Today GameStop drops its crypto wallet Because of regulatory uncertainty Microstrategy reveals it bought Thousands more Bitcoin in the second Quarter and John Wu president of Ava Labs weighs in on the privacy concerns Associated with World coin [Music] Welcome to cnbc's crypto world I'm Kate Rooney digital currencies rebounding From yesterday's losses by noon Eastern Bitcoin jumped back above 29 thousand Dollars ether meanwhile traded above Eighteen hundred and forty dollars while Ripples xrp traded at 69 cents Okay let's talk about some of the top Stories microstrategy is holding more And more Bitcoin in its second quarter Earnings report the company announced it Had bought more than 12 000 Bitcoin by The end of July held about four and a Half billion dollars worth that's at Current prices the company's chairman Michael Saylor joins cnbc's Squawk on The street this morning to discuss the Company's commitment to bitcoin despite The headwinds for the broader crypto Market in recent months Bitcoin itself Is up 145 since we started buying Bitcoin and and that uh Bitcoin position Creates the volatility in the stock that Allows us to borrow and raise Capital Cheaply in order to buy more Bitcoin and Grow the business
Bitcoin is emerging as the safe haven Institutional asset if you want to play This space without trying to parse Through the politics the the legal and The the regulatory uh complexity next up GameStop is giving up on its native Crypto wallet the retailer announced on The walls website that due to regulatory Uncertainty support for GameStop while It will end on November 1st that's when The iOS and Chrome extensions will be Removed from the market GameStop Originally jumped into the crypto wallet Game in May of 2022 seemingly as a way To capitalize on both the meme stock Craze that sent its stock soaring in 2021 and the crypto craze that drove Digital asset prices to all-time highs Last up Ripple just released its latest Transparency report and the company's CEO took the chance to hit back at the SEC in a post on Wednesday Brad Garlinghouse said quote we began these Reports to voluntarily provide updates Given our xrp Holdings sadly they were Used against us in the SEC lawsuit he Went on to say that the reports could Look a bit different going forward this Latest report shows the total amount of Xrp held by Ripple grew by more than 44 Million while just under 42 billion Tokens remain in escrow to be released At a later date All right let's talk a little bit about
World coin for today's main story the Scrutiny around Sam Altman's eye Scanning Tech is growing with Kenya now Suspending the project over safety Concerns crypto world's Talia Kaplan Spoke to John Wu of avalabs about Worldcoin he also gave his Insight on The curve Finance hack and explained Avalanche's latest program focused on Tokenization World coin the crypto projects created By openai Sam Altman went live last week And is already facing some criticism Over the Project's digital identity Service and some Regulators overseas are Now investigating the project What do you make of this new crypto Project and the privacy concerns Associated with it I mean there's two things there's so Many things going on with it Um having privacy digital identity and Having it to yourself self-sovereign Meaning like self-custody is a big theme In all of the world not just in um what Three I think some of the criticism Surrounding this is related to how the Token was sold and it was done overseas So there's a lot of issues surrounding The mechanism of it in terms of how the Technology works as well as how the Transaction was executed especially in Uh geographies overseas but the concept Of providing everyone with some sort of
Privacy some sort of identity that they Can actually own and use to their own Disposal I don't think there are any Issues with philosophically what it's Trying to do what do you think about the Increased interest in Ai and the fusion Of AI and crypto I mean I saw that back In June all the labs actually and now Announced the launch of Ava GPT as Blockchain companies have been trying to Incorporate the technology what prompted Avalabs to create Ava GPT did the Heightened interest in AI have anything To do with it Well thank you very much for asking that Question yes we did do that and Obviously it segues well from worldcoin Um Sam Allman obviously is uh you know One of the founders of open AI I think AI everyone's learned not just uh of a Lads or other uh crypto or you and Everyone from various Industries learned That AI can help you make better faster Decisions and it can help you basically Save money in terms of streamlining the Supply chain of whatever you're doing Cutting out middlemen as well and Allowing to do it faster and cheaper and More efficiently so the things that lava Labs have done with a i R1 allow the Developer material openly so that AI can Search it properly so that developers Can have better and speedier ways Deploy On the Avalanche blockchain
Also we use AI for tools whether it be Like dolly or others to help us design Better and faster so frankly AI helps All Industries and web3 is no different I think what's interesting about what Blockchain can do and to help the growth Of AI is is is the provenance in the Data so you know Ai and algorithms are Only as good as the data and if Blockchain could be the provenance Distributed Ledger and the provenance of That data Maybe the AI will be hopefully The algorithms will work better also Algorithms need to be tracked with which One is good and which one does what it Says so you know using the blockchain to Help track those algorithms and create a Marketplace for that or other projects That people are doing with AI and Frankly I think you know uh you know There's a lot of news recently Unfortunately that we're seeing since The weekend to now ai can also help Blockchain by auditing code faster or Better so that there is fewer hacks in The space just this week we learned that Defy exchange curve Finance was hacked Potentially leading to the price of Bitcoin and other cryptocurrencies to Drop as crypto sentiment had been Compromised the platform tweeted over The weekend that hackers used a bug in Curves underlying code to trick smart Contracts allowing them to drain a
Number of liquidity pools it's important To note that according to chain analysis Crypto hacks have actually slowed in the First half of this year thanks to low Liquidity but what do you make of this Recent hack and what do you think can be Done to prevent something like this from Happening on other platforms First of all it's very unfortunate and I Feel for the the retail people who have Lost money here it's very it's not good Um listen what's happened mechanically And what's going on has been well Reported but what I think with this Situation Um big picture wise obviously it's very Bad for the space from the asset class Perspective Um you know there is a lot of people Affected from this and because the space Is very self-referential whatever Happens in the curve pool and people Losing money there and triggering stops Or whatever will lead to other areas of D5 and it could cause a Cascade effect Not that different frankly from what we See in traditional Finance when a big Hedge fund or a big bank and this is why They say too big to fail it can lead to A Cascade effect elsewhere so that Possibly could happen from a from an Asset perspective you know but also There are some things that we need to Address more fund mental perspective the
Space really needs to do four things I Think in my opinion at least three out Of the four you know one the space Really I think needs to Um realize that Um the code in the smart contract needs To be better audited so either perhaps You know third party uh oversight or we Talked about it earlier infusing AI Technology to better audit the code the Space also really needs to remove I Think number one needs to remove Bad Actors and I think good news is that is Starting to happen we've got Mika Framework in Europe Asia is doing a lot The US is you know especially you know Recently we've seen a lot of movement in Congress trying to push bills through to Identify or classify assets and and talk About how things are sold properly and That is all going to help remove the Bad Actors three you know I think there Should be some sort of standardization For issuing tokens so that when there's Standards it's it's you know the issue Of these tokens becomes Um I wouldn't I don't want to say Regulate it but it has a protocol for For doing good instead of bad and lastly I think very important we need education For the retail in this space it's no Different from how now grandmothers out There know not to give out their Personal pii information on the phone to
A stranger there needs to be an Education process for retail people These four things have to happen going Forward for this space to grow last week The Avalanche Foundation launched a new Initiative focused on asset tokenization The program called Avalanche Vista aims To demonstrate the value of tokenizing Real world assets like real estate and Commodities can you take us through how This works and what was the driving Factor behind this initiative Yeah well tokenization Um avalapsing tokenization is one is one If not the killer app for the blockchain Tokenization just uh to reiterate is you Know the simplest definition is to Basically transfer the right of Ownership of something or cash flow Stream or or an asset and and transfer That right digitally onto a blockchain So it becomes immutable and has Transparency and so everyone can see That transaction and doing it this way Has so many benefits it uh makes it Easier to issue to own and to transfer Those assets now when you tokenize Generally speaking on the highest level You have three major benefits one it's Far more efficient a process than what You know how it's done traditionally two It also could create more access to Individuals and to other players around The world that could not get access us
To the same asset and lastly you know That we're all hoping that one day it Will create more liquidity for these uh Private or hard to find assets I think This program was done by the foundation Because they see that we need to jump Start the liquidity benefits of the Space We went into greater detail on that new Initiative and weighed in on recent Regulatory developments in the U.S you Can check out this full interview on Cnbc.com crypto World okay that's it for Today we'll be back again tomorrow with A lot more we'll see you then [Music]
