VOYAGER'S ANNOUNCEMENT COMES AMID A RAFT OF MARGIN CALLS AND DEFAULTS ACROSS THE SECTOR FTX HAS SIGNED A DEAL TO BUY BLOCKFI FOR UP TO $240 MILLION RESCUING THAT TROUBLED LENDER AS WELL LET'S BRING IN TOM LEE TOM, IT'S GREAT TO SEE YOU LET'S JUST START WITH CRYPTO AND WHERE IT'S SITUATED. OBVIOUSLY THE PRICE DECLINES IN BITCOIN AND OTHER COINS HAVE PRECIPITATED THIS SHOCK TO THE SYSTEM WE HAVE A LITTLE BIT OF A — KIND OF THE ASSET LIABILITY MISMATCH AND LIQUIDITY ISSUES AROUND THE ECOSYSTEM WHAT DOES IT MEAN FOR THE ASSET CLASS TO GO THROUGH SOMETHING LIKE THIS AT THIS POINT? >> THIS IS A REALLY IMPORTANT MOMENT FOR THE INDUSTRY. IT'S THE EQUIVALENT OF A LARGE DELEVERAGING EPISODE WHERE FOLKS HAVE DISCOVERED THAT SOME OF THE PROGRAMMING CODES DON'T REALLY SECURE COLLATERAL PROPERLY AND DECENTRALIZED FINANCE IS COMING INTO QUESTION. SO I THINK THERE'S A LOT OF REASONS THIS IS AN IMPORTANT MOMENT FOR THE INDUSTRY.
IT'S A PAINFUL LESSON FOR INVESTORS. I THINK THAT ONE OF THE BIG TAKEAWAYS IS THAT WITHOUT QUESTION WHEN IT COMES TO HANDLING MONEY, YOU KNOW, TECHNOLOGY AND CODE IS NOT THE ONLY IMPORTANT FACTOR. SOME SORT OF STRUCTURE ON REGULATIONS AND ACCOUNTING AND IDENTIFYING COLLATERAL AND COUNTERPARTIES IS IMPORTANT AND THESE ARE THE DEVELOPMENTS THAT NEED TO BE ADDED TO THE NEXT SET OF PROJECTS AND BLOCKCHAINS. >> SO THOSE ARE OBVIOUSLY THIS IS GOING TO ITERATE AND THEY'LL TRY TO FIGURE IT OUT ON THE TECHNOLOGY SIDE. WHAT ABOUT THOSE PEOPLE WHO REALLY WERE JUST VIEWING IT PRINCIPALLY AS AN ASSET CLASS, AS SOMETHING TO OPEN, WHETHER IT'S BECAUSE OF MOMENTUM OR BECAUSE THEY WERE BIG BELIEVERS IN THE DIGITAL GOLD ATTRIBUTES OR ANYTHING LIKE THAT. CAN IT COME BACK FROM THIS, I GUESS, IS THE BIG QUESTION >> YEAH, I THINK IT'S GOING TO COME BACK.
BITCOIN HAS ACTUALLY HELD UP TREMENDOUSLY WELL. AS YOU KNOW, BITCOIN WAS 2500 JUST THREE YEARS AGO EVEN THOUGH IT'S DOWN FROM ITS HIGHS, IT'S STILL AROUND 20,000 AND NEAR SOME PRETTY IMPORTANT SUPPORT LEVELS BUT ALSO THE BITCOIN BLOCKCHAIN HAS FUNCTIONED PRETTY WELL IT HASN'T HAD ANY KNOCK-ON EFFECTS EXCEPT FOR PRICE ADJUSTING. BUT BITCOIN SECURITY, THERE HASN'T BEEN ANY HACKS. IT'S STILL PROCESSING A LOT OF TRANSACTIONS AND MOVING A LOT OF VALUE. SO I THINK IT'S SHOWING THAT PARTS OF THE CRYPTO SYSTEM WORK REALLY WELL BUT A LOT OF THESE CUTTING EDGE, INNOVATIVE PROJECTS AND ATTEMPTS TO OFFER YIELD AND LEVERAGE AND ALLOWING WHAT CUSTOMERS AND INVESTORS THOUGHT WAS EXCESS RETURN TURNED OUT TO BE PHANTOM BORROWING FROM THE FUTURE AND THAT'
