What does whats happening in stable coins mean for the broader crypto market and to me this isnt about you, know: tether truthers, taking an unwarranted victory, lap or even algorithmic stable coins versus better backed one its about the inability of the industry to self police. It feels like for years weve been told that cryptos better, because the incentives are better but is whats happening with terror usd. How is it not a black eye for the entire industry, its one of the worst scandals in the history of the crypto industry, its a gigantic black eye were talking, 55 billion dollars of paper, wealth, wiped out and obviously less in terms of uh inflows destroyed, uh. But you know youre looking at a similar scale to layman brothers, of course, not with the systemic effects uh, you know ust wasnt, as integrated into the real economy, partially integrated into the crypto economy. So not a systemic uh youre. Looking at a similar scale to the madoff ponzi right, that was, i think, a 65 billion paper wealth destroyed and, and these ideas were fundamentally unsound, fundamentally unsound economic ideas. All you had to do was have an appreciation for economic history, for central banking, for monetary economics and youd know that that model couldnt, possibly work, and yet it swelled to an inordinate size. Uh research desks in in the crypto industry were uncritical uh. A huge number of funds were involved in this uh. It wasnt just confined to retail wasnt, like some of these other ponzis, like plus token or big connect that were confined to retail.

These ideas were popular and very few in the crypto industry spoke out about them, uh, so its a black eye. You know its obviously destroying a ton of wealth thats affecting the other assets, but its also a massive massive black eye for the credibility of the crypto space and its a huge shame that uh that this transpired and that it got so big before it collapsed right. I appreciate those candid terms nick. I know that uh there werent a lot of loud skeptics. You were one of them, though. If you cared to listen very closely: um people like mike novogratz and digi and galaxy digital. They were actually the backers of this. Where did they go now? Where does the industry? How how much did this if this was a made off uh scaled scandal? How does the industry recover from this? How long does that take its going to be tough? I think this is going to induce stable coin regulation. I think congress is going to take a look to the extent congress can galvanize itself and do anything. I think financial regulators in this country are already aware of it. Uh treasurys, aware of it sec, was already looking into luna terra already were it was already on their radar now. What can they do about it? Thats gon na be more challenging. This is a korean project. Is offshore uh. You know the leadership is in korea or singapore, but i think what we can do as an industry is acknowledge.

Uh, you know the the fiat backed model, the fully reserved model that you see with usdc and the like that actually works very well uh. We dont need uh to try and undertake financial alchemy and uh, create an under collateralized, stable coin with volatile crypto collateral, uh or or you know, the the model that tara had where it was very recursive, and you know, backed by an equity token that was linked To the system it just didnt make sense. You know. I think we can acknowledge that these ideas have failed, algorithmic, unbacked or senior and share style model. Stable coins have failed since 2016. That was when new bits, the first one first failed, and then there was a string of subsequent failures. Weve never seen successes there, and so i think you know the the default model of the stable coin, where its convertible and fully preserved uh, fully redeemable on demand. Uh, you know the you know. Tether has a lot of issues but uh. It continues to work well, its regained its peg. The redemptions occurred yesterday, normally uh usdc, i i would say, is the gold standard for a stable coin. These work just great so lets stop trying to you, know, engage in this in this alchemy and uh. You know return to ideas that make sense and return to pro. You know products and protocols that work uh thats.