**FTX Implodes | MASSIVE Crypto Takeover!** — Transcript

Full transcript

1. 0:01holy smokes this is insane okay last
2. 0:06year I mentioned when it came to
3. 0:08cryptocurrency the biggest concern I had
4. 0:12is that there is no Jerome Powell the
5. 0:15only person who's like Jerome Powell in
6. 0:18cryptocurrency is Sam bankman freed the
7. 0:22owner of FDX Hammond and binance okay
8. 0:25and my biggest concern was what happens
9. 0:29if those people run out of money because
10. 0:32if they run out of money you don't have
11. 0:34a j-pow to come bail you out anymore
12. 0:36remember when uh the stable coins
13. 0:39started collapsing after the Terra Luna
14. 0:42disaster because of the three arrows
15. 0:44Capital uh absolute disaster which wiped
16. 0:47out up to 18 billion dollars of value
17. 0:50from three arrows Capital right away
18. 0:52which led to essentially the bankruptcy
19. 0:54of Voyager digital the collapse of the
20. 0:56Terra Luna uh
21. 0:58currency yeah of course and then of
22. 1:00course we saw block fi go down with them
23. 1:02uh what happened after that we saw a lot
24. 1:06of bailouts in the industry Sam bankman
25. 1:08freed came in and said oh I'll consider
26. 1:10buying a block fi I'll throw money at
27. 1:13the problem no problem Sam begman freed
28. 1:15goes around buys uh stock and Robin Hood
29. 1:17as well and so all of a sudden we're
30. 1:19like hey we've got to pop a Powell let's
31. 1:22sandbagment free but sandbagment free
32. 1:24doesn't have what Powell has a money
33. 1:26printer money printers make the world go
34. 1:29around because you have an infinite
35. 1:31opportunity to bail things out well
36. 1:34unfortunately what happened after there
37. 1:36were rumors and speculation that FTX was
38. 1:40running out of money take a look at this
39. 1:42tweet this is absolutely insane look at
40. 1:45this binance this afternoon
41. 1:48FTX asked for our help there is a
42. 1:53significant liquidity crunch
43. 1:56to protect users we signed a non-binding
44. 2:01letter of intent intending to fully
45. 2:04acquire ftx.com
46. 2:08and help cover the liquidity crunch we
47. 2:13will be conducting full due diligence in
48. 2:16the coming days okay so a letter of
49. 2:18intent does not mean binance has to bail
50. 2:20out FTX but we just with like what we're
51. 2:25witnessing right now is really crazy
52. 2:28because Sam bankman freed was the guy
53. 2:30everybody looked at is like he's the
54. 2:32rich guy who can help bail anything out
55. 2:35in the crypto universe
56. 2:36and that one concern I had though
57. 2:40probably at this point about a year ago
58. 2:41is what happens when the Jerome Powells
59. 2:43of the crypto world run out of money
60. 2:45you get collapses and liquidity crunches
61. 2:48and it's literally happening now before
62. 2:50our eyes this is a historic moment
63. 2:52because this now means the only Powell
64. 2:56left is binance that's it that's the
65. 3:01last leg standing of the crypto Market
66. 3:05which is pretty insane I mean I know
67. 3:07you've got like crypto.com and some of
68. 3:09the like coinbase and so on uh coinbase
69. 3:12at least we can look at the financial
70. 3:13stuff right but Finance is now the big
71. 3:16player in the room that actually has uh
72. 3:19allegedly plenty of liquidity available
73. 3:21though you know understanding their
74. 3:23financials and actually getting their
75. 3:25financials is a little bit tougher than
76. 3:27a publicly traded company like coinbase
77. 3:28but this is interesting let's get some
78. 3:31more updates on this so uh sandbankment
79. 3:33freed uh tweeted this morning that
80. 3:35things have come full circle FDX is
81. 3:38um uh is is where they've come to an
82. 3:40agreement on a strategic transaction
83. 3:42with binance for the acquisition of FTX
84. 3:44pending due diligence we do have some
85. 3:47more comments on this Sam bankman freed
86. 3:49says our teams are working on clearing
87. 3:52out the withdrawal backlog okay that's
88. 3:55that's insane that means so many people
89. 3:58were trying to withdraw their crypto out
90. 4:01of uh FTX that uh that they didn't have
91. 4:05any money left and so now they have to
92. 4:08go to binance and go binance just buy us
93. 4:10we don't have money to support all the
94. 4:13withdrawals
95. 4:14and you basically have a bank run
96. 4:16happening on on FTX and so they're like
97. 4:19great you know we're going bankrupt we
98. 4:22need somebody to just bail us out and
99. 4:24now what happens is binance has to look
100. 4:27and go okay well what are you guys worth
101. 4:29like they might just same bakeman free
102. 4:33could go bankrupt uh from this I mean
103. 4:35the good news is his Robin Hood
104. 4:36investment is up
105. 4:38but binance has full control here
106. 4:41because binance has to come in provide
107. 4:44like a line of credit or something and
108. 4:46start letting people take their money
109. 4:48out of the platform but the problem is
110. 4:50all of this drama is just going to
111. 4:52create even more fear
112. 4:54that oh my gosh what if what if binance
113. 4:57pulls out that's something you have to
114. 4:59consider what if binance says hey um GG
115. 5:03game over uh we're uh you know good game
116. 5:06well played and uh we we do not even
117. 5:10want to touch FTX because nobody's left
118. 5:13what's the point of buying it
119. 5:14everybody's left and uh yeah we don't we
120. 5:17don't want to just throw money at it for
121. 5:19people to withdraw and then and then we
122. 5:21lose money right uh that that's a
123. 5:24potential risk because you have to think
124. 5:26about it this way the money that
125. 5:28platforms and and I was talking about
126. 5:30this this morning it's so crazy this
127. 5:32morning in my course member live stream
128. 5:34people were asking me about FTX before
129. 5:36this news broke we were in our course
130. 5:37member livestream like two hours ago and
131. 5:39I'm like the problem with with all of
132. 5:41the crypto companies is you do not
133. 5:43actually have uh finra uh FDIC and the
134. 5:49Federal Reserve coming in and auditing
135. 5:51the companies at least you have public
136. 5:54transport currency for banks like JP
137. 5:56Morgan or Bank of America or at least we
138. 5:58know how leveraged they are so when
139. 6:01stuff starts hitting the band like at
140. 6:03Credit Suisse we can see it happening
141. 6:06that's unfortunate about the crypto
142. 6:08world is we don't actually have that
143. 6:10kind of Regulation this is why I've
144. 6:11always said that I really believe
145. 6:13regulation will be good for crypto
146. 6:15because it would actually give us the
147. 6:17confidence in the institutions of course
148. 6:20we could just go cold wallet or uh you
149. 6:22know and and just don't use any of these
150. 6:24Central platforms you know that all of
151. 6:26this really goes back to the idea of uh
152. 6:28not your keys not your crypto right
153. 6:30that's something important as well
154. 6:32uh but anyway so Sam begman freed says
155. 6:34our teams are working on clearing out
156. 6:36the withdrawal backlog this is this is a
157. 6:40straight up bank run this will clear out
158. 6:42liquidity crunches all assets will be
159. 6:44covered one to one
160. 6:46this is one of the main reasons we've
161. 6:47asked for binance to come in may take
162. 6:50some time to settle
163. 6:51but the important thing is customers are
164. 6:54protected well
165. 6:56let me I'm just going to actually just
166. 6:58pull up the Tweet stream on screen here
167. 6:59the customers are not protected if
168. 7:02binance pulls out if binance pulls out
169. 7:05customers are not protected at all I
170. 7:08mean I hate to say it because I don't
171. 7:09want to contribute to the panic but the
172. 7:11best thing you could do is get your
173. 7:13money out of there as soon as freaking
174. 7:15possible
175. 7:16uh uh you want to be first in line to
176. 7:19get your money out you want to be the
177. 7:21first person on a Lifeboat again I hate
178. 7:23to say it because I I don't want to be
179. 7:25like I don't want to contribute to that
180. 7:26kind of fear but the reality is at any
181. 7:29point uh you know you could get binance
182. 7:32that says we're not because think about
183. 7:34it this way if if you have 500 million
184. 7:38dollars that need to be withdrawn from
185. 7:39FTX but uh FTX has 300 million dollars
186. 7:45then they're upside down right you need
187. 7:46500 and you have 300. so binance has to
188. 7:49go okay well if we if we need to process
189. 7:51500 million dollars of withdrawals but
190. 7:54you only have 300 million we have to
191. 7:56basically lose 200 million now the
192. 7:59benefit to binance could be fine maybe
193. 8:02200 million is worth it if we get all of
194. 8:05these customers but if all the customers
195. 8:07leave
196. 8:09then then binance doesn't benefit they
197. 8:12throw money at potentially buying FTX
198. 8:16but then they get an L that that doesn't
199. 8:18make sense that's not good business so
200. 8:19there is actually a risk that this
201. 8:21transaction doesn't happen and then you
202. 8:23have an FTX bankruptcy which is like a
203. 8:25complete disaster it would have
204. 8:27absolutely be a complete disaster so
205. 8:29let's go to this tweet stream here
206. 8:32so let's keep looking at this our teams
207. 8:34are working on clearing out the
208. 8:35withdrawal backlog yeah that's a big
209. 8:38problem but the important thing is
210. 8:40customers are protected dude no they're
211. 8:42not like okay
212. 8:44what Voyager told us like in the days
213. 8:48before the collapse was don't worry
214. 8:51everything's fine
215. 8:54it's like Jim Cramer in 2008 telling us
216. 8:57don't take your money out of bear
217. 8:58Stearns everything is fine
218. 9:03oops
219. 9:05now do remember that with the Voyager
220. 9:08digital
221. 9:09collapse
222. 9:11in the days before the collapse I said
223. 9:13get your money out of stable coins
224. 9:16I did that I got all my money out of
225. 9:18stable coins but I actually left about a
226. 9:20hundred thousand dollars on the Voyager
227. 9:22platform and in the bankruptcy
228. 9:24proceedings Voyager is saying we should
229. 9:27be able should this is still not a
230. 9:28guarantee but we should be able to give
231. 9:30people their cash back so if you have
232. 9:33cash you should be able to get 100 of
233. 9:35that back through bankruptcy and I'm
234. 9:37like great at least I have hope at
235. 9:39getting my 100 of cash back but if it
236. 9:41was in a stable coin that's worse
237. 9:44so like in my opinion I I look at this
238. 9:47I'm like get your money in cash not the
239. 9:50the stable coin version of cash like
240. 9:52actual cash uh if if you're on FTX that
241. 9:55probably be the first thing I would do
242. 9:57is I would convert whatever I had at FDX
243. 10:00to cash so that way if they go into a
244. 10:03bankruptcy
245. 10:05at least there's a chance
246. 10:08you could get your cash back because you
247. 10:10look at the Voyager bankruptcy and
248. 10:12that's the way they're handling it
249. 10:15uh so I do not believe that customers
250. 10:17are protected a huge thanks to CZ
251. 10:20binance uh all supporters whatever this
252. 10:22is a user-centric development that
253. 10:25benefits the entire industry it's so
254. 10:27weird because Sam bankman freed used to
255. 10:29be Mr bailout now it's easy and binance
256. 10:34creating Global crypto ecosystem blah
257. 10:37blah blah blah blah okay I know there
258. 10:38have been Rumors in the media of a
259. 10:40conflict between our two exchanges
260. 10:42however binance has shown time and time
261. 10:44again they are committed to a more
262. 10:46decentralized global economy binance and
263. 10:49CZ have been in the media so much
264. 10:52because binance
265. 10:55ain't exactly the straightest Arrow
266. 10:58they're a little on the Shady Side okay
267. 11:00like let me give you an example of
268. 11:03binance
269. 11:04Bloomberg sent reporters to the binance
270. 11:07office and I I tell you this is like
271. 11:09straight out of a movie I remember this
272. 11:11from I read this probably six six months
273. 11:13or so ago this was a whole report on CZ
274. 11:16uh you know your Founders over at
275. 11:18binance and reporters would show up to
276. 11:20the office and and they'd be like dude
277. 11:22there's there's no one here they just
278. 11:24have like a little facade and then it's
279. 11:27like there's no can we go back to oh no
280. 11:28no no no we're just setting up we're
281. 11:30we're getting this office ready it's
282. 11:32just not ready and there's no one it's
283. 11:35like everything in the in in these the
284. 11:38the companies built or a lot of the
285. 11:40companies built around crypto
286. 11:42it's like shady uh and binance has never
287. 11:45been an exception they just happen to
288. 11:47have a lot of money for now but remember
289. 11:49when they run out of money that's when
290. 11:51big problems have it it's it's
291. 11:53weird it's just really weird
292. 11:57uh so note ftx.us and binance.us two
293. 12:01separate companies are not currently
294. 12:03impacted by this ftx's withdrawals are
295. 12:06live
296. 12:07so
297. 12:11all right so this is so wild you've got
298. 12:18um
299. 12:18that's actually really interesting
300. 12:20because you have FTX us and then ftx.com
301. 12:24let me let's understand the difference
302. 12:26here because one I think is
303. 12:27international and then one is just us
304. 12:29right
305. 12:30so this is the US One
306. 12:32[Music]
307. 12:34uh click here to view ftx.com which is
308. 12:37read only for us persons right so for
309. 12:41the United States you've got FTX us and
310. 12:45so what what they're basically what he's
311. 12:46trying to say is we don't know if FTX us
312. 12:48has liquidity problems
313. 12:51but but what's going to happen and this
314. 12:54is the thing is even if FTX us does not
315. 12:57have liquidity problems and it's just
316. 12:59the international Wing that uh which is
317. 13:02ftx.com which I don't even think I can
318. 13:04go to ftx.com it keeps redirecting
319. 13:07let me click here click here to view
320. 13:09ftx.com there we go it's slowly loading
321. 13:11okay
322. 13:12so if FT there we go if ftx.com is the
323. 13:16one with liquidity problems
324. 13:18what's going to happen is all this media
325. 13:21drama will likely in my opinion flow
326. 13:24over to the US version and you're going
327. 13:27to see so much panic at the US version
328. 13:31that you probably could start seeing
329. 13:34liquidity problems at the FTX us version
330. 13:37as well
331. 13:38that's something to keep in mind so
332. 13:41let's let's divide this and make this
333. 13:42very clear you've got FTX the non-us
334. 13:46version which is ftx.com and then you
335. 13:49have FTX us which is the US version
336. 13:52the non-us version has the big problems
337. 13:56right now the non-us version is the one
338. 13:58that is looking to get acquired by
339. 14:00binance the US version they say
340. 14:04everything is fine but when everybody
341. 14:06hears about FTX liquidity crises and
342. 14:09withdrawal limitations I think you
343. 14:11create panic in the US version I mean if
344. 14:13I if I had money on FTX I'd be like
345. 14:15actually I do think I have a little bit
346. 14:16of money on it takes uh I I'd be like
347. 14:19I'm gonna move that to cash right now
348. 14:21uh
349. 14:23uh personally because I I do think if
350. 14:26you have liquidity issues on one you're
351. 14:28going to create at the very least that
352. 14:30fear that this could be coming to the
353. 14:32U.S one that leads to a substantial
354. 14:34increase in withdrawal requests over at
355. 14:35the U.S one what happens when you have
356. 14:37withdrawal requests at the US one you
357. 14:39face potentially the same uh liquidity
358. 14:41crunch now
359. 14:43they do say
360. 14:45that FTX us is a U.S licensed
361. 14:48cryptocurrency exchange that's great
362. 14:51but we've also seen companies like block
363. 14:56fi and Voyager which Voyager is Canadian
364. 14:59have but they still had U.S licenses in
365. 15:02some areas I think with the exception of
366. 15:04parts of New York uh I believe that I
367. 15:07double check that about Voyager but
368. 15:08either way it didn't spare them from
369. 15:10problems
370. 15:14this is a very interesting crisis
371. 15:17and uh this is uh this is uh
372. 15:21uh well
373. 15:23the good news is this video is brought
374. 15:24to you by stream yard which lets me put
375. 15:26up awesome uh awesome comments on screen
376. 15:29like this one by Edgar powered by YOLO
377. 15:34uh so go check out metcaven.com stream
378. 15:37yard to learn more about multi-streaming
379. 15:39you could stream different platforms
380. 15:40record HD videos on the stream which you
381. 15:42can download and cut up and post to
382. 15:44whatever you want really great for
383. 15:45Content creation anyway uh let's see if
384. 15:48we can get some more info here so this
385. 15:49we're going to jump on over to zerohedge
386. 15:51there's a lot to cover and this will
387. 15:53take some time this is a highly Dynamic
388. 15:56situation and we're assessing the
389. 15:58situation in real time binance has the
390. 16:00discretion to pull out from the deal at
391. 16:03any time
392. 16:05uh we expect volatility in the coming
393. 16:07days well yeah no kidding
394. 16:09Bitcoin saw a little bit of a relief
395. 16:11rally
396. 16:13and this is how you acquire your biggest
397. 16:15competitor overnight after nearly
398. 16:17bankrupting them
399. 16:20um
400. 16:22this is so crazy
401. 16:25FTX Bank Run counter
402. 16:28look at this 48-hour netflows oh 687
403. 16:32million in 48 hours one week flow nearly
404. 16:36a billion dollars
405. 16:42and all of this happens after because
406. 16:45yesterday just yesterday Sam bankman
407. 16:47Freed's like oh it's all fake news
408. 16:49yesterday uh he says the rumors are
409. 16:53false here FTX is fine assets are fine a
410. 16:56competitor is trying to go after us with
411. 16:58false rumors FTX has enough to cover all
412. 17:01client Holdings that said at the same
413. 17:03time as sambangman freed says
414. 17:05everything's fake news and then the very
415. 17:06next day oh yeah we're getting bought
416. 17:09out
417. 17:14wow
418. 17:19this is remarkable I mean this this is
419. 17:22really also kind of scary not just
420. 17:25remarkable but it's scary let's uh let's
421. 17:27listen in for a moment to CNBC it looks
422. 17:29like they're covering this as well uh
423. 17:31which you would expect let's take a
424. 17:32listen on one of your biggest Rivals and
425. 17:34then offer to buy them at a discount
426. 17:36does that make you uneasy about covering
427. 17:38the space overall
428. 17:42well
429. 17:43um it it definitely I mean it certainly
430. 17:47is you know we're a volatile and risky
431. 17:51environment that's for sure
432. 17:53um very unpredictable in that way it
433. 17:55takes a strong stomach to be focused in
434. 17:58this space it's also a reason why I
435. 18:01personally like to and focus a lot on
436. 18:04the businesses that are really focused
437. 18:07on the infrastructure aspects of crypto
438. 18:10more yeah right it was boring uh so it's
439. 18:12no surprise
440. 18:14um here's Bitcoin you could see on the
441. 18:17day chart we had a nice little drop this
442. 18:19morning here but we've actually
443. 18:20recovered quite substantially yeah take
444. 18:23a look at this we were down at about
445. 18:2519-2 on BTC this morning nice relief
446. 18:28rally here on on basically the news that
447. 18:32binance could be coming in to bail out
448. 18:34uh FTX uh the international version but
449. 18:39again those those issues in my opinion
450. 18:41are likely to spread to the United
451. 18:43States version as well though that does
452. 18:45not appear to be an issue right now I
453. 18:46expect that to come you have
454. 18:49this really
455. 18:52scary element of shaken confidence in in
456. 18:55any kind of centralized crypto platform
457. 18:58right now and again there is no Jerome
458. 19:01Powell right now the last draw like we
459. 19:03thought Sam bankman freed was the Jerome
460. 19:05Powell of crypto he was the guy the guy
461. 19:08on the right he was the guy who's going
462. 19:09to come out come in and bail everyone
463. 19:11out
464. 19:12now it's the Shady guy on the left who's
465. 19:15bailing everyone out well what happens
466. 19:17when he runs out of money or what
467. 19:19happens when binance faces a liquidity
468. 19:21crisis
469. 19:24that's crazy to think about and it could
470. 19:27happen
471. 19:28because that was one of the things we
472. 19:30talked about a year ago when we were
473. 19:33talking about the dangers of stable
474. 19:35coins it's not just the dangers of
475. 19:36stable coins it what it's what happens
476. 19:38when the only drone Powells run out of
477. 19:40money because they will run out of money
478. 19:42because they don't have money printers
479. 19:44one of them just did today and that's
480. 19:46that's scary it's groundbreaking this is
481. 19:48uh this is a big old shocker and uh and
482. 19:51you've got one j-pal basically left in
483. 19:53the crypto Market
484. 19:55that's insane
485. 19:57do I trust Finance after what I've
486. 19:59studied about binance no I don't trust
487. 20:02Finance I would not put my money in
488. 20:04binance uh I I don't trust them at all I
489. 20:08actually had more way more faith in Sam
490. 20:11bankman free
491. 20:14I thought their operations were more
492. 20:16transparent but they couldn't even
493. 20:18survive a liquidity crisis
494. 20:20I don't trust the guy on the left as far
495. 20:23as I could throw them and that's not
496. 20:24very far I'm not very strong
497. 20:28um
498. 20:32I mean look bottom line I not your keys
499. 20:36not your crypto always remember that
500. 20:39good luck everyone