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Binance ‘the next domino to fall’ in crypto crash, angel investor says

Mar 24, 2024
Overseas discussion with someone who is skeptical about the

crypto

space, namely

angel

investor

LeRon Shapira, joins us this morning and Leron, you know, before we get to some of the concerns that you've had in This space is worth mentioning in its entirety. transparency that, um, you're part of a

crypto

-skeptic group, uh, that has taken short positions in crypto, so let's start there. I mean, to what extent have you benefited from the declines we've seen in recent weeks? benefited significantly because I have been shorting the Bitcoin futures ETF. I've been shorting Coinbase Microstrategy's Silvergate bank and you know the

crash

has already happened to a degree of 70 or 80 from the peak and that's, you know, putting some money in our pockets as crypto skeptics, now you're a skeptic, but you started from the beginning saying that you thought things could work, you were one of the first

investor

s in coinbase and what changed for you, yeah, so the original thesis was very Visionary, you know the decentralized currency of Bitcoin, um, and it was really just a matter of you knowing how to see the little success that was happening and also think about the macroeconomic considerations as I became more educated.
binance the next domino to fall in crypto crash angel investor says
I thought, look, the vision is basically going gold. standard, that's the vision of Bitcoin, that's the idea of ​​a limited currency without a central bank and, frankly, we've tried it, we didn't try it with a blockchain, but we tried it with gold and it just doesn't make sense. a currency, so you don't actually see it used as a currency, you just see it used for speculation. We've been talking a lot about the crypto space as a whole, but we've had a lot of guests. who say, look, this is a time to differentiate between Bitcoin and ether, those are the more established cryptoassets versus some of these other tokens that we've been talking about, including ftt that was issued by FTX, do you see the differentiation there or is this?
binance the next domino to fall in crypto crash angel investor says

More Interesting Facts About,

binance the next domino to fall in crypto crash angel investor says...

It's time to raise the red flag on cryptocurrencies as a whole, so Bitcoin is kind of an exception because it has this vision of being a decentralized currency without a Central Bank. It's a vision that I think is harmful and would lead to a depression, but at least it's a logically coherent Vision now, if you look at ftt, if you look at all these other, this token explosion and these projects, you know, web3 blockchain, all these other things that have grown outside of Bitcoin in this token ecosystem, it's all logically incoherent. There is absolutely no reason why any of this is going to create net value for society or for the economy, it's basically just an excuse to gamble in casinos and speculate, and you know, we had John Reed Stark before he obviously was a former SEC. law enforcement division, as I understand he is part of this cryptoskeptic group that you have increasingly tried to organize what the ultimate goal of this group is.
binance the next domino to fall in crypto crash angel investor says
What you're trying to accomplish is maintain your knowledge of cryptocurrencies, but also bring in regulation to make sure that customers aren't left holding the bag or you're looking at the space as a whole, just burn down and

crash

, so you know, part of this is what we call crypto collapse. I mean, we think it's inevitable because we recognized a speculation bubble, but part of it is, as you say, we want to do our part to help with the lobbying. I mean, there are so many companies that are pushing for cryptocurrencies. You have investors like Andreessen Horowitz, who really want all this regulation to allow this. new crypto space, but all you get is that you are seeing American retail investors lose their life savings in these schemes and you know that hypothetically, regulation is supposed to stop that, but in reality there is no advantage in even allowing all the stuff in the first place, so what's the

next

shoe to follow?
binance the next domino to fall in crypto crash angel investor says
Do you think if you call for this to collapse or at least the bubble to burst, what are you seeing

next

? Yes, there is a big contagion in the crypto space, so you know Silvergate bank is something that is not discussed enough, it is basically the only connection to Fiat banking that the crypto system has and deposits are being withdrawn from there, so it can collapse. I'm sure at Silvergate Bank, um, you might see nexus, which is a crypto loan. platform that could be the next FTX, you know, it's another centralized crypto lending platform, but it could be anything, it could be bitfinex and tether, these things have a way of mixing behind the scenes, you can't tell what's going on, but the

domino

es just

fall

one after another, what about someone like Binance?
I mean, we showed CZ who the founder and CEO is there and he's been taking a little victory lap, obviously his rival FDX has now collapsed. I mean, is this a platform you think? customers should feel comfortable or see red flags there too, major red flags that you know about and good for CZ for being one of the last ones standing, but that also means he's the next Domino to

fall

like it's not There would be no positive indication that Binance isn't using the same shady tactics that we've seen from all these centralized crypto players, I mean based on what you've seen that leads you to make that statement, so one thing is that their balance sheet It also has the same. red flags where there are a lot of their own tokens on their balance sheet so the accounting is already confusing just from that, so you think the same thing could happen like what happened with FTX.
I think the contagion will eventually come from

binance

and it's hard to tell who goes first, but every time a

domino

falls, you know, it becomes harder for the next domino to stay standing if it opens more holes in the balance sheets. . Finally, you know, we've seen people like Jeremy Lair at Circle call for more regulation, he's talking specifically about stablecoins, but the argument has also been that because US regulators have been so slow to move much of the commerce from UA in the US, it has taken offshore exchanges like FTX as finance and that is what ultimately caused everything.
This is that the regulators are also to blame because they did not move fast enough. Do you agree with that thesis? Well, you know you can say it was pushed overseas and was outside of US regulation, but the thing is, that's where all the fun is. right, so you have coinbase under your belt, they are regulated, they probably won't lose anyone's money, but they are boring, right, all the good things are happening overseas, that's why people get into cryptocurrencies because he wants to make the kind of Take advantage of speculative bets that these casinos like FTX and Binance know they are best at facilitating

angel

investor LeRon Tripura.
It's good to talk to you today. I appreciate your time. Delicious beer.

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