Latest / The Paul Barron Crypto Show / Official $450 Million Sui Treasury Stock!🔥$MCVT🚨Mysten Labs + Mill City Ventures INTERVIEW

Transcript

Official $450 Million Sui Treasury Stock!🔥$MCVT🚨Mysten Labs + Mill City Ventures INTERVIEW · The Paul Barron Crypto Show

• 0:00
  Speaker 1: All right, welcome back into the show. Today.
• 0:01
  Speaker 2: We're going to be diving into a Swee treasury idea,
• 0:03
  Speaker 2: in fact, the official Swee Treasury. I don't think you
• 0:06
  Speaker 2: guys are going to want to miss this one. My
• 0:08
  Speaker 2: name is Paul Baron, Welcome back in and let's get started.
• 0:11
  Speaker 2: I do want to thank, of course Swee for helping
• 0:13
  Speaker 2: us out on this. They're one of our channel partners,
• 0:15
  Speaker 2: and we wanted to dive in a little deeper on
• 0:18
  Speaker 2: where treasuries are going, especially if you look at the
• 0:21
  Speaker 2: ecosystem that we're seeing across all of crypto. This is
• 0:25
  Speaker 2: one of the things that everybody's asking about, does this
• 0:28
  Speaker 2: have legs? What's it going to look like? And of
• 0:30
  Speaker 2: course we wanted to bring on two of the experts
• 0:32
  Speaker 2: in the industry, and of course that's Sam Blacksheer, who
• 0:35
  Speaker 2: is the CEO, co founder and CTO over at Miston Labs,
• 0:38
  Speaker 2: and also Stephen McIntosh, CIO of Mill City Ventures.
• 0:42
  Speaker 1: So great to have both of you guys today.
• 0:45
  Speaker 3: Thanks Paul, It's great to be here, all right, So.
• 0:47
  Speaker 2: Let's get into it. Let's just yeah, let's talk about
• 0:49
  Speaker 2: a couple of points. I want to get into mil
• 0:51
  Speaker 2: City Ventures obviously the big news four hundred and fifty million.
• 0:56
  Speaker 2: Now the announcement private placement to initiate a sweet treasury.
• 1:01
  Speaker 2: Talk to me a little about this, Steven. First of all,
• 1:03
  Speaker 2: why Swee? You have it on your website there, but
• 1:06
  Speaker 2: I want to hear from you. Why Swee, Why go
• 1:09
  Speaker 2: that direction?
• 1:11
  Speaker 4: Yeah, So, we have been investors in Suiy in Miston
• 1:14
  Speaker 4: Labs since the beginning. We are one of the most
• 1:16
  Speaker 4: prolific ecosystem investors. We've invested in deep book, Warrus, Suey Land,
• 1:22
  Speaker 4: Double up Chio which does kind of MeTV on Suey,
• 1:25
  Speaker 4: and a whole host of other businesses, some of which
• 1:28
  Speaker 4: aren't disclosed yet. Why sue is the best place to
• 1:32
  Speaker 4: start for everyone's benefit. This is the team that was
• 1:35
  Speaker 4: hand selected by Mark Zuckerberg at Facebook to build Libra
• 1:39
  Speaker 4: and DM to introduce a crypto network that would be
• 1:43
  Speaker 4: scaled to three billion users and to bring stable coin
• 1:47
  Speaker 4: infrastructure to that to the world. And unfortunately, under the
• 1:50
  Speaker 4: previous regime, for various reasons in the SEC that was
• 1:53
  Speaker 4: not allowed to flourish. So the team left they started
• 1:57
  Speaker 4: Miston Labs. I met them in Palo Alto and I
• 2:01
  Speaker 4: was struck by the intellectual capital and the engineering capability
• 2:04
  Speaker 4: of this business. I previously came from an artificial intelligence
• 2:07
  Speaker 4: background where the competition for talent was extreme. And you know,
• 2:14
  Speaker 4: if you look at the news today and how Mark
• 2:18
  Speaker 4: Zuckerberg's competing to hire these incredible engineers from open ai
• 2:22
  Speaker 4: and paying hundreds of millions of dollars, not billions of
• 2:24
  Speaker 4: dollars to recruit the best. This is that team five founders,
• 2:29
  Speaker 4: incredible researchers and engineers. Sam who's joined on the call today,
• 2:33
  Speaker 4: the inventor of moved programming language. And when we met
• 2:35
  Speaker 4: that team, we thought, Okay, this is the future open
• 2:39
  Speaker 4: AI of crypto or you know what I think will
• 2:41
  Speaker 4: now we will many of the analyst communitee will begin
• 2:45
  Speaker 4: to appreciate in the next few years. It's probably something
• 2:47
  Speaker 4: that looks like a Google or Amazon for Web three,
• 2:50
  Speaker 4: given all of the infrastructure products they've built around the
• 2:54
  Speaker 4: silly blockchain.
• 2:56
  Speaker 2: So Sam, you obviously have been around for while, You've
• 3:00
  Speaker 2: seen kind of the ebbs and flows of where blockchain
• 3:03
  Speaker 2: has gone. When you look at this idea of treasury companies,
• 3:08
  Speaker 2: and especially from a MIST and Labs side of things,
• 3:12
  Speaker 2: this is something that I think we're going to see
• 3:14
  Speaker 2: a massive upside for the question I have is is
• 3:16
  Speaker 2: this sustainable for both the industry and also for the
• 3:20
  Speaker 2: companies that are being involved.
• 3:22
  Speaker 3: Yeah, it's very interesting, right, Like my journey in the
• 3:24
  Speaker 3: space started in twenty eighteen, when Steve was mentioning I
• 3:28
  Speaker 3: joined the Libor project at Facebook to lead the effort
• 3:31
  Speaker 3: to create a design move And so, you know, I
• 3:34
  Speaker 3: worked in the space through the Facebook lens of trying
• 3:36
  Speaker 3: to build a blockchain for a global payments network, and
• 3:41
  Speaker 3: you know, using the experience of Facebook and building scalable
• 3:44
  Speaker 3: systems and consumer appealing systems, and you know, bringing my
• 3:48
  Speaker 3: program languages expertise to the table along with the expertise
• 3:52
  Speaker 3: of many of my co founders in cryptography and distributed
• 3:54
  Speaker 3: systems and in these areas. So from that experience, I
• 3:58
  Speaker 3: think we've built something pretty cool, but the world wasn't
• 4:00
  Speaker 3: ready for it yet, And when we hoped to found
• 4:03
  Speaker 3: missed in twenty twenty one. We've taken a lot of
• 4:06
  Speaker 3: the learnings from there to design a system it's even
• 4:10
  Speaker 3: more ambitious in terms of the use cases it's able
• 4:12
  Speaker 3: to address and what it's able to skill to. And
• 4:14
  Speaker 3: I think the world is just now sort of catching
• 4:16
  Speaker 3: up with the ambition of what we built and even
• 4:19
  Speaker 3: like you know, what was designed to build back then.
• 4:21
  Speaker 3: And so I think the data trend is an important
• 4:24
  Speaker 3: step toward, you know, actually getting to where the Facebook
• 4:27
  Speaker 3: wanted to be way back in twenty eighteen. Is like,
• 4:29
  Speaker 3: you know, this is going to be this is going
• 4:31
  Speaker 3: to be a consumer technology. It's solving real problems for
• 4:34
  Speaker 3: real people. It's broadly available, and so it's just another
• 4:37
  Speaker 3: important step toward legitimacy. And so I think, you know,
• 4:40
  Speaker 3: I think like there is an art in designing these
• 4:43
  Speaker 3: dads in a way that they are sustainable. And one
• 4:45
  Speaker 3: of the reasons that we're really excited about th City
• 4:47
  Speaker 3: is because I think, like you know, as Steven mentioned,
• 4:49
  Speaker 3: they're very very deep in the ecosystem. They get it
• 4:52
  Speaker 3: their long term investors, they have Palize for talent, and
• 4:54
  Speaker 3: so they've set up the data in a way that
• 4:57
  Speaker 3: it is a mission aligned with the ecosystem that's around
• 4:59
  Speaker 3: for the long term, not just trying to capitalize on
• 5:02
  Speaker 3: a short term trend.
• 5:03
  Speaker 2: Yeah, exactly, well, and I think that is the difference
• 5:06
  Speaker 2: when I was diving into Mill City. Stephen, Kudos to
• 5:08
  Speaker 2: you guys, because that is the one thing that I'm
• 5:10
  Speaker 2: seeing right now where treasury companies are popping up all
• 5:14
  Speaker 2: over the place in terms of different ecosystems, different tokens,
• 5:17
  Speaker 2: et cetera, most of which do not have experience in blockchain.
• 5:21
  Speaker 2: Many times, what they're doing is recruiting experience into from
• 5:25
  Speaker 2: blockchain into basically a shell company that is revitalized as
• 5:30
  Speaker 2: a treasury company. That is quite different than what you
• 5:33
  Speaker 2: guys have done. I was looking at your investors here.
• 5:36
  Speaker 2: This is pretty significant. Other notable investors, Panic Capital, atw
• 5:41
  Speaker 2: M two obviously Selini. I mean this is like a
• 5:44
  Speaker 2: who's who's list, including Galaxy on here.
• 5:48
  Speaker 1: First of all, how did you get this?
• 5:49
  Speaker 2: Many companies really interested in where you guys are going
• 5:54
  Speaker 2: with this.
• 5:56
  Speaker 4: Yeah, I'm one big name to add this is Jack Conk,
• 5:58
  Speaker 4: one of the biggest bitcoin mind is in the word world.
• 6:00
  Speaker 4: Who joined us because there's a very interesting bitcoin DeFi
• 6:05
  Speaker 4: story that's emerging on Suey, which we can get into
• 6:08
  Speaker 4: later in the show. I think, you know, for the
• 6:11
  Speaker 4: investors that joined us, we had a great book build.
• 6:14
  Speaker 4: It was a mix of you know, Wall Street multi
• 6:16
  Speaker 4: strike hedge funds, but also crypto investors, and we wanted
• 6:20
  Speaker 4: investors that were here for the long term. You know,
• 6:22
  Speaker 4: the way these fundraising processes take place, it's pretty insane.
• 6:25
  Speaker 4: You know. We raised that four hundred and fifty over
• 6:28
  Speaker 4: a two day window. We actually had oversubscribed demand. It was,
• 6:32
  Speaker 4: you know, a way of a five hundred million, but
• 6:34
  Speaker 4: we had to kind of cut it back just to
• 6:35
  Speaker 4: make it make sense with the share price and the
• 6:38
  Speaker 4: offering for the pipe. But the demand was incredible, and
• 6:41
  Speaker 4: I think there were you know, many investors who had
• 6:44
  Speaker 4: a crypto native thesis on why Sue is going to
• 6:47
  Speaker 4: be the category leader. You know, it's already emerged as
• 6:50
  Speaker 4: the category winner of the most previous cycle. It's the
• 6:53
  Speaker 4: only blockchain that has a native programming language built for crypto,
• 6:57
  Speaker 4: which has moved. Sam's the inventor of It's got this
• 7:00
  Speaker 4: very distinct object orientated data model, which is, you know,
• 7:03
  Speaker 4: fundamentally different from the account based model that you see
• 7:05
  Speaker 4: on Solana and ethereum. It's built for inherent scale, it's
• 7:09
  Speaker 4: built for programmable transaction blocks. It's built to handle concurrent,
• 7:12
  Speaker 4: simultaneous transactions. And if you look at the future again
• 7:15
  Speaker 4: coming from my background in AI, and we think of
• 7:18
  Speaker 4: this world of an agentic future where you've got smart
• 7:21
  Speaker 4: kind of AI wallats that thing can act for you
• 7:23
  Speaker 4: on your behalf and do all of these different transactions
• 7:25
  Speaker 4: on chain. You know, you need a universal coordination layer
• 7:28
  Speaker 4: that's like horizontally scalable. And the reason why many of
• 7:31
  Speaker 4: the use cases that were so accustomed to and Web two,
• 7:34
  Speaker 4: like social media gaming, just haven't really taken place in
• 7:37
  Speaker 4: Web three yet is because of the underlying infrastructure. And
• 7:39
  Speaker 4: that's what Suey was designed for. Just imagine that, you know,
• 7:43
  Speaker 4: the Libra DM team, you know, hadn't been kind of
• 7:46
  Speaker 4: shut down, it probably would have been biggest sript of
• 7:48
  Speaker 4: business in the world, Bigger than Tather, bigger than coinbase.
• 7:51
  Speaker 4: I mean, so that's an interesting thought, right, and I'm
• 7:54
  Speaker 4: very lucky that that didn't happen because we've got to
• 7:56
  Speaker 4: invest in Sam and his team, and we think that's
• 7:58
  Speaker 4: going to happen now. This is going to be the
• 8:00
  Speaker 4: the winner, the category leader in crypto. So I'm very
• 8:02
  Speaker 4: excited for the future.
• 8:04
  Speaker 2: Hey, timing is everything, man, you know, when you look
• 8:07
  Speaker 2: at of what's happening right now in the industry and
• 8:10
  Speaker 2: where we're going, I think maybe for the better really
• 8:13
  Speaker 2: of course, for what is.
• 8:14
  Speaker 1: Happening with myston Labs.
• 8:16
  Speaker 2: So I want to get into a little bit around
• 8:19
  Speaker 2: the idea of buying OTC versus going on chain, because
• 8:22
  Speaker 2: this is something we're seeing a handful of Joe Lubinan
• 8:24
  Speaker 2: you know, is notorious for saying, hey, I'll go out
• 8:26
  Speaker 2: on chain. We're going to acquire assets that way. Why
• 8:29
  Speaker 2: not go that route as opposed to going you know,
• 8:32
  Speaker 2: on an OTC desk for acquiring assets.
• 8:35
  Speaker 4: Oh yeah, So just to kind of make that point
• 8:37
  Speaker 4: really clear, we are running a dynamic strategy and how
• 8:40
  Speaker 4: we acquire suiy and do it in the most value
• 8:43
  Speaker 4: or creative manner to our investors in shareholders to drive
• 8:46
  Speaker 4: SUI per share. When we entered into this d at strategy,
• 8:53
  Speaker 4: you know, we all the lead investors alongside Suey right,
• 8:57
  Speaker 4: we did something that was disproportionate in the space. We
• 9:00
  Speaker 4: locked our shares for twelve months to prove to the
• 9:02
  Speaker 4: Sui community and to our shareholders that were long term focused.
• 9:06
  Speaker 4: And that's very interesting. When we acquire Sui through a
• 9:09
  Speaker 4: combination of different strategies, both with our executive team and
• 9:12
  Speaker 4: in partnership with Galaxy, who are our asset manager. We
• 9:14
  Speaker 4: will always try and drive re term for our shareholders,
• 9:17
  Speaker 4: and we will do a lot of purchasing in the market,
• 9:20
  Speaker 4: purchasing on chain, purchasing through different strategic means, nothings off
• 9:23
  Speaker 4: the table in order to drive the most value recruitive
• 9:26
  Speaker 4: form of SUE per share to investors. But you know,
• 9:28
  Speaker 4: longer term, with the balance sheet we build, we will
• 9:31
  Speaker 4: be providing economic security to the network in the form
• 9:33
  Speaker 4: of staking, also running a validator potentially, and then longer
• 9:36
  Speaker 4: term we'll be providing that liquidity back into Sui. We
• 9:40
  Speaker 4: have been investors in deep Book, We've been investors in
• 9:43
  Speaker 4: Sui Lend, We've been early backers of the DeFi ecosystem.
• 9:47
  Speaker 4: We think there are flourishing apps and services around Sui
• 9:51
  Speaker 4: that are very interesting for investors because we will be
• 9:55
  Speaker 4: tasked with driving a compliance safe and risk adjusted yield
• 9:59
  Speaker 4: on that balance sheet in the form of suy pressure,
• 10:01
  Speaker 4: and we think that it's just getting started. One point
• 10:04
  Speaker 4: to mention is that, you know, Tom Lee has done
• 10:07
  Speaker 4: an amazing job right at popularizing the dat space. He's like,
• 10:12
  Speaker 4: you know, eloquent, he is a master of brevity. He's
• 10:15
  Speaker 4: got great anecdotes and analogies, and he's introduced this kind
• 10:19
  Speaker 4: of concept of you know, yield like you know, three
• 10:21
  Speaker 4: percent yield on his balance sheet, which is about you know,
• 10:24
  Speaker 4: I think four to five billion now, and how analysts
• 10:28
  Speaker 4: can see that as earnings and put an earnings multiple
• 10:29
  Speaker 4: amount of ten, fifteen, twenty times, and then that kind
• 10:32
  Speaker 4: of gets forecasters a way to value your potential premium
• 10:37
  Speaker 4: to nav. Now, one thing that's really important to stress, Paul,
• 10:40
  Speaker 4: is that staking on Solana and Ethereum is structurally dilutive.
• 10:46
  Speaker 4: You know, you print new tokens to give those rewards.
• 10:51
  Speaker 4: Sue has a hard cap of ten billion tokens. It's
• 10:53
  Speaker 4: based on the Bitcoin model. It's digitally scarce. And when
• 10:56
  Speaker 4: you stake on Suey you get real yield. You don't
• 10:59
  Speaker 4: print you tokens to provide that return. That's a very
• 11:03
  Speaker 4: fundamental distinction, and I think that the analyst community will
• 11:06
  Speaker 4: start to evaluate that and effectively forecast that based on
• 11:11
  Speaker 4: Sui's unique properties.
• 11:14
  Speaker 1: Well, and I think you hit on it right.
• 11:15
  Speaker 2: There is how analysts are starting to see this space
• 11:18
  Speaker 2: which is in most cases very new to them, a
• 11:21
  Speaker 2: bit foreign actually, and for them to start to understand
• 11:24
  Speaker 2: what's happening in the dammarket of where we are seeing
• 11:27
  Speaker 2: so much growth right now, whether you look at you know,
• 11:30
  Speaker 2: Sharplink or BM and R. You know, obviously within the
• 11:32
  Speaker 2: ethereum ecosystem, it starts to get you really thinking through
• 11:36
  Speaker 2: the things that you guys are doing at Mill City,
• 11:38
  Speaker 2: and I think there's a lot of benefits there, huge benefits. So, Sam,
• 11:41
  Speaker 2: when you look at the foundation being able to support
• 11:44
  Speaker 2: what mil City is doing, how are you guys doing it?
• 11:47
  Speaker 1: What's the process for you guys?
• 11:50
  Speaker 3: Yeah, I mean, so the most important thing, and we
• 11:52
  Speaker 3: get back to this is just sort of ecosystem lignement.
• 11:55
  Speaker 3: So I think like in some ways it's not so
• 11:57
  Speaker 3: so different than what's been happening between the Carriagage team
• 12:00
  Speaker 3: and Missed and Labs before, just because they're working we're
• 12:02
  Speaker 3: working together on so many different teams in the ecosystem. So,
• 12:06
  Speaker 3: you know, as Stephen brought up, they invest they've invested
• 12:08
  Speaker 3: in Deebook and Wars. They have really keen eyes for
• 12:11
  Speaker 3: entrepreneurial talent. They've so they've backed teams like sweetl End
• 12:14
  Speaker 3: and she Oh, they've incubated Double Up. I think Double
• 12:17
  Speaker 3: Up in particular, you know, it's close to my heart
• 12:19
  Speaker 3: because it's founded by an mL alone, and then MIST
• 12:22
  Speaker 3: and Labs is also investment, and there's one of the
• 12:24
  Speaker 3: most creative and sort of experimental teams in the space.
• 12:27
  Speaker 3: So I love watching their success and seeing what they're doing,
• 12:30
  Speaker 3: and so I think like it's a lot of that.
• 12:32
  Speaker 3: And you know, Stephen mentioned the strategy of later like
• 12:35
  Speaker 3: putting the capital back to work in the sue ecosystem.
• 12:37
  Speaker 3: So for us, like I think the most important way
• 12:38
  Speaker 3: to work together is look for the emerging talent, look
• 12:40
  Speaker 3: for the teams, and finally things for the entrepreneur or
• 12:42
  Speaker 3: the entrepreneurs and try to support them together and that's
• 12:45
  Speaker 3: what ends up being invested for the whole ecosystem. Well,
• 12:48
  Speaker 3: I think ahead to me, Stephen was saying about the
• 12:52
  Speaker 3: you know, the fixed apply and real staking yields. Something
• 12:54
  Speaker 3: else too that I think not a lot of people
• 12:56
  Speaker 3: know is that so we also have several built in
• 12:58
  Speaker 3: burning mechanisms. So, for Examp, every time you touch sweet storage,
• 13:02
  Speaker 3: there's something called the non refundel storage fee, or a
• 13:04
  Speaker 3: small amount of what you pay for storage is burned.
• 13:07
  Speaker 3: There's also a notion of immutable objects like move packages.
• 13:10
  Speaker 3: You know, there's over two hundred thousand move packages on
• 13:12
  Speaker 3: the network and every time you create a new package,
• 13:14
  Speaker 3: a little bit of sweet is burnt as well. And
• 13:16
  Speaker 3: so in addition to having the fixed supply, there's also
• 13:19
  Speaker 3: the supply is going down by small amounts when you
• 13:21
  Speaker 3: do each of those actions. I think like these are
• 13:23
  Speaker 3: those sorts of things that folks don't really know, but
• 13:25
  Speaker 3: I think are going.
• 13:25
  Speaker 1: To have to learn deeper.
• 13:27
  Speaker 2: Look, well, there's a lot of hidden value there, which
• 13:30
  Speaker 2: I think is now we're starting to get that out
• 13:32
  Speaker 2: there in the open. To your point back to you, Stephen,
• 13:36
  Speaker 2: in terms of yield when you look at where you're
• 13:39
  Speaker 2: going with the strategy, because the likelihood is we're going
• 13:42
  Speaker 2: to start to see yield products showing up in these
• 13:45
  Speaker 2: companies and most likely will be one of the other,
• 13:48
  Speaker 2: you know, solutions of how.
• 13:49
  Speaker 1: People would add value to these Give.
• 13:52
  Speaker 2: Me your strategy there at Mill City of how you
• 13:54
  Speaker 2: guys see going forward, especially related to yield products.
• 14:00
  Speaker 4: Yeah, so we you know have kind of inside Mill
• 14:06
  Speaker 4: City ventures and non buyking financial lending business at it's core, right,
• 14:09
  Speaker 4: you know, the guys from Mill City, Doug and Joe
• 14:14
  Speaker 4: based on the Minnesota built a great business really you know,
• 14:17
  Speaker 4: honorable kind of management and entrepreneurs. They average about twenty
• 14:21
  Speaker 4: four percent on their loan book. It's really interesting, just
• 14:24
  Speaker 4: as a kind of side step, how semi credit is
• 14:28
  Speaker 4: a space that has not really hit DeFi and I
• 14:31
  Speaker 4: think it's a multi hundred billion dollar opportunity, right. So,
• 14:35
  Speaker 4: you know, as we run this company, we are going
• 14:38
  Speaker 4: to be you know, always thinking about operating revenue and
• 14:43
  Speaker 4: in the future, as we build out mill city ventures,
• 14:47
  Speaker 4: we build a balance sheet, we drive return on that
• 14:49
  Speaker 4: balance sheet, we drive you know, return in the stock.
• 14:52
  Speaker 4: We will be looking into the market for opportunities that
• 14:57
  Speaker 4: have millions of users or hundreds of millions of dollars
• 15:00
  Speaker 4: cash flow that could fit very well on Sui rails.
• 15:04
  Speaker 4: When I think through this kind of tipping point that
• 15:08
  Speaker 4: we've arrived at, what the dat phenomenon represents is the
• 15:12
  Speaker 4: unlocking of capital markets. The US capital markets are so unique.
• 15:17
  Speaker 4: They've been responsible for creating you know, generational companies, right,
• 15:22
  Speaker 4: and we have a very interesting role to play being
• 15:26
  Speaker 4: in partnership and aligned with the Sui Foundation for the
• 15:30
  Speaker 4: long term. You know, we are ecosystem actors, we are
• 15:33
  Speaker 4: ecosystem players. We want to play a very dynamic role
• 15:38
  Speaker 4: in the growth of Sue's value in Sue's vision longer term,
• 15:42
  Speaker 4: and we have a very different kind of operating cadence
• 15:46
  Speaker 4: than say a foundation does. We can do things that
• 15:48
  Speaker 4: a foundation doesn't want to do, cannot do, cannot seem
• 15:51
  Speaker 4: to be doing. So that opens up like a whole
• 15:53
  Speaker 4: universe of commercial possibilities that haven't hasn't been seen before
• 15:57
  Speaker 4: in crypto. And you're you know, you're, you're, you're, You're
• 16:00
  Speaker 4: empowered by an ecosystem that is growing every day, like
• 16:06
  Speaker 4: it's two years old. It's got all time transaction volumes
• 16:09
  Speaker 4: and even surpassing Selona at this point. Yeah, it's got
• 16:12
  Speaker 4: increasing users on the chain, it's got increasing developer growth,
• 16:16
  Speaker 4: the fastest developer growth in the past year of any blockchain,
• 16:18
  Speaker 4: a huge increase in TVL. So, you know, winding it
• 16:22
  Speaker 4: forward two, three, four years, you know where do I
• 16:24
  Speaker 4: think the serer price is going? Well? I think so
• 16:26
  Speaker 4: we could outperform Solana. I think it could outperform e
• 16:29
  Speaker 4: Theoryum in two years in terms of it's all time
• 16:31
  Speaker 4: high and FTV like, that's that's easily feasible.
• 16:34
  Speaker 1: What about vaults?
• 16:35
  Speaker 2: Okay, if you look at the vaults and the value
• 16:38
  Speaker 2: of where these vaults are, I'm looking at just momentum
• 16:40
  Speaker 2: right now, I look at this and I wonder, maybe this.
• 16:43
  Speaker 1: Is a little risky.
• 16:44
  Speaker 2: Uh, it hasn't you know, there hasn't reached a tipping
• 16:47
  Speaker 2: point just yet.
• 16:48
  Speaker 1: Most likely it will.
• 16:50
  Speaker 2: But until that, do you think this would be something
• 16:52
  Speaker 2: that you guys could just run a vault? Why not
• 16:55
  Speaker 2: go to a mill city vault?
• 16:57
  Speaker 4: M Yeah. Look, in terms of of the you know,
• 17:02
  Speaker 4: strategies we will execute on, we're going to be very
• 17:04
  Speaker 4: public and very transparent with everything. You saw latest kind
• 17:08
  Speaker 4: of results in terms of how much sewey, we hold,
• 17:10
  Speaker 4: how much we've required. We're going to publish that every week,
• 17:13
  Speaker 4: and transparency is critical in these deities in every facet
• 17:17
  Speaker 4: of how you operate. And yeah, you know, nothing is
• 17:22
  Speaker 4: kind of off the table in terms of how we
• 17:23
  Speaker 4: drive return, but the key thing is to do it
• 17:25
  Speaker 4: in a safe, risk adjusted and compliant way for shareholders. Right. So,
• 17:31
  Speaker 4: we've looked at many different strategies. We want to be
• 17:35
  Speaker 4: a kind of you know, really significant actor in the
• 17:40
  Speaker 4: growth of Suie's ecosystem, and that involves being an actor
• 17:43
  Speaker 4: in economic security, in the proliferation of DeFi, in providing liquidity.
• 17:48
  Speaker 4: There's a ton of different avenues for growth. Also, you know,
• 17:53
  Speaker 4: if you look at the investor appetite now for for return.
• 17:59
  Speaker 4: One of the you know, the other companies that we
• 18:00
  Speaker 4: invested in with Galaxy as well, is a company called
• 18:03
  Speaker 4: Sota sot R Carritage. That's a that's a crypton native
• 18:07
  Speaker 4: insurer where investors now are getting institutional insurance return pools
• 18:15
  Speaker 4: on their capital by participating in the growth of a
• 18:19
  Speaker 4: crypto native insurance protocol. I think things like that will
• 18:23
  Speaker 4: emerge in Suie as well. And so our job as
• 18:26
  Speaker 4: the management is to assess all the opportunities, build a
• 18:32
  Speaker 4: dynamic and safe and risk adjusted return strategy, and build
• 18:37
  Speaker 4: a balance sheet. And I think that as part of
• 18:39
  Speaker 4: the investor road show during the pipe and subsequently with
• 18:44
  Speaker 4: many of the hedge funds and investors that I've met with,
• 18:48
  Speaker 4: they see a huge opportunity in Sui DeFi. They also
• 18:53
  Speaker 4: see a huge opportunity in the ambitions for Suey to
• 18:57
  Speaker 4: be the home of bigcoin DeFi. Already we've seen Ika
• 19:01
  Speaker 4: which has been announced recently, which has got like novel
• 19:04
  Speaker 4: kind of two PC NPC algorithms that allows for you
• 19:09
  Speaker 4: to essentially provide financing against kind of native bigcoin assets
• 19:15
  Speaker 4: without bridging, which is which is really innovative because only
• 19:18
  Speaker 4: three percent of all bitcoin, I think is wrapped, and
• 19:21
  Speaker 4: you know, I'm a bitcoin er. I don't want to
• 19:22
  Speaker 4: bridge my bitcoin. I don't want to have rap versions
• 19:25
  Speaker 4: of my bitcoin and being able to you know, use
• 19:29
  Speaker 4: the object orientated model and move which allows for programmability
• 19:32
  Speaker 4: of objects and to treat bitcoin as an object. On
• 19:36
  Speaker 4: sue to leverage all of the innovation that sound built, right,
• 19:40
  Speaker 4: I think it's going to be a huge thing in
• 19:41
  Speaker 4: the future, and many institutions are saying to me, Okay, Steve,
• 19:44
  Speaker 4: tell me more about that bitcoin yield story on Suey,
• 19:46
  Speaker 4: and there's going to be very very exciting things coming
• 19:49
  Speaker 4: out of the Seuey and the Misting team, I think
• 19:51
  Speaker 4: in the next six to twelve months on that.
• 19:53
  Speaker 1: Hey, Sam, will you look at what's happening?
• 19:55
  Speaker 2: Go ahead, go ahead, I think you had something to
• 19:58
  Speaker 2: add there for sure.
• 19:59
  Speaker 3: Yeah, just out onto that a little bit. So like
• 20:01
  Speaker 3: real world assets and crypto is certainly a big thing
• 20:05
  Speaker 3: and like an important focus for us, but I think
• 20:07
  Speaker 3: our feeling and sort of that point Stephen is saying,
• 20:10
  Speaker 3: is that the biggest real world asset that's already tokenized
• 20:12
  Speaker 3: and already there, but it is not really usable for
• 20:15
  Speaker 3: programmability for finance is bitcoin, and so he gave the
• 20:18
  Speaker 3: three percent numbers. So that's something we're really really focused
• 20:20
  Speaker 3: on as an ecosystem. The bitcoin share of our the
• 20:24
  Speaker 3: bitcoin share of sweet TVL is increasing a lot onboarded
• 20:28
  Speaker 3: projects like Lombard, like Babylon, like sat Layer. Steven mentioned
• 20:32
  Speaker 3: that the Eco team is doing some particularly the native
• 20:35
  Speaker 3: team building and eCos doing some really interesting stuff with
• 20:38
  Speaker 3: bitcoin yield with high security, and so this is definitely
• 20:41
  Speaker 3: an important focus of us. As we get into other
• 20:43
  Speaker 3: real world assets that involve actually tokenizing thing, that's important too.
• 20:46
  Speaker 3: But the thing with bitcoin is it's already sitting there,
• 20:48
  Speaker 3: and you just need the coordination and the programmability that
• 20:51
  Speaker 3: so we can provide to take advantage.
• 20:54
  Speaker 2: What about tokenized stocks, If you look at the trading
• 20:57
  Speaker 2: symbol MCVT, the potential to go into a token iszed world.
• 21:02
  Speaker 2: We're going to see that, is there a likelihood that
• 21:05
  Speaker 2: we could start you know, trading mcvt, you know, within
• 21:08
  Speaker 2: the SUI ecosystem.
• 21:10
  Speaker 3: Yeah, so from a performance perspective, like we certainly thought
• 21:13
  Speaker 3: about that sort of thing from the beginning, Like when
• 21:15
  Speaker 3: we built say, the main thing that we did that
• 21:17
  Speaker 3: was different from Libra was Libra was a single box
• 21:20
  Speaker 3: system that was designed to handle payments basically payments between
• 21:25
  Speaker 3: various wallets that are for cross border and that's a
• 21:28
  Speaker 3: that's a much less demanding workload than trading. You know,
• 21:31
  Speaker 3: with trading you have to do hundreds of thousands or
• 21:33
  Speaker 3: not millions of transactions per second. The latency is super
• 21:36
  Speaker 3: super important, and so we thought about how can you
• 21:40
  Speaker 3: design sweet so that as you add more cores to
• 21:43
  Speaker 3: the machine, as you add more machines to the system,
• 21:45
  Speaker 3: you continue to get more and more throughput, and that
• 21:47
  Speaker 3: you can do this, you know, not just as a
• 21:49
  Speaker 3: one time thing, but do it elastically like the hyperscalers.
• 21:51
  Speaker 3: Do you know, provision war machines because Christmas is coming up,
• 21:54
  Speaker 3: or because it's a dasy trading day, scale it back
• 21:56
  Speaker 3: down to keep the operational costs reasonable at other times.
• 22:00
  Speaker 3: In addition, we've thought a lot about when you add
• 22:02
  Speaker 3: additional machines, how do you make sure you don't add latency.
• 22:05
  Speaker 3: You know, we don't want to have to trade off
• 22:06
  Speaker 3: latency input as much as and we just want to
• 22:08
  Speaker 3: be able to scale horizontally so that's the use case.
• 22:12
  Speaker 3: So you know, once you talk about token I stocks
• 22:14
  Speaker 3: or bringing somewhere all the stock market and chain, these
• 22:16
  Speaker 3: things start to become really really important in terms of like, one,
• 22:19
  Speaker 3: will that actually be happening. Well, you know, I think
• 22:22
  Speaker 3: there's lots of these pilots there. There are things that
• 22:24
  Speaker 3: are good and bad about them. Certainly we're interested in
• 22:27
  Speaker 3: trying these sorts of things on sweet, But I think
• 22:28
  Speaker 3: the key thing is if you pilot this somewhere where
• 22:31
  Speaker 3: you know, it's a layer two and it's running on
• 22:33
  Speaker 3: the EVM and you have sequential transaction through, but there's
• 22:35
  Speaker 3: going to be a limit to the size of your pilot.
• 22:37
  Speaker 3: Whereas we've really designed things so that as ambitious as
• 22:39
  Speaker 3: someone wants to be, they can come and try it
• 22:41
  Speaker 3: out on Swite and there won't be any limit to
• 22:43
  Speaker 3: their ambitions in terms of scale.
• 22:45
  Speaker 2: Well, and this is going to open up a lot
• 22:46
  Speaker 2: of different projects and companies, I think, into treasuries that
• 22:50
  Speaker 2: we have not seen just yet, you know, because right
• 22:53
  Speaker 2: now it's been mostly direct exposure to the you know,
• 22:55
  Speaker 2: the base asset. And I think they're going to get creative,
• 22:59
  Speaker 2: especially if you think about just this wee ecosystem, and
• 23:02
  Speaker 2: I'm kind of curious, Sam, is it sweet or suey?
• 23:05
  Speaker 1: Everybody always has this conversation.
• 23:08
  Speaker 3: Yeah, it's a funny question.
• 23:09
  Speaker 4: Ray.
• 23:09
  Speaker 3: So the original intention is that it's pronounced sweet like
• 23:13
  Speaker 3: sweet without the tea is the way I used to
• 23:15
  Speaker 3: say it, But I think at this point like the
• 23:16
  Speaker 3: many different ways to pronounce it. You hear, you hear
• 23:20
  Speaker 3: sway is part of the lore. And so you know,
• 23:25
  Speaker 3: I I embraced the lake.
• 23:26
  Speaker 1: It's it's there.
• 23:27
  Speaker 2: You go, man, you know where we're I love it
• 23:31
  Speaker 2: all right, guys, The ticker is MCVT. You guys can
• 23:34
  Speaker 2: of course check it out of their learn a little
• 23:36
  Speaker 2: bit more about Mill City and what they're doing. Uh,
• 23:39
  Speaker 2: it's been great having both of you guys on the show.
• 23:41
  Speaker 2: We'll definitely try to do more roundtables like this. So
• 23:43
  Speaker 2: thanks for coming in today. We appreciate it.
• 23:46
  Speaker 3: Thanks you bet you bet?
• 23:48
  Speaker 1: Are you guys?
• 23:49
  Speaker 2: If you are not part of the Diamond Circle, make
• 23:51
  Speaker 2: sure and jump in on that. That is our own
• 23:53
  Speaker 2: private group where you guys can join for absolutely free.
• 23:56
  Speaker 2: We do a lot of deep dives in terms of
• 23:58
  Speaker 2: additional research, all sorts of good stuff over there. We'll
• 24:01
  Speaker 2: leave a link down below, and as I said, absolutely freak.
• 24:04
  Speaker 2: Can also catch me out there on x at Paul Baron.
• 24:07
  Speaker 2: We'll catch you next time right here on The Paul
• 24:09
  Speaker 2: Baron Show.