 as a presentation of TFNN. The Tom O'Brien Show is produced every business day. Tom takes your phone calls toll-free at 1-877-927-6648. Internationally at 727-873-7618. Hey, Robert, how you doing, man? Yes, good, thank you for taking my call. I wanted to let you know that I've been a subscriber for a couple of years, just different members of your team, and I really enjoy it. But really the reason I'm calling is to express my sincerest gratitude for you providing that information yesterday on the Small Business Scrantz. I'm a small business owner, a primary bed-break winner for my family, and if I can get that money, it's gonna really mean a lot to my family, so. That's awesome. Thank you for taking the time to do that. No, listen, man, we appreciate you growling a problem with us. Now, Tom O'Brien. Welcome, folks. This is Tom O'Brien of TFNN. We have five days a week. We go seven hours a day. We go 24 hours a day on the internet at TFNN.com. Always remember, folks, whatever you think about, you bring about whatever you focus on, grow so everyone's having a great day, safe day. It's making a great night, folks. Create the perfect relationship between you and your body. Treat your body with all love on a gratitude and respect. When you're making a goal to adore your body and accept yourself completely, you learn to have a perfect relationship with anyone else you are with. Macadamias, let's take a look at it out here. We have the Dow Industries trading up 441, Nasdaq up 312, S&Ps up 80, Gold Contract flat. 18.14 an ounce. You get silver up 6 cents, $21.62 an ounce. Light Sweet Crew down a buck 75, $112.40 a barrel. Notes and bonds. A 10-year note, down 27 ticks, trading 1.1826, a 30-year for full point plus nine ticks, at 1.3820 and King Dollar. King Dollar down 799 ticks, trading 103, 388. Euro is at 105, yen is at 129, the British pound is at 124 to one US dollar. Our phone number's 877-927-6648. What's it called, folks? One note's going on in your world. In the world of the S&Ps, let's take a look at them. What do you have? We're going higher. You get a contraction of volume, folks. More than like we're setting up an ABC structure on the way down. So, you get the queues up 812. You get 59 million shares, bottom line, this can, you know, get up to ice. Ice is laying out at 416 on the queues, and right now you're 408. We go into the NDX 100. We take a look at the NDX, same type of setup. What do you have with the NDX? The NDX right now is up 7.5 points, 306. That number there, up to ice, we'd get you one, no, 315. Right now you're at 306. Gold. Gold contract's going to need more volume. Bottom line, gave it up on price out here. You only have 130,000 contracts. Need a lot more contract volume than that. You hit 1834. Right now we're trading at 1814. We'll see where this baby closes out, but that's, we had rejected lower price. And had light of volume yesterday, and finished the ABC structure. So we'll see if this can get a bottom going. It should, because the bottom line is that we haven't said the dollar, is that the dollar basically gave it up on price. Real kicker with the dollar, of course, is that it's giving it up on price as a one day wonder, about a week and a half ago or two, and snap right back. So we'll see where they get any follow through. It came back inside the range, but we'll see if we get any follow through. Okay, we are going to go over, we've talked about, there we go. This article that I was talking about yesterday, I'm going to go through this whole article, because this, to me, this is just not only a great article, but for all us to really understand crypto, it says it all. You can make your own choices as we go through this. And the reason I'm going over it, evidently it was behind the firewall of Bloomberg, so a lot of folks couldn't get it. So this'll take, we'll do this segment in about 10 minutes on the next segment, but you'll see just how amazing this is. Okay, so first off, it says crypto hedge money, hedge fund, head predicted that terror $60 billion up implosion. The guy's name is Kevin Zoo, okay? It's, he basically runs a hedge fund, okay? So the beginning of it, hack, scams, Ponzi, rug pulls and crashes are common in crypto. They happen on this every day. The recent collapse of terror ecosystem in its UST stablecoin is different. Terrorist pushed was pitched as an important experiment in an attempt to create a stablecoin paying to the US dollar without relying on financial securities over collateral's crypto assets as reserves. Last week's Southern collapse of the terror project now puts this idea in doubt and it's loudest critic is claiming victory. In a dramatic reversal for the coins involved, at its peak in early April, the market value of all Luna, the tokens that back the terror stablecoin was a stunning 41 million plus, 41 million, according to CoinGecko. Placing it firmly in the top 10 cryptocurrencies until just a few days ago, there were almost 19 million worth of UST, 19 billion rather. Like many crypto projects where a niche and confined to a hardcore traders, terror went mainstream, okay, sorry. Unlike many crypto projects which are niche and confined to hardcore traders, terror went mainstream. It was backed and promoted by what parent company Terraform Labs triumphed as its all-star roster of investors, including Arrington Capital, Delphi Digital, Pantera Capital. It was also a sponsor of the Washington National Baseball Team and has a huge army of self-described lunatics which avidly promoted the project across social media. Galaxy Digital's chief executive officer, Michael Novigrantz, who invested millions in the endeavor, unveiled the Lunatak 2 back in January. Teva's outspoken critic, Don Dewwan, is one of the main characters on the crypto Twitter. Often spying with critics who warned the project would end badly. The most high profile of these critics was Kevin Zoo. Zoo is no cryptoskeptic, having been in the industry since 2011, working as an early exchange called Buttercoin before running trading at Kraken. In 2018, Zoo launched his crypto hedge funds, Galixos Capital, named after the French mathematician who died in a duel. In an interview with Lord Lott's broadcast, Zoo says he began to worry that Tara posed a schematic risk to the entire crypto space and that he started to tweet about the dangers as a public service to let everyone else know too. Indeed, Zoo has been strenuously warning about the risk of Tara Luna on Twitter since the beginning of this year, portraying himself as Rome, going head-to-head with Kahn's Catholic. Catholic. Last week, the historical analogy was born out. Tens of billions of dollars in value have been wiped out with little sign of recovery. A spokesman for Ducan declined to comment for this. To understand what wrong, it helps explain how Tara was supposed to work and why it's so unusual among the multiples of crypto investors that have sprung up in recent years. This will get a lot more interesting, I promise, folks. You really wanna get to understand this because as we go through this, you're gonna see that they talk about the aspect that you have to get in first and sell it to someone and they tell you that. Stay right there, folks, come right back. Booming inflation, we are purchasing powers eroded, there's no better place to protect your hard-earned money than in gold. Vista Gold's flagship asset is the Mount Todd Gold Project in the Northern Territory of Australia. This is Australia's largest undeveloped gold project. We are talking a world-class gold project in a tier one mining district. This is a large-scale, low-cost project with significant existing infrastructure in a politically safe and friendly mining jurisdiction. Vista Gold just completed the Mount Todd Feasibility Study, which resulted in a 7 million-ounce gold reserve in a 16-year mine life. All of this combined with the approvals of all major operational, as well as environmental permits. This distinguishes Mount Todd as an attractive, de-respotted, ready-development stage gold project. Vista Gold trades on the New York Stock Exchange under the symbol VGZ. Are you looking for a way to consistently add winning trades to your portfolio? Tom O'Brien is here to help. Tom O'Brien has been successfully trading markets for over 30 years. A frequent contributor to TD Ameritrade Network and CNBC, Tom O'Brien founded TFNN over 20 years ago to help educate investors just like you. Tom's Daily Market Newsletter, Market Insights, is published every morning when the market's open to give you the competitive informational edge you need to succeed. These newsletters are packed full of Tom's advanced technical analysis and are geared to deliver comprehensive strategies for a successful portfolio. Get Tom O'Brien's newsletter, Market Insights, today and try all of our products and newsletters 30 days risk-free with our money-back guarantee at TFNN.com. TFNN, educating investors. Everything in the universe is governed by the Fibonacci sequence. This mathematical principle is responsible for everything from the most aesthetically pleasing artwork to patterns in the stock market. To stay on top of stock patterns you can take advantage of, sign up for the Fibonacci 24-7 newsletter at TFNN.com. When you subscribe, you'll get a weekly report from veteran day trader Larry Pesavento on stocks you need to pay attention to and you can trust Larry's analysis. After all, he's got 45 years experience as a day trader. Larry will also provide daily charts, videos and data on the key markets that he's tracking. Expect notifications from Larry on market movement you need to act on at any time. First-time subscribers also get a 30-day money-back guarantee. If you're not satisfied, let us know and you'll get a full refund within 30 days of signing up. Subscribe to the Fibonacci 24-7 newsletter today. TFNN.com, educating investors. Free at 1-877-927-6648, internationally at 727-848. 737-618. Welcome back folks. Okay, so to understand what went wrong, it helps explain how tarot is supposed to work and why it's so unusual among the multiple of crypto inventories that have sprung up in recent years. The ultimate box in the volatile and fragmented world of cryptocurrencies, stable coins are a way to move money around with the confidence that you won't suddenly lose a large sum of it. To maintain a steady value, usually a peg that tries to stay as close to the US dollar as possible. Many of these coins are backed by securities like treasuries, cash reserves, are over-collateralized with some combination of crypto. But UST, that's Tera, tried to do something different. Instead of using assets to maintain this peg, it depended on a algorithm and an arbitrage mechanism designed to promise that one UST, that's Tera, would always resemble one worth of your LUNA. If LUNA is worth a dollar, then you would swap one UST for one LUNA token. If LUNA rose to $100, then one UST would entitle investors to 0.01 LUNA and so forth. For crypto proponents who distress fiat currencies, the ability to create a stable currency without links to the traditional financial system is an important goal, that's their goal for sure. Stable coins are a key feature and decentralized finance are DeFi, allowing investors to transact in cryptocurrencies and digital assets. They're used in a wide variety of lending, borrowing, trading. Now get this one, in yield farming programs. Keep that in mind, the yield farming. Despite this money pouring into the space and seemingly high returns on offer, it's still unclear where a lot of that yield comes from. Well, that's one of the keys here in this. In the odd lots interview last month, Sam Blankfield, the blankman fried, the CEO, this is unbelievable, and the co-founder of Exchange FXT described DeFi as basically a magic box. It's a magic box, all right folks, okay? People put their money, now listen to this, this is him talking. People put their money in the box incentivized by a ward of some token and then more money goes into the box. Over time, the box is worth a lot of money. And perhaps the box becomes a bank, accumulates in some other important projects, but it doesn't really matter. Here's the kicker, so long as you get in the box early and sell before everyone else does. According to Zoo, Luna was not just any box, but a particularly egregious ones which was designed to enrich insiders. Now here's where we get really interesting. No wonder why the guy from Galaxy put a Luna TAC2 on him. While the Luna Terra Arbor's kept the two assets steady in terms of the relationship with each other, it was the eye-popping yields of 20% on offer in the project anchor protocol that lured them into the ecosystem the first place. So if you had your Luna cone and you put it in the box, folks, you were making 20% on it. Now, no one knows where the 20% was coming from. We know it's a Ponzi scheme, but let me go on for you because they're telling you it's a Ponzi scheme. That all of them are Ponzi schemes, actually, not just this one. I would say that certain boxes are a little bit more honest in the sense that it's kind of like a chicken game. It's users competing with users and the earlier you are, the better you do. I know it sounds really bad. It is really bad, he said, but what I'm saying is that even worse than that, because it's really not just users competing against users. Here we go. It's more like users thinking they're competing against other users, but really all their funds are being siphoned off by the insiders and the investment team, okay? Because you'll see why, folks. This is crazy. So where did the promised 20% return come from? Technically speaking, Zhu said, it came from a private stash of Luna tokens which was held by the Terraform Labs. When the Terra ecosystem first got started, there were some funds that were set aside for the company itself and the main company is Terraform Labs and they have a huge stash of Luna which unlocks over a certain investing schedule. Of course they could have as many billions as they want. So what would do, so what would, so what they do in order to finance their operations and finance the Anchor Yield Fund, they would sell, check this out, large clips of this to willing investors at some kind of a discount that also had a one-year cliff or some kind of investing schedule, something like that. And then they would use that for the operations and they would also use it to basically keep topping up the Anchor protocol on their reserve, meaning that it's a gaff. They're just putting more in making like there's more. I mean, it's diluting everyone else. Okay, Zhu then also gave a similar explanation as to where the 20% return come from. What I always like to say is that most of the time, if you can't find where the yield is coming from, then effectively it's coming from the future bag holders. The entire crypto system is arguably driven with this phenomenon. Yield comes from the assumption that someone else will bring new money into the system, the new bag holder, enter the game and pay out yield to the existing ones. What made Tarish stand out was the huge yield, an offer in a tanker program, giving investors the impression of significant upside with potentially little risk. This is also what made Luna Grosso exponentially, extraordinarily in such a short period of time. Of course, this type of growth hacking can be fantastic, but it also can be a curse. In some aspects, Luna became a victim of its own success draining reserves at an incredibly fast pace by burgeoning community of tarot holders who were eager to grab those 20% returns. I think at the peak, they were burning about 7 million a day on the yield reserve, Zhu said. And originally I think the reserve's something like 50 million or 60 million or something like that. And then they had to top it off with 450 and then very quickly soon all that was depleted and they were thinking about how much to do on another top off. In theory, Tara could have loaded its offering yield and slowed down its cash, but then the risk investors, then that would have risked investors and banding the UST system. One way to think about Luna is that it's perpetual motion machine. Something doomed to fail as the energy needed to sustain it eventually dwindles to nothing. But another way to think of it is at a Rube-Goldman regime in which Zhu puts out someone's turning a hand crank and keeps the system going. Tara arguably had two hand crates to keep its mechanisms going. The first was the private stash of Luna's tokens, which would be liquidated to keep the UST holds happy. But then also this year, the Luna Foundation, technically a Singapore nonprofit designed to promote Luna's system, started building up a watchist of Bitcoin that could be deployed to intervene and stabilize the peg when needed. In doing so, they borrowed from the world of traditional finances, essentially building a buffer of big FX reserves in the same way the central bank of governments do in order to deploy when they need to defend their currencies. With such a move, while such a move might work in fee authorities, it's signaled to Zhu that there was a major problem with the Tara Luna model. First off, Bitcoins are leave volatile. For a stable coin pursuant stability, putting assets in a combustible cryptocurrency might provide very little ballast in times of trouble. The Bitcoin stockpile is also finite. Yes, you can spend more to bolster Tara, but eventually you run out unless you have some other way to secure the ongoing supply. Stay right there folks, come right back. 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This segment is brought to you by Think or Swim. For more information, just click the Think or Swim banner on the front page of tfnn.com. Welcome back, folks to Dow. Dow Industries up 436, Nasdaqs up 312, S&Ps up 80. I wanna finish that story, folks, but right now we're gonna bring on Mr. Basil Chapman on. We're gonna be talking markets. And of course, don't forget, Basil does an outstanding show here. Every trading day, 10 to 11 Eastern Standard Time, also has a great newsletter, The Opening Call. Now, it's very easy to get The Opening Call, folks. Come over to our website at tfnn, go into the newsletters, you hit that opening call. It's right on your left-hand side, and you hit Subscribe. You can get The Opening Call for one month for $149. You can get it for six months for $695, which is a savings of $199 at 22%, and you can get it for one year for $1195, which is a savings of $593 at 33%. Now, they all come with a 30-day money-back guarantee, folks. So you can come over, take your choice, you try it out, you know, 30 days later, if it doesn't work for you some reason, guess what, you get your money back. Let's get on, man, Mr. Basil Chapman. What's going on, Basil? Hi, Tom, what's going on is I think we're actually stepping into summer for the first time. I heard it's gonna be hot up there this weekend, I guess, huh? I hope so, yes. Yeah, it's a beautiful thing, man, totally. We deserve it, yeah. You definitely do, man. So let's take a look at this market, Basil. So last time we spoke last Tuesday, I was saying to you that I think I'm getting ready, and we've built up for subscribers to my opening call, we've built up a big cash position, one of the biggest cash positions we've had in a long time, and that probably start putting money to work very soon. Well, on the Thursday low, when the Dow went to $31,222 on the 12th, the candle that was formed, and I've discussed this with you, I told you that in my work, I like to draw trend lines and arches, but there was a particular two trend lines making a little mini channel that was coming down. Price had held that all the way through, but that's what I call the Chapman Wave inside track propellant zone. If it holds the support, it could be a nice turnaround area. So it went just below the close within it, and I thought this is perfect. So on the early pullback on Friday morning, we went long. So we went along the Dow, we have a core position going back to the low of 2020 but basically this is a new position, a shorter term position. And at the same time, I like very much, even though if I'd listened to the news, I would never have done it, but I did my analysis and I said, you know, the QQQ, the index 100 has done exactly the same thing. Here's this trend line coming down, the price went right inside, the MACD looked like the histogram was starting to improve in the daily chart. Stochastic was not nearly as bad as it was earlier in April. And I thought that there was a chance that this was a positive divergence that could produce some results, but it needed to do certain things before I was guaranteed anything so on. There again, we went long, we went long actually a little more aggressively in the QQQs. And so far it's working out well, but for this to be, and we also, we've got some very low price stocks. I like to have a mix for subscribers of maybe double or triple digit stocks, but I also like to put in single digits because if it's in the right sector and things are working out well, they can very nicely move at the same time. So in this particular instance, I just wanted to say that in the QQQ index 100 trading vehicle, there's been a nice move up today. This is leg B. The MACD hasn't yet crossed positive. That means the histogram is good, but I would prefer if it suddenly crossed positive, it'll be the first time since it crossed negative way back the 7th of April, when the price of the QQQs were at the 200-period moving average up in the 358, 360 area. So this is a big pullback that we've had. I don't think this is the low, but I think at this point, trading is an acceptable low that we could use as a trade. But to really get a confirmation, I need to see a 306.36 right now. The QQQ needs to trade. It needs to close a couple of times over the 14-period moving average, which is at this particular point is a 308.15. So it's got a bit of a way to go. And I would also like not this leg B to turn into a peak D in such a small move. I like this leg B. I like when leg B's are very strong. So it's almost the same thing for the Dow. The Dow right now is in leg A. I like the takeoff to be very strong. A or B needs to really get a good percentage move off the low. So this is a nice starter position in terms of a turnaround. The weekly chart says, yes, the Dow held in a much longer term inside track propellant zone. So this is nice, but the technicals need a lot of work and the QQQ went right through. So this is, all I'm doing now is trying to treat these as trades, but there are times where if you get it right, it gives you some comfort because as the market whipsaws, trying to get some traction to the upside, you've got good support. So I like the positions that we've got right now. I also prefer that if we can get turnaround areas either at the top or the bottom, very close to the actual turning point, it just gives you a nice cushion because as prices start to rally, if it's from the bottom up, it means that every time there's some kind of a whipsaw, in other words, if we make a peak and there's a pullback before you get to leg C, if you're in comfortably just off the lows, it means you've got a bit of a cushion there because the price shouldn't go back to your entry point. If it does, that's usually a big negative. So it's a good thing to get out. So I'll raise the stop as we move higher. And at the same time, looking at the different, again, I'd spoken to you for a long time now that we've got the DB agricultural food, this is the agricultural sector ETF. Yeah, the DBA, right. Yeah. The DBA, DBA Agricultural Fund. And it ran up, we ran in 1377 for a long time now. They pulled back from 2288 down to 2127. But you and I have been talking about for ages that when the Fed keeps talking about inflation, inflation, and both of us said, when the Fed suddenly realized that when the genie's out the box, it's really hard to put it back in. And I think we started starting to see that. I mean, look what happened to wheat. This is wheat is in this agricultural fund. Look at this, this is wheat breaking out. It had the spectacular move. Remember it went up to 3063 and a half on the 8th of March. I discussed this Roman candle. I gave a whole analysis of what happens in the Chapman River and a Roman candle. If it goes halfway into the WIC, look out, you can pull back sharply. What it plunged from 3063 down to around about 1,000. And I think it was just about 1,080 or maybe a little lower. Yes, about 1,010. And now so another move and it's back at 1,279. So this is part of that. This is the thing with the grains. It's very difficult to produce them. You have a certain time and if it doesn't get done in that particular time that could lead to shortages. So I think that the agricultural sector is saying that gotta be careful. This is something not to ignore. It's going to impact grocery products, just a lot of things. Yeah, no, there's no doubt, man. I mean, well, you get, I believe that like either three, one half of the wheat production, Ukraine is a monster wheat producer. It's huge. Well, it's not just great. I mean, all the grains, it's a lot of things. And I don't know, even if, let's just say they started to get production back again. Well, this is the summer. How are they going to get it to port? How are they going to ship it? Yeah, and what's happening in the US, the bottom line is that unfortunately folks, it's whacked out this year. Where the wheat is being planted, there's a drought. So they're not going to get anything. And then where the beans are being planted, there's too much water. So there's trouble in paradise out here. Folks, you can get Basil's Newsletter, but come over to our website at TFNN, hit those newsletters and get that opening call. Thanks, Basil. Thank you, Tom. Are you in the market for buying or selling real estate in the Bay Area, including the surrounding St. Petersburg, Tampa, and Clearwater markets? Tiger Real Estate LLC is a firm that has extensive experience in the Tampa Bay Area. Whether you're looking to sell your current property for maximum value, or you're in the market for a second home or investment property, Tiger Realty has the experience across all areas of real estate in the Tampa Bay Area to help buyers and sellers make the most informed decisions across all price levels. From the price you should be paying per square foot in certain up-and-coming areas to the type of cash flow investment properties are capable of creating, Tiger Real Estate can help you make the best decision when it comes to all areas of the market. 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Sign up for Dave's newsletter, the Technology Insider, and get an inside look at everything the technology sector has to offer. Try it risk-free today, with our 30-day money-back guarantee. TFNN, educating investors. Biotech is booming, but for how long? Whether you think the Biotech bull has room to run, or has run its course, trade L-A-B-U or L-A-B-D. Direction's daily S&P Biotech three times, bull and bear ETFs. Visit DirectionInvestments.com slash Biotech today. An investor should consider the investment objectives, risks, charges, and expenses of the Direction shares carefully before investing. The Perspectus and Summary Perspectus contain this and other information about Direction shares. To obtain a Perspectus or Summary Perspectus, please contact Direction shares at 866-4767-523. The Perspectus or Summary Perspectus should be read carefully before investing. An investment in the funds is subject to risk, including the possible loss of principal. The funds are designed to be utilized only by sophisticated investors, such as traders and active investors. Distributor, Four Side Fund Services, LLC. Hey, add to 1-877-927-6648. Internationally, add 727-873-7618. I'm O'Brien. Welcome back, folks. Dow's up 414, NASX up 301, S&P's up 66. Okay, we're going back to Terra and Luna and Bitcoin. Okay, first off, Bitcoin is highly volatile. I'm just repeating this last paragraph so we can get back on track here. For stable coins' pursuant stability, putting assets in a combustible cryptocurrency might provide very little ballast in times of trouble. The Bitcoin stockpile is also finny. Yes, you can spend to bolster Terra, but eventually you're gonna run out unless you have some kind of way to secure an ongoing supply. And you might end up playing an intense game of polka with the market. For zoo, there was an even bigger problem with Terra's Bitcoins. The whole project is supposed to be self-writing, with an advanced logarithm dedicated to keeping Luna and Terra on an even keel. By buying Bitcoin, Terra was implicitly suggesting that it hadn't built a machine that could run on its own. That statement right there is a big one, folks. It's destroying their narrative because, like they basically said that, oh, we finally constructed a perpetual motion machine. Behold, everyone, we finally did it, you know, and it's working and it's amazing. Oh, but actually, you know, just in case it doesn't work, let's get some insurance. While Zoo had identified the vulnerabilities in the Terra Luna for a while, he hesitated to bet against it. As the adage goes, markets can stay irrational for longer than you can stay solvent. And Zoo didn't see that changing anytime soon. Last summer, Luna was trading around $5. By April, it was closer to $120 and the machine was going. Arguably, Luna was benefiting from the overall bear market and crypto that started last November. Now watch why it was benefited, folks. If everything's going down and you want to be safe, but stay in crypto, you might pack your money in stablecoins, which the market did. Stay in the ecosystem, but try to avoid the overall volatility. And since Terra was a high yielding stablecoin and Luna was closely linked to Terra for a few months, Luna almost acted as a negative beta asset that could be used to hedge the overall market. That's the crypto market. A dynamic which no doubt bolstered the confidence of many lunatics. All of this meant that shodding Luna was extremely risky. Even if you understood that ultimately, the ecosystem couldn't be sustained without continuous inflows of money, Ponzi scheme, for sure. In fact, Zoo said as much publicly in February that it wasn't yet time to bet against the Rube Goldberg. But in May, as crypto markets, here we go, so this is where it's going to get really cool. But in May, as crypto markets began to fall and assets which had seen the evaluation soar in recent years tumble back to earth, Zoo is watching. Also in his sights was a drama unfolding on decentralized platform called Curve. An automated market maker similar to Uniswap, Curve comes with a charming eight-bit Nintendo and is designed specifically to swap stable coins. Terra traded on Curve against a group of other stable coins, USDC, Tether, and Dai, DAI, which was called Free Pool. As Zoo puts it, Terra was acting as a bit of a side car arbitrarily attached to this group of stable coins. But there was a plan underway to create a new basket called Four Pool, which would include USDC, USD, Tether, and another stable coin called FRAX. The goal was to kick out Dai, DAI, a coin for which DuWon effectively saw as a rival. Around May 7th, someone from multiple parties appeared to make a huge sale of Terra, swapping it for USDC. Terra, no, no, okay, what's it? Around May 7th, someone on multiple parties appeared to make a huge sale of USD, swapping it for USDC, Tether, and Dai. While Curve is optimized to trade stable coins on large sizes, the selling was so big that USD liquidity basically vanished and the first real deviation from the peg emerged. Other assets were drained from these pools and that basically caused a bit of panic. Other people pulled money out of Anchor and Anchor is where Tether is, folks. People try to find ways to get rid of their Terra. Luna started tanking. The entire markets were already tanking. It was kind of like an alignment of the stars. The equity markets were tanking. The cryptos were correlated with the equity markets these days so everything was dropping and on top of that the migration was happening so it was a symphony of perfect sequences of events. The trades have since become a linchpin around the variety of conspiracy theories that are now swirling. Who exactly sold the UST at such large chunks? Was it intentionally done at a time when Luna was preparing for a migration to Fall Pool and might therefore be a liquid and vulnerable? Was this a George Soros breaking the pound trade or was it just panicking market and a bunch of money attempting to exit a stable coin? That was not by many to be particularly risky. Regardless of who might have made the trades and why, this is the moment when it all start unraveling and the event that blockchain archeologist will probably be exploring for a long time. The siege of Cathage had begun. Looking back, it's rather remarkable how quickly it all unwound. A few weeks ago, there were more than 60 billion, 60 billion in market cap and Luna and Terra. Then just over a week ago, it started to crack. Now it's number swiftly approaching zero and Zoo's telling once the machine started malfunctioning, it was difficult to stop. This thing is a purely reflexable asset. He said, once the mechanism broke down, there were no curbs, no natural circuit break, there's no emergency lending from the Federal Reserve, no bailout from private investors. There were suggestions at one point last week that external help might be on the way. There was no natural cash flow that wouldn't tie a crypto warm buffer to step in and buy the things for cheap. But after the fast down, which spiral came to slow death? Throughout all the drama, UST-Luna swapping mechanisms were still operating. UST sellers were still theoretically entitled to a dollar worth of Luna. Watch this, this is crazy. But that was meant, but what that meant was that as Luna was crashing, the system had to create more and more tokens to meet the UST redemption demands. If Luna is worth a dollar, then the UST holder is entitled to one token. But if Luna is worth 10 cents, then the UST holder is entitled to 10 tokens. As Luna plunged, more and more Luna was created. That caused the price to plunge even more as holders were massively diluted. That in turn meant that the next round of terror redeemers required even more Luna. Making the dramatic downward spiral. It effectively meant that cryptocurrency that had been often pitched as a hedge against inflation was effectively being slowly inflated away. This is actually worse than hyperinflation, said Zoo. It's hyperinflation of hyperinflation. By the morning of May 13th, one Luna was down to 0.0001834. And the total supply of the coin was 6.5 trillion. Despite the spectacular implosion of terror, it seems like you that the crypto community will not give up its pursuit of a coin that can maintain a stable value. Last month, Sam Kazemir, founder of the stablecoin Frax wrote to Bloomberg columnist Matt Levine to explain how his coin would evolve. Our own structure won, not Ponzi, 100% back normal bank, except slowly unbacking, then finally Ponzi, like the Fed. Okay, so in other words, the dream is that if you pedal hard enough, this is really cool here, if you pedal hard enough in the beginning by backing, by creating a back stablecoin, then over time you remove the backing because everyone will just accept the coin is worth a dollar. Even when the mechanism to enforce the peg goes away, for crypto inheritance, it's not too dissimilar how they view the history of the dollar. The green back built the power by being backed by gold, they say, but eventually departed the standard once it cemented its status. Of course, the dollar doesn't need to be pegged to the dollar, it simply is the dollar. What's more, there are all kinds of mechanisms in place that bolster the currency's value, including taxes which enforce the need to hold the dollar in the first place. But again, one of the core ideas of crypto is that everyone just believes hard enough, if everyone believes hard enough, then you can create something of value. And arguably that idea has proven itself out with Bitcoin, which is not backed by anything except the beliefs of its various holders. Still, the Tara episode is already, is already a large blackout of crypto and one that might not be forgiven for a long time. Many retail investors have been devastated with stories of life savings, loss, suicide attempts. Big names in the space left answer for what they, they would get behind the disaster. Even crypto investors without direct Tara exposure are sitting on big losses because of this. Still, zone wands that monetary losses and reputational damage could have been much worse. Better that this happened now than later. You know, if Tara was 100 billion and eventually there was 95 billion of bad debt, or 90 billion of bad debt, I mean, it would be worth more devastation, even more people would lose. Cactus is eventually rebuilt and it seems that someone's gonna try it again with to build that magic coin. That would be a coin that's decentralized, not relevant on assets to back it and still able to maintain its peg, like a top that can spin forever after getting its initial twist. This is what's so crazy about this folks, okay? So check this out. You gotta go back to the deal that what you have here is this. You have the aspect that the people that make the coins, right? This is when you read this in the beginning, the people that make the coins, this is how this goes. They can have as many coins as they want. They put the coins out into the marketplace. Because they agree to people, what ends up happening? They say, okay, I wanna get into this coin for a penny, two pennies. This is gonna go to $3. I'm gonna get out and I'm gonna sell it to someone else. I'm not paid as some of the tigers are saying. The key that I get out of this and that we need to read this through is that the inventors, the software folks that know what the heck is going on, know, and no wonder why Norwood Novigrant's got it at the top too. He was an initial investor inside Terra Labs, okay? And Terra Labs has as many as they wanted. So when this was going on, they could sell into it. Now, this gets even better because Galaxy, so watch this. Yeah, I gotta get this, come on. Okay, I can't pull that up quick enough, but check this out. So Galaxy, which is a public company in Canada, not in the United States. You probably couldn't get away with it in the United States. And this is Novigrant's. When you, I went through his, the last two filings, right, he made a billion dollars, that company, not last quarter, last quarter was like 300 million. The quarter before was a billion dollars by selling into the marketplace, okay? So they're telling you that it's a Ponzi scheme and they're also telling you, well, yeah, it's a Ponzi scheme, but that's what the Fed is too. Well, the big difference folks, no doubt, is that if you wanna be involved in a Ponzi scheme, God bless you, okay? Because I'd like to just get that wrapped around your head, tell your friends to read it because there's so many people that are involved in this and there's a lot. All of us know plenty of people that are involved in it. I get asked all the time, man. And, you know, on some of these younger kids, man, yeah, there's only $300, $500, $1,000, but guess what? When you were a kid, that's all you had. The amount of money that these people have taken from people is freaking disgusting, man. And they know it's a Ponzi scheme. I mean, it blows my mind that it took this long for someone to write a decent article to really figure it out. Dow, Dow up 396, Nasdaq up 305, S&P's up by 26, always remember folks, the bank and Claya had out the book and ran you over and thank God, there's always another trade. Health tap is in prosperity, have a great night, have a safe night. Come back and visit Tommy tomorrow morning, kick us off nine o'clock in the morning, have a great one, folks, have a safe one. Yeah, hell yeah, folks.