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- 00:00This desire for compute has seen companies pivot. Cool. We’ve Once Upon a Time was a crypto miner and now it’s a key neo cloud. What are you making of all those trying to ride that wave and hiring key executives to do so? Look, at the end of the day, you’re going to go where you know, whoever pays you the most and where you can sell the highest price. And to your point, the Bitcoin miners have a secured grid power. It gives them that strategic advantage. If you think about data center space. And so I think right now they’re definitely coming out as a favorite and you’re seeing that demand across the board. So it’s going to be very interesting. You know, today Bitcoin is a used bitcoin. Blockchain isn’t used for processing transactions, but it’ll be interesting to see if that has any effect on line. In recent weeks, It’s been very interesting to track how Bitcoin’s behaved in the moment. Sometimes it can seem severe in the context of risk. Headlines about trade, The President’s Relationship with China. But I think you could give us some historical context that things are actually more calm through the Bitcoin lens than than at least the headlines might suggest. Yeah, absolutely. So on October 10th, we had our newest Bitcoin, Black Friday, which saw 19 billion and roughly liquidations across a number of exchanges. You know, it was a very large move. But relative to your point, Ed, you know, Bitcoin only moved the price move 12%. And if we had looked at, you know, call it 2020 or 2018, we probably would have seen that move over 40%. And so, you know, the maturation of the space is definitely here. The liquidations were clearly isolated to a number of exchanges, but it did show that while there was price maturation in terms of the technology that actually exists in the space, there’s a lot of work that needs to happen for it to reach the level of a New York Stock Exchange or CME. And so we’re really looking forward to that level of progress in the industry. Okay. What has to happen? Yeah, it’s a number of things I would say. You know, first off, it’s a level of coordination. And so if you think about, you know, what happens in circuit breakers, for example, when something happens in the market, you don’t necessarily have, you know, an uncoordinated circuit breaker. You have a number of different exchanges that are speaking to one another. The second is also if you think about inventory. And so there’s never really an instance, for example, where you can’t move from one exchange to another, which you see very often happen in crypto. When an exchange goes down, then someone can’t necessarily send funds into the exchange, a topic on margin calls. And so you see this level of cascading liquidations, which is exactly what we saw. Another thing that happens is, you know, even if you think about margin calls or the, you know, standardized risk metrics, typically in traditional finance, it’s completely standardized across all of these exchanges. And today we think about institutional overseas exchanges as almost isolated islands of risk. Each one has their own methodology. And so when some of this happens in the market, when you get this level of volatility, it’s very, very hard to track, you know, across all of the different venues that you’re trading. And so you get this level of liquidations. I mean, 19 billion is a number we haven’t seen historically before. But again, Bitcoin performs quite well relative to that, as did, you know, some of the other ETFs, you know, XRP and Solana. Let’s talk about those ETFs, because you are definitely the voice you want to hear about settlement, about management of software, your thinking about the ways in which the underlying infrastructure is going to support the growth here. But when we think about regulation that could see the FCC, I think it’s got 130 ETF applications on its desk. If the government ever opens back up again. They’ll be able to start allowing them to go through. There is a lot of particularly leveraged versions or very idiosyncratically altcoins. Is that the way you want to see the industry progressed? Look, at the end of the day, I think access is the most important. But I agree with you, There’s there’s definitely a point where there’s just attention deficiency. And so you can’t look at and underwrite 100 of these different structures. And so the biggest thing when I think about some of these structures and and teams is really who who is in management behind some of these and what’s the underlying risk in terms of the strategies. You know, you’re seeing some of these digital asset treasuries or ETFs, they might just be buying the underlying they may just be staking. But to your point, Caroline, you’re seeing some of these others that are taking on leveraged, looping and other levels of risk. And, you know, you just want to make sure that you have some level of understanding of the underlying structure. And so I would say for some of these it is a little bit great. You know, we are pretty excited of this level of access going into, you know, whether it’s avalanche, Athena, you know, there’s the access really opens it up to a net new market where people are willing to pay for that premium in order to get access. But you are right, the underlying risk is not the same for all of them. I it’s been a while since we’ve had you on the show and we spoke and I just wanted to get your reflection on this administration’s legislative efforts across crypto and the work that David Sachs has been doing and how you feel it has or hasn’t worked. Without a doubt, it has been night and day relative to previous conversations that we’ve had. We have been able to hire in the United States across the board and tell people that we work in crypto. And, you know, historically, if you think about a year ago, that was just not possible. And we were thinking about, you know, moving the company offshore, hiring overseas. And so, you know, relative to conversations that we’ve had with folks even in Asia, we’re seeing a lot of focus transition back to the United States. And that is just incredibly compelling as someone who’s building here in the U.S. and we’re really, really excited about the communication and support that we’re getting from this administration. Just very quick, do you support the Dollarization thesis that David and others are trying to put in place? Yes, absolutely. And you’re seeing a lot of that happening with some of these stablecoin legislation where it is going to strengthen the dollar by having a lot of these global stablecoins be backed by the U.S. dollar as the underlying. And so, you know, I do think it’s, you know, leads to a stronger U.S. dollar. But, you know, we’ll see what the administration can do within now in the next three years and whether they’re able to get everything over the finish line.
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Crypto Exchanges Need More Coordination: August’s co-CEO
October 20th, 2025, 8:32 PM GMT+0000
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