Rollup: Wall Street tokenized stocks and who wins as stocks go onchain

Transcript

Once we start to add, you know, hundreds of billions of stocks, the TAM and the potential size of of revenues and assets under management, etc. for these DeFi protocols, it just goes up massively. Galaxy just posted earnings over $300 million in profit. Two of our analysts are wild about it. Meanwhile, Bitcoin is fighting its hardest to hold on to 80K and the Federal Reserve is having their FOMC meeting this afternoon. What does all of this mean for crypto? What do investors need to know about all of this? Hello and welcome to Milk Road Crypto, the show that is thinking more and more seriously about tokenizing itself. I'm your host, John Gillan.

Today is Wednesday, October 28th. We will be releasing this episode on Thursday the 29th, and we are back with another episode of the Crypto Rollup. I am joined by two of my Milk Road colleagues, Kyle Reedhead, our head of research, and Martin, our lead analyst. Kyle and Martin are very excited about this episode. So am I. If that sounds good to you, make sure you like and subscribe. Share this episode with somebody who's going to enjoy it. And as a reminder, today's podcast is free and that would not be possible without our partners at Alumni Ventures, giving accredited investors access to private market investment opportunities alongside leading VC firms and Nexo, the digital asset platform that lets you trade, earn, and borrow all in one place, all from one account. So, keep an ear out for more information on both of them later in the show. But for now,

welcome back to another Crypto Rollup episode. Martin, Kyle, gentlemen, how are we today? >> Not bad at all. Earning season. Martin's muted today and he doesn't know it yet. So, I'm gonna keep talking until he figures it out. >> Two of my two of my biggest positions are up 10% since yesterday. So, very good day. >> Yeah. Well, I thought this would be a good place to start. You're a very happy boy. Do you want to talk about your your biggest positions and maybe start us out with Galaxy and your thoughts on their their latest uh earnings report? man, this match that this matched the earnings. Uh they like the expectations were uh I don't know 22 cents per share or something and the numbers came in uh like 80 cents per share. So uh everyone

was really surprised but mainly it's again like every quarter it's the same story. the the the the the most the number is made of is the crypto portfolio that needs to be kind of repriced based on the latest valuations or prices. And so I don't personally like put too much into it that you know the expect like they beat the expectations by a lot. For me, it's more about like look underneath what's happening with their business and it's actually growing pretty nicely. But at the same time now I have more confidence even in their kind of crypto book because

they are using crypto all the time. They're building in crypto. They are, you know, making sure that all the institutional players have all the solutions they need. They also build customized solutions for them if they want to and then they are kind of upselling them other solutions or just have recuring free out of those solutions and products they can resell to other institutions as well. So like overall the numbers were impressive and I added more after the earnings call because also the management finally did really good job and kind of address all the concerns during the call. The call wasn't just 60 minutes, it was actually

like 70 minutes or something. So they were not in rush. They were very transparent this time and overall very good impression. I think a lot of people are now really digging into and learning more about Galaxy. I think yeah >> and for those listeners that are not fully aware of Galaxy it's basically the Goldman Sachs of the onchain economy that's essentially what they're doing and their business is booming crypto side of the business was super profitable um this quarter which it hasn't been you know throughout the bare market but they've made a lot of uh of changes and developments and and basically the entire portfolio of services they provide um grew in the last quarter and then their assets under management grew significantly as well. I

think you probably want to show Martin's uh screen, not mine. Assets under management grew as well. Um it's interesting the company is worth 6 and a half billion. At least it was yesterday did go up 10%. Um yet they have $6.6 billion of cash, stable coins, US treasuries and um and investments which include mostly digital assets. So so the the the value of the company is less than the the the the assets on their balance sheet. Now of course they they do have some debt and some of that will be used for capex as well. Uh but then outside of the crypto side of the business, they also have this AI business um where they're building data centers. It used to be a Bitcoin miner uh called Helios. They've turned that now into a leasing center um for the first tenant is Cororeweave. Um and then

uh which is one of the reasons why Galaxy is is um has been beaten up so much the last little bit because obviously the the core scares in terms of their financing has um has come to light recently. I think and I think Martin agrees that that's you know completely um overblown and that'll get repriced higher. Uh and then lastly they have Helios 2 which they can sign another tenant for. The market has been kind of pissed at Galaxy because they were supposed to announce a tenant in in um in the summer. They didn't um but as Martin said they were transparent. They cleared up why is basically because the supply and um the the supply for what they're offering. So, their data centers and energized data centers um has been reduced and yet the demand has been

increased and so it looks like they turned down a bunch of offers in the summer. So, they can do a much bigger deal with a tier one investment grade probably hyperscaler uh in the next we don't know couple weeks, couple months. So, it's a big business. They're expecting to be at like 800 850 billion AR by the end of next year just on the data center business alone. That doesn't even include the crypto business or the investments. Um so, I just think this company is completely undervalued. It's crazy. And yeah, good to see all businesses firing uh in Q3. >> Yeah. All right, I want to ask a question. Oh, sorry, go ahead, Mark. >> Like for me until this point, like the crypto portfolio was okay, they they have some Bitcoin, some ETH, like yeah, that's fine. Like a lot of crypto

investors hold these, you know, assets. But the venture side is actually quite interesting because um they now see like the things that we do not see. And so like everyone is really bullish on on crypto and like it's going to become the new financial world and like all the institutions are now you know exploring or learning or building in a way to kind of become a crypto as or at least on board their products or services or just infrastructure onto crypto. And because as a result they are also having those unique insights which lets them invest in certain projects that might not be

you know like possible for us to even invest but more importantly to have those unique insights. And so like for me now should I go and buy some Bitcoin, some ETH, some Hype, some Solana because you know I like these layer ones tokens and then try some venture you know adventures on my own or should I just give money to Galaxy and they are going to do that part for me? Now it's like I don't really need to think about that. So, I'm sure there is going to be very tough for anyone, for any crypto investor to beat those guys because of that.

>> And by the way, I know the listeners are probably like, "Well, I like crypto assets because they go up 2, three, four, 5x, so stocks kind of suck here." Um, Martin just did a nice podcast over on the Milk Road Stocks um uh channel. And he actually thinks that Galaxy is going to probably 3x uh in the next little bit here. Um, we think it's so undervalued that this stock should probably be worth I don't know, for me it's like 30 to to $45. It's currently at it was 16 bucks yesterday. I think it's 17 today. It was up 10%. So, um, there's a lot of upside in in this stock here from it. Listen, guys, there are a lot of big names in crypto and you know that they hold a lot of assets, but the problem is that you never get to see all

that information in one place and you also don't know when some of those big names actually buy and sell. Well, we have rebuilt milkroad.com just for this use. So you can see right here we have all these crypto personalities like Justin Sun, Vitalik, Arthur Hayes, Donald Trump. Yes, he's a crypto person. Zack XBT if you know who that is. We have listed all of their portfolios. The stuff that's available publicly right here for you guys to check out whenever you want. If you're curious, what is Arthur Hayes still holding? Did he sell everything? Is he holding anything? It's all here available in our insider portfolios and all that is available for free for you guys on milkroad.com. So check it out right now.

>> Yeah. And I believe Martin said he had a target of $48 if I remember from uh your episode yesterday. But definitely watch that episode for more analysis. Guys, I do want to talk about this because I I hear what you're saying and the the bullish earnings report, you know, was obviously really exciting for for a lot of investors who are bullish on Galaxy. But Kyle, I I want to ask about this undervaluation and where you think this is coming from. Is it just bearishness on crypto? Is it concerns about coreweave spilling over into this? Where is that coming from? because I saw you tweeted that somebody had actually lowered their target on Galaxy despite this great earnings report. What's going on there?

>> Yeah, so I think there's two reasons why it's undervalued. One is the core weave concerns. I don't think we're fully through that. Um, so it's been kind of repriced down that because it's the only tenant that they have currently. The second thing is I find that analysts typically don't fully understand how crypto cycles work. You know, we all, I think, believe that we're in the early stages of a bull market. And what analysts typically do is they look back at the last few quarters and then they model out based off those numbers. So, if you look back the last three, four quarters in crypto, it doesn't look very good, right? Everything is down, right?

Uh and so when you model forward, it doesn't look very good. Um but as we know as crypto people, you know, the when we go into a bull market, the the metrics in terms of volumes, uh assets under management, etc., they skyrocket, right? They they just go exponential during, you know, a year, two years, three years, however long that bull market is for. And analysts really really struggle to to model that. And so I think not only they're under undervaluing the um AI side of the business, I think they're significantly undervaluing the potential of this crypto business because throughout this bare market though, the numbers got kind of bleak for Galaxy in terms of crypto.

That was just because the prices of everything went down, but their business, like the underlying business and their services got so much better. They gained market share. they launch new products, so they can monetize and do so much more heading into this bull market. Um, and I think the the analysts just do not understand that at all. But it's funny, the analysts that are kind of putting neutral on the stock and and are cutting, I think they cut to like 20 or $24. So, it's still pretty good upside from where we are here. And that was after a cut. So, um, you know, that just shows how undervalued the stock is right now in my opinion. >> Gotcha. All right. Well, I think let's talk more about crypto here. I think the big thing that is happening in crypto is this institutional bull run and most of

that is playing out in terms of tokenization. Brian Armstrong of Coinbase tweeted out this morning I believe or or last night um but recently um that all assets are moving on chain and tokenized stocks are a big part of that. He tweeted out a screenshot showing that we have now $3.75 billion of tokenized stocks and500 equities that have been tokenized overall. uh what is the story here and and and you know what does this mean for crypto? >> Yeah. So, what's what's funny is I think it was yesterday uh or two days ago.

This isn't what he tweeted but because it's a little bit old now because we actually had a more than $1 billion mint of I think it was Marll which is um a an AI infra uh that was m minted for a tokenized stock. I think it was on Binance uh in one go. So over a billion dollars of a stock in one shot uh in one moment added to that. So the three point whatever billion it was that that Coinbase um Brian Armstrong tweeted out, we're now close to 5 billion. So that's how quickly this can move, right? Um so we've got Coinbase, we've got Onondo, Xtos, Binance, uh Securitize, Robin Hood, um you know, so many companies that are moving forward with this. We also just had the the DTCC

um their tokenization services live um and you know it's backed one by one all the things that the um the was it the SEC or the CFTC I think the SEC um in their exemption list kind of what they uh required for their innovation exemption um I think this this follows that as well. So, we're just seeing so many companies that are now starting to to um allow for tokenization. And I think again back to analysts not being able to fully understand because Galaxy also is involved in tokenization. I think these numbers are going to just go astronomical uh through the rest of this year and mainly into into 2027. As long as the Democrats, if they take over, they don't do anything to screw all this up. Um but I think, you know, ultimately we've created a better product. Brian

Armstrong said it the best. He goes, "We aren't just creating the best version of tokenized stocks at Coinbase. We're creating the best version of stocks, period." This is the way he said on the last earnings call. And I absolutely love that cuz it's true, right? So, we're competing in the tokenized stocks world, but we're actually just building a way better version of what you get elsewhere. Um, and I think that's why we're going to see this accelerate and and go to I don't know what kind of numbers we're going to hit, probably 100 billion or so in the next year. Like, this can grow extremely fast. We just saw one stock move it by a billion which was basically moving the entire uh supply of all tokenized stocks by like 20% 25% or more even. Um, so it's it's huge in terms of where this can go. And

interestingly, I was speaking to a I can't say the name, but a large exchange um that tokenizes stocks, a public company, and they were talking about their strategy of what they're doing with tokenized stocks, cuz they have um a whole system that they're doing for this. And um essentially what they do is they're working with um a bunch of non-crypto companies, so just normal, you know, public companies. And their goal is to try to get them to tokenize their stocks. And what they're they're sort of um what they're doing with this is they're kind of selling this to public companies to say, "Hey, do you want to upgrade your stock?" So, do you want to upgrade your stock listing? And that's how they're kind of selling this to companies to upgrade their stock

listing to make it also tokenized. And essentially, they're saying there's more features that can come with it. It's opening it up to more jurisdictions. It's opening it up to more uh more potential people, more supply. Um, and so it's an interesting way that they're trying to sell this to uh companies that otherwise would probably not tokenize their stocks and don't really care about crypto. Um, so I just think it was interesting to hear that that's how they're going about this. And so you can just see that there's going to be many different strategies. Uh, and I again I think this number is going to go up a ton. And I think what's most exciting about this is the more that this number goes up, the larger the TAM is for DeFi, right? So, as I've explained before, DeFi can only do so much when it's just

Bitcoin and ETH and soul and and hype being put into their primitives, whether it's a for lending or unis swap for for for trading, etc. Once we start to add, you know, hundreds of billions of stocks, the TAM and the potential size of of revenues and assets under management, etc., for these DeFi protocols, it just goes up massively. And that's the bullcase for DeFi. >> Oh, this is really great. I like it when you're bullish. It makes me excited. Uh Martin, I'd love to hear your thoughts on all of this and you know to build off of Kyle's last point there. Who do you see as being the big winners in crypto from this mass rush of tokenization and equities coming on chain? Is it the dexes? Is it L1's? How are you thinking about that?

>> Well, pretty much everyone. Um so, uh because more assets mean like >> you know more liquidity, more volume, more users, more use cases. So like everyone that's building in that ecosystem is probably going to benefit from all that. So yeah, I think it's it's very bullish and yeah, like last time last week you were talking about AVA. I think AVA is going to be one of the most beneficiaries of this whole kind of movement and that everything is moving onchain >> and Dexes man like this is huge for Dexes. I feel like they've needed this for so long now. It's just more assets and and specifically not necessarily more assets cuz we had more assets over the last few years was just like, you

know, thou hundreds of thousands, millions of meme coins and just like coins and like sort of that worked but not really. It still didn't really get to to massive numbers. Um, but with real assets that people really care about and they're not afraid to mint a billion dollars in one shot, like this is going to move the needle for Dexes in a huge huge huge way. My only concern is that I think once all these trading shops are going to move onchain as well, they might provide liquidity themselves and they don't necessarily need those dexes that are that have smart contracts and liquidity inside them. So it will be more like I'm very bullish on intense because I think people are going to just

say, "Hey, I have $100. I want to buy SpaceX or Ethereum and that's it. I don't care about anything else." And so you know whoever is going to fill me the the best price is going to you know the right to fulfill that order they will keep some small fee and that's it. So all the dexes like if that's really happening and all these prop trading firms and all the big guys are moving onchain they will probably provide their own liquidity and it's going to be like much better prices which is ultimately going to be much better for everyone because if there is more liquidity like you can borrow more against those assets and it just like kind of liquidity

begets liquidity like we keep saying that every week because it really is true in crypto specifically. And so I think that's why I'm a little bit skeptical about all the dexes. They might have the market share today, but in the future I'm afraid if CDL is coming, then they might be able to kind of eat most of the, you know, market there. >> I think both categories are going to grow, right? You're going to have retail who's going to use Dexes, right? uh and certain users that are going to use Dexes that want to be on chain and then you're going to have the clients of Citadel and and you know these other institutions that are going to use you know their own tools and their own things. Um and as long as I think both are just going to grow uh and tokenized

stocks are going to be a big catalyst catalyst for that. >> You know one of the weird things about crypto is that the longer you're in it the more accounts you seem to end up with. You buy in one place trade somewhere else earn yield somewhere else and if you actually need capital you end up having to sell something that you probably wanted to keep. That's why we at Milk Road are partnering with Nexo. These guys keep the whole thing under one account. You can buy, trade crypto, earn interest on what you already hold, and even borrow against your capital without having to sell it all in one spot, all in one account, all on Nexo. So, if you need liquidity, but you don't want to give up your position, or you're already holding crypto and you want to be able to do more with it, I think Nexo

is worth your time. We love working with them. I think you will, too. Telemilk Road sent you. >> In crypto, you can get into a project long before it lists on Coinbase. In tech, the early window mostly belongs to VCs and companies now stay private for a decade or more. Alumni Ventures, a partner of the Milkro Show, gives accredited investors a way in. Time and CB Insights both rank them as a top 20 US venture firm. You can sign up for free to see the weekly deal flow or write one check into their foundation fund for about 25 private deals. Venture is high risk and long-term though, so read the details first. Go to av.vc/milkroad.

Okay, I want to ask another quick question about this, which is, you know, look, I'm bullish on Dexus 2, but what about some of the the centralized players like Coinbase, like Robin Hood? Um, I want to ask about this specific quote I saw from Bernstein. They cut their target on Coinbase's price, and they said, quote, "We no longer assume any bullish crypto price action in our estimates." It seems like while like you know Brian Armstrong is talking about becoming the best place to trade stocks, Wall Street is misvaluing or or not seeing the the value proposition here. What's the gulf there, Kyle? And and walk me through what's happening here.

>> Yeah, their concerns were on I think volumes for Coinbase's exchange. Um I think the one thing to understand specifically about these exchanges is they're not just exchanges anymore. I mean, if you saw Robin Hood's uh earnings last night, the exchange is is becoming a smaller part of of their business, right? They've now got options and prediction markets and and so many other things. Same with Coinbase, right? They make money from from volume, sure, but then they also make it from stable coins and from prediction markets and from, you know, the institutional services like custody and all that kind of stuff. So, um I think you got to think a little differently there. But again, they just think that we're not in a bull market and so volumes won't go up. And I think that's where they get it wrong. And even on the Galaxy earnings

yesterday morning, they said Q4 number, so Q3 was great versus Q2. We talked about that. Um Q4 is already 10% ahead of Q3. So we thought Q3 three numbers were great. Um and they said we're already seeing really good numbers in Q4. Now Galaxy again is more institutional. So maybe it's different than Coinbase, which is more focused on kind of retail trading, at least for what um whatever the bank was was talking about there, but ultimately it looks like, you know, we're continuing to to grow in Q4. So um I think they're going to be wrong on that particularly.

But um the only thing I would say is like obviously Q3 was the huge huge huge moment where we went from, you know, Bitcoin went from like 60 whatever it was 2,000 and jumped like crazy to 80,000. There's a lot of volume during that month. So will we get that again in Q4? I don't know. Like so far October has been kind of just choppy. We'll see what happens over the next two months. My guess is it ends up being bullish. >> Well, I would love to see another historic price squeeze on on Bitcoin. So that would be great. Uh Martin, >> I think we're going down before we go up.

>> Do we want to have that conversation? >> I do. I don't know if Martin, you want to say something first, but I'm going to pull up a chart and and just show my thinking here. You know, I think last week on the show, I don't know if I ended up pulling this up or not, but I wanted to. Um, but I think we're going to head down to somewhere mid70s. Um, we've broken, you know, from the last week, we've broke kind of below this like 81,000 um, uh, kind of support that we've been on. And, uh, and now we're kind of testing it. And I don't know what's going to happen here. My guess is we test it and then we shoot down. I'm not bearish. I don't think we're going to like new lows or anything like that, but I do think we're going to have a

little puke down. Alts, I think, are going to puke as a result of that. And I think that's going to be the best opportunity to buy into some of the name the DeFi names that we were just talking about. Could be Uniswap, could be a you know, Sky, you know, any of these blue chips. Uh depending on obviously the amount of risk you take, you could you could go even more riskier. Um but I think we're going to get that that moment. I don't exactly know what's the catalyst. Just looking at the charts, I just have a feeling that's what's going to happen. What do you think, John? >> Vibes are interesting. I want to hear what Martin thinks. Uh Martin, what do you think about this? Do you think we're going to break down or do you think uh do you think that Kyle's too bearish

here, >> man? Um >> I know Martin hates these questions, Kyle, which is why I love asking >> price predictions. >> Well, I I probably agree with Kyle. I think there is some support at Yeah. mid70s. Yeah, I think we are going to see those levels. >> Yeah, I think there's strong support at zero. No, I I look, I've been saying this for a long time. Um, Bitcoin, the bulls have been really defending 81K. They lost that. Now they're strongly defending 80K. So, I don't take it as like a given that we're going to break down. The expectation has been ranging and the expectation is that we will continue ranging until some kind of catalyst comes one way or another.

Um, but we're at $80,000, $80,500 right now. Now, at the time of recording, I think that we will see really strong support if we go down to the 50we moving average, which is around 76. And the bottom of that larger range since the August short squeeze is about $75,500, which has been sort of like the line in the sand I've been watching to say like the bulls are still in control. So, I agree the strength of the rally is fading. Um, but that's not necessarily unusual. And until we like seriously break down, I don't think we're going to get like a low 70s dip. We might go into the high7s and like maybe touch 76 where that 50 week is, but that's about it. I don't think we're going to flip back into a bullish uh or a bearish uh market structure here.

>> Yeah, I'm thinking 74, 75, 76, whatever. Somewhere around there. And more so what I want to see is the RSI nicely has just burning off. I know we've just been kind of chopping. Um but it's been great because obviously we moved so much in August, September. Um so like that wasn't going to continue at that rate. we had to burn off some some strength here. And so, you know, we're below halfway at this point, but it would be if we just had that one little puke here, it will reset it fully. Um, and then I would, you know, I feel like it's just the best time to be buying and we're going, you know, fast up from there. Um, so I'm hoping that happens.

We'll see if it does, but, you know, obviously it's all just probabilities. And John to be fair like if someone would tell me that Bitcoin will be above 80 when brand oil is 116, Dixie is 100 102 you know there are going to be rate hikes in December like there is still war in Iran. So like all these things considered like wow Bitcoin is really strong and so like you might be right and we might not go lower because like even during these circumstances and Bitcoin is super strong. So that's certainly the the some the sign that every Bitcoin holder wants to see and

like yeah uh you are right that Bitcoin is looking really good here. Thank you. I'm I'm glad you agree on that. Uh Martin, do you want to talk about Robin Hood now? I think we we flipped over to Bitcoin here, but you had more to say about Robin Hood. Do you want to discuss that a little bit? >> Yeah. So, Robin Hood uh record earnings uh really good results overall. You can see record um uh revenues. Those are only transaction based because uh Robin Hood has transactions based and then interest based. So this is only looking at transaction based revenues for Robin Hood. And the the question I have is why Robin Hood keeps trading as a crypto

stock when the crypto part which is this part here it was 100 million in the previous quarter and it was 120 this quarter and it only represents 8% of total revenues of Robin Hood. So it tells me that okay why should we trade or like treat Robin Hood as a crypto stock when it's really just not dependent on crypto almost you know just 8% is pretty much nothing and then I also want to know what are these numbers behind crypto because we know that there is Robin Hood chain and it's all also part of this 120 million and

>> ah is that where they included that? Yeah, it's included and Robin Hood chain revenue was actually 26 million. So if you would just, you know, strip that out, you would get maybe 94 million for crypto trading. So it's down quarter over quarter which is obviously not something you want to see. But I think it's interesting to see that Robin Hood is now, you know, pursuing this kind of new way to kind of benefit from crypto adoption by having their own chain which in Q3 was probably spike a lot spiked a lot and it's not sustainable yet because in beginning of September it was a huge

hype and narrative about Robin Hood chain and it was because of memecoins launchpad which are ever sustainable. It's like, you know, very short-term thing when everyone is just, you know, issuing new meme coins, trading like crazy, and then after a few weeks, it's it's all gone. Um, but I think during the call, I think, uh, Vlad uh, Tenev who is, you know, CEO and founder, he said that they actually want to like double down and invest more on Robin Hood chain because he think that's the future. he doesn't want to increase fees so they become more you know material for their profit and income statement but it tells me that okay uh Robin Hood really likes the the blockchain kind of

future they they are like 100% doubling down on that and so I think the next lag for Robin Hood from now on is they want to be less dependent on these transaction based revenues and like because those are still kind cyclical and you know sensitive to market changes and market cycles and more to be a kind of a bank where you know it's it's it's more stable but it's probably going to lead to repricing. So you might not see Robin Hood trading at like 40 or 50 price earnings ratio because they are not even growing that quickly anymore. I mean they are still growing um revenues

were growing I think um 22% or something like that so still decent number but the earnings were growing actually slower so that's what investors didn't really like and overall I think that the US market is also getting really penetrated and now new bank which is you know a Brazilian giant with 140 million users is now entering US markets as well. And then Revolute which is European giant and they are like super super smart team and I was really lucky to get exposure to Revolute. So I hope they are going to tokenize without IPO soon. But anyways, the point is that you know the

competition in the US is really getting like more crowded and so I I I'm afraid that the next growth or like the next big catalyst for Robin Hood to really like you know uh dramatically improve those numbers is not going to be that easy. And so I remain like I would say uh like hold or maybe underweight Robin Hood at these prices. I still own some hood but I'm really considering to sell some. >> Yeah, agreed. By the way, they had 50,000 in revenue for Robin Hood chain uh in Q3, not I think you said 26,000 >> or was 50 million, but they had to 50% give to Arbitum and so they only

included Yeah, 50%. >> Wow. It's a 50% split. >> Yeah, >> that's insane. I did not know that >> there were there are now discussions why is that because in the deal it's just 10%. So why on the call CFO said that they gave 50% to arbitrum. So it's you know we don't know. >> Yeah >> that's extremely bullish arbitrum. Um all right uh I think we're we're getting close to flipping over to after hours here. Um what do we want to like end the conversation on here? Do we want to talk about the outlook from here? Do we want to talk about the reaction to the Fed meeting that you guys are what are you watching for out of this FOMC meeting?

Do you think we're going to get a hike in December? Is that going to weigh on the crypto markets for the rest of Q4? What do you think happens with that? >> Like the Fed doesn't give any forward guidance anymore. So, I don't think we're going to get anything out of this meeting. We know that they're going to they're going to stay well, I think it's like a 95% chance or whatever that they're going to pause. Um, my guess is they pause. Uh, and then I don't think they're going to give us anything for December. So, I don't think there's much to take from this meeting, unfortunately. This pullback on Bitcoin is scaring a lot of people and I am not one of them. So, if you want to see what I'm not selling and why, what's on my watch list and when I'm going to be

deploying more capital into these markets, you can join Milkro Pro today. It's just a dollar. The link is in the description. I answer questions day and night in Discord. I'll see you there. Interesting. Martin, do you think that the macro backdrop is going to improve at all? I think there are midterms now. So, everyone's going to focus on that and maybe after uh I hope the situation Iran will resolve and you know oil prices will calm down finally and stuff like that. But for me, what I'm going to uh learn more about this week is grass which is actually a deepen project. And I think we keep seeing that the projects that are in crypto but that are actually kind of pivoting to like new use cases that might not be possible like couple

years ago. Look at Wenis. Weness is growing pretty much every week and it's incredible product. We were talking about this last week and so probably next week I want to talk about Grass which is in a nutshell a company that just lets all people kind of install a software and then your idle bandwidth can do some some jobs on the back end for you because now if you really want to go and scrape some website or something and you are going to use AWS they're you're probably going to be blocked because all these IP addresses are known. So like a lot of websites actually today block all these addresses. So they want to build a network of people who will just install

that software that is going to kind of scrape the web or like just find the data on the web on the internet and then sell those data into uh AI labs and companies like that and they're actually making pretty decent money and so I think that's that's pretty interesting. I think more projects that are in crypto but uh that are making those smart kind of moves and figure out how to leverage this technology and like token incentives in a way that you can incentivize like those networks to grow because only after a certain kind of amount of participants your network is really you know valued and makes sense.

So yeah, like next week I'm probably going to talk more about this grass because I'm just learning about this and I think it's pretty interesting. >> Well, touching grass is always bullish. All right, I'm going to end it there. We're going to flip over to after hours and continue this conversation. If you want to get access to our Milk Road after hours conversations, Milk Road Pro link in link is in the description. It's just a dollar. We hope to see you there. Uh but for now, we're going to leave it here. We'll be back with another crypto rollup soon. Uh in the meantime, thank you all for joining us. Stay safe, stay educated, stay bullish, and we will see you all in after hours in a moment. Thanks for being here, everyone. Bye.

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