The Mark Moss Show Nov 14, 2022

happening in the cryptocurrency market. Well, this big thing happening in the world, a big thing happening in the markets, um, and there is big things happening in the cryptocurrency space, and it's important to understand what's actually happening because it's like a microcosm. It's like, uh, it's like a little model that we can see and we can understand easier, and we can see it happen in much shorter time frames.

But it's exactly, uh, it's exactly what's happening in the bigger financial system, and it's exactly what's happening in the bigger global landscape. What's happened to other countries and will eventually happen to the United States as well. And so if you can understand what's happening here in the crypto space, which you should, um, then you can understand everything else. So we've got lots of cover today. I'm excited to get into this. UM. I am wearing my hottle shirt today.

I have changed. I've broken from my normal uniform of a black shirt to represent my hottle shirt because that's what we need to do today. We have to hoddle. The price of bitcoin is plunging, the cryptocurrency market is plunging based off of the news that I am going to unpack for you, So let's jump into it. What am I talking about? Well, another one bites the dust?

How about that? How's that for a title? Another one bites the dust, and I am talking about another pillar, a giant in the cryptocurrency space is done for game over Now, We've been talking about this for a while. UM, this kind of domino effect that happened, and really we saw the cryptocurrency markets plunge, Bitcoin plunge, cryptocurrency markets plunged when Tara Luna the stable coin broke And I'm not going to go through all that again. Hopefully remember that.

If not, don't worry you can go back and check it out on the podcast. Just check out your favorite podcast player for the Markmas Show and you'll find those episodes. But we saw Tera Luna, which was this algorithmically programmed stable coin was a horrible idea, UM, and they were trying to keep this pigs. They created their own token from thin air, and they were trying to keep it

algorithm algorithmically pegged at dollar parody. And then they took a bunch of the money that they had made from selling this made up token out of thin air and put into bitcoin. When it all started to come apart, when the peg was being broken and they're made up token started losing value, they were forced to dump all their bitcoin into the market, and it brought the price

of bitcoin down. When the price of bitcoin came down, then it's created this domino effect where then we saw Celsius go down, we saw three Arrows Capital go down, we saw Voyager go down, we saw block Fire go down, and it was like this domino effect. Um. It was pretty interesting. Now. I said at the time, and I'm gonna unpack for you again that pegs are always meant to be broken because somebody is trying to artificially engineer value, trying to artificially engineer the way the markets work by

creating this arbitrary value pegging it. But that's not how markets work. Value is always subjective. People say, well, there's no intrinsic value. You've got the Peter Shifts of the world saying that bitcoin isn't like gold. Gold has intrinsic value. Bitcoin doesn't know. That's false. There is no such thing

as intrinsic value. Period All value is always subjective. It's always subjective of giving you examples of that over and over and so the problem is when you try to engineer value, when you try to gamify it, when you try to force it like fiat. Current. See, a lot of people don't really understand what that word fiat means. It's a new word. As a matter of fact, I would like credit bitcoin for bringing that word fiat back to kind of main um the mainstream. Fiat means by decree,

so all things have value because we believe they have value. Collectively, the market agrees that certain things have certain values. But fiat means that it's not up to the market. We decree, by decree, we give it value. So that's exactly what happened with these pegs is they try to buy, decree give something value, and sometimes the market goes along with it for a while, and then the market says, we don't value it anymore. And now we see this happen

all over the place. UH is typically known as bubbles. So the famous one that people want to point Bitcoin too is the tulip bubble. And they'd say, they point to Bitcoin is no different than to the bubble. So back in Holland, I think it was the sixteen hundreds. Um in Holland, they have tulips to the flowers, and all of a sudden, for some reason, they started becoming more and more valuable, and certain tulips were worth more than others, and then it turned into a mania where

collectively the market started paying more. Well, then tulips went from this price to this price, so then people were like, okay, we'll pay more, and I'll pay more, and the price of tulips went straight up like a skyrocket. And then all of a sudden people figured out that they were just flowers and that they were great valued way too high, and nobody wanted them anymore, and then the price came

straight back down. Now, one thing I'll point out is that very simply, Look, I'll make the financial markets super simple for you. That's my goal. Take these financial subjects, these complex financial subjects, and make them very easy to understand. And so look, I'm gonna make it super simple. It's not oversimplifying this outworks. Markets stopped going up when there's no more buyers. Also, markets stopped going down when there's

no more sellers. So in this example of the tulip mania, which by the way I should I didn't prepare this part to the mania, six thirty six is when it happened, and it happened over just a very short period of time. Uh, sixteen thirty six. Sixteen thirty seven speculations drove the value of tulip bulbs to extremes. At the market's peak, the rarest tulip bulbs traded for as much as six times

the average person's annual salary. Wow, think about that, six times the average annual wage, which is in the United States, the average annual wages fifty three thousand dollars a year, fifty three grand a year. So time six, that's how much the two loops were going for. So anyway, um, as it started going higher, higher, higher, higher, higher, and then all of a sudden there was no more buyers and they said, uh, you know what, we don't we don't think it's worth that, we're not gonna buy anymore.

And then the whole thing crashing and it never came back. So trying to compare bitcoined two is ridiculous. But the point is is that the mark get collectively agreed that they would give it value and they did. All right, now let's jump into what happened here. Another one bites the death. So when you're trying to peg things, you're trying to create this artificial value, it always is meant

to be broken. Now, the most famous example of this, well, real quickly, we're talking about, just so that you know, we're talking about the ft X cryptocurrency exchange is the second largest cryptocurrency exchange. I'll call it a cryptocurrency casino. That's what it is. It's gambling, and I'm gonna explain to you why it's gambling. Um, I know a lot of you guys think that crypto is this innovation and it's the hottest thing ever, and it's gonna be worth

all this money. It's really a casino. And when I unpack and uncover all this for you, you're going to see exactly why. And Japan Bank of England UH and the e c B and yes, even the United States is also a casino as well. Once I unpack all this, it's gonna be super easy to understand. Before we get into the f t X, what happened to Sam bankman Free how they how he lost the second the second largest exchange. I want to rewind the clock just to give you a little bit of a better example. We're

gonna go through history. I know you love it when I give you a history lesson, and I want to go back to the story of George Soros. Everybody's favorite villains, certainly not my favorite guy, but it's an important story to understand. How did George Soros get so rich? Well, he was, he was a trader, one of the most successful investors and traders in history, by the way. But he got famously rich by making a billion dollars in

a single day, um back in the nineties. Now a billion dollars was a lot more money back in the nineties and is today. And so we made that in a single day, And how did he do that, well,

I'm gonna break that down for you. I want to explain to you what he did and how this translates into what's happening with f t X, how finance just to took out fd X, what this means for you if you're in the cryptocurrency market, and how it's just a smaller um microcosm of actually what's happening with the central banks around the world, including the United States dollar in the federal reserves. I'm gonna explain all of that.

You do not want to miss this. It's gonna be expensive lesson if you missed this, because this is going to happen to you no matter whe're a in the world. If you're just tuning in, you're listening to the Mark Moss Show breaking down the decentralized Revolution, and I'm gonna explain to you what happened in the cryptocurrency space this week and how it's coming for the rest of financial markets. Don't miss this. I'll be right back with more in

a minute. Don't go away, right back, all right, welcome back. If you're just tuning in, you're listening to the Mark Moss Show, I'm breaking down what happened this week in the cryptocurrency markets. How the second largest exchange I'm talking about, f t X, was just taken out by the number one exchange, their competitor, Buyinance. Before we get into that, I wanna, I wanna, I wanna. I'm gonna break down this whole thing for you so you can understand what

happened here. How it was just a small example of what's happening in the greater financial system. But I'm gonna give you this story real quick about George Soros and how he broke the British pound. And so what happened is, again, all value is subject, all values created by the market. Whenever you try to force it, that's when you create the problem. So the British pound, so you know, all these countries in Europe had their own currencies. So the

in in Britain they had the pound. In German Germany they had the mark. And what happened is the British pound was shadowing the German mark in in thees. Even though the two countries were completely different countries, they had different economical basis, imports, exports, all of that. At the time, Germany was a much stronger um country, at the time

and they still are today. But the UK they wanted to keep the value of their pound at two point seven marks, so you could always exchange one pound for two point seven marks. They picked that number. That's an arbitrary number. They decreed Fiat by decree, we say that one pound is worth two point seven, but the market doesn't always agree. The problem is that in Britain they had very high interest rates um and they had equally high inflation, so the value value of their dollar was

going down. Their dollars the pounds were buying less and less goods right when inflation. When you hear about inflation, the FED is trying to fight inflation. That that means they're trying to fight prices going up, the cost of gas, the price of homes, the price of food is going too high. It's not that the prices are going higher, is that the value of the dollar was going down, so it takes more of those dollars to buy those things,

so that those work in opposite. So what happened is in Britain they had high interest rates and they had it high inflation, but they also demanded that remember that the pound exchange two point seven for one mark. They had to do that in order to enter into something called the e r M, and it's exchange rate mechanisms. So European Union, the EU was forming, and they're trying to figure out how all these countries could work and how these different currencies could be exchanged for each other.

So Britain want to enter to the e r M. Now many speculators, gamblers, traders, whatever you want to call them, George Soros being one of them. He wondered how long could these fixed exchange rates really work? How long could they fight against market forces? And so speculators like George Soros began to take up short positions against the pound. They were basically saying, look, we don't believe that it's

worth two point seven marks. We don't believe that um, and we can see that you have high inflation, high interest rates, and and we know that it's not worth that, and we know that it's going to drop in value, that the pound will lose value, so we're gonna bet that it's going to go down. Now what happened is so they're selling it short, they're put they're trying to push the value of the pound down, and the UK didn't want that to happen. So what do they do?

They try to defend it. How do they defend it? Will they start buying it? So Soros and the speculators are selling it down, shorten it and the UK is forced to buy it to try to prop it back up. And what they did is they raised interest rates um to double digits to try to attract more investors to buy the pound. So, um, hey, right now if you put your you know, if you buy dollars from the U. S. Treasury, they'll pay you about almost five percent right now, and

so that's attracting more investment capital. People are like, we'll shoot um, losing money sitting in the Argentina paso or the Turkish lira or the pace or whatever it is. So we'll put our money into the dollar at the treasury will make four or um and if they continue to raise rates, more and more money will come into the dollars. That's exactly what the Bank of England did

or the UK did. They raised interest rates to double digits to try to attract more investors to help buy up the pound to fend off the attack of George Soros and the speculators. Now what happened though, is now that now they had to pay out all this interest expense. Right, they raised rates to attract investors. The investors came, but now they had to pay out the money. But the British government realized that it was going to lose billions of dollars trying to artificy sually prop up the pound.

So after trying and spending billions of dollars, they gave up. Basically, they had to withdraw from this e r M that they are in the exchange rate mechanism. And when that happened, it plunged. They gave up the peg. They said forget it, We're gonna withdraw out of the RM, and the pound crashed in value, and Stros and the other speculators that had all these short bets piled up. They made a billion dollars off of this one trade. Now, why do I break that story down for you, because that's exactly

what happened with Harry Luna. I'm sorry with Terry Luna. It's exactly what happened now with f t X, and it's exactly what's happening in Japan, Bank of England and will happen in the United States as well, so let's break this down a little bit. So, um, you might know who Sam Bankman Freed is UM from f t X. F t X, as I said, is the second largest

cryptocurrency casino are they call him exchanged? Now, like I said, when this whole thing broke down where Tara Luna crashed and then Celsius crashed in three AARs capital crash and Voyager and blocked by the whole thing, Sam Bankman Freed, the founder of f t X, came out as the savior. Everybody applauded him. Hey, he came out. He saved everybody. Congratulations. He was featured on like Time magazines and the Financial Times and all these articles that he was the savior.

He was going to backstop everything. He was the smartest guy. He's like under thirty years old. He's worth billions of dollars. He's the smartest guy that we leave all his money to charity. Now he's meeting with presidents and political leaders and his influencing regulations and all these things. So let's

talk about this. So he started building out all these UM companies and he committed millions of hundreds of millions of dollars to that in May of two ft X CEO Sam Bankman Fried has warned that more crypto exchanges are headed towards insolvency, but there yet to be exposed. So he's saying, hey, look, there's way more crypto exchanges that are going to be insolvent or bankrupt, right, but

we just haven't found that yet. Um crypto billionaire has recently provided some hefty loans to bell at a number of struggling crypto firm so he, like I said, he was bailing him out. He was titled cryptos bailout King. People are starting to think like the Federal Reserve is meant to backstop the banks, and maybe f t X and Sam Bankman freed, which will call SPF moving forward, SPF and f t X will be like the Federal Reserve,

They're going to bail out the crypto exchanges. It's kind of the same thing, right, Not really, um, he said, quote there are companies that are basically too far gone and it's not practical to back stop them for reasons like a substantial hole in the balance sheet. So he's like, look, um, we're we we bailed out a few of these companies, but there's way more that are way worse and we're just not gonna do him. He bailed out f t X and f SPF bailed out UM Block five million

dollar revolving line of credit. Uh, the quantitative trading firm Alameda, remember that name, We're gonna come back to it, committed five million of financing Voider Digital UM In May, Bankman Freed purchased a stake in robin Hood, and they also acquired Canadian crypto trading platform bit Vote, as well as in Bed Financial Technologies. They're buying all these things up left and right. Okay, But then in July, SPF says that f t X has up to two billion dollars

for further billouts. He says that f t X has a few billion on hand to continue assisting in struggling firms. According to a Reuter's article, um but he said that he felt the worst liquidity crisis were now in the past. So hey, I think we're past the worst of it. We did our best, We bailed out these companies, and you know, by the way, we got an extra two billion dollars laying around if you want us to use anymore. But this is only the beginning, and it gets so

much better. And like I said, you need to understand what's happening here, because it really is what's happening in the United States and Japan and every everywhere for that matter. You're listening, if you're just tuning and you're listening to the Mark Moas Show breaking down the Decentralized Revolution, and I'm explaining how f t X just fell from grace it crashed hopefully didn't losing money on the way, and how it's coming for the rest of the world. Like

I'm gonna break this whole thing down. You don't want to miss it. Super interesting. I gotta go through it fast. I'll be right back. Don't go away, all right, Welcome back. If you're just tuning in, you're listening to the Mark Moss Show, I'm in the middle of breaking down how the second largest cryptocurrency exchange just blew up. Sam Bankman freed we call him SPF and his exchange f t X,

and they absolutely crashed. So he was the savior. He bailled everybody out, um and uh he said, hey, we have a few billion dollars two billion dollars on hand, just in case anyone else wants to get billed out. But we think the worst is behind us. All right. That was July. Now in this is important. So October, just a couple of weeks ago, SPF Sam Bankman Freed, the founder of crypto exchange f t X, said, quote no more bailouts. Interesting, So um, the SPF and f

t X are looking to raise fresh funding. He clarified that the company f t X will no longer pursue bailout acquisitions. They're not gonna do that anymore. On twenty sam Bankman Freed said f t X is planning a new funding round to raise capital. They wanted to raise a billion dollars of capital at a thirty two billion dollar valuation. So October twenty five, a few weeks ago, they were raising a billion dollars at a thirty two

billion dollar valuation. Well then November two, a couple of weeks later, coin base breaks an article and says, divisions in Sam Bankman Freed's crypto empire, which is Alameda and ft X blur on his trading titan Alameda's balance sheet. So um, what happens is he owned two companies and let me let me break down how this works, how insidious? This is? All right, I'm gonna try to be a little bit vague, but i'm gonna give you some examples. So f t X is an exchange where you can

go exchange one crypto token for another. You can exchange your bitcoin for a theory m or for Cardana or Salona or whatever any of the other twenty tokens they have on their all. Right, then he created another company called Alameda, and Alameda is what's known as a market maker. Remember that markets are supposed to be free. Remember that values are supposed to be set by the free market. But what market makers do is they get into the market and they buy and sell to push a certain valuation.

So here's how it works. Um a market cap of Tesla stock or Amazon stock, or bitcoin or f t t token, it's all the same. You have the price of the stock or the price of the token times the total amount of stock or tokens that are available gives you a market cap. So if I created marks token out of thin air, I created ten of them, and one person buys one of those tokens for a dollar, then I would say the market cap of Marks tokens

is now ten dollars. Someone bought one for a dollar, and there's ten of them in existence as ten dollars. Now what happens is who bought that one token for a dollar? Well? What if it was my buddy over here known as a market maker. So there's ten tokens, and they're going to buy and sell these tokens to each other. They're gonna buy it for a dollar, sell it to the other guy for a dollar, fifty, the next guy for two dollars, up to this guy for

three dollars to five dollars, ten dollars. Now the next thing you know, they're buying them for buying and sell them for a million dollars per token. Now I have ten tokens times a million dollars each, and now my market cap is worth ten million dollars. But it wasn't done by the free market. It was done by the market makers. Now, the market makers, of course, get the free market to move right, So the market makers start

trading it. But when it goes on to an exchange, the other people on the exchange are watching this token go higher, higher, or higher or higher higher, So then the free market jumps in. Right Now, where is this free market of buyers? Oh, that's right, it's on his other exchange. It's on FTX. So let me give you an exam ample. Um, I know two people. I'm not going to say who they are. Um, and they basically last year went to f t X, went to SPF and said, hey, uh, we want to build our own token.

What token do you think we need for the Salona blockchain? And SPF said, uh, you know what would be really good is if we had this type of a token. I'm not going to out these people because I know them. Uh. He said, if we had this type of token to this kind of thing, that would be worth pretty good. And they said great, Um, if we build that, well you listed on f t X. He said, well, if if Alameda, the market maker, my other company, if they'll take that project on, then yes, f t X will

list the token. Okay, great, would you set up as a meeting? Oh? Sure, So I set up a meeting with Alameda. They said, hey, Alameda, we talked to SPF. He said, if we build this project, you're listed, and

Alameda says, sure, we'll take it. So these guys, this guy I know, went and hired a couple of developers on up work or whatever and built out this whatever protocol Salona Token, and within a couple of months and went back to Alameda and said, hey, okay, we built this project and we have it and do you want to take it? And they said sure. So, Um, I forget the exact details, and I don't want to give you the exact specifics either, but basically they said, we

want thirty percent of the tokens you created. There was like a hundred million tokens that they created out of thin air. So he created this project to be this token on Salona created out of thin air. Um, we have a hundred million tokens and we're gonna give Alameda thirty million of those dirty percent of them in exchange for twelve million dollars cash upfront. Plus we're gonna get other tokens are gonna give us, and we're still going

to keep seventy of the tokens. So then Alameda and venture capitalists love this because they just got thirty million tokens up front. They automatically turn around and sell them for three times, five times, ten times higher than they

just paid for it, so they instually make money. They say it to venture capitalists and then they set the market and it gets listed on f t X, their other company, so alamedas that's the price of this in the market by buying and selling it, and then on ft X they release it to the public with this new found price. The public thinks that this is the market valuation because the market maker has artificially gotten the price there. And then f t X makes all the

money from you, the public buying and selling these tokens. Now, these two projects both built on Salana. Two different people I know UM launched these tokens and then they walk away. They hired some developers on Upward, they built the token, they deliver it over to Alameda and f t X, and then dust their hands off and walk away. Because it's a decentralized protocol. It's not a company, it's not a service. They don't need employees, there's nothing to do.

They're not managing that, they're not growing it. It's just a protocol. We just built this thing, and here you go, and we walk away. And they got millions of dollars, tens of millions dollars in their pocket. Up front. Alameda, the market maker sold those of the tokens, thirty million tokens at three, five, ten times what they paid and then f t X makes all the money from you, the public buying and selling these tokens, which is a

bunch of worthless garbage. Now you think that it's life changing, it's world changing. This company built this page, this web this white paper, and they built this website and this new protocol they built is going to change the way that we interact with each other. And it's gonna become so valuable. And look how much money I'm gonna make. Little do you know that it's vapor where it's literally nothing.

Literally somebody made this in six months with a bunch of remote people from overseas that just built it, and they sold it to you and they pocket a bunch of money. And now fts is making much of money for your buying and selling it. But there's nothing there. It never will be anything there. There's no team there, there's no there's no no development going on there. This is what as as Sam Bankman freed f t X

and what Alameda are doing. This is the model. Now where did they get all the money to do this? That's the other part. So f t X, the cryptocurrency casino the exchange created their own token called f t t now if I buy this f t T token that allows me to have a discount on my trading fees. It's sort of like a like a club, right, like a rewards, Like when you go to the grocery store and you sign up the grocery store and they give you a discount when you put your phone number in.

It's like that. So if I buy the token, then they give me this kind of my trading fees. But most people bought this token because they thought it would go up in value. So they create a bunch of these tokens out of thin air. They use their market maker company to set a price of those tokens, create

a valuation, and then they start selling them in the market. Now, in March of this year, when Sam Bankman Freed was belling out the entire industry, that f t T token, how to valuation a market cap of over seven billion dollars. Today it's worth almost nothing. I'm gonna finish breaking this thing down for you. Show you what happened, how this actually happened within a matter of like less than forty eight hours, it went down to nothing. What's going to

happen next? And how this is a microcosm of what's happening in the greater financial system. You're listening to the Marks Show if you're just tuning in, trying to take these complex subjects, make them easy to understand and extrapolate so you can understand what's going on in the financial system. Don't go away, you don't want to miss what's coming up next. I'll be right back, all right, welcome back. If you're just tune in, you are listening to the

Mark Moss Show. We're talking about the blow up in the cryptocurrency market. The second largest cryptocurrency exchange f t X, was just taken out by their number one competitor, Finance, And it's really just a microcosm of what's going on in the greater financial system and what's happening in Japan and Europe and even here in the United States. So I broke it all down. If you miss that, don't worry, as I got your back. You can check me out

on YouTube. Just search Market Disruptors. These go on on that channel. You can watch it there or on your favorite podcast player. Just search Mark Moss Show. You'll find that. If you want to catch up to where rat so anyway, the f t X token or the f t T token, which was again created out of thin air, had a seven billion dollar valuation in March of this year. But what happened is is uh just a few days ago. Uh, well, the story broke on coin desk in November. I got

I got side checked here. So in November, this story broke on on on coin desk and they said that these two companies f t X the exchange and Alameter Research the market maker. Um, they're both giants in the space. Uh, there's supposedly two separate businesses, but they actually have the same asset on their books. The balance sheet of Alameda where they got all the money to go fund all these projects. Like I was just breaking down to you

and now bill out all these other products. The balance sheet shows that it's full of the f t X token, the f t T token that was created at a thin air and given evaluation by the market maker. Mm hmm. It's kind of dirty. And what what what it shows when you dig in is that they have more assets on their books of this token f t T token, then the token is even worth. So they were claiming about eight billion, eight billion dollars, but the valuation of

the token was less than that. The net equity in the alimated business is actually fox f t X is own, centrally controlled and printed out of thin air token. Wow. Now they had other assets on their balance sheet, including three point three seven billion of quote unquote crypto like these other projects I told you about where they take

all these tokens, but it's basically vaporware. Large amounts of the Salona block chains, they token two or nine two million dollars of unlocked Salana, uh three million of locked Salana, forty one million of Salona collateral, other tokens mentioned by name. So basically just a bunch of garbage, that's what they had. So all of a sudden, very quickly, everyone's like, whoa wait a minute, Uh, I hold this token. They don't

have any money, the bank doesn't have my money. It's called a bankrupt And so what happened is that that that came out and binance, which is the largest crypto exchange, said wait a minute, we're holding two billion dollars of this token and it's not worth that. And so c Z he's the owner of binance um he said that quote as part of finances exit from FTX Equity last year Binance received roughly two point one billion US dollar equivalent in uh in in Binance USD stable point and

f t T the token. But due to recent revelations that have come to light, we have decided decided to liquidate any remaining f t T on our books. So he's like, look, hey, we see what you did. You're a giant Ponzi scheme scheme. You have no liquidity. We're not going to hold us on our books. We're going to get rid of it now. It's interesting about this is that when you want to move that much more, he says, we will try to do so in a

way that minimizes market impact. Due to market conditions and limited liability, we expect this to take a few months to complete. Well, when you're trying to liquidate a large position, you're trying to do it privately. Typically you do it what's called O T C over the counter because you don't want to move the market so big buys or big cells you do it over the counter. Otherwise what's what's known as slippage happens and the price goes down in value and so um. But he didn't do that.

He didn't do it quietly. Didn't do privately, he is marrect. He announced it to the whole world what he was gonna do, and very quickly everybody else realized, oh shoot, if he's going to do, it's going to christ the crash the price. How much am I holding and how am I going to get my money out? And so everybody ran for the fire exits at the exact same times. Now, Alameda and ft X tried to stem that, and they

publicly they went back and forth. The two CEOs went back and forth, and they said, Hey, if you're looking to minimize the market impact on your token sales ft T cells, let us buy it from you. We'll buy it all from you today at twenty two bucks. No. It's interesting is when they gave out that number twenty two, they basically told the market where um where the where the support line was, where their liquidation price was cz from.

Binns had no response, he didn't say anything. But by telling everyone he was going to start dumping the token on the open market, it started crashing it. So it showed that he wasn't really trying to get his money out so much as he was really trying to attack the company, which of course is his number one competitor. And I'll also say that Sam Bankman freedom f t

X is hostile towards the crypto ncy market. And I say hostile because Sam Bankman for d SPF is is vocal about trying to impose regulations, honors regulations, in my opinion, horrible regulations. Pretty much all regulations are horrible, but impose these on the cryptocurrency space. So CZ probably not only is he my competition, but he's also harmful for the space overall. So how about all this take him out.

This is known as a speculative attack. It's exactly what George Soros did to the Bank of England, which is why I started with that. UM. Now since that's happened, we can see that the price of f f t T token has completely plunged. Like I said, UM, he offered to buy it at the twenty or they they said, hey, we'll sell you the price cap, which is where they were trying to defend, and he said, no, no way,

it's not gonna happen. And within literally days since yes on on eleven seven, on the seventh it was a three billion dollar valuation, and on eleven eight it's a five hundred million dollar valuation just completely demolished. Now I said, this is also happening in the rest of the world, all right, So this is a small example. It's like a toy example of what's happening in the rest of the world. So let's look at the Bank of Japan. The Bank of Japan is doing the same thing. They

have printed money. They've made the en out of thin air. Now the market collectively values the en, and the country of Japan uses the en. That's their currency, and they've assigned value to that. But the problem is that they're printing so much of it. It's pushing the valuation of the end further and further down, which means prices are

getting higher and higher. Now what's happening is that their their currency is crashing so fast, it's losing value so fast that Japan is doing the same thing that FTX did. They're buying their own currency to keep it propped up, just like the Bank of England to hold off George Soros. So the speculators are selling it short, they're trying to buy it to prop it back up. So the Bank

of Japan is actively doing the right Now. The problem is is that at some point they're going to run out of assets to continue to buy it up, and at some point the people are going to go, look this, we don't want to hold this token. We don't want to hold this yen anymore. We're going to sell it for something else, dollars or bitcoin or house or stock or anything. But we're not going to hold this yen anymore, just like nobody wants to hold the f t T

token today. Now. Um, the Japan is just kind of like in the same situation as f t X, where they can't print dollars. They can only print their own currency. So ft X couldn make more ft T tokens, but nobody wants them, just like Japan can make more yen, but if nobody wants them, it doesn't matter. They're not dollars. Well, the FED is also in the same situation in the United States. The FED is also seeing the value of the dollar going down. It's buying you less goods and

services than it did before. Remember, we don't want money. What we want is goods and services. I want energy, I want heat for my house, I want asked for my car, and I want food for my family. I want that. Money is only the proxy. Now, if the value of the dollar continues to fall, the government can print more of those dollars to try to keep it propped up. But what they can't do is print more

energy or food. And at some point, just like what happened to f t T, the valuation of the dollar will plummet so fast that everybody will rush out and buy anything they can, any house, any stock, anything they can to get out of the dollar. That's what Mesas framed up as the crack up boom. Now, it happened within days, two days to f t X, and it's going to happen over decades to the country. But we're witnessing it, we're living through it, we're seeing it happen

right now. My guess is, just like with f t T, you want to get out before everybody else, before the fire exits gets jammed. And so this is your warning. Anyway, you're listening to the Markmas show, breaking down the decentralized revolution, breaking down the way the financial system is changing right before our very eyes. How the stocurrency spaces of microcosm. That's what I got. Thanks for listening.