 Let's go live All right, buddy. Welcome to DCA Fridays and this is gonna be I think a pretty good ones We're gonna talk about a lot of different things first of all I want to say thanks everybody who showed up for the live stream Of course, we've got from into the crypto verse. He is here yet again, and then we've got also James From the best answers Thankfully to kind of set us on the right path and of course if you're looking for their channels There's a link in the description for their channels and I also put a nice link to James's patreon Which I am a member and also to Ben's website in the crypto verse Which I am also a member and a pretty good shill for both. All right, so gentlemen How is everybody doing the day after this crappy market? You know, I like I wanted the Bitcoin dominance to go up which it's doing and It's like sort of like the silver lining right is bear markets kind of suck But if you can if you can kind of protect yourself to some degree, then it's not not as bad That's right. That's exact. I think I think James even had a pretty good video about risk risk management not too I'd like to watch it pretty good Thank you So let's get to it. We got a lot of things to go over. So first up This is a long question, but I think it's super important to talk about it. So the Luna The Luna collapse I'm sick of talking about it. I'm sick of dealing with it But there's some there's some real gems to gleam from what happened. So the Luna collapse I think humbled a lot of us it humbled Mike Novogratz. It humbled me it humbled a lot of people and Even Mike he said in a letter to his shareholders to observe four things and the rest of us smart Keep a diversified portfolio take profits along the way have a risk management framework and all investments Happen in a macro environment. So here's the question for you guys And I'll start with Ben first. What's your biggest investment mistake and why is it that? People only remember these basic principles during the big downturns You know like people will buy meme coins and NFTs and all that stuff and then the third part is what's your golden rules of? Crypto investing for risk management. So it's pretty loaded question biggest investment mistakes Why do people only figure it out during the downturns and what's your golden rules? Ben my man? I'll start with you. Sure. I think one investment mistake that's Can really hurt a lot of people and it's hurt me in the past as well is is thinking about, you know a sunk cost Something something that you see a lot in bear markets are people continue to Think that they have to hold on to all these meme coins and all these random coins because they're down like 40% They're 50% and you know, there's no way they can get out now but you know, I've lived through enough of these bear markets to know that You know, there's something called a sunk cost and and if you had that money available to you today Would you put it in that project? And if you wouldn't that doesn't mean you have to hold it Just because you're down a certain percent you can protect your capital and and get it out into something less risky So, you know, my best example was, you know back in in 2014 buying buying all coins in the bear market You know and by the time we hit the bottom I didn't have any money left to put into the market, you know because I already put it all into the market and I kept falling for the You know, all the pumps gonna happen next week the pumps gonna happen next week And I just kept believing it and putting money in and putting money in and I was like, what what am I doing? You know, I mean, I'm not and then it finally drops another 50% at the end of that year or actually early It was actually early 2015 was when the bottom occurred. I Didn't have enough to put in the market and and I think, you know, how do I how do I Cut some losses on on all coins once I you know, once the bear market was officially, you know, it's extremely well Tell you know telegraph to everyone It would have gone a long way and if I had if I had if I had just been patient and I'd stack cash Like if I had just been like, you know what? I'm not gonna buy falling knives I'm not gonna try to catch these falling knives. I would have done so much better because the truth is is you know Everyone's so focused on these all coins and you know, where are they gonna bottom? But again, the truth is with with a lot of these things after we find a bottom We're gonna go sideways for a while before we likely go back up. So you should have time I just think that trying to catch these falling knives of all coins. It has been one of my biggest mistakes in the past by far and and and recognizing that it is okay to sometimes take a loss on a trade is Is you know recognizing that's okay is is sort of what what helps me start to start to be a little bit better Makes sense and then the the next well, you know what? I'm gonna I'll I'll I'll jump because the the second part was What are oh, yeah, sorry, what so I bleeped out for a second. What was Why do people not remember these things? As things go around but you know what don't but but hang on to that because I'm gonna jump real quick to James and Talk about his big investment mistakes that are out there because we've all got some Yes, it's kind of a very very deep Philosophical conversation you got going on here straight out of the gate. Yes And these are these are times as well that I say, you know, every gets kicked in the teeth. There's no escape in this This is It happened hard it happened fast it was a confluence of events that brought everything down quick So anyway back to my big lessons one is not going in harder on key investments like going in hard, but you know just doubling down would have been more than life-changing and sometimes, you know That stems back from some as I got into stuff when everybody was talking bad about it That includes Tesla that includes Bitcoin that includes Ethereum in the early days, you know, people say, you know It's never gonna rebound. So listening to others can be very dangerous. And here we are talking to people We're hoping they listen to us But you know listening to others listening to like even if you look at what is published in Investment drags today literally 80% is complete garbage and they're way behind the curve, etc So make sure you listen to really really smart people and the other thing that's kind of interesting is Taking profits too soon and both ways. So like I was hedging back in January of this year I was shorting Tesla 1200 and I have a huge long Tesla position and I took profits too soon I kind of got nervous, you know And if I just had the patience and fortitude because I know over time it's a volatile beast and Tesla's trading under 640 right now, which is You know, which is where lower than where we were a year ago But the company is more than twice as valuable as it was a year ago because of opening huge factories and new technology human leases, you know, it's nuts and then the other thing that I've made a mistake on this year was I'm working on building something and And I put too much focus and time and energy on that. I ignored my own portfolio and And I deviated from my risk management rules, you know So that they're kind of kind of key lessons that maybe people can and I agree with everything as well that Ben said Yeah, how about you Rob? Well, you know, so I mean my biggest and best mistake it echoes what Ben talks about with crypto 2017 I went a bit too hard and I let I wrote it all the way up and all the way down We know that but the biggest biggest mistake of investing I ever made Was not in crypto. It was years ago I am helped to invest with a friend into a nightclub. There was a lot of money and I had no idea what I was doing But of course you get wrapped up to this is the best thing this is gonna be big and this is whatever else Which I think can echo a lot of what people may have gotten into as far as with FOMO and even even crypto projects So that totally collapsed So I've learned one big lesson never invest in anything You're not a hundred percent sure about and that you don't know a heck of a lot about and I think if you can do that Even if you aren't, you know, totally super well-versed but really get into it And it's really Understand the principles of I mean just like now with crypto. I think you're gonna be okay Just don't get into it when it's just the bad the bad choice. So that so there is that that second part I'll just all open it up I'll keep keep with James because we have these principles. We know we're supposed to follow them But what knocks us off the horse? Why do we forget these things that we're supposed to do? James Okay, so I have a Mesh mash of kind of key lessons that sometimes I don't even follow One is stop losses. No one to get out No, and that is tied into as well as constantly reevaluating your thesis so there were things that fall and keep falling and You need to know when to pull the pin and get out and move on to a faster horse as I say So constantly reevaluate value of your thesis, but if you are Fall in the hard on something like like say for example Bitcoin or Tesla and they come to crazy low prices like Tesla hitting 25,400 or yeah Just say Bitcoin hitting 25 for or Tesla going down again These are times that you look back in two years three years five years and say God that was such a good time and I had I had a little bit of PTSD from July 2021 that I didn't buy enough Bitcoin at 29 K And I never thought we'd be here, you know, ten months later having the same opportunity again So again, take take this everybody It depends on your time frame think know your time frames know your plans know your goals know your risk management profile again, if you're in pristine assets that are game changing and we are in a transformational time you need to be Getting a little piece of these assets because they will change radically over the next three five eight years 2030 will look back. It's like wow This time eight years ago X was trading at Y price and I knew DeFi would have been big, but I didn't go in hard enough and this goes back to the mistake I spoke about earlier having that conviction and having a mix as well not a mix of Similar assets, but a mix of asset categories is also very important So that way, you know, for example times like this You're happy you have your real estate even though real estate is about to hit a wall and slow down But it's been very good over the last couple years Um, yeah, and that's it and just remember investing as a blood sport on the other side of every trade Is somebody willing to punch you in the face? So always go in with your eyes open and again have high trust in management teams of companies and tokens Analyze the people behind these projects Absolutely critical when there's a sign of weakness bounce bounce I like that. All right, Ben. I'm gonna roll it into same thing. It's gonna be why do we forget these principles? and what is your what are your golden principles Your golden strategies for crypto investing I think we forget things when, um, things don't go according to plan um, you know, it's like As uh, right everyone everyone has a plan until we get rejected off the two in a day, right? Mike Tyson I think that You know Going into this bull market going into the you know, the first parabolic rally. I think for a lot of You know older investors or people who just been in the market longer It was really clear and easy to take profits on that first parabolic rally Right. It was really easy because it was kind of going to plan right? It was like, okay We knew a parabolic rally was going to come it actually came earlier than I thought I would And and it was easy to you know to navigate that but then when you you know When you dump 50% and then go back up and you know It sort of looks like the structure of the market is is is looking a lot different It can be it can be easy to you know to forget some of the principles that you established in the bear market and actually You know when I go back and watch some of my videos from 2019 You know, I remember talking about you know, ethereum Like you know, like the the lower bound scenario would be like four to five k if it's more optimistic It might be like eight or nine k something like that But then whenever the time comes when you reach those prices You know, you just want it to go higher. You sort of forget how far you've come and and greed kind of takes over Um, yeah Well, I think that's probably the biggest thing is that you you can forget how far you've come And and you forget that ethereum was it like a hundred dollars just two years ago You forget that bitcoin was about three thousand four thousand dollars just two years ago And and the the prices that are today like while they see they might seem cheap It's still a lot higher than where we were just, you know, a couple years ago so I think part of it is just bull markets last last longer than you think and so um, you might you might try to Change your strategy in the middle of it If it's going on longer than you think it should And and then, you know, if you change your strategy that might not might might not be the best The best thing to do So I mean some of the main things that I stick to for especially right now, which is more relevant than ever I think um is I'm not touching all coins with a 10-foot pole Because I think that all bitcoin valuations are in for a major reckoning and you might say well, they've already been wrecked Yeah, they can keep getting wrecked for a while actually they could drop another 50 to 70 percent against bitcoin over the next few months So those are the main principles, right all coins are likely getting wrecked bitcoin dominance is going to go a lot higher You should probably have cash in hand in case the market gets worse and and be bitcoin heavy Um, if you want exposure to crypto because all coins are likely going to get wrecked either way And by the way, if if bitcoin does go if bitcoin does have a rally, which we know bitcoin can go on bitcoin only rallies It still likely leaves all coins behind So, you know, I I think don't make the mistake of assuming all season is around the corner Is is my advice in a bear market because in a bear market, um all bitcoin valuations bleed Yep, that's pretty much it and uh ben brings it james great answers. I gotta tell you Uh, it just makes me realize Again that the problem. I think that the most of us come into is what yeah, I think you guys both alluded to this greed Things come up and uh, you think oh well, it went up 20 percent. So why couldn't go up 30 percent? And it goes to 30 percent Why couldn't go up 80 and 200 and 300 and before you know it you're like, uh, I just went down a little bit It'll it'll keep coming up and it doesn't and it doesn't So for me like my basic like golden principle I try to try to go for is don't invest more than you can afford to lose I try to diversify and not just in like james. You said it perfectly not just in the asset class itself Crypto equities real estate. That's kind of like the thing although real estate is not that or equities isn't that much Uh, and then also one of my golden rules now is uh to set everything with two factor authentication It doesn't matter how much you make it's how much you keep and this week I got hacked So I had multiple email accounts hacked and I saw it in real time as they started to change the password And also they changed the phone number and the next thing they do is play went to the exchanges And because they I had 2fa on all the exchanges they couldn't get past that So these were old email accounts like in yahoo that I didn't set up the 2fa Thankfully on google I did if I had not set up that 2fa All the things that exchange would have been gone and I would have watched it in real time go forward So please everybody make sure you set the 2fa because it's not what you make how much you keep All right, so let's go on the second one. That's a long one, but these want to go a little bit quicker so a recession this was something that I actually took a look at and um I know that we're in a bear market. I think we can all agree there But do you agree with some that are already calling it a recession because elon musk he was on uh all in podcast And uh, he states that we need a recession and won't and of course we're here right now And it'll be for the next 12 to 18 months Which is interesting because he called for a recession would actually happen in april or spring of 2022 and he was actually right So the question is are we in a recession? If you are in a recession, how long is it going to last And uh, where we go from here. So james, you're the guy for this one. We'll start with you. What do you got? Yeah, I actually covered um I built a chart with the s and p 500 index and the history of recessions going back to 1928 And a couple a couple of key things that are happening right now In today's markets as we learned with luna everything moves faster So everything goes up faster. It goes down faster recessions are the same type of thing. Um, I you know, it was pretty clear I did a video 10 months ago And I was kind of debating with myself against kathy wood. She was talking about deflation I was talking about inflation and I said 12 to 18 I got to pull up that clip 12 to 18 months from now. We'll see stagflation, which is high inflation and low growth We are definitely in a recession right now. There's no doubt about that We are staring down the barrel of 1970s stagflation The fed is stuck. There will be no soft landing But things do happen fast. So there's a lot of weird stuff going on this year. We've got an election year We've got they politicized fed. They have to do what it takes for people to get reelected So I do think, you know, summer's going to be nasty and brutal But sometime august september time frame The fed is going to stop raising rates and we're going to go bonkers And that's just the nature of the beast. So recession probably last two quarters and remember A quick hit there are elements of the economy that are still strong But elements that are really getting crushed And that's why I think stagflation is here and the stagflation is no good for nobody. So the fed will be forced to Stop what they are doing after maybe a hundred more basis points, which is 250 And then they may also have to reduce the amount of their qt the quantity of tightening or even Flood some money into the system because they're dependent on tax revenues And I can't remember what the exact number is but tax receipts cover Only a quarter of the actual Deficit that the government runs. So everything is just the government is in this big massive debt spiral So we'll see what happens now speaking of the market itself recession Typically what's very important to note for all the investors out there By the time the world finds out we're in a recession Everything is kind of bottomed out and it starts going up again So again, I think I mentioned that on the show a few weeks ago, but that's kind of where we are So you just got to be On the train at the right time. I think settling out now moving to cash now with everything at these crazy valuations Um, like durian trimmer had a very good post today on twitter. Uh follow him He's a brilliant macro guy market guy He sees everything as it is and he sees valuations right now as being extremely cheap and so do I like again He got Tesla trading at 600 It's going to probably do 25 to 30 or dollars per share So it's not trading far off a pe of 30 For the fastest growing company on earth. It's kind of ridiculous. No crazy. All right, Ben It's the same thing, but I'm going to roll it into the next question too. So do you think we're in the recession? And then if it if this does actually last what trades are you doing in during this time if any? Yeah, I mean seems likely we're in a recession Um Yeah, and I I think yeah, like it's probably going to last a few Probably a couple quarters at least maybe two or three quarters Um, remember that stocks normally bottom before the recession is over because they start to price things in ahead of time Um, so, you know, I mean this is probably one of the reasons why stocks have been so bad recently is because Kind of kind of apparent. That's where we're headed. I think a lot of discretionary spending is going down Um with the fed raising interest rates into a slowing economy. That's not going to help I probably going to do 50 basis points in June and July And then I'm guessing they'll scale it back to 25 basis points as we get into the end of the year I don't know that they're going to stop this year. I could see them going into 2023 But if they do go into 2023, I think they'll stop raising interest rates sometime in 2023 and then they'll be forced to Eventually start to lower them again. I don't think they're going to lower them this year. Um, so I I'm not really envisioning that But I do think I do think we're yeah, like we're we're in a recession. We are um, it'll probably be confirmed in a couple of months, right when Um, when we find, you know, gdp is is negative again and and you know, like the stock market is is is pretty brutal right now and um, What was the second question? What would I do? Yeah, what are you trading? I mean, are you doing any trades right now? So, I mean as far as crypto goes, you know, I think it should be people should be focused on on bitcoin only Uh, and that way it helps protect you from the downside risk of altcoins But still gives you the luxury of experiencing the pump if we if we have a pump back to 40k or something Which could it could easily happen. I mean, we can go we can always go back to under dang it rejected We like getting rejected. So I wouldn't be surprised if it happened. Um, and and I so I would say bitcoin only and um As far as other things, I mean, I think there's some other some other key things like there are, you know, Commodities commodities right now like you have precious metals. You have gold and silver And remember, I mean like I know that they haven't done anything in a long time But they do tend to do well with periods of high inflation After the dollar start stops to route stops rallying. So the dollar's rallying right now So I think gold and silver and some other things like uranium pladium They've kind of stalled out a little bit, but perhaps once the dollar stops, that's when they'll take off And then I mean really I think just cash is king. I don't even think it needs to be that complicated I just think that cash is king and Uh inflation sucks, but losing 50 on altcoins sucks more. So Yeah, no, and not to be funny, but it is we lose a lot and then uh, so What you James I'll I'll get to you because I know like when you were I watched your video and you talked about How important it was to you're investing in a Tesla right now, especially with the potential stock split And then ben just to just to add on to what you had said about about bitcoin You know going all going you know heavier into bitcoin you said on your one of your shows You said it's a cruel mistress because people who get into the market and you know last one was 21 22 the born before that's 2017 Everybody's they don't really realize that bitcoin pumps and then just kind of drops off and they get into alts And they think ah bitcoins it's a it's a boomer coin No one really gets into it it drops off they get into alts and then those crash even even harder So if you're gonna get into bitcoin anytime, this is not financial advice financial opinion The time is right now And just because we're in a recession just remember that there was a lot of successful startups In the the last big recession in 2008 2009. What's up? Venmo group on instagram uber Slack and square they all started it during that massive recession the last one So if you think that there's no opportunities, I think uh, you just had to find them and then James, I'll ask you real quick the same thing. What are your What are your trades right now that you're getting into because it's a kind of a tricky market Yeah, it is and Kind of we knew 2022 would be choppy after 2020 and 2021 that was just wasn't sustainable so I think the key is this year is cash is king. I'm trying to get back to 15% cash Not there yet probably around 10 Maybe 11 depending on the day I am nibbling on things as they fall because I just think like even looking at tesla was like 1140 dollars 40 days ago It's nearly halved in 40 days. So that's that's an example what I spoke about earlier things happen much faster in these markets And the question is do you want to run into that burning building? Is this a Generational buy at this price who knows but I think it's all about pairs at relative pairs relative values Relative market caps mean reversion again identification of winners identifying when things are overbought and oversold So it's an interesting thing I spoke about yesterday in a video was Bitcoin is in this really weird range between like 28k And 31k every time it bounces above 30,500 The whale cell people dump and it's just like clockwork So you need to be able to identify those ranges and play the pairs and also there's some really interesting things happening For people now that most of us probably have some short term capital gains It doesn't matter you can day trade stuff and make fast little wins But if you look at some interesting pairs like eith to bitcoin Sol to eith they have massive Yeah, undulations. I'm trying to say the word in English Schwankungen Swings big swings that you can play as well So everybody needs to start getting sharpening their tools just until of course while we get until we get out of this Sideways job and we go back into a clear bull run And that'll happen first But like for example one thing I did on May 11th I swapped eith for solid Point two one and it went up 18 percent in three or four days So there is still money to be made. You just need to Do a little bit of homework and find it Perfect. Well, yeah, you answer my my my next question Which was What's your what's your first pick of an all to get back in and uh, james? surprise Solana, well, it's not it's again I I hit even mentioning the term the name because It generates so much angst But if you look look at any report out there look at any metric go to massari read the a16z report Look at the chains are most active. I can't remember the exact numbers But you know, look at daily active addresses. Look at daily transactions. Look at growth rates Look at dap development. Look at engineers. Look at all of that stuff all roads lead to one name And I know it's had an outage at a seven hour outage in april 30th At an 18 hour outage in september 2021. We realized that there was a very good Spaces with anatoly about what they're doing to fix The risk of that happening again Yeah, so that'll give people confidence, but again, I remember when I was a kid I was a teenager and there used to be this motorbike called an rd 350 and I was very young I was like 15 years of age and I was riding a bike that had the nickname road death But I I rode that bike because it was fast And you wanted to go fast and at the same time sometimes It's worth taking a little risk for speed. So I know it's a very bad analogy very crude But that's just the way I look at the world. I mean if it works, it works That's all that matters if it works it works and the the website I just showed everybody that was solana status. So I know some people say it's out It's out or slowdowns whatever else you can check that and you can see exactly what it is 99 something percent uptime so anyhow, and then So thanks james ben question again What alt and I'm gonna So we know that we're we're big into bitcoin, right? I don't know if you even consider ethereum and altcoin at this point or use call it a blue chip I think ethereum is going to bleed against bitcoin For the next three to six months If you look at the ethereum bitcoin valuation You will see apart from 2021 every other year starting around the summertime ethereum loses value against bitcoin Going into the end of the year it also happened in 2018 It started once bitcoin put in the lower low and then after bitcoin put in the lower low the following month that really accelerated so No, I mean even ethereum is subject to go down against bitcoin. I don't think it makes sense to get any into anything right now Other than if you're going to get into crypto I think it should be bitcoin and I think that basically every altcoin Is is going to be going down against bitcoin for the most part not all of them But for the most part over the next several months and if you're going to be buying an altcoin, I might suggest us bc Sounds like a plan. There you go And just to clarify for the audience because sometimes people myths interpret things I am not buying i'm swinging between ethereum and solana So that's an important clarification here. I am still stacking bitcoin as I can and tesla as I can and Google when they get very very very cheap despite the news of google and things that are really crazy valuations now There's so much is really oversold And it's like you're pressed to decide on what bargain to buy right now But again cash is king like ben said try hoard as much cash because Again, the next two or three months could still be very very choppy if the fed does something Unexpected markets could dip hard, but they'll rebound fast as well Great segue james. Thanks, man. So this will even my next question The fed rate hikes which we know they're coming up. So there's an upcoming fed meeting june 14th and 15th then july in september middle of that then november december 13th and 14th so These are all coming up and with cpi and ppi numbers being released around the same time frames Usually in the middle of the month Would you rather have j powell go heavy in the next two meetings and get it over with Or you would you just have him like half point us to death? Where would you want to see this go james? I'll start with you since you're up there Yeah, well, he's been very good at telegraphing exactly what he plans to do Because he knows not to rattle markets, but he's been very clear as well They need to solve the inflation problem because that's crushing everybody. It's the silent thief So I think he'll do 50 basis points and depending on the status of the recession another 50 Then maybe stop or do just a 25 basis points But remember Every time they raise their interest rate 25 basis points. They shoot themselves in the foot. They increase their debt burden and You know the gdp per capita is just spinning out in troll. I can't remember But in terms of the us ranked against other main economies the tax to gdp ratio is ranked, you know 32 out of 38 top countries and Each if they raise the rates too much They're going to spin what is already a recession into a financial Armageddon and that's a big problem And the the thing is for everybody to look at the answers there You look at the long-term treasury bond yields And they move typically in the direction of short-term rates But the spread from them tends to shrink as rates rise because longer-term bonds are more sensitive to expectations of future slowing in growth and if you look at the The 30 year now. It's actually dipped. It's gone down and that is kind of like the roof the cap of where they're going So when people say they're going to raise seven times It's not it's not possible the bond bond market knows the answer now Well, we'll see so Then it goes back goes back to you. Would you rather just have them? Half-point us or do you want just to say, you know what just go ahead three quarters of a point one point get it over with Hit the inflation hard. Let it drop and then go from there You know bear markets suck But as long as you recognize Reiner bear market, you can you can plan accordingly So after a bear market comes an accumulation phase before ultimately ideally speaking, right another bull market So do I want them to just get it over with immediately? Not necessarily because if you are trying to stack hash you need time to do so and if if all of a sudden the bottom We're in tomorrow Then you might not be able to stack as much. So I would I would say I would actually prefer it to drag out a little bit longer So that we you know so that everyone can really take the time to recognize if you know I mean because I think most people have come to terms now with the fact that we're in a bear market But you know once you recognize it you still I mean you still generally have time because the trend will continue on for a little while I think it'd be good if people had more time to really prepare for the next accumulation phase slash bull market So I'm fine just watching it watching it sort of slowly play out over over the next few months Yeah, sounds like a plan. All right. Let's wrap this up. This one's a little bit more of a deeper question. So Let's play the last thing we talk about as far as luna on this channel. So Luna How would you handle the aftermath of this Disaster if you were dope on and uh, would you trust another project? From terra labs, then you're up there. I'll start with you So, uh So, I mean I I've never been very uh bullish on that ecosystem I mean I've never made a video on on luna or anything like that and and part of the reason is because I always like I always thought it seemed a little unsustainable and I I don't like going where yields are that high And actually you'll find a lot of yields that are like that even now today and and even a lot higher Like you'll find yields that are much higher than that and in defy And I I tend to stay away from those just because I don't I don't really trust them if they're a lot better than what You'll find in traditional financial markets and they're not sustainable and if they're too high Then they don't even have the luxury of slowly pulling them back down. So would I Would I ever trust? Uh them again. Well, first of all, I didn't really trust it in the first place So I probably would not trust it in the future either I think that I I've seen a lot of altcoins be unable to recover from less severe things So if if altcoins can't recover from less severe things and oftentimes they were unable to recover from things that weren't even their fault You know, it might have been the thought of of something else and and they were just sort of in the in the crossfire Um, I don't think luna will recover Um, it doesn't mean that if they fork it. It doesn't mean that it can't have Occasional pumps, but if you if you go back and look from one cycle to another There's coins that pumped in 2013 that didn't do anything in 2017 And then there's ones that did something in 2017 that didn't do much in 2021 or 2020 And and sometimes they will still bounce, but they won't put in a new all-time high I mean, look at look at litecoin this past cycle It basically just went up to the same high that it went into in 2017 Yeah Look at xrp It didn't even go to the all-time high and then you go it on the list and you'll find so many different coins relics from The last market cycle that did not put in new all-time highs For whatever reason and I look at luna and I say, you know, they have a mountain to climb at this point Trust is completely gone. The best thing that I think can happen The best thing for the for the entire asset class as a whole Is to learn the mistakes from luna and move on and and and eventually just sort of treat it as a relic Not something that's that's going to keep going. I also I also sort of have a problem with You know, I'm just working it, you know and And and some of the voting mechanisms I think aren't really The best but I will say I don't trust it I'm not going to put any any of my money into it. It doesn't mean it can't pump occasionally But it's not something I'm focused on and if I were in the position like if I found myself in the position of Of, you know, their leadership I would probably do the best I could to to compensate people, you know through official means and Um I mean, that's easier said than done, right? But um, I would probably try to do something like that And I would I would not focus on on just spinning off new projects and and that sort of stuff When you still have this other massive thing that you have to deal with like this problem is not going to go away Just because you fork the code so um a lot of issues to solve and honestly I don't even want to spend my time, you know, even thinking about thinking about it As we as we go into the next cycle. Yeah, it's awful. It's awful to think about because all the people lost their money But it's something I think that we should always have in the back of our minds Especially with the hubris and I'll get to that in a second. So james. What do you think here? yeah, well first of all people think uh, I was pumping and chilling This one I made a video about a theoretical model Of how I got very enamored by luna when they said they've become bitcoin backed And that sucked me in the largest position size I ever had for luna was 0.6 of my portfolio and I said Every single video I made I made three videos on luna. I always said it's risky It's a speculative asset and there's always that dpeg risk I always hammered that home and that's reflected in exactly what I told the audience about my portfolio size as well Anyway, back to that what he did he was too arrogant He still has master of stablecoins on his twitter feed for god's sake. Wow He showed all his cards. He made himself a target at tradfi. It's a classic case of tradfi meets dfi or Tradfi meets crypto and you know, the bigger smarter older money will will hose them So I think his biggest problem and it's kind of shocking when you reanalyze this as they had a terrible risk management They should have trust test stress test of the protocol and been aware of the dpeg risk What it would take to take it down and shore up against that and they never ever did that so And he should have also been open and communicated in the face of such a pr disaster So should have mike nova gratz and pantera capital. Everybody was kind of quiet for too long If if the number one rule of a pr disaster you get out in front of it and you talk about it immediately Don't just go run away and hide so nobody will ever trust him again. He's toast and it'll never arise in the ashes Yeah, remember remember guys when when ledger had their data leak Yeah, they kept it quiet they kept it quiet for a long time and that hurt them for over I mean still today So it's it's a good point get out in front of as fast you can make sure that you compensate For what you can do and then try to move on the problem that I see like that for me to trust terra labs Or to trust any kind of stable coin or algorithmic stable coin yet I remember at dope one. This wasn't his first rodeo. He had done another coin before and it failed now Here we are. So that'll be the last time I talk about lune on the show Hopefully we can all move forward and try to remember those things but that is it so gentlemen Thanks so much for coming on the show and answering some pretty Tough questions in a really junk market. Let's take some questions and get out here. It is friday