Well, good morning ladies and gentlemen. Welcome to GM Web 3. This is going to be another Mando takeover for Rock is on a on a private jet apparently on its way to Marbella right now. So we have OSF who decides? We have bananas tunes, The show began and we have Cows. This is the full Canary Labs lineup right now. This is basically like our morning meeting. We're going to go through the top five things is kind of what
we were doing before. That was a CCI, don't know what do you think it was indicate indication of girth. Anyway, we are sponsored by Kraken NFT today. They're obviously pushing show for a while. Go check them out, cracking.com/radio. They are doing their own NFT marketplace. There are some news actually yesterday that they are also going to move into stock trading. So they are going to become the Robin Hood of crypto, which I
think is pretty cool. So stock trading, crypto trading and NFT trading you can do, you can do everything over a crack and go check it out. We use them at Canary a lot, right? Should we get into things? Obviously it's been a bit of a better day. Today it looks, it looks like we've got some big green candles, which is looking good. Bitcoin is sitting at just over 2600 right now, E at 1630. Everything's having a little bit
of a little bit of a mini pump. Some of the some of the meme coins, alt coins are having a bit of a move. It didn't feel like that yesterday. I think we had a bit of a pump in the morning. They were doing the show. Everything sold off. Just when Gensler was talking. We'll get straight into that. So what? He actually said. Honest. I think he looked kind of like an idiot. Again, he went in front of. He definitely got grilled this time.
So there was a bunch of senators, I believe, and congressmen who basically grilled him for what he was doing, saying he needs to come up with some more legislation. He was grilled about, firstly, about whether Bitcoin was a security. Um, he he kind of trying to squirm out of it, but eventually did say that Bitcoin is not a security, but he wouldn't class it as a commodity. He then went on to kind of say that tokenization of an asset equals securitization of an asset.
So he was asked is our Pokémon cards security? Which he said no. And then he said our tokenized Pokémon causes security. He basically indicated that they might be. So his view is basically that tokenization equals securitization of any asset, which seems kind of wild and. All over the place. This logic is all over the place here. Have you have you seen this? Gary Gensler has an identical twin brother, Robert Gensler. I thought it was like, I thought
it was a shit post. At first I thought this was like a deep fake. But it's true. All of this is true. He has identical from brother called Robert Gensler. This reminds me of, you know, like draw. He had his son working on the Bond desk in in Europe. Like he's really involved in the industry. I think it's pretty funny, but yeah, Gensler. I think a recent photo. Is that how badly Garry's aged? Like that must that must be a. Striking guess is not looking good.
Let's be honest, I don't think he's had a good few. Give a few weeks. Good few months probably, given how all his recent court cases have gone. But yeah, what did you think? Firstly, let's get into the let's get into the most ridiculous thing. Is tokenization equal securitization? Like if I owned any asset, let's say I'm sitting in a room with a TV and a lamp shade. If I tokenize the ownership of either of those things in a physical world, is that
securitization? Do you think the asset itself has to have some sort of intrinsic quality for it to, for it to be classed as a security in that world? Or yeah, what do you think of this? The the spirit of A. Security is to protect people from protect people when they're making investments. So it's this idea of like a promise of a return or profit share like et cetera, et cetera, so. Just like tokenizing any asset doesn't necessarily.
Deem that asset to necessarily be an investment, but then also there's a question of like why would you buy it if you didn't think the price was gonna go up. So it's a it's a bit of a grey area, like I think, like the act of tokenization itself. Shouldn't make something a security, but then it probably creates characteristics of that underlying asset that make it very similar to security and make it open to.
A lot of the abuse that you see of things that aren't security, that should be security, so I don't know as much. Couldn't couldn't you argue that any man made asset, any man made asset essentially has some level of work being done to it. Buy a company. Let's say any asset made by a company of any sort and its value could go up like that. Does makes any product made by a company potentially a security?
I think his his his whole definition of it was around like expectation of return on the on the like effort of others which he thought tokenization kind of encapsulated that effort. But like people the company has gone to effort to make the Pokémon cards in the 1st place. I think his like definition of effort and where that's allocated is like very non logical like this would definitely not hold up in a court of law. There's no way.
In my mind he's just like anti tokenization and sees that as kind of like. Creating hyper financialized assets regardless of the underlying, I think and that's why he's anti it. But the logic would not stand up in my mind. So maybe let's take it a step further because yeah, I think you guys are really smart. What would you say is because I agree with what you're saying Cali, which is that you can't just tokenize everything man made like crypto allows you to tokenize any asset like we
could. Technically if I want to have exposure to TVs or I won't have exposed to any the value of any of these things, I could essentially tokenize them and that could be seen as like me owning that file like almost a derivative ownership. Would you say is like? Where do you draw the line on? This should be a security if it's been tokenized. Because I agree with my work, the idea of a company doing. Work equals not security.
It's not fit for purpose. I think it's the idea that the company is guaranteeing your cash flow or a share of profits or something like that. That's what it has to be. And that's what it was intended to be originally. Yeah, because like the profiting from the work of others is where you like, you know, you invest in a company and other people work to grow that company and then it becomes worth more and then you sell the shares. That's where the idea of that
comes from. Is from, like very early definitions. Around the structure like corporate structure essentially. And the corporate entity is not fit for purpose on a tokenization of a single asset and it's totally the wrong way about thinking about it. I think it's all about cash flows personally, whether that's ongoing over the life of the asset or it's at the end of the asset if somebody is saying we will guarantee it or we will.
Yeah. We're going to engage in some enterprise to make the cash flows increase and you're going to get money from it. And to me, that's what was a good is. I agree. I think, I think that's it. The Securitization Act, I don't know when it was originally written, but it was like 1920 or whatever it is, it's completely outdated.
And now we're testing it because we can now suddenly basically allow for many different things to or the ownership of many different things to trade more seamlessly with things like crypto. And I think it has to be some sort of cash flow. Like if you're Pokémon cards gave you access to revenue from the Pokémon Company, then that would make it a security in my eyes like in some way.
But if it's just like just an item that is being created by a company and that item might go up if the brand value of that company goes up, that's not a security in my eyes. And I think that's where he's he's just, he's just massively overreaching and he just looks like an idiot like for doing it like. So the idea that everything in the world should be a security and should be under the remit of the SEC is just wild. I think that was the main thing.
I came away from me. He's just, you always say it Cally, he's just power hungry. He's just, he's just lost his head with where he thinks he should be able to have power. How hungry. Bureaucrats overstepping their remit is not anything new and probably gonna be around for a while too. But so they'll be another one. And they might be more friendly or less friendly and he'll go to some other stupid bureaucratic job, but. Yeah, we're doing a little mini pump here during the show, boys.
Bitcoin looks like it's about to head to 27 K If looks like it's about to head to the 1645 and put on some levered trades yesterday. Just thinking of beauty. So things are looking good for crypto today. There is a bit of happening across the board what you have seen and we'll move on to the second point here which is what's going on in the ETFs. So give it a bit of a broader time. Yesterday there was a delay again in some more of the Bitcoin spot ETF.
It now looks increasingly likely that the ETH futures ETF, the futures ETF will be trading next week and kind of with the half blessing of the SEC. They seem to be OK when it's a derivative of something to be able to class, it's an ETF. So if BTC is in, the ratio is actually reversed it looks like over the short short term over the next week. So you're gonna get positive news here for for ETH if that
futures ETF trades. Remember a few TCF won't meet won't mean buying up the spot, it won't mean you go out. There's gonna be massive buying of the spot contract because obviously the features that stuff is levered. So it probably is not going to be as people have said for the Bitcoin ETF, you're gonna see $20 billion move into this
industry with the futures ETF. But it does seem to show a bit of a softening in the stance of the SEC, or at least their ability to block this sort of stuff is becoming increasingly incredulous. But yeah, that's a positive thing and we seem to be bouncing off it. We've been outperforming for a while, like even in that set off yesterday we've been outperforming yesterday. It really looked to look pretty bad.
I think bond yields hit 4.6% on 10 year, oil is at 96 or Brent was at 96 at least and then you had the dollar, I think it's been up for 11 weeks straight. So we're having a bit of a reverse today and there's already been some positive news about Bitcoin and ETH. So yeah, what do you think? Do you think for the next, for the next month, is this going to be October? Is it is is October gonna be happening next next month? It's, it's October. Yeah, it's. Most of 30%, isn't it?
Are we really trying to still pump those bags? Just a slip of the tongue. There slip the slip of the tongue. Ohh it was having. A good day? No? It was nice. Let him have it right. Just let him have it. So definitely. It's a. Matter that's down 300% the last few days. It's not. 60% today, alright man. Lots of these coins having to move some of the some of the ones that were talked about for
a while local in ruin make. A welcoming this seems like the most obvious short to me. Does that make myself like but it's but it's been a bit of a short squeeze and they seem to be signing up half of South America at the moment. So crazy amount of adoption in certain geographies. So I'm sure all those people are gonna hold it forever and use it for useful things, not just dump it for dollars. But well, we can get into point #3, which is AI, and Sam Altman
obviously is the. Hallie loves the. The most valuable nonprofit ever? Isn't it the most valuable nonprofit ever? Elon Musk got destroyed anyway, Quite a lot of changes. Well, quite a lot of news happening in the AI yesterday.
While a lot of the the major tech stocks were lower, particularly Apple was lower, there was a rumour which seems to be more than a rumour at Open AI is looking to raise a billion dollars with SoftBank which is the go hard or go home tech VC collapsing track records for those. Of banking at the top. It's so classic. Then they go, they're going in at I think the last valuation for Open AI was 20 billion when Microsoft put in their money 20 or 30. SoftBank have going in at cool
90 billion. So they've decided they want to lift one about 4X from the last valuation 3 months ago, even though ChatGPT use itself is down, as Kelly says, and they want to start to develop a phone, it looks like. So they want to develop the AI phone to challenge the iPhone.
That was the big headline. This is obviously developing SoftBank. As we've said before, like whenever SoftBank get involved in something they're involved in, we work, they were involved in the recent ARM IPO, they've been involved in. I mean the guy who runs it obviously Sam, he basically did his nuts in 2001 tech bubble, but then managed to own a few companies which did incredibly well. I think Alibaba was the main one and he's basically. The main player here.
Yeah, And he's gonna do it again. He's gonna lose all his money and go for it again. But he's he's been on the coast trying to be on the cusp of tech for, for a while anyway. He's gonna try and get involved. 90 billion for Open AI. What do you think? Feels toppy, doesn't it? Well, you get it. What are you gonna do 10X on that hundred X? Like? Yeah, sure. They'll just be the most like valuable company ever. Like. Although one thing I would say
well apples worth 2.5 trillion. So yeah, for about 2 trillion. The 20X. Is the big issue? Is the video be? Worth more than Open AI and Open AI caused the NVIDIA Rally. We're going to look back on six months and just realise that all of this is like so toppy. I think I do one one I think AI is. I think it's not toppy. I think it's like, you know what it's like the Internet and like. I don't know like. The Internet was still toppy in 2002, right?
All of those were like how whatever percentage of those companies went from a a big valuation to 0. So do we still have the Internet and it could be the same here? One thing I would say is that I actually think I think more and more that apples spot. As like the go to hardware and then go to. Kind of desktop OS or whatever for like people who are not corporates who use Microsoft, I
think that's up for a challenge. There's no innovation or there's very limited innovation happening at that company in between product cycles. It's so mature. I think it's probably bloated. Every corporate, every massive corporate goes through this phase of like the initial and have found a phase and then that energy would dies in Waynes and I think Apple is going through that right now and I think. Is probably as ripe for being challenged as it has ever been
currently. I think that's bad for NASDAQ. Generally. So yeah, that that, that one piece of this I actually believe in. I think that's very fair. I think Apple has a dominant, I mean, it has like entrenched dominance things like the App Store and hardware, But a lot of people have tried phones and it hasn't really worked. Are you really gonna buy a phone from Sam Altman? He kind of scares the crap out of me. No, exactly right. Exactly. He's now Steve Jobs, right?
Anyway, the other piece of news was that that there are other tech billionaire Zuckerberg. He came out with new ray ban glasses. Have you seen these? These are these new glasses that their version basically of the of the wearable tech market. He did a let me see if I can get it up. Or maybe over you can. You guys both in the same hotel room right now, just like you're in the bedroom? Yeah, I was in the bathroom.
That's, that's correct. Bathroom on the balcony, Yeah, I mean you can see the reflection, but kind of a weird bathroom pieces sitting. Sitting it's on the toilet doing the show. Yeah, no, yeah, that's not what's happening. But the yeah, that was with the show. Now I just actually can see Carly, like how that might look like. It looks like it's like a window out. Anyway, yeah, he and he's and you're gonna get AI tools now. Coming to Facebook, Instagram, WhatsApp.
So all of these texts Bros, big move into AI. No mention of the Metaverse anywhere. Um, what do you guys think? Is this? Is this everyone chasing the latest trend or is this is this bigger than the Internet, Carly? The only AI tool we need back is Clippy. What do you mean the guy from Microsoft Word? Yeah, Clippy, yeah. Yeah, OK, I see you're writing a letter.
Do you need help? There was there was talk about him coming back because now that they could give him a I, he would actually be smart and make good suggestions. But. Yeah, look, I think it AI is not a fad. It's just an increase in kind of. Competing power, I guess, And what what's possible with stuff? I don't know if it's this like. Kind of. I don't know if it's going to have this transformational impact that a lot of people think it will, but it's definitely an increase in what
people can do with computing. And so all kind of software manufacturers and hardware manufacturers and everybody if they're not. Exploring it and playing with it and. Integrating it into their products, then they're gonna fall behind. So you kind of have to chase it, but I don't know if it's a fad or if it's just like one of those. It's like upgrading from. Like previous iterations of chips and new iterations of chips, it's just something you gotta do while you're gonna fall behind.
Have you seen the terminology that they've started to use? So Sam Altman's been called out on this quite a few times because he keeps on referring to taking a I to be the median human, keeps on referring to people as like a median human, as an on your spectrum of intelligence. And everyone's like, this is like a really creepy way of describing people. Like the concept that we are just like, oh, you're a medium, or you're a suboptimal or you're
above optimal human. He gives me the creeps big time. He's not a real. Test you see, he's he's something. Something yourself. Would you class yourself as a median human? What about? Yourself. I don't even know. Yeah, you're amazing. Yeah, that's all. Hope he says. He basically wants to help replace the median human in the in the workplace. Can you imagine if your boss came to you and said, yeah, we're gonna replace you because you are not. You don't quite make the median
human. So we're bringing in AI bot to just it's just above, above median humans and just bots. Yeah, I thought I saw a thing the other day. They're doing that on the in the police force as well, bringing like these these AI bots to like replace policemen. That way on the streets, yeah. So they they they already had like the, the dock. They already had like the dogs, you know, like the, the. Dog Ohh yeah yeah, the robot run
into buildings. The run into buildings and save people and actually like, who the fuck knows what they're doing with them? They're bringing in these other ones which are meant to, like, replace people in, like, the subway system. And I mean, if you're a policeman, like, why not? Right? Like, imagine being a policeman right now in America. Must be pretty tough. So the. Idea of yeah, they need all the help they can get. Bringing in a a I bot kind of feels like, why not?
It's probably gonna be easier for your life anyway. Bots are going to start replacing median humans across the workplace. Yeah, just bow down to them. Let's hope we are all above median. What else did I put as my main points today? You guys got up to last night. We went from, we went for a romantic dinner. Like every single time, me and calling out for dinner, they always ask. It was like, oh, it's so romantic. Here. Carly makes a really awkward
joke, like we're not together. He's always like, yeah, it's a really romantic spot, but we're not together. And they didn't even ask. Like 2 guys can just go for dinner and it not be a day. I didn't say that, but whatever. Content of the show. We're we're not together, but we are sleeping in the same double bed. But we're definitely anyway. The next points I have for the show were Xbox and GTA for to have crypto. There are two rumours at this stage.
So the first rumour is that Box has been exploring A crypto wallet for or sorry, Microsoft has been exploring an crypto wallet for Xbox, which in my eyes would be huge. I think they have hundreds of millions of users, Xbox as in users even of their monthly subscription platform and the idea is that they might be integrating web 3 wallets.
We already saw things like Meta Mask of Gone to try and integrate themselves in the gaming infrastructure with things like Unity, but they they also might be making their own. And then the second one was that, was that what we're gonna see a token potentially in the new GTA6 games. So GTA6 has been out for in development for nearly ten years now. I think that's when the last GTA5 game was out. Everyone's been like, when the
hell is this thing coming out? People have said maybe 2024252025 is the most likely, but yeah, they could bring in a token for GTA. Some like talk about digital collectibles, but what do you think? Is that where we get the aha moment and we bring on just hundreds of millions of users? We have the coin. Well, the base guy yesterday saying what's going on, a billion different people. I mean, GTA, how many people play GTA? It must be hundreds.
Of millions played online. Did you guys play GTA Online? I never played it. I was like, online. I love the game. I never played it online. I think it was. Maybe a different segment of the market to the Call of Duty guys. First person versus third person, I guess, but. But yeah, I I didn't actually know it had an online game. But everybody loves GTA. Everybody Loves is kind of like a second life where you can do whatever you want. I don't and like it's it's so
much. Change going that people, yeah. Well, yeah. That's what people used to do. It's just so matter of fact. Well, yeah, yeah, that's what I do like doing, yeah, I think. But like it seems like a game which would suit a. Currency because there's money involved people. Exactly right. It is proper. If we talk about what is a metaverse or what people, I think most people would think of
things like GTA. You have basically a second life where you either choose to change or people you don't and you would want to have money. That's that. Yeah, yeah. Well, like there's, I don't know, there's just a lot of freedom in that game. So there's freedom to like set up your own missions, pay people to do stuff for you, do your own thing, earn money and prizes, earn kind of like go and explore and find the fighter jet and then sell the fighter jet to somebody.
The scope for economic transactions in a game where you can do whatever you want is obviously bigger. So and and it's probably the game and everybody loves it for that reason. So it feels like. If they have a token, it would be super interesting. I don't know how that and I guess maybe that this couples with the Xbox news, because if you know it's pretty hard for
GTA, have a game. That runs on other kind of hardware and or software and then plug their crypto well into it. So maybe that's where the Xbox wallet kind of story is also coming from. Yeah, look, I think we had, we spoke about gaming a lot yesterday on Rec Radio and I just feel as though increasing them just like we should just build the infrastructure for existing games rather than having to build our own games.
Like we don't need to bet on some web three-game being popular, we can just integrate with crypto rails onto something like GTA or CS GO or any Xbox game. So if they just these sort of integrations I think are the ones where gamers might not hate it. What they hate is that you try and force this. Like we've got a blockchain game with NFTS and a coin like you've gotta get involved because you can get earned $10 a day if you say you just play the games that you play right now.
But we're just gonna make it slightly easier for you to on board and off ramp cache and trade stuff slightly easier. I think that's how they start to accept it rather than having to force them to be like oh, you're going to like this game because it's a three-game where you want $10 a day. So I think this is super bullish. This is how you get hundreds of millions of users coming into into the space. I would say the GTA rumours have
been around for a long time. They were very, very prevalent when NFTS were going massive about 18 months ago. I would still put less than 50% probability that Rockstar takes this risk on the game because I think it's still like it's still be a big risk for a game which is just like a surefire bet like this is like 10 years in development.
They really want to fuck it up. But I could very much see potentially with time they bring out token or they see how it goes and then look to do it as the game develops. So I think it would still be a risk to do it at launch, but that would be when I start to get really bullish on adoption. If you can get integrated like we've already seen, Telegram now start to try and integrate crypto. This is a huge app, 800 billion users.
If Xbox does it. Sony's been a bit more vocal about it, doing it like Microsoft have been, if you've been hearing the comments, the Xbox team, the Microsoft team, they've been, they've been kind of pouring cold water on NFTS and crypto, but it's only been a bit more positive if Microsoft do it as well, like it would be very big.
I think Microsoft has been sailing closer, other playing it safer, shall we say, because they were trying to get the activation thing through various government entities, right? So it feels like, you know, they've got other things cooking and then so they can't maybe speak their mind or? Push the boundaries as much as maybe they want to. I think one thing I would add just on top of that, I agree with everything you said. Rocks that I've got like this.
Kind of brand image slash reputation for like doing quite controversial things and I think this could be one of the. By coming crypto and like everyone hates it and they're like, yeah, we're gonna do it and you're gonna love it and then that's how it works. You're muted. And me weird. Speaking of gaming, the other side, Legend of the Mara was released yesterday. I don't know if you saw this. I actually kind of, like replied
back to a tweet. I don't know if you saw from UK Labs, but I'm not really following what's going on and when I read some of the tweets I'm just like I realise how far behind I am in what's going on. In Legend of Tamara it's It said we encountered an unexpected response from the volume of folks playing Shattered Defence. We have stabilised the camp game but needs some time to investigate. Shattered Mode Hunters will still make progress against
their foes during this outage. Hatching cannot be done via delegated wallet and must be prompted from a wallet holding the vessel. And I was like, what? I don't understand any of this stuff, not even one term that I understand from what we said there. But I'm behind clearly. I think that's that's partly just like me not paying attention to the Mara game, but it seems to have been well received.
But it's clearly this whole new thing like Legend of the Mara is going to essentially be like a staking mechanism it looks like for the for the land until obviously the whole thing is built and a gamified version of that. But that was released yesterday. Go play it, go check it out. I think there was. Obviously there were some difficulties in the initial launch, but of what I've seen, people seem to like it, but there's not that many people
playing it, it seems. But that can always change. Many people playing many web three games, but the the other thing is that they move to block OpenCV and Blur and this is the first time there's been a new Uglass collection and it blocked open C as well as Blur. They said remember a couple of months ago they were disappointed with what?
Open C Dublin trading fees, new collabs I think accounts for something like 8070 to 80% of all the trading fees over the last 24 months for for these guys. So it's very high, maybe don't send me 80 but it's like it's above 50%. What do you think? Like if you are running Blur or for Open C and you're already seeing NFT volumes dip a lot and I think that's very, very, very highly correlated to trading fees and greater royalties.
And now you see one of the top or the top creator of NFTS coming in and basically blocking your platform for that, for that strategy. Do you think that if I'm sitting there opening blur I might decide to change change tactic or are they just going to put a big FU to them? Thank you if they. Do similar volumes again. Then perhaps yes, the problem is now because the volumes across
the IT market is so low. Overall, it probably doesn't have much of an impact, but you know before you go do your turn volumes when you have the new releases, it'd be super active and stuff and it was generally profitable for marketplaces that charge marketplace fee, so. For now, I don't think it makes the move, but you know, let's say there's a brand new collection that someone is doing and it's going to be trading a
lot. You would think it would make sense for one of the marketplaces to actually honour royalties to use them. And it's funny because like, remember the first two platforms that. Didn't honour royalties were like pseudo swap and then X2Y2 and now pseudo swap version 2 on his royalties next to what? He does also honour royalties and it's almost like there's like not having royalties gained you more market share, but now everything's no royalties. Does having royalties getting
you back market share? And I think if you had Someone Like You go, if you had a big collection that you knew would do a lot of volume on the break, you could sign exclusivity with them. But we will unlock royalties for your projects for this whatever you come do it with us and no one else. And maybe that's what's. Maybe that's a potential outcome here. I think that's I think that's a highlight.
Yeah. I think now as some of the older projects become less, less in trading fees that they they start to slow down but the production houses start to put out new entities. I think that it will start to swing back to these production houses and it's going to be a competitive advantage for people to align themselves with trading
fees again. So I think we'll probably we'll probably get closer to some form of an equilibrium where where trading fees start to return to the market and I'm really bullish about that. I think this whole space is driven by incentives and I think you'll see more innovation, you'll see more people come back. Obviously you'll see some of the hyper narratives that you saw during the bull market, but I think you need that also to have the good stuff that's come from it.
So yeah, I think, I think we will, I think that's really positive for the market. Anyway we will end it there. It's been 40 minutes look like cryptos have kept going higher during the chat, looks like bitcoin's about to hit 27 KE for might be hitting 1650. So good day. One of the better days we think we've seen recently and yeah, we will see you again tomorrow. We have been sponsored again by cracking. Go check them out Rug Radio, sorry cracking.com/radio and we will see you tomorrow.