I was thinking about you yesterday. When all of this was happening, can you walk us through what took place and how serious you see this a decline in terror? Well, i mean the decline. Uh looks more like a a demolition uh at this point. Uh, taras uh, cryptocurrency, otherwise known as luna, has lost over 99 of its value, and that was the underlying asset that underpinned the price of the ust stablecoin. And so when the uh lunacoin lost all of its value. The asset that effectively underpinned the ust stablecoin uh lost its backing and so thats. Why weve seen the stablecoin drop bounce back a little bit in hopes of recovery drop and uh? It may be in its final tail spin. At this point, we dont know like 2008. If some of the largest uh call it financial institutions in crypto jump in to bail it out, there could be a recovery, otherwise the uh, the outcomes looking doubtful and i just want to separate so you know the difference between this and other stable coins. This is a purely algorithmic, stable coin theres, no u.s dollars in a bank backing it like youve, seen with with tether or usdc, and i do think this concept is right and i think it is the future uh. This is just another one that may get into the history books as a lesson that got us to designing an algorithmic solution, but theres its algorithmic um, and so its automatically adjusting youre taking terror coins to to buy the ust coins and its based upon demand.

It broke the buck and its put the entire crypto market into uh into a tailspin. Most of what youve, seen in terms of cryptocurrency declines recently has been uh is connected to this catastrophe. Yeah, i mean look. Youve got yesterday near the close citadel and blackrock denying that they had any involvement in this sell off. Theyre theyre telling uh the the spokesperson. People are telling uh uh reporters that the situation does not trade, they do not trade stable coins and they had nothing to do with it. Are you? Are you buying that that you, you seem to say this is just algorithmic, so that sounds right and also. I know this is a separate situation, but it is taking down the entire market. You saw what janet yellen said: shes using this sell off as an opportunity to get in there with the framework of regulation bitcoin falling to 26 000 earlier this morning. Look at this fall its been stunning brock, its down from 65 000 just six months ago. Its trading now at 27 000.. So what about these losses? Do you think this is going to be severe enough to cause this entire market to unravel? Is this a 2001.com phenomenon? Well, it is uh um, a major market event in crypto. If youve been in this space for a while, um weve been here before, and not something that im personally concerned with, but if youve watched me even on your show many times maria, we always talk about the volatility in this market.

Uh theres been incredible returns, but also very uh rapid uh declines, so this should come as no surprise and again a a a proper warning. This is a very volatile market and you shouldnt be putting uh uh over allocating to this asset class. Certainly, if you dont know what youre doing uh in terms of regulation and whats, going on with janet yellen, of course, uh. An event that is causing losses like these is is always going to be used as a call for greater regulation, im, not sure thats. The right answer: we should continue to go through a methodical process to make the best decisions regarding our uh, our collective uh future. So when you look at this entire space, do you see value in one area? Over another i mean the the trading platform. Coinbase is really feeling the impact of this dive. The company uh, revealing in its quarterly filing this week that users crypto assets, lack bankruptcy protection warning customers could be viewed as general, unsecured creditors, coinbase held 256 billion dollars in cash and crypto at the end of the first quarter brock. How do you see it? Well? Coinbase is trading, i think, now, for less than half of its balance sheet, i mean uh. Excuse me its its uh uh. Its balance sheet is half of its uh market gap at this point thats, not quite where stocks were during the dot com boom. I was around for that. I was a 1997 entrepreneur, and businesses like ebay that were profitable were trading for less than cash uh.

This is a a potentially interesting uh buying opportunity for crypto uh, as well as uh for coinbase. Uh. Coinbase, though, is uh uh obviously incurred a great deal of loss uh. It does have a very large uh customer base, from which it can benefit over time, uh and, as we say in the crypto space uh buy on the dip and and hold on for dear life. I was there too brock. I remember what happened and it was ugly uh. It did get better, though, over the long term brock its great to see you this morning, thanks so much sir.

https://www.youtube.com/watch?v=wUL2NFRtPr8