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1Friends,
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3Welcome to a very special webinar I’ve put together exclusively for my Palm Beach Confidential readers.
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5A few weeks ago, I told you about a guaranteed phenomenon coming up that will affect the entire crypto market… The last couple of times this happened, we saw the price of some small coins skyrocket hundreds of thousands of percentage points – or more.
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7This time, I believe we’ll see the same thing happen again. And I told you the five coins I believe carry the potential to hand us $5 million in profits when it does.
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9Today, my right-hand man and chief crypto analyst Greg Wilson and I are going to do a deep dive into the event, the five coins I’ve pinpointed, what’s going to push them higher, plus two bonus plays I think will benefit from it.
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11Plus, you sent in your “Five Coins to $5 Million wish list” items, and I’ll be sharing some on this webinar.
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13We have a lot of ground to cover in this invaluable update, so let’s get started.
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15Click below to watch the video or scroll down to read the transcript.
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17
18Transcript
19Teeka Tiwari: Friends, good evening and welcome. I really want to thank you for joining us tonight. Tonight is a very special event. It is just for members.
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21Tonight, we are going to do a deep dive on our Five Coins to $5 Million portfolio. We’re going to talk about the reasons I expect we will have the ability to make $5 million from these tiny five coins, and we’ll also talk about two more coins we’re going to be adding to this portfolio that I think have absolutely staggering upside.
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23Now, those two coins are already in our bigger portfolio, but I want to add them to this specific portfolio and tell you why we’re adding them to this list.
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25Joining me tonight is my good friend and right-hand man, Greg Wilson.
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27Greg Wilson: Teeka, thank you for having me.
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29Teeka: Thanks for coming, Greg. I know, this is kind of outside your comfort zone. You don’t really like being in front of the camera, but I really wanted you to be here tonight. Thank you so much for agreeing to be here.
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31Greg: Thank you for having me. I’m super excited to talk about the Five Coins to $5 Million.
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33Teeka: Excellent. Friends, I want you to know that Greg is one of the top cryptocurrency analysts in the world. I am so lucky and fortunate to have him on my team. And I’m really happy to share him here with you tonight. Greg’s going to do a deep dive with us and really take us through all the nooks and crannies behind these ideas, so it’s going to be amazing. Thank you again, Greg.
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35Before we get started and get into the nitty-gritty… A few weeks ago, I shot a video on a 58-foot, $1.3 million Belize Daybridge yacht, and I talked about dreams. I talked about wish lists. And I talked about how getting a yacht was one of my dreams. Now maybe I won’t get a Belize; maybe I’ll get a Fleming. Some people have talked to me about Marlow. (Thank you so much for those of you who sent me different yacht ideas… But that’s been a big dream of mine for a long time.)
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37You know, I could cash in some coins now and buy one, but to me that would be insane. With the growth I see coming ahead, a $1.3 million boat might end up costing me $13 million by the time everything is said and done.
38And I also asked you, “What are your wish lists? What are you looking to buy from your $5 million profits from our Five Coins to $5 Million portfolio?” And I got some incredible feedback, so I’m going to read a couple of them now.
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40“Dear Teeka, I’m a single father who moved to my hometown about two years ago, the same time I subscribed to Palm Beach Confidential. It is a struggle even for a doctor. I plan to buy a smaller boat (LOL). I hope to hire a nanny to homeschool my son and be able to spend time on the water wherever I want. On holidays, I will set course for the north, up the rivers to Ohio and to visit my family,” which sounds amazing.
41
42Lila sent me this... “Hello from France. Thank you for sharing about the toy you’ll have next year. Unfortunately, I get seasick, so I won’t be buying a boat. Instead, I will do a world tour but very slowly, more luxuriously maybe, and whenever I can, I will use other means than planes to see more on the way and meet more people. I will be traveling the world with my son, who is 19. Best regards.”
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44This is a very nice note we got from Kathleen... “Hi, Teeka. I love your positive attitude and smile. So with my profits, I am going to buy the houses that my children and grandchildren live in. If I have a little more left over, then I am getting a house at the ocean we can all go to during the summer. Thanks for making our lives better, Kathleen.” So thank you, Kathleen.
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46Thank you for everybody that sent in some notes, and I’ll be sharing some more. I’ve got a whole sheaf of them here to share.
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48What we’ll start doing now, though, is getting more into things. This is going to be an informal evening we have together. I don’t have teleprompters. I don’t have 50 people behind the camera. This is a more intimate gathering just for my members as we talk about not only our Five Coins to $5 Million portfolio, the two extra coins, but also why we selected these coins. And we’ll also talk about what’s going on with these coins... What’s going to get them to make the stratospheric move... And what is going to move the market to the degree that I think it will.
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50One thing I will say is don’t feel like you’ve got to take a lot of notes this evening because this recording is going to be available for your review.
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52So what I want to do tonight is explain in more detail why we will see the whole crypto market light up like a Christmas tree, why the bitcoin halving kicks off such a boom, and why this next crypto boom is going to be the biggest boom we’ve seen yet.
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54And then we’ll do a deep dive into our five coins, plus we’ll reveal which two of our portfolio coins we’re adding to the list. And along the way, Greg and I are going to chat about all things crypto. We’re going to answer some of the many questions that you’ve sent in. And, of course, I’m going to continue to share what you’ll do with your own money once you start reaping your Five Coins to $5 Million rewards.
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56The first thing I want to talk about is the setup I’m seeing emerging in the crypto market and why that’s going to be such a huge boom for us. To do that, I’ve got to talk about something that happened in 2002 that had absolutely nothing to do with crypto.
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58Back in 2002, oil had been in a bear market for about 20 years. It had just been horrible. Since peaking in the early ’80s, the oil market had done nothing. In fact, in 1998, oil had gotten as low as $8 per barrel, and it had completely destroyed the oil producers. The number of rigs that were actually out there that were being used to drill for oil had just fallen off a cliff.
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60Chart
61This is what happens frequently in commodities. They go through these horrible bear market cycles, and it becomes too expensive to go hunt for more of the commodity. So, generally, as it gets more expensive to hunt for the commodity, people stop looking for the commodity. And then, a shortage emerges, and then demand kicks in, normal demand, which then causes the price of the commodity to go up.
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63But if you want to see all-time new highs on a commodity, what you need to see is not only supply go down, but you need to see brand-new demand come into the market. You need to see demand come into the market that has never existed before. It’s the only way that you get record prices. Because if you just see the historical demand that’s always been there, yes, you will get a rally. Yes, it will be tradeable. Yes, there will be money to be made. But you won’t see gigantic moves.
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65So why am I talking about all of this? Well, back in 2002, I started buying oil service stocks, and I was looking like a goat. I was just looking terrible on this call. My thesis was we had $8 oil in 1998. It’s too expensive to drill for new oil. At some point, people are going to need more oil, and you’re going to see a rebound, right? So that was my initial thesis. You were going to see a rebound.
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67But then, I started doing a deeper dive into where more explosive demand was coming from, and that’s when I got turned on to the China story. Here was this massive economy that was going to be transforming itself from a farming economy to an industrial economy. Look, I don’t have a college degree, I don’t have PhDs, but I know when 1.2 billion people go from riding around in ox-driven carts to riding around in gas-powered vehicles, you have to understand that the demand for petroleum products is going to go through the roof.
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69Greg: Absolutely, yeah. You know, wealth goes up. The Chinese have more money to spend. They want to buy cars. They want to buy other products we’ve got in the US. And between that ’98 to 2002 period, demand for oil in China just exploded.
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71Teeka: It exploded, and everybody was asleep at the wheel in the West on this story because they had it in their minds set on, “China hasn’t done anything in 50 years; it’s always going to be a backwater economy.” But I looked at the numbers, and I saw that their demand for oil was going insane.
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73Chart
74Greg: It’s a straight line up, Teeka.
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76Teeka: Right, but the price of oil really wasn’t doing that much. So I figured, I’m going to buy all these oil service guys because the demand for their services is going to go through the roof. So what happens? I start buying Transocean Sedco (RIG). I get into the stock from as low as $20 to as high as $27.
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78Six months later, the stock’s doing okay but no great. It’s trading in the mid-$20s. the rest of the market’s starting to rally off the dot-com boom, and I’m starting to underperform dramatically. And I’m going around anywhere that people will listen to me, saying there’s going to be this enormous boom in the price of oil because China is going to have this explosive demand for oil. People are looking at me like I’m crazy. They’re like, “You’re wrong.”
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80Chart
81In fact, during that period of time, the Organization of the Petroleum Exporting Countries (OPEC) came out and announced an oil production hike saying, “We’re going to drive the price of oil lower.”
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83So oil, which had been trading around $22 – $24, (I’m trying to be nice about it) just poops the bed and goes down to $18 bucks!
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85Greg: You’re not looking so good at that point...
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87Teeka: Yeah, I’m looking like an idiot, right? So everybody’s saying, “Oh, Tiwari, you’re wrong. Transfer my account out.” And I’m there making these phone calls and saying, “Guys, the demand coming out of China is all public knowledge. You just look at how much oil they’re buying. Look at how much oil they’re using. Look at how much new oil is coming to market. All you’ve got to do is look at the rig count, which fell off a cliff!”
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89Greg: From ’98 to I think about mid-1999, it fell by 37%. They just shut down production wherever they could. And even by 2002, it hadn’t recovered to the previous high.
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91Teeka: No, not even close.
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93Greg: It’s just like you said: We have this situation where supply has been severely cut. At the same time, demand is ramping up, and that leads to a moneymaking opportunity.
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95Teeka: It does, but it never happens with my timing, unfortunately. But I don’t have insider information –
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97Greg: You’re always early.
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99Teeka: Yeah, I am always a little bit early. I don’t have a crystal ball. But what I have learned is that if you can get the big drivers of demand right, and if you can get the right ideas that are going to benefit from a huge wave upward, then even if you’re a little bit early... yeah, you’ve got to deal with some volatility... but you’re going to ride that wave and you’re going to make a ton of money. Because anybody who tells you they’ve got perfect timing is a liar or they’re an armchair quarterback.
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101Greg: It’s impossible.
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103Teeka: It is. So I focus on these bigger drivers. So anyway, I was going through this process. And all of a sudden, oil starts rallying. It’s early 2003. Oil jumps up from its low of $16.70 to as high as $40, and I’m thinking, “Man, I’m right! I got this! I nailed it!” What happens to Transocean Sedco? It drops like 13%.
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105Chart
106Greg: Oh, man.
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108Teeka: Oh my God, the hate was pouring in. “You’re an idiot! I can’t believe you got me in this crappy stock. Look, oil prices are up; why isn’t this thing moving?”
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110Greg: No one likes you when you’re in the red.
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112Teeka: Exactly. But here’s the thing: It wasn’t just RIG that was down. It was the whole oil sector. All oil stocks had gone down, even as oil was breaking out to highs that it hadn’t seen since the early ’90s. We hadn’t seen $40 oil since ’90-’91 when Saddam Hussein invaded Kuwait. It’d been a long time.
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114The reason the stocks hadn’t moved up was that Wall Street was convinced this was just a momentary blip in oil. They were not convinced we were seeing a secular shift in demand. And they were wrong, and I was right. But nobody cared. My clients didn’t care. All they could see was oil was up, and my stocks were down. And I’ve been in that position so many times in crypto.
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116So what happened? I tried to hold hands as best as I could, but I lost a lot of accounts, and people got mad at me. RIG dropped from $25 down to $19. But I reexamined my premise. I reexamined my thesis, and I knew I was right. It wasn’t just blind hope.
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118What ultimately happened was Wall Street woke up to the fact that the demand picture has changed. We’ve got 300 million new consumers entering the middle class in China. That’s going to create a level of demand for oil that never existed before.
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120Greg: It’s interesting how that happens because you’re absolutely right. It’s there right in front of you, in plain sight, that this is going to happen. But for everyone to get onboard, it takes some time. There’s a lot of conversations that have to take place and a lot of convincing. And then, once they decide to allocate that money – like you’ve talked about – Wall Street can be a herd.
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122Teeka: Yes, and then boom, it was everybody was talking about China. And so Transocean Sedco, which people were selling at $19 – 22 when they got mad at me, went to $160 per share.
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124Chart
125Greg: I bet some people were frustrated to be out of that trade.
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127Teeka: Yeah, exactly, to miss out on $160 per share... So my point in telling you that story is that it wasn’t blind hope that got me in that trade. It was this idea of limited supply meeting explosive brand-new demand. That’s what that trade was all about. That’s all you had to get right to make a ton of money on that transaction and buy good names. You couldn’t buy crappy names. You had to buy good names.
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129And this brings me to where we are with crypto. Instead of me trying to figure out what every single little nuance of a move in the crypto market means, I don’t bother with that. Because I can’t answer those questions. What I do is I always look at what the big fundamental drivers are.
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131For me, as we look at crypto right now, I’m seeing the same setup that I saw back in 2002. I’m seeing a dramatic drop in issuance through the halving (which we’ll talk about in a second) married with a massive increase in demand due to the presence of Wall Street and the securitization of crypto assets into products that they can then sell to their customers.
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133Greg: Make a little bit on the fees.
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135Teeka: Right. Well, the whole thing is… They have sat back over the last four years and they’ve watched companies like Binance and Coinbase make literal billions and billions of dollars in fees. I think last year, Binance’s net income was bigger than Deutsche Bank.
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137Greg: Yeah, it was.
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139Teeka: That’s insane!
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141Greg: I don’t think anyone would’ve believed that two years ago.
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143Teeka: No one would’ve believed that. So the point is: Wall Street is greedy, and Wall Street’s current fee structure is shrinking like a snowman in summer. They’ve got huge problems with their normal fee-generating business. If you look at their commission business, it’s gone.
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145Greg: Yeah. A lot of exchange-traded funds (ETFs) are trading at 0% now. Commissions at all the major brokerages are being slashed to zero. So they have to find new ways to generate income.
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147Teeka: And then, look at what has always been one of their biggest sources of profits – actively managed funds where they can charge 1-4%, and a couple of hidden percentages that you never see through all their BS machinations, whether it’s like selling their order flow or dealing with related third parties that they charge extra fees on. I mean, they know how to squeeze the juice out of an orange, you know?
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149Greg: Sometimes there’s fees for the fees...
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151Teeka: Exactly. But what’s happening now is American investors are getting smarter. They’re moving to passive income funds that are charging, four basis points instead of 400 basis points.
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153Greg: It’s a huge difference.
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155Teeka: Right. So four-tenths of 1% versus 4% – it’s a massive difference. So on all these different sides, Wall Street’s typical fee machine is getting attacked. And what crypto does is represent this new area that they can charge massive fees on, because it’s an opaque market that people don’t really fully understand.
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157Greg: Absolutely.
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159Teeka: You know, unless you’re a Palm Beach Confidential subscriber, this market is Greek to you.
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161Greg: It’s still very early, it takes a little bit of navigating around, and there’s a little bit of a learning curve. It’s not like your typical bank where you just open up an app and everything’s kind of right there for you.
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163Teeka: Yeah, it’s not one-two-three yet.
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165Greg: But it’s developing quickly.
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167Teeka: It is. But for crypto to go mainstream, the average person is just not going to deal with wallets. They’re not going to deal with 18-digit wallet numbers.
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169Greg: It’s got to be easy. Your grandma has to be able to use it. Your mom has to be able to use it. That’s where we need to go.
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171Teeka: And that’s where Wall Street’s going to come in. So the typical MO for Wall Street when they go into a market that’s a little bit more difficult – and I’ve seen them do this with foreign currency and foreign stocks, and in the ’90s and in the late ’80s, trying to buy foreign stocks was a nightmare. You had to open up a foreign account. You had to fund it with foreign money. You had to deal with a foreign broker. You had to be in the office at 5 a.m.
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173Greg: And I can’t imagine what the fees were for that.
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175Teeka: Yeah, and the fees were around 7%. That’s what people were paying all in, which was insane!
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177Greg: It’s insane to start down 7%...
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179Teeka: That’s right! So what happened was you saw Wall Street starting to securitize these products that would give you access to these different markets, whether it was through exchange-traded notes (ETNs), ETFs, different types of mutual funds that they could then use to create a way that made it easy to buy 50 different stocks trading in London by just buying one ticker. So that’s Wall Street’s MO. They go in, they make it easier, and then they charge a fee to do that.
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181What I’ve been saying all along here is that as the regulatory environment starts to clear, which is happening – it’s happening on the IRS side, it’s slowly happening on the SEC side, and it’s certainly happening on the execution side now that you have Bakkt, which is owned by the New York Stock Exchange’s parent company – finally you have a credible place where you can house these assets, you can build these securitized forms of equities that give you exposure to these assets, and you have a clearing firm that can clear that trade, which didn’t exist until September.
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183Greg: Right, and for institutions, custody is a really big issue. They have a fiduciary responsibility to make sure that the assets that they invest are safeguarded, and that’s why Bakkt is so needed. So it’s a major relief for institutions in the cryptocurrency space.
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185Teeka: Yeah, for the whole industry. So now that you have that in place, as the Wall Street industry starts to get more of more guidance from the SEC, you will see the securitization of crypto assets. You will see things like ETNs, ETFs, and probably brand-new types of securities built around these types of assets.
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187You might ask, “How are you so sure?” I’m sure because I understand the greed that drives Wall Street. I’m sure because why would Kelly Loeffler (who runs Bakkt) put her reputation and the reputation of the Intercontinental Exchange, which is a multibillion-dollar business that just prints cash, on the line? Why would they bother? It just doesn’t make any sense.
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189Greg: Right. They’re the top exchange operator in the world. They own the New York Stock Exchange. They own over 20 exchanges across the world, so they see a massive opportunity, and they want to be the first ones in.
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191Teeka: Correct. Why would Fidelity bother getting involved? Why would any of these huge names - TD Ameritrade, Schwab, Morgan Stanley, Merrill Lynch? Because they’re looking at creating products for this market.
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193So when you see that level of interest, it tells you that there’s money there. It reminds me of the very early days that I got involved in crypto when I was looking at Ethereum (ETH), when it was trading around $6 or $7... What convinced me to pull the trigger on Ethereum was that at a bitcoin hackathon, 80% of the developers chose to develop apps on Ethereum rather than bitcoin.
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195Greg: It was the hot new thing: Vitalik Buterin, smart contracts, etc. So it was really revolutionary at the time and still is.
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197Teeka: When I saw that the smartest guys in the room picking Ethereum, I knew we had to buy Ethereum, right? I was just following the brains. I didn’t have to be the smartest guy in the room to understand if the smartest guys in the room are picking this to develop on, that’s something we want to buy.
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199So it’s the same thing with following the money. Wall Street people, love them or hate them, they’re the smartest moneymakers on the planet. Nobody makes more money than Wall Street and bankers, period, end of discussion. Look at the income statements of banks for the last hundred years and brokers for the last hundred years. Compare it to any other industry which goes through boom and bust cycles and some that aren’t even here anymore. The bankers are always there.
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201Greg: I think the financial sector is about 250% bigger than it was 20 or 25 years ago. So they’re just gobbling up market share.
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203Teeka: Constantly. So you never lose money by betting on Wall Street’s greed. So for me, that’s the bet I’ve made. I’ve bet on Wall Street’s greed, and I’m asking you to make the same bet. I’m asking you to bet on Wall Street’s greed, and I’m not asking you to do it in a vacuum. If we were here in 2019 and Bakkt hadn’t got involved in launching and Fidelity had no interest and we weren’t seeing any brokerage firms come into the space, I’d say, “You know what? The cake’s not baked yet. It’s too early. Maybe we’ll have to wait two or three years.”
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205But that’s not the case. They’re there. They’ve put their reputation on the line. They’re spending millions of dollars doing this. They are lobbying government officials and regulators like crazy. So this is happening. We’re all in alignment for this to take place. Do I wish it was happening faster? Sure, I wish it was happening faster.
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207Greg: I can tell you this never happens as fast as we want it to, but I can also tell you all I see is more money and more people coming into the industry consistently since we started. So that excites me.
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209Teeka: That excites me a lot, right? This goes back to when I was getting involved in Transocean Sedco back in 2002. All I had to get right was the supply part, which was public knowledge – supply was limited – and the demand part, which again was public knowledge. We were seeing surging demand coming out of China. This was not me having to make a blind bet or having to rely on hope. I was relying on published data. The same is true here for why I believe we will see a rally bigger than we’ve ever seen before.
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211The bitcoin halving is coming, so the supply of the most important coin in the world is going to be cut in half. Talk to us about why that causes the rest of the market to go up and why that causes the price of bitcoin to go up.
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213Greg: So what’s at stake here is $6 billion. That’s how much in annual income is at stake for miners right now. So when the halving comes, that’s going to get cut in half. And they’re going to want to be compensated for the services they provide, which is securing the most valuable blockchain network in the world. So what they’re going to do is when they mine new coins, they’re going to hold onto them. There’s this narrative they have to sell everything as soon as it comes in, and that’s simply not true. They’re going to hold onto the coins and wait for the value to appreciate.
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215Teeka: Before they sell them. What happens is there’s huge fixed costs associated with mining for bitcoin. But don’t cry for these miners. They’ve been mining for years, and they’ve made billions of dollars mining. The miners are smart. They know that when the halving occurs and the supply gets cut and demand keeps increasing, the price is going to go up. So instead of selling their coins, they hold their coins. We’ve seen this before back in 2016. The supply of new coins coming into the market just diminishes greatly.
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217So what I’m suggesting is that as the supply of new coins not only gets cut in half because of the halving, it will get cut again because the miners are going to hold – they’re going to hoard their coins. They’re not going to sell them right away. They’re going to wait for higher prices because they know that’s what happens.
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219Greg: This is exactly what happened in 2012 and 2016, and it’s almost like clockwork.
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221Teeka: Right. So just that by itself means we’re going to have higher bitcoin prices. And as we have higher bitcoin prices, the rest of the broad market goes higher. But that’s not enough for me to come to you and say, “Hey, I’ve got five coins that I think we’re going to make $5 million bucks on.” That’s not enough of a catalyst. You need more, and that second piece that will give us the insane valuations that will give us the potential to turn five coins into $5 million is Wall Street and the 500 million stock buyers that are going to start coming into this space.
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223So as we see the supply of bitcoin get cut in half, and then we see the actual supply of bitcoin coming into the market probably get cut in half again because the miners start hoarding coins, you are at the same time – just like back in 2002 when China oil demand went crazy – you are going to see retail demand through brokerage firms, investment banks, and family offices skyrocket.
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225Greg: And, Teeka, it’s a virtuous cycle because once prices start going up, so does interest. And then people start talking, and the next thing you know, it’s just snowballing.
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227Teeka: Yeah, and you’re in a boom. And if you haven’t been in a crypto boom before, they’re insane. They’re crazy!
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229Greg: I’ve never seen anything like it in my life.
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231Teeka: Right. We’ve had a bunch. You had 2011, ’12, ’16, and ’17. And this next boom is going to be even bigger because you’ve got so much more money coming into the market. Friends, the global stock market is over $100 trillion right now. Crypto is what, $220 billion?
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233Greg: About that, yeah.
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235Teeka: You know, you’ve got companies with more cash than that, which is insane. So it’s tiny. It’s absolutely tiny. So this is the bet that we’re making, right? The bet that we’re making is that this huge cut in supply married to this huge surge in demand is not only going to explode the price of bitcoin, but it’s going to explode the entire price of the whole crypto market, and especially the smaller coins.
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237So again, if I made any mistake back in 2002, it was exclusively buying big-cap, best-of-breed names. I should’ve bought some smaller stocks, too. Because if you look at what the smaller oil and gas stocks did, some of them went up like 5,000%, 3,000%, and 2,000%.
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239Greg: It’s very similar to the way the gold miners work. In a boom, the big companies will do well, but some of those really smaller ones is where you get those insane, you know, 10,000% gains.
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241Teeka: Correct. So if we look back at the last halving, that’s where you saw coins go up a million percent, half a million percent, 300,000%, just insane moves higher.
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243Greg: Those are verified numbers.
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245Teeka: Yes!
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247Greg: And frankly they’re not believable, but we’ve done the research.
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249Teeka: Right, we did. We went through the data. That’s what happened. The numbers are insane. My point is that when these markets take off, just like in commodities, it’s the smaller opportunities that go insane.
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251So what I want to do now is talk about how we have chosen these names, why we have chosen these names, what’s going on with these names, and why we think they’ll explode in value. And I want to give you a quick overview of my selection process.
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253Working on Wall Street for as long as I did, I understand how the institutional mindset works, especially when it comes to a new asset class. You would think the most important thing for somebody allocating capital, as an institutional allocator of capital, is how to make the most money, right? But it’s not. The most important thing for somebody that institutes capital at the institutional level is not to look foolish.
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255Greg: People just want to look good.
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257Teeka: Yeah, they want to look good, because if you look foolish, if you make a mistake that makes you look bad, you lose your job. And if you lose your job, your kids are in public school, you’re selling your yacht, and you’re not hanging out in the Hamptons over the summer. Your whole life changes.
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259Greg: Reminds me of the expression: No one got fired for hiring IBM.
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261Teeka: Right. It’s the safe move. So what we’ve done is looked for companies that are credible, that have partnered with a credible blue-chip name, and that are borrowing that third-party credibility from a partner. So as an institutional money manager looks at adding a coin to their portfolio, they say, “Well, this $50 billion corporation decided to partner with these guys, so they must’ve done the research to vet these guys that they’re legitimate players.”
262
263Greg: Absolutely, and that’s what we’re doing. In cryptocurrencies these days, you have a few coins that make up the majority of the value. And then you have the long tail of all these other crypto assets – there’s thousands of them. So, I mean, we’re literally digging through each and every one and just doing a deep dive on the background, like what problem are they solving, who’s involved in the project, who are some of the people they’re working with.
264
265And you do this over and over again, and you start to filter out who’s the real deal and who’s not. And then I’d take it a step further, because I’m always looking at what the venture capital (VC) firms are doing, and I believe when we started, there were less than 100 VCs in crypto.
266
267Teeka: Right.
268
269Greg: You know what the number is today?
270
271Teeka: No, tell us.
272
273Greg: It’s over 750.
274
275Teeka: Wow.
276
277Greg: And it continues to grow. So these are people who are putting serious money together for institutions, high-net-worth individuals. You know, they’re doing their due diligence, and so we’re kind of seeing what they’re doing, because they’re operating under the same fear that you just talked about. They don’t want to look bad.
278
279Teeka: They don’t want to look bad. So, first and foremost, we’re looking for projects that are going to pass the sniff test, that they’re borrowing third-party credibility, a major partner has trusted them enough to work with them, to let them use their name in how they’re doing their business. So that’s incredibly important.
280
281The next piece, of course, is usage, right? A cryptocurrency’s coin usage, when you peel away all the hype and all the nonsense, is the final arbiter of value. If the coin is not useful, it’s not going to create any kind of enduring value. So we want to make sure that the coin is really interwoven in the way that the product is used and sold... and that usage is growing. We have to see growing usage.
282
283So when you put those things together, you’ve got usage growing... you’ve got adoption increasing... you’ve got credible partners. And then, we’re looking for coins that are small. Some are larger, but the most explosive moves are going to come from these, $5 million–50 million coins that are going to move to multibillion-dollar valuations.
284
285Greg: Absolutely. We’ve seen in this Crypto Winter (and subsequently) that some of the best projects are kind of being ignored and thrown out, and no one’s following them. So there are a lot of opportunities out there, if you can just find that needle in the haystack.
286
287Teeka: Yes, which is a lot of work. Like I say, you’ve got to kiss a lot of frogs, right? [Laughter] All right, what I want to do now is talk about the five coins that we have in the portfolio and what you’re discovering on the research side. And then finally, we’ll talk about two coins that we have in the portfolio that we’re going to move over. But before we do that, I want to read a couple more of what’s on people’s dream list.
288
289Okay, this is from Oliver. He says, “I plan to buy a second home near my mom so that my mom can always have someone around to help her as she deals with the inevitable challenges of blindness and limited mobility.”
290
291And this one’s from Mark. “My wife will be able to quit working years earlier than expected. We will then be traveling the Caribbean, perhaps sitting on the beach watching Teeka’s yacht sail by.”
292
293Greg: You’re going to have a lot of boat buddies.
294
295Teeka: I hope so! Except, I’m more into powerboats than sailboats. Sailboats are cool, but that’s a lot of work. Okay, Terry says, “I’m going to buy a waterfront condo in Naples, Florida, so I can see the sunset every night.”
296
297Greg: Oh, that’s beautiful.
298
299Teeka: That is beautiful. Okay, so this one is from Ernesto. He says, “Hi, Teeka. With my $5 million, I look forward to two things. One, the freedom and ability to set up my family financially. Two, a Porsche 911 Turbo S. That’s my dream car.” It’s a great car, Ernesto. It’s a wonderful car. I am a car guy. Yeah, I love Porsche.
300
301Okay, and this one’s from Thomas. He says, “I will be able to build the house on our land in the mountains of North Carolina that my wife wants. Of course, this will also help me build my workshop for all my tools,” which is great. Every man needs his workshop.
302
303Greg: It’s a cool space.
304
305Teeka: Yes, I’m a big believer in that. We don’t need much, but you know, give us a workbench, one little square that’s ours... that you’re not allowed in. I’m going to get in so much trouble for that comment. I’m just kidding, guys. I’m just kidding.
306
307Okay, so I’m going to turn this over to Greg now, and we’re going to talk about the coins in the portfolio. Go ahead, Greg.
308
309Greg: All right, so our first is Crypterium (CRPT), our crypto payment app. This has a really fantastic team. It’s one of the first things I noticed about it. These people have 20–25 years of experience in the business. Steven Parker, the CEO, was the former general manager at Visa in eastern and central Europe. So that’s great payment experience to bring to a crypto payment app. This project has a number of partnerships...
310
311Teeka: That’s what drew me to the project. Everybody’s been talking about, “Oh, we’ll do payments.” What I liked about Crypterium is that it’s solving this problem of: How do I buy stuff with my crypto (because that’s difficult), and how do I buy stuff with my crypto without losing my crypto?
312
313Greg: That has been a big challenge and a few projects have tried it.So there are two problems. The first is with the credit cards and finding a reliable provider that can work in different jurisdictions. So Crypterium partnered with UnionPay. It’s like the Visa of China.
314
315Teeka: It’s the biggest payment processor in China, right?
316
317Greg: There are multiple, but it’s connected to 42 million merchants, 23 million ATMs, and available in over 175 countries. So Crypterium formed a partnership and started shipping out cards in June. It’s had a few growing problems with the cards, but it’s now back to the point where it’s shipping them out. It’s recently mentioned it’s going to ship out another 20,000.
318
319Teeka: So think about that, friends. It’s shipping out 20,000 cards and has cut a deal with one of the largest payment processors in the world. We’re a long way from the days of having to invest in a coin just off the back of a white paper, which is what we had to do in 2016, right? I mean, seriously, we were putting money into white papers.
320
321Greg: Back then it was more of a what are we going to build, and now we actually have some stuff built. So, yeah, you can judge it differently.
322
323Teeka: And what’s the market capital in Crypterium now? It’s [about]$40 million, right?
324
325Greg: It’s still relatively low. I don’t have it in front of me.
326
327Teeka: Okay, so it’s tiny. Look at the valuations you’re getting on public payment processors right now: $300 billion, right?
328
329Greg: Yeah, I think Visa’s a $300 billion company.
330
331Teeka: I mean, it’s crazy the multiples that are being put on these companies. So, as we start seeing institutional money and the securitization of crypto products come into the space, they’re going to be all over Crypterium. This is going to be a core holding across multiple institutional portfolios and multiple securitization products, okay? This is going to be a core institutional holding.
332
333Greg: What I like about this one, Teeka, is it’s licensed to be a financial institution.  It has all the regulatory work done, so it’s ready to go right now. We were talking earlier about this product it has called C•LEVER, which is your way to take your crypto and take out a loan against it. So you can literally spend your crypto without selling your crypto.
334
335Teeka: Without selling your crypto, and that’s key, right? You know, I had written this article about the million-dollar laptop last year, I think. One of my good friends in the business, who’s really well-known in crypto (he’s shy about publicity, so I can’t say who he is), was telling me a story about how he cashed in some bitcoin for $5,000 to buy a really fancy laptop. He did the math and realized that cost him a million bucks!
336
337Greg: That’s some depressing math.
338
339Teeka: Right? So what’s great about Crypterium is you can borrow against it in dollars. Yeah, you have to pay a small fee, but if your crypto is appreciating faster than your fee, then it’s great because you get to spend your crypto without losing your crypto. And that’s having the best of both worlds.
340
341Greg: You know what else is great about Crypterium is the whole crypto part is just kind of abstracted in the background. So it all runs on this CRPT token, but you actually don’t need to really know anything about it. You don’t have to worry about buying it. It just all happens in the background.
342
343Teeka: Which is key. You know, we looked at a lot of projects trying to do what Crypterium is doing, and the problem was you had to be kind of geeky to figure it out.
344
345Greg: There’s a lot of steps just to get things ready – too much for the regular person.
346
347Teeka: Too much for the regular person. So what I love about Crypterium is it’s ready for prime time. It’s made it kind of dummy-proof. Anybody can use it. It’s super easy. It has credible partners... It has a cheap valuation... And it’s something that I think, in my opinion, is going to be worth in the billions.
348
349Greg: Yeah. Once it starts onboarding lots of users and gets that volume up, the numbers can add up pretty quickly. It’s the No. 1 solution out there right now.
350
351Teeka: I think it’s going to be dramatic, and I think it’s going to attract a ton of investor interest. Right now, not many people know about it. I think we were the first people to write about [Crypterium] and really get behind it, right?
352
353Greg: Well, I mean, you almost had to get arrested.
354
355Teeka: I did! [Laughter] I did. That’s right. It was a tough project to find. Yeah, I had to go to Moscow, and then go to Belarus... and almost ended up imprisoned. But it was worth it. It was worth it, right, to find these types of ideas. Guys, you can’t find these ideas sitting at home reading reports or watching YouTube videos, right? [Laughter] I mean, I see these guys on YouTube, and yeah, they put entertaining videos together, but they never leave their mom’s basement!
356
357Greg: Yeah, I don’t know where they get some of the ideas. Some of them have nothing behind them.
358
359Teeka: Right, exactly. So you’ve got to be out there. You’ve got to be taking flights. You’ve got to be taking risks. You’ve got to be going to places that maybe are not that safe, in order to find these ideas.
360
361Greg: Yeah, that’s one of the things about crypto: it’s really a worldwide phenomenon, and we’re a little bit guilty. I mean, in the U.S., we’re U.S.-centric, so we have the U.S. crypto point of view. And it’s much different in the rest of the world. So we have to recognize that and adjust to it.
362
363Teeka: I agree. All right, so let’s go to coin number two.
364
365Greg: All right, so the second one is Chainlink (LINK). This is the decentralized oracle network. So one of the key problems with smart contracts is being able to get data from the outside world in a decentralized manner. And so, essentially, it’s called an oracle.
366
367Teeka: So, an Oracle is a term used in the crypto world to describe an unimpeachable source of information, right? So an example might be weather conditions from the NOAA – an unimpeachable source of information for weather that the whole shipping industry relies on. Something like that would be considered an oracle. So the question is how do you get data from these unimpeachable sources of information that everybody can agree on? That’s credible data. That’s real data. We’ll build a contract around that data. How do you get that data into a smart contract in a way that doesn’t rely on trust and doesn’t have to say, “Oh, I trust that Greg is going to not mess around with that data to screw with my contract”?
368
369Greg: Yeah, you don’t want one central person you have to rely on for the data.
370
371Teeka: Correct. Same with price data. So the price data that we get from the New York Stock Exchange or the Nasdaq is unimpeachable. Everybody relies on it. Trillions of dollars in products are built on that data. But how do you get that data and inject it into a smart contract in a way that can’t be manipulated? And that’s what Chainlink solves.
372
373Greg: That’s what Chainlink does. So the analogy we’ve drawn to is IBM and middleware. As computers developed, we needed all sorts of software to make it easier to use, and that’s what IBM made. And it’s all the stuff you never actually see.
374
375Teeka: It’s all plumbing. It’s not sexy.
376
377Greg: Yeah, there’s nothing sexy about it. But I don’t think there’s a project that has more partnerships than Chainlink.  Every day, it’s coming out with a new project. Like the Society for Worldwide Interbank Financial Telecommunication (SWIFT). It moves $5 trillion worth of money around the world every day.
378
379Teeka: Every day.
380
381Greg: And it’s a partner of Chainlink, and they’re working on a project to automate bond coupon payments using Chainlink oracles. So that’s pretty exciting.
382
383Teeka: So we want to talk about credibility. Again, back in 2016, we were investing in white papers by little kids that, hopefully, would turn into something. And now, they’re actually starting to turn into something. Like after the dot-com crash, you had all this crap, and then you had real companies rising up out of those ashes.
384
385Greg: Like Amazon and the pile of crypto coins out there right now. And one of the things I like about this project is a lot of times, you can tell by its advisors how good the project is. And it has Hudson Jameson, the Ethereum community manager, like the master of smart contracts; Evan Cheng, the director of engineering at Facebook; Jake Brukhman, the managing partner at CoinFund – one of the largest VC firms. So these are some legit names who are 100% behind the project.
386
387Teeka: Right. So remember, we look for usage and partnerships. It has, as Greg said, probably more partnerships than any other. And as more partners come to Chainlink, we will see usage continue to ramp up. And the other thing to remember is that we’re just at the very beginning of smart contracts entering into the real economy. I mean, we’re at the very beginning. So as that starts ramping up, as people start using more smart contracts, they’re going to start relying on Chainlink. And I will tell you right now, in my opinion, Chainlink is going to be a central player in the infrastructure for the smart contract economy. I can’t see how that doesn’t happen.
388
389Greg: Absolutely. I mean, they are the de facto leader right now. This is what everyone’s turning to. This is one of our higher-market-cap projects, and a lot of people are like, “Oh, well, why something with such a high market cap?” And it’s because the potential is just so huge. I mean, it’s just massive.
390
391Teeka: It’s massive. Think about this, right? If Chainlink does become the de facto provider of trust to smart contracts, and smart contracts become as big as we think they will be, you’re talking about billions of smart contracts... not millions... not hundreds of thousands.
392
393Greg: Billions and trillions.
394
395Teeka: Billions, potentially trillions, and every single smart contract is going to have to use Chainlink. We talk about this idea of usage. Friends, the possibilities for the valuation of Chainlink are mind-boggling.
396
397Greg: You know what’s really exciting? It has just partnered with Binance and they’re working on building the new DeFi economy (which stands for decentralized finance). So that’s really exciting. There are rumors that it’s going to be working with DocuSign – the major electronic digital signature company. So there’s a lot of potential here.
398
399Teeka: Yeah, lots of potential. Okay, what’s next?
400
401Greg: All right, next up is Tierion (TNT). So Tierion’s the project of Wayne Vaughan and Jason Bukowski. So the main product behind Tierion is called Chainpoint, and what they do is they anchor data onto the bitcoin blockchain.
402
403Teeka: So what exactly does that mean?
404
405Greg: So you’re creating an immutable record of a document or some other piece of data. And what they provide you with is what they call a blockchain proof, so now you can go back and check this proof to make sure that the data and the original document is exactly how it was presented.
406
407Teeka: So let me explain to everybody watching how I think that will show up in the real economy. So a huge problem that we have seen over the last several years come to light is major trusted institutions manipulating their paperwork, whether it’s cooking the books, whether it’s going back and altering mortgage documents, whether it is going back and changing insurance policies and changing ownership documents. We have seen fraud at such a level that is unbelievable.
408
409Greg: It’s a very persistent problem.
410
411Teeka: And with major companies like Wells Fargo, for goodness sake! What did it make, 10 million fake accounts?
412
413Greg: Yeah, millions.
414
415Teeka: Millions of fake accounts. It was busted for going back and changing mortgage applications. This is Wells Fargo! If we can’t trust Wells Fargo...
416
417Greg: Whom can you trust?
418
419Teeka: Whom can you trust?
420
421Greg: Its whole marketing message is built on trust, so....
422
423Teeka: Right! So what TNT – what this project does is it provides a very easy-to-use, very low-cost way to prove if a document has been tampered with. So it can make a document tamper-proof.
424
425Greg: Yeah, made it in such a way that you can just integrate into your business workflow. So it has partnered with Boomi.
426
427Teeka: Dell’s enterprise.
428
429Greg: Yeah, it’s a cloud-based integration management service. So basically, all the different cloud providers you work with like the Amazons and Microsofts, through a product like this, you can automate all your business processes. So businesses use it to improve productivity, and it’s the type of thing now that businesses have to use. Otherwise, they’re going to get left behind. So now, they can easily integrate Tierion’s Chainpoint product into any process that requires a document... especially in any process where being able to verify that document is of critical importance.
430
431Teeka: Yeah, I think it’s huge. It’s easy to use. And what really attracted me to this project is that it’s had the integration deal with Dell, which is massive.
432
433Greg: Yeah, I mean, that’s the big one. They do have a bunch of smaller partnerships. There’s one where it’s checking the integrity of accounting data. It’s working with another project that does neural network artificial intelligence (AI) learning and it validates that process. What really excites me with Chainpoint is the opportunity in supply chains. It’s working with a U.K. company. It’s called Evrythng, but without the “E” and the “I.” It works with retail brands that sell clothing and stuff like that. It’s very important these days that, your product from the very origination of the product, like the cotton, it’s all sustainable and that it doesn’t come from conflict areas. So it’s working with these companies to verify each step of the supply chain. So I think that could be a huge use case for Chainpoint.
434
435Teeka: Well, the reason why I put TNT in the portfolio is because what I think at some point, you will see regulation where corporations of a certain size will have to use the blockchain to make their documents tamper-resistant.
436
437Greg: Just think about. The housing crisis, Washington Mutual and the millions upon millions of documents it couldn’t verify, and  the huge mess it caused. With the blockchain, we now have this system where they can keep track of all that.
438
439Teeka: For a hundredth of a penny, tiny amounts of money. So I think you will see that happen. In terms of what is the driver as we move forward, again, I think institutional players will look at what they’re doing, will look at the credibility, will understand the regulatory environment that’s going to change that will compel massive corporations. It’s in their own best interest to make their documents tamper-proof, just for anti-fraud and to also protect themselves from the type of massive blowback that happens from these types of tampering problems.
440
441Greg: It’s an absolute no-brainer.
442
443Teeka: Yeah, it’s a no-brainer. So again, I think TNT is crazy cheap and something that you’re going to see massive value accrue to it. Okay, let’s move on.
444
445Greg: All right, the next one, Ripio Credit Network (RCN).
446
447Teeka: I really like those guys. They’re doing some amazing things.
448
449Greg: This is an amazing project, and this is actually one of the ones I found kind digging through what some of the VCs were doing. I’m just going to read some names here: Boost VC, Draper Capital, Pantera Capital, Digital Currency Group, Medici Ventures, BnkoTheFuture...
450
451Teeka: BnkTotTheFuture, that’s funny.
452
453Greg: Alchemist and BlockTower Capital. These are some of the major VC players in crypto. So, you know, when I find a project and I see all these names on the list, I’m like, well, what do they know that I don’t, you know? And that kind of starts the process. So Ripio Credit Network, is led by Sebastian Serrano. He’s a longtime bitcoiner, and he’s based down in Argentina.
454
455Teeka: Smart guy. I spent a lot of time chatting with him. He’s a very smart guy.
456
457Greg: And I think that’s one of the reasons why it’s not one of the better-known projects: because it’s focused in Latin America and it doesn’t get into the press the way it does here. But it’s been a leader in Latin America. It was called BitPagos, and it was this wallet, where you could buy and sell bitcoin and store it. And eventually, itcreated Ripio Credit Network, rebranded, and has added a whole bunch of other features, with the most important one being microloans. In Latin America, the banking services are not quite as developed as.
458
459Teeka: That’s the biggest understatement of the year, I think. [Laughter]
460
461Greg: Around 60% of Latin America or more is unbanked, so it’s a big problem down there. So with Ripio, it connects lenders from all over the world with borrowers in Latin America for these little microloans. I think the average loan right now is maybe 150 bucks. But people are using it. It has over 300,000 users now, and so it’s just a great product.
462
463Teeka: So again, a real product, it’s being used, it integrates with the banking system down there, 300,000 users. And so, for me, there are two things here. I think that model will scale in different markets.
464
465Greg: So one of the areas I’m really excited about is Africa actually, because I got to talk to a gentleman – his name is Akin Sawyerr. He’s the team lead in Africa for a project called Dered. I got to see him at the World Crypt Conference [a few weeks ago], and we sat down and chatted. And I just started to ask him about Africa, and he’s talking about how mortgage loans there are sometimes as high as 25%. It has another place where people have trouble getting banking services, yet it’s a very young population. It’s actually tech-savvy. So this is a huge opportunity I believe for Ripio, to go to Africa eventually.
466
467Teeka: Yeah. So banking the unbanked is a huge opportunity. From the institutional capital allocations side, this is a story that really will get them excited.
468
469Greg: Absolutely. And it has that partnership with Mercado Libre.
470
471Teeka: It’s like the eBay of Latin America, right?
472
473Greg: Yeah. Almost everybody uses Mercado Libre in some way. So the fact that it’s partnered with Ripio is huge.
474
475Teeka: It’s a big deal. So again, remember our thesis, right? So what we’re looking for is not only coins that are going to ramp up in big usage, but coins that are going to attract institutional capital, that have a narrative and a team that institutions will feel comfortable putting enormous money behind, right?
476
477Greg: Yeah. I mean, they’ve got to have the team in place. They’ve got to have the product. They have to have a good-sized opportunity. And then I would imagine they’d like to see some other folks like them already in, and you have all that I think they’ll be ready to open up their wallet.
478
479Teeka: Correct. And again, as that institutional money comes in, not only does it explode the value, but then I think that next piece is when you see this rollout of exchange-traded funds, exchange-traded notes, these ways of grouping cryptocurrencies together and then securitizing it. Projects like Ripio are going to be part of those products.
480
481Greg: And it’s already expanding its product base, because it has the microloans right now. But soon, you’re going to be able to do collateral-based loans and you’re going to be able to do installment-based loans. It’s also talking about doing micro-pools. That’s people being able to pool money together to lend and make money. So the innovation I think is just going to be amazing.
482
483Teeka: Yeah, I’m very excited.
484
485Greg: All right, so No. 5 is called 0x (ZRX).
486
487Teeka: This is another one we’ve got some abuse on because people said it’s too big, right?
488
489Greg: It’s a little bit on the big side. I mean, listen, it’s not like $10 million, but it’s hard finding, $10 million projects, and a lot of the $10 million projects...
490
491Teeka: ... Are $10 million projects for a reason.
492
493Greg: Right. Yeah. Well, I think maybe it’s worth less than $1 million.
494
495Teeka: Yeah, exactly.
496
497Greg: But again, this is a very high-quality project. One of the things we’ve talked about a lot is decentralized exchanges versus centralized exchanges. We know that with the centralized exchanges – the Binances of the world – there are a lot of hacks. People have a tendency to leave their funds on the exchange. It creates this honeypot for hackers...they go after it. So with 0x, that would decentralize all the trading and essentially, you wouldn’t be holding these funds on exchanges anymore... and the hacking problem would go away.
498
499Teeka: Go away.
500
501Greg: So yeah, that’s why we really like the project. Again, this is another one with kind of a who’s who of crypto people on it. Fred Ehrsam is advisor. He’s a cofounder of Coinbase. Joey Krug, he cofounded Augur. He’s with Pantera Capital now. Linda Xie of Scalar Capital. And the one that really got me excited was David Sacks of Craft Ventures. So he’s also the guy behind Harbor, and Harbor is the project that’s looking to securitize real estate on the blockchain.
502
503And they’ve already gotten SEC approval to do that and have a secondary exchange, a lot of the work is done now. And they just partnered with 0x, so 0x is going to be the backbone of their exchange. So, you know, real estate is a $200 trillion opportunity, so it’s just absolutely huge. As it is, they’re already starting to act as the aggregator for other decentralized exchanges. They have version three of the network coming out November 25, and basically, they’ve created a liquidity API. So it’s just like a piece of code that other people can use to basically plug in. And so other decentralized exchanges like Kyber, Uniswap, Bancor, they’re all integrating into 0x. So I think they also have the potential to be the liquidity source of decentralized exchanges, and as you know that’s been one of the major problems.
504
505Teeka: Major problems. So what Greg means when he says liquidity source is that the reason why decentralized exchanges haven’t been as successful as centralized exchanges is they don’t have enough volume, right? And so in order to have a dynamic marketplace you need a lot of volume. So companies like Binance and Coinbase that are centralized, they can do these trades very quickly and they have enormous volumes. You have very liquid markets there. The spreads are small. You want to do a trade, you can do a trade very, very quickly. Decentralized, it’s a lot harder, so what 0x is doing is creating a way to bring liquidity to these different markets in a decentralized way. I mean, it’s a huge problem. Whoever can solve that problem is going to become just the player in the space.
506
507Greg: It’s going to be kind of like Chainlink where they just become an integral protocol on everything that’s crypto, yeah.
508
509Teeka: Right. Think about that, friends, an integral protocol to everything that is crypto. Okay? [Laughter] That’s the opportunity in 0x. So please, stop sending me e-mails saying 0x is too big.
510
511Greg: Yeah, I think institutions can get behind that.
512
513Teeka: They can really get behind it.
514
515Greg: Another thing I’m excited about is that they’re going to introduce staking to the protocol.
516
517Teeka: That is exciting. Can you explain what that means?
518
519Greg: Yeah, so staking – what we’ve seen in a lot of crypto projects is they implement some form of staking. Basically the way it works is you hold a certain amount of your coins, whether it’s in a wallet or with a validator, and you know, they use those coins – it gives them like a proportional weight of their influence in the network. And then they can use that for things like governance and whatnot. But there’s also an income component to it because, you know, as you stake your coins and participate in the network, you get rewarded for it. So I think Wall Street’s going to see that opportunity and want to get involved.
520
521Teeka: Yeah, I do, too. I do, too. We’ve covered the five.
522
523Greg: We’ve covered the five.
524
525Teeka: Now let’s talk about the two coins that we’re moving to this portfolio and what it is that we love about them and why we think they deserve to be in this Five Coins to $5 Million portfolio.
526
527Greg: All right, let’s start with Loki (LOKI). Loki is a secure messaging app, the world’s most secure messaging app. And so you’ve been following what’s been going on in Hong Kong with all the protests and stuff, and so one of the challenges for the protestors is being able to communicate.
528
529Teeka: Because Telegram got hacked.
530
531Greg: Exactly. Telegram, which is supposed to be this encrypted private network that can’t be shut down, well, the Chinese government – you know, they’re not completely shutting it down, but they’re finding ways to just keep people out of it.
532
533Teeka: And to broach the network.
534
535Greg: Right. And we’ve also found out that it’s not as decentralized as it claims, because I guess it backs up a lot of data on the cloud that’s unencrypted. So this has kind of highlighted the problems with being able to communicate in an open way without being censored by the government. I think China’s demonstrated that governments at any time if they have the power can stop the information flow.
536
537Teeka: Sure.
538
539Greg: So Loki is looking to create the world’s most secure messaging app in a decentralized manner where it can’t be shut down, where your messages are always encrypted and private, where you can surf the web in an encrypted and private way and basically avoid the potential censoring and sanctions that you might see from governments.
540
541Teeka: Now, friends, I will be the first to tell you that Loki’s a bit more speculative than these other plays in the sense that they’re not as far along as some of our other 5 Coins plays. But the opportunity to create a truly secure global messaging network – when they scale you get something like 300 million users. I mean, they just scale really fast.
542
543Greg: Yeah. I mean, it’s a huge opportunity. I think Signal, which is a similar type of app but just doesn’t quite have all the privacy features that Loki does, has something like 30 million users. So I mean, their goal right now: they release Lokinet at the end of the year, so that’s the encrypted web browsing, and once they do that, they’re starting on a marketing campaign. They’re going to be specifically focusing on Tor users, Signal users, people that are already into privacy. So you get this first cohort of people who really care about the privacy angle and then build from there.
544
545Teeka: It reminds me a bit of Monero when we first started buying Monero. Monero is a privacy coin, but when we first started buying it, I mean, it was just the hardcore privacy nerds.
546
547Greg: Actually Loki is a fork of Monero.
548
549Teeka: That’s right, which I found was very interesting. Yeah. So I remember how when I started buying Monero, the criticism I got was, oh, who cares about this? Nobody cares about privacy, and it’s never going to scale.
550
551Greg: They say you only care if you did something wrong.
552
553Teeka: Right, but look what happened. I mean, Monero went nuts in the boom. We made a killing on Monero.
554
555Greg: Oh, absolutely.
556
557Teeka: So I think the same thing here is that I love this because it was so small when we recommended it and it’s still very small.
558
559Greg: It’s still very small.
560
561Teeka: And I just think the upside is so explosive. If they can just even get half where they want to go, this thing could be worth just a ton of money on the next boom.
562
563Greg: Yeah, and you know, I love the model and the way they’re set up. You know, they reach consensus through a hybrid proof-of-work, proof-of-stake system using a master node system. But they’re also one of those coins where they make sure that they have funding that goes to the Loki Foundation and to the service nodes which basically run the network, so it has that self-sustaining model which we like to see.
564
565Teeka: Which is really important.
566
567Greg: Yeah, absolutely.
568
569Teeka: Okay, so talk to us about the second one.
570
571Greg: All right, so the second one is Solve.Care (SOLVE).
572
573Teeka: Right, which we just wrote about.
574
575Greg: Yeah, this was our last issue. I think, this is just a massive opportunity.
576
577Teeka: This coin, guys – I look at the valuation on this, I look at the credibility of it, and I look at what they’ve already done. And it just blows my mind that this thing isn’t trading in the hundreds of millions of dollars already.
578
579Greg: I mean, you know, we identified a huge opportunity and we just focused on the U.S., and this is something that can be used around the world.
580
581Teeka: Right. So talk to us about SOLVE.
582
583Greg: So SOLVE is tackling the healthcare industry. So right now, roughly 30% of all the costs in healthcare is just from administration. And you know, you have all these different stakeholders, whether it be doctors, insurance companies, governments, employers, etc. You know, they all have their information. It’s all siloed. And then compounding that is the fraud problem, because you have a big fraud problem in medicine, estimated to be somewhere between $60 billion and $200 billion a year. So what SOLVE does is they have a blockchain and then they have their products that all connect to it and basically create this decentralized network for healthcare which connects all these different stakeholders.
584
585Teeka: In a completely secure way. Very low cost.
586
587Greg: And without giving up any of your data.
588
589Teeka: So, friends, if you’re involved in the medical business, you realize that the technology there – they’ve spent so much on technology, but it’s just woefully inadequate, right? So if you’re dealing with five different doctors and five different specialists, you’re shuttling paperwork among all these different doctors. You’re having to re-tell your medical history again and again and again, and people make mistakes. So there’s not an easy way to move this data around, and then you’ve got privacy laws that are draconian, that if they screw up, they face millions of dollars in fines.
590
591So what I love about SOLVE is that they have created this way to exchange data in a very low-cost, highly-secure way.
592
593Greg: Yeah, they have what’s called the Care Wallet, you know, and that’s basically your starting point and where you put in all your information and everything runs through there. So it’s very modular, so as things get added to their system, it can just be added into the Solve.Care Wallet.
594
595Teeka: And it’s being used right now by major care providers. Insurance companies love it. I think the adoption of this project is going to be huge. I think this is going to be everywhere in the United States at least.
596
597Greg: It’s going to be everywhere in the United States, and actually they’re making inroads in Asia now. They just moved their headquarters to Singapore. They just opened up their first office in Seoul, Korea. They’re working on a way to treat diabetes in Korea that implements all their products. So yeah, it’s absolutely an exciting time.
598
599Teeka: Yeah. It’s exciting, and again from an institutional standpoint, I think it’s a no-brainer to add to an institutional portfolio. So yes, yes – you want to add to that? Yes.
600
601Greg: Well, you know, I wanted to mention they kind of have a deep bench, too. You know, their team is super-credible. Everyone has, like, 25 to 40 years of experience. They have a former congressman as an advisor, a bunch of people in insurance and in government. So they have all the key people to – you know, because healthcare, it’s a –
602
603Teeka: Oh, it’s very tricky.
604
605Greg: It’s very tricky.
606
607Teeka: Yeah, it’s who you know, yeah. Yeah, they have a very deep bench. They have an amazing CEO. He and I spent a lot of time together on the phone. He was a tough guy to get on the phone, but we finally got it done and we really hit it off. And you know, yeah, you’re betting on the business, but you’re also betting on the people, too, and I think that “people” is a big piece of this and gosh, they’ve got an incredible team.
608
609Greg: Yeah, and you know, another thing I like about them – I don’t know if you saw the news recently about Apple Watches and how they can pretty accurately detect heart problems and stuff like that. So what SOLVE is doing is with their Care Wallet, they’re actually connecting to different devices, so that when you do these medical-related tests the information can go right to your wallet, which then gets sent right to your physician, so I think that’s a huge opportunity.
610
611Teeka: Yeah, I do, too. I do, too. So that’s why we added Loki and we added SOLVE. We think you’re going to see a gigantic move higher in those again as we see this surge in demand coming to the market.
612
613So I know we covered a lot of ground tonight, but this is really important. I mean, this Five Coins to $5 Million is something that I think just can be a dramatic changer of people’s lives.
614
615Greg: Absolutely.
616
617Teeka: And I’m just super excited about it. And so the key things that I want to leave everybody here with tonight is please don’t make the same mistake some of my clients made back in the early 2000s, when they got mad at me when oil went up but the stocks we had didn’t go up. So please don’t get mad at me if we have a situation where, let’s say, bitcoin is outperforming our five coins. Now that’s not the case right now, you know? I said earlier in the year when people were asking me, “Hey, Teeka, when are the altcoins going to catch up?” and I said, “Well, October. Generally speaking, there’s a bit of a time lag.” And since October, since I came out with our Five Coin portfolio, our Five Coin portfolio is up how much, a hundred and –
618
619Greg: On average 114%.
620
621Teeka: Yeah, 114%. Over the same period of time bitcoin’s down 13%. So this is happening now, friends. The altcoins are outperforming bitcoin just as I said that they would. I said that back in April.
622
623Greg: Back in April, once bitcoin broke its downtrend, yeah, you identified that.
624
625Teeka: We’re in that next lag. I said bitcoin’s going to outperform the altcoins, people are going to get mad that the altcoins aren’t running, and then come October, the altcoins are going to start running.
626
627Greg: And it is exactly what we’re seeing.
628
629Teeka: And that’s exactly what we’re seeing right now. So the next phase is going to be, we’re going to have the halving, and then once the halving takes place, we’re going to start seeing that next boom in the price. And then hopefully, we get the SEC on track. We can get our first series of securitized products, which are going to be around bitcoin first, okay? It’s going to be around bitcoin. It’s going to be around Ethereum first. And then once that’s proven, then you will see that next step of those second set of coins that will go into some type of securitized product where you’ll have maybe the top 20 coins, 50 coins – something like that will go into some kind of a product. And then you’ll have more of the niche-oriented products that will start scooping up some of these coins.
630
631Greg: Absolutely.
632
633Teeka: And so this is the game plan. This is the playbook. I’m hoping that by putting this event together and talking about this and doing a deep dive, you can get a deeper read into why I make the decisions that I do, why I’m doing things the way I am, why I am so convinced that I’m right, and that if we don’t see things move right away that you say, “Okay, yeah, this is like back in 2002,” right?
634
635 So sometimes, maybe bitcoin will move a little ahead first, and then the altcoins will catch up. But the thing to remember is the two drivers of massive price moves, and they are a cut in supply, which we have through the halving and through the facts that the miners are going to hoard coins, and a rapid increase in demand, which is what we’re already going to see through Wall Street, through private equity money, through venture capital money, and through family office money, and through ultimately the securitization of bitcoin products.
636
637So if you put those two forces together, it lays the groundwork for a massive move higher, and then that next piece is picking these small coins that institutions are going to want to have a piece of. And we’ve already laid out why we think these coins are going to participate, why we think usage is going to explode, and most importantly, why they’re going to attract massive amounts of capital, right?
638
639Greg: Absolutely.
640
641Teeka: I think we covered it.
642
643Greg: I think we covered it all.
644
645Teeka: Okay, so in closing, a couple of things here I want to read for some more folks, for their wish list.
646
647“Hi, Teeka. I don’t have much of a toy list, but I do have quite a bucket list. That list includes retirement, skiing the Rockies with my daughter, more hunting and fishing – you can never get enough hunting and fishing in – and hiking.” And that’s from Spencer L.
648
649Chad says, “We plan to turn around and pay off our real estate debt.”
650
651Tony says, “The first thing I will do is upgrade to Lifetime with all your services. Then I will enjoy some time in Costa Rica and helping at a local school, as well as my own additional education.”
652
653George says, “We’re going to pay off our present home as well as all our debts, also tithe money to charities. We will give our children and lovely grandchildren some of that profit as well. I would use some of my profits for buying some rental homes for passive income and traveling to Europe.”
654
655Chad says, “I will focus on simplifying my life to bare minimum, paying off children’s college school grad education, traveling the world. I want my profits to keep me healthy, free up my time, and help me become the best person I can be to God, myself, my family, and friends.”
656
657Greg: That’s fantastic.
658
659Teeka: It is fantastic. Jeremy says, “I want to secure a very comfortable retirement, replacing my vehicle with my favorite Mercedes, renovating my home, taking an extended holiday,” and then he says, “Teeka, you asked for yachts. I’m partial to the Silent 64 catamaran.” I don’t want a catamaran. I like mono-hulls.
660
661Greg: Too much work?
662
663Teeka: No, it was – not to go off on a tangent here, but I don’t like the way catamarans cavitate on the ocean. They just have this side-to-side movement that I don’t like.
664
665Anders says, “I’m going to pay back all my loans, €900,000. I will help my children and buy me a Porsche Panamera and travel a lot with my lovely wife.”
666
667These are wonderful, wonderful wish lists and dreams. If I didn’t get to yours, I’m sorry. We had so many to get to. Hopefully I got to a lot of them.
668
669Friends, I want to thank you for tuning in. I want to thank you for your continued trust and confidence in me and my team. I want you to know that we take it seriously. We work so hard. I have a whole team behind me. I mean, Greg’s just one part of that team. And we are absolutely committed to giving our all in service to finding you the very best ideas that we can. Everyone that works on my team is completely bought into this idea in helping move the needle on your financial life, helping you make good, rational decisions that can put you in a position to lead the life that you want to lead. I mean, everyone – it’s just part of our mission here. It’s just what we do. It’s what gets us up in the morning.
670
671I will say one last thing. You know, these ideas are incredibly exciting, and you might be tempted to go all in on one or all in on another or maybe allocate capital at a level that’s much higher than you should. I implore you, please be rational, okay? Be rational.
672
673Cryptocurrencies are wildly volatile, wildly volatile. Never risk more in a crypto than you’re prepared to lose. Never, ever put your current lifestyle at risk for the promise of a future lifestyle. Don’t do that. I did that in ’98 and I ended up almost killing myself in ’98, okay? I never want anyone ever to be in that position, ever. Please, I beg you.
674
675We are so early, and the upside is so massive that the opportunity to turn a small inconsequential amount of money into a fortune still exists. Now, that won’t always exist, but it exists now, so remember what I say. For a smaller player, $200–400 an idea. If you’re a bigger player, $500–1,000 an idea, okay? You don’t really need to go any bigger than that.
676
677So I know some of you will regardless of what I say, but what I will tell you is be rational. Be rational. Don’t put your current lifestyle at risk for a future opportunity. It’s not needed. You don’t need to do that, right? You don’t need to do that. When this is a multitrillion-dollar market cap, yeah, it’ll be different. You’ll have to risk hundreds of thousands in order to make millions. Right now you don’t.
678
679So please, I beg you, please, please listen to me. I take it very seriously. Your financial future, your financial health is really important to me. You know, I want you to win and I want to help put you in a position to win without putting what you currently have at risk.
680
681Okay, so I think I’ve said enough about that.
682
683Greg: You got it covered.
684
685Teeka: Greg, thanks so much.
686
687Greg: Teeka, thank you.
688
689Teeka: It was really wonderful having you here.
690
691Greg: This was a lot of fun.
692
693Teeka: I think you did an amazing job.
694
695Greg: Oh, thank you.
696
697Teeka: And hopefully we can get you in front of the camera more often.
698
699Greg: Yeah, let’s do it again.
700
701Teeka: Yeah, we’d love it. Friends, I want to thank you for joining us tonight. I know this was pretty long and hopefully we added a lot of value to you. Again, my next Palm Beach Confidential issue will be covering everything that we covered tonight and probably some extra stuff, too, that I may have not gotten to tonight. So again, I want to thank you for joining me, and I want you to always remember: Let the Game Come to You!