The Decrypt Daily: Bitcoin & Cryptocurrency News Podcast - Oct 29: Alex Mashinsky: Celsius Network & Chainlink Team Up

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From the Crypt. Co this is it a Crip daily and my name is Matthew Aaron today on the show okx denies using single Save the Queen Cold Storage wallet Avante becomes Second Bank of the US and in our main conversation I have on the CEO and founder of Celsius Network Alex mashinsky coming up today under the curve daily.

What's up, everybody? Welcome to the show. Today is Thursday, October 29th, 2020. And before we get started today, I just want to make an announcement and an observation. If you remember last week's episode Bitcoin can arrival gold and silver. I said we're going to have a contest giveaway of three books and three t-shirts. The book is the silver Manifesto by David Morgan and a shirt is a Bitcoin shirt and I have 3 winners, please coyote Kane tune, Suey and floating 20/20. When you do hear this, please send me an email at Matthew Araneta crypto Ico so I can get your mailing address so I can send you these books and the t-shirts congratulations on the win and thank you for listening and reading those wonderful comments. And my observation is that when the stock market goes down Bitcoin goes down when the stock market goes up Bitcoin goes up. What do we have today enough stock market? What are you also have today is Bitcoin prices also going up now. I want to take you out behind the scenes decrypt day.

Story when I'm starting to show astronaut pilot episode that I used to do the crypto prices and remember that I had a consultant newspersons videos train in media always telling you you have to tell people the reason why somebody is going up or the reason why something going down you have to tell them this and they said that don't make it more compelling and I always felt that every time I hear it on the radio every time I hear it on CNN or fox or CNBC or any kind of new show. I just think to myself y'all don't know y'all don't know unless it's obvious unless something like exchange got hacked or some Wale does liquidated a lot of Bitcoin. You don't know and I refuse to do that. I refuse to go. Hey Bitcoin went up $100 today because of the news of Exxon Mobil merger with or Bitcoin went down today because of Kobe cases in Paris and Paris is not buying as much Bitcoin. So Bitcoin dropped 10 points today. No, I refuse to do that because you just don't know.

It's completely obvious. You just don't know and yesterday I was listening to the radio. Listen to NPR and it did this whole 30 minute segments of why the stock market went down yesterday and it was Dire the numbers that job numbers are not coming back the way they were the deficit is going crazy The Cove at cases are climbing. Nobody sure about the market people are holding their money people doing invest weird looking at a and then the next day everything goes back up. He's just like ya'll do you know what you're talkin about. Do you know that sometimes you have to take a big step back to make an even bigger step forward and I don't know how this going to go no bacon time to stop market. Then we can predict the stock market. Nobody could predict the crypto prices. All I'm saying is you're full of shit looking at those crypto prices.

Here Wego money talk and like I said Bitcoin is up today. We're looking at $13,553.47 Bitcoin up 2.8% from yesterday at the rooms also up at 39152 up almost 2% from yesterday the rest of the coins a little bit of a mixed bag like going to 5546 down Point 3% chain link 11:40 don't have a percent and xrp at 24.53% Total market cap of cryptocurrency is 399.2 billion dollars by they get that 400 Market in a PTC down this just about to hit 63% sitting at 62.9% and the cryptocurrency markets about to hit 400 billion off of bullish news coming out of Wyoming.

I'm just getting off. I'm just getting I have no clue where I just remember not your keys. Not your coins. That is one thing I know for sure.

An alarm in conversation today we have on mr. Alex mashinsky the CEO and founder of Celsius Network. He didn't talk about Celsius and their partnership with chain link and chain links Oracle. And if you remember we had on Sergey of a chain link about a month ago look for that conversation in our history, but for now, here's Alex right to be at the big news today coming out today. Celsius is really integrates with chain-link oracle's as a key component of its pricing Services. That's a big sentence a lot of big news coming out of Celsius and we're going to go into Celsius in a little bit, but tell me about this collaboration with chain-link sure. We've added the channeling several months now submit month ago. So I wallet so we we've been basically paying interest on link and issuing loans against link the chain link Community is just amazing. I think it's our third most popular coin after Bitcoin ethereum. So definitely very close collaboration. Also Sergei was

On my mark show on on YouTube. So if you want to see all the details out, there's also a great episode over there any but I think I thought it was a very important for both groups that kind of work much closer together and develop how much more detailed ability for the basically for the industry for defy to have accurate the data mean we've seen several instances where there was price manipulation and other type of hawks the beauty heart that uses of community and integrating the oracles working closely on developing better and faster Protocols are things that we really proud to be part of what does it mean for Celsius. What does it mean to have a better price integration bikini because it as you said price manipulation, can you tell us about how that works directly with Celsius? Sure. So Celsius lens to institutions exchanges and Define. So we we operate an all different platforms, right? We have close to two billion in assets under management. So there's only thing only grayscale is

Adjust in Celsius. Everybody else clouds much more than that sell a lot of people in the community don't understand the size that we've grown to 6 very important that we as either the lender or the Boer war base anchor pricing and Anchor Information in an accurate way because we moving hundreds of millions of dollars. If we do it under the wrong data or under the wrong assumptions, or we can move Home Market we can we can crush this of that project cuz we land this or that at the wrong price so far us the responsibility we have very high with Feel That Again being accurate being real time being available or things that are crucial and I think she only believes in all of that as well. That's why having a very tight integration very tight Corporation is something that is very very important for the defy Community. I did not know that you guys were holding that much in assets. So that's impressive. I remember when you guys came out you guys always skeptical to be perfectly honest with you because

Concept of holding Bitcoin paying our holding crypto assets and paying out interest. I was wrong that I'm going to admit that but the whole Industries about that today in two ways one was like you said earning interest but Celsius was still talking was also the first time somebody paid you interest in the different token compound are copies of what Celsius did the year-earlier with the skull tokens and you earned in cell if you chose to trust Celsius and are an incel you made of a two thousand four hundred percent return and that does not include the compounding interest and actually the yield that he's going pays it just a few hot on sale you made over two thousand four hundred percent. It's definitely one of the best performing assets out there a question is I want everybody to know and I have two questions here in the are you do this all at once is one tell everybody. What is Celsius in a basic form? And the second question is look I'm a big advocate of not your keys. Not your coin.

You're putting your Bitcoin unto like Celsius what guarantee that I have that I will not lose my Bitcoin other other people won't lose their Bitcoin because you know, that's one thing that's holding people have poop people back is all the time and exchanges and what-have-you. They say to see this every month at least in the crypto space. What is Celsius and how do you protect against that sure is a very good very simple things. Right? We give you a loan. If you need if you have an acid, you don't want to sell it let see of Bitcoin or ethereum or chain link and you just don't want to sell it either because of tax reasons or you think is going to go we allow you to borrow against that asset and you can effectively before your taxes to very very useful service it now before Celsius showed up and offered that utility of our competitors charge you twenty 24% to borrow against your Bitcoin. We charge 1% for a year so you can take a loan against your Bitcoin.

Apothecarium on lending the assets the institutions. So so we really crush the competition because we acted in the best interests of the community our interest was how do we grow the largest community? How do we bring a hundred million people into crypto? Let's not be like the banks like the credit card company. Let's not charge people as much as possible that such people as little as possible cuz there's plenty of profit on the other side. So that was kind of in and the Revolution and we do over a hundred loans a day today. I'm all over the world. We are operating a hundred seventy countries. Do we help again hundreds of thousands of crypto guys again who hodl? We were harmless Community right to hardly even more right? That's what it allows it to do. The second service is basically allows you to earn interest you can earn interest on 41 different assets tokens and coins. You don't have to harvest, you know, if the farm you don't have to work 7 days a week around the clock wake up in the middle of the night check your positions uses deposit and it earns interest. That's what we innovate it right that we basically invented the idea that you can just just

Savings account deposit to crypto asset and now it's your specific question about that. Not your keys first. We not telling anybody. Hey move all your coins to Celsius don't have anything in cold storage or or I agree with you. There are way too many scams. And unfortunately, it is true that you know, that is it is a high-risk to trust somebody else and now unlike binance and every other exchange you can think of Celsius is never been hacked waxy. We used to MPC companies for security multiprotocol computation two layers on top of each other. No one in the world is as figure out how to do that me and my team we're all access military counterintelligence Social Security with our job was the kind of like secure the country of Israel. Make sure there if you make one mistake you wipe out the whole nation, there's no no, it's okay. There's still something dollars so that we know what it is to have higher responsibilities and so on.

I think we are probably one of the most secure places to store your coins and each person has to make their own decisions that there's a lot of Savvy guys like you who feel very comfortable managing their own key is the most of the 7 billion people live on this planet cannot do that then and we not really focused on trying to convince not your keys guys to give us their coins when we focused on is convincing hundreds of millions of people who will never join crypto. If we ask them to have you don't hold their keys to really use a wallet that we created that is so simple. It's just like your bank app does the same thing you are an interest you can do whatever you want then do you have insurance you have a guaranteed in the situation that something does happen. Do do you protect your clients assets? Yes. So so several components there first and you know Celsius is not that's little company that you know, you're so two years ago 3 years ago. So today we have over four hundred million dollars.

And assets so so essentially any any problem or any any kind of issue that someone had will have with their coins. We will stand behind the first as we stated several times. It's going to come out of our hide first and then you will you step 10 or 20 million four hundred million dollars and ask if they become self is the largest holder of the cell dokkan. So we have over 50 million in cash over on a million of Celtic and assets and we never had a hacker get never had to hack never had to loan that wasn't repaid on top of that. We work with fire blocks and few other custodians who have their own insurance. So for example, if I block is the only company I know that has hot wallet Insurance meaning there was a hack on the on chain of there was malicious activity by one of the employees at one of the provider's all that is covered by the basically than the fire block infrastructure. And that's a 25 million dollar insurance policy that they carry is part of us being

Customer so so NH. Each operator has their own the they publish their own insurance. A lot of people talk about the cold storage storages. When when you were in The Lending business like we are a most of our coins actually are always out working or earning interest. So when the girl tells you I have $200 worth of cold storage or or Gemini with somebody like that that is great for when you want to call when you keep it with him. But when you lending it out, what you care about is the time that it moves in and out and the credit worthiness of the counterparty right to use celsius lending to high-risk customers or Celsius sticking with the most creditworthy counterparties then and we are lending to the largest. We we we require collateral unlike some of our competitors because of that then we think that they Celsius is the safest place to hold your assets if you want to earn you. Thank you very much.

Briefly tell us the future of Celsius. How do you feed Celsius integrating with in the USA the global economy the printing of the u.s. Dollars the unstable or a little shaky future of the economy in the future in the next four years the next to the Presidents of the United States. How do you say Celsius in degrading because I think overall is a critical problem or if they win the best outcome which unfortunately stuck on processed American but the best outcome for crypto is a disputed election because that's where everybody's going to rush into crypto because they're going to be worried about what's going to happen next. Obviously. We don't want that but then I never thought about that is good good answer but each one of them.

I wrote a Blog about it too. So it's basically like bite bite in this going to dramatically spend social spending and Healthcare things like that than Trump is going to car taxes and increase our children's, you know, unpaid liabilities, right? So so we know what each candidate is going to do again. If you focus on the US dollar the FED print to 20% of all the dollars that ever existed just this year. That's 20% inflation was not the way to call it right that you holding collars and you're not holding Bitcoin your money. Somebody took scissors and just kept 20% of that dollar bill. Most people don't understand that because they look at the CPI consumer price index of the government's public has every month and they said there's no visor but you have to have no correlated. I said you have to have gold us still have Bitcoin. Yes every cereal and those are the three core acids that I believe in obviously still talking on top of it. But the point is is that today you can buy gold.

Sample packs gold feather gold which yields you four and a half percent. All you do is you pipe by packs go put on Celsius and you can borrow 70% of that at any time right and not pay taxes on 1% so that tool never existed in history. So now, you know correlated because your salary your home your retirement plan to hold dollar-denominated, right? So you want to escape that right of the government continues to act in its own best interest not in your best interest, you got to put as much as you can away from dollar-denominated assets. That's really the kind of like, they'll consider the matter what president when you got to do the same thing. The outcome is the same the recommendation is the same no matter who wins but I have to reassess question cuz you didn't answer this question, but I only have 30 seconds left. Where do you see Celsius during this next four years. So we think we're going to cross the 5 billion dollars in assets. We we looking to have over a million customers that we serve the Twee.

We change lives right of me. We help people here which retirement Financial Independence. We want people to live off their interest income still living off other principal, right and and we already have tens of thousands of people reached out cuz it's so can appreciate it so much, but the idea is to really bring back. What was Norm 20 years ago where you would put some money away 6 or 7% and is compounded and you had enough money for retirement. So we adding swap into the wall that way I didn't buy and selling of of coins. Do you have the full functionality in the wallet, but the court to serve what does a still borrow what you need and earn income on more and more assets ski CEO and founder of Celsius Network. Thank you very much for coming on the show. Thanks.

And another news denies using single signature Bitcoin cold wallet, if you remember on October 16th, OK ex stopped halted withdrawals from exchange. This way was originally Spotify sino-global Capital CEO Matthew Glam and reported on it by the Crypt and cleaned up. Okay extra light on a single signature Bitcoin wallet, that would be an important development given that the exchange was Paul for withdrawals after I found her swimming scene who is the private key holder was taken away by Chinese police earlier this month. So they're saying that the way there's nobody able to access the cold wallet. So therefore withdrawals have to be held so you must be only one key that turns out it could be false and Matthew Graham recently deleted the tweet that said this because he said that that's we could have been photoshopped. OK extra nice all of this and then go ahead and tell us about the procedures needed to access their cold wallet link is in description. It's pretty expensive.

I don't want to go through it. You can't do it on podcast to make it sound good and understandable. So you can go there and read it for yourself procedures and regardless if they're adhering to the procedures are getting restless and they want their Bitcoin. They want their funds but they claim and they state that your funds are safe for have to see how this plays out.

About to become second crypto Bank in the u.s. Wyoming is on a tear over back in September of Kraken received the bank Charter from the state and now Avanti becomes the second the charter allows it to revise specified banking services, including digital asset custody start opening commercial account next year. They say and quote we will provide products and services that do not exist in the market today. They going to say currently the only type of us financial institution that can provide final and simultaneous settlement of Trades between digital assets and the u.s. Dollar because it's the only type currently approved to handle both within the same legal entity is a Wyoming special-purpose depository institution like Avanti and quote. Now, I always say let's see how this plays out but banking crypto digital assets. We see a lot of different players coming into the digital assets based either provide the network the framework the banking the platforms or institution was just coming in to buy and hold Bitcoin.

I really want to see how this plays out, but it does seem to be a big like groundwork or infrastructure being laid out nationally for digital dollars blockchain Tech and a blockchain future.

And finally the week of I let Gemini exchange now accept your role for crypto. Gemini has added the support for the euro exchange is building up its business in Europe the UK to it has recently security license from the UK's top Financial regulator. Gemini has also added support for Bitcoin and ethereum pairings for the Euro and the British pound on his active Trader platform. So Gemini's making moves into Europe with more currently supported good job Gemini and congrats to the EU and the UK.

Fever listen to this episode of the decrypt daily. And again the winners of last week's contest coyote came who's Suey and floating 2020. Send me an email Matthew Irwin at the capacity. I'm in need your mailing address so I can send out this book is over Manifesto by David Morgan and a Bitcoin t-shirt to you and a sincere. Thank you for taking part in the competition. Happy Halloween. Everybody be tomorrow.
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