Insider trading, Binance hit by regulators and more - The Daily Gwei Refuel #210 - Ethereum Updates

Transcript

hello everyone and welcome to another episode of the daily way refuel where recap the latest news in ethereum ecosystem i'm your host anthony sosano and today's the 16th of september 2021 all right everyone let's get into it so i hope you've all done your git coin donations by now on git coin grants or planning to i did mine yesterday donated to i think 44 grants that were part of my collection on on git coin uh and i just wanted to make a comment about the checkout experience because on git coin you have two options to check out you have layer one or layer two so obviously you can just use normal ethereum layer one or you can use a layer two called zk sync now the really awesome thing about zk sync is that it works differently to layer two kind of like arbitrary optimism where you don't

have to change your network you can just deposit funds into the zk sync layer 2 protocol and still use the same kind of like network still use the ethereum net without having to change it in your metamask so that makes the experience really really seamless and depositing funds is super easy you can do it directly in the git coin checkout page which i did kind of last night once it's deposited in it waits for 10 confirmations so another 10 ethereum blocks which is about a minute and a half two minutes uh uh yeah i think it's about about two minutes if you if you're gonna kind of like count as that um oh no two and a half minutes i'm getting my math script up there but regardless it doesn't take very long and once that happens you can immediately just uh donate via zk sync and it goes to the zk

sync wallets of the various projects which is super cool because it's it's very cheap of course because it's a it's it's a zk roll up and uh the fees are very cheap there for just simple kind of like payments and stuff like that um and yeah the bitcoin experience was just like magical really at the end of the day it was it was much better than it has been in the past uh not maybe not last round but previous rounds it had been a bit bit messy but it's just so seamless so if you haven't tried it out yet i definitely definitely recommend doing so um because it's just another way that ethereum kind of like you're scaling and it's another showcase to this layer two stuff that we're building and it's it's showcasing something that i guess is different to what you'll experience with like arbitrary optimism

yes they're still kind of like technically a bridge because you have to deposit funds into uh the the layer 2 system but you don't have to change your network which i think is really cool and i i'm pretty i think the same is true for loopering as well when i use loopre i didn't have to do that so that you know is obviously a massive benefit there which i think is is awesome so yeah definitely go check out git coin grants go donate to your favorite projects i told you guys i'd be reminding you every now and again there's probably another week left i think of the of the matching round so definitely go check that out all right so i had many many people request uh me to kind of like cover this today and the reason i didn't cover it in yesterday's refuel is because it was

still kind of like a rumor there was proof that it happened but it was kind of like a rumor and maybe i should kind of go into what i'm actually talking about here so it it came to light that uh open seas head of product um uh he's called nate uh was doing some sort of insider trading uh with openc where he would essentially front run users by buying the nfts that were listed on the front page of openc um before they were kind of like put on the front page of openstack so he knew which one's gonna go on there he front ran them he bought it and then he kind of like uh uh cycled the funds and you know sold it later obviously and made have made a nice profit off of that and the reason why he was caught is because he cycled the

funds back to one of his known addresses which is obviously total amateur hour really really kind of um uh weird that he would do that but there's a lot of things that are weird about this so you can see there's a blog post here from from openc from devin finza who's the ceo and co-founder of openc just i mean it's a very small update basically saying that uh they they're aware of it it's disappointing to see they haven't said kind of like what's gonna happen with nate or anything like that um but i think what i wanted to kind of talk about today was this concept of like insider trading within crypto and i'm gonna get a little bit deep with this uh and i'm gonna say some things that may make people uncomfortable uh but just to start um insider trading in crypto is

really really bad and i think about the worst insider trading information you probably know of and like times it by a hundred i'm telling you right now there's a reason people on twitter are always joking about people dumping on you or inside is dumping on you whatever it happens all the time and it happens more and it happens with traders like traders on twitter will go and like pump up their own position it may not be considered like insider trading when they do it but they may be trading on insider information right you you don't know they may have caught in caught wind of an announcement coming for a certain coin they may have a direct line into the team members and and stuff like that uh and and there's i mean there's numerous other things that can kind of kind of go into that so i think that's

maybe something that i think a lot of people may not be aware of is just how bad it is and it's bad for a few reasons i think the the number one reason is definitely because it's like totally unregulated this industry right there is no kind of like i mean the insider trading laws that exist for stocks and everything i mean they technically would cover i think crypto assets and stuff like that but a lot of these assets aren't actually classed as anything like the sec hasn't officially classed many of these things as securities so they technically don't have jurisdiction over them they can they can go after them and they can basically i mean so they do have jurisdiction over it but they don't um uh they haven't classified it as a security so in saying that the insider trading laws may not cover that and no

one's really policing it i haven't really seen uh insider trading being policed for uh for crypto i mean it's really hard to police as well like how do you how do you even begin to police that sort of stuff i mean personally i'm privy to a lot of information just from being kind of like an investor i i don't trade on any of this information or anything like that but just being an investor in projects i get to have direct lines to the team i know what they're working on um obviously i'm told not to say anything of course because like you know a lot of the times teams don't want stuff kind of like leaking out it's it's like it's like any company when you're building something internally you don't want it leaking out to the public before you're ready to kind of showcase it uh and

sometimes it does leak and things like that but um you know and there's obviously laws against that within publicly traded companies that you are not allowed to trade uh the stock because you're privy to this information now those laws as far as i know i don't exist for crypto if if i was to trade based on that information or just not just me but anyone else wants to trade based on this kind of like um information that we're privy to i don't think that we could be legally charged with anything but i don't know for sure and i'm sure that in some jurisdiction we could and maybe retroactively if the sec said okay well this was a security the whole time it was trading maybe retroactively they could come after uh they could go after the people that were that were doing this kind of like insider trading and

stuff like that um but just generally it's just too hard to police i mean look at how many i mean people have gotten away with this sort of stuff over the years uh whether they be like just outright scammers or people who just catch wind of something you can see it play out in the prices of assets like have you ever noticed that an asset will start going up in price and then a major announcement will come out for that asset those aren't coincidences that's literally people in uh um are doing kind of like insider trading on these sorts of things and and the most obvious example of this was i think back in late 2017 before coinbase listed bitcoin cash bitcoin cash's price uh i think skyrocketed and it actually came to light that there was a bunch of insider trading happening there you know and think about how many

um employees at different exchanges have the information of what what's being listed and when it's being listed they could without and their without um their employer knowing going inside a trade on that to their heart's content all they have to do is set up a new wallet that's not known to this exchange and do it all from there i mean it's not hard to hide yourself if you want to so from that perspective i think it's near impossible to police this within crypto it is already pretty hard to police this within the stock market or just in trading in general and i think that when you when you like kind of talk about insider trading there's like a fine line because there are lots of there's lots of information out there that you have to go digging for right like if you want to know things and and it's public

information but if you want to know things about a project and it's totally public you can go digging for it maybe you go to the project's discord channel and you talk to um people in there or you go to the github page and you see that they're actually working on something and then you buy the asset because you say hey okay well for example you say oh my god look sushi swap's working on something really exciting right now i'm gonna go buy some sushi because i think this is bullish well i mean that's by definition not inside information but that's uh you know you're still privy to information that other people may not be privy to and then you kind of go down this weird rabbit hole where people are like well i didn't know how to do that so you know that's unfair that this person knew this

and it's i've seen people say this believe it or not it's really weird but i guess like the the definition of insider trading is like you literally have um access to this privileged information that is that is not public right it's insider information which a lot of people in this industry have access to that whether they be investors in projects employees of projects especially as i said the centralized exchanges when assets being listed very easy to trade based on information whether it be kind of like a short-term trade or a long-term kind of kind of trade and it's it's rampant and you know nate here is just like i mean i i i'm not gonna say that i'm i i i kind of like feel sorry for him or anything because he bought it upon himself but i kind of like

feel sorry i mean i do kind of like feel sorry for him in a way because he's he's done this and you know he's done it on purpose right and he's done something really bad here and obviously it's shitty but the thing is is that he's just like the very tippy top of what the iceberg is like if you look underneath there are so many people have done so much worse than what what he's done um that he just he's just become the poster boy for this when in reality there's tons of people out there very well known people in the industry that do this all the time and they get away with it because they just cover their tracks better so it's kind of like that you know a lot like that with a lot of different crimes out there as long as you cover your tracks

or as long as you convince people that what you're doing is fine then for some reason you you know people will love you for it and it's hilarious because i see this play out all the time where there are literally tons of people within this industry that will dump their insider bags on you um while pumping you something publicly right they'll be like publicly bullish on it but then while they're publicly bullish on it they'll be dumping it because they're looking for exit liquidity and this happens all the time i mean the gen spartan talks about this a lot on twitter and and pretty freely about this how he says that guys like don't fall for this like these people are pumping these things up because they want exit liquidity which basically means they want buyers for their bags and you'll see this play out all the time especially with the

trader account so that's why i generally never buy anything that a trader is kind of like shilling because i know that one they're a trader so why would they hold a long term position in most of the things that they buy um and two i know that they've already loaded up by the time the information hits twitter it's already too late for you to get in on the kind of like grant ground floor a lot of the time and it means that and you know and if you go look at the price of the asset it may have already increased a lot because you know these people have kind of i guess share the information among them among their trader groups or whatever and it's not just traders it's just people that have this information in general so yeah i mean unfortunately the crypto ecosystem is is not as rosy when you

when you dig deeper i mean what we're doing like a lot of the work that we're doing to decentralize everything and and trying to build better systems is really cool and i mean we're building more transparent systems nate got caught because this is transparent but as i said it's very easy to to hide your trail here i mean super easy you don't you can just like create a new address fund it with some eth through tornado cache and away you go you don't have to do anything else as long as you don't um interact with anything else like a centralized exchange or don't interact with other other wallets you're pretty much like fine all the time i mean there's other ways there are there are other ways you can be tracked like if you connect your wallet to a website and then your ip gets tracked i mean it's it's it's

unlikely i'm i'm going down a little bit of rabbit hole there but yeah it's unlikely there so you know i mean hopefully that covers kind of like how i'm you know looking at i'm thinking about insider trading more generally and how it's just rampant within this industry and it has been for a very long time and i don't think it's going to slow down i think that because crypto's global because it's basically impossible to regulate insider trading within crypto it's not something that the regulators are going to want to spend too much time on uh it's it's i i mean i don't think they actually think that they can police this enough to the extent that to even scare people away from doing this at the end of the day because you know if there's a regulator in the u.s kind of going after these people but

you're in asia why would you care what the regulating the us is doing there's a low low low basically zero chance they're going to come after you if you're in if you're in asia they probably can't even come after you depending where you are in asia um you know especially if you're in china and stuff like that but of course you have other regulators to worry about depending where you are um but i mean in this case with with openc with nate this is shitty but it's definitely not something that should be news to uh to people if it is news to you then as i just explained that this might might make it make you uncomfortable to know that insider trading is rampant within crypto but i think it's pretty obvious when you really think about it at the end of the day it is not something that

uh is is kind of like people try to hide or anything like that and if you pay just some some kind of close attention to it you can kind of spot this playing out a lot of the time and you know this is why i always disclose things on the review i know it gets really annoying that i disclose things all the time that i'm an investor and advisor to things but i do real i do feel very responsible considering i'm a big name within the industry and i have a large audience i feel extremely responsible that i disclose things and disclose these um these kind of investments and stuff like that and as i said i put it i'm still putting together like that little website that i have that just got to get it done that actually lists what assets that i hold like not just the private

investments that i made but what liquid assets i currently hold and stuff like that uh and then yeah i mean it's funny because i when i sold 25 of my git coin airdrop i was like radically transparent about that in the discord channel and i even said like here's how much i made here's how much i'm paying in tax this is my net and i don't know i just feel a responsibility to do that but you won't get that from most people unfortunately um most people will not tell you when they're selling um they'll pump something up to you even after they've sold maybe they have more tokens left and they want to sell uh some more there but they won't tell you when when they've kind of like offloaded their positions um but they will tell you when they're bought because i mean you know when they

buy because they'll be shilling it i mean they would have already bought i mean there's a saying that goes fill before shill so feel yourself fill your buys and then start shilling it to your audience so if you ever see people talking about something on twitter an asset or whatever it doesn't have to be an erc20 token it can be like an nft or whatever i guarantee you that um you know nine times out of ten this person has already loaded their bags and they're shilling it to you because they want their bags to go up especially those with a larger audience especially those that are kind of like pseudonymous on twitter they have like a random profile picture their real name isn't attached to it or anything like that they're taking advantage of that and i'm not saying it's everyone but it's a lot

of people unfortunately so yeah hopefully that gives a bit of color there on that kind of topic don't know what's gonna happen with nate i mean the reason why i thought this was so weird that nate would do this is openc is a rocketship company they have growth that makes uh you know all kinds of investors eyes water it's just ridiculous and apparently they're looking to not do a token they're looking for an equity exit which means going public and you know it's safe to say that that opens going to be worth tens of billions of dollars if it was to go public now uh nate being the head of product at this company would have equity in it and his equity stake is potentially worth you know probably tens of millions of dollars if if not more depending on how high the valuation goes

and he apparently only made i think 198 from this insider trading it just seems really weird that he would do this especially knowing that um you know if he got caught he would uh probably lose his equity stake in open c and he would get fired and all that sort of stuff so it's just it's it's super weird i i don't get it it feels like i don't know i'd love to hear his explanation for this but i don't know if we'd actually get that but yeah it's just it's just super weird and it's a shitty thing to have happened but i think um we'll see what happens with him in the in the days going forward maybe uh and yeah generally uh i just keep in mind that this start kind of stuff is rampant within the industry it is not unique to open seas not a unique

to nate not unique at all it is everywhere unfortunately anyway i'm going to move on from that topic for today there's something else that i wanted to talk about something more positive which was this tweet from apoorv uh latvia here hopefully i said your name right there um he's he works at smart contracts development at zappify here but he basically put a tweet out where he said iphone prices in eth at their launch and you can see here the iphone 6s which was released on the 25th of september 2015 had a price of 690.418 uh and at the time i think 8th was trading around 94 cents uh back then um if i'm kind of like doing my math correctly in my head 94 cents for eighth god um and then you can kind of go down the list here and see iphone 7 was 57

eighth and then iphone 11 was 3.7 and then iphone 13 the one that was just announced 0.248 now the reason i want to talk about this is this is something that i wrote a newsletter about today uh in the deadly way newsletter and i titled it at low time preference which essentially is a a concept of um that bitcoin has kind of like been uh i guess uh uh championing for quite a while where they basically say that if you have a low time preference you're putting more emphasis on the long term than you are on the short term and vice versa if you have a high time preference you're putting more emphasis on the short term over the long term now i always try to uh kind of like bestow upon refuel watches and listeners the advantages of thinking long term especially in an industry that feels

like it takes an eternity to do anything because uh this industry is so incredibly fast-paced but if you zoom out and kind of look at where we've come from especially on i guess like the investment side of things it's quite crazy because 20 september 25th 2015 was what six years ago um and you could buy i mean i think the original iphone 6s was 649 for the base model so you could buy um 698 with that instead of uh buying the iphone 6s and then two years later you would have sorry six years later you would have 2.4 i think million dollars from that investment now don't get me wrong this is like not a one-to-one equivalent thing here because like back in the day

i mean at that time ethan was incredibly risky as an investment i mean anyone who held since then has like their diamond hands have diamond hands like it's it's very unlikely that most people held since then and also an iphone offered you much more utility than eth did back then if the ethereum network back then was nothing essentially there was hardly anything you could do on it i mean it was super early that never could be in life for like three or four months um and you could you couldn't really do anything with your eighth uh so yeah but i mean the utility kind of like argument that doesn't fall into this at all but then you can see over the years that as ether has gone up in value and as more iphones have come out i mean really you would have been just being better

off buying eighth pretty much any of these years i mean obviously during the the bear market um it may have been better off buying an iphone instead of eighth just briefly but then it just keeps going down you can see that's that's the kind of trend here but i guess on the topic of low time preference the reason why i i try to kind of like push this on on on on everyone and not push it on everyone but kind of like try to advise people to take a more long-term look is because there are countless examples out there of uh people with a short time preference or sorry high time preference short term outlook that have gotten themselves blown up and have kind of like exited the industry only to come back later and regret it so for example if you're a trader and you're trying to

trade things especially on leverage you can blow yourself up really really easily and then what happens when you blow yourself up but one or two things happen you try to one you make you may um take it in stride and be like okay well i'm gonna build my position back up this is fine or two you kind of like say oh screw this um you know i'm wrecked i'm just gonna like exit this industry all together and then you might come back later and be like wow why did i do that like i should have stuck around you know and and i have experienced this myself from earlier on when i kind of i didn't blow myself up in in 2014 when bitcoin kind of like crashed from its all-time high back then but i did sell what btc i had and i missed until early

2017 and i regret that i really do and i've been trying to make up for that ever since and i think i have made up for it at this point but still it's definitely a big regret on my end uh and that's why you know and if i had just taken the longer term approach if i just stuck around in this industry i would have uh you know from back then in from 2014 i would have had both uh incredible you know growth on the investment side but also on the social side as well uh which i have now because i stuck around since since the you know the kind of like bear market in 2010 and 2019. um but like i think the perfect example of something that may feel like it you know it takes forever and and kind of like uh and then once it actually

happens it feels like it's always been with us is erp one five five nine so you know you guys know that one five five nine took what two plus years to come to the ethereum main net from i think may may 2019 to like uh july 2012 sorry august 2021 so over two years and during that time we had a brutal bear market right 2019 was really brutal 2020 was still pretty shitty until like mid-2020 um and and all throughout that time we yeah we had the week eighth price action we had lots of misinformation about ethereum we had constant fud we had um doubts about one five five nine even ever getting to main net but now that it went live six weeks later we've burned over three hundred

thousand eight which which is over a billion dollars worth of eve so see how that kind of thing happens where it may have felt like an eternity for those two and a bit years but now that it's live it no one really talks about 1559 too much anymore because it's live it's doing what it's supposed to do um and it's it's obviously still very bullish because it's just burning in perpetuity um but it kind of like feels like okay well we did that what's next sort of thing so if you take the longer term outlook and kind of like have that low time preference you benefit from this because if you had done that in 2019 if you had bought eighth back then anywhere from one to two hundred dollars which is what they traded at for most of 2019 sometimes it traded at as high as

like 360 but only briefly during i think like mid gr so if you had bought kind of like during 2019 even 2020 up until like mid 2020 between one to three hundred dollars let's say i mean you're sitting on at least over a 10x at this point even if you bought at 300 um which is an incredible return for what like two years one to two years or something depending where you bought uh two and a half years maybe at most there and that's just because you took the longer term outlook you took the longer term view and not only did you benefit from that as well i mean you were part of the ecosystem you got to benefit from everything if you played it right benefit from being early to d5 being early to nfts um and of course obviously being early to eat and stuff like that

and everything else within this ecosystem and if you you know chose to grow your own personal brand during that time then you know you have like a really great job a really great way of doing that as well and it's just funny because we've been talking about proof of stake for a long time as well even longer than one five five nine that went live in december and now we're just talking about the merge and everyone's really hyped about that it feels like it's taking kind of like forever but once it happens you know we will have all been like very well much better off by having a low time preference because the merge in my mind is like a hundred times more bullish than one five five nine is for the price of eighth but not only that it also it also takes ethereum off proof of work

which has a number of benefits in my eyes and it basically de-risks ethereum absolutely massively for a lot of institutional investors who may be viewing this as like a major upgrade that could that could go very wrong which you know i mean to be fair could go very wrong there's always that possibility but once that happens i think that the uh the execution risk and just like risk around ethereum in general goes way way down and then after that we focus on getting sharding out the door and other kind of like such upgrades so yeah always pays to have a low time preference within crypto of course and thinking more about the long term anyway i'm going to move on from that for today so bartek here uh put together a really great thread about kind of like arbitrary and what their sequence are going down meant for people uh uh kind

of like um for that hour that it was kind of like down and this thread i mean i'll link it in the youtube description you can go check it out but it basically says here the arbitrary chain effectively reduced itself to l1 ethereum with regards to cost and speed but it never stopped working right and i mentioned this on the refill of the other day so he goes how is this possible and why does the l2b website claim that users should propose blocks when the operator is down well um the operator so i mean like the sequencer being down didn't doesn't mean that the validators were down so you were still able to kind of like get your transactions in on layer one um yes the costs were obviously higher and everything like that but because the validators were still online it was all well and good right which are basically

like the um the the kind of like things that validate the transactions of course the sequence that kind of puts together the transactions and stuff like that but this thread does a really great job of breaking it down on the technical level here so i recommend reading this but this just again speaks to the fact that layer twos on ethereum are the correct way to scale ethereum um it means that we can keep layer one as decentralized and secure as possible so that we have like a basically zero percent chance of layer one going offline and then if the layer twos go offline the users are still safe so they get to enjoy the benefits of scale and they get to enjoy the benefits of ethereum security and decentralization which i go on about a lot of course but definitely read this thread from bartek

it was a really great overview of what happened with arbitrary the other day um a little bit of a teaser here from oh okay put that down there a little bit of a teaser here from uh jasper who basically put together a social interface for the internet of value which is like a mock-up of twitter you can see on the video here where he's basically just created um a mock-up wallet within within twitter and kind of like it looks very similar to like the rainbow wall which i think is what inspired him on this and he's got videos of like different nfts kind of um being able to be displayed on twitter through an integrated wallet it does look very similar to rainbow but he does mention here that um you know the concept borrows from from what rainbow rainbow's doing which is a mobile wallet

app but this is really cool uh and unfortunately i don't think this is gonna ever happen because jack does he's a bitcoin maximalist so unfortunately i don't think this is gonna happen but i mean this is just another reason why we need more web3 native tools because i don't like the fact that there's someone at the helm and it's you know of twitter it's totally centralized and you know there's a very low chance that that would integrate something like this but this is solely needed and this would be really cool for people to kind of like integrate with their twitter profiles because we're all sitting on twitter all the time you know why not have your wallet there like how amazing would that be and have your nft collection there so people can come and look at your wallet look at your nft collection or within the twitter app i

think that would be really awesome but you know not holding my breath for that but still really cool mock-ups here i'll link this in the youtube description you can go watch the the full videos if you'd like all right so oasis has announced that uh their new feature called oasis multiplier is now live so you can now increase your exposure up to four times in a single click um on maker so for those who don't know oasis is an interface into the maker dow smart contracts we i use this all the time when i'm interacting with maker but essentially uh what this allows you to do is up you know obviously put ethers claral within makeup borrow or die against it but with their new multiplier feature it basically get allows you to um uh you know redeposit your deposit your collateral um and get and get kind

of like four times leverage on your eth automatically uh for like leverage uh trading and you know it maintains the security of the maker protocol as well so you can see here there's a there's details about like how how oasis multiply functions and how it all works and everything like that um and how kind of like it all handles it for you in in the background here and how it all works under the hood so definitely go check this out any links in the youtube description i'm going to get through the rest of this stuff quickly because i'm coming up on time here um sanket from from polygon announced that the polygon pos bridge widget is now live so any dapps that can use this bridge wizard widget um and uh integrate this directly into their app so that they can allow users to bridge

between ether and the polygon pos chain via the widgets you can see here that if you're kind of i guess like an app like say this is uni swap if for example your units up front end you can integrate this bridge right into your app and then allow users to kind of like bridge in or out of the network um without having to go to somewhere else like obviously right now you would have to go to the bridge itself on a different kind of like web page but this kind of like allows developers to integrate this directly into the app which i think is great because this is the kind of seamless ux and uh user experience that we want to see uh when it comes to these bridges we don't want to have to send people to different websites and and different kind of like

places in order to bridge we want them to be able to bridge from directly within the apps that they're trying to use on these different networks so i think that was a really cool release here from polygon and then finally the block put out this uh kind of like piece today saying that binance is abandoning the the concept of a decentralized headquarters after some regulators think it's dodgy this is just continuing the kind of like reckoning that binance is facing from regulators and it's funny because i always kind of like thought whenever binance said this and saying oh we're a decentralized headquarter we're not actually based anywhere physically i was kind of like well that's total because i mean if this is true you're going to get absolutely wrecked by regulators and it turns out it's not true regulators think it's dodgy that binance is actually just

like trying to perpetuate this narrative as kind of like some kind of marketing of course and you know as i said this just continues the the kind of high regulatory pressure that seems to that binance seems to be under right now and it's really been like a fall from grace i mean even at the start of the year everyone was kind of like talking about binance they were loving cz they were talking about finance smart chain and and it felt like you know he was he could do anything and i remember saying her friends at the time i'm like i think cz is flying too close to the sun right now um and he's getting too cocky and it seems he did the regulators came for him like he's not doing defy he's doing c5 of course they're going to go after him and i actually think there's a few other

people in this industry right now that are doing this and i'll name one of them i think spf is doing this with with um with ftx and stuff like that he's not i mean he plays it smarter he doesn't do kind of like these sorts of things but i definitely think he's playing uh he's flying too close to the side he's definitely gonna already have the attention of regulators given how big ftx is and how big it's getting and how many kind of like how visible he's making the exchange through kind of like i guess sports partnerships and stuff like that and very heavy advertising um but maybe nothing comes of it who knows maybe he's already kind of like dotty's eyes and crossed his t's and he's learned from from cz here but generally if the regulators are going to go after anything they're going to go after the

easier targets and for them there's no easier target than exchanges and um uh you know i don't think ftx is based in the us they do have a u.s subsidiary but i think it really matters at the end of the day i think regulators no matter where they are in the u.s or otherwise are going to go after decentralized ports of entry first and then they'll try and go after d5 and they'll discover they really can't if it's actually d5 it's actually decentralized finance and then they'll just revert back to going after the more centralized things like exchanges and stable coins even some of these centralized stable coins but anyway i think it's just like funny to see that this continues and i'm going to keep an eye on the regulations of course because that's a big deal in crypto always but i think i'm going to end it there for

today so thank you everyone for listening and watching be sure to subscribe to the channel if you haven't yet give that video a thumbs up subscribe to the newsletter join the discord channel and i'll catch you all tomorrow thanks everyone