 Great, welcome to the last set news everybody. My name is Rob and there's a ton of stuff to go over and we're gonna talk about a Lot of different topics first We're gonna talk about what's going on with the market itself So there's a little bit of pullback almost 5% or so we're gonna talk about why the markets are all down Then we're gonna get into the meat and potatoes of what we really want to talk about which is Mike Novogratz Talking about what happened with Luna. He finally puts out What what I would call a fairly respectful? Look at exactly what happened and I can't change what happened with Luna, but we can definitely Garner some pretty great insights as to what we should be doing moving forward and then also We'll take a look at everything that's going on and not just the markets But me personally as I was actually hacked for my emails and what you're not supposed to do And then finally we'll just quickly talk about the Swiss Borg Meetup that we had as far as a panel. So first of all Let's take a look at what is going on with the market and if you're here for the live stream Thanks, I appreciate it What we try to do is just do this quickly and take a look what we have a coin That is down and everything is actually down Across the board and then real quick. Let me just check my my audio to make sure I'm good here. Let's see no coin email hack and Oh, yeah Why that happened? Okay, so anyhow, so this is why we're actually down We're just down across the board, right negative 4% almost 5% and we take a look at traditional markets same thing I actually remember freshest. Maybe I'm incorrect. Yeah. No again NASDAQ Not looking too great And that is what is going on. I will tell you this I believe that the crypto market is correlated. I think we can all All say, yeah, it's pretty much correlated. I will tell you this though. What is not correlated is that little banner Underneath that says masterworks that is not correlated And you can see that they're going on a tear as they actually sold a billion dollars worth this year of artwork So if you're looking into investing in a fractionalized shares like I've Gotten to I got a bank see in a basket. Yeah, there's a link in the description And I tell you all about it. You don't have to pick the art and just take a look at it And that's what's happening. But to take a look at the correlation that is which is crypto and The traditional stock market This is what's going on. So if we take a look at why everything is down across the board First of all, it's because we're correlated and then really what it comes down to is earnings. Let me Share with you this tab Ba ba ba so you can actually hear what these people say And this is what's going on and like I've talked about in the past I think we're in for some more pain because I don't see too much of a reversal Unless the fed comes up and says no, we're not going to punch down and we're not and we're gonna bring it in for a soft lining I just don't really see that especially with The problems that are happening with supply chainside. So this is one of the reasons to just take a listen to what exactly is going on Let me play this Let me mute myself so you don't hear me Target results are out and they are well below expectations companies coming with the earnings per share of two dollars and 16 cents The street was looking for three dollars and seven cents They do talk about comps being up 3.3 percent at stores. They were up 3.4 percent digital up 3.2 percent same day services up 8 percent um And 95 percent of the first quarter sales fulfilled by stores But the headline number here is that this is a much lower because the expenses number because of expenses coming in with This operating margins of 5.3 percent the company says that is well below their expectations Driven by gross margin pressures from actions to reduce excess inventory and higher freight and transportation costs So this tells you that what we heard from walmart yesterday is a very similar story sales numbers being up It looks like the traffic numbers are good looks like people are there and shopping and buying But this is an inflationary environment and a lot of those costs may be beyond Target's control on some of these issues. It's kind of weird. It didn't It didn't uh Reflect this yesterday in the no yesterday look the the the feeling yesterday was that maybe That this was just a situation where it's walmart where walmart had been doing this and sorry I'm just looking through some of the numbers on this now um This kind of adds up if you look add add this to what we saw from amazon 2 This is a situation where costs were very hefty. This is supply chain costs transportation logistics And we thought the amazon's the walmart's and the targets of the world all had very good control on some of these things It looks like this is just a situation where all of these companies got caught up in this andrew What do you but oh, I was just gonna say this goes to the point I think we were making at the end of the program yesterday when we were talking to jim And I know there was a lot of focus that was somehow walmart specific walmart specific I think there was a bit of a head fake because of how successful what was happening at at home depot But I think that there's now we're seeing the bifurcation of that market, which is to say You know some of the joe we were talking about people redoing their homes Some some of the wealthiest families in america are still redoing their homes when it comes to action Yeah, I mean that's pretty much it So all you gotta do is take a look at traditional market and go well The reason why things are down is because the earnings report are down and the reason why the earnings reports are down Especially for these things is because the big box retailers or a lot of different industries They can't control cost because it's a supply chain issue and I I mean we've talked with us for quite some time I just don't see how these things can actually rectify themselves Within a quarter within the second quarter third quarter fourth quarter. I think we're here for a while I think inflation is here for a while. That's the reason why you see These are down and we are down also with crypto and it's the same thing I talked about yesterday They're gonna treat us like the step Redhead stepchild and just say hey, look, we're just here for the growth. You can't give us growth We're gonna drop you all these institutions that we wanted to come until we get something else and we're gonna hoard ourselves in the cash That's just how I see things. Anyhow, let me know what you think about it on the comment section But that's one of the primary reasons why I think things are down today So that leaves us To our next top story, which is the real thing which is this Mike Novogratz talks about what happened with Luna. He I know everybody's sick of hearing about Luna. I don't blame you I'm sick of even reading about it and talking about it. It sucks because this, you know, shouldn't happen But in hindsight, you know, we should have really taken our lessons. I lost some money. That's uh, that's that's the truth I was delicose averaging and actively Thankfully, it was a very small amount because I've learned less in the past because all my other screw ups but When we take a look at this Let's just put things in context Shall we because I don't want to just, you know, talk about how, you know, it's good that Mike did this Let's put this in and really put this in I had a tweet yesterday and I it's probably one of my most active tweets for people who I respond and I said just do me a favor And comment below, uh, your worst Crypto crypto investment and how much you lost so even realize that it's not it's normal to not be perfect Nobody's perfect. We're gonna screw up. We're gonna make these mistakes. We're gonna foam a wind even I do this stuff I've been here for quite some time and It's the majority of this is luna Luna Oh, of course, there's some bitcoin cash up there Luna and how much people lost I saw someone who was saving for their house. That's gone I saw many of people who had said that they put in their life savings. That's gone I've got people who are talking about like 250 000 350 000 dollars worth. Look at beardy student loan coin 20 000 That's just student loan coin And there's some other ones in here, which I think we're pretty interesting But it's it's good to focus in on we all everybody talks about how great crypto is and it is it's a great It's an asymmetrical bet, but no one takes the time Well, not nobody I mean I'm here Uh to talk about like look it's super risky. You can lose everything and here's an example There's 400 examples in just this tweet alone So let's call a spade and spade and put it in context people lost a lot of money and that is not What we are here for basic principles and it's only when we go back to these basic principles Because of the screw-ups and the problems that are in this this market and it's a good reminder It's a great reminder. So before we get into that, let's take a look at exactly what Mike talked about this was just sent out about about an hour ago or so And I was surprised that you know, he put it out in this way I thought he would just tweet it out and go, ah, you know, not a big But he put out this great It was a letter to his to his shareholders and I'm not going to read the whole thing to you I linked it in the description. You can check it out. But here's the main points I think these are the things that we really should be focusing on So it's two shareholders What's important to know is that cryptos open source information About most protocols is transparent and auditable and that's true. It's great It's great until it isn't at some points And he did say our principal investments team invested in luna and q4 of 2020 using balance sheet capital What i'm going to read to you next Is why I think this is so important because everybody talks about doing your own research doing research doing research I can guarantee Mike nova grants and galaxy digital have a Massive team that look into all these projects. I can guarantee it because they're not going to allocate billions of dollars Or how much they put into it without somebody going and going or somebody taking a real hard look and going Let's break this down You know five guys over here do this five other seven other people do this and really taking a hard look So when we talk about doing our research I guarantee these guys did it and these guys even missed it So don't feel bad if you're like well, I just didn't do enough research It is what it is So they said our team's initial thesis for investing luna was centered around the expansion of blockchain native payment systems At the time we understand that the chi app which was built on terra had more than 1.8 million users And was a top five finance app in south korea that we considered had significant growth potential And that's exactly what we talk about here I always talk about When we do these deep dives, is it going to make the cut the cutt which is How big is the community? How strong is the community? What is the utility? Is it do something actually different? What is the team? How strong is the team? What have they done before to see what they've done in the future? And of course take a look at the tokenomics. Am I going to get dumped on? It's the same thing that nova grants does is just that they do it with like, you know 2030 Group members and they really you know take that deep dive So then to continue on with this message He says when we make investments in ecosystems we look for a Driven founding team with a unique unique idea and follow the users of the project again Community utility team tokenomics. So what the hell happened? Well, he says global macro brack drop which we can see I mean, we just took take a look at the stocks is down For quite some time. There is a not quantitative easing the quantitative tightening. There's supply chain issues There's issues with inflation. There's issues with the fed reserve So yeah, things these things happen and it puts stress on Terra on top of other things He states, uh, let's just move down UST's growth had exploded from the 18% yield offered in the anchor protocol, which eventually overwhelmed Other users uses of the Terra blockchain the downward pressure on reserve assets coupled with UST withdrawals triggered a stress scenario A kin to run the bank. That's exactly what it was. It was a run of the bank and this I got to give Mike some I gotta give him I gotta tip my hat to him My tattoo Will be a constant reminder that venture investing requires humility before we all Pile on to Mike and what an idiot he is For the tattoo and the things that that he has done it reminds me of this because and this is actually What you are doing right now? I can guarantee if you're here investing into crypto Your family has looked at you like you were an idiot And especially with the 600 to 700 billion dollar loss or you know pullback They your friends have probably said, why do you invest in that invest into this because it's safer and do this and we all know Or I can't give you investment advice for best opinion We know that there is a an asymmetrical upside the question is not If it is really when and that's really the bigger question. So when we think about these things I always think about this. I always take a look at some history Have you ever seen this? Roosevelt's the man in the arena. This is you and this is Mike and this is all of us So just remember this when people are beating you down It's not the critic who counts Not the man who points out how the strong man stumbles or whether do or deeds could have done better The credit belongs to the man or woman who is actually in the arena whose face is marred by dust and sweat and blood Who strives valiantly who airs who come short again and again because there's no effort without air and shortcomings But who does actually thrive the deeds who knows great? Enthusiasm's great devotions who spends himself on a worthy cause who at the best knows in the end the triumph of high achievement And who at the worst if he fails which we've all failed At least fails while they're like daring greatly. So that His place shall never be with those cold and timid souls who neither know victory nor defeat Speaking from experience I've started up many a business that have failed magnificently And just an entrepreneur and I screw up, but I don't have to be I don't have to have a thousand successes I just have to be successful once And I just have to ride that out. It's not how much you make it's how much you keep And as time goes on I think We'll all realize a little bit more of that. So to get back to what he says here and just to finish this up Pa pa pa pa Oh, yeah The flash crash of luna also reinforces a few core tenants of investing And I think this is something that this is why I want to bring this up Because people always forget these things when there's a massive bull run. They invest in stupid things They go into, you know, crazy meme coins with something that's you know, crazy apy. It's okay We've all been there But I want you to come back to what this says and mike nails it here Keep a diversified portfolio. I hate when people quote to me warm buffet where warm buffett said Diversification is for people who don't know what they're doing There's a there's a litany of information behind that But it goes to it goes to stand keep a diversified portfolio Take profits along the way. I am sick and tired of hearing about diamond hands. I've heard that since 2017 It's the dumbest thing I've ever heard So let's just all make a pact At some point nobody nobody ever went broke taking profits So as these things turn around so you don't feel this crunch takes a profits along the way Have a risk management framework and understand that all investments happen in a macro framework So we're not in a bubble The macro really really does rule the roost And then to finish it up Actually, there was a piece that didn't come through. Oh I want to say this and this is the great thing. What does this all mean for crypto? Mike says it great crypto is not going away The amount of human capital moving into space isn't slowing down The focus on building decentralized infrastructure that allows valiant ownership to flow as freely As information on the internet isn't slowing down the gdp of the metaverse is heading one way up Community is resilient has a shared belief in a new way of doing things and the assurance that this is very very early earnings And then lastly importantly galaxy and i are wholly focused on continuing to support the crypto ecosystem And he could have just said hey i've time to bail we lost way too much money and we're out of here, but Says it the exact opposite because the need for innovation that democratizes access to ownership and enhances trust and transparency is greater than ever Crypto community the galaxy's mission isn't changing. I firmly believe now more than ever Crypto revolution is here to stay That's what he said and I have to tip my hat to mike for coming out and saying Exactly what he said and especially with the whole thing with the tattoo Going this is a constant reminder of the things and all the mistakes that we made along the way that we won't do again So let me know which thing about that in the comment section and let's move on And finish up for our last piece Ah, I got hacked I laugh at this because Here's what happened. So there I was now so The thing is and we're always talking about safety here And I took my own advice and I did two factor authentication for all of my exchanges that i'm on And of course, I keep a good amount on my on my ledger. I don't keep everything on Centralized exchanges. I just don't I just don't trust them that much But uh on a couple of my email accounts that I have multiple I didn't do two factor authentication. One of those was my old yahoo account So the hackers got in they changed my password They changed the phone number that was associated with that Then they were able to change passwords onto coinbase for however they did that and that's and actually also on uh on my uh Hosting platform not for dante just crypto on another another website for my one of my other businesses and uh And that's where it stopped and the reason why it stopped is because I had two factor authentication for all the exchanges So on coinbase, they can only get so far they could change the password which Whatever but they can't get forward after that because I had two f.a And then also for the things that they changed on the emails they changed a lot of stuff And I don't know how they got into it, but it's just data leaks and things like that so as a reminder If I didn't do two factor authentication They would have drained my entire account. Okay, so if you don't have two f.a on it It can happen to me I guarantee it can happen to you So the only thing that I got to do now is just change some passwords Which I actually already did and I don't really have that issue now And now I put two factor authentication on even on my stupid email accounts that I want to deal with this Since it's the big headache so do two factor authentication And of course also take a look at hash is always talking about ube key ube key. I think that's what it is follow hasho she he'll he'll tell you how to do it and uh, that's uh, just what it is here so Potentially disastrous situation avoidance. I'm very happy and then lastly Just so you know, this is going to be out in about five minutes so When I went and spoke over at a guys event a coin bureau I also spoke at on the day before on Swiss board panel and that's uh me with my enormous head And I got to say thank you to the the artist for not i'm like I have a big head But like he didn't expand on that head and it didn't look like a candy apple on a stick. So I got to say thanks so that's me and a bunch of other youtube it's martini guy maren and crusty dusty There's augs and the guys are cruise late. So like uh, that's going to be live Uh, and you're just going to hear me be the ultimate bear of all time And because that's that's what I came down there for I was like This is my european tour to tell people what's up and it didn't go. I wasn't very popular at that event I must admit But maybe it actually served as a warning and hopefully somebody heeded that so I linked that video in the description So come over there I'll be answering questions on that front and that is it for today and also I want to talk to you We're going to do a quick q&a about five minutes or so But I just want to say we're going to change things up on this channel I'm only going to do q&a in the live part and then once this is done We're going to put in the timestamps and we're going to delete The q&a because I want to sit around and talk to you guys For the question that you have for as long as I want But if I stay here like an extra hour Uh, it doesn't look good for the recording because people are like damn that was an hour and 20 minute video I'm not going to watch all that so I'm going to cut out the q and of the q&a And uh, it'll only be available if you come here for the live stream