WEBVTT 1 00:00:00.120 --> 00:00:05.440 Ripple co founder Chris Larsen gets hacked for two hundred and thirteen million XRP, 2 00:00:06.080 --> 00:00:10.400 valued at one hundred and twelve point five million dollars. What's happening here. 3 00:00:10.439 --> 00:00:14.359 We're gonna break down the details of this hack, and Tether is reporting a 4 00:00:14.439 --> 00:00:19.559 two point eighty five billion dollar profit for the Q four twenty twenty three quarter. 5 00:00:20.000 --> 00:00:26.359 That's more profit than Goldman Sachs has earned. Crypto is growing in adoption. 6 00:00:26.679 --> 00:00:29.519 We're gonna break this down and much more. Let's get into it. 7 00:00:36.479 --> 00:00:41.240 Welcome to the Thinking Crypto podcast. You're home for cryptocurrency news and interviews. 8 00:00:41.399 --> 00:00:44.039 If you are new here, please hit that subscribe button as well as the 9 00:00:44.079 --> 00:00:47.960 thumbsup button and leave a common below. If you're listening on a podcast platform 10 00:00:48.000 --> 00:00:51.399 such as Spotify or Apple, please leave a five star rating and a review. 11 00:00:51.640 --> 00:00:54.799 It supports the podcast and it doesn't cost you anything. Well, folks, 12 00:00:54.799 --> 00:00:57.520 today was a big day. The FED came out and told us they 13 00:00:57.520 --> 00:01:02.000 are keeping rates as is. They are not rap nor are they cutting right 14 00:01:02.039 --> 00:01:06.439 now. And you know, as stated before, the markets are usually very 15 00:01:06.519 --> 00:01:10.760 volatile the week of any type of FMC meeting or announcement from the FED. 16 00:01:11.239 --> 00:01:17.159 So expect volatility tomorrow and Friday. I'm looking towards next week when things have 17 00:01:17.280 --> 00:01:19.359 settled them, when the dust has settled. And as I've been talking about, 18 00:01:19.400 --> 00:01:23.879 I anticipate rate cuts that happen sometime this year. It could be pushed 19 00:01:23.920 --> 00:01:29.040 out to twenty twenty five because there is an election year coming up, or 20 00:01:29.079 --> 00:01:32.040 I should say this is an election year and Biden's going to want to make 21 00:01:32.079 --> 00:01:34.920 sure things look good. And the reason why I'm saying the ray cuts get 22 00:01:34.920 --> 00:01:40.599 pushed off Historically we've seen that when there's ray cuts, the markets pull back. 23 00:01:40.680 --> 00:01:44.879 And I don't know if Biden wants that. Maybe with the influx of 24 00:01:45.280 --> 00:01:48.519 printed money, which they could start at any point, Q we could come 25 00:01:48.560 --> 00:01:52.920 back at any point, they can help reduce the volatility and the level of 26 00:01:52.959 --> 00:01:56.879 pullback we may see for the stock market. And of course we know bitcoin 27 00:01:57.200 --> 00:02:00.519 and crypto is highly correlated to the stock market, all of it. It's 28 00:02:00.560 --> 00:02:05.719 just correlated to global liquidity and to money supply and so forth. So we 29 00:02:05.799 --> 00:02:08.919 are on the path to ray cuts and of course the money printer being turned 30 00:02:08.960 --> 00:02:13.520 on. That's why I'm bullish. From a macro standpoint, I believe we 31 00:02:13.560 --> 00:02:16.439 are already in the bullmarket. I think we're headed into phase two and phase 32 00:02:16.479 --> 00:02:20.479 three will be next year. Phase one was last year and we saw the 33 00:02:20.560 --> 00:02:23.560 markets rallied, right, Bitcoin and crypto rally, the stock market as well. 34 00:02:23.919 --> 00:02:29.080 So it's going to be a multi year bull market as we've seen historically, 35 00:02:29.520 --> 00:02:32.719 and there will eventually come a bear market. So have your plan whether 36 00:02:32.719 --> 00:02:38.000 you're investing in crypto or stocks. Now, something that was interesting to FED 37 00:02:38.039 --> 00:02:43.080 when they released some notes, they made a lot of updates and one was 38 00:02:43.439 --> 00:02:46.800 here meet Kevin reported. FED just removed comment that the US banking system is 39 00:02:46.879 --> 00:02:51.840 sound and resilient. Now they didn't talk about the banking system for the most 40 00:02:51.879 --> 00:02:57.400 part, at or Jerome didn't speak about this. And today New York Community 41 00:02:57.400 --> 00:03:01.000 Bank was collapsing. Their stock was dumping. Seems like they're in trouble. 42 00:03:01.000 --> 00:03:07.879 Their stock went down forty percent today and this could be one of the problems 43 00:03:07.960 --> 00:03:10.639 that leads to the cutting of rates later this year. And look, the 44 00:03:10.719 --> 00:03:15.960 FED did a great job in help mitigating the collapse of the banks in twenty 45 00:03:16.039 --> 00:03:22.000 twenty three. Early twenty twenty three and we saw Silicon Valley Bank and others 46 00:03:22.080 --> 00:03:27.800 started to collapse, but through some back door behind the scenes liquidity insertion. 47 00:03:28.240 --> 00:03:32.000 They were able to prevent obviously a massive collapse of the system. It could 48 00:03:32.039 --> 00:03:35.560 have set off a ripple effect, and I don't know if it would be 49 00:03:35.599 --> 00:03:38.280 at the level of two thousand and eight, but it certainly could have been 50 00:03:38.319 --> 00:03:46.120 bad, especially with high inflation and many companies and many countries as well trying 51 00:03:46.159 --> 00:03:51.560 to dig their way out of the post COVID situation. Right, so interesting 52 00:03:51.599 --> 00:03:53.479 that this took place. I think they're trying to bury this a little bit, 53 00:03:53.560 --> 00:03:55.960 but we'll have to wait and see, well, folks. The big 54 00:03:57.000 --> 00:04:00.280 news of the day, though, was Ripple's co founder Larsen, he's also 55 00:04:00.360 --> 00:04:05.360 the executive chairman. He was hacked for two hundred and thirteen million XRP valued 56 00:04:05.400 --> 00:04:10.960 at one hundred and twelve point five million dollars. This was reported by Zach 57 00:04:11.199 --> 00:04:15.560 XBT, who's a sleuth on Twitter, and he shared all the wallet addresses 58 00:04:15.599 --> 00:04:17.800 and so forth. Now, Chris Larsen came out about a few minutes later 59 00:04:17.839 --> 00:04:24.079 and said, yesterday there was an unauthorized access to a few of my personal 60 00:04:24.199 --> 00:04:28.360 XRP accounts, not Ripple. We were quickly able to catch the problem and 61 00:04:28.399 --> 00:04:33.399 notify exchanges to freeze the affected addresses. Law enforcement is already involved. This 62 00:04:33.439 --> 00:04:40.759 is an isolated incident, and Ripple wallets are secure. Slash never were compromised. 63 00:04:41.000 --> 00:04:45.480 We've confirmed nearly all of the affected funds were converted out of XRP. 64 00:04:45.959 --> 00:04:50.319 We're working with law enforcement and have been advised that a significant portion of funds 65 00:04:50.319 --> 00:04:57.360 have been frozen and are pursuing the remainder aggressively. Many things to thanks some 66 00:04:57.399 --> 00:05:00.879 people here from Ripple for their help and and so forth. So, folks, 67 00:05:00.920 --> 00:05:02.920 I have a lot of thoughts on this, and some of you may 68 00:05:02.920 --> 00:05:05.560 have seen my tweets, and I know I'm probably gonna get a lot of 69 00:05:05.560 --> 00:05:09.519 hate, but I always keep it real with you guys. I'm not here 70 00:05:09.560 --> 00:05:12.120 for a religion. I'm here to make money. I certainly want to see 71 00:05:12.160 --> 00:05:15.160 technology adopted, and if someone does something that is not up to par, 72 00:05:15.279 --> 00:05:19.439 we have to call them out. I'm not here to kiss anybody's ass or 73 00:05:19.480 --> 00:05:25.920 anything like that. We are here to be unbiased and neutral and share the 74 00:05:25.959 --> 00:05:30.519 facts and talk about things as they are now. Before I get to my 75 00:05:30.560 --> 00:05:33.199 tweet, I want to highlight here what Brad garling House, CEO Ripple said, 76 00:05:33.240 --> 00:05:40.360 given some irresponsible speculation reporting, I want to reiterate that no Ripple managed 77 00:05:40.399 --> 00:05:44.240 wallets were compromised, full stop. So let's get get it out of the 78 00:05:44.240 --> 00:05:47.879 way. Ripple was not hacked. XRP was not hacked. The XRP ledger 79 00:05:47.920 --> 00:05:54.439 was not hacked. What was hacked was Chris Lawson's personal wallet, which he 80 00:05:54.519 --> 00:05:59.759 had Wow, two hundred and thirteen million XRPN. Right, So want to 81 00:05:59.759 --> 00:06:02.800 make sure that's clear now. To my thoughts that I tweeted out folks, 82 00:06:03.279 --> 00:06:06.800 and I said I would probably get a lot of hate here, I think 83 00:06:06.839 --> 00:06:12.040 it's time for Chris Larsen to distance himself from Ripple as much as possible. 84 00:06:12.319 --> 00:06:16.160 In twenty twenty two, he donated to Greenpeace to launch a campaign to lobby 85 00:06:16.160 --> 00:06:19.839 for the change of the bitcoin code. At the time, I tweeted out 86 00:06:19.879 --> 00:06:25.439 this was a horrible move, bad optics all around, especially with the SEC 87 00:06:25.519 --> 00:06:30.279 lawsuits still ongoing. Now Chris's personal XRP account has been hacked, and you 88 00:06:30.319 --> 00:06:32.800 can imagine the headlines that will follow. All of this is bad for Ripple 89 00:06:32.839 --> 00:06:39.480 equity holders and XRP holders. I have confidence in Brad garling House and David 90 00:06:39.480 --> 00:06:42.839 Shorts and the vision they have for Ripple and XRP, but Chris Larson is 91 00:06:42.839 --> 00:06:46.480 causing more problems with these situations. And once again, folks, I am 92 00:06:46.519 --> 00:06:50.800 an XRP holder. I still hold and I'm not telling you you should invest 93 00:06:50.839 --> 00:06:55.360 in XRP. I'm just telling you what I hold, and many times it 94 00:06:55.399 --> 00:06:58.480 depends on your entry price. I got in a very low price. I 95 00:06:58.560 --> 00:07:02.079 bought in twenty seventeen, So just understand my perspective, right, I'm being 96 00:07:02.199 --> 00:07:06.399 very transparent. So some may say, Tony, why are you attacking the 97 00:07:06.519 --> 00:07:13.519 victim here? Folks. This is a billionaire. His company is a crypto 98 00:07:13.639 --> 00:07:19.680 company. They just bought a custodian in Medico, and he should know better. 99 00:07:20.160 --> 00:07:27.759 He positioned himself here to get hacked. And headlines are gonna read billionaire 100 00:07:27.839 --> 00:07:31.800 ripple co founder loses XRP. Not a good look, folks. And I 101 00:07:31.839 --> 00:07:36.920 don't have any ill will or bad feelings towards Chris. I'm calling things out 102 00:07:36.959 --> 00:07:40.199 as is. And like I said, I go back to the green Peace 103 00:07:40.199 --> 00:07:45.000 situation. That was just a horrible, horrible move. You're in the midst 104 00:07:45.000 --> 00:07:50.399 of an sec lawsuit and you're a competing blockchain and you are calling for the 105 00:07:50.519 --> 00:07:56.040 change of Bitcoin. And I'm telling you this because I've spoken to people in 106 00:07:56.160 --> 00:08:00.279 DC as well as different companies, and people were not happy about this. 107 00:08:00.399 --> 00:08:03.639 I spoke to many Congressmen who were not happy about this, So I'm not 108 00:08:03.720 --> 00:08:09.360 sharing my emotions here, but it's just horrible optics there. And then you 109 00:08:09.480 --> 00:08:13.800 have this situation, which the damage is I think is pretty bad. It 110 00:08:13.079 --> 00:08:18.079 just puts the negativity out there, feeds food and this of course does not 111 00:08:18.199 --> 00:08:22.199 do well for the price and for investors. And don't just take my word 112 00:08:22.279 --> 00:08:26.839 for it, folks here. Nick Bugales, who's a former Ripple employee, 113 00:08:26.879 --> 00:08:31.399 tweeted out, this looks like a key compromise. Chris is neither the first 114 00:08:31.440 --> 00:08:37.600 nor sadly the last to have funds stolen that way. Key management and security 115 00:08:37.759 --> 00:08:43.480 is a huge challenge is existing tooling isn't always up to task. Here's the 116 00:08:43.519 --> 00:08:48.399 important part. I am surprised that he didn't use multi signing for a custody 117 00:08:48.519 --> 00:08:52.200 service. See what I'm talking about here, folks. Even a former Ripple 118 00:08:52.200 --> 00:08:56.639 employee can recognize what's going on here. It's not that he got his funds 119 00:08:56.639 --> 00:09:01.279 stolen, but that he should know better. He's a billionaire access to money 120 00:09:01.279 --> 00:09:07.200 and resources, and he has to understand that his actions and whether fair or 121 00:09:07.279 --> 00:09:13.720 unfair affect the market and the perception and the optics. And once again I 122 00:09:13.840 --> 00:09:18.960 mentioned for both Ripple equity holders and XRP holders. You may disagree with me, 123 00:09:20.120 --> 00:09:22.399 you may be angry at me, but this is not emotional. This 124 00:09:22.519 --> 00:09:28.600 is just straight up facts, business and understanding markets. So please understand where 125 00:09:28.600 --> 00:09:31.159 I'm coming from. And like I said, I don't know how he plans 126 00:09:31.200 --> 00:09:35.759 to do things, but I think it's best that he distanced himself as much 127 00:09:35.799 --> 00:09:41.320 as possible from Ripple because if he's going to do stuff like this, and 128 00:09:41.679 --> 00:09:43.840 you know, going back to the green Peace situation, go out. You 129 00:09:43.840 --> 00:09:48.759 know, it's one thing if he had donated to Greenpeace and didn't say anything, 130 00:09:48.279 --> 00:09:52.440 but he made it a public thing, and I'm telling you from the 131 00:09:52.440 --> 00:09:56.480 people I've spoken to, that was not received well. So just understand where 132 00:09:56.519 --> 00:10:00.440 I'm coming from. That's my perspective, folks. Now, the other thing 133 00:10:00.480 --> 00:10:03.080 I want to highlight here is at Novino Gup Though, who has been one 134 00:10:03.120 --> 00:10:07.600 of the top employees at Ripple. He's helped them build a lot of business 135 00:10:07.639 --> 00:10:11.919 relationships. You've often seen him at conferences speaking about Ripple and XRP, and 136 00:10:11.960 --> 00:10:15.799 there's tons of videos going around. He's leaving the company, he said, 137 00:10:15.799 --> 00:10:18.960 after seven years at Ripple, it's time to say goodbye and embark on a 138 00:10:20.000 --> 00:10:24.360 new adventure. Grateful to work with Ripplers in building the Internet a value. 139 00:10:24.399 --> 00:10:26.679 Big thank you to Chris Larsen for your vision and Brad garling House at Monico 140 00:10:26.720 --> 00:10:33.279 Long for leading us. So he's out. Just FYI on that now. 141 00:10:33.360 --> 00:10:35.399 Quick word from our sponsor, and that is Uphold, which is a great 142 00:10:35.440 --> 00:10:39.720 platform where you can buy bitcoin in all the top all coins. Uphold has 143 00:10:39.759 --> 00:10:45.200 two hundred and sixty plus cryptocurrencies. They're available in over one hundred and fifty 144 00:10:45.240 --> 00:10:48.879 countries and they have many different fiat currencies that they support. You can also 145 00:10:48.919 --> 00:10:52.519 trade precious metals on this platform, gold, silver, palladium, platinum, 146 00:10:52.840 --> 00:10:56.679 and they have a great app that's easy to use. Best of all, 147 00:10:56.799 --> 00:11:01.120 they are fully reserved. You can go review their transparency reports. They don't 148 00:11:01.120 --> 00:11:05.360 commingle or lend out your funds. I've been using this platform once again since 149 00:11:05.360 --> 00:11:09.279 twenty eighteen. I've interviewed the CEO, the CFO and many representatives, so 150 00:11:09.360 --> 00:11:11.519 I can vouch for this platform. So if you'd like to learn more about 151 00:11:11.600 --> 00:11:16.039 Uphold, please visit the link in the description. Now, folks, big 152 00:11:16.120 --> 00:11:20.519 news some tether, and Tether continues to improve their transparency, Folks. Every 153 00:11:20.600 --> 00:11:26.960 quarter they are putting out at testation reports and this is really great. Recently 154 00:11:26.960 --> 00:11:33.360 at Davos, you had the CEO Caantheror Fitzgerald endorsed Tether. If you guys 155 00:11:33.360 --> 00:11:37.639 recall I shared that video and he said, look, I've reviewed their books. 156 00:11:37.759 --> 00:11:41.480 Everything seems to be in order. I've often said I think years ago, 157 00:11:41.799 --> 00:11:43.759 years ago, when Tether first started, I don't think their books were 158 00:11:43.759 --> 00:11:46.840 in order, but I think they have since dot their eyes crossed, their 159 00:11:46.919 --> 00:11:50.720 t's, get their ducks in order. I think the ship is in the 160 00:11:50.840 --> 00:11:56.639 right direction right now. Here's what Paolo Ardiono, if I'm saying that right, 161 00:11:56.000 --> 00:12:01.120 tweeted out Tether Q four twenty twenty three attestation is out. My summary 162 00:12:01.279 --> 00:12:05.440 profit for the quarter two point eight five billion dollars, of which approximately one 163 00:12:05.559 --> 00:12:09.960 billion dollars in net operational profit mainly US T bill interests, and approximately one 164 00:12:09.960 --> 00:12:16.559 point eight five billion dollars from gold and bitcoin holdings. Total profit for twenty 165 00:12:16.679 --> 00:12:20.639 twenty three six point two billion dollars. He said, cash and cash equivalents 166 00:12:20.720 --> 00:12:26.159 cover now ninety percent of all issue tokens, highest percentage in the last years. 167 00:12:26.840 --> 00:12:31.720 He says. The total t us T bill exposure direct plus indirect is 168 00:12:31.799 --> 00:12:37.080 eighty point three billion dollars folks. Teller is making a lot of big moves 169 00:12:37.120 --> 00:12:41.600 here. That's incredible profit and here. Matt Hogan of bit wise said Tether 170 00:12:41.720 --> 00:12:46.679 made more money last quarter than Goldman Sacks. Goldman Sacks made two point zero 171 00:12:46.679 --> 00:12:52.039 one billion dollars. Tether at two point eighty five billion. That's incredible, 172 00:12:52.279 --> 00:12:56.039 folks. This is a major, major win. Crypto's here to stay, 173 00:12:56.080 --> 00:13:01.720 it's growing, it's maturing, and we're seeing the ETFs and all these financial 174 00:13:01.720 --> 00:13:05.919 products being launched. So I'm very bullish on this upcoming bull market cycles and 175 00:13:05.960 --> 00:13:13.080 future ones as well. Now. Paolo also highlighted that bitfinex, which is 176 00:13:13.759 --> 00:13:16.559 also part of Tether, that there are two companies that work together. They're 177 00:13:16.559 --> 00:13:22.320 going to launch BFx or securities or bitfinex securities. Excuse me, he said, 178 00:13:22.399 --> 00:13:26.480 super excited to see Bitfinex's securities launching. El Salvador providing a global venue 179 00:13:26.480 --> 00:13:31.960 for regulated tokenized assets in a bitcoin country. El Salvador has become the center 180 00:13:33.039 --> 00:13:37.960 of digital finance of Central America. Incredible. They're making a lot of progress 181 00:13:39.159 --> 00:13:41.480 and El Salvador is doing some great things. Now we got news out of 182 00:13:41.559 --> 00:13:48.679 Thailand here. Thailand's SEC breaks new ground in twenty twenty four with crypto friendly 183 00:13:48.799 --> 00:13:52.000 rules. Retail investors can now invest with out limits in digital tokens backed by 184 00:13:52.080 --> 00:13:58.960 real estate or infrastructure. Once again, we are seeing globally the move towards 185 00:13:58.000 --> 00:14:03.799 embracing crypto, so regulations being put into place, They're embracing it. Financing 186 00:14:03.879 --> 00:14:07.840 is opening up, governments are putting out white papers and much more. It's 187 00:14:07.840 --> 00:14:15.200 incredible what's happening. So tie SEC regulates cryptocurrencies under the Digital Asset Businesses Decree, 188 00:14:15.360 --> 00:14:18.799 focusing on areas like sales, trading and initial coin offerings also known as 189 00:14:20.039 --> 00:14:24.840 icos. Digital asset businesses operating in Thailand are required to obtain licenses and comply 190 00:14:24.960 --> 00:14:28.720 with the rules set forth by the SEC as outlined in the decree. The 191 00:14:28.759 --> 00:14:35.440 SEC said the SEC's updated framework removes retail investors' limits for asset back tokens, 192 00:14:35.480 --> 00:14:39.720 creates new rules for custodians, and gives the agency a larger role in monitoring 193 00:14:39.720 --> 00:14:45.519 digital asset business Folks, If only our SEC here in the United States could 194 00:14:45.519 --> 00:14:50.080 get their act together. But crypto is not a US asset class. It 195 00:14:50.159 --> 00:14:54.039 is a global asset class, and game theory is playing out here at competitive 196 00:14:54.080 --> 00:14:58.279 global market, and other countries are passing their regulations, are putting things in 197 00:14:58.320 --> 00:15:03.519 place. So all these things just make me more incredibly bullish. Guys that 198 00:15:03.120 --> 00:15:07.720 even if we're dealing with a clown like Gary Agains here in the United States, 199 00:15:07.000 --> 00:15:11.320 the rest of the world is moving ahead. Capital will flow into the 200 00:15:11.360 --> 00:15:16.679 acid class. And the great thing is that these tokens many have a finite 201 00:15:16.679 --> 00:15:20.799 supply to have a hard cap. Because of the blockchain, anyone can access 202 00:15:20.840 --> 00:15:24.159 it and capital can come in from every fiat currency around the world. There's 203 00:15:24.200 --> 00:15:28.759 never been an asset class like that, once again with a finite supply that 204 00:15:28.799 --> 00:15:31.200 we can see real time on the blockchain. All right, folks, that's 205 00:15:31.200 --> 00:15:33.600 the news. Let me know what you think. If you haven't watched or 206 00:15:33.639 --> 00:15:37.559 listened to my interview with Anthony Scaramuccio was uploaded today, be sure to check 207 00:15:37.600 --> 00:15:41.120 it out. We had a great conversation. He just got back from Davos, 208 00:15:41.159 --> 00:15:45.519 so he shares a lot of insights And if you haven't subscribed to my 209 00:15:45.559 --> 00:15:48.480 free email newsletter, please do. The link will be in the description. 210 00:15:48.559 --> 00:15:52.240 It's one hundred percent free. Also, folks, please follow me on TikTok, 211 00:15:52.399 --> 00:15:56.440 LinkedIn Instagram, Facebook and Twitter x it supports the podcast. It doesn't 212 00:15:56.440 --> 00:16:00.000 take a dollar out of your pocket. It's all free. Please support if 213 00:16:00.039 --> 00:16:03.279 you can, and thank you for watching, thank you for listening, and 214 00:16:03.320 --> 00:16:04.799 I'll talk to you all later