This is the full transcription of podcast 'Wall Street Unplugged with Frank Curzio' - Regulators' crypto crackdown is backfiring.
#Podcast #Transcription #ReadAlong #KnowledgeUnlocked
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This is the full transcription of podcast 'Wall Street Unplugged with Frank Curzio' - Regulators' crypto crackdown is backfiring.
#Podcast #Transcription #ReadAlong #KnowledgeUnlocked
Wall Street unplugged looks beyond the regular headlines heard on mainstream financial media to bring you unscripted interviews and breaking commentary Direct from Wall Street right to you on main It's March 1st Now Frank courage us the Washington pockets will bring the headlines and Tell you what's really moving these markets So I'm about to say may get me a little bit of trouble, but I think the world should know it I think it's very important We're doing business with Bank of America our corporation since we started this business five years ago and Bank of America last week Tied to send me a letter saying that they would no longer do business with courage your research found that interesting maybe it's cause we Talk about crypto, but CNBC talks about crypto. Maybe it's cause we invested in TCG Yet, you know Nike investing in roblox or other major retailing companies are Investing in roblox to build a metaverse puts some par and how just set of revenue is derived by the same thing (1/34)
over the past five years, which is subscriptions and The letter they sent to us Right letter. They didn't call me didn't call me personally sent the letter But I said they would no longer do business with us and we restrict deposits on your accounts I said you have 30 days to transfer everything out of Bank of America and in this letter They write a number to call it says we're here if you have any questions So I called it and I want you to listen To exactly what's on this recording If you have been referred to this phone number It is because we are unable to open new accounts or add one or more applicants to your existing account This decision cannot be overridden If you have recently received a letter stating your account or accounts are being closed The reason for this is that Bank of America made a business decision to close the account We have determined you operate in the business time We elect not to service at Bank of America the decision to close the account will not be (2/34)
reconsidered Press one to speak to an agent So when I press the number one, it actually goes to a voicemail so I don't let you talk to anyone But imagine your bank just send you a letter out of the blue saying hey, you know what we're no longer doing business with you We're not gonna provide a reason we're not gonna talk to you about it You can't talk to us about it can't defend yourself. No matter what this decision will not be reversed It's pretty effing crazy Now we're fine as a business. We set up with a mid-tier bank or perfectly fine Like I said earlier Bank of America sucked. Anyway, we're looking to move right the prize good rates charges massive amount of fees We're lots of problems with them lots of problems with them But again, we have everything integrated payroll your corporation everything integrated him It's just you know, we'll get to and get to wanted to get to it after tax season Should've been a little bit better But they didn't care they didn't care when they sent (3/34)
this out they didn't say hey you have three months They said nope you have a month So I started making some calls talking to people within the industry and the bigger point here All the major banks have been instructed by the regulators the government to shut down all crypto operations So Basically said hey if you don't then we're gonna find you and the hammer is going to come down You can look at a Wall Street Journal had a great article about this Everything always gets leaked first at Wall Street Journal the Fed all the regulations stuff gets leaked to Wall Street Journal first This is from like four or five days ago. They've been doing this over the past Month or so, but highlights how big banks are backing away from crypto companies And how it follows the FTX blob which by the way had nothing to do with crypto This was fraud where person side take customer deposits through its brokerage the trading arm right that platform and Illegally distribute them to its hedge fund which was (4/34)
losing billions and billions of dollars right this is classic fraud Anyway, nobody really cared that much Because FTX was huge paying everybody including famous athletes to market their brand They're allowed to go in a hill and discuss how regulation would help the industry because why? They would donate billions and billions and billions of dollars lobbying dollars To politicians mostly those big donations went to Democrats So of course this crackdown did not happen before the donations were given right. This is pre midterm election cycle You look at FTX they filed for bankruptcy just shortly after midterm elections, and then all the stuff started coming out perfect timing Right you're not gonna do before No way not during the midterm election. That's much more important right, but it's not just the major banks The government started going after almost everyone who's currently doing business have law of operation in crypto If you look at signature Bank one of the biggest crypto banks (5/34)
in terms of assets They just announced a had to cut ties with finance the international part Silvergate no longer accepting accounts everybody's been saying that's a fraud for probably six months now. No smoking gun no fraud people are removing assets The stock is going down because people are worried that if I have your assets in there if there's an FTX situation I may lose my money, so you can't blame them, but fraud That exposure of eight billion dollars to FTX and what do they do they sold debt securities They sold other things a little bit for a loss, and they paid it off They're operational doesn't matter It's my say Herbalife where it's a Ponzi scheme. It's a Ponzi scheme well eventually It's not that difficult to prove that it's a Ponzi scheme It's not too difficult to prove this illegal operations, and it's been six months now Have we seen a smoking gun I haven't I? Hear all the short sellers mentioned that they have it they have it have all this information I have it I have (6/34)
for six months. They recently got blown out of the position. Yes, it crashed tremendously This is something we generate over thousand percent returns on in our newsletter For selling it lately last I think was last year. There's less than 12 months Just took off We talking about you know Silvergate and also signature And I guess this how our government which includes what the Federal Reserve federal deposit insurance Corporation the office of the comptroller of the currency right those are three major ones and even the SEC It's getting involved right this is how they plan to deal with crypto Not by providing laws but by picking and choosing Who could do business who doesn't instead of actually get providing those guidelines that everyone can follow So a grayscale is about to go to court right I think this decision is gonna be made the SEC And they said listen. I don't care much of course. We are going after them and will appeal appeal appeal appeal a Supreme Court they just want to (7/34)
know why the SEC approved several Bitcoin future products, which are competitors to grayscale and Have not approved grayscale to actually launch a Bitcoin ETF They haven't provided sufficient reasons for that You guys you see they say hey the guidelines are there for everyone I think they pretty much checked off all the guidelines whether you believe in that or not In terms of grayscale and what type of product it is but again There's guidelines you have to check off, and I don't think they're going to court if they didn't check off all those guidelines, but why? Why are they picking and choosing? What do we see and this has been happening over the past four to six weeks guys? Finance just to spend US dollar transfers cracking just force to pay a major fine 30 million for its staking business I understand that part of the business and why you going after when it comes to staking so a lot of these companies were Voyager BlockFi Celsius a lot of bullshit around these industries (8/34)
Interviewed the CEO BlockFi I asked him I remember asking him that you know How do you able to pay the higher interest rates? I think this is before my interest rates where you can get you know five percent On a six-month t-bill where rates are now Because when it rates was zero they're offering five percent seven percent twelve percent hike and he couldn't really answer. I didn't understand it Why in our newsletters we never advised anyone to stake ever. I just didn't understand it I'm not gonna recommend things. I don't understand I get that part of it, but they just settled now Coinbase that they're suspending BUSD. That's Binance's stablecoin And the SEC if you notice has been putting out articles everyplace Going into that media contacts showing how hey, you know, we have our eyes on stablecoins Really you have your eyes on stablecoins. That's where you see the most risk stablecoins This 3,000 plus probably 5,000 plus utility tokens where most should have their founders and CEOs (9/34)
locked up I know because I did the research on a lot of these They raise money through a utility token and investors buying into that offering Expect to make money on that token, which is the exact definition of a security. That's why we launched a security token And our token is just like a stock Regulations there everything is checked going through guidelines It's not crypto it's a security token is a digital asset It's much different than a utility token where you have no information or nothing But if you look at these other companies, nobody knows where the money is that they raised They have new cars and houses Most of these tokens their only value is tied to their utility feature For Binance that's using that token to lower your fees or you could book trips and buy different things They have hundreds and hundreds of uses. That's utility that creates demand When you use that token it gets burned that's fine. That's the way the system works 90% of these do not have any utility (10/34)
features meaning that token is absolutely worthless absolutely worthless Also, you can't find any info on the company how much the insiders still own what's going on? They provided this whole outlook and these updates a lot of these guys have taken that money and actually invested it in other crypto ideas Which they didn't outline when they were raising money I mean some of these companies don't even provide a picture of the executive teams. They'll have like a link to a LinkedIn account And when you click it, it's like a face of an NFT. They don't have a lot of followers They'll just have like a brief description on what the company does. That's it. Maybe that much of a background We know who these people are where to find them. You try to do searches try to do searches on some of these people Try to do a search on me and Google try to do a search on anyone you see in CBC and Google You'll find a whole profile everything Your reviews positive negatives people writing about you if (11/34)
you've been in the industry for a long time, that's great You could do your own research again. All of you should do your own research on me before you listen to me Do you do diligence that's your job try to do diligence on some of these companies you can't I know Don't bother looking I've looked for you It's just remarkable but stable coins are the issue. Let's go up to stay but it just shows you how much they don't know about the industry With that said trying to shut down crypto at this stage by going to the banks kind of like we do marijuana kind of like We did with gambling and things like that. Well, you don't know what the hell to do the banks. I mean the banks don't provide I mean some of them may provide capital but you can't use your debit account to purchase marijuana where it's not approved on the federal Level but it's proven state level same thing when it comes to You know different gambling sites a lot of you enjoy being able to gamble not just horse racing or fantasy (12/34)
football But actually betting on games through I think 34 states Florida's one of them that you can't And that's fine But a lot of companies when you fill out new accounts or brokers firms or whatever they say you don't do any business in marijuana you don't do any business in Gambling and no not at all But trying to shut down crypto at this stage and putting it in that category and I mentioned this analogy and it's relevant again It's like telling my teenage daughter stop dating a new boyfriend with the ten tattoos in the motorcycle I mean she's gonna end up marrying him a week later, right? They do exactly what you tell them not to do this is the younger generation that grew up with this Millennials are now 40 years old They're used to Bitcoin. They understand the digital age. Most of the kids that are growing up on roblox Those are the kids that are growing up using Minecraft or fortnight their developers. They don't even know it That's the future watch your kids when they're on (13/34)
these sites. They're developing They could pretty much write code if they want. It won't be difficult for them to learn But ensure trying to take something that goes against especially the biggest institutions of the world central banks Who have unlimited spending Politicians don't give a shit about anyone. They have no accountability. They'll spend money. Look how much money is being funded to Ukraine right now More than what Russia is paying for their war. Are you kidding me? Do you approve it? Do I approve it? Should we help them? Are you can debate whether we should help them or not? And why don't we just go to war Russia? I mean providing the weapons is like someone providing you would you know about to fight someone and and You know a guy gives him a baseball bat and a gun to fight me. I Mean, aren't they in the fight? Kind of you supplying them But this amount of money Going out of our country with the problems that we have in our country that could be solved. I Mean, come on. (14/34)
Give me a break. No accountability. It doesn't matter doesn't matter what you think. Nobody cares politicians Don't do what we want supposed to so democracy is right. We hire people to represent their constituents, but they don't we know that Most of them don't and you can't they have no choice They probably go in as independent being like hey, I'm gonna make changes and then their party goes to them and says hey If you don't vote with us, you're fucked. You're not gonna get funding. You're not gonna get anything ever Never be on your side with anything or we can give you this this this this this this this and this If you vote party lines and within a week you're voting party lines you have to you don't have a choice That's our political system very easily corruptible. It's why China when you have one person in charge They look at our government say wow This is pretty easy to corrupt with all these greedy motherfuckers on the other side That really don't have to answer to someone even (15/34)
when you catch them with things and nobody really cares So it's the way our system is set up is a greatest thing in the world, but it's easily corruptible Very easily you could see that with the spending and what we're doing. How can we never blame China? Remember getting kicked off when right now we were seeing the truth that which is a fact and something that you know again I was reporting Thanks to my contacts in January 2020 before Kobe even came here how it came out of Wuhan and hearing about a Wuhan lab and how this happened and right Away, you know the media was just through people offline Do not say that it's not a China virus. It's not that everyone knows where it came from There's a reason why the who didn't was and no one none scientists anyone and doctors were allowed China to let anyone in and the who still came out and said wow, we love how China is handling this situation and It's not from China even though they were not a lot China did not allow them to go into the (16/34)
country to investigate to try to help people where Maybe we could have stopped this before million Americans died seven million people died Now we know the truth and still we're not saying anything like hey is any are we coming out against China at all? No, we're not allowed to everything's Russia blame Russia Russia Russia Russia Russia crazy But a lot has to do with this central government this power and people have less and less control But when you're looking at the reckless spending and this is just not in the US but across all nations Look what's going on China right now How much they trying to inflate this mark their market right now and how much debt? They have how much trouble they're in you're not hearing that you're not hearing the real stories Just say oh China's opening everything's okay. Everything's not okay in China You could buy their stocks and enjoy the trend enjoy what everyone says and they're gonna lie about their numbers But be very very very very careful It's (17/34)
hard to do research because a lot of the information is suppressed especially by Google If you have good contacts and you really see what's going on in China, which I report You can hear a lot of especially Wall Street unplugged premium. You can see why everyone is up in arms and pissed off But If you're looking at digital, this is the future Bitcoin a theorem digital country Currencies these this is the future. This is where we're going. It's already integrated The more you try to take it away the stronger it gets Notice what Bitcoin is it continues to go higher the 24,000 well-offered slows of 15,000 It's why Bitcoin adoption continues to grow with the amount of Bitcoin stored in a lightning Network payment protocol just hit an all-time high 20 amount of dresses on the Bitcoin network continues to grow which is now 44 million record high 44 million These trends are happening now They're happening now as regulations are clamping even more You see more adoption and it makes sense (18/34)
They're gonna try to take something away from you More someone tells you notice something especially something that's like this. That's this innovative The more people are gonna want it and adopt it and while you look at the regulation the BS the government is still on the Banks and by the way, it's on the banks. Most of the major banks not brokers firms like fidelity Coinbase not asset managers like BlackRock. That's different. We're talking about banks the banking laws So fidelity is like hey, we're cool. Coinbase is cool. They're regulated. It's amazing how a company like galaxy digital. They won't even let Go public they did it coin bases Okay, but again, what are the rules? Galaxy's amazing company that company should be doing much much better But they're on a bulletin board trying to get an asset they can't they've been trying to do it for two years They got hit as hard as everybody else with crypto had a little exposure FTX But now they have I mean you have to see some of the (19/34)
moves in cryptos even our portfolio We had one that was down 65% so 55% Give several names that have taken off tremendously last five six names. We're seeing big reversals our Bitcoin position. Not Bitcoin is up Tremendously Ethereum's up tremendously because we recommend that early 10x. I believe we have Binance is up 20x for us get an early investment I mean, could you see those types of gains anyplace else? But you seen strength in the real names within this industry when it comes to regulation the BS the government's doing I tell him no matter what Crypto company it is whether it's compliant whether it's even crypto company or not like cursor research. We're not a crypto company We talk about cryptos. I'm talking about Bitcoin We're not crypto company hundred-star review comes from subscriptions. We invested in TCG Maybe that triggered something or whatever, but for us not to be able to call them and say hey, what are you doing too bad? This is what we decided no questions asked (20/34)
think about that for a minute That's fucking insane, right? It's insane when you think about it. We're able to switch operations go to another bank We were in good standing we have you know Very little charge offs, but everything's integrated and takes a little while we got that done within a week a lot of banks would love to do business with us because you know we do a lot of business generate revenue and Wires fees investments everything across the board using their credit cards and stuff and any Business would love to have us we're in good standing But to have to stop doing business with them just because an algorithm triggered something what algorithm triggered us and what a joke I'm thinking hopefully it's a step where the government Will regulate crypto the right way right to make sure It's safe. Everyone knows where their money is you're not worried about hackers You sign up to etrade Schwab wherever you go fidelity online accounts. You're not worried about it. They're doing all (21/34)
the checks in the background You're not worried about anything. That's the way crypto has to be And it's light years from where it was three years ago four years ago. It's easy I'll put up an account on coinbase and trade. It's very very easy. It's not that difficult They used to take weeks and weeks and weeks Don't take that long anymore, but that's out what I was hoping. Okay. We've seen this regulation but to restrict all major banks from doing business or crypto companies as If they were marijuana companies gambling companies, I mean that that's a complete joke Especially What's happening with gambling notice how gambling right if you know is ten years ago even as much as like five six years ago No, it's how the NFL Major League Baseball NBA all against gambling. You can't gamble no gambling. No gambling to get they had these commercials They were you know regulated to have commercials saying how bad is the gamble now? Look at them they have commercials Mid-game promoting if you go (22/34)
to this website right now and fan duel Will give you a 20% discount or a free trade and They'll go to the the announcer and say well, who do you like in a second half? Well, I think LeBron James gonna score at least 50. They're actually promoting the shit out of this, right? So they don't care about the people. They just know they can now make money off of it So they're gonna promote the hell out of it but the difference is That's gambling. I mean marijuana fine. You want to smoke it do whatever you want People have the right to do whatever they want feel good and relaxed I don't care more people to smoke pot the better less angry people would be that's fine We're talking about an industry With the greatest innovations that we've seen in the past 20 years are coming from I mean you're looking at Dow Dow is one of the biggest trends of the world. This is governance This is voting you don't really have those rights when you're a shareholder you think you do but you don't You do when (23/34)
you're black rock and you have these massive companies been around for 30 years and those shares are distributed but most even mid-tier you have big owners and a lot of them like Under Armour have structures in place where you know Their shares count for three four shares of this class and this class we you know, you can't vote You can't do anything. They have total control It's very rare that you see it. You'll see some some of these, you know you notice how when you have Elliott management right a lot of these hedge funds Come hostile. They try to convince other members that hey the company's not being run that well I mean those shares are distributed and it's almost always with large caps bigger companies We don't have one or two shareholders only, you know a big amount of shares unless you're what Vanguard black rock Those are big companies. They own everything convinced them and the next thing, you know, you get what is it engine whatever number it is climate change person on the (24/34)
board of Exxon probably trying to Make sure they don't drill as much That's when stuff like that happens, but Dow allows everyone to imagine if everyone had their own vote And you for everything for anything that you wanted for any kind of measure, you know politicians or whatever that we were able to vote That's what's going on crypto. The majority of people have to approve this in order to get a protocol passed It's an unbelievable trend go look it up. Look at ancient Horowitz. They wrote a massive paper on this Oh how this is the future. This is coming out of crypto Look at a metaverse you could tell me to determine however you want Online gameplay, you know, just another social media aspect more interaction I mean one of the largest companies in the world change its name to meta Now you're not letting banks do business. I mean are you letting Facebook do business with your banks with your major banks? I mean, they're pretty engulfed into crypto in the metaverse. What about DeFi (25/34)
decentralized finance NFTs? Look at the volume of T's over the past few months absolutely surging real projects a lot of bullshit in that industry But now there's real projects one that I invested in that I'm up 12 13 times on it's called killer bears I talked to management. I love what they're doing. They're building an amazing brand and providing value. I said, okay, I'm gonna invest And I'll put on on it But a lot of people getting crushed and this is in September when the market if you're looking for since September till now It's probably down a lot But there are great projects where again like a stock you talk to the manager and you talk to them I'm like wow, this guy didn't talk about money. He's not looking to to raise any cash This guy just has a brilliant idea that is all in he's got developers. He's building this this Massive community that's awesome that posts all the time that now has doctors and wealthy individuals in it Find like the pump-and-dump garbage that you see in (26/34)
so many NFTs and stuff like that No, and this gives you ownership actual ownership of a product like a patent on the blockchain. That's NFTs. It's massive The trend you won't be able to stop They're coming out against crypto these banks why cuz it threatened the old way of doing business as bankers Which is what charging massive massive massive amount of fees on everyone I mean, this is disruptive technology and by trying to limit it and restrict it. You know what you can't and You won't be able to this isn't the way they just don't know it. They're too dumb when it comes to this stuff That's why I took them so long regulate again things. Maybe I shouldn't be saying Let's see what happens believe me I'll be reporting all the time on this because I speak my mind and we're independent You're only gonna make this industry stronger And Now only you're making this industry stronger look at the places that are adopting whether it's the Middle East whether it's Hong Kong places around the (27/34)
world These countries are integrating crypto They're gonna be much much much stronger than the u.s. Adopting these technologies And the u.s. Is being left behind especially when you're telling the banks recently that hey, you know what cut ties of crypto We're a great example of this and when I started talking even to my lawyer everybody else My lawyer said listen, I I work with a bunch of businesses and several of them within crypto and they all said the same thing Then they got completely shut down and they have to move their accounts in place. It's just a blanket statement by the government How crazy is that not looking at crypto companies where a lot of them is shit, but some of them are real But this is where the innovation is taking place. You saw a lot of bankruptcies, which is good a massive wreck last year Which is great for the market get rid of a lot of bullshit Which you see and almost every major trend going back for the past 50 to 100 years Get this hype cycle you get the (28/34)
bullshit you get the assholes trying to make money and Then you get a complete wipeout and the ones that survive turn out to be Microsoft Google Facebook Amazon That's the way business works, but that's why you've seen the strength in crypto right now For the first time really you seen strength in crypto where the market is falling We've had a bad February at least the last three weeks of February You're not used to seeing that right usually hey all assets are going higher and Risky assets are going higher small caps are going higher That's why you saw crypto run up off of its lows along with you know The Nasdaq and the Russell surging but look how much the Nasdaq pulled back. Look how much Russell has pulled back Look what Bitcoin is we need a high 25,000. It's a 24,000 Trying to look see if I get a quote on CNBC right now. I Expect that trend to continue now that they're trying to shut them down They're not going to be able to but I think this trend of seeing Bitcoin go higher and (29/34)
higher higher You're gonna see it through 2023 and well into the future. This is the future of technology This is the younger generation of what they want. They hate the current system They should hate the current system because it's a lot of bullshit out there. We could have central banks and spending and craziness They want something different. They want something that they can own. They want something they can believe in and that's Bitcoin. That's a theory and A lot of those major tokens have gotten killed that are down 89% they're up a hundred two hundred percent off their lows in a past couple of months much more than the overall market Because those are the survivors the survivors are gonna do very very well going forward A lot of those names can be found our portfolio, which has really been kicking ass Yes, if you looked at it six months ago, you'd want to puke We're up over 600% the average position our portfolio was up 600% in our crypto intelligence newsletter And we saw some (30/34)
names down 70 80% we took small positions in them. That's why we didn't have stops small positions Usually we don't go higher than 6% on a position the motion could lose on a position And now over the past few months. I mean a lot of these things have absolutely surged Especially last five or six names are all up a ton, which is great. This is what we want to see whether the storm and Watch and invest into good technologies to good names of ones that are transparent to real companies That innovating that are providing amazing software amazing technology and that's a lot of names in that portfolio But this is why you're seeing strengthen crypto They tell someone no and it's this big to me more adoption more people are gonna want to get into it And that's what you see Again, I expect this trend Bitcoin going higher steadily higher be back and forth But I don't think it's gonna depend on the market anymore It's not gonna be moving or you know high beta moves higher than the market and (31/34)
moves lower than the market when it goes down I think you're gonna see a steady trend A month after month after month of just steady going higher and higher and higher and believe me This will be over a hundred thousand. I don't know when It could be three years. It could be five years but it's gonna consistently go higher and higher as more and more people adopt it especially with all the shit that we're seeing out of every central bank and Our politicians across the world not just in the US With that said love this episode Wall Street unplugged, I think you'll really love Wall Street unplugged premium The Wall Street premium is my members only podcast where I dive even deeper into this week's events Well do even more than tell you what's moving these markets tell you specifically What moves you can make today? So this is gonna be about trading Put big money in your pocket right away due to the inconsistencies. I see daily in the market I'm talking about specific investment ideas. I'm (32/34)
recommending and tracking each week that I believe would be impacted directly by everything. I Just talked about today plus you're gonna get the chance to go even further down the rabbit hole with me and My co-host was Daniel Creech as we discuss which of these week's trends could turn into massive windfalls Could the big trends that we see look in horizon also the news were picking up from our network of insiders Which has gotten bigger and bigger thanks to you and so many people Listening to this podcast in over a hundred countries and you get a chance to talk to me directly in my special Ask me anything Q&A session All that and a lot more like premium views with world leaders and finance technology industry and politics This is all part of Wall Street unplugged premium and becoming a member is super simple and super cheap So I don't over to wsu offer comm to check it all out sign up today and you won't miss a thing. That's wsu offer comm Hey guys. Thanks so much for listening (33/34)
question comments. I'm here for you Email me Frank Curzio research calm this Frank at Curzio research comm Happy March everyone. Glad spring is here. Well, at least in Florida. It's here firstly starts in a few weeks Although some of you are getting snow across the country I'll be sure to send you a picture on my Twitter account at Frank Curzio me my pool drinking a cocktail So you guys could really really hate me all seriousness Have a great week be careful in this crazy market stream instruments volatile I'll see you guys next week. Take care Wall Street unplugged is produced by Curzio research one of the most respected financial media companies in the industry The information presented on Wall Street unplugged is the opinion of its host and guests You should not base your investment decisions solely on this broadcast. Remember, it's your money and your responsibility (34/34)