Well I don't think he bent the knee I Think he'd already had his knees taken Out by CZ earlier in the in the week With two tweets where he essentially Questioned uh FTX and their association With Almeida and I think that this Obviously you know created a bank run And I think that you know people thought That Voyager was very safe people Thought that FTX was very safe until Three or four days ago and so they're Going to start I think doing some Analysis about where am I keeping my Coins is it safe and maybe it wasn't Something that two weeks ago or even six Months ago you thought was important but I think after today people are going to Realize that it's very important that You know where your coins are and who's Looking after them All of right welcome back everybody to Altcoin daily my name is Austin joined With returning guest Chief business Officer of INX a digital asset fully Registered with the SEC uh exchange Douglas Borthwick thank you for joining Me hey thanks for having me again it's Great to be here what an exciting day Huh oh my God man these last 48 hours Culminating to Sam bankman freed bending The knee to CZ in a sense for the folks At home and we haven't even released our Daily video on this yet but uh it Appears that FTX was over leveraged in
Some sense and CZ a finance or binance Now has a letter of intent to buy The Exchange crazy times what's your Summation on that Well I don't think he bent the knee I Think he'd already had his knees taken Out by CZ earlier in the in the week With two tweets where he essentially Questioned uh FTX and their association With Almeida and I think that this Obviously you know created a bank run And it literally was a bank run it looks Like you know there had been billions That have been taken out very quickly And they didn't have the resources to to Follow them people weren't coming back Into deposit and uh yeah you result in This accident where you have a Titan That absolutely Falls and uh binance is Left uh you know holding uh being being The champion in this so really Astounding but this isn't the first time We've seen something like this I think It's the first time we've seen a war Like this happen in real time over a Couple of days and then crypto moves Very very quickly but you know we also Saw this with voyager we saw it with Celsius where you get this uncertainty It drives people into a certain habit or Are buying and suddenly you know you get This Feeding Frenzy and you see a Collapse of exchanges and you know one Of the things that that I find
Interesting is this is the traditional Model for crypto exchanges most crypto Exchanges they sit there and they'll Take in people's money and maybe they'll Reinvest that money they re-hypothecase It Um it's in a big pool and and people Don't understand they're signing over Their money and maybe that money is then Put into longer term instruments so they Can earn yields because a lot of these Exchanges uh you know they give people a Yield for for staking or for you know Holding your coins And then when there is a run there's Nothing there behind it in order to to Back it up and really I mean this is Something that your inex I guess you Know we looked at this a long time ago And maybe people think it's boring I Know I know that when I was going around Looking for investors in our company a Long time ago they always said why can't You be my like Voyager or FTX and this Is really what we were asked because you Know you're not offering staking Services you're not reinvesting Customers funds and why aren't you doing That and the reality is because we Thought it was wrong We didn't think it was right and we want To be I guess fully regulated well not I Guess I mean we are we're fully Regulated you know we've got a broker
Dealer registered with the SEC in finra We've got a transfer agent we've got an ATS we've got Mt licenses across the United States and and still there's Things that we don't do you know we Don't put a coin on our exchange And allow people to trade it I mean we Don't take you know hundreds of Thousands of dollars from someone and Say okay we'll list your token now we'll Hype it up we don't do that we're in the Business of people coming to us feeling Comfortable feeling secure giving us Their crypto and we hold it for them we Don't hold it for them bitco does and we Don't sit there and re-hypothecate it we Don't invest on the back of it rather It's just being held for them just as They're expecting And then if someone does on our on our Security Site the actual dollars that They give us are held in a bank account That's held in their name And if they have Securities they they Custody the Securities themselves and Their own wallets So we look at things in a very very Different manner I think than others Than others do when it comes to Withdrawals of cryptocurrency if you put Crypto on our platform you can take it Out at any time in any amount you know There is no and why it's because it's Backed by that crypto you gave us it's
Sitting there in the account Um and so we've got a very very Different model from others now it's Less exciting perhaps but everyone I've Found always says that they want to be Bankless until they get punched in the Face and there's been a lot of faces Getting punched lately and I think that You know people are probably looking for Safety in this storm or for a regulated Institution they love crypto I love Crypto they love Bitcoin they love Ethereum there's a lot of different Coins out there and they love digital Securities but they're kind of sick of Getting rug pulled and I think that you Know what we're offering is something That yes we don't have the budget of Some of these other companies that are Out there to go out there and sponsor a Stadium or this or that or the next Thing but that doesn't mean we're not Offering less safety you know what we're Offering I I believe is a lot more Safety So essentially what these big crypto Exchanges did like FTX they just ran too Far too fast they didn't Um you know a lot like maybe maybe this Is a bad relation maybe it's good a lot Like Terra Luna Luna classic a lot of These crypto companies in general are Just running too far too fast and inex Inex which you've been on our Channel
Since last year talking about the Benefits You're fully regulated with the SEC you Have so much enforcement or people Oversight looking at you you're doing The safest play and while that was Boring maybe last year now more and more People are seeing damn we need some Safer options out there I think so it depends on who you are Right I think that the investors are Probably looking for safety and a lot of People self-custody Um and and you know that's probably like The Bitcoin Maxi Maxim right is you got A self-custody you got to hold it in Your own wallet and I agree with that But when it comes down to the trading as Well you don't expect to sell dollars by Bitcoin have that Bitcoin then invested By the company that you you've deposited It with and Maybe not maybe you'll never See that Bitcoin again and it's a huge Problem it's a huge problem and so I Think that you know people are going to Go back to basics and say well you know How do I how does my grandfather hold His stock or how is this held or how is That they go to large financial Institutions that are regulated and Certainly regulation doesn't go under The maxim of crypto it's about Freedom Right but at the same time you can still Have freedom but you can still be
Regulated and I think that that's the Message that we'd like to give people It appears that at this current moment Cz1 he did things right and now binance Still one of the largest exchanges in Existence Well please comment on that well today Let's say JP Morgan wants to buy Chase Manhattan Bank And the day before that JP Morgan says You know what we already own a big chunk Of Chase Manhattan we're going to start Selling the equity and the equity gets Absolutely pummeled and people say well The equities getting pummeled I'm taking My money out And then Chase runs out of money And JP Morgan walks then says you know What we can have our services Chase and JP Morgan no it's different companies Still I think Um but but the net of it has been a Competitor Pushes down the price of another in Order to get it at a lower price Um you know it's an interesting tactic And you wouldn't find that in a Regulated equities world but again we're Not dealing with the regulated world are We here we're dealing with with you know These exchange tokens that you know what Are they backed by like what was the FTX Token backed by and the answer there is Well I don't know whereas you know inex
We have an exchange token and it's Backed by a percentage of our profits 40 Of our profits you know going forward And it's also backed by a cash fund and So if it goes down to a certain level or If we were to go under the cash fund Actually pays back the token holders and So we did it in a very different way Also I can tell you every single holder Of my token who their names are I've got The kyc AML and all of them and yet most Of these exchange tokens that are Floating around they have no idea who Owns them right because there's no There's no white list there's no um Walled Garden and so you know it ends up That you you're left with something like The Celsius token or maybe the Voyager Token or maybe even the FTX token and You're kind of wondering what's the Value of this now With the inex token there is no question About what the value is and that's a big Difference between a regulated exchange Or exchange token and uh you know every Other exchange token that exists I saw that inex the Twitter account and I'll put the link to the specific tweet Down below put out a very relevant tweet Regarding the situation with FTX Finance Did we hit everything on that or just Final thoughts based on the current Situation I mean I think I think that That Twitter thread is very correct but
You know there's more but wait there's More you know we've been we've been Thinking about bankruptcy especially When it comes down to this Arena crypto Arena because obviously you saw with Celsius and you saw it with voyager and Now you know who knows what's that What's going to happen with FTX it's a Non-binding agreement remember this may Just be a pause Um and within all of this we thought the Creditors sometimes they're left just Holding the bank they're told you're Getting a haircut and you that you're Going to be happy with that and our Answer is well why give them a you can Give them a haircut but give them a Security token as well that's linked to The new company So that then at least the creditors can Get something back give them some Equity Give them a percentage of the profits in The new Co because then they're going to Stick around and they're still going to Use that product maybe not celsius's Product but the Voyager product everyone Loved everyone loved it and I'm sure That if a new company came out of there Then I'm sure that people would want to Own a little piece of it and I think That you know inex we have that solution We've taken that pathway before with Their own token and we're willing to Take teach others and to you know be
Involved and and show people that you Can use the security token for Bankruptcy you know madoff's victims are Still getting paid off today I don't know was it 10 years ago 15 Years ago I mean we were all wearing Shorts back when that happened but at The same time they're still getting paid Back if you had a security token You know after after that bankruptcy Then you'd be getting payments into your Wallets of usdc or whatever and you'd be Pretty happy because you know you'd be Getting your money back but if you've Taken that haircut as it was initially Yeah but absolutely nothing but since Then people have been made a lot more Whole and so with bankruptcies over time There is a solution and there's a an Efficient solution through security Tokens to make people whole and I want Really creditor committees all around The world to listen to this and hear it And demand the security token be part of Any sort of settlement Wait and reiterate that for me because I Still want to make sure I understand if You hold a security token it's easier to Make users whole how come well you know If you think about I I think that you Know then let's say Voyager you know There's one company that was in there Bidding I don't know if that company Exists anymore looks like they won it
And I think it was a 70 uh they were Paying back people 70 you're taking a 30 Haircut Well instead of a haircut if instead you Got a security token linked to the new Code Um that would be fantastic because then They've got that plus over time they may Get back they're rather thirty percent They may be made whole and I think that That's important here what I'm thinking About right now is that poor person that Got stuck and and was was absolutely run Over they were picking up pennies before A steamroller the steamroller hits and Like where am I now and you're being Sold by the bankruptcy court you know What you're getting a haircut tough luck You should have read the small print and What I'm saying is that a lot of people Don't read the small print and yet if The new company or any new company comes Out of existence from that and you want To keep all of these people that were Using that product well you've got to Keep them involved if you give them a Security token linked to maybe the Equity or to Future profits they'll stay Involved because they'll want to Continue using that product they'll want To continue to see a success why because Then they get paid back I want to talk about INX into 2023 Specifically but just first final
Thoughts on this whole sandbank and Freed FTX CZ situation Well the final thoughts is a non-binding Loi is not very useful You know binding llis are always much More useful than non-binding so I think That this is a pause right now and let's All see what happens in the markets Because I think maybe CZ was worried About an absolute collapse in these Things you know Voyager had in Celsius Both had big moves in the market and now You see FTX which I think a lot of People four or five days ago thought was One of the the darling Childs Um and now they're in trouble and so Let's just pause reflect figure out What's going on buy some more time an Unbinding Loi can do that but I think You know lawyers will probably start Seeing through that very very quickly Now what about us for 2023 yeah you know We've just started primary raises and These primary raises are investment Opportunities for people with security Tokens these are guys that are raising Capital the same way that we did we've Got a Chinese a Chinese trucking company Called truckpal I've got another one Advent entertainment now you know Stan Lee you ever heard of him he's behind Marvel Universe absolutely he had Another another IP called the Legion of Five
And the Legion of five has been Undeveloped and it's owned by Advent Entertainment 50 of this and they're Going to start developing it and it's an Opportunity for guys to get involved With this new um with it with this new IP which I think you know we'll see how It goes but uh you know very informed Staff very informed guys working on some Academy Award winners very exciting you Know people should go take a look And that security token would get that The individual's access ownership in That IP what what they're doing Well first they get I think that it's uh You put in a dollar and you get uh after You've got a dollar twenty back on it on Each token then you get 10 or 20 of the Royalties going forward on this now Royalties don't just come from movies They come from Toys clothing I don't Know if you've ever bought a Star Wars Thing but I'm still buying Star Wars Stuff for my kids and they're in their 20s so you know I mean it's never ending Once you once you have an IP and you can Develop it uh who knows where it could Go But but that's just to start right Obviously a lot more issuances we're Going to be raising capital for and We've got a lot more exciting things Happening Um you know the best way to learn about
It just follow us on Twitter INX Underscore group nope I'll put a link Down below as well as your personal Twitter I follow you Um what are is the biggest challenge for Any Exchange in 2023 just user Acquisition like how do you uh fight the Bear markets and try try to try to grow I don't know if it's user acquisition I Think there's a lot of users that are Wondering where should I be right now Um I think I think the biggest challenge Is the cost of user acquisition in terms Of not everyone has the budget that CZ Has not everyone has the budget that FTX Used to have and not everyone has a Bunch of the coinbase has and so we all Have to be able to go out there and tell Everyone what the differences are I'll Tell you how I differ from coinbase I Offer digital securities And that's different and that's exciting And I think there's going to be a lot of Surprises coming down the line when it Comes down to that that field Will I next ever go public We already are public Our security tokens the first ever Public security token so it trades on Our ATS is full perspectives behind it And we're also public on the Neo in Canada under inxd and we're also on the OTC under inxdf so we're public we're Transparent we're very very open with
All of our numbers Nope well I'm glad you had I had you on Just for the full synopsis Um Douglas in our final five minutes Um what's what final thoughts do you Have for just the average crypto user Out there I think the average crypto users out There right now is probably sitting There thinking what am I going to do You know if the Darlings are in trouble And I think that you know people thought That Voyager was very safe people Thought that FTX was very safe until Three or four days ago and so they're Going to start I think doing some Analysis about where am I keeping my Coins is it safe is this something That's regulated is it transparent do I Actually know what they do with my coins When I put them on the exchange and I Think once they've done that analysis Then they'll probably start thinking About well maybe I should talk to the Exchanges that I've never heard of Before like INX because maybe they're Doing something differently and maybe it Wasn't something that two weeks ago or Even six months ago you thought was Important but I think after today people Are going to realize that it's very Important that you know where your coins Are and who's looking after them Links for all your stuff down below and
I do want to ask you before I forget What's your take on macro right now you Used to work in money and trading money Correct So dxy Gone pie Dxy the dollar Index is always going to Be a headwind against crypto right Because when the dollar is strong Everything else is weaker now you saw Some topping out in the dollar lately I Mean when the Japanese came in and Intervened in dollar Yen I doubt that That's going to be the last time the Intervene in dollar Yen but when the Japanese are intervening it means They're also talking to other central Banks Europe doesn't like having a low Euro the UK doesn't like having a very Weak currency either especially as You're going into these cold Winters and In cold winter you got to buy energy and You know where Energy prices are through The roof and so having a weak currency And very high energy is a disaster Because it means you're going to have Very high inflation how do you fix that Well you know I think Biden said that a Strong dollar isn't a U.S problem it's a Worldwide problem And I think he's correct there and that It is a worldwide problem and at some Point I think the U.S is going to do Something to have the US dollar we can The FED just raised 75 basis points Obviously a pause would make sense or
Even them signaling to do 50 rather than 75 the next time is going to see the Dollar start so we can win the dollar Starts so we can and I expect crypto to Go much higher would you think that the Uh the this winter and macro and crypto Will get colder or is it just a waiting Game with the Fed Well again you know the FED is the Waiting game it's a very strong headwind And it's not just the FED right other Current countries have been raising Interest rates too so it used to be You'd go into usdc and you pick up eight Percent and that was a great because Interest rates were zero at your bank And now the interest rates your bank are Four and a half percent you're wondering Well is it a good risk and so at some Point I think people are looking for Lower interest rates should be more Excited by it but I do think that we are Seeing a lot more institutional adoption Of crypto and that institutional Adoption is going to come very very Strong in 2023. all right Douglas I'll Let you go I encourage the audience to Comment down below all your links in the Description thanks man thank you thanks For having me thank you very much Foreign