Weekly web3 news: Farcaster opens up, SBF trial and OpenSea versus creators

Transcript

GM GM welcome to web3 Academy your one trusted source to capitalize on the next big phase of the internet don't get caught in the hype cycle I'm jbird joined by my co-host Kyle rehead and we believe that permissionless Tech is going to change the world that's why we're carving a path for doers to confidently build and invest in web 3 big things are happening in the web 3 space today farcaster is now open to everyone it is what's called permissionless Tech as Jay just mentioned we're going to break that down and what that means lens seems to be following suit as well so there is a competitive rush now uh in the web 3 social world it's really heating up speaking of things heating up the SBF trial is heating up and there's some

just wild and wacky things coming out of that so we're of course going to update you on what's going on there we'll do a bit of a market watch um but we're going to keep it short because uh well I'll talk about the market watch section m&a is going on the nft world you know that is a world that's just been craziness and so we're going to add to it with and Acquisitions which is fun we'll talk about that um Pudgies continuing to be the focal point of every rollup that we have they're just doing wonders and it's great to see uh and then we'll talk about open SE Zora Doods are they coming back and then of course blur which we haven't talked about in a while and you know hopefully we'll stop talking about them soon but we've got to talk about season two so much to talk about today I

am super excited to announce the onchain gift shop this is a place where you get rewarded every week with prizes worth hundreds of dollars just for interacting on chain this is our biggest initiative yet now I bet you're wondering what the f is the onchain gift shop well let me explain since we first launched web3 Academy over a year and a half ago our goal has been to help you capitalize on the next big phase of the internet we've spoken to over 100 industry leaders and the consensus is clear to truly capitalize in web 3 you must dive in and interact on onchain experience is the best teacher and that's why we're launching the onchain gift shop straight

up at the onchain gift shop you get free stuff for interacting on chain why because doing on chain should be celebrated we called that a w so every week there's two ways to win one there's a weekly cash prize all you have to do is collect the web3 academy newsletter and then you can enter the weekly cash prize and we'll have cash giving away every week that could end up in your wallet number two there's the weekly raffle where each week we'll be giving away hundreds of dollars in prizes that you could win this week we've got some great things in the raffle we have 20

mystery boxes we have three web 3 Academy hot off the press building the bare t-shirts which are fresh a we've got a one-on-one call with yours truly where I will consult your business on how to move into web 3 or how to get started on the next steps of your startup and so much more so visit onchain shop.com right now or check out the link in the show notes to learn more about how you can get free stuff for interacting on chain that's going to be a great episode Jay but before we do that let's talk about some gratitude what are you grateful for yeah I'm

grateful I'm going to take two things and squish them together here we recorded an awesome podcast two days ago with zenica it hasn't aired yet but it'll be coming out in a few weeks so look forward to that and I'm grateful for something he said at the end of the podcast he shared a quote with us I don't remember it was in Latin I don't remember the Latin version of the quote but the English version it was if you want love love and it was a great reminder of the best way to find love and to grow love Is Just To Love Yourself and to spread that love and the reason I bring that up is because I have this new son jack who is he's been sick this week and when man when you're like four-month-old is sick they're like so

useless and like in need of love right and you're exhausted because you're not sleeping like I'm barely sleeping because I have to like stay up and like hold him and comfort him and it's incredible how it's like Twisted it's like the middle of the night it's like 3:00 a.m. I have slept and I'm just like staring at it I'm like I love you so much like there's just something so powerful about feeling that love for for a child and for somebody else and like when you feel that it's amazing how it like makes me feel okay and like I don't need sleep so yeah thanks to zenica and uh to my son jack just spread more love and when you do it just gives you incredible energy I love that but Jay you still need sleep okay you got to get some sleep I'll get sleep I hope someday

sleep when you're dead that's what they say I am grateful for so in Canada it was Thanksgiving over the weekend and so I get together with my family on Saturday then I got together with Heather's family on Sunday Heather's my girlfriend and so just spent the whole weekend with uh with family and just kind of bonding eating really good food playing a lot of uker having some wine and yeah it was uh it was beautiful I mean it's the weather is now very fall-like it's much colder but it's a nice time of the year it's a beautiful time in Canada for sure I realized I haven't been in Canada for Thanksgiving since 2018 so it's been five years since I've spent Thanksgiving with my family so it was a really really nice time to to be with family this weekend those weekends in the calendar every year that

bring family together are so important and I feel like through your like through our 20s you know now Kai's well Kai's in his early 30s I'm in my Twilight years of my 30s you appreciate them more right you come back like in your 20s you just want to travel and now yeah I really appreciate every time every chance I get to spend with family all right Kai as we always do to start the episode what is going on in the markets this week yeah so the big data point from the markets was this morning the morning as we record this Thursday but the um CPI numbers the inflation numbers in the US came out and I think people are a bit confused on what these numbers mean but inflation remained the same so it was 3.7 last month and it was

again 3.7% this month this is the year-over-year change and so people are worried okay inflation's not going down like we thought it was it had gone up the last couple months like this is really bad now we can't lower interest rates we can't print money like this bull market is never going to happen the world is ending is where most people's sentiment is and actually if you look at sentiment institutions are more underweight than they've basically ever been sentiment in terms of just people's expectations of where the world's going are just terrible you know have the war with you know Israel uh and and Palestine and so there's just like it's bad out there um but the good news I'm an optimist as per usual optimistic and and so the good news though is if you look deeper at the numbers so although

CPI so your normal inflation that the US reads was the same core CPI which is I talked about this think last week or the week before core CPI was actually lower it was 4.3% last month it's now 4.1% and so that has consistently gone down and down and down for months and months and months now core CPI which I spoke of before I'm not going to go too in depth in this because I've actually doing a lot of research on macro over the last couple weeks and some of the people that I follow a lot uh and trust a lot in this space that have guided a lot of my decisions and a lot of just like my research they have put out a lot of stuff in the last couple weeks and so what I'm going to do is I'm actually G to put together a pro report next week

breaking down everything I've got 40 charts I was playing around this morning I've got 40 charts for the pro report next week breaking down everything unemployment inflation interest rates liquidity technical analysis sentiment like the whole thing if you've taken an investment course you know that you got to look at these from all the different angles I've got it all and I'm going to put in one pro report hopefully I can fit all in one honestly it might need to be two it's big but there's a lot so I'm going to cover many there but the key thing to understand right now is that cor cbii continues to go down this is what truly matters in these moments core CPI is your like shelter wages and these are make up like 70 80% of total inflation CPI didn't go down along with core CPI because come Bond Bas are

starting to have a bit of a boom and that's because we're starting to smell that growth is going to come back and so companies need to start producing things again which means they need to start buying things so Commodities start to go up but those are only like 15% of of inflation so we're sort of at this moment where core which is like shelter that is really starting to come down but it's just turning over so it hasn't really really came down yet and then the other things outside of core you know we're going down like crazy over last year but they've they're kind of on this rampid pace upwards for a little bit but it'll be the course that'll bring it down and will continue to bring inflation down so I expect inflation to be much lower than the 2% probably by the end of this year and even though

it's no one is saying that and so in the Pro report I'm going to explain why I'll show you a ton of charts but to me I still believe macro looks very good and I know that's not what most people think but that's my opinion can't be right every time but I'll show you why that Pro report the other good news that's coming outside of that data was another thing that came out this was yesterday which is back on the Bitcoin spot ETFs we said that were delayed until January um but Arc yesterday just filed an updated version of their spot Bitcoin ETF perspective so they've made a bunch of changes based off what the SEC has asked them to do and they've now put that in and so if you look at what are the changes they've done here's a few key points of what Arc had to change and

the expectation is that black rock and all the others will do the exact same thing and so those should be coming in the next like let's say a week or so as well so first was they had to really explain further on how the assets will be custody the key thing the SEC wanted and this is likely because FTX is that the wallets that the Bitcoin is held in cannot be co-mingled with corporate or other customer assets right so I mean this was the big issue that happened with all the big centralized exchanges and so they're really really focused on making sure that it's not possible that the company can use these assets for anything else so that was a big one the other ones were a little bit interesting they were more of like disclaimers that they had to put which is the actual or

perceived use of Bitcoin and other digital Assets in illicit transactions May adversely affect the Bitcoin industry so that was a line that they actually had to put in there basically disclaiming that maybe there's going to be illicit transactions or things and that could impact the industry and thus bitcoin's price could go down why they need to put those things like of course if there's any illicit activity in any business ever of course that business is probably not going to do well this is how politics worked the other thing that was interesting is they made them put mining operations so Bitcoin mining operations can consume significant amounts of electricity which may have a negative environmental impact now this is actually it's somewhat true Bitcoin uses a lot of energy to mine however a lot of

it has moved in the direction of renewable energies and actually Bitcoin is one of the leading innovators of renewable energy um because it's more cost effective they can use renewable energy so they're doing things like getting energy from volcanoes right they're doing from like oil and gas things where they like burn earn the gas they're using that to then use that energy to mine Bitcoin so like there's a lot of innovative ways coming out of Bitcoins it's actually a net good is what the like debate is here is that there's actually a net good for the world in terms of this especially as it becomes I think we're now over 50% Renewables for all electricity for Bitcoin but people can't really think of the future stuff again of the Innovation stuff they just think of the moments of right now as hey it use a lot of energy

it must be bad for the environment um but they don't kind of see through it and so this is something again I guess they have to disclaim why I have no idea but that's just what they have to do so anyway this is a couple of the key things that were changed and again predictions seem like this is all really good news it's not a lot of difficult things Arc was able to do this within two weeks they were able to get the new application out there so others will probably come and hopefully hopefully this is finally enough for the SEC to finally approve let's see where things go I'm excited about that Pro report you got you're going to write next week Kai that's going to be a really good one I think the main thing I I have to say about market watch this week is I was

talking to some friends that are in the trafi space and they were very very negative sentiment and that's always when I get excited like buy the fear sell the greed right when you're talking to people and everybody around you is negative down sentiment it's all bad remember that sentiment lags sentiment is always lagging behind what is actually happening and yeah those things it's funny how those things actually get me excited I'm like oh you think it's the worst it can be right now great this is what I should be buying well and I'm writing this Pro report next week because I think we're at an inflection

point the last time we were at this inflection point was in January of last of this year and in January we were this when we launched Pro and we were yelling yelling yelling guys this is the moment this is the moment like I know seem's really bad out there everyone's so scared about everything bye bye bye and then what happened equities crypto just ripped for like two three months it's come down a little bit and it's kind of chilled out equities have actually continued to like kind of grind up a little bit but it's been stagnant for months and months and months and we said at some point that's going to come back and I think the moment is coming I'm going to show you guys why with all these charts but the reason I'm do this is because I feel like what happened in

January we're at that same moment and so it's a big opportunity so make sure to check that one out I love it I love it all right let's jump into what's going on over foraster launching the S SPF trial and so much more but first we'll just take a minute to hear from our sponsor modern newsletters are built on paragraph that's right paragraph is a brand new newsletter platform that combines the best parts of web 2 and web 3 to supercharge newsletters for both writers and readers build a community not just an audience paragraph uses blockchain Tech to allow readers to collect and own the words that matter to them this takes reading a newsletter to the next level with paragraph readers

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capitalize on the opportunity of being early welcome back all right first up on today's news is foraster is permissionless Kai what's going on yeah so this is huge forecaster we've talked about a lot so hope you guys know what that is now but it's basically a social protocol similar to like lens protocol but they have their own variations they've been working on it for about three years now and finally it's gone permissionless now what does that mean permissionless means anyone can sign up so previous you had to have an invite right same with how lens works you need to be on the wait list to get it or have an invite and so farcast has been like that for a while since they've launched and finally anyone can sign up the way

you sign up is you go to any of the clients so the apps that are built on top of foraster like warp cast or I think it's called flinky and I don't know there's a bunch of others but anyway you go to those you can just basically sign up like you would signing up you know for your Twitter account Etc what you're actually doing is minting an account on optimism and I think you pay five I believe it's $ five dollar per year to have this account which will do a good job of removing most Bots and then also that goes towards the protocol which then can be used kind of like public goods finding sort of thing and so now that's possible the other thing that's possible from going permissionless is clients can build on top of the protocol without the need for help from Dan Romero and the forecaster

team and so any developer in the world can literally build their own client sign up their own users and launch it and it's quite simple there's actually a video we have on the screen here of a developer showing you how to do it within 10 minutes so now obviously you're not going to build a great app in 10 minutes but the cool thing of this is if you want to build a social media app not using farcaster or like lens protocol if you weren't using social media on blockchain let's say Not only would you have to build your own app you'd have to get your own database and then you'd have to find all your own users and sign them all up and store all that user data with firecaster you don't have to do that at all you just have to build an app now the users that are

already on farcaster maybe that they're using warp cast or something else they can just interoperable like just easily go over and use your app they don't have to create a new account they can share content like they don't have to do anything right they just literally go to that page and log in as they would normally and they have it they don't have to create something new so you don't have to like start net new and find your customers now of course you still need to get people to come over to your app versus other apps so they they're still marketing needed it's not that easy but a lot of the functionality and a lot of the cost associated with like getting new users getting them to sign up with all that friction that is basically all gone so it's really really cool what this is going to do for social

media already you have warcast which is the one that foraster built so the team who built foraster have their own what's called a client that's the app they have warcast that's the most popular one that many people are using but there's already other clients that have launched as well so Flink is one that is basically Reddit it looks and feels like Reddit but you're using your forecaster account and so I can go and I can use warp cast which is kind of like Twitter but then I can go over to Flink and I can I can use my account more for like the Reddit style and what's interesting is since they've launched this PR see which happened on Wednesday There's now hundreds of users signing up per hour this chart we have up on screen is a little bit outdated now but 25% of new

signups have come from this new Flink app now why would that be right warcast is the one that has all the like Twitter followers people know about them already right so why is Flink doing such a good job and the reason is warcast is made for people that aren't necessarily already on chain so it's an easy onboarding experience for new people Flink however is made for people who are already on chain and already have a wallet and can just connect your wallet in and so warcast is sort of like creating a wallet when you create your account which when you hear our privy podcast that comes out I don't know if it's next week you'll see kind of the difference here and why you would do both but Flink is like it's like an onboarding experience for Crypt Natives and then warp cast is for non- Crypton

natives which is quite interesting and so again we'll have clients or apps on fast that will work for all sorts of different people and we'll have many different types of activities so anyway this is a really big deal I think for web 3 because we need our own social Twitter is great and I'm sure we're all going to use this for a while but we need one that is permissionless that is decentralized that has all the fun and cool things that we like to do in web 3 and finally we can do them over there on farger now there's still plenty to be built out there but this is a huge huge milestone I think lens protocol is the other one we talk about them all the time they've been partners with us for over a year now so we're really excited about what lens protocol is doing as

well and the cool thing is we tweeted out it's happening because farcaster went live yesterday permissionless lens protocol has tweeted out we're going to start opening up lens protocol slowly to a more wider audience and so you can go and connect and you can join their weight list as well they're beginning to kind of let more people on which is exactly what farcaster did before they opened fully they were in beta they didn't let anyone in really then they like slowly started to let more people in and then boom it was like everyone and lenses seems like they're doing the same thing they've been closed for a little while now they were fixing up some things lens V2 launch is I believe somewhere around the end of this month so my guess again I don't know but my guess is that when V2 launches soon

thereafter they will launch open to the public one because the tech will be better with V2 two because well farcaster has done it and they need to make sure they don't fall too far behind so lots is happening here in the Web Two web 3 social world and uh it's very exciting yeah it's so exciting I think one thing that this really makes me think of is going back and you know history repeats itself we always say that right um or history doesn't repeat itself but it Rhymes s that's the quote but if you think about the start of the internet and the original social media apps were much more open think about Twitter used to have an open API and lots of businesses could build on top of

Twitter and then what happened was there became basically a war for users and user attention and Twitter closed their API essentially rugged a whole bunch of businesses yeah and that was sort of that inflection point at which we went into like the last 15 years or so maybe the last decade where we had all these closed ecosystems and we became the product user and everybody knows that story and what is happening now with farcaster and with lens and with doo who we had on the podcast a few weeks ago great episode go back and check that out is they are rebuilding the infrastructure layer the protocol layer

for our social media and the thing is the way they are building it they will never be able to close their ecosystems and I don't think we really grasp what that's going to mean right now it doesn't really mean much because we're still on all on X and Facebook and all we all spend time on our web two platforms but in five 10 years when we've all moved over to these new platforms and I guarantee we will and the main reason I guarantee we will is because Innovation where is the Innovation happening it's not happening at well I guess Twitter is innovating because Elon is probably one of the craziest innovators in the world so

maybe he's the only Web Two guy that gets this but I don't believe that any other web two companies big companies aren capable of innovation they're just capable of ensuring that their stock price you know satisfies shareholders that's their only objective and so where the Innovation is is in these small teams in these back offices of like Hustlers and startups who are trying to do new things and as Kai said because of this permissionless Tech you can do new things at a pace that you never could before and social on blockchain means that you can also monetize in different ways and so creators are going to go where creators are treated best and I mean one of the reasons why Twitter has

started to kind of have this resurgence took overs he's focused a lot on paying creators so a lot of people want to go back there and start creating and so with blockchain though as we've talked about plenty of times with you know things that lens is doing and I mean even things we're doing on our newsletter with paragraph you can monetize in ways that just are not possible with you know centralized databases essentially and so I think the combination of like freedom of innovation because apis are fully you know open and permissionless uh and so you can build whatever you want want on top of these things which is really cool you have like the Legos of social media and then just the freedom to monetize in whatever ways you see fit as a Creator um there's just no doubt in my mind we

go this way maybe Twitter or X I mean I'm read I just read the Elon Musk book um which is an incredible book by the way forget who the Walter Isaac W yeah yeah um really really good book if you want to learn more about Elon and all the things that he's doing it's crazy um but actually when he bought Twitter just before he was talking with his brother and they were strategizing on how to build a social media app on blockchain um and so he actually has his cousins looking further into this and so when they bought to like hey can we move this thing on chain so talks about it in the book which um wow pretty cool so again he was like okay we can't is basically what he said in the book was like it's not ready so it's not gonna happen but

he he sees the reason why it's better why social is better on chain and so maybe the text's not there for Twitter to get on there anytime soon but at some point I think it moves over to one of these protocols or I don't know there will be blockchain integration at some point for sure yeah exciting times and you know who it is not an exciting time for right now is our buddy Sam bakman freed buddy who just getting we're in week one week into his trial and we said we we' keep you guys updated every week and it just keeps getting better and better I think it's pretty clear I don't know if you guys have been following this trial it is very clear that s bman freed broke the law and knowingly broke the law when you look into this trial

it's almost as if his lawyers are completely hopeless to defend him they don't even have a leg to stand on they're basically just trying to confuse the jury I would say that's the only hope they have is like confuse the jury as to what is crypto and how does it work and oh Sam bankman freed basically didn't know what he was doing plead ignorance essentially right and hope that the jury goes that way which there's just no way they're going that way so this week we had three main people take the stand this week we had Adam I'm G to Butch this last name Yia I believe is his last name an old friend of Sam bakman freed from MIT and an early member of the FTX team then we had

Gary Wang co-founder of f FTX and Almeida and then we had Caroline Ellison co-ceo of Almeida and also Sam bakman Freed's girlfriend at the time on andof girlfriend although when she took the stand it was pretty clear that they weren't actually boyfriend girlfriend they just like slept together on and off I feel so bad for her that she had to like talk about that on the stand what an awful situation to be in so let me give you the highlights of these three testimonies uh here's the tldr Sam Freed's going to jail for a long time um first Adam idia talked about living in Bahamas with s bankman freed s bman freed had a $35 million condo that he was paying for and there there was eight

different people that lived there all working at FTX and basically Adam yida painted this picture of this lavish ridiculous lifestyle that Sam bakman freed was living and and allowing everyone else to live because he was making so much money he didn't care about anything and it obviously did not make S Bank freed look like a responsible CEO it made him look like a young 20-year-old who just wanted to like party and have fun and then Adam udia talked about how at one point he was asked to fix a bug in the FTX Alia almea contract or the system that connected the two of them and when he

was asked to fix this bug he was asked to fix it because at the time they said it's this bug was showing that Almeida owed FTX $16 billion which the relationship between Almeida and FTX Almeida should never owe any money to FTX they should never have been able to go negative in their FTX balance but they did and so adom Adia went into this bug and he's trying to like figure out what's going on and he fixes it but the fix was that oh wait alme owes us eight billion not 16 billion and so he found this out he went to s b and freed s b p freed said don't worry about it's no big deal give me six months to three years

and I'll fix this which is a bizarre timeline and Adam UD at this point realized that he was breaking law and he actually left FTX so that was the first thing that happened then Gary Wang takes the stand and he has two smoking guns first he explains that Sam bakman freed directed Gary Wang and the other seniors to enable Almeida to have special privileges with FTX and what was included and there's many things there I think there was like four or five things Within These special privileges but the main one was that Almeida could withdraw funds from FTX unlimited funds now the same day that Gary Wang claims that Sam

bakman freed said set up these special privileges that same day s bakman freed tweeted or maybe it was like the next day this is back in 2021 same day he tweeted that Almeida was had no special privileges and was just like another customer to FTX when in fact Almeida could now basically withdraw unlimited funds from FTX which it continued to do to the tune of billions of dollars and then the other thing that Gary wayang talked about is on the FTX website like right on the homepage one of their selling features was that they had a Insurance Pool so if any FTX customers funds were at risk FTX

claimed we have a $100 million insurance pool to cover any of our customers losses well Gary explained that this was a complete lie there was no insurance pool Not only was there no insurance pool this number on their website was a dynamic number so it CH the insurance pool changed as FTX had more customer deposits the insurance pool grow grew accordingly and Gary Wang explained that there was just a simple piece of code in the background that basically took FTX deposits multiplied it by 7500 and then divided it by a billion and that gave the constant number on their website like just a complete lie and Sam bman freed knew exactly what he was doing and

then last up Caroline Wang took the stand or sorry Caroline Ellison took the stand who was almeida's co-o and SPS girlfriend and I mean basically she just Splat out said that Sam told me to commit these crimes and she knew both Gary Wang and Caroline Ellison have been cooperating with the doj for months now and both of them in their testimonies they are admitting to crimes so they also are now going to have crimes against them they are guilty of these crimes because they're fully admitting it on the stand but they obviously have deals with the doj because the doj is focused on taking down Sam bankman freed

so she basically said he Direct me to commit these crimes and even though she was co-ceo of Almeida she says that she was just a puppet it was Sam bakman freed and you could imagine that right like who in their right mind hires the girl or the guy that they're sleeping with to be the CEO of one of their companies right Sam B fre obviously co-founder romea like you hire that person if you want control over them you don't hire that person if you want them to actually go run your company so she talked about she was not the the one in control and she also talks about how San Bank M freed when their investors started to come to FTX and say hey we need some of our Capital back we need

some of our loans back Sam said we can't do that right now and so some of these investors Gemini being one of the biggest ones asked for 500 million of a loan back and so s b m free directed Caroline Ellison to make seven false balance sheets totally fake balance sheets and then send them to different investors so everyone investor got like a different fake balance sheet like is there anything more clear to Breaking the Law like just ridiculous and not only were these things happening that I just mentioned something else came out in Gary Wang's testimony Kai what happened here yeah so this was crazy to

me so we know that this whole thing fell apart because basically FTX was leveraged ING customer funds uh and they didn't have enough right prices kept going down so they lost it and byby FTX but what happened in 2019 is the same thing they were taking customer funds they were leveraging it but prices were not amazing in 2019 either and so they were going to basically get liquidated on their capital and so what they did was San beer freed took the ftt tokens which is essentially Equity of FTX and use that to cover the collateral on customer funds now luckily at the end of the year prices went up in 2019 and the markets did fairly well during that time and so he won that bet right he went

literally all in on customer funds plus Equity of the entire company went all in won it he was cleared all was good but then he did it again in 2021 and this time come 2022 there wasn't enough tokens to You Know cover that clad there was enough equity to cover that collateral and he lost but that is insane that he has done this more than once I just crazy never would have thought that like typically when you make that big a mistake if you get out like clean on that one you're like okay I'm never doing that again svf no he's absolute insane insane insane well we've got many more weeks of this trial we will continue to keep you updated every week let's go over to nfts and what's going on in the nft market right

now what really what's been happening over the last six to 12 months as a result of the bare Market is a lot of nft projects are struggling right they basically raised a lot in 2021 or early 2022 before everything crashed which was great because they sold an nft great you got a whole bunch of capital come in right but then since then they have not been able to generate any more Revenue because royalties went to zero and they don't have another product most nft projects have just tried do air either airdrop or mint another nft as another product which

we've seen with isuki and others how poorly that goes most have had to do significant cost cutting right they built teams when they raised so much they sold this big they sold their nft and now they're like constantly cutting which is not a good situation to be in most have not been able to demonstrate product Market fit because they just have a bunch of users who expect a number go up but don't want to pay more money they're like they already bought in they already paid their money because they think they're buying Equity not a product and where does that leave them most nft projects are either out of cash or they're running out of cash in a matter of months so it sort of leaves you in two positions if you're an nft project founder right now you either

need to raise more money or you need to explore the sale of your company no one is funding nft projects right now exactly funding AC cross wib 3 is down if you read our newsletter I think it was yesterday yesterday but funding on nfts is zero so where does this leave is basically leaves you in a tough position if you're an nft project founder and you're not Luca Nets so there's been three things that happened this this basically makes us we're in a pretty ripe scenario for m&a to happen right when you have a whole bunch of companies that have some sort of asset community IP those are usually the two main assets that most nft

projects have and you don't have any funds to continue to operate well you try to either sell or find somebody else to merge with or do something like that so we've seen three happen this week um or in the past few weeks first boss Beauties acquired BFF which makes a lot of sense to web3 communities focused on raising up women through using the power of blockchain to do so and creating media and education around that boom merge those communities awesome makes a ton of sense we don't know the details of that deal it was a closed closed door sale but it was an acquisition is what what we understand next gutter cat gang which was a leading project at one point

was not acquired basically given to a community member so Gunner cat gang which was a successful project fell off the map a Community member a very active one named no stepped in and said you know what I'm going to take over this I will take over this project a lot of these Founders are young and just want out they don't want the stress they don't know what to do they're not seasoned entrepreneurs this is their first business so they're just like hey take this off my hands and I'm happy right and so Noah has taken over gutter cat gang and I just want to mention Noah because there's this incredible tweet thread that he put out he's at

moo maloa dream on Twitter if you can find him we'll put a link in the show notes this tweet thread but this gave me very Luca Net's Vibes like he's a seasoned veteran in business building he previously built a SAS company that he sold for $1.2 billion and he's coming in and this tweet thread is just amazing it's just him being like look here's what we're going to do and we're actually going to do it we're going to focus on IP we're going to focus on licensing we're going to focus on creators and mostly our community and amplifying their use of the gutter cat gang IP and I'm G to build a business here because I believe that it can be done and because I know I

can do it and as a result gutter cat Gang has actually gone up the nft floor has gone up quite a bit which is interesting because we keep seeing people ask if my IP my nft project sells and when pudgy sold same thing happened like is there anything comes back to Holders no you don't own es just speculation it's just but if there's a new leader in your company and this is the one of the main things Noah said was this gutter gang just needs a leader that's out here talking about us and being positive and communicating to the public what we're doing right where's so many these nft projects are just silent Founders who are only in Discord and aren't really talking about what they're doing because they don't know what they're doing right so shout out to know on that end the

other thing that happened this week was pudgy Penguins Spencer Ventures which is basically an investment fund focused on digital assets nfts mostly they acquired 144 pudgy penguins from sues which were part of the three Arrow Capital liquidation and this was a also an offchain deal so we don't exactly know what the numbers are it was speculated that it was mid six figures for these 144 Pudgies but what's interesting about this is so here we have a couple different examples examples of what's Happening we have one nft project acquiring another with Boss Beauty acquiring BFF then we have a Community member taking over a project with Noah

and now we have an Institutional Investor coming in and buying nfts in paji so you can see and this is a theme that you can expect to see more throughout this year we're going to see a lot more nft projects looking for funding and trying to figure out how to get more investment and it's going to lead to some some great opportunities both for the the founders to get out and also but for the existing nft communities to get some new life and some new energy into their projects and if you want to know which ones those are that will get acquired it's only going to be the ones that have a strong community so if there is a community there that's fighting and maybe nothing's happening in the company and the founders doing dick all but if the

community is actually there like hoping and still and they're not selling and they're like they're trying to Rally around it those are the ones that Founders or entrepreneurs are down to buy like hey there's already community of 5,000 people that are excited about this and that are using the brand and their Twitter handles and blah blah blah it's like that's a great starting point instead of starting from zero to get from zero to 5,000 customers is very hard and this is why Noah for examples like yo I've buil businesses I could start my own I don't need gutter cat gang except for the fact that there's probably thousands of people already excited about that brand that already have them in their Twitter handles Etc and he's like instead of starting at zero I'll start at whatever that is and put 500k into it and then I can make

something happen it's exactly what Luca Nets did right so that that's a big boost to start from a few thousand versus zero and so yeah that that's what these people are looking for so you see strong communities and you're looking to invest int that's the only play you have right now unless there's you know an N project that's actually building products but like I have seen zero except for py yeah other than other than usual labs and Pudgy was people already know yeah like things like pledging that it's like we already know they have products so what you need is ones that people don't know they're going to launch products you know exactly uh speaking about Pudgy some exciting news out of them just keep on shipping uh this week they announced that pudgy toys

are now available in smice which is a large department store in the United Kingdom so Pudgies these cute little fat penguins are flying across the ocean and going over to Europe and you're going to start to see them in kids hands all over Europe as well shout out to the pudy team for their continued expansion of their toy Division and then also pudgy announced a partnership with last crumb and they're making cookies they're gonna make pudgy cookies cookies that have your pudgy Penguin on them and they'll be available for sale as of yesterday I believe and last Crums a like a leading cookie company out of La if you're not in the US you don't know about that so yeah pudgy flexing their partnership

muscles at the same time and if you're wondering why cookies so these are just little cookies that are in a wrapper that have the P bang Brandy on them it says what's it say this cookie makes me pudgy which is funny and cute and kind of hilarious but anyway who's going to use those right it's kids they're going to put them parents are going to put them in kids lunches they're goingon to go to school with them and so now the kids have their pudgy peguins at home that they've got from Walmart and what's it called Smite or whatever or Amazon and then now they're going to school with these cookies where people you know you're sitting at the lunch table with all the other kids and they're going to see this pgy penguins and now again it becomes a conversation in school other parents are seeing it maybe you bring it

to your sporting uh goods and you give it to all the kids at halftime for soccer or whatever and so it's just getting the brand in front of so many people in such like an organic way and the amazing thing is this week pudgy uh became the third highest nft project by floor so we have punks at number one bapach club at number two and then Huggy penguins at number three ahead of mutin yach Club isuki konx Doodles Moon birds all of those which used to be the cream of the crop pudgy has just their focus on building great products and building revenue streams you know no no

Sherlock that's what's LED them to also raise their floor and become a leading project and and by the way the nft industry looks identical to how the Ico industry was in 2017 2018 there was thousands of projects that launched 99.9% of them were complete Founders just left stopped talking you know what I mean ran out of money all the same things that Jay and I just talked about here with nfts and then there was the few that had strong Founders that built something that was real like makerd and Unis Swap and synthetics that we all know today but those were not clear winners in 2018 no one really knew what those were they were in the mix of a bunch of random pieces of crap iOS that people thought were going to be the next big thing just like we thought I don't know isuki and

whatever were going to be the next big thing and so it it looks identical but what will happen is a market will come back it doesn't mean it will be the same Market that we just saw it might not be pfps and it might not be monkeys and whatever it's going to be very different but a few of the ones from that last cycle will make it back and will exceed alltime highs from previous uh that's just how these sort of innovation Cycles work so yeah this actually is quite quite similar to any other I mean same with doom boom same thing and you know the ones that will succeed are the ones that build consumer facing products and this is what Luca talked about in a recent space is he had this great quote where he said that Pudgy's focus and

really the focus of all nft projects should be to build a consumer facing industry powered by blockchain because there is so much within that and that's something we are I think we've really leaned into talking about that since onchain summer over the last few months and we're going talk more and more about the future of consumer facing powered by blockchain okay next up we've got a uh open SE verse Creator situation here so last week we talked about openc launched uh Creator Studio which we were stoked about right a no code tool that makes it very easy for a Creator to Mint an nft collection to have a landing page to sell that nft collection like all things

that we believe are so important if you're a Creator you need be able to get nfts into the hands of your communting your fans and before like a year ago two I was really hard you you had have spent a ton of money and resources developing smart contracts creating a a minting Dap all these things all gone Open Seas made it super simple with their creator Studio okay love it but then it came out this week that openc was taking a 10% fee on all primary mints on Creator studio now look I don't have a problem with them taking a fee they should take a fee they their business and they're providing an incredible service like that's not free they need to take a fee but here's where openc messed up they

hid this they hid this like deep within their contract code basically that if you use one of their smart contracts they're taking this fee and so they're not upfront like just be upfront first thing on your website everyone wants to know what the price of your product is put it right there like don't freaking hide it the PR team of openc has just completely let down openc over the last year I mean what was it when they removed royalties they also then added Creator fees at the same they added um platform fees at the same time over on on openc Pro or whatever which I mean again they should do that but like they they announced them both in the exact same day which is just like duh

obviously don't do that and this one as well this has been such a touchy subject and again I agree with Jay this is a massive product Creator studio is great and like it without Creator Studio you have to pay you have to use so many different apps to create your image mint it get it audited blah blah blah blah all this stuff and so this saves you a ton of money so like charge 10% no doubt but why would you not tell people you already know this is a touy subject and obviously it was going to come out someone's gonna figure this out it's not hard just so ridiculous open see you've through the One Marketplace that I was kind of rooting for because just I wanted them not to get their ass kicked by blur but like they suck too I'm I'm all rable I'm I was still rooting

for opy just like hire a new PR team call PR gez just be authentic and honest don't hide stuff it's so don't hire my co-founder and co-host he'd be too busy but do at the same time this week Zora another nft minting platform and good friend of the show love the Zora team they announced that they have removed fees for creators to Mint so it now is free for creators to create a nft on Zora no crypto required you can just do it for free now here's what's cool about it so the challenge if you create an nft collection in order to put that

collection on chain you need to pay gas you got to pay gas to basically set that collection up on chain and then when your any of your collectors colle the nfts from your collection they pay gas to put to move that nft into their wallet okay and that Zora wanted to remove that first step so that creators didn't have to pay gas to put a collection on chain because Zora's mission is basically to get to every Creator like every underground small Creator they want to make it really easy for you to move on chain which is an amazing Mission they're not going

Enterprise they're not going after to the big guys they're going after to the little guys which I love and so what they did was they create they changed they flipped the script basically so no longer if you want if you're a Creator you want to create an nft collection you don't pay the gas to put that collection on chain but somebody has to pay that gas so what Zora did is they passed along to the first Mentor so whoever mints the first nft in a collection that's put up by a creator they pay the gas to put that collection on chain and in doing so they get rewards so there's an incentive to do this they actually get point it's

0.111 eth which in today's prices is like 25 cents for every subsequent mint of that collection so there's an incentive for you to be the first mentor of a collection you get some rewards look some of these get thousands of mints and so that that does add up and at some point also the price of eth will go up I imagine Zoro will have to change that like if if the price of eth goes up you know 10x in the next two years then zor is gonna have to alter their fees this is why it's always weird to price in eth but anyway we'll see where that goes but look we talk about this all time of removing friction and there's a lot of friction in starting in web 3 especially the worst part is getting eth and then moving it to your wallet

bridging it to the L2 like that insane to ever expect anyone to do that we used Zora and even us we were like this like it was fine for us this sucks for our own Community even though these are web three natives that are listening to our podcast and read our newsletter still sucked that they had to bridge you know ten E from ethereum just to meit something that was meant to be free right and so like it's a weird it's very odd and now they're fixing that which is is incredible okay also this week Frank de gods and the D Gods team announced The Comeback and basically what the comeback is I I shouldn't be laughing here but it's just it's almost comical

The Comeback is so D God's nfts have gone through three seasons now and each season you would think they would launch a new product or something but all each season was was new artwork right which basically is you could change the jpeg of your nft right which like okay cool Kyle will tell you nobody gives a about the art some people do but it's not it's definitely not a product and de Gods has they got a lot of backlash from season 3 which happened a few months ago because obviously changing the art of your nft does not make the floor price go up which is what their Community really cares about their Community was

pissed right so now they've announced the comeback and what they did in the comeback is they reset all the Jag God's artwork back to season one and in season 3 you had to pay to change your artwork in season 3 so now they've just reset it back to season one now they also built a website a new website where you could if you want your artwork to be season 3 or season two you can go into this website and you can change it to whatever season you want it to be it won't cost you any gas you can do it for free okay cool that you can like mess with the metadata of your nft we haven't really seen another project do that but yeah the God just keeps making these like big announcements you know they've great at branding The Comeback like this

announcements cool they made this great video don't get me wrong video hyped me up like I'm not a de God's holder but I was like damn yeah this is exciting but then there's nothing behind it the the the God's team has just missed the force for the trees of what nfts are and what they mean in my opinion they have spent who knows how many thousand tens hundreds of thousands of dollars one changing art and two changing the blockchain that the nfts exist on right they were originally minted on was it salana they were originally minted on yeah yeah and then they moved that from salana to polygon and then they moved from polygon to ethereum and it's like dude nobody cares

what chain it's on most people don't really care about the art and what's hilarious there's a tweet that came out from Bayer he goes imagine buying a dgod that hasn't turned to a d to a dgod that hasn't turned to a dead God yet here's what you need to do to make this happen you got to convert the D God to a dead God M your tube on Soul reveal it on Soul migrate the dead God to eth downgrade your dead God to season three migrate your youth from Soul to polygon migrate your youth from polygon to eth he just goes bruh like this it it it is literally Jay always likes D gods and says that he supports Frank because he is a great marketer he can get a attention sure he can get attention but he has absolutely no idea what he's

doing like just so lost it's insane nobody cares what blockchain it's on for the most part unless like the thing really matters if it was you know a$2 million asset okay maybe I would care but I mean he's going around from salana to polyon to theum which are all pretty legit chains anyway it's like it's minis School the difference of that do you know what I mean and then also just these Arts which people just keep complaining about and don't care like it's just like what are you doing he reminds me of you remember the I think it was on American Idol the guy William Hung or William Hong I'm not sure it's like Chinese guy who's saying um She Bang She Bangs She Bangs oh baby and she moves and he was like all weird and how

he danced whatever and then he became like a star for like a year he was like a celebrity because he could grab attention he was terrible at what he did so bad at what he did that it was funny and that grab attention that's what DG Gods is he is a terrible Frank and the whole crew there are brutal at what they're doing they don't understand what entities are they don't know what their business is it is a joke and anyone who's buying this stuff is crazy I'm sorry but the only reason he's getting any attention is because it's so stupid that people are like what is happening here and it gets a lot of attention on Twitter other than that terrible I would be running for the streets if I had a dgot right now this comeback garbage Kyle coming in with the hot take it is

it's it's probably project I've ever seen it's garbage in my mind is blur season two blur finally this week announced an end to season two which I hope is an end to all the airdrop farming that is absolutely screwed over the nft market blur season 2 ends on November 20th and that is yeah just great news here's what happened as a result of blur making this announcement first their token price actually dropped the day they made this announcement although the drop sort of happened before the announcement was made the token price has gone from it was at all times high it was at a131 and now it's down to what 16 cents a few days ago but what's been more

interesting is for for pro subscribers we put I forget when it was back when it was at alltime highs we had a pro report that we wrote and I said I wouldn't touch this token with a 10 foot pole it is gonna just go to and I forget what it was at I got to figure out what it was at when we wrote thatll was definitely around a dollar yeah so anyway this is why you go pro this is why you go pro so what's been interesting is to to watch the marketplace Wars play out as a result of blur basically offering this incentive of a airdrop of a token they did that in season one and here's what happened immediately after season two was announced blur grabbed shot up to 80%

you can see it I've got a graph up on screen they had 80% of the market share of nfts like totally taking over before that a few months like six months before that open SE had 80% of the more and so blur an incentive works we know this incentives Drive behavior and so this incentive an airdrop worked but the airdrop took so long and there was no announced end date forever that blur started to lose their market share so they slowly lost it it dropped down it got down as low as like 54% and then they announced blend which is their their nft lending platform boom they shot back up they got as high as like 73

74% and then they slowly have come down since then to like about 50% and then they announced the end date of season two and they barely shot back up they shot back up to like 53% so now with season two ending here's the question what happens next does openc grab all this market share I mean first of all all this market share is fake right the volumes are inflated by 102 like most of the volumes we're seeing I I forget what the number is now but like it was above 50% of all volumes are fake right they were wash trading and that people are trying to farm this air drop so like volumes are going to I mean volumes have

already collapsed like crazy in last year they're about to collapse by way more than I think people realize and then blur's market share goes to next to nothing because once the wash trading all goes that gets rid of almost all of their volume I wish we had a chart up we do have some charts that can exclude the wash trading that's not this one but I imagine blur goes down I mean like blur's not gone by any means it's a great tool for Traders and especially when the nft market comes back blur is going to be an amazing tool I think I don't know how they're going to make Revenue they haven't figured that part out yet but that's not like the biggest concern they have tons of capital that they've raised but like I think one their token has just been a disaster and

sucks for anyone who thought that blur was going to be good and invested in that and too I think their market share goes down like crazy open see I think is the one that's going to take most of it although like open's really starting to bug me too theg Market general just really pisses me off holy but I really hope rable takes some more and then I hope more Niche marketplaces come out we need more marketplaces that are focused on a particular industry because it's so hard to be the Amazon of nfts right now because they just they do so many different things and they have so many different use cases it's not like a single product like it makes sense blur makes sense because it's for Traders it's a tool right and OBC probably will

be that Amazon like they're so big and so far along ahead of everyone else and so capitalized because they actually went for years charging platform fees before blur came and vampire attacked him and they had to get rid of that so like they made a ton of money so like I think OB still does well they still need to fire their PR team and hire new and then I think they'll do well but I do think like you said niche market because like think about what happens when Reddit launches their marketplace right it's gonna be huge and then like for example DraftKings when they launch their Marketplace which I assume they will do and you know there's a list of other so many other Starbucks and so on and so forth like all these bigger brands that are you know putting out hundreds of thousands of nfts some

of millions of nfts they're going to want their own Marketplace Nike you know whatever and so I think that's where it's going to go and so I think you're right Niche ones will take over but probably open see remains let's jump into some quick hits before we wrap here today Kai hit me up with the first one all right first quick hit of the day nouns Dow Forks once again and the burn proposal ends today so yeah okay so two things happened here with nouns you remember they did a fork about a month ago where basically half of the nouns over 450 nouns left the Dow in return for getting a refund essentially they gave their nil back to the Dow and they got 35 e now once that fork happened we knew this might happen now Forks can

happen anytime anybody at any point can propose a fork and noun Dow and they can leave the Dow and get this 35 e back and give their noun back so it happened again this week it ended a when was it it ended a few days ago a day ago it ended and 69 isn't that funny 69 nouns left this time somebody must have have made that number happen and as a result of that they 22 eth the 2200 eth was taken out of their treasury given back and so the Dows treasury is slowly going down now why did this Fork happen the main reason this Fork happened is because of a new proposal called the burn the issue that Nails Dow has is

they're not spending their treasury fast enough and so because they're not spending their treasury which their treasury was at 25 million before this Fork it'll be a bit lower now but it's still a significant Treasury and because they're not spending their their treasury fast enough a lot of nouns are like I don't know what I'm doing here right like I don't know why I'm part of this organization I don't know why I'm investing in this organization if they're not actually going and Building Things that I believe in so they want to leave right which is what the fork is so somebody within nanow somebody with big balls I must say proposed something called the burn and the way the burn would work is basically if ndow does not spend enough of their Treasury and they

have like a mathematical formula of what is considered enough of their treasury then they're going to burn the eth like legitimately they're just going to burn their money and that's basically a way to incentivize the Dow to say hey we got to spend our money faster or we're going to lose it spend it or lose it it's like corporate budget season it's like you don't spend it by the mq4 you lost your marketing budget see you later too bad so sad so now here's what I'm confused about this proposal for the burn has been going this week I'll pull it up on screen here and you can see that there's 80 people for it and 66 against it and my understanding was that this was going to end yesterday but now when I look at this proposal it says CED as the status

of this proposal and there's four statuses of proposals in ndow there's active cued complete and upcoming and so this should be Complete because it was supposed to end but for some reason it went into cued so I don't know if they've like delayed this because it should have passed in my mind it should be complete there's 84 66 against but yeah clearly something is going on on their end I'm not sure here's what I'll say I got a lot of respect for nouns Dow these guys are at the bleeding edge of experimenting of what it is to run a dow so I have nothing good but to say about them in terms of that like respect that experimentation especially when it's millions of dollars that you're

experimenting with but I'm also not surprised they're going to have face a lot of challenges Dows are very difficult we've all talked about that the challenges of running a dow the challenges of bringing everyone together so I would continue to follow nouns Dow but if you are an investor and noun out I don't know what to say there okay next up Pokemon physical cards from 300 to $5,000 profit in one day and he's talking about onchain Pokemon cards which we've talked about Courtyard previously there a app that's on on base where you can basically take your physical cards or packages of physical cards you give them to Courtyard essentially they use Brinks in a secure way to Vault them and then you can

basically trade them uh on chain uh which is really cool so it's real world assets not in the financial terms that we think of like real estate equities and stuff but just in in cards and collectibles which we think is going to be really big so last week they did a drop and when they you know pulled out what was in the collection of cards there was a what they called a Grail which is essentially it's actually a Mario Pikachu which is kind of sick which is a good Pokemon card from like 2016 or whatever anyway they immediately get ownership of of it they can put it on the marketplace immediately and sell it and immediately they put it up for $300 and it sold for $5,000 so that is pretty incredible you don't really get it without blockchain that just can't happen you could get a

package you could pull that card like okay this thing's worth a lot you got to go then get it appraised you got to find a way to like secure it so it doesn't get ruined you can put it up on let's say eBay maybe someone buys it if they trust you and then like somehow you got to get it shipped over there uh and like that's G to be a lot of feeds associated with that it's not so easy but this it's all done for you and it's all done on chain to make it seamless so pretty incredible actually and so I think we're going to see a lot more of this I got a feeling Courtyard goes goes real big soon and then secondly in the realm of tokenized Collectibles real world Collectibles another company called collector collector crypto I think it just launched as well and they're using

magic Eden as their sort of marketplace to sell them but it's on salana and so it's it's somewhat like Courtyard but on salana I was looking into it to get more details and just like how it all works and functions there's not much so I I don't really know like all the details to it but either way they're selling you know a bunch of Pokemon cards as well and they're doing it through magic Eden which is cool and it's on top of salana so this is becoming a big thing and I think we're going to see this just grow and grow and grow so very interesting to see now a competitor of Courtyard already which Courtyard just launched not too long ago too so Synergy is moving fast this is the trend we're seeing right now with consumer apps we're seeing the same thing with friend

Tech and socialy consumer apps launch on Launches on one chain and then it gets forked and Launches on like every other chain in the exact same way like I don't know if that's a good thing or a bad thing I guess like competition great but the the fact that on different ch is so funny to me because we keep saying this chains are going to be abstracted nobody's going to Care long term what chain you're on yeah yeah I don't know why people think that's competitive Advantage I mean it kind of is right now because we're dealing with just the existing your existing user base and the existing liquidity so like going where liquidity is of course makes sense eventually that will matter but also this competition is going to force bridging to get better and better and get extracted away but

anyway next up here Starbucks Odyssey sells 5,300 stamps at 20 bucks a pot yes Starbucks Odyssey just crushing it in the background like still in beta still a closed Eco system slowly from what we know they are slowly growing their Discord and slowly allowing new members in but at the same time they continue to sell digital Collectibles through their program and they did their most recent collectible which was PSL right what is PSL pumpkin spice latte SE and everybody yeah yeah and everybody loves pumpkin so lattes and loves Starbucks and they sold 5300

stamps digital Collectibles at $20 each which is amazing as far as I understand there is some utility to these stamps you also get points when you buy stamps and then points can be redeemed for other things within the Starbuck Odyssey program or platform but mostly these are just digital Collectibles it's incredible like Starbucks anybody who is trying to is has a business and is trying to figure out loyalty go look at what Starbucks is doing because they are certainly leading the way in the way that they have built this slowly step by step and engage their Community around having fun buying digital Collectibles J when we did our predictions article at

the end of last year I think you said that Starbucks was going to onboard some on million people think said no no I said five million I said said they would on board five I mean they they've done a great job but not quite those numbers yet I need them to go out of beta if they open up we would on board five imagine they did that like 30 million in their loyalty program their web one so imagine they just did it like in December and just ripped it up to five million real quick before the end of the year that would be life for the end of the year okay next up don't store seed phrases on password management tools yeah this is a a PSA Public Service Announcement this flipping. lost 20 eth overnight last night from their hot

wallet and the reason is he stored his seed phrases on last pass which is one of the password management tools there's one password there's last pass there's and a list of them but anyway what's interesting is he actually doesn't even store on there anymore he had it on a long time ago he deleted it because he's like oh it's a bad idea and somehow someone was able like hacked it and it's still in the database somewhere it didn't actually it deleted from him his point of view but it's still in last pass's database and those were hacked and now it's stole as well there's actually another one I sent this over to Jay last night there's another guy same thing he's like I deleted mine forever ago and it still got it so not only don't store them mother but if you ever have get that out of your wallet

and get a different seed phrase and write that seed phase down and put it in a vault I know that sounds weird but this is what we have to do right now until we figure this stuff out it it's funny Heather and I are traveling next year a little bit and so she was asking me if she should get a travel Vault I was like oh I have one she's like what are you putting it and I was like well like a couple like of my business credit cards I don't walk around with some like currency of different countries that I've been to and then mainly it's just a bunch of seed phrases she's like seed phrases what's that and I was like just got to real Mass like I don't know I got about 25 uh pieces of paper with 24 series of words on them that store like

like 90% of my net worth and she just we were walking us she looked at me like what don't worry about it so as weird as that is that is the solution don't put them in password management tool because they're in centralized database if they get hacked they can attach your name your email whatever to that but they don't even need that to be honest they just can scan it and go is there anywhere that there's 24 random words listed together and they can pull them they can steal your assets right away so get them out of there if there ever was in one get rid of that wallet move the assets I can't wait for the day when we don't have to deal with seed phrases anymore it's going to allow lot more people to onboard in the space and thankfully there's a lot of companies working on

those tools making that simpler we've had so many so many Innovations happening there that's WP Kai what a what a great show another great week in the web 3 world for everyone who's not who's you know not feeling good about it I hope you guys feel good after you listen to our show because we certainly are very optimistic make sure you check out today we didn't even actually talk about this earlier today Kai wrote a great Pro report on Unis swap value acrel super interesting we're actually going to talk about a little bit more on our show next week so tune in next week we've also got an awesome interview airing next Wednesday with privy all about account abstraction embedded

wallets removing seed phrases all these things how we're going to make consumer apps easier for new users to use we'll see you guys all next week have a great weekend thank you for listening to web through Academy your one trusted source to capitalize on the next big phase of the internet if you enjoyed this episode please share it and subscribe or follow so that you don't miss the next one while you're at it there's a link in the description for our free newsletter where we provide timely and relevant web 3 insights so you can confidently build and invest in web 3 make sure to subscribe today one final note this podcast is for educational purposes only and nothing we say is financial advice crypto and web3 are risky and you should never invest more than you're willing to lose thank you friends and see you in

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