CORRUPT MARKETS RANT: $GME, Wall Street Bets, Corruption and DeFi #WSB #GameStop

Transcript

all right david we are getting into the roll up section for takes this is the long awaited moment where we talk about what is going on with gamestop why don't we start there dude what is going on with gamestop alright so i'm going to explain the backstory here because it's important to understand the story going on here um for those that have watched the movie the big short the big short movie depicted this guy who manages a hedge fund who just did some math and saw that there was a ton of uh there was a ton of uh there was a problem in the housing market right so he basically called the housing market and so he wanted to he opened up a short on the american economy basically and then the big short is about just all the people that saw

the coming collapse of the housing market and this guy particularly made his fund a bunch of money this same guy in in in the movie the the character that the the the real the real person this is a true story that real person uh made a similar call so now that he's a legend for calling the 08 crisis uh people follow him people pay attention to him and he what he did with this gamestop call is that he looked at the gamestop share price he noticed that it was at trading at a particular value and then he went and he tallied up all of the assets that gamestop owns like the the real estate the property all the real assets like no never mind the business this is this is like their book value the book values yeah yeah the

assets on the balance sheet and he said that he thought that the share price was not inclusive of all the value that the company actually owned like there's the straight physical assets and so he said that he is going to make a long position on gamestop because the value of the of the asset the value of the company is trading well below the actual value of the underlying assets that they own and so okay so and where did he say this because i remember the big short in 2008 like no one would listen to him right he kept going to all these people and everyone was like yeah whatever shut up like we're not listening right where did he start saying this uh i i don't know i don't know the answer to that question i just do know that it was public and it started uh it started

brewing in the wall street bets uh subreddit servers so for those that aren't familiar with the subreddit uh well the subreddit server wall street bets it's kind of uh d5 gens will find themselves very fit very well in there it's people that try to make like yolo bets where they they put a ton of money on the line and they do it they mainly do it for engagement and they either make a ton of money or they lose a ton of money there are there's memes it's a little bit like for 4chan culture there's there's memes the degeneracy just like you know all the memes that you see coming out of corners of the internet like this was present in wall street bets okay so like i want to understand the wall street bets culture because i think this is important before we go on to the rest of

the story right so like my impression of wall street bets culture is like uh they're degens they're trying to they're trying to make money but they know this is all a game right like they very much know that the system is rigged and is is set against them and that money printer is going burr and it's distorting the fundamental value of all of these assets including stocks and they're just like what the hell we might as well benefit from this too is that the culture is that the philosophy of wall street vets you know i don't think it was uh it certainly is now i i think it wasn't necessarily that i i think maybe the money printer gober was in there just as a casual meme it was mainly just a meme of just like

degenerate yolowers um who like people and i think mainly very wealthy people would just like you know yolo a hundred dollars into options um and options for those that don't know are a way to make or lose a bunch of money all at once but i i would say in order to understand wall street bets culture you would need to understand uh it's very similar to some of the green frog culture that we see in the crypto space um there's very much this headless movement it's a cohort it's a community right there are no leaders it's just what the community thinks and so if you've ever participated in like a chain-link community or or 4chan community these are very similar communities no one is the leader but these all the they're kind of a rise as

a similar energy a similar um just community out of these people right and so uh back to the story uh and so this guy that's that's famous for calling the 08 crisis says that gamestop is worth more than what the share price is and so he buys a position and that information leaks out into the internet public knowledge and the wall street bets subreddit grabs a hold of this and they start kind of piling on they then some there are some extremely savvy informed investors who do their own analysis in wall street bets and some of the wall street best community like listens to these people and so the this trade became became more or less public knowledge inside the wall street bets subreddit and so that means that a bunch of these wall street bets they

they all put their capital into the same spot and that's a very interesting phenomenon that we're seeing inside of wall street bets we're seeing inside of projects like chain link we're seeing that in the project in projects that are like run up by green frogs on 4chan people are coordinating and injecting capital in specific places to pump collectively pump bags that's that's what is going on here but but at the same time there's also this fundamentally true and sound trade beneath all these things so gamestop or excuse me for wall street bets they identify this trade in game stop and they all start buying spot they all start taking and and putting gme stock into their portfolios and what that does is that increases the price of the gamestop uh stock and so

now we have to talk about hedge funds and sure yeah so yes yeah so where did that so where do the hedge funds fit into this picture and like shorts we've heard that term as well right so we need to understand the concept of a short squeeze uh and so when you are going short an asset that means you are hoping that the price goes down and what that means is that when you short an asset you borrow it from someone and so say i have a stock that's worth um a hundred dollars and you want to short the asset that you want to short that stock um ryan and so you borrow that stock from me and it's at hundred dollars and then the stock goes down to fifty dollars and then uh you when you borrowed that stock from me you actually sold it on the market for a

hundred dollars so you kept put that hundred dollars into your pocket kept that there and then the stock went down fifty dollars and then you bought that stock back off the market and gave that stock back to me and then you pocketed that 50 difference right that's a short that's ideal uh if you want to short as a an asset it goes down in price and you get the pocket the difference based off of the moment you shorted it it goes it can go really really wrong in the opposite direction because say say you borrow a stock from me at a hundred dollars and then you sell it and and you're going to return that stock to me at a later date but instead of that stock going down from a hundred dollars to fifty dollars it goes up from a hundred dollars to two hundred dollars

or maybe three hundred dollars or maybe five hundred dollars i have to pay that entire diff you have to pay any number it could be it's an infinite level of risk it could go to a million dollars and you have to pay back a million dollars even if you just shorted that stock at a hundred dollars so there's a large amount of risk and the thing what that funds we're doing is many large hedge funds very wealthy which are just made up by wealthy investors we're shorting game star basically into the ground and what the important point about this story is that there were there are alleged accusations of naked short selling which is short selling the stock without actually borrowing the underlying stock in the first place right which means that more than the total supply of gamestop shop

uh gamestop shares were being shorted which means it's like a fractional reserve system it's kind of like how do people get away with naked short selling oh because it's illegal and done behind the scenes i'm pretty sure it's illegal is it illegal youtube comments let us know if it's illegal yeah i would think that would be definitely illegal okay so these these funds are doing possibly naked shorts which is like super any risky super right like it's not only illegal uh quite possibly um it's it's also they're betting essentially that this stock does not go up in value at all and they don't even have the the stock

backing that bet essentially right okay so they're completely exposed completely exposed and they they think that they can just short the stock into the ground and make a bunch of money on these shorts right and like honestly maybe it's it's bad maybe it's not right to like put um sentiments into this but like gamestop is a brick and mortar business and during times of covid like you know i think if somebody said [ __ ] you for shorting a stock a brick and mortar company during covet times i i would i would agree with that you know markets are supposed to be efficient but you know kind of kind of [ __ ] you um and anyways so okay so like there we have a large and the the thing about short uh shorts is that a short squeeze can happen and so if you uh if you are exposed to a

short as in like you you owe shares back to someone and those shares double in price all of a sudden you have to buy back that the the shares that you borrowed at a higher price but if you buy back those shares say you're saying like all right i don't want this trade anymore like i've lost money i'm just going to buy back the shares i'll cut my losses and i'll pay a bit and i'll return the shares to their owner if you do that you buy back the shares and that increases the price because you bought them back which means further shorts are then pressured even more because as shorts pay buy back their shares off the secondary market to cover they push the price up and up and up which causes more and more shorts to be influenced to buy back shares and so

it's called a short squeeze this thing is explosive it can turn into a positive feedback loop of people buying back shares off the market and remember there was more outstanding short interest than the floating supply of stock of gamestock the shares and so this thing just rocketed from 20 a share up to like three hundred and fifty dollars a share in like three days right and so all the companies that were cut short are down like 99.9 on their position right and these are all hedge funds and so this is where the drama starts okay so so let me ask you here so wall street bets culture obviously they want to benefit from this trade right right totally understand that rationale do they also want to screw the hedge funds

do they want to screw the bankers was that part of the motivation behind this no this is a that is a secondary after effect they just saw a position they just saw a heavily shorted stock and they they all decided as a community saying like hey if we all buy gamestop so many of these hedge funds will have to cover their shorts that it could trigger a short squeeze that's exactly what happened okay so what happened what happened to these hedge funds david i'm looking at the first headline [ __ ] wrecked all right gamestop short sellers lost 1.6 billion in a single day as reddit traders rebelled against them that's a that's a fan that's a 2021 headline i feel like this is this is a pretty this is a pretty massive event this is like

uh main street investors retail investors kind of sticking it to the funds in a way that's been the kind of the net effect but the funds got to be pissed about this oh i'm sure i'm not pissed if i lost money too but like this sort of thing is um let me say outside of the rules of play it's it's a complete off script move no hedge fund trader like they're they're all aware of of the other traders and other hedge funds who might be coming after them but none of them anticipated a an online community would take this kind of an action so they were completely caught off guard completely caught with their hands yeah but the they shouldn't be caught

off guard if they were paying attention to the fundamentals of gamestop because they should know that there was a massive amount of short interest out on gamestop and everyone knows what a short squeeze is this is not like esoteric information a short squeeze is public knowledge right and the other interesting thing is wall street bets is a public discord or well it's also a discord it's also a subreddit so all the all the coordination in the subreddit was done in a public forum where the hedge funds and all their naked short selling is done behind behind the curtain you know private private knowledge you don't get to know that information and so like this is absolutely a story of just like the little guy versus the big elites who have

who have access to financial instruments and have access to financial resources and and capital that no one else has access to yet the wall street bets subreddit they they saw the weakness in the armor and they all realize if they all just go buy the stock they're going to be able to short squeeze these funds who are trying to wreck this country uh this company into the ground they're going to short squeeze them into oblivion and that's exactly what happened okay so fair story so far it sounds like fair stories this is all within the rules of play here uh you know hedge funds are taking massive amounts of of risk in in taking out these kinds of positions you know naked short selling aside it's still a massive amount of risk when you're

shorting something and this online community wall street bets is just doing what it normally does it's seeing an opportunity and it's pouncing on that opportunity as a community and the market response and the stock goes up and a story right but like it's not the end of story it's not the end of the day because the hedge funds and the banking class has something that this this wall street bets rabble right this crowd this online community does not have they have connections they have connections they have they have they have instant institutional prowess they have people that they can call on the phone to get to take certain actions against the

unwashed masses in in the subreddit so what happened so this one and so a lot a large amount of these wall street bets traders trade on robin hood right this is the retail trader the little guy right so they use the robin hood application to make their trades robin hood shut down trading on uh the gamestop uh stock and also the amc stock amc theaters right another asset that has heavy heavy short interest that started to become a target of further uh you know further wall street bet short squeezes saying like hey like we just short squeezed the [ __ ] out of gamestop we could probably do it for amc and that began to happen and yet robin hood canceled all trading activity on gamestop and amc as of this morning

and not only that but also td ameritrade and it gets even worse we're going to show some some tweets and some some links in a second they even took their clients positions and sold them for them while that while the trading activity was halted robin hood and and td ameritrade and other brokerages made orders on behalf of their customers to sell this stock because of market volatility and market risks so they did other things with other people's money because allegedly from what we understand what we think is is true is that people who had a connections at these funds that got wrecked i can't remember the name of the fund

called up uh robin hood and said yo shut this down and we think that's what happened and we think that's what exactly what robin hood did they shut down trading they first they tried to pause the market when when uh two days ago i think when when the game stopped share price went up too fast they halt this was like this was like nasdaq was was threatening to use nasdaq halted trading because because and they were that was after funds started screaming that they needed to recalibrate their positions and so they wanted to halt trading what is that other than because these funds these these funds were going bankrupt going bankrupt absolutely destroyed so not only losing billions but like it's costing them their entire business essentially the

entire fund because there is no cap on risk on short selling right and so so they're making phone calls and then like so they they they stopped uh trading for a while or they threatened to stop trading so that happened but this morning was the action that you're talking about which is kind of like the i you know unprecedented unprecedented yeah robin hood like robin hood this is what all the wall street bets traders use this is this is kind of their live stream into you into finance basically that was being shut down completely from these assets and their their assets were being sold without their permission exactly exactly right and so this is why we talk when we talk about uniswap and

we talk about being able to control trading and you can't turn it off and you can't permission you can't permission the assets and you can't permission the network this is why this is important because a bunch of headphones made a bunch of calls to a bunch of their market running friends saying like hey i want this to stop because i'm losing money and they did it and they listened and not only that but discord which is one of my favorite applications canceled the wall street bets discord server that's they i mean private company sure they get to cancel whoever they want because it's a private company but like [ __ ] where are these people supposed to meet like this the wall street bet subreddit had to get locked because it was getting briganded by just a bunch of randos

discord is cancelling their server preventing them from being able to coordinate as people like there's nothing more than oppression and silencing than just being able to cancel the place that these people meet and congregate it's a violation of what makes america so great and like i maybe it's not a constitutional violation because it's because private companies get to silence speech as much as they want but it's still [ __ ] stupid well so so everyone's saying like people are angry about this and justifiably so it's because basically the the the baker class and and the elites and the people with connections and billions of dollars and and and funds were able to do things that like you and you and i or normal

people average joes people that are on our slash wall street bets cannot do they don't have these connections it's like a different set of rules applies for one group of people versus versus another imagine the power just because you are getting wrecked on a trade to go de-list an asset like that's an insane amount of power and what's so crazy about this david is like they just did it in broad daylight they just daylight no brazen like what did they think that people weren't going to be pissed that like we weren't going to talk about this that there wasn't going to be massive anger they just delisted the assets i mean these are robin hood's own customers right i i

can't imagine the amount of pressure that was on robin hood to get them to turn against their own customers that affects their business model economically there must be a massive amount of of power here to or leverage to do something like that yeah people are making calls to say delete delete robinhood delete de-list robinhood from or delete it from your phone that's a hashtag that's getting trending on twitter ryan let's go through some of the the tweets and links that we have pulled up ready to go um representative telleeb actually the same person behind the stable act calls for congressional hearing on robin hood's gamestop actions nice drop like yes like this is a this is a securities market violation if we believe in free markets

in this country in the united states then this people actually actually need to get some into congress they need to go to court somebody needs to go to jail or get fined so it's good to see representation uh talking about this issue okay what's what's the next tweet here oh yeah this is from uh russell he's a football player i'm not into sports so i'm not gonna try and mispronounce his last name um but like this is this is what's going on this is a starting pistol for this entire industry especially for d5 russ is a big bitcoiner he is one of the few players in the nfl to get paid by bitcoin i don't think he knows about ethereum or d5 yet but i bet he if he did he'd be bullish on it gamestop get the dirty fiat and turn it into bitcoin

immediately there's there's values virtues and ethos that are exuding out of this industry that the rest of the world needs that we need to export to the rest of the world all right let's go to the next one oh yeah ram capital he's a fun meme account uh looks like robin hood woke up today and chose violence yeah [ __ ] you robin hood all right tyler tyler winklevoss you want this one uh okay so what does he say what kind of a soulless human being do you have to be to short a brick and mortar business during a pandemic these companies are not even allowed to legally operate these suits have no solidarity they care nothing about america i'm glad wall street bets is punching back right like he's basically saying look they're they're not good guys here right

they're just trying to make money yeah and so when they lose money they they uh they they take on this risk and they lose money so what who cares be like put on your big boy pants right like i mean this is what the markets do you got wrecked you've wrecked a whole bunch of other people in the past too this time you got wrecked you lost that's how the game is played bye-bye see you later yeah no do-overs in public markets bro there's no do-overs you can't pull this kind of thing i agree with tyler there okay how about this one yeah aoc is talking about this is dave portnoy this is dave portnoy of barstool sports he goes when aoc and donald trump jr are on the same side you know you [ __ ] up at robinhood app yeah aoc and donald trump jr both

are populist individuals one's a populist for the right one is the populist for the left this is a populist issue this is a few against the many or uh yeah a few against the many issue and both aoc and donald trump jr are populist leaders for their respective camps and they're funnily enough aligned this is the uh wall street bets chairman here is this a meme account or is this an actual representative from wall street bets uh definitely well no one can truly represent wall street bets yet this guy is one of the um leaders of the community yeah okay so what's he saying here they can only control us because we use their currency so wall street bets historically has not been a crypto friendly uh community or

subreddit right so like if you post something about crypto on wall street bets it gets auto banned i'm not sure if this was an outcropping of like 2017 or something where there's so many crypto spain like bit connect it's just simpler for reddit moderators to just ignore the noise but they still maintain that posture and yet this is kind of making the wall street bets community open up to crypto that's the solution that seems to be what this this tweet is saying we i mean we are certainly open to wall street bets i hope uh members of the wall street bet community understands that this industry is young and nascent and it's not the industry that it was back in 2017 we have grown a lot and all of a sudden a lot of our the things that we

find valuable i think the wall street best community would also find extremely valuable absolutely um all right let's go to this next one uh yeah one hedge fund blows up a million retail investors efficient market uh instead a million retail investors blows up one hedge fund market manipulation this is a disc towards people that are uh for the same reasons that the wall street bets discord server got cancelled because they are p they the powers that be are are claiming that wall street bets is manipulating the market if buying spot is manipulating the market i guess we're all market manipulators like i guess when you buy something the price goes up like is that market manipulation no it's

market manipulation to call up robinhood and say cancel trading that's market manipulation buying spot is not market manipulation yeah totally agree it's crazy that they would even propose that um what's this one yeah this is a screenshot of somebody who tried to uh set place an order inside of robin hood and robin hood gives them an error message they wanted to cancel the order that robin hood placed on their behalf robin hood shows them an error message saying we're sorry this order can't be cancelled as we placed it to mitigate the risk to your account who the [ __ ] are you to control other people's money you don't know what risk is the only reason why markets know what risk is is because a diverse set of market participants all bear their own

individual risks and they all place their own individual bets you don't get to determine what other people's risk is we're screwing you over for your safety you know this kind of reminds me we've talked about it so often but like the sec accredited investor laws where you have to have a certain net worth in order to invest in million dollars or over in order to invest at a startup um it's reminiscent of this sort of thing it's like sorry retail investor you're not smart enough you're not sophisticated enough to uh to do this so we're going to you're not elite enough to do this so we're going to wall you off from this little corner of finance we're going to handle this for you we're going to sell your shares in the brokerage account because it's too dangerous absolutely

insane that this is the error message that they would it would put up dude this one's even worse read this one out we don't let you buy only sell and even if you don't sell we will sell it against your will this is is this this is robin hood terms of service is this an email that someone got so that was a twitter comment about an email what's the email say yeah the email is from robinhood to this user's inbox i'm assuming and says important information about your robinhood account in light of recent volatility we are restricting transactions for certain securities to position closing only aka you can only sell however due to the unreasonable risk involved in brokering your position we have closed your 1400 14 500 shares

of gme that's gamestop for an average price of 1800 uh 118 on january 18th 2021. they just made they just executed orders with their customers money on be on their behalf that's crazy that's absolutely insane that's absolutely insane all right so what does this all mean right so like um populism people are pissed banks are doing things with political connections bankers and hedge fund managers and the wealthy elite are doing things that that retail can't do david d5 fixes this d5 fixes this this is what we have been chanting for so long so

you can't you can't d-list an asset from uniswap in fact anyone in the world can list an asset on uniswap this is not just it it's not just it it hasn't happened on uniswap it can't happen this is the idea behind protocols rather than banks this is the idea behind outsourcing this sort of like creating institutions that are not based on corruptable human beings right this is what defy is all about this openness this transparency this access to the world this everybody has a fair playing field it doesn't matter what

country you're from it doesn't matter what bankers you know what politicians you can call how much money you have everybody is treated equally everybody is treated the same this is an institution that makes way more sense to build on top of than the corrupted banking institution right now it's like so um is this a defy moment this is like maybe mainstream doesn't realize it yet but is this a defy moment for us this is an absolute defy moment and i think if if people were more savvy to what's going on i think we would see uh because you know markets are supposed to be efficient if some news breaks then assets tend to move the reason why i

think that you know people are it's going to take a while for people to digest this information and then connect it to defy on ethereum um because if people did make those connections we would see assets like you and i just absolutely moving right now like if that's i think that's the case uh and the the important thing i think to take away from this whole ordeal is that you know things that are deep in the protocol sync the the protocol seeking thesis that we chant about all all the time on the bankless program the things that are deep in the protocols sink the new things that are neutral are inherently flat they are flat landscapes for economic activity right and that flat landscape means a neutral playing field a flat playing field where no one has

advantages over any others and that's what scares all the legacy institutions is because they have built systems that are not flat they have built systems that privilege themselves over their users over other people and the elites are are on the peaks when everyone else is in the troughs right and this is what ethereum can bring to the world is a loving playing playing field one of uh you know bitcoin is famously known as you know the separation of money and state and ethereum is the separation of economy and state there's no reason why the economy the quote unquote the market should be under control of robin hood or td ameritrade or anyone that can pick up a phone call make a phone call and stop cancelling if if

somebody has the ability to stop trading of something then the market is controlled and the market inherently does better when it's not controlled and unless and the the market the free market is not free unless it actually manifests itself on ethereum there's no other place in the world to have a free market other than ethereum yeah absolutely okay so here's here's the thing i um listeners of bank list will know that we are bullish bitcoin like we like bitcoin it's a good asset but bitcoin doesn't fix this it doesn't have the answer to this problem right coinbase binance anywhere that you can purchase bitcoin today can still de-list those assets with a phone call with a phone with government

regulation right so like bitcoin is one part of the d5 story but if you just stop with bitcoin maximalist and maximalism you don't get what we're talking about a censorship resistant permissionless open financial system that solves the problem of gamestop and robinhood you need something like uniswap you need money protocols in order to do this i've seen many kind of maxwellis like thought leaders say yeah bitcoin's the solution and it's like no it's not dude it's not like d5 is the solution i was glad one of the the winklevoss twins said that um it's it's bitcoin ethereum and d5 without all of these things you can't actually solve what we're talking about today you need a dc we've been saying

this since the beginning you need a bankless money system if you're going to have a free money system or else you you get the same system that that we've already built it's just built on a different story value new set of bosses new set of bankers that's not what we want ethereum really does solve this i david maybe you've got to comment on that but i also want to ask you about like what is it really going to take for the world to start seeing this is is the user experience just too hard on defy now is it just like for somebody who's used to robin hood and they switch over to uh to crypto and d5 and they have to do metamask and they have to do like private key management and there's gas fees on unit swap is that just all too

much or what do you think the why don't why haven't we seen this influx of retail coming from the the disenfranchised wall street bets crowd well i think a very simple answer is to say that like gamestop's not available on ethereum like that's not where the game stopped the asset trades um and so first we just need assets on ethereum that people are interested in and you know while many of these defy tokens that we are so hyped about i think are truly revolutionary they are unfamiliar to the legacy market participants who are looking to and like because when wall street bets chats they're not chatting about defy tokens they're talk they're chatting about things on robin hood robin hood has actually done a terrible job adding new assets crypto assets into their platform they have a

they actually have um a category in crypto assets called the ethereum family you want to know what's in there ryan yeah what's the the ethereum family ethereum and ethereum classic oh my god it's awesome terrible terrible so correct correct me if i'm wrong but with robin hood david um you can't actually withdraw to uh an eth address basically you don't get access to your underlying what they're selling you is ious or something they could pull the same [ __ ] they just pulled on gamestop which is like sell your eth out from under you like take it away can't like cancel it delete it like they can pull all of that because they are purely a bank selling ious they're not selling actual ether that you can withdraw from their exchange robinhood

is not the place if you're look if you're a millennial if you're a zoomer go level up on d5 yeah we're going to need this tech for the 2020s i hope this week made it obvious we need to be leveling up on these things and i i feel like sometimes david people uh just like oh it's too it's too hard right that's not that hard yeah and you got paid 20 000 if you use defy in 2020 what do you mean it's not hard okay so so uh your friends outside of crypto right what what do you think their reaction is going to be as a result of this so right like they're you they say something about this i know they're going to talk about this and you say yeah this is why defy exists so what's their objection to coming on

board of d5 what are they going to say yeah that's a good question there is a group chat that i'm in of roughly 12 people who are defy or people that are people that are defy curious but many of them come from the legacy markets and and there was just general consensus that like this pissed them off like this just riled uh riled them up uh and you know i think that's the energy that we need for people to feel um that is that energy that is motivation that's p pure motivation they're angry at something and defy allows that anger to be expressed in productive ways right we can take that that riled up energy and we can put it into the defy ecosystem um i think that the barrier to adoption and the barrier to understanding just got a lot lower you know it's a frequent phrase that we say

on the bankless program that the most bullish thing about this industry is to become understood and this is one of the most exposing pieces of of news that has ever come across the news cycle at all right the cancelling of an asset on it on a on an exchange that's insane um i don't think there's ever going to be this one magic moment where like all of a sudden like all of wall street best is like yo let's go trade on uniswap um it's just going to be a slow trickle um but you know the like i said the the bear the the barrier is getting lower and lower and lower and it's allowing more and more water to fall over it faster and faster yeah and at the same time uh d5 is getting more and more like so the truth is if we

had that influx now from wall street bets we probably like we couldn't take it i mean too many transactions gas fees would spike but at the same time ethereum d5 is developing layer two right to start to you know as other containers for this liquidity and for these users so it's almost we we also don't want it to happen all at once it's like better for it to kind of trickle in uh and uh but but look man this is like this is this is populism this is the 2020s i feel like this is not going to go away it's only if anything else it's coming from the right it's coming from the left in politics it's only going to get worse and one of the reasons david i'm in this industry and i think this is

true for you is because this allows us to channel populism and this anger into something productive we're not just focused on tearing it down right like because you could you could look at this and get pissed like i want to revolt i want to go str i want to occupy wall street i'm going to like storm the the banks i want to get the hedge funds who did this um like that's one approach the d5 the crypto approach is we're gonna build a new system right that's credibly neutral and doesn't have the dependencies of the old system and all that anger that we feel we're gonna we're gonna channel that into something productive we're going to build an entirely new financial system from the ground up right like because

populism can get really ugly for human beings like famously the 1930s populism led to a world war right that could happen here but the reason i'm in ethereum the reason i'm in define crypto is because it's a way to channel that populism into a movement that is all about building new structures and institutions for the world so it's exciting from that perspective too yeah that's exactly right something another concept that we talk about on the bank list program frequently is that before 2008 no there was no place to exit to right but then and then bitcoin came right and in 2021 in the financial crisis of 2020 and 2021 because of kovid there is actually a

place to exit too right there is actually a way for that populist angst and that populist energy to be expressed invented right we actually have solutions for this um to me this uh really echoes sentiments of the fourth turning concept where there is um distrust in legacy institutions no better of this more salient example of institutions canceling their customers orders against their will to profit from to make sure that the elites can can keep their money um distressing institutions and meanwhile we are erecting new institutions for people to adopt instead so we are changing the guard and it's not going to happen overnight it's going to take a decade but people are looking for new

institutions these days because their old institutions are failing them and there's no better more salient of example than what happened recently absolutely well this is turning into an interesting year for sure with 2020 i think this is going to be a big year for crypto a big year for the social movement that is crypto the technology that is crypto uh and probably the the price in the bull market that is crypto right now so very exciting we're glad to have you on bank list david you feel like you got that out of your system man this is this is catharsis for you yeah like i know you were angry this morning i was i was pretty angry this morning and the thing is like my one final comment on this is like there's no reason to think that this was a one-and-done

the the gamestop community or the the wall street best community just figured out that they are a force they are a fund just like just like actual funds they are a collective community of people that have the ability to allocate capital and they are a dow they are a doubt they are a dow they are literally a dow uh and they are they are only going to grow massively first off there all of them just got really rich even though some of them kind of got wrecked by by uh by robin hood people that were making the trade before the short squeeze just made massive upsides like if you were in options you could have turned a thousand dollars into twenty to fifty thousand dollars depending on your position so now they're well-funded now they realize

that they are a force they are more organized they are more coordinated with each other and i think that this is just going to be the first of many coordination attacks on legacy institutions like this legacy marcus i think the the this is going to be the only the first of many episodes like this to come well i can't wait for that group to uh start to get their minds wrapped around d5 and um i'm you know excited to help in any way so david this has been our roll-up as always guys risks and disclaimers defy is risky eth is risky apparently so are the traditional financial markets weird uh but you could lose what you put in of

course but this is the frontier we are headed west thanks for joining us this has been the weekly roll up from