STRIP VOLATILITY

“So I would say probably the thing that's holding the price back is rehypothecation of the underlying crypto asset in the crypto economy. And the thing that will drive the price to the moon is people stop rehypothecating, and they call like, we call that asset back. We put it in cold storage, and then whoever sold it short has to buy it back, and the price moves north.”

“And the answer is, everybody would just like a bank account that pays them more than the inflation rate. Like, how about give me a bank account that pays me 8%. Right now, your bank pays you zero. You know, what we say tongue in cheek is fix the money. We have a chance, in my opinion, to fix the money for a billion people. Not complicated. Just requires that one not get distracted.”

“You guys remember The Hitchhiker's Guide to the Galaxy? What's on the back of the book? Don't panic. Don't panic. I think that, by the way, that was Douglas Adams, and that was, what, fifty, forty years ago? Very good words. It's okay to consider all these things. It's okay to even study them and think them through. I think that the real the real mistake the fatal mistake to avoid is panicking.”

“So we created a monthly variable rate preferred stock where the company, the issuer, has the ability to adjust the credit spread, in essence, adjust the dividend rate each month at its discretion. And then we pay the dividend as a cash dividend each month. So what's unique about that? That's the first time in the history of the world, guys, where anyone ever created variable rate preferred stock.”

“Oh, I think eventually it's going to 20,000,000, 21,000,000 a coin. I think it's gonna emerge as the dominant digital capital of the world.”

“The real brilliance of the business model is you're acquiring a capital asset that you're holding perpetuity and you're never realizing the capital gain on it. If you pay the dividend by remitting the unrealized capital gain back to the credit investor, the dividend becomes a return of capital dividend, which means it is also tax deferred. So you could be a retiree, collect dividends for ten years, not pay tax, pass it through to your heir. They get a step up and they get ten years of dividends that are also tax deferred.”

“What happens if the company can't pay that? Well, by law, you can't pay a dividend on a preferred stock that would create an insolvency event for the issuer. Like, the board has to approve the dividend. So you understand, like, it's literally impossible. It is literally impossible to create an insolvency or to bankrupt an issuer of a preferred stock.”

“I think that the crypto market has really evolved into various segments. Ethereum clearly is the leader in that space right now, and and all of the other proof of stake networks are going to be competing, you know, to tokenize securities and tokenize currencies and the like. I say two years ago, the future was bleak. Now you just gotta you gotta fight for for the best future you can get.”