Latest / The Paul Barron Crypto Show / Major Crypto Wallet Exploit! + Payments Update🔥with Jackie Dutton

Transcript

Major Crypto Wallet Exploit! + Payments Update🔥with Jackie Dutton · The Paul Barron Crypto Show

• 0:07
  All right, let's talk about some crypto payments. We'll get into some updates
• 0:10
  today. A lot of things have been happening in the news but also around
• 0:14
  some of the strategic partners and alliances that are starting to make their way into
• 0:18
  crypto. You guys don't want to miss it. My name is Paul Barrel.
• 0:20
  Welcome back into tech path. All right, so I want to thank
• 0:22
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• 0:26
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• 0:29
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• 0:33
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  a matter of minutes. Check it out, use our link. It's going
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  to give you some discount when you sign up. All right. A couple
• 0:59
  of things I want to get into today. Before we jump into that,
• 1:02
  of course, I want to welcome on our co host, Miss Jackie Dunton.
• 1:06
  Hey, Jackie, how's it going good? Happy to be back,
• 1:10
  all right. So we're going to break down a lot of things happening in
• 1:14
  the news right now. One of the things I want to hit on and
• 1:15
  kind of get your opinion on is all these potential payment updates which are seemed
• 1:19
  to be flowing out pretty heavily. Stripe is expanding their crypto purchasing now in
• 1:25
  the European market. So this is a pretty big deal because it's going to
• 1:26
  allow the EU shoppers to buy buy things with bitcoin. Let me kind of
• 1:32
  zoom in on that for you by bitcoin or by with bitcoin East Salona,
• 1:37
  others using their credit or their debit cards. So this is all a move
• 1:42
  by Stripe, of course, moving into the EU. So that's a good
• 1:46
  thing. Of course, when you look at some of the things they've been
• 1:48
  announcing, you know, within the integration of crypto into Stripe, I'm kind
• 1:55
  of curious, do you think it is a good thing for crypto payments,
• 1:57
  or i should say, for payment in general, or do you think this
• 2:01
  is just the old web two payment companies trying to jack in on the on
• 2:07
  the new age crypto payment side. Well, obviously they want to get in
• 2:12
  on the action, and I don't fault them for that, And I just
• 2:15
  think it's opening itself up to a nod of the fact that ultimately we design
• 2:20
  these currencies to be an alternative to an actual currency that we transact with,
• 2:23
  right, so there has to be one that we continue to actually spend.
• 2:29
  We don't just buy and hold it forever. You don't do that with your
• 2:31
  regular money. You can't do that with crypto that you hope to be the
• 2:36
  dominant one. So I think this is we'll figure out which one we like
• 2:39
  to use the most. You know. It's funny we try to operate a
• 2:44
  lot with you know, crypto for payment to vendors, you know, just
• 2:46
  so vendors can start to learn a little bit more about how to just open
• 2:51
  a wallet and I can send you and pay an invoice or whatever. We
• 2:53
  haven't seen enough of the automation yet, definitely. I think when we see
• 2:58
  maybe payroll companies getting into it to where you could actually put a wallet address
• 3:01
  in for a payroll and be able to do that and still handle your taxes,
• 3:06
  your nine forty one's all that kind of stuff. But the fact that
• 3:07
  we're seeing this now in the hardware side is pretty interesting. I was looking
• 3:13
  some of the readers here. This is just what you'll see over in the
• 3:16
  EU on being able to integrate. One thing to remember, and this is
• 3:21
  something that I think a lot of people forget, is really the idea of
• 3:23
  crypto payments is to reduce the transaction fees. And if you look at Stripe,
• 3:29
  Visa, MasterCard, etc. I mean, these are two to three
• 3:31
  percent of transaction fees and for the most part, almost every retailer out there
• 3:37
  are paying at least in the five digits, if not in six digit fees
• 3:42
  throughout the year if they're doing any revenue whatsoever. So the fees are still
• 3:46
  there, and it looks as though Stripe might be just allocating these fees now
• 3:51
  over to crypto payments as well. We did a video on this topic right
• 3:54
  here. This was Stripe supporting global stable point payments, and I'll kind of
• 4:00
  scrub through this video, but they were making it very easy to do of
• 4:04
  tying it in. You see USDC phantom right there on screen. I think
• 4:09
  that'll be a big challenge in the future. Another tweet right here. Coinbase
• 4:14
  also his partner with Stripe to bring Base into a faster, cheaper financial infrastructure.
• 4:20
  And remember Base has had an absolutely you know, stellar sign up process
• 4:28
  of all these new apps. So I imagine we're going to get some payment
• 4:30
  apps and things like that coming on chain Summer is coming in on August.
• 4:33
  I think, what do you think about this partnership because Coinbase, I mean
• 4:39
  I get it, I understand the need for it, but I almost wonder
• 4:44
  if we're going to see one of the majors try to go a neutral route
• 4:47
  away from the regular web to payment system. I mean, I like your
• 4:54
  point from earlier, right like, we more so have to see payroll become
• 4:59
  a part of this conversation because people converting one to the other on their own
• 5:04
  is very monotonous. But if you were just handed eth as your paycheck,
• 5:10
  you would be more willing to figure out how you're going to settle it up
• 5:12
  and spend it. Yeah. The other thing that surprises me is the amount
• 5:16
  of stable coin usage. And you would think that USDC would be kind of
• 5:20
  the lead, you know, a dog in the race here. Tether just
• 5:26
  this is just a seven day on this. Look at this jump in Teather
• 5:30
  liquidity. I mean, this is crazy in terms of use. Now.
• 5:32
  Part of this is you would think that this would start to slide down with
• 5:36
  the EU MIKA rollout because Teather being in many cases bandoff of centralized exchanges.
• 5:42
  What do you think is causing this kind of move right now with Teather's current
• 5:46
  market cap? I'm not sure if maybe there's a worldwide explanation for this,
• 5:53
  like another government's kind of been getting into crypto that we just it's not on
• 5:58
  our radar right now, or there about to convert a lot of Tether into
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  something else that might make a little more sense. But I personally don't have
• 6:04
  an explanation for that because Circle is the clear winner globally in my opinion,
• 6:11
  and with Mika kind of well, even though ripples stable coin could change things
• 6:17
  up a little bit, that could shake things up a little bit, all
• 6:19
  right, So Jackie, I want to jump on this. This course is
• 6:21
  Jesse Pollack over from Base. He's talking about basically reducing cost again scalability.
• 6:28
  We saw a lot of new potential developers really tying into this. I still
• 6:32
  am interested to see if there's going to be some payment solutions coming out here
• 6:36
  on chain summer. With that and the potential of growth in their smart wallets,
• 6:42
  let me kind of go and take a look at that. Yeah,
• 6:44
  so here's the smart auts in July is not over yet, so likelihood is
• 6:47
  I think this is weekly? Yeah, We're going to see continued growth on
• 6:51
  this. Could we see Bass start to maybe steal a little bit of thunder
• 6:56
  from maybe chains like Salona or maybe even you know, Avalanche and others.
• 7:00
  What are your thoughts there? I feel like you can't talk about Base without
• 7:05
  acknowledging Ethereum, right, and since Ethereum is about to get an ETF and
• 7:10
  we're about to see this massive influx of money, I think, you know,
• 7:13
  one begets the other, right, all of those ducks just kind of
• 7:15
  line up for everybody. So yeah, I think this is great for Base.
• 7:20
  Yeah. Well, and you look at daily transactions climbing, Weekly transactions
• 7:26
  are up, new addresses are up, so still a lot of growth.
• 7:30
  And I still, you know, still think that this is one of those
• 7:32
  projects that is well, we obviously know it's just getting started for sure.
• 7:36
  Here of courses, Genosis pay, we've talked about this one before, only
• 7:40
  available in Europe. You can kind of see some of the big partnerships there,
• 7:44
  but this is truly a crypto credit card, and we haven't seen one
• 7:47
  of those here in the US obvious for obvious reasons. Do you think when
• 7:54
  you look at the potential here for mainstream people will they jump into and I
• 8:01
  get with Mika, they're a little bit further ahead in the EU and this
• 8:05
  is kind of where Genosis pay is. Do you think that we'll see a
• 8:09
  big adoption of these kinds of credit and debit cards coming through the EU now
• 8:13
  with the use of crypto within them. Well, how much credit card debt
• 8:20
  does the EU generally have. I mean, I think any opportunity for people
• 8:24
  to run it up right now, they probably will. So if that's you
• 8:28
  know, people are irresponsible, they'll just do it. Yeah, let's hope
• 8:35
  not. This is a company that is working with Genosis, just to give
• 8:39
  you an example of some of the fees that are out there if you compare
• 8:41
  Zeal with this, and this is of course is in comparison like you were
• 8:46
  running a wallet, but you can kind of see some of the costs right
• 8:50
  here, crypto bank transfer fees versus crypto exchange fees very low, and then
• 8:56
  obviously bridging and cross chain fees also very low compared to what we see.
• 9:00
  I want to play a demo of the Genosis and the zeal card demo because
• 9:05
  it shows how it's connected here and get your opinion on this. Let's take
• 9:09
  a look here. We can see tokens, we can see dehub positions and
• 9:13
  collectibles in DeFi, you see state rewards, you see lending positions, health
• 9:16
  racious things like that. Let's set over to cards. I only have a
• 9:20
  card, so I'm going to do that. And now we're importing my smart
• 9:24
  wallet. This is smart wallet can be used for many different things. Will
• 9:30
  here we can see my conception history. So let's top it up sweek at
• 9:35
  cash. I want top it up from the tester wallet we used to see
• 9:39
  on Optimism. Clicks up, I'll see one point sixty eight europending, so
• 9:46
  it took less than a half a minute to move the assets over to the
• 9:50
  card and then also pay us a two minutes day before it can be spent.
• 9:52
  So as you can see here, I can see slippers, I can
• 9:54
  see network fees. If I continue, I can pay for these network fees
• 9:58
  in US see x I no or USDT. I don't need just the native
• 10:03
  token to pay for network fees. And it's not just on nosi's chain,
• 10:07
  it's on all of the networks that we support. You are able to pay
• 10:11
  network fees in different tokens. I would think that the banks would really be
• 10:16
  looking at this going, oh sh how and I was looking at their list
• 10:24
  here, this is their the Genosis hard eligibility. These are the countries that
• 10:30
  you can get it now, which is mostly the EU, with exception of
• 10:33
  a handful of others. But it says it's coming here to Mexico, the
• 10:39
  USA, Brazil. We'll see if that happens. But man, this could
• 10:43
  really shake up a little bit of the banking system, I would think,
• 10:46
  especially with millennials and gen z, who would be just as soon to operate
• 10:50
  on a wallet like that, wouldn't you think I would think so. And
• 10:56
  I also think, obviously the huge potential year is for people who are unbanked
• 11:01
  or people who you know, live in a country where their currency is out
• 11:05
  of control. You know, the a lot of the Latin American countries I
• 11:09
  think right now would probably benefit from this. Now. One of the challenges
• 11:15
  I think that are represented is what happens when we see you know, just
• 11:20
  like we see a lot of credit card companies who get breaches, you know.
• 11:24
  Now we're starting to see some of these exploits on chain, and we've
• 11:28
  actually seen a few of these on different projects. But here's Leafy Protocol,
• 11:33
  their system raised suspicious transactions. This has happened now, more than eight million
• 11:37
  drained from so far from users in mostly stable coins. They're swapping USCC you
• 11:43
  know, tether, ether, et cetera. But the interesting point right here
• 11:48
  is this is being used by a lot of the majors, you know,
• 11:52
  so you've got those kinds of connected potentials of this kind of scenario, especially
• 11:58
  with wallets, including the Robin Wallet, Meta Mass wallet, you see Finance
• 12:01
  in their phantom et cetera. That along with even Brave, and then there's
• 12:07
  Genesispade there as well. So I think these are the concerns I have right
• 12:11
  now with the continued exploits because I don't think that we have enough forensics just
• 12:16
  yet on chain to really fight a lot of these kind of situations. Sure
• 12:20
  we'll probably will get there, but it's such an early, you know,
• 12:24
  scenario, and this industry is faced with this. Are you seeing more and
• 12:28
  more of this in terms of exploit attacks and et cetera within your community.
• 12:33
  Lately, I think I've seen less, especially how it just felt like during
• 12:39
  the Bear, like a year and a half ago, it just felt like
• 12:41
  you couldn't hold your money and it was getting hacked. And you know,
• 12:46
  I don't know what the total was, but the bridges in particular just took
• 12:50
  an absolute beating about a year and a half or two ago. And now
• 12:54
  I do feel like it's calmed down, which is kind of ironic because now
• 12:58
  it's worth more. So either, you know, security has gotten a lot
• 13:01
  better and people are starting to get ahead of it. I think obviously those
• 13:05
  incentivized bug bounty programs are super helpful. Yeah, you know, being willing
• 13:11
  to work with a white hat that's also very helpful. So you know,
• 13:16
  we're going to have to police ourselves until or if we invite actual regulation like
• 13:22
  this. I think that's a great statement. This was a tweet out by
• 13:24
  Phantom do the ongoing Leafy protocol exploit. You know, we're turning off for
• 13:30
  cross chain swaps until further notice, and then for your safety, they're recommending
• 13:33
  using revoke cash to revoke contracts that are out there, and for those of
• 13:39
  you, maybe you're brand new to our show. And really what happens in
• 13:43
  DeFi is when you sign or you engage with a web three you know,
• 13:48
  project, website, et cetera. A lot of times you'll open up your
• 13:50
  wallet. You want to revoke that access, So make sure and do that
• 13:54
  within your devices, whether you're using you know, a wallet like Phantom,
• 13:58
  or even using something like Ledger or you know, coinbas wallet, whatever it
• 14:03
  might be, you should be just doing self you know. It's kind of
• 14:05
  I won't call it like clearing your cash, but in many cases it's a
• 14:09
  lot like if you're using browsers going into certain areas that you want to be
• 14:13
  more private in those kind of things. VPNs are what you use in the
• 14:16
  open web. In this it's revoking your wallet addresses out there to your point,
• 14:22
  kind of just self policing a lot of your own activity, which I
• 14:26
  think there needs to be more education on that because I'm not sure a lot
• 14:28
  of people really understand that. You know, and it's a pretty simple process.
• 14:33
  It's not super difficult to understand once you get it it, I think
• 14:37
  most people are just like a light bulb, it turns on quickly to do
• 14:43
  well. Usually people learn the hard way. You know, there's no greater
• 14:46
  tea shirt than the hard way. Yeah, everybody gets their wallet hacked at
• 14:50
  some point. Hopefully it's not you. Leafy did put out a statement here
• 14:54
  a smart contract exploit earlier today contained there's currently no further risk users. That's
• 15:00
  good. But again, these are situations that in many cases are not in
• 15:07
  your control. Just like if your bank gets a data breach and your data
• 15:11
  gets out there, your credit card numbers, your social security all those kind
• 15:13
  of things. Many people are worried about those because it's just like a debit
• 15:16
  card once, once it's hit in itself gets breached. Now, granted with
• 15:20
  the way that credit card rules are in the United States, at some point,
• 15:24
  could we see that in the crypto side of things. I think we're
• 15:26
  years away from that, so it's a little different than what you're dealing with
• 15:31
  there. So hopefully they'll get this all taken care of, right there.
• 15:35
  Jackie, always fun Dyson it up with you. Thank you so much for
• 15:37
  coming in today, appreciate it. Yeah, see you guys next week.
• 15:41
  All right, all right, So one of the things you can you guys
• 15:43
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• 16:02
  you want to learn more about that. The best way to get involved,
• 16:03
  of course is joining the Diamond Circle. You can do that by just clicking
• 16:07
  the link down below, and of course we'll catch you next time right here
• 16:10
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