0:00 [Music] welcome back to careful boys everybody we got with us today the cash flow doctor aka the sound bath expert aaron oh you gotta bring some next time sound bath expert yeah so like by day i'm a financial professional by night i'm like a sound bath plant medicine person i like how you balance that's very bruce wayne of you yeah that's pretty cool man you use your left brain in the morning and the right brain at night that's it that's it the duality of life my friends a duality of life dude and also an interpretive dance connoisseur as well oh yes yeah yeah connoisseur i have a kind of sword reflective shades he goes crazy
0:50 that's it that's like those things go on that's it that's that's it that's it accounting is such like there's a whole stereotype behind accountants right and then like it's like it's just straight up numbers they're super logical no emotions whatever and then like here comes eric you wouldn't even imagine that this dude's an accountant you would maybe think like he's a rave promoter or something like that right the way he looks i think he works at edc and he's gonna try to get us to go there you know hey did you buy your tickets yet you know like flyers i got vip tickets yeah ████ seats for you bro and they're like wait what do you really do oh i do accounting but he does accounting for like nfts and crypto and all this cool ████ yeah and he was in very early got a
1:40 ton of he's like a resident guru of everything crypto and nft uh my question is what happened to tara and why didn't you save us from it yeah what the hell youtube we lost everything sound bathing it happened over the weekend too so i guarantee you he was ████ sound bathing all of his friends i'm just sharing all the good vibes to try to save everybody they can bring this down so so we're talking about the big gorilla in the room right tara luna so effectively for those of you who may not be aware i bet everybody's aware of it there's an immense amount of capital destruction that happened over the course of 72 hours it was 40 billion 40 billion dollars billions being destroyed from the marketplace and ironically there's 40 billion going to
2:30 ukraine too hmm [Laughter] it's destroyed from the marketplace so they they call this an immense capital destruction event right so there's an immense amount of capital that effectively just got destroyed and you know money always transferred from one place to another so people were making money on shorts basically betting that the token would go down so it it went somewhere but there's an immense amount of wealth that was just being transferred or being destroyed at this point in time i heard those suckers only made three billion so i'm like you destroyed 40 billion so you could make three billion you ████ suck-offs it's about sending a message i hate you how do i how do i transfer my poverty now yeah yeah so like poorness
3:20 for some additional contacts right this token or this company or the the the terra luna token was built by a guy named dokwan and so as this is all started rolling out dokwan is like this charismatic individual um which is kind of like you know you see this in the crypto space a charismatic individual that had this underlying technology and a lot of us we looked at it and said hey this looks really cool it looked like the future it looked like the future so there's like two pieces to it right they had the stable coin and then they had this governance token and so the whole idea is when you're looking at stable coin many of us use stable coins because it has a stable price in general cryptocurrency is very volatile it goes up and down so a fundamental part of crypto is having a stable coin component that a lot of d fire decentralized finance
4:10 operates off of so the most pop ones right now are like things like usdc which is from the coinbase usdt which is from tether and then we also had the the the one from tara luna then a bunch of them get i'll get depend or something a lot of them so what ended up happening was what made tara luna a little bit unique is they had what they call an algorithmic stable coin so most stable coins are pegged or they're they're linked to an underlying asset so for example usdc is tied to either current like other bitcoin or to other assets so for dollar for dollar you could always redeem it and then get that stable coin and that's what causes that stability in price when they have it when they like uh like base it off something they usually have reserves of that that's that's the nature of it right and
5:00 so this std like tether uh is it's like a like a south american currency or something or i don't know their bank out in like i forgot the caribbean or some ████ like that yeah and they're probably based in the caymans yeah so the tether is a little bit of an interesting one because tether they can artificially print tokens so there's always a conspiracy theory happening with tether and tether also does not disclose where the reserves are held so we don't know if it's dollar for dollar and also part of it is in corporate assets which are liquid so they could sell go in and out when you're saying tether is that usdt or ust usdt yeah so that's the that's the big like elephant in the room so step like luna and t and um tara they had an algorithmic one so instead of it being tied to an underlying asset that isn't tied to the company the way that
5:50 it worked is the governance token was tied to the the cryptocurrency and that works really well when the governance token is worth a lot right because people have faith and trust that the the currency here the stable coins can be good to go so what ended up happening was for the last couple of months um you know the the terra luna ecosystem was tied to this other protocol called anchor and if you know anchor is this protocol where you can put money in it's like you're putting money in the bank and the bank is going to pay 20 and in general terms in the defy world 20 doesn't sound like a lot like there was a time in back in the day like a couple months ago where you put things in like time wonderland or fortress and all these things and have like thousands or hundreds of thousands of interests
6:43 nocturnal you put it in the kfc damn that's crazy yeah because 20 is a lot for for the regular world for the regular world it's insane and then so what we're starting to see and what we're starting to learn as as things are being unpeeled from this is the way the anchor protocol is able to pay such a higher interest rate was the tara luna foundation was actually funneling additional cash into anchor to be able to inflate the the return on the investment and so what that was doing is in the ecosystem people were just pouring more money into anchor which also stabilized luna and then also the terror token those rewards were sweet is that the part that people criticize as being a ponzi that's partially that's partially part of the ponzi right i was going to say it sounds like it sounds like a
7:34 ponzi scheme something take yeah and i'll miss money and i'll take some more of the token over here and so that that was like the where the ecosystem was and like because folks were making so much money in this space we were all very bullish about it because you know to be honest like part of crypto world is we're kind of like degenerate gamblers right so when we see these gains coming in life of our increase our return on investment of these tokens we're like ████ we're all going to the moon kind of thing so we're all we ended up being bag holders so anyway this whole ecosystem is is happening in front of us but there's been warning signs there's been a lot of analysts that said hey you know this is kind of an unsustainable thing you got to be careful this may not be sustainable but a lot of us when you're when you tend to be bag holders it's kind of like when you're in
8:24 an abusive relationship or a religion you're like nah man ours is the best kind of thing so they had what they called the lunatics right the lunatics are like fans and fanatics of the luna ecosystem so what ended up happening was somebody found a vulnerability in this this whole ecosystem right and there's a lot of conspiracies out there some people are saying it's blackrock or citadel finance that causes crash and could have been them maybe but there's no real actual documentary the only thing we know that there's been a you can see the transaction of the short happening coming from uh what was the one that they said it came from gemini from gemini yeah but that's all they can see is no one knows who's behind those wallets and because they act you can see that someone shorted it right some people also are suspecting do quan of being shady too
9:14 right it's very possible so there's also there's an alternative timeline where a lot of the big institutions that originally invested into terra they're the first ones to get bailed out before that the consumers got basically ████ right so there's there's a lot of things and we're going to see this all kind of roll out like dokuan his assets are being seized by the south korean government he's being summoned to um like an investigation and people are also realizing now that he was also a co-founder of a previous stable coin that failed that was called balance or i forget basis cash right and so people are starting to find this out now i'm like oh my god what happened so this is kind of mechanically what had happened right so you have the stable coin you have the governance token and what ended up happening was in order
10:04 to keep this ecosystem going do quan purchased a ████ ton of bitcoin about a billion dollars of bitcoin to shut up the haters that that's exactly it because what what would happen is he knew that if the bitcoin maxis started b███████ about his product he could easily dump bitcoin and cause the price of bitcoin to go down right and he did the same thing with avalanche he purchased a ton of avalanche and that's the same thing that we're seeing right now avalanche has been depressed very heavily because they had to liquidate assets to keep this peg going so now he's got like all these assets here and so what one of the the main prevailing theories right now is somebody was like okay how are we going to do an indirect attack on the bitcoin um the bitcoin network and depress the price because we want to put in a big short well if we could
10:56 attack tara luna we could indirectly end up attacking bitcoin right so what people are speculating and saying is somebody had a large amount of bitcoin about billion dollars of bitcoin redeemed it for the stable coin and it i know i know it might sound a little complicated right so i'm going to try to break it down as simply as possible they redeemed it for a billion dollars of the terror stable coin and now basically lock up a big chunk of the market and now this this organization goes back and says hey we want to sell back the stable coin into the market at the same time like this perfect storm is happening the crypto markets have already gone down a little bit because of inflation fears because of tightening up of monetary policy instability in ukraine and china and all these different things so that the value of bitcoin has gone down so the assets
11:48 that tara luna has in their foundation has also gone down because they bought it higher they bought it at like 40 50 000 and at this time it was already like 30 something thousand yeah and then now imagine in the marketplace somebody says hey i need to sell back a billion of of of your guys stable coin to prevent the market from collapsing the tara luna foundation's like ████ we gotta buy this back and put it back into the market but the only way to do is they have to liquidate their assets that are now have been reduced in value by 20-30 percent so now what's happening it creates what we call the like an algorithmic death spiral because they now need to liquidate a tremendous amount of bitcoin which further pushes down the price of bitcoin which also overall impacts the entire crypto ecosystem pushes the value of the terra luna token down
12:38 and all these things are happening at the same time right so this created this death spiral where now you've seen basically 40 billion dollars of value disappearing from the ecosystem and the way an algorithmic stable coin works is if you have the the the governance token or the stable coin dollar for dollar you're supposed to be able to exchange it one for one but the problem is when the governance token goes down in value in order to continue providing a one to one value they have to make an issue more of that governance token so what you saw within 24 hours the the supply or the quantity in the market of that governance token expanded dramatically it went from like 2 billion to 17 billion overnight so they have this rapidly expanding supply of token and then this stable coin here it's losing its peg it's losing the assets
13:28 that it's backing by and it's creating this death spiral so that's why you saw luna go in price from effectively like 80 or 100 down to less than a couple of cents overnight because you have this number one that's collapsing in the the crypto markets this whole death spa happening where the price of bitcoins going down depressing the rest of the market now the tara luna foundation doesn't have enough capital to keep raising assets so they need to keep selling so it creates this debt spiral now a lot of folks overnight like there's influencers and there's people that i know that lost millions of dollars literally overnight i'm one of them i'm sorry sorry sorry um there's a famously ksi who's another like yeah
14:20 it's paper losses but um at his at one point no but he kept buying though that's the thing on the way down he kept buying on the way down but but paper losses was 2.8 million yeah so you see this massive collapse in value and you know some people they've refinanced their houses because this is a token that went from relatively low amounts to a high amount very heavily it was the best performing crypto uh in in 2022 yeah and it was the best performing right it was it was a top 10 token it was it was the highest gain yeah so those there's serious money you know what's crazy like between me and my friends i think i think it's a little shy above 3 million that was lost
15:10 yeah at least between what me and my a couple of my friends right it was at least three million lost yeah right and that's i mean i got away pretty decent because i i i thought i de-risked by putting it into usd a lot of people did a lot of people thought because it's a staple coin it's like just turning it into u.s you know dc us even dollars right they would they would no one really suspected a stable coin to dip like 50 30 even right maybe a couple of cents like people were laughing possible i thought the whole point of stable coin is it's stable right is that a misnomer though on the on the name because it's like putting a lot of faith in in the title of something and the way that it's coined that's the new one eighth coin that's how like because like i had it
16:00 had a decent chunk for me like i don't have millions in it but i had a decent chunk of money in it and i was i was like but i was mostly because like i was like oh all my friends are doing it right which is probably not the best like financially the best way to invest it's an online roulette yeah that's what it is but i mean online crafts like oh you're gonna go in me too yeah i wasn't playing with stuff that i couldn't afford to lose so like everything that's the key i was like i i can i can make this back like if i it's not gonna kill me so i mean i don't i can't afford to lose a million bro i don't like but i did it anyway do you feel good while you're doing it though i feel like that's what gets you off though yeah yeah i mean that's what i mean it's like that's that's what you're chasing though you're chasing that next up so what's your whole experience like how do you how did you feel the day of how do
16:50 you feel now like you must have been through a roller coaster i like i think everyone felt the same way where when it got deep pegged they're like oh this has happened before um like it's been to like 98 cents before but it was corrected in a matter of a day so then i was telling everybody in it like if this doesn't correct in one day we're ████ and then so 98 went to 97 96 and then that whole day was like wait what the ████ is going on and then um you know we all had our most of our luna staked yeah i had some de-risk into ust um i had i had actually a good amount de-risk but then if if if even if a stable coin dips like 30 percent dude you know if you have 100k in there that's 30k just internet right so like
17:41 i got out i was the only one out of i think all my friends who got out because they staked everything and there's a 21 day long that's where i was that's where i was in a state i staked my life it's a 21 day lock so even if on the day you let go you have to wait a whole month but we had we had days to get to act you know so then then not only that like i don't know i got a bit of survivor's guilt because while it was going down um steve was helping me on the phone like oh you just gotta buy this move it here whatever uh send it to coo coin whatever and i was like damn and during the whole time we were talking um he de-risked earlier but then everything else was trapped in for him so he's out there just watching his ████ he can't do anything about it while he's helping me on the phone move my money out and i'm the only guy out of our like all of our like uh whale buzz
18:31 your family drown but you're helping someone else [Laughter] crazy but your family's so mean though he sold earlier and took his like profits and stuff but in this moment no one saw it coming yeah yeah and then everyone thought like you know maybe we'll lose some and then like you know like you know tomorrow will come and then it'll pop no one expected it to go down to like negative it didn't go to zero it went to ████ like what the hell was that you know it went to five zeroes and i looked at my chart and i'm all like dude like for my for just tara alone i uh i mean my peak was like 1.6 million but but at this within a week span right it was about 1.2 million to absolutely nothing yeah and i was like wow [Laughter]
19:22 [Music] that's like you're watching the chart because you can kind of see the chart do this and then all of a sudden it just like like 90 degree drops and then what's crazy is when it gets when it hits the bottom and it can't go any lower and it just kind of flat lines at the bottom in the yeah it turned into like the heart monitor and movies or you're just trying to come on you can make it back by the tip come on but every time every time these kind of events happen right people kill themselves people they go through some ████ right and that's why i have the survivors guild part because i can i can play games like this and i know that i have the earning potential to like go out there make it again
20:12 it's gonna take time like 1.6 mil that's still a lot of ████ money to me it's like it's still life-changing money but this is my second time that i lost such a big amount last one was in 2018 when i had a huge dip um but even that i had faith in recovery because the whole market dipped i saw you know it was going from just one hour during the bear i saw my whole whole crypto stack go to 10 000 bucks right but that's just paper wins and losses so the whole coin didn't destroy so i was like i'll wait this out i'll keep buying during the bear and then during you know the bull it'll come back again for tara luna i have zero faith that was just it's just it's just disappeared the team is ████ dope though and then if you use the actual terra like software just the whole wallet and everything in the exchange it
21:03 was so fast it was cheap transactions i was like this is so good i wish it worked just because of the interface and everything you know like the way that and then we were like able to like buy stuff you know people were starting to uh make crypto available for like travel like a hotel like you could get a rental car whatever and i was like dude this is the future it's being used it's not just a speculative thing now like there's businesses that are using this for all these things and i was like utility was happening and i think that was the awesome part but i think for me um i could sit here and kind of like joke about it and laugh with everybody but i know people who are like um their earning potential is like dude they're you know they work in warehouses or like they're they just everyday people so so they they put a lot into this and then
21:54 they made crazy life-changing gains um it's all relative right because like for some people like 40 000 is a is a life or death kind of money and for other people it's just like oh they could throw away you know 500 here 500 000 there and they'll make it back and that's just a game to them and that's the part of the whole thing that makes me a little sick because real people are tied to all this and then so like when things go bad i mean we can all say you shouldn't have ████ you know did that with your money but like the point is people do it every time with everything stocks whatever you know they this always happens and when a catastrophic event like that happens i'm just worried about people's like mental health they're like like are they gonna off themselves like like i don't
22:44 know you know uh that's the part of it that's just like oh i wish that wasn't a part of the game yeah and it's tough because like a lot of us our identity and our value is built upon our perception of money yeah right bart was talking about that earlier is reading a book that's talking about like the psychology of money yeah and monies right now in our consumer societies is very important to us because that's how we determine how we're worth it to everybody else through the clothing we wear the cars we drive the house we have so when people lose a huge amount of money they feel like you no longer have value and that's why people kill themselves right so it's it's a really challenging moment and this i think is a watershed moment for crypto in general and you're starting to see a lot of like governmental bodies come out and say whoa whoa whoa we need to kind of like look at this a little bit more and regulate and everything and i know like the crypto space we're like very anti-regulation
23:35 and it's going to hurt the space for a little bit but i think long term this watershed moment although it's super painful for a lot of us it's going to be a a positive thing i mean trying to turn lemons in the lemonade right but it's going to be a positive thing because it's going to create live regulation that's going to create real stability right but at the same time too this regulation is going to take away the 100 x returns that we've seen in the past but it's going to create stability so that way every average everyday people they won't get hurt like this anymore ████ one percent returns again dude am i ████ like wells fargo point one percent ooh help you save for retirement right right it's like it's like how do we go back to that you know yeah i was talking i was at my barber and he's like oh man you see what happened to luna man
24:26 and then he was like he's a white guy too yeah yeah he was like man i saw it dip like crazy and then i saw two dollars oh ████ that's a steal so i bought three thousand dollars and then he was like and then it's less than one cent man oh ████ i you know i did that on the last day when it was dipping hard i was like oh this is a good ass deal and i dropped 50k in that ████ oh my god so i know bro i know dude i could have got away with more i mean anybody who bought it when it was five zeros and a one yeah did you see that people who bought in there made millions because they went back up to three zeros into two no but they actually it's crazy dude that weird-ass
25:32 you
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