Bloomberg Crypto Full Show (10/18/2022)
♪ >> WE ARE LIVE FROM BLOOMBERG'S WORLD HEADQUARTERS IN -- >> WELCOME TO BLOOMBERG RECTO, THE PEOPLE, TRANSACTIONS, AND TECHNOLOGIES SHAPING THE WORLD OF DECENTRALIZED FINANCE. MATT: THE WINTER CHILL HITS THE VC FUNDING. WE SPEAK TO MICHAEL ANDERSON, ONE OF THE EARLIEST AND LARGEST -- PART OF FRAMEWORK, ONE OF THE LARGEST VENTURE CAPITALS. >> WE NAVIGATE THE COMPETITIVE LANDSCAPE WITH A RIVAL TO OPEN C AND THE BIGGEST NFT MARKETPLACE ON'S ALANA. MATT:
BANKRUPT HEDGE FUND THREE ARROWS IS UNDER INVESTIGATION. WE HAVE THE DETAILS AS THEY TRIED TO DETAIL THE FALLOUT OF THE CRYPTO CRASH. SONALI: WE WILL TAKE A LOOK AT THE MARKET. AFTER A RALLY, BITCOIN IS BACK ON THE DAY, DOWN .6% OVER 24 HOURS. ETHER IS ALSO DOWN 1.5 PERCENT EVEN MORE THAN BITCOIN.
NOT ALWAYS BAD. WE HAVE POLYGON UP 1.6% ON THE DAY, PROJECTS LIKE POLYGON ARE DRIVING THE BROADER BLOOMBERG GALAXY INDEX HIGHER ON THE DAY BUT AGAIN THERE IS WEAKNESS IN COINBASE AS YOU SEEK UP TO MARKETS AND BITCOIN AND EITHER DOWN 3.3% ON THE DAY.
I KNOW YOU ARE LOOKING AT THE TITER MARKETS THOUGH. MATT: I'M LOOKING AT VC'S AND PITCH BOOK TOGETHER RESEARCH SHOWING VC'S FUNDING INTO CREEK TO START UPS PEAKED IN Q1. MORE THAN $10 MILLION, BUT THEN DROPPED BY MORE THAN HALF, DOWN TO LESS THAN $5 MILLION NOW. IT IS NOT HARD TO FIGURE OUT
WHY . OBVIOUS OF THE WINTER CHILL, PRICES WAY DOWN FROM WHERE THEY WERE AT THE END OF LAST YEAR, MAKING IT LESS INTERESTING SPACE FOR LESS GET TO HANNAH MILLER, BLOOMBERG RIPPED OVER ORDER, TO ASK FOR THE DETAILS. WE KNOW WHY, TELL US HOW BAD THIS IS. HANNAH: IT IS READY BAD. THIS IS WRECKING FOR THE CRYPTO INDUSTRY, THOSE ONCE WHITE-HOT ON CRYPTO.
WE HAVE SEEN A STEEP DECLINE. ONCE THE INDUSTRY'S BIGGEST CHEERLEADERS, VCS ARE PULLING BACK FOR SURE. SONALI: IS ALL TROUBLE IN PARADISE HERE? IS THERE ANY SILVER LINING ON SOME FOLKS STEPPING BACK? DOES IT CREATE OPPORTUNITIES FOR THE FOLKS STILL THERE? HANNAH: YEAH. AND THERE ARE PEOPLE VERY MUCH STILL COMMITTED TO THE SPACE, STILL HIRING, DEVELOPERS ARE STILL FINDING OPPORTUNITIES TO JOIN VARIOUS STARTUPS AND WE HAVE SEEN ALSO A LOT OF INTEREST IN NFT GAMING DEALS. NFT'S IN GAMING IS A WAY TO BRING MAINSTREAM AUDIENCE WITH CRYPTO. SONALI: THAT IS BLOOMBERG'S HANNAH
MILLER, THINK YOU FOR YOUR INSIGHT. WE WILL SHIFT OVER BECAUSE LAST WEEK IN WASHINGTON, JP MORGAN'S CEO JAMIE DIMON DOUBLED DOWN ON HIS DISDAIN FOR CRYPTO TOKENS BUT STILL ONE BACK TO BLOCKCHAIN. >> BLOCKCHAIN IS A TECHNOLOGY WHICH IS REAL, DEPLOYED IN MANY PLACES. WE DEPLOY IT WITH ONYX, WHICH SOME OF YOU, A STABLECOIN BACKED BY U.S. DOLLAR DEPOSIT AT JP MORGAN AND THERE ARE A LOT OF TECHNOLOGIES THAT WILL WORK AREA THEY ARE GOING TO REPLACE LEDGERS, MAKE THINGS CHEAPER, I THINK BANKS WILL BE BIG USERS OF THAT.
IT MAY DECERTIFY PARTS OF BANKING AND SO BE AT. MY ISSUE IS WHAT YOU GUYS COLIC AT THE CURRENCY WHICH I CALL A CRYPTO TOKEN THAT DOES NOT DO ANYTHING. SONALI: JOINING US NOW IS LAURA LITVAN, A COFOUNDER OF CRYPTO VENTURE CASH MICHAEL ANDERSON, A COFOUNDER OF CRYPTO VENTURE -- HE SAID BLOCKCHAIN CANDACE INTERMEDIA PARTS OF THE BANKING SYSTEM. CLEARLY YOU ARE LOOKING AT SOME
OF THOSE AREAS. WHAT ARE THEY AND HOW SIGNIFICANTLY CAN THEY START TO CHANGE THAT SYSTEM? MICHAEL: I THINK THE PART ABOUT BLOCKCHAIN BEING REAL IS COMPLETELY RIGHT. THERE ARE NUMBER OF DIFFERENT APPLICATION CATEGORIES BUILT ON BLOCKCHAIN TODAY. CRYPTOCURRENCY AND BITCOIN HAPPEN TO BE ONE OF THEM, AND FTS HAPPEN TO BE ANOTHER. WE ARE STARTING TO SEE THE RAPID INNOVATION OF WHAT THE CONCEPT CAN BRING ABOUT, NOT JUST FROM A COST SAVINGS PERSPECTIVE FOR EXISTING BUSINESSES BUT NEW TYPES OF ECONOMIC TRANSACTIONS CAN EXIST IN A NEW INCO SYSTEM THAT CAN CONNECT INTO THE FINANCIAL ECOSYSTEM. IN THE PREVIOUS EGLI, GAMING HAPPENS TO BE ONE OF THE SEGMENTS OF THE MARKET THAT IS COMPLETELY NEW AND A NEW BUSINESS MODEL FOR GAMING.
IT WILL BRING APART A HUGE AMOUNT OF ECONOMIC ACTIVITY. MATT: HE MAKES AN INTERESTING POINT ABOUT THE COINS AND I WAS -- I HAVE WONDERED MYSELF. EVEN IF YOU SEE THE BEAUTY IN THE BLOCKCHAIN, ASIDE FROM FAITH FROM THE GROUP, WHAT IS THE REASON THESE TOKENS SHOULD BE WORTH A LOT OF MONEY? CONSIDERING THE FACT YOU DON'T EVEN NEED A FULL TOKEN TO GET ON THE BLOCKCHAIN AND THEY ARE INFINITELY DIVISIBLE. MICHAEL: I THINK ONE OF THE HARDEST
THINGS WE DID FOR OURSELVES AS AN INDUSTRY IS CALLED THIS INDUSTRY THE CRYPTOCURRENCY INDUSTRY. WHAT IT SHOULD HAVE BEEN, CRYPTO COMMODITIES WOULD HAVE BEEN A BETTER MONIKER FOR THESE ASSETS. IT IS A NEW TECHNOLOGY PLATFORM. THERE ARE REASONS WHY TOKENS NEED TO EXIST IN SYSTEMS TO SECURE NETWORKS. ONE OF THE WAYS THE PREVIOUS ECOSYSTEM FOR THEORY MARKS IS YOU ARE TAKING A THEORY IN TOKENS AND PUTTING THEM UP AS ECONOMIC THAT -- I THEORY HIM -- ETHEREUM TOKENS AND PUTTING THEM UP AS ECONOMIC CURRENCY. IT IS IT TANTAMOUNT TO A
MASSIVELY SCALABLE AND PROFITABLE COMPANY IF IT IS TRADED ON THE NASDAQ LIKE A SALESFORCE OR WORKDAY. IF WE LOOK AT THAT FROM THAT PERSPECTIVE, THERE ARE ASSETS IN THIS ECOSYSTEM THAT ARE FUNDAMENTALLY VALUABLE. MATT: TELL US ABOUT SOME BUSINESSES YOU ARE INVESTED IN DOING ACTUAL WORK WITH THE BLOCKCHAIN THAT HAS NOTHING TO DO WITH THE VALUE OF THE TOKEN FOR EXAMPLE SMART CONTRACTS OR RECORDING EVENTS. WHAT CAN THE BLOCKCHAIN DO THAT
YOU ARE SEEING IT WORK IN YOUR COMPANIES. MICHAEL: ONE OF THE COMPANIES WE JUST ANNOUNCED WAS STARDUST. HANNAH MILLER, HOW TALK TO HER BROKE THE STORY EARLIER. THEY JUST RAISED A NEW ROUND OF FUNDING WHICH WE CONTINUED ON WITH OUR EXISTING INVESTMENT. WHAT THEY DO IS PROVIDE AN ECOSYSTEM FOR TRADITIONAL GAME DEVELOPERS TO DEVELOP THEIR GAMES AND INTEGRATE BLOCKCHAIN WITH THE EASE OF INTEGRATION OF AN API AND TOOLING AND INFRASTRUCTURE.
WE LIKEN IT TO BE SORT OF THE COINBASE FOR WEB THREE GAMING WHERE IT WILL JUST BE THE ON RAMP FOR HUNDREDS OF DEVELOPERS BUILDING IN THIS ECOSYSTEM WHO WANT TO INTEGRATE NFT'S AND THE INTEGRATION OF NFT'S REPRESENTS A NEW BUSINESS MODEL FOR GAME DEVELOPERS. IT IS NOT A SPECULATIVE FERVOR AS WE'VE SEEN WITH NFT GAMING SO FAR. THE TENS OF DEVELOPERS BUILDING ON TOP OF IT ARE ACTUALLY BUILDING AND SUCCEEDING TODAY AND -- WE WILL CONTINUE TO SEE THAT TREND CONTINUE SONALI: THERE ARE A LOT OF VCS LOOKING AT THE GAME ECONOMY. DOES IT REALLY ONLY FIT FOR A YOUNGER RISING GENERATION OR IS THIS SOMETHING THAT CAN BE BUILT AT SCALE IN THE NEAR-TERM? MATT: EVEN FOR OLD PEOPLE LIKE ME. SONALI:SONALI: EVEN FOR OLD PEOPLE LIKE ME? [LAUGHTER] MICHAEL: ABSOLUTELY IS THE ANSWER. THINKING ABOUT THE GAMES INDUSTRY, $200 BILLION OF REVENUE WILL FLOW THROUGH THE GAMES INDUSTRY, THAT IS LARGER THAN MUSIC, MOVIES, AND ARE COMBINED. OUR GUESS IS WHEN YOU INTEGRATE
NFT'S HAS A NEW BUSINESS MODEL FOR YOUR GAME, 90% OF THE PEOPLE PLAINLY A MOTIVE AND KNOW THERE IS INTEGRATION FOR NFT'S IN THE BACKEND. SOME PEOPLE WILL AND THE GAMES WILL DEEPLY INTEGRATE THE BLOCKCHAIN MORE AND MORE AS THINGS BECOME MORE DECENTRALIZED OVER TIME BUT BY AND LARGE MOST PEOPLE ARE GOING TO CONTINUE TO PLAY THEIR GAMES ON IPHONES, USE AN APP PURCHASE VIA APPLE TO MAKE PURCHASES OF THESE NFT IS THE SAME WAY THEY DO TODAY. SONALI: EARLIER THIS YEAR, A LOT OF THE OVERHANG HAD TO DO WITH DELEVERAGING IN THE SYSTEM, BIG FIRMS RUNNING INTO TROUBLE.
LATER IN THE AIR, REGULATION WAS THE OVERHANG. THERE ARE A LOT OF CONCERNS ABOUT PROJECTS THAT HAVE S.E.C. HANDLING THEM MOVING FORWARD. WHEN YOU SEE ANYTHING FROM NFT'S TO DOW'S IN THE CROSSHAIRS OF REGULATORS, HOW DOES THAT IMPACT THE WAY YOU MIGHT INVEST IN SOMETHING IN YOUR FUTURE RETURN OF WHAT THAT WILL LOOK LIKE? MICHAEL: ANY NEW INVESTMENT THERE IS MORE OF A REGULATORY DILIGENCE LET'S SAY NOW THAN PREVIOUSLY. AND WE ARE STARTING TO PIECE TOGETHER AND BARELY PUT THE DOTS CONNECTED TOGETHER AS TO WHERE WE THINK REGULATORS WILL BE AT A YEAR OR TWO FROM NOW.
WE ARE TRAINED TO DO THE BEST WE CAN, THERE'S JUST NO OVERSIGHT OR CLEAR GUIDANCE, NO NOTHING TO GO OFF UP-TO-DATE TO SAY THIS IS OK AND THIS IS NOT OK. THAT VOID IS CAUSING ISSUES BUT GOING FORWARD, I WOULD SAY IT HAS WORN OUT THIS PERSPECTIVE OF WHAT I WOULD CALL MAY BE PUBLIC PERMISSION DEFINE, WHERE IT IS STILL PUBLIC, IT IS EXISTING ON A DECENTRALIZED OPEN TRANSPARENT BLOCKCHAIN, THE ADVANTAGES OF SUCH ARE TANTAMOUNT TO A NEW INNOVATION WITHIN FINANCIAL, BUT IT IS SOMETHING WHERE YOU HAVE KY SEE, THE CONTROLS IN PLACE THAT ARE REQUIRED FOR TABLE STATES REGULATION, WHICH I THINK IS ULTIMATELY GOING TO BE THE FUTURE OF D5. MATT: THANK YOU FOR JOINING US, MICHAEL ANDERSON OF FRAMEWORK VENTURES, FASCINATING STUFF. APPRECIATE YOUR INPUT. I WOULD QUICKLY GIVE OUR VIEWERS BREAKING NEWS. IT SEEMS LIKE THE MASSIVE
MELTDOWN AND THEN MELT UP IN GUILDS AFFECTED EVERY CORNER OF THE MARKET IN SOME SENSES EVEN CRYPTO AND BITCOIN REMAINED RELATIVELY STABLE. THE BANK OF ENGLAND COMING OUT AND CONFIRMING ITS FIRST GUILD SALE OPERATION WILL TAKE PLACE ON NOVEMBER 1. THIS IS INTERESTING BECAUSE THE FTC -- THE FT SAID THEY MIGHT HAVE TO PUSH BACK THEIR QUANTITATIVE TIGHTENING OPERATIONS. THE BANK OF ENGLAND CAME OUT THIS MORNING AND REFUTED THAT FT REPORT AND NOW THEY ARE GIVING US AN EXACT DATE. THE FIRST GUILD SALE OPERATION, THEIR FIRST QUANTITATIVE TIGHTENING WILL TAKE PLACE ON NOVEMBER 1.
COMING UP, WE SPEAK TO THE COFOUNDER OF MAGIC EDEN, A RIVAL OPEN SEA -- A RIVAL TO OPEN SEE AND IT IS THE BIGGEST NFT MARKETPLACE ON SOLANO. SONALI: MUST AFTER THEIR BANKRUPTCY, A CAPITAL BAG IS STILL BEING SOUGHT AFTER. MATT: TO CHECK OUT THE LATEST, CHECK OUT CRYP <GO> ON THE TERMINAL. MATT: THIS IS BLOOMBERG CRYPTO, I AM MATT MILLER WITH CHANEL ELASTIC, KAILEY LEINZ IS OFF TODAY. A TRAIN WRECK HAS TAKEN PLACE IN THE MARKETPLACE FOR ONCE COVETED DIGITAL IMAGES. SONALI BASAK HAS BEEN TRACKING THE BUST IN NFT. SONALI:
WE SEE THE PLUMMET AS A BROADER CRYPTO MARKET CAME UNDER PRESSURE IN TERMS OF PRICES, TRADING VOLUMES, AND REGULATORY CONCERNS. ANALYTICS FIRM NON-FUNGIBLE TRACKS A 77% DROP BETWEEN THE SECOND AND THIRD QUARTER OF THIS YEAR WITH VOLUMES GLOBALLY FALLING TO $1.7 BILLION IN THE THREE MONTHS THROUGH SEPTEMBER. THERE HAVE BEEN NEW HEIGHTS REACHED IN CERTAIN CORNERS OF THE MARKET. NEW NFT MINTS REACHED AN ALL-TIME HIGH DURING ONE WEEK IN SEPTEMBER THOUGH LARGELY DUE TO DAVIES OF SMALLER COLLECTIONS. THAT HAS LED TO SHIFTS IN EXCHANGES.
ONE BECAME A UNICORN THIS YEAR. MAGIC EDEN WHICH FOCUSES ON THE SALINA BLOCKCHAIN EXPAND MARKET SHARE TO 13.4% IN SEPTEMBER WHEN IT WAS LESS THAN 1% IN MARCH. ACCORDING TO TRACKER. RADAR. BY COMPARISON, THE WORLD'S BIGGEST NFC MARKETPLACE -- NFT MARKET PLACE SIDES SHARE DROP FROM 85% TO 38% IN THE SAME TIMEFRAME.
MAGIC EDEN MORE THAN DOUBLED ITS SALES SEPTEMBER AND HAS SUCCEEDED BECAUSE THE AVERAGE PRICE OF AN NFT HAS BEEN LOWER ON THAT MARKETPLACE. ACCORDING TO DAP RADAR, THAT IS LESS THAN $45 FOR AN AVERAGE NFT VERSUS MORE THAN $80 ON THE OPEN SEA OVER 30 DAYS. PEOPLE ARE BUYING CHEAPER TOKENS AS THEY PLAY GAMES AND INSTEAD OF LOOKING TO INVEST THOUSANDS, OR EVEN MILLIONS OF DOLLARS INTO ART THEY HOPE WILL DOUBLE IN PRICE SOMEDAY. THIS ALL COMES AS THERE ARE
REAL CHALLENGES IN THE MARKET THAT EXIST FOR SOME OF THE MOST POPULAR PROJECTS. THE SEC'S INVESTIGATING THE COLLECTIONS ON WHETHER OR NOT A VIOLATED FEDERAL LAW THROUGH DIGITAL ASSET SALES. THAT MEANS THAT NFT MARKET FACES THE SAME REGULATORY OVERHANG AS MUCH OF THE BROADER DIGITAL ASSET MARKETS AND IT IS UNCLEAR WHAT IT WILL MEAN FOR THE VALUE OF THE ASSETS IN THE LONGER TERM. MATT: LET'S TALK ABOUT THAT.
JOINING US NOW IS ZHUOXUN YIN, A COFOUNDER OF MAGIC EDEN. IT IS THE BIGGEST NFT MARKETPLACE ON SOLANA. THANK YOU FOR JOINING US. WHAT DO YOU THINK ABOUT THE
HUGE REGULATORY OVERHANG? IS THAT A CONCERN DO YOU THINK FOR COLLECTORS? >> THANKS FOR HAVING ME. -- ZHUOXUN: THANK FOR HAVING ME. ULTIMATELY WHAT WE WANT TO SEE IS A VERY ROBUST NFT ECOSYSTEM. I THINK IN SOME WAYS EVERYBODY IN THE ECOSYSTEM WANTS TO SEE SOME GUIDANCE, SOME INDICATION OF WHAT IS ACCEPTABLE AND WHAT IS NOT. MAGIC EDEN, THE WAY WE THINK ABOUT IT, WE WANT TO BE GOOD ACTORS FOR THE CREATOR ECONOMY AND COLLECTORS. WE WANT TO SHOW COLLECTORS THE MOST DIVERSE TYPE OF INVENTORY AS POSSIBLE.
WE HAVE BEEN SPENDING A LOT OF OUR TIME EFFECTIVELY BROADENING THE CREATOR BASE AND AUDITING THE NUMBER OF TOOLS AND WAYS OF DISCOVERY FOR COLLECTORS TO COME AND DISCOVER NFT'S FOR THE FIRST TIME. MATT: WHAT DO YOU THINK OF THE IDEA WE WENT THROUGH THIS YELLOW PERIOD WITH WAY TOO MUCH MONEY -- YOLO PERIOD WITH WAY TOO MUCH MONEY. INVESTORS WERE BETTING UP -- IS ANYTHING EVER GOING TO BE WORTH AS MUCH AS IT WAS AT THE END OF LAST YEAR OR THE BEGINNING OF THIS YEAR? ZHUOXUN: THAT IS NOT EVEN PROBABLY SCRATCHING THE SURFACE, RIGHT? I THINK THE MARKET HAS BEEN IN THE PROCESS OF CORRECTION FOR SURE. NFT'S HAVE BEEN ALONGSIDE ALL OF THAT. WE KIND OF EXPECTED THIS TO HAPPEN. THIS IS IN MANY WAYS MIRRORS
WHAT HAPPENS IN 2018-2019 IN WHICH THEN END UP BECOMING A D5 ECONOMY BROADENING OUTSIDE OF THAT. INTERESTINGLY, WE HAVE SEEN INTERESTING ACTIVITY AND THIS IS DATA SONALI WAS SHOWING, WE HAVE EFFECTIVELY SEEN THE NUMBER OF TRANSITIONS ON MAGIC EDEN REACH ALL-TIME HIGHS IN SEPTEMBER, A FEW WEEKS AGO. WHICH IS INTERESTING BECAUSE IT SHOWS US THE AMOUNT OF ENGAGEMENT AND AMOUNT OF USER ACTIVITY ON THE PLATFORM STILL SEEMS ROBUST AND IT IS DIFFERENT KINDS OF NFT'S PEOPLE ARE TRADING. IT IS NOT YOUR HUNDREDS OF THOUSANDS OF DOLLAR APES.
THAT MAY BE PART OF THE MARKET BUT NOW IT IS LOWER VALUE ITEMS AND ENTERING COMMUNITIES FOR THE FIRST TIME. I THINK IT IS REALLY EXCITING. I THINK THIS KIND OF INNOVATION WE EXPECT TO SEE MORE OF OVER THE NEXT COUPLE YEARS, EVEN IF THE MARKET IS THE WAY IT IS. SONALI: YOU ARE NONE FOR YOUR LINKAGE TO SOLANO, I'M CURIOUS ON WHETHER YOUR THOUGHTS CHANGED ABOUT ETHEREUM AND HOW NFT'S CAN OPERATE ON ETHEREUM VERSUS ALANA GIVEN THE CHANGES AFTER THE MERGE. ZHUOXUN: NOTHING TOO MUCH AROUND THE MERGE. WE THINK THERE IS DEFINITELY
INTERESTING ACTIVITY ACROSS MULTIPLE CHAINS. SO WE WANTS AN AGGREGATED PRODUCT WHICH AGGREGATES ALL OF THE MARKETPLACES ON ETHEREUM AND WE ALSO LAUNCHED A LAUNCHPAD WHICH ALLOWS CREATORS TO EFFECTIVELY COME TO MAGIC EDEN AND DROP COLLECTIONS ON A THEORY MAN SOLANA. I THINK -- ETHEREUM AND SOLANA. I THINK WE ARE FOCUSED ON ETHEREUM AND SOLANA. IT IS EXCITING TO SEE CONTINUED INNOVATION ON THINGS LIKE POLYGON. THEY JUST MADE AN ANNOUNCEMENT WHICH WE THOUGHT WAS EXCITING. SOME OF THE GENERATION CHAINS
ARE SWEET. NOW THAT WE ARE IN THIS MARKET, YOU WILL SEE THE BUILDERS COME TO THE FORE AND OVER THE NEXT COUPLE YEARS WE EXPECT A LOT OF INNOVATION TO HAPPEN ACROSS MULTIPLE CHAINS. WE CONTINUE TO BE EXCITED ABOUT IT. SONALI: EARLIER YOU RAISED MONEY AND
WERE ABLE TO CATAPULT INTO UNICORN STATUS. DO YOU THINK THERE WAS A WINDOW? HAVE THINGS GOTTEN TOUGHER FOR THOSE WHO MIGHT BE TRYING TO RAISE MONEY? DO YOU THINK THAT THINGS HAVE MATERIALLY GOTTEN ANY WORSE UP THERE? ZHUOXUN: I THINK IT IS DEFINITELY GOTTEN MORE CHALLENGING AS AN EARLY STAGE START UP. IN MANY WAYS, THIS IS PROBABLY HEALTHY FOR THINGS OVERALL AND THIS IS TRUE BY THE WAY OF MANY -- TRUE ACROSS MANY LEVELS. WHAT WE SEE ON THE SITE IS CREATORS ARE BEING MORE DILIGENT ABOUT HOW AND WHEN THEY WANT TO LAUNCH THEIR CONNECTIONS. -- COLLECTIONS. THIS CORRECTION WAS PROBABLY OVERALL HEALTHY BUT AT THE SAME TIME, IF YOU ARE BUILDING NOW AND COMING UP WITH NEW IDEAS, IN MANY WAYS IT IS THE BEST TIME TO DO IT BECAUSE IT IS ALSO VERY LITTLE NOISE COMPARED TO WHAT IT WAS SIX MONTH AGO.
IF YOU ARE AN INVESTOR, A CREATOR, I THINK THIS IS NOW AN EVEN BETTER TIME TO GET STARTED. WE ARE SEEING THE PEOPLE STILL HERE AND WILL REMAIN HERE IN THE NEXT SIX TO 12 MONTHS WILL BE THE ONES SERIOUS ABOUT THIS STUFF. THAT IS TEAMS LIKE MAGIC EDEN WHO ARE DEDICATING THEIR ENTIRE TIME TO BASICALLY BUILDING OUT THIS ECOSYSTEM. MATT: WHAT HE THINK ABOUT THE FUTURE OF NFT'S. WILL IT BE MAINLY -- ARE THEY CONTINUED TO BE MAINLY USED FOR COLLECTIBLES, ARTWORK, AND THAT SORT OF THING OR WILL WE SEE A REAL FUNCTIONALITY TURNING THEM INTO TOOLS, TITLES, AND DEEDS? ZHUOXUN: I THINK WE EXPECT THERE TO BE A LOT MORE INNOVATION AROUND THIS.
OBVIOUSLY THE FIRST USE CASE WAS ART AND COLLECTIBLES. THAT MARKET WILL REMAIN IN MY OPINION. I THINK COLLECTIBLES IT'S GENERALLY SOMETHING PEOPLE FIND VERY EASY TO UNDERSTAND. AND IT IS SOMETHING THAT ALLOWS PEOPLE TO ACCESS COMMUNITIES OR PROVIDE FOR REPRESENTATION OF COMMUNITIES. A LOT OF PEOPLE TALKED ABOUT
THIS ON THE SHOW ALREADY EARLIER BEFORE ME BUT WE OBVIOUSLY ARE SPENDING A LOT OF TIME IN GAMING . WE HAVE CONTINUED TO SEE CAPITAL MARKETS ACTIVITY IN GAMING BUT AT THE SAME TIME THERE'S ALSO BEEN A LOT OF INFRASTRUCTURE AND TOOLING BUILT AROUND GAMING AND WE CONTINUE TO BE EXCITED ABOUT HOW THAT IS PLAYING OUT AND WE EXPECT TO SEE MANY MORE TEAMS LAUNCH THEIR GAMES IN WEB THREE OVER THE NEXT SIX TO 12 MONTHS. WE ASKED RICK TO FORMS OF MEDIA OUT OF -- START TO COME TO THE FOUR OF NFT USE.
THERE ARE MANY TEAMS ASK AIRMEN TING WITH WAYS TO EFFECTIVELY GET THEIR USER BASE IS TO HAVE SAY IN NARRATIVES WHETHER STORYLINES, MOVIES, TV SHOWS, THINGS LIKE THAT. WE CONTINUE TO BE THRILLED ABOUT THE ACTIVITY WE SEE THERE. ABSOLUTELY WE EXPECT THERE TO BE MORE INNOVATION IN THE COMING MONTHS. MATT: VERY COOL AS GAINS IN MULTIMEDIA EXPERIENCES TURN INTO OUR UNIVERSE OR METAVERSE. THANK YOU SO MUCH, ZHUOXUN YIN OF EDEN.
THIS ASSET CLASS IS CHANGING THE WAY WE LIVE. LOOK FOR THAT THROUGH THE BLOOMBERG RADIO APP, IHEART RADIO, OR WHEREVER YOU GET YOUR PODCAST. THIS IS BLOOMBERG. ♪ MATT: THIS IS BLOOMBERG CRYPTO. I AM MATT MILLER WITH SONALI BASAK. KAILEY LEINZ IS OFF. LET'S GET TO CRYPTO STORIES
THAT CAUGHT OUR ATTENTION, A NEW BLOCKCHAIN IS LIVE WITH ROOTS IN MENTOS FAILED CRYPTO AMBITIONS. META-MEANING FACEBOOK. THE LABS ARE AIMING FOR FASTER, MORE SECURE TRANSACTIONS AS BACKING WITH THE LIKES OF BYTEDANCE VENTURE. THEY WERE DESIGNED TO HANDLE THOUSANDS OF NONTRIVIAL TRANSACTIONS PER SECOND. SONALI: LOOKING AT TX AND ITS FOUNDER,
THEY ARE BEING PROBED BY THE TEXAS SECURITIES REGULATOR. IT IS INVESTIGATING WHETHER THE COMPANIES YIELD PAIRING CRYPTO ACCOUNTS ARE ILLEGAL SECURITIES OFFERINGS. ACCORDING TO THE STAY, FTX SHOULD NOT LOOK -- MOVE FORWARD WITH ITS 1.4 BILLION DOLLAR PURCHASE OF VOYAGER ASSETS WHILE THE INVESTIGATION IS ONGOING. MATT: I WOULD HATE TO BE PROBED. U.S. REGULATORS ARE PRYING INTO THE
REMNANTS OF FAILED HEDGE FUND THREE ARROWS CAPITAL, THE CFTC AND FCC ARE PROBING A RANGE OF POSSIBLE LEGAL VIOLATIONS INCLUDING MISLEADING INVESTORS ABOUT THE STRENGTH OF THEIR BALANCE SHEET AND NOT REGISTERING WITH THE AGENCY I -- AGENCIES. CREDITORS SAY THEY ARE OWED BILLIONS OF DOLLARS AFTER THE COLLAPSE. SONALI: WHERE DO WE BEGIN WITH THREE ARROWS? MATT: NOT JUST THREE ARROWS BUT IT SEEMS IKE WE ARE BUILDING THIS CLASS OF CRYPTO FUGITIVES THAT ARE RUNNING AROUND THE WORLD CLAIMING THEY HAVE NOT SEEN ARREST WARRANTS AND NOT TURNING THEMSELVES INTO AUTHORITIES. SONALI: ON A SERIOUS BASIS, WHETHER THEY ARE IN SINGAPORE OR A TEXAS REGULATOR OR THE SEC OR THE OTHERS, YOU HAVE DIFFERENT REGULATORS SAYING THREE ARROWS MAYBE SHOULD HAVE REGISTERED HERE BECAUSE THEY WOULD TAKE MONEY FROM PEOPLE IN THE UNITED STATES. THE OTHER INTERESTING THING,
DID YOU KNOW THE VOYAGER CEOS OPTING TO SETTLE NEGLIGENCE CLAIMS TIED TO THREE ARROWS CAPITAL LOANS AS PART OF THE VOYAGER DIGITAL ISSUES TOO? IT IS WRAPPED UP IN EACH OTHER. MATT: I DID NOT KNOW THAT SPECIFIC FACT BUT YOU ARE RIGHT, IT IS ALL VERY MUCH INTERTWINED AND THAT IS CERTAINLY GOING TO CONTINUE. WE WILL HAVE MORE STORIES TO TALK ABOUT AND WE WILL DO THAT NEXT WEEK. EVERY WEEK ON TUESDAY AT 1:00 P.M., AND WE -- THE RIPPLE CEO JOINS US. THIS IS BLOOMBERG. ♪
2022-10-20 12:12
