Latest / CRYPTO 101 / BREAKING NEWS: Binance HACKED for $6.3 BILLION — Is Your Crypto Safe?

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BREAKING NEWS: Binance HACKED for $6.3 BILLION — Is Your Crypto Safe? · CRYPTO 101

• 0:08
  [SPEAKER_02]: All right, everybody, welcome back to the crypto rundown.
• 0:11
  [SPEAKER_02]: I'd like to say a fun spooky Halloween special.
• 0:14
  [SPEAKER_02]: It is a Halloween special because it's damn near scary out there in these streets.
• 0:18
  [SPEAKER_02]: An absolute historic day in crypto yesterday, the biggest.
• 0:24
  [SPEAKER_02]: hack in crypto history just half an over six billion dollars on Binance has been hacked.
• 0:31
  [SPEAKER_02]: It's tied to North Korea.
• 0:33
  [SPEAKER_02]: We're going to break down everything that you need to know about the six billion dollar Binance hack is your crypto safe.
• 0:39
  [SPEAKER_02]: I couldn't just bring Brian today.
• 0:41
  [SPEAKER_02]: I had to go and get Joe.
• 0:42
  [SPEAKER_02]: We need as many minds at the table here as we can get on this Friday.
• 0:48
  [SPEAKER_02]: It's going to be
• 0:50
  [SPEAKER_02]: We're going to go through all over the news that's happened.
• 0:52
  [SPEAKER_02]: It hasn't even been 20 for hours.
• 0:54
  [SPEAKER_02]: Been monitoring it all night.
• 0:55
  [SPEAKER_02]: And I'm sure we're going to continue to get news and tune in next week for the updates.
• 1:00
  [SPEAKER_02]: But boy, it's just an absolute historic historic hack.
• 1:04
  [SPEAKER_02]: Uptober, over to the last two, right?
• 1:07
  [SPEAKER_02]: We had the October 10 last year.
• 1:09
  [SPEAKER_02]: We have an October 29th hack this year.
• 1:13
  [SPEAKER_02]: Tough in the crypto streets, but
• 1:16
  [SPEAKER_02]: for such a massive hack and again we don't know the full fallout of the price action quite yet we're going to dive into where we think we might be affected and how much might be affected but there is some positives to this because if you would have said you know two three years ago that there would be a six billion dollar hack I don't think you'd see Bitcoin only down you know five percent I don't think you'd see Ethereum only down about five percent on the twenty-four hour window so Brian let me let me hand it off to you first just you know what
• 1:42
  [SPEAKER_02]: It's almost like a therapy session, friends on the couch.
• 1:45
  [SPEAKER_02]: You're had to feel had you hear the news.
• 1:46
  [SPEAKER_02]: Where were you?
• 1:47
  [SPEAKER_02]: You know, how are you doing?
• 1:50
  [SPEAKER_01]: Yeah, I think the first place I saw the news was I was just getting dinged through to the telegram channels a couple slack channels Seeing people talking about what was happening and obviously first off the the Binance hack is is absolutely insane if you ask me I think the kind break it down what 6.3 billion with a B Crypto stolen and put that in perspective remember that vibe it
• 2:14
  [SPEAKER_01]: a buy bit hack last year.
• 2:15
  [SPEAKER_01]: I think that was right around like 1.5 billion.
• 2:18
  [SPEAKER_01]: So we're looking at like four times that amount.
• 2:22
  [SPEAKER_01]: And investigators are, we were just talking about this before the show.
• 2:25
  [SPEAKER_01]: Investigators are pointing towards North Korea and looking into it.
• 2:30
  [SPEAKER_01]: It's a hacker group called Trader Trader, which was also linked to the buy bit hack, which I found really interesting.
• 2:40
  [SPEAKER_01]: So most of the money was moved about 20 minutes after the hack.
• 2:44
  [SPEAKER_01]: So that's also kind of the world we're in right now.
• 2:47
  [SPEAKER_01]: You know, things move faster, they're quicker, they're more sophisticated.
• 2:51
  [SPEAKER_01]: This hack happens and the money's getting moved 20 minutes later when, you know, I'm just like, scratch my head trying to figure out what's absolutely happening.
• 2:59
  [SPEAKER_01]: So this is, this is where we're at right now.
• 3:01
  [SPEAKER_01]: I mean, we have institutional adoption.
• 3:03
  [SPEAKER_01]: We have ETFs who have these massive developments.
• 3:09
  [SPEAKER_01]: is some vulnerability, um, security vulnerability, especially when we're talking about the world's largest crypto exchange.
• 3:18
  [SPEAKER_01]: So not thrilled this happened the day before Halloween, another October event was last year, 10, 10, 10, 10, 10, it was an issue.
• 3:29
  [SPEAKER_01]: Again, something not so great happens in
• 3:36
  [SPEAKER_01]: And I'll kick it over to you guys.
• 3:38
  [SPEAKER_01]: I do like to look on the bright side of my glasses, have full type of guy.
• 3:42
  [SPEAKER_01]: I would expect the market to have reacted a lot worse than what it is right now, but it's not great.
• 3:50
  [SPEAKER_02]: Yeah, Joe, before you take over and give your view on the events, let's just give a quick read through of this is Binance's official post saying that security incident may have involved a compromised dev ops engineer lab top.
• 4:04
  [SPEAKER_02]: I saw some pieces of press hits that said, it might have been a LinkedIn fishing link, or if people are proud of their jobs, obviously, but they're advertising that they're, you know, Binance dev ops or anybody in crypto, you're going to get
• 4:18
  [SPEAKER_02]: extra fishing.
• 4:20
  [SPEAKER_02]: No evidence of any wallet private keys leak.
• 4:22
  [SPEAKER_02]: We'll share details of technical post-mortem once the investigation is complete.
• 4:26
  [SPEAKER_02]: This set off a chain of events, which was really interesting around all the things that got frozen.
• 4:31
  [SPEAKER_02]: Three billion frozen on the Binance chain.
• 4:34
  [SPEAKER_02]: It seemed so far.
• 4:34
  [SPEAKER_02]: No circle got involved publicly traded company.
• 4:37
  [SPEAKER_02]: They started freezing.
• 4:38
  [SPEAKER_02]: So it was an interesting to see the cascade of
• 4:43
  [SPEAKER_02]: Regulation that was going on is as this industry has matured, but Joe, to hand it off to you to give your, you know, your 10,000-foot view, how are you?
• 4:52
  [SPEAKER_02]: Are you okay?
• 4:54
  [SPEAKER_00]: I'm fine.
• 4:54
  [SPEAKER_00]: I'm just picking my eyes because I have a new born baby.
• 4:57
  [SPEAKER_00]: I didn't lose one ounce of sleep over this, not like I get sleep anyways.
• 5:01
  [SPEAKER_00]: I heard about this through Alex, shout out to Alex from our from crypto one and one.
• 5:06
  [SPEAKER_00]: He was like, hey, I think Biden's got hacked and that was in the afternoon.
• 5:12
  [SPEAKER_00]: And then I go, I'm like, what the heck's going on there?
• 5:14
  [SPEAKER_00]: I go and I'm like, it's 6.3 billion.
• 5:16
  [SPEAKER_00]: He just keeps climbing.
• 5:17
  [SPEAKER_00]: Yeah.
• 5:17
  [SPEAKER_00]: It was wild and has been 24 hours, but it's been amazing to see just everyone, you used to be just one guy, you know, that's a sleuth, right?
• 5:26
  [SPEAKER_00]: Now like everyone with AI is like tracking every, there's a dashboard to see live cashouts of word of unsurmoving, they gamified it in a way where you can see this like a sporting event and it's interesting.
• 5:39
  [SPEAKER_00]: But it doesn't scare.
• 5:40
  [SPEAKER_00]: I mean, I just looked at a bit of information.
• 5:42
  [SPEAKER_00]: I kind of came to a quick conclusion.
• 5:44
  [SPEAKER_00]: Really, as of this morning of why this is not really that crazy.
• 5:49
  [SPEAKER_00]: The contagion is not as bad as FTX, right?
• 5:51
  [SPEAKER_00]: There's not exploited loans or like liquidity polls or over leveraged.
• 5:55
  [SPEAKER_00]: Just no over leveraging here, right?
• 5:57
  [SPEAKER_00]: Basically, guys, laptop got hacked.
• 5:59
  [SPEAKER_00]: The blockchain did not break cryptography, did not break what broke was social engineering, which is important to note.
• 6:06
  [SPEAKER_00]: And the response has been historic.
• 6:09
  [SPEAKER_00]: It seems historic because of the number of the value and we'll get into this with some links that we have but in terms of the largest hack compared to the market cap of what crypto was overall at that point in time this is not the biggest hack it's the biggest valued hack.
• 6:25
  [SPEAKER_00]: but it's not the biggest in terms of like percentage to market cap.
• 6:28
  [SPEAKER_00]: And that's kind of how I want to look at it, right?
• 6:31
  [SPEAKER_00]: Because how big was exposure to it over our market?
• 6:35
  [SPEAKER_00]: And that's why we're not seeing the market move at all, which is very interesting.
• 6:38
  [SPEAKER_00]: So I guess I'm not as, as what is it?
• 6:42
  [SPEAKER_00]: uh, in a frenzy about this.
• 6:43
  [SPEAKER_00]: I'm just like another day another hack.
• 6:46
  [SPEAKER_00]: I kind of set this in my mind.
• 6:47
  [SPEAKER_00]: Like when I started putting a bunch of money into Robinhood's 7% yield because I'm like, oh, okay.
• 6:54
  [SPEAKER_00]: So I'm just like when Robinhood gets scam like I'm very planning his out because like I put a bunch of money in there like
• 7:00
  [SPEAKER_00]: five figures in the stable coins.
• 7:01
  [SPEAKER_00]: I'm like, it's not FTI's in sure.
• 7:03
  [SPEAKER_00]: I'm like, when they get hacked, can they, you know, pay back?
• 7:06
  [SPEAKER_00]: I'm like, yeah, by the way, pay back $1.6 billion.
• 7:07
  [SPEAKER_00]: I'm like, Robin Hood's fine.
• 7:08
  [SPEAKER_00]: I checked her treasury and this just proves it right here.
• 7:11
  [SPEAKER_00]: And we'll get into how they're going to pay back the three billy in a second.
• 7:15
  [SPEAKER_00]: But yeah.
• 7:15
  [SPEAKER_00]: they are responsible for this and it's great to see this precedence set by an exchange that they're going to pay back.
• 7:23
  [SPEAKER_02]: Well, at least they're talking that book as you said, CZ, you know, who was being loud, yesterday on Twitter saying everything saved everything safe.
• 7:30
  [SPEAKER_02]: And then this one pops up, he was like, uh, lost his life here a little bit more than we thought, but we will cover.
• 7:39
  [SPEAKER_02]: And then you could see down there, Elon starting to troll.
• 7:44
  [SPEAKER_02]: I thought that was really, really classic Elon, honestly.
• 7:48
  [SPEAKER_02]: But Elon, going into the LSPF reference there.
• 7:51
  [SPEAKER_02]: And John, you're into this.
• 7:54
  [SPEAKER_02]: So what are your thoughts there?
• 7:56
  [SPEAKER_02]: Is CZ and Elon jousting?
• 7:58
  [SPEAKER_02]: And then you can kind of roll that into, like you said, CZ is doing Twitter math or X math with everybody saying that they have funds to pay people back.
• 8:07
  [SPEAKER_02]: So, it seems like the narrative is that Binance is going to try and make people hold from this.
• 8:13
  [SPEAKER_00]: Yeah, there's a screen.
• 8:15
  [SPEAKER_00]: CZ posted this and you know, it takes to have a grain of salt because he's no longer.
• 8:18
  [SPEAKER_00]: He's just a shareholder supposedly.
• 8:21
  [SPEAKER_00]: They set that in their safe food fund to have like one point something billion to exit out.
• 8:25
  [SPEAKER_00]: coverage for the three billion because half the loot's ready frozen, which is we get double click into that in a second, which is actually a bullish thing for the crypto industry so half the loot's ready like they can't touch it to have but half the loot they can.
• 8:38
  [SPEAKER_00]: So they have to cover up three billion.
• 8:40
  [SPEAKER_00]: So one point, something, whatever it is, just call it one point five billions, cover it from your safe food fund, and we'll find a link for this.
• 8:46
  [SPEAKER_00]: And then their CZ says to make up the gap, at least on his tweet is like, we got one billion in space.
• 8:52
  [SPEAKER_00]: Xbox, this space Xbox is not because CZ is down, like 5% on a day, and the people are wondering, if that's the case, right?
• 8:58
  [SPEAKER_00]: Because he's threatened to unload it.
• 9:00
  [SPEAKER_00]: I'm not willing to say it's a threat.
• 9:02
  [SPEAKER_00]: Like he might have to do that to cover, and they said the rest of it, you know, call it, you know.
• 9:06
  [SPEAKER_00]: have to go into Bill and they're going to maybe recover themselves or through insurance or whatever.
• 9:11
  [SPEAKER_00]: So yeah, very interesting troll and interesting to see someone stand up to E-line and I wouldn't have put him in his place, but you know, basically tell him to shut up.
• 9:22
  [SPEAKER_02]: Yeah, interesting.
• 9:23
  [SPEAKER_02]: And now I'm just kind of doing live producing here, but Chris Perkins name we know well that on the pod multiple times did this breakdown.
• 9:31
  [SPEAKER_02]: So this is just doing this live, but like 6.3 million 6 million billion hacked Start to their circle quickly mobilize to freeze 3 billion just like Joe said so half was basically frozen right away.
• 9:43
  [SPEAKER_02]: I think it was within the hour right.
• 9:44
  [SPEAKER_02]: It was in 20.
• 9:45
  [SPEAKER_02]: 20, 30 minutes.
• 9:46
  [SPEAKER_02]: They got on that.
• 9:47
  [SPEAKER_02]: So interesting to see that.
• 9:48
  [SPEAKER_02]: And then for the rest of it, Binance is stated it will cover all the losses out of the safe Sapphu fund.
• 9:56
  [SPEAKER_02]: So yeah, I guess kind of like what Joe said, the them coming out in this verbage, and then you got to see the action follow through right.
• 10:03
  [SPEAKER_02]: And so I think
• 10:05
  [SPEAKER_02]: If I'm asking the question, we know Biden, so huge, so profitable in the money, but it's like they aren't a US regulated business right and they don't have earnings reports.
• 10:13
  [SPEAKER_02]: We don't really have super clean insight into, you know, their holdings and their investments and their balance sheets and their cash flows.
• 10:19
  [SPEAKER_02]: And, you know, I think we all believe us three that they can make everybody hold, but this is kind of the thought I think of, um,
• 10:27
  [SPEAKER_02]: the CFTC and the SEC trying to propose and get these regulations is they want companies to come in and abide by these regulations and that would be cybersecurity would fall under that, right?
• 10:38
  [SPEAKER_02]: And so, whatever happened on if you're a reverse engineering this hack, I'm sure that the CFTC chairman, I saw he was doing press hits this morning and SEC gov they're going to want to try and include cybersecurity measures for, you know, I dance even though they're not a US-regulated company.
• 10:57
  [SPEAKER_01]: What a world we're in right now.
• 11:00
  [SPEAKER_01]: Imagine getting hacked for six billion dollars so your company getting hacked or you're, you know, who you're associated with.
• 11:06
  [SPEAKER_01]: Then you got, you know, seize these pie arguably one of the richest people in the world.
• 11:10
  [SPEAKER_01]: And then there's the Elon who's arguably one of the richest people in the world, you know, from a document at standpoint.
• 11:16
  [SPEAKER_01]: And then you got Elon Musk up in your Twitter replies, you know, pretty much trolling you and telling you, you know, you know, it's zero day again.
• 11:25
  [SPEAKER_01]: And then you have,
• 11:26
  [SPEAKER_01]: You have live footage of like then CZ like Joe said they they gave 500 million to the Twitter accusation acquisition and now it's worth a billion dollars.
• 11:37
  [SPEAKER_01]: Just only in crypto right only in this day and age where information is at our fingertips where these massive billionaires trillionaires whatever they're whatever they're worth now.
• 11:49
  [SPEAKER_01]: just going at each other and Twitter replies after billions of dollars hacked There's never a boring day in this world anymore, you know, we should have a rundown every day at this point Yeah, yeah Not good Joe and something happened in the world of AI this week that was really big all the CTOs Or I'm sorry to see so's which is you know information security officers of Osilacon Valley was up in her toes
• 12:15
  [SPEAKER_00]: because something called like a PHP attack of vulnerability, which is basically just AI discovering vulnerabilities.
• 12:21
  [SPEAKER_00]: So then, why I'm saying that?
• 12:23
  [SPEAKER_00]: Because Elon responded to this crypto incident saying, hey, every day, zero day, which is basically there could be an exploit for your security flaws that AI finds.
• 12:32
  [SPEAKER_00]: So it's not basically he's saying in response to this crypto incident, it's not just going to be crypto, it's just going to happen every single day across all software companies and it happened this week in Silicon Valley.
• 12:44
  [SPEAKER_00]: So it was a very big thing, it moved crypto stocks, I'm sorry, it moved AI stocks down overall to alongside the macro.
• 12:50
  [SPEAKER_00]: So Elon did respond to this saying, hey, this is not going to be an isolated incident in crypto.
• 12:55
  [SPEAKER_00]: It's going to start happening basically everywhere.
• 12:58
  [SPEAKER_00]: So
• 12:58
  [SPEAKER_00]: a little bit of fair, a little bit of fair mongering also, and you know, but AI has, you know, positive was that shields and response too.
• 13:05
  [SPEAKER_00]: So everyone's, you know, they have weapons, we got shields, it's just basically who's going to win it in the day.
• 13:10
  [SPEAKER_02]: Yeah, it's a great point, and it'd be interesting when the, you know, I think it's an inevitability at this point, probably when the first US bank suffers some AI hack and, you know, money gets drained and all that stuff obviously will be interesting and the evolution of this fast-paced technology world never stops, but
• 13:34
  [SPEAKER_02]: Circling back we had this tweet from Josh Frank from the tie he was kind of breaking down Everything that was going on.
• 13:40
  [SPEAKER_02]: We can come back to that.
• 13:42
  [SPEAKER_02]: I thought it was interesting He was kind of he did a great job this tweet freaking crust.
• 13:46
  [SPEAKER_02]: He's not he's also a Josh actual friend of the show but friends of ours like I've spent a lot of time with Josh at the tie at the conference the summer
• 13:55
  [SPEAKER_02]: Um, so I just want to shout out, he's not a big, he's not tweeting all the time, but he we put this thread together pretty quick and it absolutely crushed because it was just a great, great tweet.
• 14:05
  [SPEAKER_02]: Um, kind of tracking the wallet here and then I think, um, he was kind of highlighting like the three most concerning positions relative to trading volume, the fun token, the prom reserve rights.
• 14:16
  [SPEAKER_02]: These are, you know, obviously smaller projects.
• 14:19
  [SPEAKER_02]: I'm not super familiar with those.
• 14:25
  [SPEAKER_01]: Oh, yeah, I was kind of getting up to speed on Josh's tweet because you saw it on the sheet and I thought it was really interesting.
• 14:31
  [SPEAKER_01]: So, you know, Bitcoin and Ethereum obviously have massive amounts involved in this hack, but those markets are extremely liquid, so they're able to digest this selling pressure.
• 14:41
  [SPEAKER_01]: But then look at Tron, he highlighted, and according to his number, it's a stolen TRX represented almost 60% of the daily trading volume.
• 14:50
  [SPEAKER_01]: And that's a ton of selling pressure.
• 14:53
  [SPEAKER_01]: And then we got these smaller tokens like you just noted.
• 14:55
  [SPEAKER_01]: Fun, prom, R, R, S, R, I believe, and handful of others.
• 15:00
  [SPEAKER_01]: But fun absolutely got crushed from this hackers start dumping the tokens in this really small liquidity pool.
• 15:06
  [SPEAKER_01]: So that's something we've talked about before is liquidity matters.
• 15:10
  [SPEAKER_01]: I always say liquidity is king, just because a wallet says you have a certain dollar amount, doesn't mean you could sell everything for that price.
• 15:17
  [SPEAKER_01]: And when you've got hackers trying to liquidate stolen assets, they're not exactly worried about getting the best entry or the best exit.
• 15:26
  [SPEAKER_01]: So I would be pretty cautious with some of the smaller tokens until we have a better understanding what's going on, but it was a great tweet by him.
• 15:35
  [SPEAKER_01]: Does feel like Bitcoin and Ethereum can die like if these hackers get the selling it it's going to digest it well that's why we're not seeing like huge 20% pullbacks in these because they're pulling out this liquidity, but these smaller tokens.
• 15:51
  [SPEAKER_01]: Mercy to anybody that was holding on to them to the hacker, you know, and that liquidity is a big deal and.
• 15:59
  [SPEAKER_01]: Yeah, that's that's going to affect it.
• 16:01
  [SPEAKER_02]: So but great tweet by Josh shout out because you put me on it and I read through it and it really educated me Yeah, that's why I'm here to to troll through the the garbage that is the internet and try to find small pieces for us to a digest and find value and see
• 16:16
  [SPEAKER_02]: Yeah, just I think again like just building on this point anybody that's listening and still here with us the the positives of this are, you know, just the market cap of Bitcoin, you know, it's a point zero nine percent of the market cap for percent of the following ETH point three two percent of the market cap
• 16:35
  [SPEAKER_02]: So, I wouldn't say it's nothing to worry about, but you guys just teed it up perfectly.
• 16:41
  [SPEAKER_02]: It's just digesting it well, it's digesting it well, and obviously stuff like this.
• 16:47
  [SPEAKER_02]: It's kind of where you can zoom out almost.
• 16:50
  [SPEAKER_02]: and say, hey, you know, there are some problems here.
• 16:53
  [SPEAKER_02]: Obviously, buy an ant has a security problem.
• 16:56
  [SPEAKER_02]: But is this affecting the thesis of some of the projects that you know and you like for long-term vision?
• 17:03
  [SPEAKER_02]: Or is this possibly leading to an opportunity to possibly buy a lower?
• 17:08
  [SPEAKER_02]: I know we'll do like a little teaser, but there were some awesome news out of hyperlink and we're going to cover that.
• 17:13
  [SPEAKER_02]: We want to do a more of a proper show on it next week.
• 17:17
  [SPEAKER_02]: But there's just, you know, there's probably going to be some opportunities with good projects, whether it's people panicking, we can's margin calls, it's going to be something to monitor here.
• 17:27
  [SPEAKER_02]: So if you're somebody that's interested in, you know, getting more up-to-date information and research, I know, you know, Brian Joe, the team, I think that we always have our reports.
• 17:37
  [SPEAKER_02]: If you guys want to go down and check the link, there's the number one coin owned right now, you know, we've kind of backlogged and said, hey, this is nothing to do with the hack.
• 17:46
  [SPEAKER_02]: We still believe in this long-term thesis, so if you're interested in getting reports like that check the links below Because again, there might be some opportunities here to buy the dip Let's see market maturation as we as we are continuing on.
• 18:00
  [SPEAKER_00]: I'm just gonna share this whoever put that link in there take it Yeah, just double click on an Anthony Message right there basically just talked about the response of this
• 18:15
  [SPEAKER_00]: It happens so quickly and how everything is continuing as normal.
• 18:20
  [SPEAKER_00]: It's just withdrawals are paused on Binance, the pause is continuing and trading should be open in like 48 hours, which is pretty crazy because hack for six billion and you're like, I was just going to start opening up business again soon, but really it just shows how mature and how effective the blockchain is overall.
• 18:36
  [SPEAKER_00]: Nothing, nothing broke in that respect and so, you know, just a, just a, um,
• 18:43
  [SPEAKER_00]: a touch there and you click on the payback note basically what we talked about earlier right underneath the market match maturation it'll show basically what we alluded to earlier which was sorry Joe was that the payback note yeah the payback threat right there basically talked about the fund
• 19:08
  [SPEAKER_00]: There he goes.
• 19:09
  [SPEAKER_00]: So basically, six billion hacked, three billion frozen, so then how to make up the gap, right?
• 19:13
  [SPEAKER_00]: One point, something, intersafew fun.
• 19:15
  [SPEAKER_00]: and then the gaps too billion to have it with SpaceX stocks, other threatening, basically it's a threat, like, hey, we're gonna sell SpaceX and then the remaining thing, they're gonna fill the gap.
• 19:24
  [SPEAKER_00]: So they really have the funds, so no one's really scared off in this market because of that.
• 19:30
  [SPEAKER_00]: So that's something that's positive for everyone overall.
• 19:33
  [SPEAKER_00]: That's being affected.
• 19:34
  [SPEAKER_00]: And it's not a great thing, but we, at least there's a plan, right?
• 19:38
  [SPEAKER_00]: It's a response that's immediate versus, you know, drawn out.
• 19:42
  [SPEAKER_00]: I think they responded like,
• 19:44
  [SPEAKER_02]: like within I don't know like we're gonna pay a warm back like immediately if they said I don't think they even knew how much they had to pay back but they responded like hey and no one really sold off because of that great points great points and uh you know there's still brightness on the horizon uh bit wise published this week a big coin will reach $1.6 million by 2036
• 20:07
  [SPEAKER_02]: hacks and all Brian we're going to the moon still.
• 20:10
  [SPEAKER_02]: Again, this is a definitely historic thing that we're going to continue to cover and there's going to be more news about this.
• 20:17
  [SPEAKER_02]: And especially the paybacks of the most important part of this that we want to see that precedent set right from Binance to actually go through with this.
• 20:23
  [SPEAKER_02]: But you need to, you know, you need to put your head up from the smoke here from the dust.
• 20:28
  [SPEAKER_02]: And again, remember how far that this space has come and how really just the institutions continue to build here continue to be bullish and almost how I don't know what the right word is to call this hack, but it's not some
• 20:44
  [SPEAKER_02]: AI exploiter was just a classic fishing attempt right so you know it's it's kind of crazy in a way we have all these fears of of this new technology that's going to take down Not only crypto but the banks and the world and everything and it's just the classic you know linked in fishing attempt that that got the 6 billion drain so so Brian your your brighter days ahead you're still looking forward you still want to build you still want to invest in by the dip here
• 21:11
  [SPEAKER_01]: I mean, shout out to these hackers that are still, you know, just spinning up, you know, your distant relative that was a prince in Kenya, left you $5 billion, click this link.
• 21:25
  [SPEAKER_01]: I mean, this is, this is just much different, and I guess I want to make a distinction here.
• 21:32
  [SPEAKER_01]: I always talk about on the rundown and with my friends too, when I talk about crypto, how like FTX was like one of the darkest times and I came out of FTX after we had that solvency and fraud problem, I was like this is really freaking bad for crypto.
• 21:48
  [SPEAKER_01]: because there was just so many, the news around it, how it was a fraud issue, but that was a much different story than what we're looking at with an exchange getting hacked and having financial resources essentially to actually make customers whole.
• 22:03
  [SPEAKER_01]: And that's really the question of finance.
• 22:05
  [SPEAKER_01]: Can they contain this damage?
• 22:06
  [SPEAKER_01]: Can they cover the losses?
• 22:08
  [SPEAKER_01]: Can they get back to normal operations without creating an issue for the entire industry?
• 22:18
  [SPEAKER_01]: and if they can, that's the important lesson here.
• 22:21
  [SPEAKER_01]: Security failures are still happening on a massive scale, but the ability for this industry to absorb these events are improving.
• 22:30
  [SPEAKER_01]: And of course we need to see how Binance is going to fall through before like, I don't want to say declaring victory, but you know, just responding in an appropriate way, but I really want to make how big of a distinction
• 22:46
  [SPEAKER_01]: this is a little bit different vibe in my opinion hacks anywhere where there's money or there's power are going to always be under attack and it's how this industry is going to respond and if I'm going to you know look at this glass half full and I think that's what we're all trying to do
• 23:06
  [SPEAKER_01]: it's actually it's actually responded a lot more positive than I would have ever expected if you told me a month from now that we would have a six billion dollar Barney attack and out of nowhere I would have been like oh my gosh we're going to sixty fifty thousand dollars the response was
• 23:22
  [SPEAKER_01]: better than I expected.
• 23:24
  [SPEAKER_01]: And, you know, I think it's going to make it stronger in the end, but I just think there has to be a clear, clear distinction how FTX, people comparing this to FTX.
• 23:35
  [SPEAKER_01]: That was way different.
• 23:36
  [SPEAKER_01]: That was fraud.
• 23:37
  [SPEAKER_01]: That was solvency.
• 23:38
  [SPEAKER_01]: That was bad stuff happening.
• 23:41
  [SPEAKER_01]: This is still bad, but, you know, we have some solutions.
• 23:45
  [SPEAKER_01]: We have some outs here.
• 23:46
  [SPEAKER_01]: And you kind of asked me what my, what my feelings are on the overall market.
• 23:51
  [SPEAKER_01]: Um, I like to buy on red days.
• 23:55
  [SPEAKER_01]: I, I'm, you know, I'm okay if we still go down a little bit, but some of my favorite positions, you know, like the Z-cash is the bitcoins, the hypes, I certainly looked at them a little bit longer this morning, and I was like, you know, I might move over to some areas of interest here of some tokens are showing strength with this hack.
• 24:16
  [SPEAKER_01]: Why is that happening?
• 24:18
  [SPEAKER_01]: What's happening with those tokens?
• 24:20
  [SPEAKER_01]: Because once we, we've goldfish brains.
• 24:22
  [SPEAKER_01]: This is a good go away.
• 24:23
  [SPEAKER_01]: We're going to get this all fixed.
• 24:24
  [SPEAKER_01]: Those are going to be some of the best tokens that are going to respond and pop off and I think there's I think there's a reason to have a bullish perspective long term or midterm long term here.
• 24:37
  [SPEAKER_01]: How do you want to call it that's that's kind of my two cents.
• 24:42
  [SPEAKER_02]: It's a great point.
• 24:43
  [SPEAKER_02]: It's a great point.
• 24:44
  [SPEAKER_02]: And just kind of pulling up the charts here, just to show like what Brian was saying is now's the time that you want to get more involved.
• 24:51
  [SPEAKER_02]: You want to get your research and understand that relative strength in these times is really telling for what could really go right to the upside and the bull market.
• 25:01
  [SPEAKER_02]: Sorry I cut you off Joe there.
• 25:02
  [SPEAKER_02]: Jump in.
• 25:04
  [SPEAKER_00]: All good.
• 25:04
  [SPEAKER_00]: Yeah, we were under 80,000 last week because oil prices are high.
• 25:08
  [SPEAKER_00]: This is like nothing if you want to click on the visual of the visual of the impact and why pump is bullish on this is really because this is really I want to say overblown of this is a social engineering attack.
• 25:20
  [SPEAKER_00]: It's definitely the biggest in history.
• 25:22
  [SPEAKER_00]: in terms of value, but double click on that picture, yeah, right there, like Mount Gox, effected five to seven percent of all big coin is in existence at that time.
• 25:31
  [SPEAKER_00]: So this is like a fraction of a percent of the entire crypto market.
• 25:35
  [SPEAKER_00]: Even when BiBit got hacked, you know, 1.6 billion, that was a bigger effect on all users.
• 25:40
  [SPEAKER_00]: So the current market value of solar was 6.3 billion, but at Mount Gox, valuation is 50 billion.
• 25:46
  [SPEAKER_00]: So it seems like a lot.
• 25:49
  [SPEAKER_00]: But we have, we have trillionaires now, you know, SpaceX moves a dollar and, you know, he's a two trillion or he's no longer a trillion.
• 25:55
  [SPEAKER_00]: You know, like we, we have so, print it so much money in the ecosystem that, you know, six billion is really not the, I hate to say this, but it's really not that much anymore.
• 26:04
  [SPEAKER_00]: Like we have anthropic going IPO next month and they have 600 billion in commitments and debt.
• 26:10
  [SPEAKER_00]: Like this is where people's focuses.
• 26:12
  [SPEAKER_00]: Like
• 26:12
  [SPEAKER_00]: Like investing AI these companies make Binance look like a peanut is what I'm trying to save They got a raise-minded covered this which they won't have to do It'll be fine, you know, but this is just kind of the state of the market and whatever bleeds leads and this is bleeding And it's a big value it seems like a big number, but it really isn't
• 26:31
  [SPEAKER_02]: Yeah, we'll wrap up the show just on the big board here on coin market cap.
• 26:35
  [SPEAKER_02]: I mean, yeah, 24 hours, you know, four, six, eight, about as high as I saw as 8% down.
• 26:42
  [SPEAKER_01]: Yeah, that's Z cash, too.
• 26:44
  [SPEAKER_01]: I mean, that's juicy.
• 26:46
  [SPEAKER_01]: Z cash is a 1200 last week with the oil stuff, not not financial advice to buy, but
• 26:53
  [SPEAKER_01]: You know, I'm like dip my toes a little bit more and add to my Z cash bag because I'm I'm fortunate to hear opportunities for the weekend.
• 27:01
  [SPEAKER_02]: The crypto hack has Bryan saying it trick or treat on this deb folks.
• 27:05
  [SPEAKER_02]: I really appreciate everybody tuning in.
• 27:08
  [SPEAKER_02]: You know, we hope you're doing all right after the hack.
• 27:10
  [SPEAKER_02]: We appreciate y'all tuning in.
• 27:11
  [SPEAKER_02]: If you're new here.
• 27:12
  [SPEAKER_02]: Give us a like, bottom right, hit the logo, and subscribe.
• 27:15
  [SPEAKER_02]: We'll be back next week doing a ton more.
• 27:18
  [SPEAKER_02]: We've got some great interviews coming out.
• 27:19
  [SPEAKER_02]: We'll continue to monitor this historic act.
• 27:21
  [SPEAKER_02]: I'm sure there's gonna be brand new information.
• 27:23
  [SPEAKER_02]: Plus, we have some Polish news that we put on the shelf until next week, so you're gonna want to tune in for that.
• 27:28
  [SPEAKER_02]: Because we think the crypto market continues to march on.
• 27:32
  [SPEAKER_02]: continues to move higher as we head into the end of this year and in the next.
• 27:37
  [SPEAKER_02]: So you're going to want to student.
• 27:38
  [SPEAKER_02]: We'll talk to you next week.
• 27:39
  [SPEAKER_02]: Have a great holiday weekend.
• 27:41
  [SPEAKER_02]: Happy trick or treating with you, your kids, your friends, your family.
• 27:44
  [SPEAKER_02]: Enjoy the weekend.
• 27:45
  [SPEAKER_02]: But that's all for now.
• 27:46
  [SPEAKER_02]: Bye bye everybody.