7 Burst results for "Winkle Vi"

"winkle vi" Discussed on Squawk Pod

Squawk Pod

08:18 min | 2 weeks ago

"winkle vi" Discussed on Squawk Pod

"8. Yeah. It's really good. Cheese will be next. Coming up on squawk pod, $900 million in customer crypto, and the latest long effects of the FTX meltdown. We're talking more about the SEC's new charges against crypto firms, with former chief of the SEC's enforcement branch, Lisa braganza. When you're dealing with these sums of money and its customer money, I would think the wingle by twins had a little bit more obligation to dig deeper gearheads know that some projects need so many parts it feels like you need a whole storage unit just to store them. That's what eBay motors 122 million parts are for. Think of it as your virtual parts garage. They've always got the right fitment at the right prices. Use the eBay motors app or visit eBay motors dot com. Let's ride. CNBC pro is your ultimate investing playbook with exclusive stock tips and picks. Get CNBC pro now at a special introductory rate three months for 79.99, go to CNBC dot com slash join pro that CNBC dot com slash join pro. This is squawk pod. Up and enter, Q good morning and welcome back to squawk box right here on CNBC live at the NASDAQ market site in Times Square means where I was Sorkin along with Becky quick and Joe kernan. DSC is charged crypto firms genesis capital and Gemini for selling unregistered securities to investors. Joining us now with what it means to the already battered crypto market though, by the way, maybe not so bad than just the past what week and a half here. Bragging as sorry, my mispronouncing this. Chief enforcement. Division. Thank you. Of the Chicago SEC, Lisa, why was this something that you think just happened now and not earlier? Because this was a public event, meaning people knew that this product earned existed, it was advertised, and it's taken quite some time for this to happen. Right. That is an interesting question. The SEC has known about this product for a long time. We understand based on a tweet today or late last night. From Tyler winklevoss of Gemini, we know that Gemini had been under investigation for this product for quite some time. More than a year. And yet this, you know, the SEC allowed this to continue for the period of time. They were in talks with Gemini. And then the crash happened in November. Because of FTX, Gemini was no longer paying any funds to customers. And two more months went by. So it seems to me that the bigger issue, the thing that triggered this was the answer that Gemini filed in a separate case in a class action against Gemini. Brought based on behalf of Gemini customers for the failure to continue payments under the Gemini earned products. But I guess the bigger question is, here we have a situation where all of these customers are now in trouble. They don't have access to their money. The entire point of the SEC is to protect the public from instances like this. This was something that the company knew was happening because they were under investigation, something that the SEC knew they were working on because they were investigating, and yet we got to this place. That is an interesting question. The FCC has been clear for years that something like this earned program is a security. So it's puzzling why they didn't come to a resolution of this a long time ago. Months and months ago. Right. So who do you blame though in this? Do you blame the SEC for not coming to a conclusion? Do you blame the winkle vi twins for offering the product, if you will, to their customers? Do you blame Barry silbert for offering this product to the winkle vie and their customers? I mean, how does it how does it line up in your mind? Well, there's a lot of blame to go around. I think very silver, it sounds like it has a lot of responsibility for this. But the winklevoss twins also seem to have just relied on Barry silbert providing from the parent company to genesis a guarantee or a promissory note. And they didn't inquire into what that looked like further. So basically genesis has been operating in a non solvent way since around June of 2022. And the twins say, well, we got an assurance from genesis that they were solvent. I'm not sure that that assurance that they got in the form that they got in was adequate. And when you're dealing with these sums of money and its customer money, I would think the winkle vi twins had a little bit more obligation to dig deeper to see what's really going on in the liability lie on the let's talk two issues. There's going to be civil liability, and that's all this is right now. It would be a civil case by the SEC, but also obviously there are customers who are suing class actions and the like. And by the way, there's also been accusations that the winklevoss have broadsided against the Barry silbert of the world to suggest that there's been commingling and the like, which is a serious accusation because all of a sudden then you get into the other F word, which is fraud. Right. So, but I wouldn't minimize the SEC's civil charges. Their civil enforcement charges, and the SEC is seeking an injunction, which sounds like it's fairly innocuous. You have to comply with federal securities laws with respect to unregistered offerings and registered offerings. But that can be a death sentence for a business like Gemini. And certainly genesis too. So they're seeking a lot of the same type of relief that they would get if they weren't charging fraud, but they don't have to charge fraud. They're charging a sort of strict liability violation. So it's going to be a lay down, but they get the advantage now of getting possibly an injunction and disgorgement, which means give back every penny that's connected to the Gemini, earn program. That's a lot of money. And then penalties. So that's where the SEC is going. I wouldn't minimize that at all. It's a fascinating case. We're going to keep our eyes on it. We hope to talk to you more about it in the future. Thanks. Thanks. Next up on squawk pod with the GOP House majority means for business. We're talking debt ceiling, the next Republican presidential candidate and so much more. With former House majority leader, Eric Cantor. You won't see this continuing skyrocketing and spending. You won't see any discussion of any kind of tax raises. What you will see is I think an effort underway in the house to provide some oversight to a hyper regulatory mode against business. It takes a lot of ingredients to fix or build a car. Like cooking, but without the frozen dinner, easy way out. eBay motors has a 122 million parts. It's always the right fitness. So you can follow any recipe to a T, whether it's a vintage Italian coupe that's classic like grandma's meatballs or a German luxury car that's as complicated as almost roulade to cook up something great in the garage, use the eBay motors app. Or visit eBay motors dot com. Let's ride.

eBay motors SEC CNBC Gemini Barry silbert crypto firms Lisa braganza Becky quick Joe kernan genesis capital Tyler winklevoss genesis Sorkin winklevoss twins DSC Times Square winklevoss Lisa Chicago
"winkle vi" Discussed on Bloomberg Radio New York

Bloomberg Radio New York

05:43 min | 3 weeks ago

"winkle vi" Discussed on Bloomberg Radio New York

"The really rationale behind that, which I think you're hearing across the street is number one, concerns about earnings estimates that need for those to come down and then secondly, just the persistency of inflation. The big data point of the week that comes out with the employment report, we get that tomorrow, Tesla, most actively traded that is down just about 5% Apple shares down two tenths of a percent right now. Overall, in the index, the S&P 500 forty six points lower, that's down 1.2%, the dungeons of industrial average 400 points lower down 1.2% and the NASDAQ 101 154 points lower down 1.4%, ten year yield of 7 basis points after that data today where three 76, the two year up 11 basis points at four 46, we check the markets for you every all day long at the fact right here on Bloomberg radio on John Tucker. That's your Bloomberg business flash. Matt and Paul. That's right, John Tucker, we talk markets all day, just like ESPN radio's talk sports all day. We talk business and markets and finances and all that kind of stuff. During the week, right? On the weekends, I give it up, but you know that Katie greifeld spends her entire weekend slaving away on her cats and coins newsletter. Is that right? Yeah. Okay. Katie rifle cross asset reporter joins us here in a Bloomberg interactive broker studio. First of all, when you do your dressage writing thing on the horse, you have a saddle, right? Oh, a big time. Big time. But it's not a cowboy John Wayne saddle. No, it's a dressage title. You can tell it's a dressage shuttle because it has a really high back. It's kind of like sitting in a bucket because you really want to have a firm base. All right, good stuff. We weren't Matt and I were just talking about that. We weren't sure how that was. All played out. Say you rope a calf and you've got to tie it to your saddle. What do you do? If there's a calf in the dressage room. That's something went wrong, but I would say a western saddle is like a couch. That's a comfortable saddle, but a dressage saddle took a bucket, you know? You really sitting in there. You're strapped in. Yeah, what are you guys falling off? All right, I want to talk crypto here. Who is Barry silbert, and do I care who this guy is? Definitely care. Who is this? He is the founder of digital currency group. It was once valued at $10 billion. It's this huge crypto conglomerate. The reason you're hearing so much about Barry silver right now is because the companies that DCG owns, it has grayscale, which has the grayscale Bitcoin trust. GBTC. Exactly, which is in a lot of, well, how much Bitcoin does the grace grayscale Bitcoin trust own? At one point, it held like 3% of all outstanding supply of Bitcoin. So it's a massive amount of money, but the thing about it is it's trading at a massive discount. Massive. To net asset value. Like if they own out, let's say a $1 billion worth of Bitcoin, the whole thing is only worth 500 million. Okay. Okay. So. And shareholders are upset because they can't get their Bitcoin out because it doesn't have redemptions. There are gray schools actually getting sued by a hedge fund right now for a tree capital is suing grayscale over the discount, they're saying that they mismanaged the trust, et cetera, et cetera. So we'll see if that goes anywhere, but there's starting to be some really long shot activist campaigns to try to oust grayscale as the manager of this trust. Again, these are long shots, but we'll see it just speaks to the fact that there's this bubbling discontent over what's happening at grayscale, one of the DCG companies. The other one that you're hearing a lot about is genesis. So that's a lending crypto lending company owned by DCG actually, I don't know if you guys were following over the weekend, but Gemini, the winkle vi twins. Gotcha. It was just one winkle vie. It was Cameron. Yeah, Cameron winklevoss. He wrote a really heated letter in open letter to Barry silbert because Gemini, they say that their own $900 million in customer assets basically in limbo at genesis and they haven't been able to make satisfying contact with Barry silbert. So there's a lot of you can understand why Cameron's angry, right? Because that's not just his money. He's got clients who are probably angry with him. Oh yeah. They're actually, they have their own lawsuit on their hands. They're being sued by their customers. So the way that Cameron sees it, what he alleges is that Barry silbert has done some serious commingling of funds. I heard that term before. And we know that commingling is no bueno. That is a big accusation. That's definitely what I mean, it was a long letter. I read every word. Well, Cameron says that DCG borrowed $1.675 billion from genesis. And silbert responded, no, we have not borrowed $1.675 billion from genesis and we make every interest payment on time. So kind of implying we have borrowed money, but not that much money, or at least not that exact amount. Yeah, that was a little. How much then have you borrowed? Is it 1.75 billion? Is it only 1 billion? I would love to know, there's plenty who would love to know, not just reporters, really, everyone in the crypto industry would love to know, but they actually gave silbert a deadline here. Cameron winklevoss, he said that he wants some sort of public commitment that silbert and DCG is going to work together to solve this problem by January 8th that is three days from now. What happens on January 8th, I don't know. I don't know. All right, let's bring in Barry Rudolph. He's a host of masters in business on Bloomberg

Barry silbert John Tucker Katie greifeld Katie rifle DCG digital currency group Barry silver Matt ESPN radio Tesla John Wayne Bloomberg Cameron Cameron winklevoss
"winkle vi" Discussed on CoinDesk Podcast Network

CoinDesk Podcast Network

05:41 min | 3 weeks ago

"winkle vi" Discussed on CoinDesk Podcast Network

"Characters. Remember, remember, though Kwan was once Rick Sanchez trying to start basis cash way back when and that was only unearthed by some hardcore reporting some years later. So there could be some schemes afoot. Who knows? Let's speculate some more. Jen, what do you think? Sam bakman freed's lawyers, his parents who are lawyers, have not told him to stop this. And is he not listening to them? Like, I would want to, I just want to be a fly on the wall to the conversations that are happening behind the scenes. Why is this behavior being allowed? I want to know. We may never know. But what's turned from this disaster towards another one and talk about genesis, which is still having issues withdrawing funds for customers. Genesis trading and lending stopped issuing withdrawals to its customers back in November, citing liquidity issues, genesis is owned by DCG, which is also the parent company of coin desk ever since this happened in November, a lot of different firms have been asking for their money back from genesis, including Gemini, which has a pretty impressive retail program for credit card rewards and other awards based on your crypto, a $900 million is locked up in that fund and recently the wrinkle by twins have been asking for their money back from DCG writing this open letter to Barry silbert. The CEO of DCG, which owns genesis entirely, saying, hey, we need our money back. Barry shot back earlier over this weekend saying, hey, we do have the money. We're making payments on everything. This letter is a little inappropriate. Zach, this was sort of like a battle between two Titans or two giants in the space that played out on Twitter. A lot of the times you see these kind of playing out with lawyers behind doors and not on Twitter. So this was some fresh popcorn for everyone on crypto Twitter. Want to get your take on it. Tis the way it is the way of crypto. This is definitely probably not the way that many crypto observers wanted to see 2023 start. This is a pretty high stakes feud with some pretty big money at stake here. This is $900 million of customer funds that are locked up because genesis was used by Gemini. I always get those two brand names are two similar cases. They need to change that. Anyway, used genesis. It's not your fault. Provide yield to its customers who were using Gemini similarly to how you would use a savings account in a bank, right? Where you get some quote unquote interest on your crypto holdings through Jim and I earn, which was powered by genesis. So anyway, big money at stake, big characters at stake here in the crypto world. And I think it's interesting to see the winkle vie and Barry here because we always seem to reduce things to singular people rather than the entities that they help. Going to have some sort of Twitter spat about whether or not this is going to get resolved anytime soon. So yeah, these things take a long time. I think the fact that genesis hasn't been forced into bankruptcy suggests that maybe things aren't that bad right, that was a possibility going back a couple months ago that it could have been on the brink of having to file for bankruptcy protection. The fact that they are able to continue with some of the other business units to keep those going while this gets sorted out is potentially a good sign for berries, DCG empire, and I think it's going to be interesting to see should the winkle vie up the pressure and change things materially for how this gets resolved. Who knows? We're just going to have to wait and see. Wendy, I think I saw your hand, but Jen, I also want to get you on the board. So duke it out. I just have a silly take with this one. Seeing Barry and the winkle vi twins bicker on Twitter like this. Could you imagine like Wells Fargo and JPMorgan going head to head on Twitter dot com on I think was it a Sunday? It was a holiday. It was a Monday, right? That this played out, but can you imagine? Because that's really what the comparison is here. We've got two massive forces in the space going head to head and I don't know how you can say crypto isn't transparent. We are literally watching this stuff play out in real time. You would never see this happen in traditional finance. Jamie diamond, he would never. Jamie Dimon would never. Come on. You have to see it. Get your Twitter fingers out. Come on, let's see this thing. Kermit the frog. I want to give the CEO the genesis CEO, the benefit of the doubt. So I think it's fair to say that he is in a tricky position and if he were to rush and do something and make the incorrect decision, then we would be on here saying like, why did he move so quickly? Why didn't he just tell us that he needs more time to figure out the complexities of how this is going, how this is going to unfold? I think it was yesterday I was reading an article in decrypt that also said three Gemini users are filing a class action lawsuit against DCG and Gemini, genesis, hold on. Let me just and genesis. And so I think that when you have class action lawsuits, lawsuits, which asterisks, anyone can launch a class action lawsuit. So we'll wait to see what happens there. But when you have class action lawsuits coming at you, you have people coming at you from every different direction. I think it's fair to say, we need to pause a moment here and figure out what's going on. So I don't think it's a bad thing that the CEO has said, you know, I just need to figure out what's going on. We're not going to act as quickly as we originally said we were. Well, the hash is legal counsel Jensen assay everyone. Thanks for the top down view. They appreciate it. The one thing I do want to bring up a little bit more though is going back to November, genesis did say at the time that they had enough assets to back all their outstanding loans, all their house any liabilities. The issue was liquidity. That being said, a lot of people are not sure they believe that because if you look back at the history of genesis in the originations of its loans, there are some really big questions you have to answer.

genesis DCG Twitter Gemini Sam bakman coin desk Barry silbert Barry Rick Sanchez Jen Kwan Genesis Zach Titans Jamie diamond giants JPMorgan Jim Jamie Dimon
"winkle vi" Discussed on Simply Bitcoin

Simply Bitcoin

01:58 min | Last month

"winkle vi" Discussed on Simply Bitcoin

"They also got simply Bitcoin snapbacks. It's awesome. They're dope AF. Anyways, let's check out some of the, let's check out some of the scores going to bring opti back. All right, first score is by opt is. I mean, Santiago Gonzalez, I gave those memes two more anos. And by the way, I think in Latin, that means horrible year, opt these inflation with sexy male British accents score that feeling when you understand how dumb the average normie is and then realize half of them are even dumber than that. I don't think it's that they're dumb, dude. It's just low information and you have to understand that the mainstream media matrix is very, very powerful. Rave elevator. I gave the memes one quote going out of business sign for the Federal Reserve. I love that one. That one's great. Next one by Frank Arne. I give the memes a whole BSV coin that is definitely going to the moon because I am mentally challenged. Real Bitcoin G FY. All right, what's the next one opti? Lucky red fish. Hey man, good to see you. I give those memes 10 million BSV await their worthless. MG Smith, I give the memes a mug of winkle vi tears, very, very nice. All right, next one by diogenes. I give the mems a bring back mini Nico. Your wish is granted. We are doing it many Nico is back. All right, I'm in the corner. And look, check this out. I can bring yellow. It's kind of weird now, huh? Okay. Anyways, so BTC pins. I give the memes a festive us miraculous miracle, okay? Andres, I give the memes a new Internet router opti hindon. Elaine, I give the memes some better connection for opti. You will forget it fixed tomorrow. Leave for after alone.

Santiago Gonzalez normie Frank Arne MG Smith Federal Reserve diogenes Nico Andres Elaine
"winkle vi" Discussed on The Toasty Podcast

The Toasty Podcast

05:23 min | 1 year ago

"winkle vi" Discussed on The Toasty Podcast

"Are these social media groups so that next step. I've been for a while. The next episode government bro. Well yeah the next step. Well the thing is the government doesn't have to itself. They just freak in there. Just intimidate facebook to do or facebook do intimidate facebook's a hiring any intimidating facebook is paying the government like speaking of the misinformation thing they'll say facebook is paying the government now the other way around. Is it him saying. Now i do. I do the government back. Well we can limit your income or we can break up break up because we consider you monopoly india facebook literally or you could just flags posts in quietly. You know it just obvious users. And i just wanna see what i wanna see. You know how they have. That movie. Little marks on the social network. Yeah day. I wanna see the social network part too. I wanna see the part where he gets done. And it's facebook up until this sucking the souls out in. I wanna know how he became like where. Where did he become a guy like he is now or where did he become c. You of this company because facebook is not the same as it was when it started obviously not even close their mission statement has to be different has to be to connect people not be the same in each. Don't don't follow any more dusty corner the point. I'm no dude. I'm not saying he has to be mission. I'm just saying like like it just surprises me. Because you're looking at this well obviously movies can portray it a little differently too. I understand that and they probably put him in a good light because he is about lawsuit. But gets the winkle vi- but i just. I'm so mind blown like i can see jeff bezos and like. Oh yeah yeah. He's the guy he's that guy. I could see it. You know elon. Musk even maybe but he's like really trying to get things done. You can tell ya is mark zuckerberg like just some random college guy doing his thing kind of robot. Kind away you know. He's not really got not the guy that he believes next fears the. But i'm just saying like now what dude. Now he's right under the government's hand and just say all right. Let's get it well. He has no choice he wants. He wants his legacy in his company and his. You know standard oil to stay together. You know what i'm saying. If you're in that that's what you think would happen with you or me or someone else in that position we just man. What do we do. It's like the mafia do have principals. So you wouldn't right. No and i wouldn't either but that's the point. I'm trying to make is how do you do all the companies with the principals. Just get cut out. Yeah they bought out by the company's with the money everybody has a price. I mean you can be as principal. Does he want to be..

facebook jeff bezos india elon Musk mark zuckerberg government
GameStop Stock Soars as Reddit Investors Take On Wall Street Bets

Squawk Pod

07:17 min | 2 years ago

GameStop Stock Soars as Reddit Investors Take On Wall Street Bets

"Stop the video game retailer. Stock has rallied over six hundred eighty percent this month and in the last couple of days the stocks volatility has pretty much everyone talking. So what's going on. First of all game stop is for the average mall going consumer dying brand a relic of simpler times when we used to have to physically go to the store and wait in line for the newest call of duty or for the latest harry potter book. So it's no surprise. That game stop has been a target for wall street shortsellers its demise has been foregone conclusion. So short and game stop. That is betting that game stop would continue to. Depreciate could have been a good bet except short-selling is risky and your losses if you lose that bad or basically limitless since there's no cap on how valuable the company has bet against could become so even riskier if stock you've shorted starts going up. You can essentially cut your losses without getting too in the weeds market mechanics here. When a lot of short seller's designed to cut their losses on a shorted stock. That's now suddenly going up it triggers. What's called a short squeeze. Demand goes up. Supply goes down. Price goes up more shortsellers. Try to cut their losses. It's a vicious cycle and one that can result in massive losses for their shortsellers and giant prophets for those who've invested in the stock on the way up which is when a popular reddit. Forum called wall street bets figured out that game stop was the most shorted stock in the us markets. It wasn't hard to convince reddit users in the forum to buy up enough stock in game. Stop to trigger that short squeeze making retail investors of bundle and sticking it to the wall street big guys in the process. This was all encouraged in many ways by high profile investors with a hefty social media presence. Jamaa only petia tweeted that he'd bet on the stock increasing himself cameron winkle voss of the winkle vi- suggested he might go along on the stock and must only tweeted that he was aware of the situation just aware of the situation in game. Stop took off again. In after hours. Trading and to wall street bets credit. The plan worked amid game. Stops rally shortsellers on wall. Street have accumulated over five billion dollars in losses year to date and that includes nine hundred million loss on monday and one point six billion lost on friday. As you're about to hear hedge fund. Melvin capital took an enormous loss on the bet so much so that rumors of bankruptcy were swirling on that wall street. Bet sub reddit. But the founder of melvin told our own andrew ross sorkin. The rumors aren't true. Here's andrew now some breaking news this morning on this game stop story. We've been reporting all morning. Having talked to gay. Plock into runs. Melvin capital gay. Plotkin saying that. Melvin capital has been out closed out its position in the stock force. That company was Firm i should say with short looks like lost a ton of money but short that company up through Before the end of the close yesterday but Gabe saying that They got out yesterday afternoon. Of course the question is what happens now. Game stop a game. Stop shares Melvin capital had to take in an additional close to three billion dollars in new capital citadel. Coming to the rescue along with point seventy two. This is a remarkable saga With game stop so many of these investors no really no longer really investing on the fundamentals of what's happening against up but more just continue to push up the stock and we've seen so many folks like you on musk. Go take to twitter about it. Chihua- polly fanning the flames. So there's a lot of fan fan. Flame fanning taking place right now big questions about regulators where they are what they should be doing a lot of criticism and critique online as saying that if you think manipulation what do you think wall street is doing everyday to us the retail investors so. There's a sort of a pop psychology dynamic at play. And i think we're all we're all learning and try and understand what it means but also what it means in the future for the ability of retail investors to get together on places like read it and other places Form an army of sorts and try to push up The stocks in in certain cases like this. So i'm at a loss for words. Joe i really am where are the regulators and is this just the beginning situation. We all do have a lot to say on this but you you obviously have a lot to san. That's interesting but obviously the plane with the calls. And you're you're seeing calls that are one hundred dollars out of the money going for nineteen dollars and things that you've got markups going from two billion to twenty five billion. Obviously everything you're saying we understand. This is this is a game obviously and these guys. When i put five dollars on a ncaa game that. I don't care that much about that's the same as jemaah putting a couple of hundred grand on some calls or lan or any of the guys were talking about this. I think it's kind of responsible. The kind of laughing about it laughing all the way to the bank. But you know there are market makers that have to take. How'd you like to be short some of these calls. Can you imagine being short some of these calls. Especially if you're not covering i mean you can lose. You can lose ten times your money. Unlike a regular investment where only lose one hundred percent. I mean this this this makes this makes bitcoin look like t-bills if you think there's speculation and crypto when you when you look at something like and now they're looking for the next mark right they'll find another game stop once they're done with game stop but in the meantime there's gonna be blood all over understand why i understand why elon musk is doing it. He hates the shorts. They've you know he's right. Thinks it's a game where he's playing a game to understand he's playing the game too. I don't understand why tomatoes doing this. I don't understand why the winkle loss guys doing this. I mean this is i. It's nothing about me. Said too much money it and if you if you think people look unkindly at the wealthy at this point like wait till you see what happens with with the retail investor who gets sucked into thing and gets caught in the trap with who can't afford to lose the money like these guys are doing. I'll tell you the thing there. There really is a merry band of retail investors. Out there both already but increasingly and this is what i think even more concerning i spent a lotta time night reporting this out but also spending time on the in some of these rooms there are places people are going out into encrypted rooms onto telegram onto signal where they where they effectively are planning their next raid. Where they're trying to look to say. Okay where can we do. You know who can we take down next. In this case it was capital that they were seeking to take down. That's why i think the news today that they're out maybe potentially a turning point. I don't know. I don't. I don't know what turns this stock back into some kind of a normal

Melvin Capital Reddit Jamaa Petia Cameron Winkle Voss Winkle Vi New Capital Citadel Chihua Polly Fanning Andrew Ross Sorkin Harry Potter Plotkin Melvin Gabe Andrew
Facebook's crypto dream

Marketplace Tech with Molly Wood

05:36 min | 3 years ago

Facebook's crypto dream

"This marketplace podcast is brought to you by ultimate software dedicated to putting people first with innovative solutions for HR payroll and talent management. Learn more at ultimate software dot com. Ultimate software people. First. Baseba goes crypto, because why actually from American public media, this is marketplace tech? I'm Tracey Samuelson in for Molly would. Facebook is planning to launch a cryptocurrency in twenty twenty it's called libra and Facebook already has a bunch of high profile partners, lined up. Uber Spotify and notably. Big players in the payment space, like visa, MasterCard and PayPal. The partners will jointly manage the currency through a nonprofit association and Facebook says they'll be a firewall of sorts between users finances, and the social network. It won't use financial data to improve ad targeting on Facebook. So why create a digital wallet and why do it with a crypto currency? We say L S covers payments and crypto currency at the research firm Moffitt. Nathan said she says Facebook wants to be a commerce pot form. They have a major goal to start facilitating commerce over their platforms as a whole do revenue stream for them beyond the social media revenue, streams and payments are essential to facilitate in commerce. So like eighty five percent of. Facebook users when you look across all their properties, including WhatsApp, and Instagram and Facebook are actually in developing markets. So as a means for empowering their WhatsApp users that are sitting in all these countries where those what's up users have a phone and have a Wes up account, but may not have a Bank account, or even if they do they may limit their use of the local currency because of its volatility. They're trying to empower that group of individuals talk to me about the trust factor. Right. Because that's been a huge issue around Facebook. And now we're introducing a wallet into that scenario. Yeah. It's perhaps one of the most challenging things. Let me put it that way that this initiative will have to work through is the process of distancing itself from Facebook. So they're quarterbacking the creation of libra, but it's, you know, once it's up and running in twenty twenty they will be one of one hundred or so roughly. Members of the association with in theory. No more control over the system than any of the other core. Constituents even their wallet. Which is, you know, being called ca- libra. They're setting up as a separate subsidiary from Facebook specifically, so that it can meet all of the regulatory compliance and kind of maintain the data separation, let it go wrong. What should we be worried about well payments are extremely messy and a highly regulated and very different in every jurisdiction? And so most countries haven't even decided how they wanna treat crypto currencies. Are they a commodity like gold? Are they a currency like dollars? Are they a security like stock in a company like it's actually treated in all three of those ways in different places? So given that not only will libra have to navigate two hundred plus countries different treatments, most of. The countries don't even have the treatment established. Lisa LS covers payments and crypto currencies at the research, firm Moffat Nathanson that big open question of regulation, Ella says, how receptive countries are to Facebook's currency will likely have a big impact on where out the currency and win. It could take a phased approach. And now for some related links. If you really want to nerd out on this, you can check out Facebook's, white paper for more on the mechanics of how libra will work how it will be backed by a reserve of real assets. And the association that will govern it and for something maybe lighter, remember, the winkle Vaas twins Tyler and Cameron sued. Facebook founder, Mark Zuckerberg, claiming he stole their idea and settled for sixty five million dollars. The twins have been big crypto investors and said on CBS Sunday morning last weekend that they need to be frenemies with Facebook in may the financial times reported that suck and the winkle vi- have actually talked about the new currency. I'm Tracey Samuelson. And that's marketplace tech. This is APN. Marketplace turns thirty this year and to celebrate we're going back to the eighties. Checkout are totally radical new. Thank you gifts that you can choose from when you become a marketplace investor, your donation, large or small will help us keep bringing you news and information you trust for years to come. Donate today at marketplace dot org. This marketplace podcast is brought to you by click share an award-winning wireless presentation system with click share in your meeting. 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