The Great Unwind

that changes the world. And while changes happen over decades, UM, a lot of times when you're looking at it so close, you don't really see the changes, but if you zoom in, you can see them all around. And that's exactly what I'm doing today, trying to bring to you the best education, the most up to date news, UM, and uh, some interesting people to hear from, so you don't have to listen to me all the time, so you can get

some different perspectives. But uh, there is so much news going on in the big thing that's going on really in the bitcoin crypto space is um, let's call it the Great Unwind. Maybe I just made that up. I don't know if I've heard that before, the Great Unwind, but that's exactly what's happening the leverage, and that's the keyword. Leverage that's been built up in the system is now de leveraging went from leverage to d leverage. Now leverage is is a tool. I like to say that leverage

is like a fire. Leverage is like fire. So leverage could leverage like fire. Fire could be used to warm my house in the winter and I could save my life. Um or it could burn my whole house down. And that's sort of like what we're seeing. So we could call it a double edged sword. It can cut my enemy, it can cut me. I have to be careful with it. And so that's what leverage is. Now. Leverage helps us to grow faster, that's the positive benefits of leverage, and

then it tears us down faster. So a couple of examples of this would be, um, let's say that my business is booming because the FED printed a bunch of money and I have a way more customers than I ever had before. More people want to fill in the blank whatever kind of buy and us. Let's say I'm a home service based business. So people want to remodel their homes, they want to buy new mini blinds, put jacuzzis in remodel their bathrooms whatever, fill in the blank, X,

y Z, and so, shoot, man, I'm booked out. I can't get to the appointments fast enough. I hire new people. I have to buy new trucks. I get a couple of new trucks to get the new people in there going out there. I gotta buy a new equipment to get these things built and serviced and installed. Business is booming, it's never been better. And in order to grow faster, to keep up with that demand, would use leverage. The leverage would be credit. So now borrowing money, I'm using

credit lines. I'm using leverage to buy those trucks, to buy that equipment. And of course it's great because all this new business is making up way more than what those payments are on those trucks or that new office or that equipment that I had to buy. So you know, I bought a new machine, it's a hundred thousand dollars, my payments whatever, five hundred bucks a month, but it's making me five thousand dollars a month. So it's like, hey, I'll pay five a month in debt to get the

five thousand a month it's making me. That's great, And so that leverage. That debt allows me to grow really fast and keep up with that. But the problem is when the market shuts off, my phone is not ringing and I'm not getting new customers, and that machine is not running. How do I afford to pay for all that debt? And just as fast as it built up, it gets wiped out. All the debt just evaporates and

it clears out. And that's exactly what's happening um in all the markets in UH, in the stock markets, in the housing markets, but it's specifically been really, really painful in the cryptocurrency markets. We've been talking about this for several weeks now, and really we went super deep when we saw Tara Luna meltdown. Tara Luna was supposed to be a stable coin. I'm not gonna go super deep

into this. I've already broken this down. You can go check out Mark moss Um podcast, Mark moss I Heart Mark moss Podcast, and you can find all my back issues. So dig back a couple of weeks, just go through. You'll see where I talked about Terry Lune. I broke down the mechanism, how it worked, how they use leverage to build it up, how it was like a Ponzi and how on wines. But the problem is as Tara Luna unwound, which I was about a sixty billion dollar

valuation at the time. Now to put that into perspective, you remember the Great Financial Crash, you know, two thousand eight, the Great Financial crash, you know, when the entire global banking system was basically crashing at the same time. Well, if you remember that, um, there was a spark that really led to that. Of course, that was Lehman Brothers. Lehman Brothers went bankrupt and Lehman Brothers was worth about sixty billion dollars at the time, So we're talking about

about the same magnitude. And what happened when when when Lehman Brothers went down, all the other banks that were caught up with I had loaned money. There were also caught up, and then they started coming down because of the leverage UM and that's the collateral. So they loaned money, they had it on their books as an asset. When that money got written off, then that collateral was no good, so they got margin calls, staded to post more collateral.

That went down and it triggers a domino effect and that's exactly what happened with Harry Luna. As we've been covering this each week, right, So then we saw Ary Luna go down, and then it was like Celsius is going down. And then when you talked about like three arrows, capital starts going down and it's it's the Great unwind.

That's what we're dealing with. And it's all because of leverage. Now, um, we're still processing through this, but this is probably uh, you know, obviously a lot of this, the Great unwind was kicked off, was ignited because the FED is trying to do a great unwind. So the Fed, the Federals over there States is the greatest, the the producer of the leverage. Right, that's where it comes from. They print money.

They print trillions of dollars and put it into the system, which causes the housing market to boom, for example, and then they drop interest rates to zero. So you go borrow a bunch of money, you use a bunch of leverage. That's what creates the booms. They print the money, they lower the interest rates. You go use that leverage they've provided to you, but then they decide when to suck it right back out. They decide when to shut the music off. So then they stop putting money into the economy,

and then they raised the rates on you. And so that's what started this great and wine that that started was November of last year. The FED said they were gonna start raising rates, They're gonna start letting assets roll off their books. They weren't gonna pump money out through quantity of easian anymore, um. And so since then we've seen the cryptocurrency markets really start to unwind. Now the cryptocurrency markets seem to lead the rest of the financial markets.

So I think that bitcoin specifically and crypto overall um really is kind of this canary in the coal mine where it unwound way faster. So bitcoins started rolling over really quick and started selling off much before the traditional financial markets did. So the FED kicked it off. But then as as the bitcoin and cryptocurrency markets capped started falling, then that's when the that's when the Terror Luna got

into trouble. It worked really well when bick And was going up in value, but when Bitcoin went down in value, Tary Luna got into trouble. When Terry Luna got into trouble, then Celsi's got into trouble, etcetera. So here we are dealing with this, and it's been a massive drag on the bitcoin and cryptocurrency space because it's basically causing massive liquidations, meaning they are being forced to sell huge amounts or

pretty much all everything. They have. Huge amounts of bitcoin and ethereum exce are onto the markets at the right time, at the exact same time. So supply and demand. If you have more bitcoin being sold or more crypto being sold than there are buyers for it, the price will come down. And so right now with the markets, all the markets crashing, the entire you know, from real estate to stock markets, do you name it down. Crypto of course is way down. But then you have to dump

all of this on the market. There's not people to buy. It's what happens to the price. Of course, it comes down pretty easy to understand. So I think it's been like I said, the carrying the coal mine, I think it happened first, and I would think we would be maybe at about the bottom about now. But man, the hits just keep on coming. So let's talk about some of those hits that keep on coming. So um, like I said, uh, Terry Luna has done. That's over UM Celsius.

What's going on with Celsius? So UM. As I've said before, maybe there's a chance you get some of your money back from Celsius if you're really lucky. UM. They are working with UM, you know, bankruptcy attorneys right now to try to wind this down. UM, there's a potential that you might get some money back. I wouldn't hold your breath over it. But we saw this week f t X Exchange that has basically come into kind of be

like the FED. They're like back stopping all these crypto institutions. UM. They looked at Celsius and they made some shocking claims that you may not like. I want to tell you what that is. UM, But they also stepped into back stop another really big, actually two really big other crypto companies that are getting hit. And you won't believe the deal they made for this. I mean it is insane. I guess this is what you get into bear market. Maybe you can follow f t x's lead. I'll tell

you what that is what they said about Celsius. I'm gonna tell you about the other deals they've just made. UM, And I got a whole lot more coming up. You're listening to the Mark mo Show, talking of course about the decentralized revolution, talking about bitcoin, cryptocurrencies and breaking down the play by place so you can take advantage of it. We'll be back with all that and more in a minute. Don't go away, all right, Welcome back. You are listening

to the Mark Moa Show. We're talking about the decentralized revolution, the world that's changing before our very eyes, being led by the catalyst of bitcoin and cryptocurrencies. We're talking about the great unwind, the great unwind, which is uh, the leverage in the system melting down. I went through that.

I'm not going to go back through that again, but I was saying that f t X, which is led by Sam Bankman Freed, he's kind of stepped up to become like the Federal Reserve back stop, the Federal reserves,

the backstop for the banks. So um previous to the feder Reserve in the late eighteen hundreds of United States, we had an era known as free banking, and you have all these different banks popping up, and each bank would have their own currency, and they're going they're going bust all the time, and so the Federal Reserve was created to say, hey, we'll backstop these banks, so if they go bust, all the people that have their money there don't lose at all. Um, we'll come in and

we'll back stop them. Now that's a whole different story. I'm not gonna get super deep into that, but f TX is doing something similar where now they're coming and they're back stopping a lot of these companies going down. So celsius Um, they were potentially going to do a deal with celsius to backstop it that maybe at least help some of the investors get their money back or something like that. And we saw this week that f t X passed on a deal to purchase celsius due

to a deficient balance sheet. What does that mean? Deficient balance sheet? Well, they didn't like. They didn't like what they saw when they pulled back the covers. It says uh FTX passed on to purchase leaguered crypto lenders celsius Um, but walked away on account of a two billion dollar hole in the lender's balance sheet. A two billion dollar hole.

Where did that two billion dollars go? Well, a lot of it was just wiped out in market gap Um, there's rumors that potentially the founder of Celsius, Alex Maschinski, might have been siphoning money away. UM. I don't know if I want to feed into these allegations because I don't really have any proof on it right now. But we do know that FTX is backstopping a lot of companies. I'm gonna go through a couple of them right now. UM, but it doesn't look like they're gonna do with Celsius.

They walked away because of a two billion dollar hole. So again, if you have money there, there's a chance you might get some back. Now. I think the way that I've been understanding this is there's two ways you could hold money on Celsius. One you could have it with a loan, you could have it earning yield, or

they could just be doing custody. If you're only having money as cut study, then I think you might have a better than average chance of Well, you get the money first, if there's any money to go to anybody, I think you'll get the money there first. And then if you have money in the yield products and them lend products, then I think you're an unsecured creditor and you'll probably last to get any money if there's any

money left. Now, there's not gonna be enough money to go around for everybody, So the chance of getting money into those um is probably gonna be slim if if not more than a few pennies on the dollar UM. So we'll see, we'll see, but we know that Unfortunately f t X walked away because of a two billion dollar hole. But that's not the same for everybody. Now.

F t X actually has been talking to multiple companies, one of which is another company called Block five, and so Block five is maybe one of the other really big companies in the United States that was offering the same sort of products as a Celsius Both. You could give them their bit, your bitcoin or cryptocurrencies, and they'd give you a yield on it and give you interest four eight percent something like that. Now, a lot of people who used to ask me about these and I

would always tell them the same thing. Look, as a real investor, we want something known as asymmetric opportunities. Asymmetric means symmetric would means the same on both means the same upside and the same downside. I want asymmetric opportunities. I want something that has way more upside than it has downside. So with bitcoin today, I'm not gonna go through the math, but I believe bitcoin has an eight

x e d x upside. It can go up eighty times pretty easily, in my opinion, but it could go down to zero, so it has a one x downside, could go to zero one x down with an a d x up see how it's asymmetric. I like that. But unfortunately, when you're using platforms like Celsius or block fire or whatever, it was the opposite because now I had a hundred percent risks. As we're finding out Celsius, you may not get your money back. I had a hundred percent risk to make four or eight percent or

eight whatever it is. So I'm risking a hundred to make eight. So I don't like those odds. I want it the other way. I want to risk eight to make a hundred, not risk a hundred to make eight. And that's exactly why I haven't been a big fan of those products. And here we are. Block five is in the same boat again, caught up in the great unwind, too much leverage, tied together. But um, after weeks and

weeks and weeks of deliberation. It looks like there's a deal that actually is going to happen for Block five. So good news if you have money trapped on Block five. It looks like the deal that f t X worked out with Block five is going to buy them out at a n discount to their last money raise. So UM companies like Block five, they raise money, pull up

the exact amount so UM. You know these companies, they raise is money and as they go up in value, they continue to raise money but at a higher valuation, which is exactly what happened. So ft X has agreed to provide two hundred and fifty million dollar emergency credit line to Block five UM, but at a very very reduced valuation. So it says ft X is expected to pay roughly twenty five million one source set, which is below Block five's last private valuation, which was valued at

four point eight billion. So block fire recently raised money, they raised it at a four point eight billion dollar valuation, and today f t X is going to buy it for twenty five million, which is off of UM what their last round was at UM. So that's a big discount. Now why would they do that? Well, it appears that what happened is block Fi agreed to maybe sacrifice themselves and all the investors so that the people that the customers of block fire, the people have money on block fight,

could maybe get some of that money back. Other deals that they had potentially UM looked at. According to sources, UM were trying to keep the equity of the investors in place, but sacrifice customer deposits. But the rumors say that FTX that no, no, no, no, We're going to help the customers who have deposits. But all the investors they invested into a bad company and they're out. Now. Look a lot of people in the bitcoin space are happy about this, and we told you so. You never

should have done that. I would never take joy in watching somebody else have pain. I'm not going to take any joy in that. UM. You know, these investors love and thought they were making good investments, but in a situation like this, when the markets crashed, I mean, everything goes down, they made bad choices. I'm guessing most of them were pretty uh. I know some of the top guys were very experienced investors. I'm sure they didn't allocate more than they could afford to lose. I'm sure most

of them are going to be tanked. Um so maybe having the investors lose the money and having the money accrued to the customers is the best source of let me know what you think. Of course, get at me on social media. Just at one Mark Moss, it's the number one Mark Moss. Hit me up and let me know what you think about that. But this is just a drop in the bucket. There's even bigger ones happening.

As a matter of fact, the next one I'm gonna talk about isn't even bigger liquidation, which is then going into potentially the biggest one in the entire bitcoin cryptocurrency market space, and it could be bad for the short term price. I'm gonna talk about that and more in

a minute. You're listening to the Mark mo Show talking about bitcoin cryptocurrency, is talking about the decentralized revolution, talking about the great unwind, what's happening, how you can observe it navigated if you're caught up in it and know what to expect. Next. I'm gonna cover all that and more when I get back in a minute. Uh So, don't go away, all right, Welcome back. You are listening to the markma Show. And we're talking about the decentralized revolution.

We are talking about the way the world is changing right before our very eyes, of course, being led through bitcoin and cryptocurrencies, through technology, looking at politics, finance and technology to understand what the heck is going on? What's up with these prices of gasoline and food? Why are the markets dropping? And right now we're talking about what is going on with the cryptocurrency and bitcoin space. And I'm calling it something I've been calling it the Great liquidation,

the Great unwind. And so I was talking about how this leverage, all the leverage have built up in the system that allowed to grow really fast is now unwinding and that leverage is now caused it to crash equally as fast. So we're talking about how f t X is kind of like the FED acting as similar to a FED, where they are UM the lender of last resort, their backstopping UM. Some of these companies that are going down, they looked at Celsius, they said heck no. He said,

heck no, there's a two billion dollar hole. We don't want to dump our money into a two billion dollar hole. I don't blame him. I wouldn't want to lose two billion dollars if I had it UM. I don't want to lose two dollars, much less two billion UM. So they said no to that UM, but they did say yes to UH to block five, so it looks like they are helping out block five. So good news, good news, bad news depend on where you have your money, if you have any money at all, UM and what's next.

So now there's another one crypto exchange, coin Flex. Coin Flex has um paused withdraws, so now they won't let you get your money off of their Mark Lamb, the CEO of coin flex, said that withdraws will probably not restart as they had originally hoped. UM to fix the forty seven million dollar hole much better than two billion on celsius forty seven million dollar hole on coin Flexes

balance sheet. The company is issuing a token called Recovery Value us D and enticing investors with a interest rate. Mm hmm. Now that sounds just like the problem that caused all of this in the first place. So it started with terror Luna and Terra. Luna was a stable coin that offered you a rate, And what are what is coin flex proposing? They're proposing to create something called recovery value U s D an entice, which is a stable coin that they're going to create out of thin air,

and they're going to pay you interest rate on that. One. I'm not sure. Well, a couple of things. One, I'm not sure how the heck they're allowed to do that. You would think the SEC would step in and go, wait a minute, this is insane. You can't do the exact same thing that caused the whole problem in the first place. That's one. Two. I can't believe that they would even try. I mean, who the heck is this

Mark Lamb CEO. What does he think he's doing. Wouldn't you think he would have learned and he wouldn't even try. And Third, I can't believe people would fall for it. And you know I said in the previous segment, I don't. I don't. I don't get any joy. As a matter of fact, I feel really bad for people that are getting wiped out here. I have no joy in seeing

people get taken down. But part of me, I tweeted out last night, Um well, I'll pull up the tweet, I said, A part of me, part of me feels that they're getting what they deserve, And I know that's that's the wrong thing, not not getting what they deserve, maybe maybe getting with the deserve. I tweeted out last night. I said, um, the age of responsible, the age of personal responsibility is snapping back hard, the age of personal responsibility.

Now to have freedom, we have to have responsibility. But the problem is today is nobody wants to take responsibility for themselves. And so I feel really bad for people caught up in these situations, but they need to be responsive for themselves. If you're gonna put money into something, you should sure as heck learn what that is. You should sure as heck be paying attention to what's going on.

And if you don't, if you don't understand, if you if you don't understand what is, then you shouldn't put money in there. If you do put money in there and you're not paying attention, that's on you. And and and I don't I know that may sound a little harsh, but to the point of this tweet, the age of personal responsibility is snapping back hard. And this is happening in the financial system, and so we're seeing people getting wiped out. They didn't take personal responsibility. They see the

warning signs that are out there. And so if this guy, the CEO Mark Lamb, wants to create a new stable coin and pay people interest the same thing that caused the other crash, and people are willing to go along with it, then maybe they deserve to deal with whatever happens from that. I hope they don't lose, but sure as heck, canna take a lot of risks I wouldn't want to deal with. Now they're saying that coin flex is saying that a big hole is caused by um

Roger Ver, who was typically previously known. Maybe he still has this Bitcoin Jesus. He was very early in the bitcoin space. He was Bitcoin Jesus because he tried to evangelize everybody about bitcoin. At one point, I believe he had over four hundred thousand bitcoin, over four hundred thousand bitcoin, which would make him, at one point, you know, one

of the richest people alive. I think, let's see four hundred thousand times even at twenty thousand dollars, that it's a right right around now my calcultors even go that high. I can't even tell you how much it is a lot. He had a lot, but now you know he bet on bitcoin cash. He tried to crash bitcoin and go to bitcoin cash, he lost money, and now supposedly there's a forty seven million dollar death that he owes. He says he doesn't. They say he does, airing dirty laundry.

I'm not going to dig into that. I don't really care. But the point is is of this is that um it says here that coin flex has this hole, and it says to fix this forty seven million dollar hole and coin flexes balance sheet which is supposedly caused because of Roger VERR not paying his bill. And again I'm

not digging into that, but it doesn't matter. There's a whole million dollars and in order to fix that, the company is going to issue this token of Recovery Value s DS stable coin, and it's going to entice investors to give them money with interest rate for holding the virtual currency. The CEO of Mark Lamb says that the ability to pay that interest would come from recouping the funds from Roger Ver plus a financing charge that has

been imposed on him. Lamb says, quote, we don't know what's going to happen after if he doesn't repay, or if he does repay. Our focus right now is on getting these funds raised. End quote. So supposedly Roger Vert owes money million supposedly. I don't know the details. I'm not. I don't know if he does, it doesn't. But suppose he does, that's a whole. So they're gonna sell you a stable coin, um to try to raise money to fill that hole in a company that's basically insolvent, bankrupt.

They're gonna try to raise million dollars from people by paying interest, and they're gonna supposedly be able to pay them that interest by charging the financing charge to Roger Vert, who already won't pay the money in the first place. So, uh, pro tip here. Never loan money to somebody that you don't know and don't know if they can pay you back. So I don't know Roger Vert. I don't know the situation here, and he's obviously not paying and so why

would he pay later? Um, Why would I loan money to them in hopes of maybe making I would have to be a complete idiot to do that, and it's almost criminal. I don't know, man, you know, I feel I hate throwing that around. But the CEO says, quote, we don't know what's going to happen after if he doesn't repay, or if he does repay. We don't know

if he's going to repeat repay. How can he in any good consciousness and even legally, how can he go to get forty seven million dollars from people like you and I in the hopes of maybe getting money back from somebody that he may or may not be owed from. And he says in his own words, we don't know if he's going to repay. How can you do that in good consciousness? How can you do that legally? I mean,

it's just insane. And so that's why I say, if anybody gives them money for this, I don't want anyone to lose money, which is what I'm trying to warn you. But I have to just feel like it's on them. Man. Uh. Back to my tweet from last night, when I was reading this stuff, and I was and I was looking at this, you know, the age of personal responsibility is snapping back hard. By the way, if you're not following me on Twitter, what the heck are you even doing? That?

One got about thirty impressions. I put out a couple of good things here and there. Follow me on Twitter at one Mark Moss. That's just the number one Mark moss Um. Let's see, I got more talk about liquidations. There's two more big ones and as a matter of fact, it's the biggest one, the biggest one that my guest actually last week, Mike Alfred said that wasn't going to happen because they were so big, and yet here we are. I'm gonna break that down and more in a minute.

You're listening to the Mark mo Show talking about the decentralized revolution, talking about bitcoin and cryptocurrency, is talking about the way the world is changing before our very eyes. I got a lot more to cover in a minute. Don't go away, all right, Welcome back. You're listening to the Mark mass Show taking you through, step by step, walking you through the decentralized revolution, the way the world

is changing before our very eyes. If you zoom out, you can see it, and if you zoom all the way in and look at the incremental steps, you can see it as well. Of course, we're talking about the way the world is changing with bitcoin and cryptocurrencies, and we're looking at through the lens of politics, finance, and technology. The way, it's changing all of those things before our very eyes. We've been talking about the great unwind, the

grid unwind. Of course, the Federal Reserve. They create every boom and bust that we have. Um, it's insane that we allow a group of people to control our money and create booms and bus on us. It's absolutely insane that that we allow this to happens. In saying that it happens in the first place, it's even more in saying that we're allowed to make it happen. Of course, Henry Ford, the father of the automobile, told us over

a hundred years ago. He said, quote, if the American people knew how the financial system worked, there would be a revolution before the morning. That means before the morning, like right away instantly. So of course there's probably no surprise. That's why we don't learn about the financial system in schools. We don't hear about it, we don't talk about it. But the Federal Reserved, it's responsible for every boom and bust that we have. They put money in things go

really good. We're buying houses, were buying cars, we're expanding our business. And then they sucked the money back out and then everything crashes. So they started this, you know, November last year, they started to say they're gonna start raising rates. We're gonna start letting go from quantitative easy and increase them I supie a quantity of tightening, tightening the mon terry supply. So of course things started crashing.

Bitcoin starts going down, and it's just this great unwined because all the leverage um so Terra Luna celsius um we went, we went through all these big going their mating every week now coin flex. But now it's getting big. Now it's getting serious. So now I've been talking about for a couple of weeks this three Arrows Capital three A C and and they're probably going to default. And

here we are. So this week we see that crypto hedge fund just defaulted on a six hundred and seventy million dollar loan UM So the Three Arrows Capital defaulted on that. Digital asset broker Voyage did. Voyager Digital issued a notice on Monday morning stating that the fund failed to repay a loan of three million in US dollar Peg stable coin another fifteen thousand, two y bitcoin. We're

three three million at today's prices. So what happens is Three Arrows Capital default that on that six seventy million dollars to Voyager. But I bet that Voyager needed that money. And so now Voyager doesn't have the money they need to pay their bills, but more importantly to meet their margin requirements, which means now they default on a bill to somebody else. You see how that works. That's why

this is the great unwined. It's just a domino one after another, starting with the small ones and working its way up. We can see Digital asset brokerage Voyager Digital issue to notice on Monday morning saying the fund failed to repay them. Three A C's solvency crunch comes after weeks of turmoil. I've been talking about it for weeks here, which is they raise hundreds of billions of dollars in value um. Voyagers said it intends to pursue recovery from

three A C. In the interim. Good luck. My parents told me when I as a kid, you can't squeeze blood out of a turn up, right that old saying. And so yeah, sure go get your money from them if if you could. But the problem is is they can't. Now. As a Friday, Voyager said it had approximately hundred thirty seven million in US dollars and owned crypto assets. The company also noted that has access to a two dred million cash and USDC revolver credit line, as well as

fifteen thousand bitcoin worth three million revolver from Alameda Ventures. Now, who's Alameda Ventures? Who? Who the heck is? These are these people that are loaning money everyone? Well, Alameda Ventures is owned by f t X founder Stam Bankman Freed. It's his quantitative trading firm. So Sam Bankman Freed has Alameda and he has f t X, and he's the one, as we've been talking about, that's backstopping all these institutions

and so um they've given Voyager credit lines. Now, the one thing I have no exposure to Voyager or blocked VI that that that f t X and and uh

Alam are stepping into. But if I did, one thing that would probably give me a little bit of comfort is that once they come in and you know, put up the two or fifty million or here we have three five million UM that they've given the Voyager, they probably like they looked at Celsius and said, heck, no, two billion dollar hold, We're done with that but they will give five million Voyager, So I'm guessing they liked

what they saw with Voyager. I'm guessing once they put five million in, they are probably not going to let that go away. So if they need to put more money in, they probably will. So it probably gives me a little bit of air of confidence there. I don't have any money in any Voyager or Block five, but if I did and it was locked, maybe I would feel a little bit better that they probably won't let it go down. Um it says Voyagers already pulled seventy

five million dollars from that line of credit. But how did three A C How did three airs capital get there? Well, it had a lot of exposure to Tera Luna obviously, right, and then I had exposure to Block five, right, And so you see how that UM trickles down. Now now for the big one. So UM. I had a guest on last week, Mike Alfred. We were talking about this UM go to the Go Starch Mark Moss podcast or

Mark Moss I Heart to find that podcast. It was a good conversation with Mike Alfred, an insider that kind of knows the inner workings of this stuff. So if you want a little bit more insight into this. It was. It was a really good conversation. Go check that out. But um, we I asked about a company called Genesis, and Genesis is the big dog. That's that's the biggest dog in the space. Genesis is owned by Barry Silbert,

which also owns Coin Desk or DCG Digital Currency Group. UM, and so they're the big one right there, they're the best. And he said, oh no, you know, they're they're so big, they're so liquid. Uh, they're credits so tight. Um. You know, they're not gonna get caught up in this. But here we are. So on coin Desk, the news site, which of course is owned by the same people, it says that Genesis faces hundreds of millions in losses as Three

Arrows Capital exposure swamps crypto lenders. UM. It says that the trading losses said to have suffered a nine figure, nine figure losses partly through exposure to three Aris Capital and Babel Finance. We haven't heard about Babel, so nine figures. So let's see, seven figures is a million, eight figures is uh ten million, and three figures nine I'm sorry, nine figures is a hundred million plus. Here it says

hundreds of millions, as in plural hundreds. Cryptocurrency market maker and learning from Genesis Trading is facing potential losses in the hundreds of millions, in part to exposure to overleveraged hedge fund three OARS Capital in Hong Kong based crypto lender Babel Finance in the order of a few hundred million dollars says. The precise tally of Genesis losses may not be known for some time because the company is seeking at least partial repayment from its counterparties, and some

of the losses may have been offset by hedging. So don't we don't really know how deep these holes are right now, It says. A cascade of liquidations that many different crypto lending and trading platforms has followed the high profile unraveling of crypto firms such as Terraformal Labs, Ary Luna, um Celsius and three Oars Capital. So this is all

domino affecting down now. Um. You know, according to Mike Alfred, who I had on last week, you know, Genesis is so big, so large, they're probably gonna be okay, um, it says Genesis originated over forty four point three billion dollars in loans in the first quarter of two three. That that's what they generated just the first quarter of this year billion UM. It's rumored to have a war chest of about one billion um oh d c g um.

Their parent group is about to have a war chest of a billion that can help Genesis buffer any kind of shock. UM. So you know, I don't know if it's gonna go down, and that doesn't affect me. What it does affect me, and it affects you, is that as this continues to go down, these massive forced liquidations, when these companies are forced to liquidate fifteen thousand bitcoin at one time, the market there's not enough buyers to absorb fifteen thousand bitcoin at one time, and so that

pushes the price down. And so UM, while I think we've seen the worst of bitcoin selling, we really don't know because we don't know how big these holes are. And this is a danger to everybody in the space. Um, And we're just gonna have to see how this plays out. Of course, I'm gonna keep you up to date on it as it goes, uh, step by step by step, So hopefully you can see the contagion that's happening. We're going to continue to monitor the situation, keep you up

to date on it. We're gonna keep our eye on the Federal Reserve because they're the ones that have caused this thing in the first place. When they might pivot and ease some of this pressure off of the markets and the cryptocurrency markets, you'll be the first to know if you listen to the Marketmas Show on a regular basis. That's what I got here today. All right, thanks for listening.