STABLECOINS ARE THE MOST INCREDIBLE INNOVATION THAT THIS SPACE IS BROUGHT

Last year was very chaotic for crypto and one of the things learning is that crypto will not be ended by Sam Bankman-Fried. This technology is bigger and more important than one person. It's sort of crypto world Lehman or Madoff or Galleon depending on how you look at the moment. Everyone knows what Lehman's brother was, it was sort of this investment bank that when too far with risk and pushed the envelope to get returns on depositors' money. They were more like what FTX was but they have a small element of Madoff. Madoff was a purported hedge fund that didn't invest its client money, it just put it in a drawer. That was better than FTX because clients were able to get their money back, all they did was look at the drawer.

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There was Galleon which was a hedge fund that was run by Roger Rotterdam who runs insider trading. I think FTX kind of has some mix of all those. The exposure of FTX actually guides us in a better direction. The focus of crypto should be on the software not on people speculating and NFT is a very good example where we have cartoonization and financialization of art. Though it has been around for a very long time the NFT world magnifies it into a thing that couldn't be sustained. Crypto is an asset class similar to other asset classes like stock, bonds, and so on. You have to look at each element of that asset class. I don't think you the aggregate and I think a lot of people focus on the aggregate.

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We tend to look at the aggregate for crypto more than we look at the individual. The asset market cap right now is around 870 billion dollars. What is interesting is that it has the same market cap after the brief bubble in 18. It just going to show you that a lot of stock indices tend to take years of recovery. The 2018 bubble takes 3 years to recover, the 2022 bubble could take some time to recover.

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I think stablecoins are the most incredible innovation that this space is brought. I think distributing computing with ERC20 is very valuable. I think Bitcoin is sort of this unveiling crypto but crypto should really proud of stablecoins and I think stablecoins are the first killer app that is truly a sight to behold because of being able to send money. Being able to say money around the world very quickly whether you are a rich person, a poor person or a corporation is extremely difficult. If you have a corporate account and you are trying to send a million dollars from one country to another, is almost impossible. It is fraught with all kinds of issues and it is very slow but stable to solve a lot of these problems. There is no refund if you send your crypto to the wrong place. In general, I think stablecoins are incredible innovations.

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The problem with stablecoin is Tether, It is the biggest stablecoin and a lot of people use it every day but we don't know whether Tether is safe. It seems to me like there is a risk of catastrophic events with Tether which will be very bad for the crypto world. I think the other stablecoins seem to be less at risk than Tether. We don't know for sure if 100% of Tether is worth 100%. Stablecoins are important innovations, we are still version one and I think we will see version two at some point.