 Well, there's less said news. My name is Rob and tonight we're going to talk about first of all special nighttime edition Screening right talk about a couple of different things first of all I took a look at chat GPT and I asked it What do we need for crypto mass adoption? And quite honestly? It wasn't a surprise what they said also We'll take a look at Gary and Larry tell us what's needed for mass adoption lastly Security tokens with Swiss company arc down which is about an eight minutes Interview and last we'll just do a quick Q&A. So first things first Chat GPT What is it? Why is it important? Why is everybody talking about it? Why is everybody use it? It's actually quite an interesting process and chat GPT or Genitive pre-trained Transformers AI. It's a chat bot launched by open AI November 2022 very Has been around too long. It's built on top of open AI's GPT 3.5 family of large language models and is fine-tuned with both supervised and Reinforcement learning techniques, which is quite interesting. You ask it any question that you want to there's a link in the description You can find it and it's actually quite interesting how it all just generates the responses But basically what it does is just takes a look at Pre-responses or questions that have been asked before disseminates the information tries to give you a more accurate answer From a vast amount of knowledge of what it pulls and this is what I asked that I said When will crypto go mainstream? Very basic question. I think it's something that we'd all like to know Especially with this incredible bear market. And that's what it said. It says look It's difficult to predict exactly when cryptos will go mainstream as it depends on a variety of factors such as regulatory Developments adoption use of crypto by individual businesses and overall public perception of cryptos And it says this one major factor that could contribute to the mainstream adoption of cryptos is the development of regulatory framework that provide clarity and Guidance for their use look. I've been talking about that forever on this channel and it's not me telling you that It's the AI. It's the bot. It's the information that it has Again as much information as it possibly get it tells exactly what it is to answer that question So again regulatory framework as regulatory bodies around the world continue to explore ways to regulate crypto and where you tech it is possible that they will become more widely accepted and Used and it just goes to show you that, you know, sometimes the things that are the most simple Are the things that are right in front of our face and we can just use so now I know people are gonna say look Rob You understand Regulation we can't regulate crypto. Of course not, right? We can't go in there and say hey, we're gonna shut down Bitcoin Let me talk to CEO your dude. It doesn't work like that however We can take a look at the centralized Exchanges and we can regulate those in some way shape or form maybe not co-mingling of funds Which is what happened with FTX found out something simple like that just to get in there and say hey the funds that were being used Was this something that's That you bought your house with with I don't know Rob from digital asset news and money or maybe the people that Watch digital asset news or may just generalize people in general who Believe in your platform FTX and you co-mingled that money and you used it to Whatever you did with it and now all of a sudden we're missing eight billion dollars Maybe just a little regulation on that front could be pretty good and also on the on the back end of that those are centralized exchanges. I think Just the dynamics of just stating. What is a currency in crypto currencies? Those are not all currencies. Let's be honest What is a commodity? I think Bitcoin is commodity. I think even Gary Gensler for another show who watched all the time Will agree that it's a commodity and once it's security and then how do you separate those two because in all honesty with Ethereum I Mean there's utility there with Ethereum How can you call it a security and investment contract when using it for gas fees and things like that doesn't make much sense It doesn't matter, but I'm just saying give us regulatory clarity and that'll allow other people other institutions to come in That's all I'm saying and I think chat GPT tends to agree with me on top of that. They can see this is what Gary wants and I think this is no surprise anybody. This is a tweet pre-Christmas well a couple days before Christmas Christmas Eve and he states Intel crypto platforms comply with time tested securities laws risk to investors will persist It remains a priority of the SEC to use all our available tools to bring the industry into compliance and Yeah, this is just pretty Standard stuff. I don't see where he's gonna give up here. I don't see why we keep banging our head against the wall And just go from there some pretty good pretty good comments. So pretty good nuggets here in the comment section like Ben's like Says hey, you literally met with Sam Bakeman freed and we're unable to sniff out the biggest forever generation Please tell me what these tools can do for us. They can't do anything The library says we'll give you 20 million dollars You're demanding of us if you reply with a clear explanation I've had a launch of public blockchain in the US This is a serious offer and this is from Tony from thinking cryptos is pretty funny They're like, hey, we want to deal with FTX Celsius and dope Juan from Luna, but gosh darn it Kim Kardashian and XRP and Library we're gonna get you for all the things you do again quite ridiculous But that is just what it is. So that is what Gary wants now. We take a look at What Larry wants we talked about this a couple days ago. This is Larry Fink. He is the CEO Blackrock a small asset manager of ten trillion dollars. This is about 22 seconds. Just take a listen I think this makes a lot of sense. I am I'm you know, look at it We have been part of a huge revolution in investing through ETFs We believe that ETFs will be changing the whole way we invest I Believe the next generation for markets the next generation for securities will be will be tokenization of securities Great. What the heck is that? So to answer that question tokenization of securities And if he's gonna do a public or a private blockchain because he's talking he's putting out there that hey We like to have that I Was reached out by this team from Arcton Arcton they very small company in Switzerland and they're looking to for small businesses and and Raising of funds for said small businesses and they believe in security tokens They've already done this with the Swiss government and EU and things like that the team itself I actually interviewed these guys more than in a second But the first first couple minutes was a little bit off as far as the audio saw this introduced these gentlemen This is Marin Zerengs. He is a carpet market copper capital market lawyer turns out a founder helping companies raise funds and He deals in securities. So it's good to have a lawyer on the team. Also. This is Francesco Viano He is the the blockchain experts background and finance and data analysis Certificate of advanced studies in blockchain able to program and solicit Solidity and last year 21 launched SD Overs blockchain crowdfunding source and these two gentlemen have started up with Arcton And I had they reach out to me and said Rob, you know, we deal a lot in security tokens here in Switzerland Just want to see if you'd like us to talk about I said absolutely So I really understand it so what I'm gonna do is I'm bringing these guys in this is pre-recorded so just take a listen this it's about roughly eight minutes or so and They'll explain to you exactly What they're talking about as far as Ba-ba-ba Security tokens because to me it just didn't make a toll ton of sense. So Security tokens tokenization securities, what are we talking about here? Yeah, so what is a security token? A security token from a technical point of view is exactly the same as any other So you can take like a me as a 20 token and this is actually can be a security token So what is difference between other tokens and security token? It's just like the legal backing of it because a security token is backed by a security Like a stock for a bomb, right? This means for you as an investor you have clearly defined rights throughout the issue You can also bring in before court if it does not abide by the rules And this has some big advantages which were mentioned implicitly mentioned by everything It can take like starting what's the big advantage. So I have taught you like a share of Coca-Cola company. This was gifted to me by my father Like 15 years ago and as you can see the paper and it represents a membership right in the Coca-Cola company Unfortunately, I don't know what I'm still a shareholder of this company whether the share is still valid If I want to send it to you, sell it to you, I would send it via, need to send it via post and If you send me the money back, it's a big risk because if I send the paper first I don't know whether I'll get the money in the future. So these are some of the issues other issues are like I As I said, I don't know whether I'm the owner. The paper might get burned might get destroyed might get lost so in reality a lot of mistakes happen with that and This is basically how our current security system works. So it's very slow in efficient And also super expensive and here I would say like Organization can bring a lot of value because you know, you can sell it 24-7 to anyone in the world It's transparent. I always know whether I own it or not So these are some of the advantages which you have which can bring to organization And this was also what Larry think mention although I assume that he would talk about like permission blockchains and in my opinion They don't bring that much value because you don't have this transparency You don't have like the key ownership, which is always established I would say often you need some trust and then you have the whole financial infrastructure Which is so expensive. So you take a lot of the advantage away Yeah, I can see that and we talked about this before I think of course If he's gonna talk about he says what we want to do a private one So now if we're gonna talk about trust So it's gonna be him and Jamie Diamond and a couple different people Different big players and the banks and the finance industry like do they really trust each other enough just to do it? Permissionless or permissioned in a in a closed-down environment I don't know if if that is the actual benefit of blockchain I'll think it is but apparently that's what they're gonna try it there might try to do Hopefully it'll be a fool's errand as time goes on. They'll say maybe this isn't good Maybe we'll start try to put this on a layer of one solution and then go from there. Okay So Marin's thanks so much for for bringing it down. What is the security tokens? What are the advantages all that stuff now? Let's talk about what are the disadvantages? So if we're gonna talk about a token or a tokenization of assets or just a security token in general What's the disadvantages and Francesco? This would be a question for you since you guys since you wrote a paper on this not too long ago Yeah, sure. So What we see what the regulator of course the disadvantage of having a security token is that There is regulation behind it and you have to comply with that We have to comply with the law So these these regulation came after the ICO craze that we all know that the many of the project where scams where where a lot of Investors get lost their money and this regulation came into force actually Just after that in Switzerland. We have a one of the first country to have that very Clear and ruled out and this comes For and this is one of the disadvantage in the sense that we have to comply with all these law Which actually ensures and protect investors But of course it makes a bit more complicated than just issue a utility token You have to comply with all the security laws You also have to comply with security laws in different countries if you want to issue the security into other countries You have to comply with those law laws as well So another disadvantage is that utility token though the utility issue or utility token Don't bear that much responsibility while on the technological side While if you're doing it with a security token actually, there is a there is a bit more of liability and Responsibility on the issuer side. So I will say that to to summarize So comply with the regulation. This is like this disadvantage and it is expensive as well Of course, it takes it's more expensive to issue a security token that just a utility token and on the technological side It's the issuers bears a bit more liability Gotcha, you know it to me like and before we go on I'll say it makes it makes sense to this one Yes, it's gonna suck because we're gonna have to bend the knee a little bit just to say, okay We're all gonna be securities We're all gonna have to go out and go over there every product and say now we have to register with the SEC I see it as as a as a positive in one way and that is that we have over five thousand different crypto projects And most of them are worthless So if they have to all say well, we're gonna be a security took and we all have to go this way Now it's gonna be it's expensive to do so, right? We have to go before the SEC with to hire the lawyers We have to get everything in place for them to do that. It's gonna be very difficult What will happen? Well, just like we have in different parts of the business world. They start to consolidate They can't make it bigger projects eat up the smaller projects and those products become bigger because there's a shortage of really good blockchain developers Apparently so I can see it in one way. It's an advantage disadvantage like we said, Francesco I totally understand which makes me to our last question Does it make sense for some current crypto products to go this route? And I don't want to get into the the Discussion because Marin's will probably run rings around me about about what will be considered an investment contract a utility and a security And what could be not but just we'll start with Francesco again We'll end up with Marin's but would it make sense for some current products to go this round say fine or a security? Let's do this Yeah Yeah, exactly. I would argue that it could make totally sense if you're a crypto project and you want to go through our Traditional fundraising process then why not to in a security token tokenize your shares and Ishrine to your your community your investors and go directly that way that could be one potential application Another another another reason why it will make sense. It's like avoiding legal uncertainty You could go directly for our for a security without avoiding all these legal troubles that could arise potentially Whether is a ST or an ICU or ICO For instance, we have seen an example here in Switzerland. We're actually there is a project who has actually converted is Utility token into security tokens. It's called modem is a startup between Zurich More oriented in the the pharma side, but they did exactly this they converted their utility token into securities Interesting interesting. All right, so then Marin's what do we got here? Would it make sense same thing for you for current price to go this router? You think now just leave them the same way they are No, I think it makes a lot of sense the crypto projects to you to issue security tokens Because at the moment, I mean the market is just a very huge if you think about it like all the crypto the total market cap for Projects maybe one trillion US dollar and see a very restricted to that market But if you issue security token you can also access all kind of investors currently invest into securities and This market is 400 trillion US dollar So there's just much bigger market if you wish issue security tokens than the current status quo Interesting that'll be it. All right. Well gentlemen, I want to say thanks again for stopping by I had a I had these questions about security tokens and of course some of those questions were answered We'll head you back at some point, but thanks so much for coming on the show Great that's it so again I want to say thank you to Marin's and Francesco for coming on the show and explaining to us what security tokens are they make a lot of sense to me in the very beginning but Kind of understanding exactly where it is and that will conclude it for tonight's late night live stream So if you like the video give it a thumbs up consider subscribing all that good stuff now If you want to stick around I'll answer all your running questions to the best of my abilities We go over a little Q&A if you can't stick around and stick around see you later. Thanks for stopping by appreciate you now Let's get into the cues so