The REKT Brand Token Thesis - CEO OSF

Transcript

And the next iteration of it all, I think, is web 3 and crypto. How does web 3 get integrated in a way where it makes sense for people to be a part of it? And I think we're a first mover in that. We're definitely a first mover in that in the beverage space. And that's how I think we have something different. Other founders or people that are trying to understand how to create this unified incentive structure when sometimes the equity and the token are two separate things. as you guys are shephering and pilgriming like into those other industries, you're going to have some sort of value acrew back to the token in a in a regul regulated compliant way.

>> Welcome back to the rollup. We are your hosts. I'm Andy. >> I'm Robbie. And this is your home to learn from the biggest guest, the brightest minds at the tip of innovation. >> Our goal is to help spread the collective knowledge of everyone in our community. >> We are breaking crypto out of its echo chamber and taking it to the real world. Yeah, let's get OSF up and then we continue conversation shortly. Show man, >> thanks for having me, guys. Pleasure to be here. >> Fantastic.

>> 12 set up for that break, brother. >> Well, I've run out of space to keep all the drinks in the kitchen, so I have to keep them in my office now, basically. So, >> more money, more problems. You know what they say, Rob. >> I like the packaging, too. the yellow and the purple pops. >> That's the moon page rink we're um launching very soon. So, it's um first time the first time people will see it on the on screen >> and and I call it wind of wind of an abstract drink. >> Yeah.

>> This one right here is the abstract one. We did that one back in um >> yeah um April, I think. >> Do have these have caffeine in them? These don't at the moment. >> Okay. Okay. >> At the moment. So, these are just flavored sparkling water, you know, like no caffeine, no alcohol, very little sugar, just pretty run of the road, but we are working on other products that we'll be releasing later this year and next year, which will be a bit different. So, >> awesome. Awesome. >> Okay. So maybe maybe for our community kind of new OSF building lay the foundation for us and then this be a fun conversation kind of the whole brand what vision how did this come about?

>> Yeah for sure. So I mean >> it came about in quite a random way. So our original project was an NFT collection called WT guy which we launched um like three and a half years ago. It was back in 2022 and I did the art for it. Like I was the artist for it and it really was just a side project. So I just spent evenings and weekends doing it. Had zero intention for it to be anything big. We had zero road map. It was even a free mint like we gave the entire thing away for free. Um then everything new like markets crash in 2022 and everyone kind of like got wrecked. So people found it as a place to come and drown their sorrows. And I think over the next couple of years, we just built like a very very strong

community and a strong following. And we felt like Wrecked had a lot of potential as something beyond just an internet community and beyond just our Discord and whatnot. So you know, inspired by Luca and Pachy Penguins, we decided to go down the path of making a physical product. And we decided drinks because they're cheap to manufacture. You can massproduce them. And our goal is like how do we get wrecked the brand, the logo in as many places as possible. Especially with crypto, there's quite low hanging fruit because there are events across the world throughout the year where you can have these drinks and it's basically like, you know, free marketing. Everyone wants to drink something. You know, here here's a drink, have it. And it has like a big wreck logo in front of it. Like it's just basically, you know, a bit of a

Trojan horse marketing. So yeah, we went down that path and um you know, fast forward to now, we've sold almost a million cans in the space of about 12 months. And it's all powered by our brand coin, which is Reccoin. And the way that it works is every time you purchase drinks, you're able to earn some of this coin. Um not the first consume to earn product. Like there's been tons of consumer to earn products out there, and a lot of them have failed. But I think the difference for us is we built this brand and community and following for a long time, for years before we even launched the token. and then when we launched it, there was like a natural home for people to to want to have it and be a part of it. So, I think that's the key difference there. But, um

yeah, that's kind of a quick uh a quick run through in a couple of minutes, I'd say. >> Introducing extended exclusively on Stark, a nextg per trading platform live today with 50 plus trading pairs from crypto to tradi. You get the best experience on chain today. Deposit in the community vault for attractive returns EMV compatible and engage in unified margin spot trading lending and per trading exclusively live at extended.app on stocknet today. >> I think uh I I I'd like to get direct drink sponsorship so that way like >> let's go so we can >> when I'm sipping on the stream.

>> I got regular coffee here. I'm not sponsored by Hydro Hydro Flask. That's why I asked if uh if there's any if there's any um caffeine in those things because I was like, "Look, man. I wanna I want to get into this uh I want this wrecked drink sponsorship." We'll have to ask OSF when he gets back. Rob, I mean, look, we'll talk to OSF about this kind of community NFT equity dynamic. >> I want to get Yeah. >> Yeah. I want to get his perspective on like what launching a chain means for a consumer brand because I think we're, you know, the rollup is maybe closer >> the brand coin. Yeah. Werecoin, >> which they've they've launched ticker, you know, hash hashtag wrecked.

>> Yeah. >> And so I think, you know, the roll up as a media brand is probably closer to this consumer, you know, in this case a beverage brand. Even though there's physical products, I think we're closer to it than maybe, you know, a blockchain. Uh, and so when it comes to launching a coin, it's like what is the mechanism here? Like why why the coin? what's the value acrruel like and just kind of getting his uh >> I've been just talking to Chain Yoda about his pump fund streamer coin and it's been a it's been a funny All right, it's been a funny kind of couple days talking about it. All right, we got OSF back. I think his audio is fixed so that folks we'll get him up. Um and he's back >> you we were just talking about a couple

of things actually. One is >> well let's collab. I mean I'm drinking coffee out of a hydro. We're not sponsored >> here drinking a Yeti. I mean I could just be sipping wrecked every day. We will uh yeah, I'll hit you guys up afterwards. We'll definitely send you guys some drinks. For sure. Definitely. Get them on >> stream. We'll just be sipping. That's why I asked if there's a caffeine one, but I imagine there's like FDA requirements and more kind of headache when you start to put different things in the drinks. >> Yeah, it's not as easy when you just do sparkling water. It's pretty easy to roll it out. So, caffeine products, energy products take more time and you know, especially these days, stuff like caffeine drinks, focus drinks, um that kind of stuff is like quite massive.

But, um just takes a bit of time. But yeah, we will uh we will get there for sure pretty soon. >> Yeah, man. >> Let's do it. >> Well, dude, we're super curious about this brand coin, right? Like this idea of a token which represents uh some sort of speculative community and brand value in a brand. I mean, look, like there aren't very many of them. I mean, I think we've already talked about, you know, Pudgy Penguins. We're obviously big fans there, but like there is this new idea of streamer coins of and now brand coins. maybe you could uh kind of unpack the phil the philosophy of a brand coin and like how you see this democratization of I guess speculative ability of people's brands and ideas

globally and how you kind of see this in Rex's case. I think you guys have a very strong community around this REC token also had an insane run this uh this last couple months. talk to us about what what this brand coin idea is and how you guys are harnessing this power with rectings. >> Yeah, look, I think it's very important for this world of meme coins and speculative coins and everything, right? Like why does someone why does a traditional finance person usually buy something? Because they think it's cheap. Why do they think it's cheap?

Because they're using some sort of valuation model based usually on cash flows to deduce that this is cheap versus where it's trading. Right now, if you have something like a meme or a creator coin, how do you value that, right? Like it's hard, you can't really judge the cash flows. Maybe you can look at volume and you know the rewards it generates, but it's very hard to judge that, right? It's just it's completely finger in the air. But doesn't mean it's valueless because people have sentiment. People sometimes they want to buy something to express sentiment rather than just being like, oh, I want to buy it because my evaluation model says this and this is what my quant says, right? That's not how every human thinks or react. So, you know, with every single company in the world or every single brand, you have something called your

intangible brand value, right? It exists for everyone. Why do you why did I buy that $50 t-shirt instead of the other $50 t-shirt? Because I like the brand. I like how it looks or I like how it makes me feel or I like the the brand messaging or whatever it is, right? And every company has an item on their balance sheet called Goodwill, which is their intangible value of the brand, right? Coca-Cola has an 18 billion dollar um line item from the balance sheet called goodwill which is the result of the premium they've paid for the acquisitions over the net asset value. So it's a real concept in traditional corporate finance but it's something that people can't trade, right? It's like it's governed by a one-off transaction by two parties. It's impaired by an accountant over time and it's just this value on your balance

sheet, this number on your balance sheet that is intangible and fixed and you can't do anything with it, right? But with crypto, why would someone buy Rexcoin if it doesn't own the equity, doesn't directly benefit from revenues, doesn't own the IP? Why would anyone want to buy it? Because they like the brand, they like Rex. It's like the whole Roaring Kitty meme, right? I like the stock. Like that's the only reason why they would buy it. But that is, you know, you can you can equivalate that to this is the intangible value of our brand. Why would someone want to buy it for any other reason? Because they like the brand. That's it. That's the reason, you know, why someone buys it. That's the reason why lots of people buy it.

And I think that's a really important concept that most traditional finance people can't get their head around but are now starting to really understand. And that's what's driven a lot of price action in crypto. Like something like SPX, right? People believe it's >> Yeah. Sure. It's crazy. It's at 1.5 billion, whatever, but like that's because there's enough people out there who believe in that as a movement. It's kind of like a a brand kind of. It's not really a brand, but it's >> Coinbase today. >> Yeah. Exactly. So, you know, it's a it's a real thing. And by the way, if you disagree with it, fine, because millions of dollars of volume go through every single day and you can go out there and short it. You can literally take the other side of it. There is a market for it. There's a market that trades every

single day. So, I think it's a really powerful concept and I think, you know, for a challenger brand like us, like for us to compete with Coca-Cola or Pepsi, etc. Like, it's pretty hard to do that, right? But, you know, this unlocks a lot of value for your brand and allows you to do interesting things. And you know for us the token's gone as rewards to our early supporters um who you know have made money on it and will continue to do so if we do well. So it really aligns your consumers with you know your vision and kind of makes them into stakeholders. So I think it's a very powerful concept. It's not I'm not saying anything new right all this stuff has existed in crypto for for many many years but I think we've just applied it to a traditional business and product

that people understand. And what I found with this messaging for a brand coin is like everything in crypto when I try to explain to my normie friends, they don't get it. But this is the first thing I I just explain to them and they're like, "Oh, I I get this, right?" Like it's like loyalty points, but I can actually sell them and get real money for it. Like it's a very simple concept, but you know, unlike loyalty points, it's not unlimited. There's a fixed supply and um you can actually trade it and and you know, get your money for it. So um I think it's a very powerful concept. you know, there are a few other examples out there. Um, and I think it's a concept that will take off in crypto because I do feel like we're at a point now where people are kind of tired of just

mindlessly trenching and I think they want something a bit more >> with a bit more substance behind uh behind the coin. >> Yeah. I mean, I think you're totally spot on and and and I think you actually get to a a broader point here which it seems like you guys have addressed just based on some of the initial research that we had done which is that there's kind of this dichotomy right now in in crypto which was around the labs and the foundation entities of certain of certain you know coins. So there's like like the labs equity and the foundation token and so there's kind of like this equity versus token dynamic and now we're seeing it at large like unis swap was thinking about I think and they still are about going and like IPOing

the unis swap company for the equity but then they have the token and same with like same with something like a punchy penguins. What if they try to do an IPO? How do you kind of balance this equity versus token dynamic? And so from what I understand is that you guys ended up giving some either like token or equity if you will to NFT holders and then have figured out a unique way to kind of like merge these two so the incentives are all all aligned. Maybe talk us through like any advice or thoughts that you have for other founders or people that are trying to understand how to create this unified incentive structure when sometimes the equity and the token are two separate things. how how how have you kind of managed this situation and and what is some thoughts or you know

what are some of your thoughts on on navigating this for other crypto projects? >> Yeah, it's a good question. So, we you're right, we actually gifted equity to our NFT holders last year. We took a snapshot did it through an SEC exemption in the US and it was all done with an SEC registered dealer broker and everything. So, um my view on that was like okay let's get everyone on the same page, everyone on the same team. you have the team, investors, NFT hold like community and collectors, everyone owns equity in it. So, everyone's on the same team, right? Because in the past, I think you had NFT projects that would raise a lot of capital and then it's like, okay, now we have to like return um value to our investors. How do we do that? We just like consumerize our community and we'll just sell you more

NFTs, dilute you, and make money off you. And then it kind of like changes the the intentions, I think. So um that was a big um a big thing for us which actually put everyone on the same level playing field and yeah it's a good point you know we had the same setup where our company the operating company that owns the IP and all the drinks revenues go to is Delaware registered company and then there's a Cayman and found it an offshore foundation um where the token sits. I think now in this regulatory environment you could you would just do it all out of the US because it's much more um conducive for for crypto activity in the US and unfortunately we were um you know a year 12 months too early for for that like like many people

but there I think there are very clever ways you can combine the two and um I think there are so many so many very very big crypto projects out there like way bigger than us unis swap is one that you mentioned like tons of them who all have this setup up right so I'm convinced that there will be some sort of solution to combine this setup in a way where it makes sense and makes it efficient whether it means two entities get rolled into one entity and that's what you know comes to the market um when people IPO and stuff or um there are other I think clever ways that you can combine the two or at least you know um have the value acrewing to the the final entity that people want to be at.

So I think there'll be ways to do it and yeah it's tough to get your head around whether you want to want own equity in something if you want to own the token. We're moving to a world of potentially having tokenized equity. So how does that change things? And I think you know for for someone like us we have to think about ways where if we do see a world where every equity is tokenized and private equity is tokenized there needs to be some sort of value acrruel to the token from the equity but within the confines of you know securities regulation and all that kind of stuff and whether it's something like okay you can burn the token for the equity and can you work out the the mechanics around that so it makes sense. I I'm not really sure what the answer is, but um

you have to I think every project has to start thinking forward for that and find ways where you ensure that the token doesn't get left behind. So, um and I think there'll be solutions like I said earlier. >> What do you think this looks like in a six months to a year? I I take you guys are probably going to try to expand out of the crypto brands and start to, you know, scale the drink beyond this industry. And then as you guys are shephering and pilgriming like into those other industries, you're going to have some sort of value acrew back to the token in a in a regul regulated compliant way. Um where do you guys see yourselves in in six months to a year and then and then how do you think that'll link back to the token?

>> Yeah, the easiest way to get value to the token is buybacks, right? Um you know, Hyperlquid is is case in point for it and that's the gold standard. I think um we've done a handful of buybacks with drinks revenues already. We don't have a specific mechanic in place for it yet because you know like I think we're probably on course to do something like $5 million of revenue this year, right? And let's say 10% goes back towards buying the token. That's 500k and people are not going to get excited about that. But let's say you do $100 million of revenue which I think is very possible in the functional beverage space and 10% goes to it and you know just making these numbers up that's $10 million and people like oh that's a lot of you know that's a lot going up into token

buybacks right but you want to announce it at a point where people get excited about it and it means something and I think you have to build the story before you start doing that and I know Luca has been asked this question a handful of times and there was a um he did a podcast last week and he t spoke about um his strategy for that and I completely agree with with his ideology on that too. Um in the f in you know the next 6 months we have to break out of web 3 like I think we for us to hit $100 million of of revenue which I think is very possible in the space we're entering. Um we have to start appealing to normal people the product itself has to be good. Um what I would say is in the last 12 months you've had four

different functional beverage companies. Lollipop, um, Poppy, Alani Nutrition, and Ghost Energy, who've all raised capital or been acquired for valuations between one and a half and$2 billion dollars. And these are like new companies. They're like 5 to seven years old. They're not old companies, right? And they've done it in a very short space of time. And the drivers of their success have been entering the functional space. So whether that's like energy, focus, hydration, like all that kind of stuff is is massive right now. >> And the other thing is social media. like all these guys have been killing it on the social media front had big Instagram followings have influences all that kind of stuff and I think you in terms of the history of brands you've had the first iteration was like physical stores people going to physical

stores buy stuff then you had the internet I go on to Amazon buy something then you had social media stuff like Prime okay I see Logan Paul drinking like I want to drink it and the next iteration of it all I think is web 3 and crypto how does web 3 get integrated in a way where it makes sense for people to be a part of it and I think we're a first mover in that we're definitely a first mover in that in beverage space and that's how I think we have something different that we can combine the two things to do something really special I think and that's the that's what we're pushing towards. >> Very cool.

>> So OSF is or um Rect is sitting at 330 mil FTV or so right now. How do you get this thing to to to two or three bill? What's the 10x here? >> Yeah, it's a good question. And I think um when people start seeing that revenue, topline revenue number go materially higher, that's when people get excited. Like we're going to end this year at 500% higher revenue than we were last year. So that's already Yeah, it's already like a massive massive increase, right? We're on course to sell a million drinks in our first 12 months, which I need to verify this, but I think it hasn't been done since Red Bull in the 90s or Mike lemonade. So all this stuff is like only possible within crypto, right? So, um, within the crypto space, people want to see, oh, these

guys are actually selling drinks in supermarkets or they want like a pudgy style Walmart headline and now Rex, yeah, now Rex has stocked across thousands of stores in the US and and globally and it's a product with a massive target addressable market. If we can like nail that story and those revenues, >> then I think people will be like, "Oh this can be really big." Right. That's the Yeah, go ahead. Yeah, go. >> Where are you guys now? Where can where can you know we buy rent? It's just D2C from our website. We we did a 7-Eleven um store activation a few a couple of months ago in LA and then we'll have some stuff coming up later this year, but right now all our sale the major vast majority of our sales have been

just DTC from our website which >> some people say oh that you know you should be in more stores and stuff but I think the fact that we've done that amount of sales just from our website you you go tell that to a distributor they're like oh like we should be distributing this you know nation wide, right? So when we start doing that, you have to imagine that number goes up a lot, right? The number go does another 3x, 5x, 10x, whatever it is. So that's the story for it. You have to we have to build our credibility in the traditional beverage space, right? We have to show we're not a one trick pony. We have to show we're not crypto scammers. We have to show there's a real business behind it, a real community behind it. But over time, we've been proving that, you know, it was hard

after our first sale, but now after our fifth or sixth sale when all the drinks sell out in a couple of minutes repeatedly, like there's a strong story there. So, we'll have more announcements and and some big stuff, I think, coming up before the end of the year and also next year. But that growth for like um you know, for like just a drinks company um can actually be pretty big. Can actually be very big. And we have something unique, I think, to that industry that no one else has. >> Man, I'm telling you, the Roll-Up TV daily live stream sponsorship is going to send sales to the absolute biggest stratosphere. So, just get those things ready, boys and girls. If you're watching this right now, I'm going to be sipping on WCK. Um, OSF, I I wanted to further zoom in a bit more on this kind

of 10x here for Wreck token, right? I mean, whatever it is, kind of getting to the next level. You you did mention some of the buybacks, how you felt about that. Luca did have a clip that I saw go pretty viral recently saying and the the text was just buybacks are stupid. I wanted to give you a chance to piggyback on that. Maybe we'll quote tweet that with with the clip here. Like do you agree firmly that there's a certain level in which buybacks should occur? Do you think that that that that it's kind of silly in the early stage to be just buying a token instead of investing into the business kind of what is your honest brutally honest take about buybacks with regards to WCT and the RECT token on its mission to kind of you know 10x from here to to the multibillion dollar FTV

mark. >> Yeah. So look um people are obsessed with buybacks because of Hyperlid right but Hyperlid is not the only project in crypto that does buybacks. It's not the first project that does it. You have had stuff like Radium, stuff like Rollbit, a lot of the casino stuff has have done it and they haven't worked out, you know, they they haven't really worked out. Even though you do the maths and the fees being generated are crazy and the token should be a lot higher, they haven't always worked out. The reason why it makes perfect sense for Hyperlid is because they have that thing fully greased up and running. It's a machine. It's a machine that prints revenues and all they need to do is attract more users and it makes sense to just, you know, spend those fees and buy their token. That business model makes perfect

sense. But when you're growing a brand, whether it's pudgy, whether it's wrecked, um your growth comes is, you know, a result of how much money you spend on growing the business, right? So, if we just sat here and put all our revenues into buying back the token, number one, we'd be we'd be on tax basically because token buybacks you can't offset against your corporate tax. Number two, every dollar we spend on that is a dollar we could have spent on growing the business, right? to like you're not going to we're not going to make this thing go we're not going to 10x our revenues just by buying back RC coin. We're going to 10x our revenues by getting a big distribution bill, being in thousands of stores, like spending a bit on marketing to get um the presence of Rex like much larger in the web two

space in the traditional space. Like these are all the same things that are probably going through Lucas mind where it's like, okay, we can make Pengu massive like in the world if we spend money to grow the business. And then when you get to a certain point where it's like, okay, we have a massive 9 figure annual recurring revenue rate now. It's time to like start buying back the token. But guess what? By that point in time, your token is going to be higher anyway. Like your token goes up because of the success of the underlying company and the business and the brand. If we kill it and if we don't buy back any tokens from now until let's say 2027, but we 5x our revenues and we have, you know, a massive presence as as a drinks brand, the token is going to be

higher. It's just going to be higher. I mean, we're, as you mentioned, we're up a lot in the last three or four months. And the last buyback we did were in like April or May. Um, and just in that time frame, we've just been killing it on drink sales and we're up. It's up whatever it is 2,000%. So, um, I think people just get so obsessed with like, I want to have this buyback mechanic, but you don't necessarily need it because, um, people understand that this is how businesses work and compare it to stock buybacks, right? Like people don't just sit there and buy back their stock all day long. They buy it back when they think it's cheap, which another thing that Luca was talking about, and they buy it back when it makes sense. So, um I think in the early stages of growth it

doesn't always make sense. Um we bought back tokens this year because we thought it was extremely cheap versus what we had planned and and what we've the business has. And if those opportunities present themselves again, we we will buy buy back tokens. >> Yeah. Well, that's the thing, right? Is like Lucas like why am I just going to bid my token up in FOMO when I can just set actual bids lower where where we think there's fair value and try to create more of a floor >> rather than try to chase my own coin. So >> yeah, I gotcha. What is it like working with uh uh Faroke and the FOMO hour guys and the and the other team members kind like what are some of like the you know if you had to glaze some of your uh awesome you know friends and and team

members like what are the what is the one or two things that like create separation from an entrepreneur perspective for somebody like Faro or some of your other partners? like what are some of key characteristics and I'll give an example is that I you know I've I've I've noticed that meticulousness in in everything across certain investors and entrepreneurs which I it is very very common that they want to do everything just right perfectly and have a meticulous desire to to to have everything be exact. Um, and I found that that is a a trait of somebody, you know, who is who is going to, you know, do big things and kind of be able to scale at a higher level. Curious with

some of your partners and and close friends, what are some of the things that make them great? Um, you know, that you've picked up on for yourself and your own abilities. >> Yeah, look, I've known like Faro pretty much since I joined crypto in 2021. Um, Mando I've known I mean I've known him for about 10 more than 10 years now. We used to work together before entering crypto and I think the main thing about all these guys anyone who's really successful in the space is they don't people stick it out through the tough times right they they give they don't give up during bare markets I mean forex been cancelled like 79 times right like most people will just leave but he's stuck it out and now he's doing very well I mean the guy interviewed Trump

right like like last year probably the biggest possible interview you could land in and the biggest thing he could do in his profession so um these guys will just stick it out through the tough times and that's what you need to do because a big part of crypto is getting people to buy into your personal story and um if you're someone who just turns up every day through a two-year bare market whatever keeps building keeps trading keeps offerings advice whatever it is that you do but if you're just there and you're like yeah I know this is but I'm just going to stick it out just because um people will remember that and then when the times are good you have strategic advantage versus other people because they're like, "Oh I remember that guy. You suck it out the entire time. Didn't just like sell the

top and leave and then come back, you know, like no, everyone hates that guy, right? People like people like the people who stick around." And that allows you to build a following and and you know, build get people to believe in what you're doing. It doesn't really matter what it is that you're doing, people will believe in it. And that I think is the most common trait of people who I perceive to be successful in this state in this space. >> I I appreciate that. No, I think you're right. I mean that that has led to a lot of our brand's growth just in this last 18 months. People are like, "Oh, >> what is the rollup new?" Like, you know, like the last year I've seen you guys everywhere. And I'm like, "Dude, if only you saw us five years, you know, just grinding, right? Just to get even to a

point like even this whole live stream thing is like it's just a just this constant iterative process, right? And and so I think you're you're you're spot on there. wanted to kind of even zoom out even further a bit more of a broader question as as well outside of just like what you guys are doing with the uh with the partners and the team just more broadly on on uh growing your audience in the space. Um what have been some of the most impactful things that you've done either with your audience or to grow your audience um that other creators can learn from. Right. So I've got like 71k on Twitter. I see you're in the couple hundred thousands. Obviously, it was a big 2021 retail cycle, but you've done a lot of things right. What

are some of the things that you've done right in growing your audience? And then what are some of the potential mistakes that you've made that uh other creators could learn from as well? >> I think there are two in this space. There are probably three reasons why someone would follow someone and they're probably that probably condenses into two. One of them is you just find someone funny or entertaining or whatever. Like if you if someone posts good memes, you follow them, right? The other one is like if someone's giving out good advice. If if it's good, helpful, useful information, good advice, like yeah, I'll follow that. And the third reason is if you perceive they can make you money, which is kind of like similar to the one before because you know they're related things obviously. So for me, I think um

I think I gained an early following because I just I don't know did some good trades and I kind of like I'd write out like my thought process and stuff. I was never I've never really been like a pump and dump type person, you know, like I just it's for me it's not really like that enjoyable to do something like that. And I think every time I've done trades, I've been like, "Hey, this is my thought process behind it. Here's what I've done. Here's where I think it can go." And then, you know, if I've made money or if I've lost money on it, you own up to it, right? Like you you have um you have to be honest with your followers, I think. So, but I think, you know, having had some early success that helped me gain quite a large following, but I think being direct and honest

about what you're doing is is better. you know, is it's better to say, you know, for people there are people out there who get paid to sh coins, right? Like that's just like a thing in crypto. So, if someone goes like, "Hey, I've been paid 10 grand to SH this coin, but I really like it and I think it's going to go higher." I'd be like, "Yeah, you know what? Fair enough." Like, maybe you're right. Maybe it does go higher, but at least you're honest. Whereas, someone doesn't tell you they've been paid and they're like, "Oh, this thing's going to go to a bill." And then it's just kind of like, "Okay." And you find out like, "Okay, I wouldn't trust that guy." Right? So I think it's about being completely honest about um what you're doing in the space and being transparent. And I think the second

thing is like how you know can you be creative or interesting and do things where people can make money off what you're doing. And I think for me you know re guy was a free mint have given out a lot of free a lot of my artwork for free. Um our holders got equity in the company for free. They got recoin for free. So there's this like perception that oh if if I keep following RSF and get involved in this Rex stuff like maybe I'll make some money for free. And there are people in our community who've been there since, you know, the first day, like almost four years ago now, who've probably made thousands, maybe tens of thousands, maybe even hundreds of thousands of dollars just from like, you know, sticking around and figuring out like what what we're doing and what we're planning and not really having to like

put much money into it, right? And I think that's, you know, if you can actually successfully make money for people, you will get a lot you will get a large following in whatever you're doing. That's just like, you know, it's just one of those things, right? >> Yeah. It's a principle that we've talked about. I call it economic karma. It's just >> make money for people and like it'll come back around. >> Exactly. Exactly. >> Awesome. Um Oh, Seth, I don't have I don't have much else for you, Andy. What else? >> I got a couple more for sure. Um >> let them rip.

>> Yeah. I'm curious. Do you think like most successful consumer brands will launch tokens? Like do you see this as a viable path for like um I don't know like Pokemon, maybe not Pokemon, right? But like I don't know Yeti this this mug, right? Like is there going to be a a Yeti coin just because like we can or like like how do you see this path between let's call them midsize companies who probably don't have what it takes to IPO nor really want to go through that whole process like do you see the tokenization of consumer brands as a trend that like accelerates or is it kind of kind of just in the early innings like where where do you see this uh broadly? I I don't I don't see I don't see every midsize company doing

it. Um I don't see big companies doing it. Um I I see lots of people trying, but I don't see them being successful at it. And the reason is for a token to do really well, you need to have this massive community around you, >> and the community needs to be crypto native. They need to understand what's going on and they need to believe in it. And it's also it's it's an underdog story, right? It's like Rect is an underdog story. It's like, can we can we fight the big boys using crypto? And that's what people are trying to get behind the story. If Pepsi came and did a token, people kind of, you know, it would it would rip. It would do really well. It' be like a daily runner and then it would probably get sold down. It would get sold down over time because

like, you know, no one's really going to no one in crypto is really going to care to own something like that. It will have some sort of flaw value, but that's it. Whereas there's no mission there, right? It's like what Mad says about SPX and other coins. You you need a mission behind it. You need a mission coin. And for Rex, there's a mission. And it's like, you know, let's let's battle with the big boys and, you know, let's see if we can get up there in the traditional world using crypto. So, if Yeti does a token, like, you know, what's the mission behind it? Why would someone want to own it? It doesn't really feel like there's good messaging there. And I think for an existing non-crypto brand to have a token that does well, they need to spend years in developing and building a crypto community and

following before they even think about doing a token. And then when they do a token, it will be successful. Otherwise, it will just be an extraction event and it will actually be damaging to their reputation. And we've seen that many many times with celebrity coins and whatnot. You know, you guys know the story, right? So, I need to tell you. >> No. Yeah, I totally I totally totally agree. And I see Koopa Troopa like he's pushing out on trying to like get different artists on chain and he's like he's some somebody was like should we hit up Peggy goo to to do a token and he was like look I think we should probably just wait until we have an actual really good use case to present to these people uh that that isn't just like let me scam my followers. We got to kind of figure

out maybe there's a new model that comes out on the consumer side. But um yeah just want to give you kind of closing thoughts man where where can we find you? Where can we buy Rect? Uh how can how can our community get involved uh and support you guys? >> Yeah. Uh my handle on on X is OSF_RCT or if you follow Rect Drinks, we're it's Rects on all our socials, YouTube, Instagram, Tik Tok, X, etc. And um we have our our next drinks drop coming up um very soon. We'll have some some more announcements on that shortly. So keep an eye on the REC drinks handle. And um Rexcoin you can buy on Kraken now. You can buy on Binance US if you're in the US and you know obviously you can always buy it on chain on unis swap. We're on

ETH, we're on Salana, we're on base, we're on Binance Smart Chain, we're on Abstract. So many venues to buy it from. Just check out Reccoin on on X >> OSF man. Appreciate your time. Um great great work and uh been a big fan. So looking forward to getting some WCK drinks. We'll buy them if we have to. We want >> We'll send you some. Don't worry. We'll send you some. We we'll we'll be sipping on the stream. Rob Rick Os great brand. >> Love it. Cheers, guys. Thanks a lot for having me. >> Cheers, man. We'll see you next time. Thanks for coming on.