 Welcome to Digital Asset News, the top stories in cryptocurrency digital assets and bring them down to bite-sized pieces. Today we've got a lot of stuff to go over so let's jump right in. Top New York regulator calls crypto an important potential alternative, i.e. a game changer for the current financial system. This is a long time coming and what this person says kind of blew my mind. Also, why a lack of leverage could keep Bitcoin and stocks climbing despite the sell-off? This is one of the big questions. If the traditional market starts to tank, what's going to happen to Bitcoin and cryptocurrency? As we're going to point out, it's going to actually, it's going to go the opposite way. Also the sushi swap creator who did an exit scam of $14 million admits he effed up and actually gave all the money back and this is one of those shining lights in a very dark sea of what's going on with DeFi and I have to tip my hat to this guy or gal who did this. Obviously, European crypto exchange hacked for a paltry 5.4 million of Bitcoin which will lead us into question of the day. We'll do that at the very end but let's take a look what's going on with the market. So today is 9-11 and it's a very somber day in the United States and across the world so I can just tell you, I can remember waking up today, you know, all those years ago, 19 years ago and just watching the news and total utter disbelief. I couldn't believe it happened so it was a pretty dark day and hopefully we never forget what happened. Alright, moving on. So what do we have today? So Bitcoin up 0.1 so not really doing too much, it's kind of teetering at 10.3 Ethereum, hey, 3.7 not too bad, only down 4% for the week. Heather's Tether and XRP is XRP. Shane Lake down 1% to 12.42 so not too shabby and everything across the board isn't too fantastic except for crypto.com and the reason crypto.com is up I believe is because they're getting into the DeFi space with a liquidity protocol for their CRO token so it's an interesting development. Let's see how it works out. Also, Tron is up 2.6% congratulations to all the Tron holders. NEO up 10% I have no idea why. No idea if someone knows why NEO has a legitimate reason to jump 10%. Let me know in the comment section because I don't get it. You're in finance jumped all the way back from like 21,000 out to 33,693 per token so amazing and UMA another one of the DeFi darlings at 17.29 so not too bad and that's pretty much it except for synthetics also a DeFi token up 10% and 13% for ontology again that must be a NEO ontology some type of connection there so let me know what that is in the comment section. Let's get into today's top story. So the first up New York regulator calls crypto an important potential alternative to the current financial system and this is one of those things that would have blown my mind in 2017 if a regulator from New York and all their bit license shenanigans comes out and says you know what? Cryptocurrency is a pretty good thing. We should really look into that. I would have lost my marbles but here we are today. This is actually Linda Lacewell a New York Department of Financial Services superintendent considers cryptocurrency a top notch innovation. We talked about the importance for regulators to stand back allowing entrepreneurs to lead innovations especially in the crypto industry I could not agree more. What a breath of fresh air. This person Linda must be an entrepreneur herself because there is no innovation coming by way of the banks. The banks should just step out of the way. The OCC said the exact same thing and just let innovation take its course and that's all they got to do just get out of your own way and let us do all the good stuff and you guys can just go back in the shadows and it's a pretty lengthy article. I'm just going to read this paragraph which kind of blew my mind and one sentence in particular. Linda states so I think that crypto is very important as an innovation and as a potential alternative to some aspects of the financial system. Some aspects. The reason I like it is that it's organic. It's been developed and over time it has become more sophisticated and I remember in 2017 we thought that the crypto market was going to go through the moon but it wasn't so because we needed to lay all the track and get to where we are today and that's why you got somebody who in New York is a regulator saying you know what it's grown over time and it's more sophisticated and we see the use cases. Further she states when you have the fidelities of the world coming in looking for some type of bit license from us you know that things have really changed. We can't say it's on the fringe anymore and that is exactly the main point. If you take a look at the deli with its 8 trillion assets under management and they're telling these regulators going look we need a bit license because we really need to get in the cryptocurrency assets so like that's interesting. You guys got a lot of money to throw around so maybe there's something to it. And also Ameritrade the same thing and we also have our darlings which is grayscale with their 2.2 billion assets actually announced like 4.3. This is a report from Q1 of 2020 and they talked about how hey the majority of our investments 88% came from institutional investors dominated by hedge funds and that was the first quarter so this one coming up I mean it's just it's going bananas. Also you have the Paul Tudor Jones which Paul Tudor Jones you don't know is one of those investment legends who really crushed it in the 80s early 90s and he came out and said look as of May 8th he states I'm going to put 2% of total investments into Bitcoin futures which people say well Bitcoin futures what is that doesn't matter the guy just said his name with Bitcoin that's all people really really have comprehended so far and that's good for our space and then lastly we say we see somebody like MicroStrategy which is a open analytics platform and data analytics and crunch the numbers and they and their CEO came up and said look we just bought 21,000 Bitcoin in August and they now own 0.1% of all Bitcoin the CEO stated look Bitcoin is digital gold harder stronger faster and smarter and any money that has preceded it it wasn't what he said but he just didn't beat around the bush and these the types of things especially this is a pretty good company they probably took a lot of crunching of numbers and say you know what looks pretty good Bitcoin and Cryptocurrency assets let's get into that so when we start to talk about these things that you know the institutions are coming and there's changes afoot that is proof of what we want to see so let me know what you think in the comments section let's move on next up why lack of leverage keep Bitcoin and stocks climbing despite the sell-off so this is a big question that that comes about because we've seen massive growth in the S&P 500 the traditional market NASDAQ and everything else because it's a bubble let's just call a spade a spade it's a bubble the Fed is in there and they are propping everything up so the question then becomes well what happens when the Fed goes hey sorry we can't print any more money we just ran out of ink they won't say that I mean at some point they're going to actually stop quantitative easing so what's gonna happen to stocks well it's gonna pop and then we're gonna see a lot of people going hey what do we do now I believe that the traditional market players that are in cryptocurrency right now there will be a slight sell-off but the strong hands like you and me right now we're going to leap the benefits massively and I've always said this what is going to propel the cryptocurrency to last that space is uncertainty and when we've got things like the presidential election this coronavirus come breathing down our neck and a lack of a vaccine what we're gonna see is when this bubble pops of like what wait where we put our money what do we do what we'll take it out of the stock market and guess what we could do maybe put it into I don't know gold silver and this thing called Bitcoin which is digital gold and what's all the other cryptocurrencies are they're all going up what's this DeFi thing maybe that's a big thing to get into getting ahead of myself sorry this is what the article states the sell-off taking pause may only be emboldening bulls and further encouraging them to buy the dip with confidence and until more leverage is added to the market analysts say more upside is likely before the bubble burst and sure we're gonna see more increase in the traditional market before it actually just blows out but this is what interesting the sell-off which just recently happened S&P took a dip in the six top tech stocks combined was equal to or greater than five Bitcoin networks and market caps worth of value can you imagine that 200 something billion or 160 whatever 180 billion something like that five times five acts of what that is and there's just these tech comp I mean not just attempted to catch comings but I mean Facebook really come on come on and you have the ongoing correlation between crypto and the stock market had previously kept the asset classes climbing side-by-side when sentiment turned recently both classes fell again together and according to Andrea C. Cione head of strategy at investment research firm TS Lombard points to this chart right here now we can see that it does look incredibly similar let's just be honest right Bitcoin here Nasdaq they're climbing dipping diving dodge dick dip duck dodge and dive but here's the whole crux of it uncoupling so C. C. only claims that unlike other peaks and price there's a distinct lack of leverage in the market that has prevented a trigger in more downside he states after such a severe drop weak hands have already been shaken out and now with support holding both Bitcoin and stock market bulls maybe we're getting both their footing and confidence for another push higher further growth in the stock market could as C. C. only warns could reflate the tech stock bubble and keep evaluations climbing but that isn't changed the fact that there's still a bubble and it's gonna blow up and lastly what could separate the two classes once and for all confirming a $10,000 as support this is for Bitcoin and a triangle breakout could cause serious FOMO and crypto beyond what's going on in stocks the allure of prices soaring while stocks potentially start to stagnate or suffer could further fuel Bitcoin's rise in the inflow of stock capital so here's what's going on you can see and we just took a look at that recently we took a look at coin market cap or not excuse me coin get go and it's just it if it has gone below 10,000 it's been for a very short amount of time 99 80 99 62 or someone there but it's always hit that 10,000 and bounce right back up if they can keep that level it will signal to all the different investors out there like look here is our bottom line 10,000 and we can only go up or we can only go up from here all time high was of almost 20,000 this just happened three years ago we already had our having we've laid a lot of track there's a lot of new innovation in the space we are ready for prime time and we've got a lot of institutional players who have come into the space and go we want Bitcoin so again I'm just gonna reiterate what I said in the beginning what will push the crypto market to higher highs is uncertainty and speculation and with the presidential election coming up no vaccine and we got a plunging GDP for not just America but for nations across the globe we're gonna see a lot of uncertainty and what that's going to do is push people into crypto currencies last sets as a safe haven let's move on next up I just saw this and I had to I had to put it in and it was an I F'd up sushi swap creator chef know me returns 14 million developer funds when I first heard about this story if you don't know sushi swap it's a D5 platform and they were able to give everybody their governance coin which is sushi in exchange for borrowing or lending cryptocurrency and it was quite a lucrative offer the problem was is that this guy said hey I'm taking all that money thanks a lot I'm out of here and what he did which is unprecedented he came back and said you know what where did he say right here this one right here to everyone I F'd up and I'm sorry and he gave the money back so I was critical this project I was down on it but if you this is one of those those shining beacons of lights in a very turbulent dark sea I'd like to see I'd like to like I'd love to see these types of stories so someone came back and said hey you know what made a mistake raise your hand and this is what we should be doing just as people in general when you screw up you say hey I messed up I mean I do all the time that's my wife so like this type of story is fantastic I'm not gonna delve to too much into it just take it for what it is I said hey I should have done that and I'm returning money and let's make this thing great let's make let's make sushi great again and that's essentially what happened so what are your thoughts on this let me know let's move on to our last story last up European crypto exchange hack for 5 million in Bitcoin what a bummer Eaterbase a Slavic crypto exchange revealed Thursday that had been hacked for 5 million cyber criminals broken a six hot wall is coming Bitcoin Ethereum Algo Ripple Tezos and Tron oh no not Tron stealing everything it said so I would just say one thing I get emails constantly from different exchanges all over the world that want me to advertise on the channel I just say no because I just can't do it I just can't do it I don't know I mean they don't have a track worker that aren't really proven there's a lot of risk but there's a lot of reward on that you know but I'm just won't do it and this is a reason why because of stuff like this anyhow it states here hot walls are active digital asset accounts connected to the internet Eaterbase use these walls to facilitate day-to-day act trading activities on its platform and this is not just them this is hot wallets are across all different types of exchanges so it's all about the security measures that they have in place I need to get a security expert on the channel and talk about how they how like a coin base doesn't get hacked but Eaterbase does that be interesting according to a series of messages posted on telegram channel Eaterbase detected the hack and this is what sucks but was powerless to stop it imagine watching five million just snap out of existence like Thanos and it just goes away and that's it and you can you can't do anything you're like well there goes that would be awful eventually the company tracked the crypto assets as it left its coffers a large part of the stolen money ended up at Binance who will be global and hit BTC it claimed on Twitter Eaterbase has now contacted these exchanges requesting that the funds be frozen and I will do a follow-up to this story if this actually happens and because there's there is two different segments of people one one group is like you know what scripted crystal assets so if that happened too bad so sad sorry Charlie you lost your money there's another part that says you know what we have the power and ability to do this let's freeze these assets and this has happened this is the main reason why Ethereum Ethereum classic split because of hacks and trying to rewind what was already done to me it's not for me to say it's not for me to put this in but I would I'm curious to see what's going to happen with this I'm very curious actually lastly it states in July another European crypto exchange Kasha lost 336 Bitcoin worth 3 million and then also last year Japan Japan's Bitcoin and they lost 32 million and a few months later South Korean platform up it lost 52 million safe another Japanese exchange was attacked for 60 million 2018 so this is some of those problems I talk about with exchanges and hot wallets and the question then comes up is like well should I just hold everything into my Nano ledger which is a cold wallet should I put it someplace else and this is actually a complex answer and I'm gonna do that right now in queue of the day so let's jump in the office alright everybody welcome back to the office the queue of the day is a pretty interesting question but really what it is it is a question that is one of the basics of basics that we should be covering and not just here but we should be covering this a lot more so the question is this is from Kat she says hey Dan can you explain why we should transfer our Bitcoin and crypto to a ledger which is a pretty good question right why would we have to you know transfer everything especially when we're used to banks doing everything for us Kat states why can't we just keep it on the exchange is that unsafe it seems easier like a bank what if we lost our passwords phrase is all lost isn't it easier for a company to retrieve a password is it a must another gadget in my home what a pain so this is a great question and that is why we included the last article we talked about the different exchanges that are getting hacked and this isn't just happened like recently this isn't like a non-normal occurrence over the years there has been many different exchanges that have been hacked and one of those one of the biggest ones was Mt. Gox and it was like around 300 million 400 million somewhere around there correct me in the comment section I'm sure you people know the exact numbers but it's one of those things where if we have a a hot wallet as they call it like we talked about in the last article it's a much easier for these hackers to get in there and it's just sitting there right for the taking so the easiest way is to shift everything over onto a nano ledger which is called cold storage because it there's no access to you know from the internet so hackers can't get in there unless they have a quantum computer which that might happen in 20 years who knows or 2 or 5 if you're you know conspiracy theorist or maybe it's even here right now who knows but the whole don't worry about that the whole thing is is that if you want to be completely safe and then really get into it and become your own bank then you should really look towards a nano ledger and this is one of the things that it frightened me in the beginning but I also appreciate it now more so as I've gotten to realize just how dirty and I believe the banks are look the banks have been screwing us for years and they were responsible for that 2008 financial crash that's essentially why Bitcoin was created in the first place so when we started to talk about you know be your own bank you can be your own bank you don't have to deal with those you know all the different banks and all their crappy interest rates that are just awful all their fractional reserve lending and all the different nonsense that you have to you know go through and jump through the hoops just to put your money somewhere so why even go through that that process just do a little bit more work and you can become your own bank so I want to go over this question again just to make sure that you know I answer everything in detail so why can't we keep any exchanges can we answer that actually no I didn't answer that there's a little caveat and the caveat is is that you should definitely take everything off of the exchanges and put in your nano if you want to be a hundred percent secure however in my exit strategy I talk about leaving a portion of your crypto on the exchange as things start to go up and starts to get into that bull run see the problem with with bull runs this is more of a bad strategy but the problem with the bull runs is that once prices start to climb there's a weird mentality that goes on and that mentality is well if it just ten next then you know tomorrow or next week or a month it might a hundred acts so I don't really want to sell anything right now and that's the problem with taking profits however if you leave a little bit on the exchange and I'm not saying a hundred percent I'm saying a little percent ten percent fifteen percent and go ahead and check out the bull run strategies or exit plans that I have for Bitcoin Ethereum next RP and if you're able to put things on the exchange then it can trigger automatically and we can set up these orders that just trigger without you having to do anything and you can take profits and you have to deal with the emotional roller coaster of actually selling your cryptocurrency so that's one things I recommend and it's one of those caveats I talk about also another caveat is this is if you want to gain interest on your cryptocurrency you're not going to leave it in your nano ledger because you can stake it you can put it on to other different platforms such as Voyager such as Celsius such as BlockFi even crypto.com they have an interest if you leave your cryptocurrency on their exchanges so the problem with that is of course you are not in control of your cryptocurrency however you're resigning that to these exchanges to these entities so they can pay you an interest so that's just one of those things that to think about so for me like when I talk about these things like when I first got a cryptocurrency it was like you need to take a hundred percent of your cryptocurrency and get it off the exchanges because if it's not your keys it is not your crypto and that was the model that we've been living with for quite a long time but now as things have changed a little bit as time has gone on there is a little bit more of a leeway in that whole thinking now again you can do whatever you want to if you want to put everything on a nano ledger put everything on a ledger it's the safest that you will ever have and it won't I mean it hasn't been hacked yet so we'll see what happens but you can do that you can do what I do which is to leave some of the exchanges for the bull run also put part of your portfolio into a type of platform that will pay you interest for doing absolutely nothing which is way more than the the shoddy banks that are out there so it's just up to you me personally I have 25 percent of my entire portfolio in Celsius Network right now in Celsius I have 25 percent of all my cryptocurrency because I trust it and trust is a currency that you can't buy and I believe in Alex Mishinsky and what he's got going on over there now that other other platforms I could definitely do it but for right now 25 percent that's where it is the rest nano ledger and a little bit on the exchanges right now for when the bull run actually or the parabolic bull run actually happens so hopefully that answers the question a bit more thoroughly and then Katz states is that unsafe it's unsafe and we look at it's unsafe it seems easier like a bank and this is one of those things that we've all dealt with this for the longest of times which is just to trust the bank just to put money into the bank and it's that's right there FDIC insured $250,000 so it's not like a big deal and then of course if you do any kind of transfer to something like that it's the response of the bank to you know actually pay you back something screws up or if they get robbed or whatever else once we give up that power to the bank and we freely gave it as a way once we do that or once we did that we are essentially bending the need to the big banks and allow them to do whatever they want to do with our money and we have to jump through all the hoops to you know get a bank account to use our own money to transfer our own money and to you know just to be able to say hey you know I have a net worth somewhere which is in some bank which they're kind of screw me anyhow because you know they're taking all this and they're they're loaning it all out and you know whatever whatever they want to do because I have no recourse well now you do you have a recourse which is cryptocurrency assets and you can put you know part of your at least part of your money into a different type of asset class and you can give you know one of these fingers to the banks so that's it and then the next one is what if we lost our password phrase so first of all I'm going to direct you if you haven't watched my nano ledger video yet it goes over what are private keys what are public keys what is a hot wallet what is a cold wallet what is everything you need to know as far as a nano ledger and just everything that I just talked about so and then password phrases or mnemonic phrases or however you want people use different terms so the thing is this is one of the aspects of being in your own bank if you lose your passphrase and then you lose your nano ledger there is no recourse that's it so there's different products that you can buy out there one is the stonebook or shieldfolio.com I'm going to link that in the description they were sold out for for quite some time and it's just a it's just a book that is very hard it's not indestructible it's pretty much waterproof it's not fireproof it's smudge proof it's time proof it's I mean but whatever you write in there is going to last a heck of a lot longer than if you write on a piece of paper so if you look at something like that I'll link in the description but yeah if the password phrase goes away then that's it I believe that there's going to be a bigger market for password phrases and storage and everything like that I've seen different products where it's actually in steel people actually etch it into steel so that's indestructible I mean unless it's like a you know super hot or something like that but the best thing that I found that is the most practical and the most price relevant would be that shieldfolio stonebook and I have one myself and I have all my passphrases in there and it's fantastic and it's portable so what are you gonna do and then the last thing it says here is isn't easier for a company to retrieve a password oh you better believe it super easy right if and one of the whole big issue problems that these banks usually have not a problem but they have a whole service center for this is just people losing their passwords so it's and they're like hey no problem we'll have tons of people on staff to help you get into your account as long as you keep feeding us the money so we can do what we want to do and we can kind of rake you over the course and that's how it is so it's super easy for them just to you know reach in the faster sure no problem come back to us come back to us coddle us no big deal you're safe right here nobody has to go away just keep putting your money in here and don't look at what's happening behind the curtain so that's it so hopefully answer that question for for cat I wanted to really go into detail these are some of the things that especially as new people come in we need to teach them and that's why I am working diligently to get my free website up which will have all the different information out there as far as like what cryptocurrency assets are how to do certain things how to you know transfer your money how to do all the things we just talked about right now and a simple to use format which has like like a Q&A section and all these different things so I'll definitely get that hopefully in the next month or so so that's it so hopefully answer your questions let's jump back all right that's it so thanks for sticking around with me to the end I really appreciate it if you like those types of videos I mean two months gonna pop up on your left and right not sure because YouTube does all that and that's it for today so check those videos out when you've got time really appreciate it thanks for sticking with me and I'll see you on the next one