 Great. Welcome to the last set news. My name is Rob and today we've got a lot of things to go over so just the thumbnail and title suggests There was an interesting story that came about which talks about what polygon is doing as far as ZK rollups Which are going to roll out pretty soon, which could make Ethereum potentially unstoppable and that's for scaling and also for those pesky fees So we'll take a look at exactly what's going on Also before we do all that we'll take a look at what I call two sides of the same story as I try to give you both of those on this channel So you don't get filled too much with hope him or get downtrodden by all the negativity And then also we'll take a look at clown news, which will feature me which there was a mistake yesterday for the else The Celsius chart that we talked about so we'll take a look at that Also, we'll take a look at the ridiculous fees that are being paid out by Celsius to their employees as I go through chapter 11 And also there's going to be a Twitter spaces with Simon Dixon because chapter 11 bankruptcy has gone through For Celsius he's gonna talk about potentially what his plan is and lastly We'll just talk about how there's going to be an El Paso meetup So if you're an El Paso tonight come on out and meet me. That'll be from 4 to 6 p.m. I'll tell you exactly where it is. So we'll go over all those things but first Let's take a look at the market and actually before we take a look at even the market What I want to show you is two sides of the same story and you can kind of tell what's going on In the media these days, especially with the different stories that are coming out There's a lot of negativity and I will admit I am not the beacon of light of positivity that you that you may have come to expect Because i'm a realist. I know if there's a lot of A lot of things going on in the in the macro environment that is not causing Our market to go up. However, things are looking pretty good And that's positive But I need to tell you that there's always two sides of the same stories this came across the desk And it talks about The cities where rents have risen the most and it talks about how the average rent for a one bedroom apartment in Austin, Texas As more than doubled year over year and it gives a couple of different graphs and charts And it's very interesting. It's very nice to see But if you just read this article it would kind of give you an impression That things are are quite bad and not doing, you know, too great So that of course Is just these sides of the story and if we scroll down here. Whoops scroll down here It'll show us that yeah as far as like the macro Events that are going on House sales are actually going down foreclosures are going up Also interest rates are are increasing as far as for mortgage rates We all know these things and of course, let me take a look at this We're like, man, the sky is falling. Look at that Austin, Texas First of all, I found this crazy that the rent for one bedroom is over $3,000 in Austin, Texas That's a that's the doubled. That's 108 percent increase in jersey sitting in jersey It's 4,400 10% Arizona not too bad 1700 New York, New York fit almost $6,000 for the average rent for a one bedroom apartment That's insane And then it goes salt lake city and just here's the increases and then it goes over some different graphs But I was like, well, isn't there if it's all if it's all going up. Is that the whole entire country? Well, no I really so we they even referenced that they go look this is from Rent.com I took a look real quick. There's the rent report July 2022 Goes over some stuff. Well, that's nice Uh, and then it says here one bedroom city average rent price trends And this is what it was talking about beforehand as far as the increases But on the flip side of that same story is there's some places where it goes down too McKinney, Texas is down 50% St. Louis, Missouri. I used to live around there st. Louis, anaheim Really anaheim california is down Houston, Texas is down. It's been the great city of texas kind of crazy Las vegas is down 12 percent. I was lived there for a couple of years too So when you take a look at these stories take it with a grain of salt and try to find both sides of those same stories So speaking of all these things. How's the market doing? It's doing great. However What goes up must come down and be very cautious and I know It's uh, it's annoying to hear these things, you know, rob What are you gonna tell us everything to go and go to the moon? Well, that's gonna be in a couple years. I think so just calm down And uh, I think that these are the good days. Look bitcoin's up 22. I'm not saying that's bad. I'm saying that's awesome That's great. That's fantastic. That theorems up almost 50 for the week down a little bit in the last 24 hours But hey, I mean 50 that's pretty darn good and everything's up for the week, of course last 24 hours A little bit, uh, a little reduction something to take a look at also even polygon the thing that we're going to talk about today Is down 7% in 24 hours, but again 60 percent for the week and um That's what it is. I know yesterday people were pretty exuberant Hopefully nobody foamed in like crazy because that's crypto and that's the market And it makes me think about this well if our market's doing, you know Sideways a little bit or a little bit of increase. How is the regular market doing? Well It started off gangbusters But then I think people get a little bit spook like is this a real deal. Is this a bear rally is just a bull trap What is this? So you can see right here everything started off pretty good Went up and now here we are again s and p 500 nasdaq same type of thing, although Just about a little bit ago about 45 minutes though a little bit of an increase. So that is fantastic Also, let's take a look at some on-chain things This is oh, of course it signed me out because that's what it always does I gotta talk to those guys. Don't worry. I'm not giving anybody my uh password. It doesn't show up. It's hidden So here's the dashboard for crypto quant my inner outflow. Hey, look at that I didn't notice that actually Let me see this Let me blow this up our miners selling Let's go for the last month. Wow. They are They are selling. I just noticed this, huh? This was on 14th july 1 2 3 4 5 Ah six days ago That's what it looks like for but Yeah, that is interesting There was a big sell-off As the bitcoin price man, the guy should have waited a little bit I think they would have done a lot better But again, nobody can nobody can time the tops and the bottoms just isn't wow That is crazy 14th july there was a huge sell-off And now here we are. Huh, it's weird again. They should have waited a little bit So that's what's going on the miners selling interesting Which could be a latent indicator. I mean, that's why things are going down exchange reserves Same thing same thing take it by volume. Yeah, yeah, great. Here's the thing I want to talk about two things first of all leverage ratio and The market value to the realized value ratio and on june 13th anything above above Let me see. What was it numbers anything above 3.7? Is uh, usually an indicator of a pretty big blow off top which we didn't see until February march 2021 somewhere around here mid april may But lately it's been below 1.0, which is usually indicative of a of a bottom ish I can never time the bottom. Nobody really can do that consistently unless there's somebody with a crystal ball But uh since june 13th, we've been in pretty cheap territory again Like I talk about you have to ask yourself. Is this cheap bitcoin or is this inexpensive bitcoin? I think over the next five to ten years. We might think that 20 000 was pretty darn cheap and we just went above That 1.0 mark the last one was at Uh 1.06 of course, that's because of a rally if it falls down again same thing Probably be a little bit more inexpensive, but this one that Makes me gives me pause Which is estimated leverage ratio And anything above 2.0 is considered extremely high or 0.2. Excuse me We've been doing that since gosh December and just this purple line just keeps going up until we fell like crazy because people got liquidated and wrecked And then here we are again, and we're at man. That's crazy high 0.32 Whereas before the the highest of all time ever was 0.33. First of all, I always get questions about this So let me just say what this is The leverage ratio is the open interest divided by the coins reserve Which shows how much leverage is used by users on average increase in values indicates more investors are taking high leverage risk in the derivative trade in the derivatives, so We could have stuff like uh options and swaps and futures longs and shorts It takes an account everything for derivative trades. That's what it's saying And then if we also take a look over here The definition is estimate leverage ratio defines the ratio of open interest divided by the reserve of an exchange ELR indicates how much leverage is used ELR for a derivative exchange tells how much leverage is used by users on average This information measures trader sentiment whether they take a high risk or a low risk So when I take a look at this Whoops, I take a look at anything over here People are still taking some pretty darn high risks And the next question I have is well, how many different Exchanges do they look at over a crypto quant they look at these Well, they just do the all exchange But they look at binance bit for next bit next buy a bit dairy bit ftx get i o who will be global cracking and okx Is that every single one of them? No, but it's enough to give you a pretty good idea Of how much open interest and leverage play there is so it gives me concern That there's this much leverage still going on and uh, maybe just a bunch of gamblers anyhow That's what we have and then to finish this all up Uh, gotta use ben's website into the cryptoverse Even though we're above that The mvrv of 1.0 you have to remember that if we take a look at log of rhythmic regression We can see that we are still Undervalued fair value should be 1.78 trillion for our market cap 1.78 and we're only at 1.1 Which is this blue mark right down here so you can see We're still a little bit undervalued. Do we have a way to go to go up sure could it go up Tomorrow sure why not could it go down to 14,000 sure why not it's crypto nobody knows So that's it a nutshell for the crypto market and what's going on now. Let's take a look at the big story polygon and this one It came across There was a big announcement four days ago It was like one of those just in sun ones where it's like there's an announcement to an announcement But uh, it really was a pretty good one. This is from uh, ryan white He's a ceo polygon studios and he says we already know polygon is a powerhouse leads far and away in partnerships With the zk evm launch we now can scale with security be carbon neutral And handle the transactions per second or tps the future the future internet will be built on polygon with this feature It's that simple and first of all is like, I don't even know what that is. I have no idea what zk evm. So first of all zk evm is pretty much it's a roll-up And the first the next question by asking some of you don't know I just want to make sure we're all on the same page. What's the zk roll up Well zk roll-ups or zero knowledge roll-ups Similar to optimistic roll-ups doesn't matter They combine a large number of layer two transactions that were executed off-chain And submit them as one transaction onto ethereum So just like bitcoin has a letting network ethereum has polygon layer two solutions So they can do all these different transactions up above not deal with the on-chain type of stuff and just at some point BAM blast them all out there and these are all the transactions Process them instead of paying crazy high fees. So that's what that is So now let's get into What the heck is zk evm and why is this so big? So This is an article just put out a couple hours ago. Matter of fact this morning, I guess And it states besides the merge which everybody's so impressed with This is the second biggest event in terms of technology and the ecosystem in general polygon co-founder Jelich said So zk evm a zero knowledge proof based roll-up, which we just talked about achieves equivalence with the ethereum virtual machine or evm This means that developers can easily deploy applications written in solidity The theorem smart contract language language and take advantage of the ecosystems robust developer tools Just as they do on the ethereum mainnet Right now. I'm not impressed. I know for you developers you're like, this is the biggest thing of all time I'm not a developer. Like when I read this, I'm just like, I don't really care about that Where's tell me why this is going to be awesome. So we'll get to that roll-ups Based on zero knowledge proofs have several advantages over the optimistic roles, which are already up and running great Zero knowledge roll-ups combine many layer 2 transactions to one which settle on ethereum as a validity proof While computationally intensive Zero knowledge roll-ups are much faster And this is this this is the comment from polygon sandeep. Not while he says nail it It makes ethereum almost technically or theoretically infinitely scalable and that's what everybody's looking for How much can we scale? How far can we go? How far can we bring these transactions per second up? without having the problems of the issues of price And security or safety It has network effects. It has developers. It has users So, you know, we can take web 3 to the next stage of growth And I got to tell you that sounds pretty good because uh, that is the one of the biggest concerns I had there was well, of course the fees and the second one was how many treats transaction per second Can ethereum actually do well with these layer 2 solutions looks like it's infinite Which is kind of like when we talk about with cardano and hydra So I think that'll be let's let's let them battle it out A closed test net a polygon zk evm should be available within two weeks. So again, this isn't even live yet Test net's coming. So everybody calm down Should be available within two weeks with a public permissionless test net to follow a few weeks later A future configuration of off-chain data will be able to reduce the fees further. Let me see that again A future configuration of off-chain data availability We'll be able to reduce the fees further now. We're talking that sounds good. I'm sick of the eth fees Polygon avail envision seven roll of chains. So this is where it gets A little more technical, but this is if you want to know how this works out Well zk avm is a proper old school roll up Potentially significantly efficiency gains are possible by using an off-chain data availability solution such as polygon avail in a roll up 7 to 80 percent of the cost is attributed to storing eth call data That component can move to avail which is on polygon and would transform zk avm into what's known as volidium Everyone is really looking for lower transaction fees. That would be me as as well if the security can be maintained We will see every roll up At least in his opinion, we'll have a roll-up version and a volidium version. Sure So it sounds like things are going to be better faster cheaper And it's just going to take time This was interesting. I didn't know I didn't really know this polygon is a multi-chain ecosystem Well, I guess it makes sense We believe there will be probably thousands such chains built on top of ethereum And this is not a wall again So what does this all mean? This all means that potentially we could see a reduction fees the merge is coming about And hopefully they hit their timeline. I'm a little still a little bit suspect But that's just me kind of a wet blanket a little pessimist and if it happens, well, great Now if polygon can actually do what it says it's going to do with these What do they call zv I always get this wrong. Well, there's zk roll-ups, but zk avm And they can scale infinitely and they can drop the fees How hard would it be to stop? Ethereum as they move forward because they've got a pretty big First mover advantage. They've got a lot of developers working on it Now the question becomes how can the other ETH killers and and different layer one solutions Will you work themselves out? I don't know who's here to win. I really don't care I'm just here to invest into one of the fastest horses and go from there It doesn't mean I won't stop investing in other ones because I still think there's a lot of room to play And there's a lot of room to grow anyhow Let me what you think about that in the comment section if this makes them truly unstoppable Or if your layer one's going to be the most awesome thing. Sure. Maybe it could be I still got my eyes on Cardano and avalanche and salon and all those ones and I'll probably still have them in my portfolio But we'll see anyhow. That's what's going on with that piece. Let me just think about that now. Let's go into Some clown news and unfortunately I am the clown for this one. So it's a bummer It's a bummer Yesterday I think everybody now realize we've been on colorblind Is this what's going on? so Yesterday we did a little breakdown of The sales see us stay in court as far as they're chapter 11 and the deposit breakdown I Inadvertently mix these two up So you got the earned program custody lending and sell balance and I for some reason I'm still having a hard time looking at this thing sell balance is like 4% I guess I wish they just used numbers a real hard time with colors. I mean the custody program I get and 77% is the earn yesterday. I switched around earn program with sell balance. So my bad And uh, that's that's just one part, but I do remind everybody This is was the interesting part from yesterday's video. First of all, of course, we saw the debt that is there And uh, if anybody's the clown, it's I gotta tell you Celsius is doing a pretty good job of clowning themselves because the key legal questions There was two Are the crypto assets and Celsius possession property of the estate? Meaning the Celsius that you and I put on that on that platform They're saying that's theirs and and we actually take a look at yesterday the terms and conditions And it did say essentially that you gave up we gave up all rights And essentially when it went on the platform Uh, it was now the property of Celsius even though they were lending it out So I know people on twitter were telling me but there's some video of of alex machinsky saying that It's your crypto. I'm like, well, I'm still waiting for those videos So if you got it, uh, hit me up in in twitter and tell me what's that where those are Not just some some some errant twitter some tweets from somebody. I don't care about that Show me the video and uh, that'd be great And I'll put it on this channel And then the next one which is I think the biggest clownish thing is Celsius recover customer withdrawals Or loan liquidations Completed in the 90 days before filing as preferences meaning Uh, remember that video I put on June 12. I told everybody I was like, I'm taking mine off. Maybe you should do Uh, they're saying that they could potentially claw that back. That's crazy. So there's that and then also This is from a friend of the show Aaron Bennett. He's got his own youtube channel. He's checking out Good guy got the there's a lot of great news stuff and whatnot and he says, uh Celsius network wants to pay each employee an average of 30 000 The month after they follow chapter 11. This does not include director An officer payments which an additional three million dollars after losing a billion dollars of our money And uh, he breaks it down the estimated amount of weekly payroll payments to employees not including officers Directors stockholders 3.4 million you divide that by how many employees they have that's 30 000 months per employees Well, let's just say they have 900 employees. That's still 15 grand per month per employee. That's a lot of money That's your money. That's our money going to where to these guys. I don't know what they're doing But uh, that's what's happening. I just found it's quite fascinating That's what's going on and if you want to Hear about what potentially the plan could be moving forward And how you can be a part of having your voices heard come on by in about 45 minutes To simon dixon. He is going to be doing a Uh, what is it? What are these things called twitter spaces? Where uh, it's going to be him And a bankruptcy expert. Maybe that's a lawyer. I'm not for sure and this is going to happen at 12 30 p.m Right now it is 11 46 am where i'm at so in 45 minutes Uh, so meet me over there. I actually let me see look at this, right? Yeah, there's a link in the description in the description called twitter spaces with simon and you click on that and it'll take you Right to the twitter spaces So I am eager to see what is going to be said about simon's plan and what's going on moving forward and also Some uh information. It looks like uh simon might be I'm not going to say it. So I'll let him say it. So just come to the space and just check it out. Anyhow, that's enough for clown news Get that thing off, but uh, that's what's going on and then lastly Uh real quickly another exchange goes down. This is i'm not going to read this whole thing because we're kind of running out of time but Zipmex suspends withdrawals as ceo denies financial troubles. Uh, this is They are located in singapore, I believe Crypt exchange Zipmex has paused withdrawals and his platform is following a combination of circumstances beyond its control Which is kind of weird. Why they're doing that now because the market's going up, right? Here's the here's the quote Ah Under the tie license they zipmex are strictly not allowed to touch customer funds. So that's pretty good, right? Because why Why would they need to do that? However, zipmex has a product on the exchange called zip ups that effectively lets users move funds under the Singapore entity to earn yield Which is the downfall. I think of every exchange now. Look at voyager look at uh Look at Celsius and I wouldn't be surprised if it comes out that they get they gave a loan to three euros capital The source explains that the funds were given to babel to generate the yield about 100 million was lent to babel Oh babel, excuse me, which is now at risk of defaults in june hong kong base asset manager babel finance halted withdrawals Due to unusual liquidity pressures and then the whole article was really just about how coinbase was going to buy Zipmex But then they pulled out for some reason but gave a small allotment And for me, I think this is a pretty big opportunity for coinbase to I don't know branch out if zipmex goes down and they already have license in singapore and east asia Be a pretty good pickup for coinbase. Just thought about it. Anyhow That's Concludes that piece. Let me know which thing about a comment section and then lastly before we get into q&a There's a meetup today. So if you're in the l-passel area and very few of you are I just know that because not a lot of people here. I'll be here Union draft house. This will be today from four to six And they got a lot of good food And I got some beer. I like this. I like this picture that they have up school is good But beer is gooder and that's a that's a pretty good point and after this These last couple of weeks. I think maybe maybe we all could use something like that And I got a ton of beer over there. So I will be drinking not to excess but just so you know It's on the east side not the one on the west side Here's mexico Here's that and then I live somewhere around here. That's what's going on. So look That takes care of today's news if you like today's video Give it a like you don't have to subscribe. It's okay, but a like would go a long way That's the only way that youtube kind of recognizes that i'm Actually alive here and that's it. So look like today's video thumbs up all good stuff Now if you got to take off get out of here