 Looking at digital asset news that could top stories in crypto, current digital assets, and break them down into bite-sized pieces. Today, we've got some pretty good stuff which is amazing on a Sunday. First up, banks must establish infrastructure for digital assets before it's too late. This is a very well-written article, but there's three criteria and why it's all going to lead to banks collapsing. Also, the SEC issues no action letter in response to digital asset securities questions. What this means is it's a hands-off approach to securities and what is this going to mean for the overall cryptocurrency asset market? I think it'll be huge also. In one of the most depressing stories of the day, KuCoin's hack drags ocean protocol and uniswap into the mud. So we're going to go over what's happening exactly with ocean, how it's being dragged down, and how uniswap could be in the eyes of the regulators starting very soon. We'll go over all of that in Q and C of the day at the very end. But first, let's jump into the market. So what is going on? So today, Sunday's 10 or 27th, everything's going good. Not a bad start. What do we got? Bitcoin as at 10, 7, down 0.1%, down 3% for the week. But hey, you know what? I thought I was going to dip below 10. And here we are at 10, 7, so I'm pretty happy about that. Ethereum's keeping that line above 350. Fantastic job, Ethereum. Tether's tether with a market cap of 15 billion. Nobody cares. XRP, also the second stablecoin. I'm just kidding. I always call it stablecoins. Not, but it's crazy that you'll have good news about Ripple. You have good news about a partnership. You know, someone's using XRP and the price just stays the same. Unbelievable. Then you have something like, you know, tomato coin. Somebody picks it up off the ground and says it's really shiny and it goes up 10%. It's just that's cryptocurrency. What can you do? Bitcoin cash up 2.1%. And again, there might be some big news on the hard fork coming up in November. Well, not really news. I think it's, I know it's going to happen. So maybe there might be more tokens on the horizon. And hey, who knows? Bitcoin cash and XRP, only 6 billion separates them. Now I'm just kidding. They won't flip. Chainlink of 4%. Fantastic. 10.71. I like to see that. And then what else is big? Cardano up 8%. Bitcoin SV, I still don't know why it's in the top 10. I have no clue. Simone, please help me out on that one. Monero up 4%. Great. What are some other big losers or gainers? Yurn up 3% at 30,000. Yeah, just like 20,000 not too many days ago. Unbelievable. And nothing really too fantastic. Just kind of in between that one and 5% area either up or down, mostly down a little bit of a red, but it is Sunday. That's normal. That's par for the course. Interesting stuff. But let's jump into the real big stories. First up, this was so well written. I have to ask the question, who wrote this? And the title was Banks must establish infrastructure for digital assets before it's too late. And let's just scroll all the way down and find out who the heck this is. So this is actually two people, Gunnar Harv, Jarv. I know I didn't say that right. And Glenn Wu, I think I nailed that one. So Gunnar is a chief operating officer of First Digital Trust, Hong Kong's technology-driven financial institution, blah, blah, blah. Prior to joining First Digital Trust, Gunnar founded several tech startups, including Hong Kong-based Peak Digital. And Gunnar, managing director of APAC at Ledger, an industry leader in developing security infrastructure solutions for cryptos and blockchain applications. Extends a career in financial services, technology, industry, work for S&P global markets. So these two guys looks like it was worked together and it's really great. And let's just jump into it. The big stuff is this is a big takeaway that I took from the whole thing, which was banks will fail. And the only way that they can bail themselves out is to partner up with the new systems that are coming about whatever cryptocurrencies or assets they can get their grubby little hands on, because if they do it from scratch, they're going to fail just like Blockbuster. Anyhow, what's going on here? So the office of the Comptroller of the Currency, or OCC, officially announced that all nationally chartered banks in the US can provide custody services for a cryptocurrency. This was like a month or two back and everybody was super excited about that. And you know, we're like, oh, this is going to be great. And they're going to do it. But there was a great article. This is how I got in touch with Alex Maschioli. And he said, hold your horses. That's not going to happen. Banks aren't known for innovation. And he was totally right. They haven't done anything. And here we are what a couple of months later. So hey, what are you going to do? July 29? Yeah, about a couple months. So a big question or one of the big questions that these banks are asking is, hey, where are these newly acquired digital assets going to be stored? How do we do that? Because we can't just put like money in a vault. We can't put gold in the vault. Not that they do that anyhow, I might add, because most of the time, it's like they have 1% of their total cash flow in the actual bank. And most of it's just zeros and ones on a digital ledger. They have no money. If you went into the bank right now, or let's just say 5% of people went to their local branch and said, I want all my money back. They wouldn't be able to do it. They're like, sorry, sir, man, we don't keep money here. We're just a bank. So anyhow, that's one of their problems. So where are they going to store these digital assets? Because they have no idea. According to financial action task forces yearly report, the industry, let me move this, the industry's lack of infrastructure is limiting compliance and safe storage of assets. As traditional financial markets begin to embrace the space, they must develop robust, tailored technology solutions with the strength of a legacy system. So let me just back up. What they're saying here is that they have to pretty much go from scratch. They have to build this from the ground floor up. And later they'll talk about partnerships. And they need to do all this and innovate because they're banks. I read this and I almost snorted because I was laughing. And it just comes out of the fact of they won't. And that's why they're going to be left behind. I don't dislike, I don't, hold on, I'll be honest with you, I do dislike banks. I dislike some banks, especially my banks, because I've always talked about them. My personal banks are awesome. USA, my business banks suck, and they got a lot of problems, there's a lot of fees, and I just don't like them. But besides that, I mean, the people that work in banks, I like the people, people are good, just that the banks themselves, they're just bloated and they're archaic and they need to go. And they're going to be left behind. So the thing is that they're not going to innovate, just like Blockbuster. Does anybody remember Blockbuster streaming? Neither do I. But guess what? It did happen. And I had to look it up and Blockbuster streaming came about because they were trying to compete with Netflix and they said, oh, we can do that. We're a huge corporation. And guess what? They failed because Netflix was nimble and they were young and they could make all these different decisions and just move in different directions that the normal Blockbuster worldwide corporation could not do because they were just bloated top heavy. And that's exactly what's going on here. That's how I think is going to happen with all industries. You're going to see a bunch of disruptors come up because they can do all these things because they don't have upper middle management weighing them down. And that's just unfortunately how innovation really takes root. So moving down, I'm not going to go over the whole thing. I mean, it was very interesting. I'm going to link it to the description of this video, but I'll just give you the highlights. The future of finance is moving fast. And if banks don't incorporate the correct protective and regulatory mechanisms, assets are at great risk. So meaning if they don't do this right from the ground up, they're going to lose a lot of money, a lot of your money. And I just said, I'm like, they're not going to do that. They're going to fail because they're too big to succeed, just like what I talked about. Blockbuster is an obvious example, but here's another great example that I found that I've been using this actually a couple of times. And this is, it's a great one from Data is Beautiful. And they just talk about how the different browsers that came about, if you notice Internet Explorer around 2001, remember all the way back then, it had 92% market share or 92% of people were using Internet Explorer because it was the go-to. And you know who makes Internet Explorer? Microsoft. And they were huge. They were a billion dollar company and all these doofy, mosaic, opera, Netscape. I mean, they tried to compete Netscape, but actually had the market share at the beginning, but Microsoft said, we're going to crush you. And then they're going to, they probably thought themselves, we're going to stay on top. We'll watch this. Here's this thing called Firefox out of nowhere. And just comes up and Safari, but who uses Safari? Only people with Macs. And it just started to gain and gain and gain. I'm not going to bore you to death, but I'm going to fast forward to a minute and 15. This is 2005, I might add. And watch what happens. So Firefox is getting traction. Internet Explorer, why is it? There's a thing called Chrome. What's Chrome? No one knows. Just some goofy Google something or other. And all of a sudden there's just these guys who work out of a, out of their garage. They start crushing everybody. And here they are. And Chrome starts to take over. Google takes over and Google is what it is right now. Just like banks, banks are the same type of thing. And they're like, you know what, we're going to crush everybody because we have all the money and all the people and whatever else, but guess what? You can't innovate. You can't move fast enough. You're not nimble. And that's just how it is. All right. I'll step off my soapbox for a second and scroll down. So they state we foresee a parallel system running which players will use infrastructure that works significantly different from traditional payments, networks or settlement flows. And it's all going to come down to can they innovate, can they catch up? And I don't think so, but I could be wrong. Let me know what you think in the comment section. Let's finish this up. So it states if banks move too quickly to capitalize on the booming space, and I'm sure it's very tempting because if you're a bank, you're like, wow, this is a, this could be the next trillion dollar industry. We need to get on top of this. Should we do it right? Well, we'll try, but who knows where the banks. So like I say here, I mean, they are the ones that created, I mean, pretty much the AML and KYC know your customer and anti-money laundering. And we just had a story last week where there was over $2 trillion money laundered. So they can't even, you know, keep in, keep in line with their own infrastructure that they built themselves. They came to stop money laundering. So I said, what makes you think they'll put the customer first? They've got to make profits. I just don't think it's going to work out. So lastly, bank center and crypto custody will need tried and true crypto asset technology developed specifically for the industry and will inevitably face the build versus buy decision. So really, if you're a pretty big company, you're like, we don't have the time to do all this stuff. We just want to pay somebody to do it. And that's, I think, their only option. I don't think they're going to build it from the ground up. I know JP Morgan's trying to do that, but again, same type of thing. I don't think that nimble. I think they have middle management, top management heavy. And to make all decisions and move as fast as they need to, they're going to lose out. So they should just buy it from the ground, from somebody else. The implementation process is not easy nor is it cheap. They cannot cut corners. Banks will need to develop a team to research and make recommendations, seek approvals, build a team, test prototype technology and conduct regular cybersecurity assessments. So why would they do it themselves? Just buy it from somebody else. And I know everybody right now probably has their own idea of what that cryptocurrency could be for the banks. And sure, I mean, it could be a number of them. And I don't care what it is, I just want it to be one of them because I'm the biggest cheerleader for all the cryptocurrency. I for the most part, I make fun of XRP because it's a love-hate relationship I have. I'll be honest. But look, when the water rushes in, all the ships rise, I think if what's good for one is good for all. And if we can get a couple of different cryptocurrencies at banks like this is our whatever, we want to use this one. Sure, I'm happy, I'm cheerleading, I'm ecstatic. And then lastly, it states this in itself can take years. And if you've been in the space at any length of time, if you're talking about years, what just happened with Define last month? So good luck catching up. And then I just have a little story about Steve Jobs and Bill Gates developed the QA to revolution their garages. And then IBM, they could have crushed everybody. They had so much money back in the 80s. But Bill Gates said, hey, I wrote the EOS and I'm going to license it to you. So you want to pay me or you want to build your own team to do it? Because I got it right here and like, sure. And look how that worked out for Gates. So my final thoughts are this, crack and financial services. They just got a banking license in Wyoming. They are in exchange. I use them. I recommend them. They will be the new beacon of light example for what I believe banks to emulate. And I think they're going to go to them like, how do we do this? What's going on? I think that banking license for cracking is going to push them above all the other exchanges. Just my thoughts. Let me know what you think in the comment section. Let's move on. This one I'm going to go over pretty quickly. It looks like a big thing and it could be, but we'll see. So SEC issues no action letter in response to digital assets securities question. This no action letter was by the SEC. It focuses on a specific approach to handle trades on an ATS. ATS is an alternative transaction system, namely a so-called three step approach. And we'll go over that a bit. Digital securities in this context refer to securities that are held and exchanged via a distributed ledger system. This is ledger technology, DLT and all that good stuff. So the letter itself looks like this. This was a draft on September 25th. And here's the letter itself. So they were talking about a four step approach where they would, you know, the archaic one like, okay, you're going to use this alternative trading system. ATS will match the order. ATS notifies the buyer and seller. Then the buyer and seller sells the transaction bilaterally either directly with each other or by instructing their respective custodians to settle. And this one is just a three step approach. Kind of the same thing, but they're not going to do it between themselves, just their custodians. And the SEC said, Hey, we're going to do hands off as far as securities go, which is great. I mean, there was a big issue with, you know, the SEC going, Hey, we're going to clamp down on these securities and whatnot. But here we are. So this just frees up regulation, which is pretty amazing. And even Brian Brooks from OCC says hats off today, the Securities and Exchange Commissions issued a no action letter authorizing, authorizing crypto security tokens to trade on registered exchanges. Good day for investor protection and emerging asset class. So the thing that came as to my mind, first of all, is that is the ripple lawsuit that's going on right now is XRP and actual security. My question is then is, will this play a big role into that? Will it even make a difference? I don't think XRP wants to be a security, but if it is, I mean, here we are with what just happened right now. Anyhow, let me know what your thoughts are. It's a wide open discussion. And let's move on to our last story. This one I'm just going to tell you right now, a little depressing. So Kucoin got hacked. I think we've been reporting on that, you know, a couple of days ago, but it goes deeper. And it's going to be, I think it's going to be far reaching. So Singapore based crypto exchange Kucoin suffered massive attack on 25th of September. That was two days ago, right? It's 27th of that. Yes. In which the hackers, they took 150 million worth of digital assets such as Bitcoin, Ethereum and others. And these days, I think we're getting so jaded, we're like, Oh, another hack, no big deal. But it is a big deal. I mean, these exchanges, that's the whole reason for an exchange to actually exist is to make sure that your funds are protected. And even if they have insurance to cover all these things, it's still can tank the market and then you lose money indirectly. So they need to be a little bit more careful with what they're doing. And this is why, you know, decentralized exchanges are good, or are they, and I'm going to get that in a second. So, but it wasn't until the early hours of Sunday that the hackers started to move a large amount of ETH as well as ERC-20 tokens shortly thereafter, Ocean Protocol, notify the community members that are on Jesus 21 million ocean, which is worth 8.6 million was among the stolen funds. This was followed by the platform, the AMN platform, pausing ocean contracts. So they were able to, this decentralized organization was able to pause the ocean contracts. Interesting to know if you can do that, but it's really decentralized. We'll see. This incident caused a decline of 5% with last 24 hours and dragged the tokens price to 36 cents. That's what I'm talking about. They keep going down because of all these different hacks. This should not happen. You shouldn't have to lose money because of an exchange that you trust or P or an exchange that you don't even trust. That's their whole job is to make sure that it's actually safe. Finishing up, Suzu, I hope I said that right. The CEO of three are a capital question, how freely these decentralized platforms were able to pause contracts? What we just talked about. His tweet read, so it seems as a time to talk about decentralizing all the things and another time to pause contracts because of a small amount of supply getting hacked. If central actors can freely pause contracts, they also could be forced to do so by regulators and their jurisdictions. That's very true. They just come down, sure as it, you know, regulars come down and go, shut it all down. Well, we only got 96% power. Fine. Shut that part down and off you go. And then here's the bad news. So on top of all the other bad news, Q coin hacker, hacker started leveraging the Dex platform, Uniswap to swap from altcoins to ETH. This was revealed by alone gal, the chief technology officer of cyber crime firm Hudson Rock who tweeted, Q coins hacker begins laundering 150 million. Wow. He started swapping his ocean for ETH via Uniswap. Pretty easy place to do that because you go to the other exchanges, they're just like how Binance did it. They shut down a hacker who was transferring all the funds because they are essentialized exchange with Uniswap. You don't have that issue. He already dragged the price down by 4% in less than an hour. It doesn't seem to be slowing down due to low liquidity for this token. He's going to crash it hard. Let's find out. Let's see what it is. I don't even know. Well, still at 37 cents. So not too bad, but we'll see exactly how far down it goes. But that's awful. Finishing up while the latest incident did not have much impact on the crypto market in general, but if the swapping continues, Dex giant Uniswap could likely come under the scanner of the regulators because essentially what's going on is they're stealing money and they're using that to essentially launder out money and get crypto currencies. I know it's a loose association. I shouldn't say launder, but let's call a spade a spade. People steal your money. They go someplace else. The exchange of something else, launder. So let me know what your thoughts are on that. I see some problems on the horizon. I see some problems on the horizon, but there is a lot of different resolutions and some people will actually say this is a good thing and it's a mentality. I had done a post on another hack and somebody had said, hackers are good. Hackers are good for this entire industry. And I was like, how the heck is that impossible? And they said something along the lines like, well, if there's no hackers will never uncover all the different holes in the protocol, different things need to be short up. So yes, you're going to lose some money now, but in the long run, it's better because you're going to be able to fix it. I see the reasoning behind it, but that try telling that to all the people who lost the money and like the Mt. Gox, you know, these days, these exchanges have insurance. They can they can cover it and they take the hit, but I don't know. It just seems like a very odd thing. And then if you, if you take that same type of mentality, same thing happens here. Well, it's a bad thing, but it's going to improve the exchanges for security. I got to tell you, I got to tell you that it seems like there's a bunch of hacks and it still keeps happening. So I don't know if they're going to get any better or not. I don't know what the resolution is. That's for somebody smarter than me. I'll just say that. And yeah, let's leave that and go into Q of the day. So let's jump in the office. Hello, everybody. Welcome back to Q of the day. It is Sunday. It is 11 o'clock a.m. Texas time. Everything's right in the world. So we've got a Q of the day, which is a pretty good question about dollar inflation and the C of the day, which is correction of the day, which I have to go over just one thing. So we're doing pretty good as far as not making too many colossal errors. But every so often I do a stumble. So I just make me to correct myself and just say, hey, I made a mistake and I'll correct that. So for Q of the day, this comes to us from John. And John says, hello, Dan. I enjoy the podcast. Thanks, John. I appreciate it. Help me wrap my brain around something. If I have this wrong, by pegging stable coins to any fiat or dollar or whatever fiat cash, won't we still suffer from inflation, deflation, hyperinflation? By pegging any coin to the dollar as an inflates, doesn't that have an impact on the coin tied to it? And it's a good question. And so it's one of those things that people say like, you know, because we're always looking at the actual market and saying, oh, well, you know, Bitcoin's going up and down. And the value of it is, you know, going from 10,700 to 10,900. And then it goes on 10,000. So we're always thinking about it, it actually fluctuates. So with stable coins, it's not like that because it is pegged to the dollar. It's always going to be around a dollar. Like, you know, sometimes there's like 99 cents, sometimes it's a dollar or once, maybe that is the confusion. But it really goes down to the actual strength of the dollar. So if you have Tether or USDC or whatever else, any kind of stable coin else that you have, it is pegged to that dollar. So the dollar strength that goes up, that goes up, this dollar strength goes down, it goes down. And this is one of those things where people, they get confused about the actual dollar. So like, oh, well, you know, the dollar isn't worth as much. So instead of a dollar being a dollar, now it's 90 cents. It's not really how it works. Actually, there is this, this, this great image that I've used a couple of times. I'm going to use it again, because I like to reuse stuff, like throw things away when it's good, good info. And it talks about the purchasing power of the US dollar from 1913 to 2013. And I, I would hate to see what the purchasing power is in 2020. Jeez, that would be an awful one. So as we can see right here, 1913, the Federal Reserve is created, and a dollar was worth a dollar. Everything was good and right in the world. Everybody was happy. And this is when you get your grandparents going, you know, I could have bought a car for a nickel or whatever else. And, you know, maybe they could have, because you know, the dollar was worth so much back then. I mean, I'm just kidding, it was not worth a dollar. But, but you can see as time went on, it just kind of collapsed. And that's around 1920, 1918. And then of course, in 1933, FDR's executive order makes it illegal to hold coins, bouillons or certificates. So I went a little up a little bit. And then, of course, then it started to go down 1944, Bretton Woods established the USD as the world's reserve currency. And he would think, okay, well, you know, the world's reserve currency, so the purchasing power should go up. No, not at all, because Federal Reserve is there to bombard the day and just start printing cash all over the place. And of course, 1971, Nixon closes the gold window, modern day fiat currency system only. So the dollar, of course, is not backed by anything. It's just the faith and trust of the US governments, which, you know, who doesn't want to trust the US government. So we have that, and if it's not backed the gold, that's a big thing. And now in 2013, a dollar that you could have had 1913 in 100 years was now, it's now worth a nickel. So here is the problem with the dollar losing its purchasing power and all the Federal Reserve actually printing money, because the Federal Reserve prints money, which they did, you know, I think two, three trillion, something like that, you know, just a little bit. It doesn't go to me and you first, right? It doesn't like it. It starts getting printed off of them. Here you go. Usually it goes to these big players, these big institutions, the big banks, and then usually a large chunk of that money goes to large corporations, conglomerates, and whatever else. So they have all this money. And it hasn't really disseminated throughout the whole economy. So hey, they haven't flooded the actual markets or, you know, the economy itself with just dollar bills. So their purchasing power is pretty much on point until they start to inject that into the market by buying whatever they buy. You know, they buy back their stocks, they buy back more assets, or they buy assets, or they buy, you know, whatever they buy. And then it goes down to like people, you know, like you and me, who just get the scraps and we're like, Hey, thanks. And of course, the dollar comes to us and we're like, Hey, this is now worth three cents. What the heck happened? So as you print more money, this is the problem. So the original question is, it's pegged to be stable coins. So one to one. So it's not going to like you're gonna see like 90 cents, 80 cents, 70 cents. What it's just going to be is that your stable coin, it's stable. Just the purchasing power sucks. And that's really what happens. So that's all, that's all for that one. So hopefully, John, thanks for that good question. I really appreciate it. And then let's go on to the sea of the day. Now what do you think? So correction of the day, there was a post that I put out. It was about Alex Maschioli. I'm always talking about on the show, because he is, you know, traditional finance. And now he's got into cryptocurrency assets. And he's got his pulse on like, pretty much what you would call whales and big players in the institution on top of all the big names in cryptocurrency that he gets on his show. And he had a segment where it was talking about his Cardano chain link, theta is about to explode. And then here's some, you know, they do a bunch of technical analysis, which I must tell you puts me asleep. But I mean, for some of you TA people, I know you guys love it and gals, which there's not the many gals on my show. I will all just say that because that's just the demographics. But when he's doing TA, it was a lot of good information. And Monty, one of the guys from Market Rebellion, he had called chain link at like, this is when it was like $16, $17, $18 somewhere on there. And he's like, it's going to 1050. And I was like, this kid is going to start. And then of course, it went to 1050. And now he's calling for it to actually, you know, run up up to a margin of 25%. And it looks pretty good. They also talk about, like I said, Cardano and chain link, everything else, and the different we're talking about as far as banks and stablecoins. So it was actually all good news. And what I wrote was bad news, if you're a holder, check the data. And I put that on Friday. And while I was trying to rush and get things done to trying to put out, I was trying to put out the video. I was trying to, you know, push this information out, trying to line up my show next week. And I'm helping homeschool my grandson. So it's like everything is, everything's on it once. Oh, on top of the other businesses, you know, for like my Amazon sports facility and stuff like that. I'm like, okay, let's get this done. And I just got discombobulated. And I put in bad news if you're a holder. So it should be good news. So I corrected that. And then I've, and everybody who, and I will tell you this, thanks so much for letting me know that I screwed up. Because without you, I wouldn't have known I screwed up. So thanks. So what I did was I just wrote it back to everybody said, Hey, that's my fault. And I changed the title. So that was a sea of the day. Sorry about that. And I mean, regardless, though, I mean, it was still, it's still good information. Like if it's bad news, and they talk about the market's going to crash, then maybe you want to start to, you know, take some of your funds out. I'm not that way. I just invest. I don't believe in care. But, you know, that was the case. Sure. Now that it's good news, you know, maybe you look at that and go, Oh, well, you know, maybe I can plan for to take profits or maybe I want to increase my position another five or 10% because it looks like things might go up. That's all up to you. But yeah, sorry about that one. We'll see you the day, a little error, but hey, no one's perfect. All right. So that's it for for that segment. Let's jump back. All right. Hope to answer everybody's question on that one is a pretty good question. I like that one. A lot of history behind that as well. So that's it for today's video. If you need an alternative to Coinbase or Kucoin, then definitely take a look at the exchange and wallet fees spreadsheet. There is a link in every one of my videos in the description to look something like this. And what it does is it breaks down all different exchanges and wallets and decentralized exchange that I've ever used or am currently using. And if I recommend them or not, based on different criteria, and I talk about all the different fee charts and if you're going to get any kind of interest rate just for just for sticking them around or any or any kind of fee for taking them off and swapping air, all that stuff. And I just give you like, you know, just a breakdown of what I've what I've got and what I don't recommend. Eat Toro, don't recommend them. And lastly, I have a one, two, I guess one, two, three punch, as I call it now, Celsius Voyager and Kraken. There is no perfect exchange. Let me just say that Voyager's got its issues. Celsius has a little bit of issue Kraken has a little bit of issue. But it's the ones I use the most and I recommend you can you can go right to Kraken, right to Celsius, right to Gemini, what doesn't matter, you can go right there. But if you use my affiliate links, you can get between 10 and 25 bucks if you sign up. And that's the big thing. So thanks for sticking around. I really appreciate it. And I'll see you on the next one.