54 – A chat about the Real Estate NFT market, FTX taking on the regulators & is Board Apes Yaga Labs in trouble?

Tracey: [00:00:19] Welcome to the Crypto Curious podcast designed to help you navigate the dynamic world of cryptocurrency. We're here for anyone who's interested in crypto at all. Maybe you've already dipped your toe in the water, or maybe don't know anything about it. And this is a very beginning, but we recommend heading back to the early episodes to get your footing. However, if you think you're ready to dive in headfirst, then let's do it. Coming up in this week's episode, we have a look at the maturing real estate market and how they're entering nfts if it takes on regulators in Texas and the board, eight UGA labs are being looked at by the FCC, also Wal-Mart and how it's stepping into crypto. My name's Tracey and this week Craig's off on holidays. Lucky boy. So it's my pal and work buddy from the Bamboo at. Blake, how are you going? How are you going this week? 

Blake: [00:01:07] Very well. It's great to be back. We went to a fin fest over the weekend and we. Tracey we. 

Tracey: [00:01:14] Certainly did.

Blake: [00:01:15] Which is a conference put on by the Equity Mates Media Group and they're the ones that help us produce the podcast. And they did an amazing job. I think they ended up selling about 1800 tickets, talking about all things investing, which was a hoot. 

Tracey: [00:01:31] It was awesome. We get can't can't talk highly enough about that awesome event yet. So shout out to the Equity Mates crew and our producer Sascha, who we don't mention enough here on the podcast. She's behind the scenes with us every single episode. So shout out to Sascha we spent some time with on the weekend and again awesome event. So yes, and it's happening again next year. So if you missed out, don't worry, they're going to do it again. 

Blake: [00:01:55] As well as that. I believe all the talks are going to be posted on YouTube. So if you did miss it, keep your eyes open on the Equity Mates socials and you'll be able to follow up with some of those amazing talks.

Tracey: [00:02:09] Very good point. Absolutely. Now on with the news this week in crypto land. This story made headlines across all news outlets on the House in the middle of an NFT house sold for 175,000. And this isn't just a JPEG picture of a house. No. Here's the interesting thing about this story. It's actually the ownership of the house. That's right. This is not just a JPEG. This is the title and the Keys to a house which is situated in North Carolina. Now, this might seem like a bit of a PR stunt, but the company behind it is called Roofstock, an online marketplace that lets you buy houses. So this is a single story family house and this was bought on Open Sea. So Blake, can you tell us a little bit more about this one?

Blake: [00:03:02] The owners opened an LLC which is similar to a PTY LTD to a company here in Australia and the LLC takes ownership of the property. They then tokenize the property and Mint an NFT, which they say represents the ownership of the house. And people can browse the NFT on a marketplace and buy the house in one click. Now. Sure, there's a lot of legality in the background and people have been pushing for this technology to be used in this way for a very long time. And the first time I heard about it was something called Aspen Coin, where you could fractionally buy a stake in a ski resort in Aspen. Hmm. And, you know, I think we're just going to see more and more of this because, you know, settlement for a property can take anywhere from 30 days to 90 or even 120 days, which is extremely arduous. And it's a lot of paperwork, a lot of parties involved. But if settlement could happen on the blockchain with the transfer of an NFT, I think it would make everyone's life easier and the whole process a lot cheaper. 

Tracey: [00:04:08] Yeah, definitely. This one was settled using a USB DC Stablecoin I think by something called Usdc Homes. And I think what they say is that the underwriter provides, you know, the verification and identity of the person that does it. And I think it sits then, you know, in a sub off chain data account. So it's like an escrow, I think they call it over there or something along those lines. 

Blake: [00:04:30] Yeah. And what we're going to see more and more of is verification done within NFTs. For example, you could KYC or produce all your documents like your driver's license and bank statements and have them minted into an NFT. So then, you know, the people that you're sharing it with don't necessarily have access to the underlying information, but no, yeah, but yeah, the, you know that you're verified and you can make that particular transaction. 

Tracey: [00:04:58] Exactly. Look, the real estate NFT is a narrative that we've been hearing a lot about over the last 12 to 18 months. So it's no surprise to me that we've kind of gotten to this point, but I think the jury's still out on whether or not this will actually take off because it's pretty mind blowing to just jump on overseas, have a look around and click and buy a home. So, you know, it's. Like I said, it's pretty mind blowing. So we'll see. We'll see how that one goes on to our next story exchange. And the illustrious head leader, Sam Bankman-Fried, are being investigated by the state of Texas and their regulators and regulators. So why are they being investigated? The Texas State Security Board wants to investigate whether FTX is offering unregistered security products, specifically through yield bearing accounts. Regulators are arguing that the 8% yield of promotions on new deposits is similar to an investment contract, which is viewed as a security in the state of Texas. You've got a bit more on this blame.

Blake: [00:06:01] You know, these yield bearing accounts are a hot topic. Companies like Voyager and Celsius who have had liquidity issues, as well as companies like Coinbase, have struggled to get these products up because of the fraud to the complex regulatory environment. And now it's ex FTC turned to be under the microscope and you're like, you just mentioned, Tracey. The SEC's viewing this as potentially an investment contract. Now, this is a classic example of regulators trying to put a square peg in a circle hole to fit crypto into legacy policies. And they don't quite fit and they're really just looking for a nail to hit. You know, the SEC being the hammer. So, you know, it's such a challenge while this play, while this space still doesn't have its own regulation, there's going to be more and more of this. They're going to be trying to figure out what to do with these products because they don't fit nicely into how it's traditionally been done.

Tracey: [00:07:01] So this isn't the first time the FTC's have been under some regulatory pressure. They recently came under the spotlight from a US bank regulator for allegedly false and misleading claims that the exchange was FDIC insured. So not 100% sure what that even means. Blake, but you were telling me over the weekend that, you know, all Sam does over there is lobby and be in communication with these regulators. So he would have been aware that this was potentially coming. He would be well across all of this, wouldn't he?

Blake: [00:07:28] Yeah, well, working with regulators, I think, is very different to potentially working with the administrative bodies like the S.E.C. or the CFTC. You know, the FDIC insured wallets means that, you know, if I deposit some money into a Chase JPMorgan Chase Bank account, it's generally insured up to $250,000. So, you know, people are looking for those products in crypto for that assurance. You know, it's like a big tick of approval because people were wiped out during the GFC, you know, and this really was a response to these things. Yeah. Sam is up there in Washington lobbying. I think he spends I think I heard him mention that he spends 50% of his time there speaking with legislators and regulators. And I don't know if he knew about this or not, but, you know, what I suspect is that, you know, the SEC is trying to get involved as much as possible from a regulatory position. So, yeah, we'll see how this one plays out.

Tracey: [00:08:25] Our next story follows in the same vein. The S.E.C. Last week came out and said that is investigating UGA Labs, the creators of a yacht club who's undoubtedly the biggest NFT brand out there at the moment. So Gary Gensler, head of the SEC, said he wants to investigate whether UGA broke any federal laws with their NFT or token eight coin. Why are they going after these guys? Blake Hmm. 

Blake: [00:08:48] Yeah, really interesting. So obviously, NFTs are an extremely new technology and a few years old or come to prominence in the last couple of years, and the regulars still don't know how to treat them. So, you know what I suspect that the SEC is doing here is going to do an investigation to figure out, you know, which laws it touches and your which rules are potentially brokered or didn't break to create precedent moving forward. And I think looking at the biggest project to potentially make an example out of is a strategy it looks like they're taking. So fascinating stuff. And this is really going to, you know, depending on the outcome of this, it's really going to dictate how that sub industry within cryptocurrency evolves over the coming years.

Tracey: [00:09:33] And it would be that they've just picked kind of the biggest one to go for because that sets the precedent.

Blake: [00:09:39] Yeah, for sure. And this just very prominently in the North American Project as well. And they probably did such a diversity of things. They raise venture capital, they raise money from retail investors. You know, that was selling these things. There was perks that came with purchasing these assets and they really did everything. 

Tracey: [00:10:00] Yeah, well, it makes sense that they start there. Well, look, I suppose, you know, Kim Kardashian's been hit one week and now they're going after the biggest collection, you know, in NFT land. So the FCC is really on a tear right now. So we'll see. We'll see who comes up next in their firing line. So Aussies have Kmart. Taji and the US have a Walmart. We all know how huge Wal mart is. The CTO has just said that crypto will play a huge role in the retail space. 

Audio Clip: [00:10:31] I have talked before about the way in which customers are getting inspired and discovering products. That is changing and part of that is going to happen in the metaverse. Part of that is going to happen on live streams inside your social media app. 

Tracey: [00:10:46] Like, did you know that WalMart is one of the biggest revenue making companies in the world right now? 570 billion in annual revenue. And it's been that way for the last ten years. And now, while not loving crypto. Apparently the CTO, Suresh Kumar jumped on an interview this week where he dropped some gems on why crypto will play a big part in retail and their digital strategy moving forward. But can you tell us a couple of the main points of interest and why he thinks crypto and the blockchain can really disrupt moving forward? 

Blake: [00:11:20] Yeah. Firstly, it's payments. Shirish says crypto will become an important part of how customers transact in the future. And it's been our thesis here at the Crypto Curious that one day all payments will be done and settled on the blockchain. And then secondly, product discovery. He says customers will shift to discovering new products in the metaverse and they want to capitalise on that. So they'll be opening a store there and maybe, you know, in the future you won't leave your home to purchase things at Walmart. You'll do them in the metaverse, you'll walk down the aisles on your treadmill at home and with your headset on, you'll be picking the items off the shelf, putting them in your virtual trolley, and then they'll be sent to your home in the next 24 hours. So potentially, potentially, that's their vision. 

Tracey: [00:12:06] That is so scary, but probably really that's probably where it's going. And Walmart's already been pretty active within the Web3 space over the last year. They've integrated blockchain tech to let them better track the origins of their produce and products that they sell, and they're experimenting with ways it can make their supply chain more effective. 

Blake: [00:12:26] As we reported in the podcast a few weeks back, they also launched two new metaverse, as in roadblocks where users can use and buy virtual and physical items and play other metaverse games with their friends. So definitely they're pushing in this direction. 

Tracey: [00:12:44] And kind of maybe going to what you assign them. Like maybe that's kind of their avenue, like get used to it into roadblocks. And then one day what you're doing in road blocks is purchasing your goods that get sent to you. 

Blake: [00:12:56] What do you think? What do you think the average age of the roadblocks player is? 

Tracey: [00:13:00] Well, going from my household, the average age is 1011. 

Blake: [00:13:03] So it could be the case that they're, you know, not going after your millennials or the Gen Xers. They could just be going after the Gen Zers and younger and starting to build their capacity in that place so that they can secure their position as your market leaders in that space and grow with them. 

Tracey: [00:13:23] Absolutely. Absolutely. When you're in business, you know, as big as Wal-Mart with that much revenue, you need to look ahead, you know, and crypto's definitely going to disrupt everyday transactions and they've definitely got their finger on the pulse. So, you know, they know what they're doing. Let's take a break here. And when we come back, we'll look at some BTC charts and deliver you the short, sharp news bites. Welcome back. You're listening to the Crypto Curious podcast. Let's look now at a little bit of a BTC chart for those who might not be into technical analysis, even those who aren't. This is just a good little market indicator when put with some other fundamentals. There's been a bit of chatter around this last week about the Bitcoin volatility chart. Now, Bitcoin's volatility hasn't been this low since 2020. They are. Those that do closely follow technical analysis will measure this with something called the Bitcoin Historical Volatility Index, the BVI gold. And according to history, whenever the bevel falls to this level, what follows is a large spike in volatility. Now, that could be up or it could be down. And the last three times that this has happened, bitcoin price has actually pumped up, but again, could go either way. So, Blake, what's your thoughts here?

Blake: [00:14:40] Yeah. Now, when Bitcoin's not volatile, which this chart suggests, it's always a little bit scary because something's going to happen. This is something that we don't know what you know, it is good because it just really is a testament to the stability of crypto, where other markets are acting very volatile at the moment, such as the US dollar and equities markets and even property in some places. So you know, we're looking at Bitcoin going sideways and thinking, Alright, what's going on here? Why is Bitcoin stable and everything else moving around? So no doubt we're going to see it move in one direction and this and great memes that Russia uses. And you saw the guy with the stick poked in the eye. Yeah.

Tracey: [00:15:26] Do something, do something edgy. That is gold. That makes a resurgence every now and then. But isn't October generally a green month for Bitcoin? 

Blake: [00:15:36] I'm not too sure. Historically, September's a red month, so maybe. 

Tracey: [00:15:41] I think yes. I think six out of the last eight have been green for bitcoin, but will say we're nearing the end of the month. So yeah, let's see what happens with the bowl. And yeah, we'll see how that one goes. Let's move on to this week's short, sharp news bites and I'll go first. This week, Coinbase has been in every single episode pretty much every week for the last four or five weeks, so we won't buck the trend this week. Another mention for our rising stars at Coinbase. Brian Armstrong, the CEO of Coinbase, is selling 2% of his total shares in Coinbase. He owns just a cool 39 million shares, so 2% would be about 50 million. Why is he selling, you ask? Well, he wants to create a fund for new scientific research companies. Similar to that, he's already got New Ltd, which is developing medicines to extend human lifespan and research hub decentralised research protocol. So yeah, someone asked if he is meant to be stepping down as a Coinbase CEO, to which good old Bryce says no way. He plans on being CEO of Coinbase for a very, very long time. 

Blake: [00:16:53] Fellow podcaster and author Tim Ferriss has launched an NFT collection. I was listening to his podcast and he was promoting this. 

Tracey: [00:17:01] I was pumping his company's bags. Was he? MM Yeah. 

Blake: [00:17:04] And all the proceeds will go to a foundation focused on psychedelic research, life preservation and protecting Indigenous communities. Now Tim does a lot of work in this space, both personally and professionally, raising capital for important projects and also protecting our indigenous cultures and communities. So this incredible project. Tracey: [00:17:28] Put the link in.

Blake: [00:17:29] Yeah. And I reckon that Kevin Rose, one of his good friends and a famous leader in the NFT space, has helped him with this project to create an amazing product. So we'll leave the link for this in the show notes. Please check it out. 

Tracey: [00:17:43] Excellent. MasterCard is launching a new programme that will help banks offer crypto trading. MasterCard will help traditional finance institutions offer cryptocurrency trading by acting as an intermediary with Paxos and providing regulatory compliance and security, according to a report that came out a few days ago by CNBC. So the financial services company claims there is still demand for crypto coins and tokens, but many clients would prefer to go through a traditional bank. So yeah, a bit of an eye roll on that story because you know, they can't beat us. So join us, I guess. Still newsworthy. So what's next by blockchain? 

Blake: [00:18:22] Magic Eaton, which is an NFT marketplace, has moved to optional royalties. Now the buyers get to decide what percent royalties they want to give to NFT creators, which is great, which is like a set and forget all the tipping mechanism whenever revenue is put through the NFT or whether it. Bought or sold. This is a fantastic feature that has great implications. So we'll see how this evolves and what uptake it has. Yeah. 

Tracey: [00:18:57] Oscar winner Anthony Hopkins First NFT collection sold out in minutes on open seas. 

Audio Clip: [00:19:03] Dr. Lecter, my name is Clarice Starling. 

Audio Clip: [00:19:04] You're one of Jack Craft, aren't you?

Audio Clip: [00:19:06] I am, yes. Bassey credentials.

Tracey: [00:19:09] NFT buyers scooped up a diverse collection of NFT artworks inspired by Hopkins long and acclaimed career. I'm sure there was some kind of picture depicting the cool face covered Hannibal Lecter. Hello, Clarice. Looking at the picture there. But I know that a lot of people were waiting on this one. There was a big discord group that apparently blew up talking about it. So there you go. Interesting. And again, that's it for this week. Please keep the questions coming and email us on podcast@getbamboo.io or contact us via social media. Don't forget to write and review us on whatever you're listening to this podcast on and we'll see you next week. Thanks again, guys. Bye. 

Blake: [00:19:49] Bye.