's a mandate internally where they they're not allowed to hold the assets direct and so the way to play the space has been to invest in companies, and maybe they're going to shift their attention back towards the blue chips bitcoin ether take a long view, Uh, the opportunity around staking is very appealing

because you can generate yield off holding that asset. So I think that there's gonna be a recalibration that happens here to us about the steaking in the yield farming and in that respect, the tainted element of that because many would just say, look, it was too good to be true, and thus it was well. We also have to separate that the failure here is not crypto itself. Bitcoin is fine, Ethereum is fine. The price may be blemished, but this is just bad actors, poor governance, central authority.

This happens in traditional finance all the time and there's by the way, there's there's no regulation that can prevent what happened. You can put up maybe better bumpers, better guardrails, but if you had bad actors internally at the C suite, you know, level and bad management and lack of oversight, someone who's nefariously intentionally trying to do something, it's going to happen regardless of what paper they signed and what they followed in a certain jurisdiction. Do I think we

can get better in terms of staking? You know, people again, if they go and they hold the token direct they go and they buy some ether. You know, that's what we've done. An ether capital, the opportunity to generate four to six percent while holding your asset and securing the network, validating transaction you can get on a treasury now like But but they're different things because people aren't buying ether and staking it because they're trying to capture just this

four to six percent yield. These are people who are along the technology. They believe in a credibly neutral protocol that's going to confirm a number of activities, whether it's DeFi, n f t S, metaverse, stable coin movement, and they're saying while I have this low time preference on the asset,

why wouldn't I want four to six percent? You know, yes, it is denominated in that token, but it's a it's an attractive opportunity for you've actually seen yields jump meaningfully higher, and as a banking reporter here for a long time, there's no free lunch. Ten percent is very hard to sustain. Higher than that can be very hard to sustain. How sustainable are these surges and yields? And do you get concerned when you look at a curve pool, for example,

and see I balance is starting to form. So, first of all, the yield has never gone to tend to The yield is a couc reulation based on how many other participants on the network are staking their asset, how many transactions are taking place on the network at any given time, and they're they're paying a small transaction fee to have whatever their activity is validated inside of a block. So the yield's going to bounce around. Whether they stay up at six percent or drop to two percent, I

don't know. I would say though that staking different than going into defy, different into lending platforms, whether they're centralized or on chain offer the lowest risk rate you can get. It's not completely risk free, but it's effectively a bond with the protocol, and that's as as safe as you can basically get other than just holding the ethan looking away. How do you feel? For example, let's talk about actors

in the space for a minute. You have the f t X hacker who emerged with a large stack of ether. When somebody is amassing either at that kind of a rate and you don't know who it is, what are the concerns behind that? I mean the concerns are you have a company that filed for Chapter eleven just hours before that, and how is that authorized? Who had access to the internal controls to allow a wallet to move hundreds of millions of dollars out of the exchange? I

think Defied did its thing. If you stayed up on Friday night, uh, I think it was Friday night like like me, because it was wild to watch in real time on Twitter, the entire community following those assets as they were trying to be moved through various protocols and swapped into different assets, different funds. People still don't know necessarily who it is, but Defy had that transparency in time will hopefully find out who that was. Um, it's

very difficult to hide in this space. And again, when they try and touch some centralized exchange to cash out, whether it's now or in the future between on chain analytics and k y C that's been put in place, they will be brought to justice. Understanding that the space is going to be volatile for a while longer. What is the risk to the downside here? The risk to the downside is that retail investors and institutions that were just warming up to the asset class have been spooked.

They're not sure what a credible access point is going to be. Uh. Certainly, f t X was one of the most trusted brands in the space. SPF was a face who was often seen in the media talking about crypto, talking about regulation, and so people are going to go back to the drawing board, do their homework and decide again, do they want exposure, do they believe in the technology

long term? What's an appropriate access point? Do they have some transparency on how they do custody, that the customer funds are segregated, and so again, the industry will emerge better because of this, But there is potentially a lot of downside still to come, as whoever does, whoever does need liquidity in the short term, tries to sell their assets. Bumping right ahead, But I'm liking going along. Homework E Capital CEO Brian most Off, we thank him, We always

thank her. I paid Dallas for them, blue checkmark in the staff that would leave this earth. My job is done, and to that, my job is to entertain you. That, of course, is the opening of the Tonight Show with Jimmy Fallon. After the hashtag r I P Jimmy Fallon was trending on Twitter, Fanon asked Elon Musk to address the false tweets. Of course, Musk replied, wait a second, how do we know you're not an alien body statue pretending to be Jimmy say something that only really Jimmy

would say. Ha ha. Now, Twitter is of course putting up safeguards to flag tweets with misinformation, but we laugh at we find it perhaps amusing. But this is something bigger. This is something that isn't amusing. This is On not being able to control the narrative about themselves. This is about corporate s now. We don't understand whether they're really

blue check or not some sort of impostor. This is about looking towards November the twenty nine, when that new payable subscription service does get unfolded at Twitter and whether it really works. None of it works, and the chat show host had to come out and prove his own mortality as a consequence, I'm looking at Taylor Swift. Taylor Swift is taking down ticket Master, so to speak, and

she's not alone. Representative Alexandro Cassio Cortez and Senator Amy Klobshar are calling for ticket Master and parent Live Nations be broken up after Taylor Swift fans face technical difficulties right trying to obtain tickets for Swift's latest tour. Breaking news by the way, ticket Master has now canceled plans to sell those tickets to the general public this Friday. I'm afraid the Swift is just going to have to shake it off. What I don't understand is, like, whose

fault is this? Right? You have the lawmakers on Capitol Hill saying this is about the platform, We're gonna have to break it up. You have the fans saying we just want to buy tickets insatiable appetite. You have Swift saying I'm the problem. It's me. This is chaos and it's got everyone talking the big picture carriers. I don't have a ticket and I'm not going. You're not going? Do you want to go? Ed? That is a key question.

Were you one of the ones who were amid the flood of billions of people trying to be accessing it all at exactly the same time the fact that Live Nation is trying to blame just the ultimate popularity of Taylor Swift rather than their own systems. Yeah, look, I like the new album Snow on the Beach. Not sure that's about but it's chaos. And what I read one stat real quick, almost three point five billion, not million, billion people trying to access the hot site or hits

to get tickets. It's chaos. It's chaos. Do you like the new album d No comment? No comment. He's got some he's got big thoughts. Take them to Twitter, to take them to Twitter, because we're on Twitter. And that does it for this additional bloom Beg Technology Friday. Right on the studio, of course, we have Grinder CEO to talk about his first months on the job, how the online dating industry is emerging, post pandemic, but go check us on social media. This is Bloomberg