Joining us here in New York City at the NASDAQ are the caxy co-founders solo Cay And Brooklyn Nets starting point guard Spencer Den witty thank you both very Much for joining us here in New York City thank you for having us thank you Absolutely let's talk prices crypto Prices recently have been moving higher For example Bitcoin recently hit $338,000 after being stuck in a tight Range for months so I'm curious Especially because Spencer you have been Bullish on crypto for years what do you Make of these higher prices and do you Think perhaps this is the start of Crypto's next Bull Run your buddy solo Over here recently wrote a piece a few Months ago talking about how crypto's Next Bull Run will be like something We've never experienced do you agree and Do you think this could potentially be The start of the next Bull Run um I I Think it's the very very beginning Stages I think we probably have some More months before we see uh some Explosive price action but um Everybody's calling for six figures I've Seen people calling for as much as 10x Like 350,000 um I don't know if I'm going to Go that high but um I I think crypto as A whole Bitcoin specifically is going to Uh move up dramatically in this next Bull Run it's going to I I actually
Think all markets are going to have a Bull run um in the next probably two Three years but crypto is going to be Explosive we'll see if that comes to Fruition solo what do you think are the Factors at play I know you noted that Hopes that the fed's vision for a soft Landing coupled with a Technical event called the Bitcoin Having is giving some optimism to Investors you wrote that in your piece That we spoke about a couple of months Ago but what do you think are the Factors at play right now yeah Absolutely I mean I think we also have To take in account that crypto is still Quite depressed from where it was in the Last peak of the Bull Run um and so when You're thinking about all the different Types of assets any sort of agnostic Investor might buy um you know the Crypto still looks relatively cheap Relative to anything else you can buy Real estate still is trading quite High Relative to where it's been um and so Are a lot of other markets so our stocks And internationally as well and so when You think about all the opportunities That are at the hands of investors um Coupled by the fact that um there's There's essentially you know the people That are left in the world of crypto Truly believe in the space so any sort Of downward pressure is quickly absorbed
By the people who are you know ready for That next bull market and you know Talking about that um the way that we Have and so it's it's one of those Things where it's it's a very quite Attractive uh you know entry point for For people in looking to get exposure to The asset class now spencor you spoke With CNBC back in November of 20121 at the time you noted that crypto Is a new asset class and that it's here To stay and that people who are thinking About investing in the space should Think about it as a long-term investment Yeah here we are crypto prices are Moving higher once again but of course In 2022 we saw a lot of scandals and Bankruptcies most notably the collapse Of FTX we experienced a bare Market did Your stance change during that bare Market or do you still believe this Asset class is here to stay and that People should really look at it as a Long-term Investment um yeah no I believe asset Class is here to stay um any asset class Uh anytime there's money involved There's obviously going to be bad actors So that's not uh unique to crypto and I I know that sometimes it's been marketed As such as Black Market or as it's the Only asset class with scammers Etc but That's just fundamentally not the case I Mean we we saw the the subprime mortgage
Crisis right and and things of that Nature um and and and yeah I mean I Always tell you know people to do their Own research to to be in it for the long Haul just because you know when you're Hoping and praying on a coin to go 100x In in days I mean it's like buying a Lottery ticket you know and I can't in Good faith uh recommend anybody to do That and sometimes it does happen and Sometimes people strike gold but that's Not uh what I recommend and again like I Said Bitcoin though um I think Fundamentally is pretty strong and then Obviously if you look at blockchain Technology as a whole which underpins uh Most uh crypto assets uh it's a it's a Pretty uh transformative technology and It's quite impressive even amid this Bare Market caxy was able to raise a Significant amount of capital in total $33.5 million from backers including Polygon and NFL player Ezekiel Elliott How are you able to do that and what Does that signal to you solo I'll start With you and then uh Spencer I'm curious To get your take as to what that signals To you the fact that you guys were able To raise all that capital in a bare Market yeah I mean I think it really Speaks to the the quality of our team First and foremost I think we have a Great team um it definitely makes it Easier getting to play with this guy all
The time too trying to raise money it's Quite articulate it's a very powerful Tool when it comes to speaking to Investors but you know also I think our Journey is quite authentic like our Journey Journey started a number of Years ago I used to work out here in New York City as an investment banker Spencer became the first NBA player to Securitize himself I was a Securitization Banker at the time um and I think you know our our journey Predates that fund that fundraising Round quite for quite some time and I Think by you know leading by example Being early to the conversation and Being a disruptor um has definitely Helped us position ourselves as leaders In that market when it comes to talking About the market opportunity of you know Reinventing the Creator economy but then Also um making crypto Technologies Usable and so I think for us you know we Greatly benefited from that I think the Timing was also a little better than it Was you know right now but um you know I Think our our our vision has been really Clear and I think we've been authentic As a as as a team for quite some time And that's definitely been felt by our Investor community and um you know we Have great backers polygon uh Ezekiel Elliott like you mentioned is a good Friend and Backer of the project but
Also uh hadera and the harar foundation Have done a great job in supporting the Project and getting it um you know into Into the visible minds of people and Spencer what about you what does this All signal oh uh the fundraising e Effort specifically or just uh the Fundraising efforts the fact that you Were able to raise all that Capital amid A bare Market I think he's being modest Uh you know solo as our CEO working Literally down the street um Warden Business school grad you know I mean Extremely sharp individual uh there There's not many acting CEOs in our Space that uh speak like he does have The uh stick tutiven the the the Go-getter nature um some of that maybe Because he has an athletic background as Well and that then obviously bleeds into The authenticity and how we can kind of Both step into to both worlds right um Obviously he's fully in the business Community now but he still is able to Have the the conversations with athletes Influencers Etc and then obviously me Being more on that entertainment side um And and stepping away from some of the Day-to-day business Um of the project also adds you know a Certain amount of validity and Credibility as well so I think it's a a A great management effort between the Two of us but predominantly him and then
Obviously our entire team I mean you Know they they do a phenomenal job I I Call our our lead designer Chad LeBron All the time so shout out Chad because That that that's the goat and I Understand it has been about four years Of development and building and caxy Officially launched back in August Can you take our viewers through exactly What to expect from caxy how it works I Understand it's meant to empower the Content creator and artists and to allow Them to directly interact with their Fans what else can people expect from Caxy yeah absolutely so I think the Easiest way to think about caxy is that It's a non-custodial crypto wallet that Actually does things and so what we've Used the peer-to-peer Network system for Primarily to this date and what we've Been known for is obviously allowing Content creat creers to be able to Monetize digital experiences with their Fans so they can offer things like video Calls video messages exclusive content Nfts custom experiences and more um and That is all accessible via the crypto Wallet that's where they get paid they Get paid out in usdc like I mentioned We're built on hyera um which obviously Allows very fast easily transfers of Value um but also caxy is a a non-con Wallet that allows you to do um you know A lot of different things like call your
Friend or you know be able to have a Social feed and experience tied to that Wallet that makes the wallet worth Coming back to each and every Day now you mentioned toera uh when caxy Launched Tara tweeted that social media Is going through a revolution and caxy Is at the quote Forefront Spencer you Actually tweeted when caxy launched Saying that calax is similar to the Social media that we're all accustomed To but the tools and the opportunities Are different can you elaborate on that Um yeah I I mean obviously some of that Goes to the fact that we're built on Hadera so we can do microtransactions Also hadera unlike other blockchains has A predictable fee structure so um you Know in the The Rise and crash of a Typical crypto Market it's not going to You know mess up your your asset value Or your ability to interact with fans You know um with like gas fees Etc um And then again like we we built it to Look like web to so it was a very Familiar product um so it had a very uh Userfriendly interface and obviously the Underpinning allowed us to do some more Special things in terms of transfer of Assets Etc I understand you guys are Here today to make a bit of an Announcement a new feature is dropping This week on caxy and I understand that This new feature allows people to
Essentially send crypto or nfts like you Would a text within the caxy app solo Can you take us through this new Interactive platform and this new Feature yeah absolutely so if you uh Open up caxy uh it's a traditional Social experience you'll look to notice That it has a very familiar social Layout like Spencer mentioned you'll Have your home feed you'll very easily Be able to do things like create a new Post or interact with your friends go Through profiles uh you know navigate Through your wallet see all the Different types of assets and nfts that You have um but to discuss our new Feature which will be dropping this Thursday um which will allow you to send Crypto without the need for a public key Um essentially what you're able to do is We wanted to an an analog sending crypto To the idea of sending a picture or a Meme in today's world right so currently If you wanted to send crypto I need your Public key or whatever it is it's that 40 number you know alpha numeric phrase It's confusing if you mess up one number Your money's gone forever which is very Scary which is very scary um but for us We think that sending crypto should be No more difficult than sending a text And so the two ways in which you might Do that obviously go to you know the Person's conversation um or potentially
Go to your gallery click an image and Share it to your friend and so what I'm Actually going to do here is live uh Right now I'm going to send Spencer 500 Usdc on the hia network you're a lucky Guyc I'm going to need that back Because you ow obvious reasons you owe Me dinner anyway he's not an NBA player Like you but if you go through and you Go over to the send crypto portion of The application you're hit with a Slideup panel you can navigate through All the different assets you have in the Wallet um so we plan on supporting a Number of different chains uh I'm going To pick usdc here I'm going to tap in 500 and I'm going to send that to Spencer and as easy as hitting a button Like this you can now see that the usdc Has been sent to Spencer and he has Probably received it on his end so if You go over to the transfer details you Can see all of the stuff 500 usdc you're A lucky guy can you send me some next I Guess I'm out it's gone yeah I can Imagine um but yeah that's essentially a Feature that we're going to be launching This Thursday um which will allow uh all Different types of users on the platform As we mentioned before this is the first Non-custodial wallet that legitimately Does things if you ended up going out And getting dinner and wanting to split The bill now you can actually use crypto
To reconcile that transaction in a way That you may never have been able to Before um right now people luse wallets Just to hold their money and so we aim To insert encourage usage um this time Around and that's why this bull market Is going to be very different than Previous generations And it certainly will be interesting to See if that does in fact transpire you Have a section on caxy called featured Experiences Spencer can you take us Through that in jumper 101 how did that Come about um again it just all came Down to like fan interaction right so When I was tokenizing my contract and Just looking at the the marketplace for Entertainers and and and the the fan Ecosystem and how they want to come Closer together there's a whole bunch of Things they want to be a part of right So for me obviously as a basketball Player some kids tell me they want to Practice with me or or you know learn How to shoot a jumper or things of that Nature and um you know for feature Experiences we wanted to be able to Curtail it to whatever you wanted right And whatever the fan wanted and and in That market so that's what that comes Down to I mean obviously everybody's Going to have uh something different Like they may want you to give them a Hair tutorial or something of of that
Nature right they probably down sign me Up yeah they probably don't want Anything to do with with my hair but you Know it is what it is so um that that Was what it was about being able to have Those uh bespoke kind of more custom Interactions um and just drawing the the Fan closer to the the content creator Now caxy launched in August it's been a Few months now so how is it going is There demand for this product yeah Absolutely I mean it's been amazing uh You know why when we launched and what We've been mostly known for again has a Lot to do with that Creator monetization Tool Suite that we've built um that's Probably Galaxy's most unique feature It's a overdeveloped shop experience Like you mentioned you could basically Productize anything if you're a Celebrity chef you can offer cooking Classes if you're a personal trainer Personal training sessions you can offer Virtually anything um but I think what Was most surprising about our time since We've launched is that there's actually Been demand for a lot of these crypto Forward features like the like the Sending crypto through DM um and so the Idea of caxy using a social wallet or a Crypto wallet to solve the Creator Monetization problem it's applicable Across a lot of different uh verticals Within the World ultimately we hope one
Day that this is the wallet that you log Into your door Dash account to and pay For your food with crypto right Essentially this is a wallet that does a Lot of things and so a lot of the demand Side that we've gotten um a lot of the Inbound from the different layers ones That want to integrate with us and Support their networks um is that they See this as a tool much greater than Just helping people get paid for for for The content creation which is obviously Very important um but there's been a lot Of demand from a lot of different Buckets which was honestly the most big The biggest surprise and Spencer in a Nutshell how does this defer from say a Cameo or an Instagram well again right so Cameo it Has a very specific Lane it has no Wallet feature no crypto utility um and And shoot some of the customization that We offer is obviously far more than Cameo um Instagram in itself you have Far less uh monetization as well I mean That's why a lot of people have like Link tree in their bio because they have To jump you to you know5 different sites To try to gather all of that traction um Obviously Instagram is a is a huge tool Because of the phenomenal user base it Already has but we we have kind of a Different Lane in in that Respect now that you guys are here
Together in the flesh solo I heard it From you remotely but how did caxy come About Spencer I understand you went to Solo and as asked him for help when you Were trying to tokenize your NBA Contract but I'm wondering how did Tokenizing your NBA contract evolve into Galaxy and why specifically did you Reach out to solo was it his impressive Background and the fact that as you Astutely noted he graduated from Wharton And he was working as a securitization Investment banker for City group global Markets was that part of the reason oh 1,00% so if you look at the crypto Landscape you'll hear all the time about Like uh security tokens vers utility Tokens right like security vers U So getting into securitization um is Profitable but it's also difficult um You have to work with the government to You know make sure the offering is legal You have to jump through a bunch of Different Hoops you also have to have I Like the F There there you go uh and and you also Have to have uh something that has Enough value to to be worth the effort Of securitizing right so or securing Sorry um my contract obviously was more Than enough to do that but everybody's Not going to have that uh the value Basis right like if you're only trying To secure you know a million doll
$500,000 it may not be as repeatable of A model like you you you could extract Value from it but the margins become a Little bit uh lower and so then I also Have to now go to High net worth Individuals consistently and get them to Buy into this kind of more radical Concept whereas you see like in the Utility landscape in in the the product Suite that we have it attacks that uh Creator middle class right that that is Really uh continuously creating content All the time and it's how they you know Put food on the table um content Creation for me is supplemental um in The sense of like personal content Creation right like I step on NBA floor And do my job so as you anytime you Create a product you have to be looking At the market and and and analyzing uh Where it could possibly go and so Throughout that process process we sat Down and saw the bigger need and and Again you know every time uh C continues To to learn and grow and that's how we Also obviously got to you know this Amazing uh wallet that now we can you Know send send crypto like a text Message which there's no product like That in the world you know but that Al All all comes from you know growing Through this process uh having that Unique uh almost onetoone relationship With a lot of our users because you know
Friends family then you know personal And business business relationships Right we actually have those Conversations with Ezekiel Elliott we're Not just paying him to be on our Platform so we we get a different Knowledge basis uh than than other other People other programs other platforms And um that's why I think cxy is Different I mean obviously again without His genius we wouldn't be here um and no It's it's it's it's real without his Genius we wouldn't be here um warten Business grad like phenomenal I couldn't Think of anybody better to lead us but That's why I went to him in the first Place because of his securitization Background and then we we've grown Together over the last five years Tokenizing your NBA contract you Initially tried to do that 2019 2020 an Innovative concept at the time you did Receive some backlash from the NBA in Hindsight given the fact that you got That backlash and the fact that Co hit a Few month mons later and obviously Nobody could forecast that and Pro Sports were pretty much put on Pause any regrets looking back or do you Still think that was the right move for The time I wouldn't change it for the World um I think I'm fortunate enough to Work for the best uh Sports league in The world um you know and obviously we
Had respectful discourse we disagreed at The time but we've seen that you know Now the NBA has been at the Forefront of Adopting crypto in some form and fashion So and doing nft and different uh uh Projects and things so you know the NBA Is phenomenal and that experience like I Said it it not only you know taught me a Lot about securitization it also led to The utility aspects and now obviously The the larger wallet aspects that we're At now and and so without that um um Like I said respectful discourse between The league and and solo being by my side Um we wouldn't be here today and we have A platform that like you said race Started million and we're about to hit a Probably a bull market in the next year 18 months primed in position to you know Hopefully hit 10 figures and exit that's A go that would be amazing that would be Something to see uh do you plan on Tokenizing future contracts with the NBA Um I I could see that being something Down the road um but again that's Probably 5 to 10 years off that's Probably a a a retirement type of uh Endeavor where like like I said cxy Exits for a billion dollars I go back to The league and I say hey like you know Remember when I tried to do that 10 Years ago we need to revisit that as as Business partners and you know I think Um after this bull run they might be a
Little bit more receptive to maybe Having a a a Joint Task Force on on Tokenizing NBA contract since all the Sports gambling and fan duel going on Right now clearly you're bullish on Crypto did you ever think about getting Part of your salary or all of your Salary in crypto Um I mean I I think sometimes to be Honest when when people have headlines Like that it's for the headline because I very well can just buy crypto when Like they send me the deposit and I can Just you know invest in myself which I Do so uh sometimes people are doing that For the for the headline of it or it's An endorsement deal or something of that Nature and and you know more power to Them but I I'm an active investor I mean You know I'm I'm trying to to get get Some more Bitcoin as we speak you get Prepared now solo I heard you say that In the beginning Spencer taught you Everything you knew about crypto who Would you say is in the lead now who Knows more about crypto at this point in Time uh I think it honestly depends on Like what what it don't be Modest like no he he definitely brought Me he brought me into the ecosystem a Long time ago I mean for me to hear that The entire Financial system was r ruined And broken only a hot 6 months after I Finished school and had a Wharton degree
I was not having that so I definitely Left that go for a minute um but no I Mean I think in terms of like the OG Status like I mean he was in the asset Class when no one wanted to be in it so Like he definitely put a lot of he he he He he fell on a lot of Swords uh for all Of us to be able to do what we're doing Right now um so you know I sit in it Every day it's my job to know it so i' I Would have to nod myself uh but he uh is Obviously probably one of the most Articulate people in the space Especially when it comes at the Intersection of sports and crypto um to Be honest you guys you guys obviously Have a lot of love for each other you Make great business partners I can tell From as an outsider I will say but Obviously we're sitting here at the NASDAQ the tech heavy NASDAQ of course Is a major stock index so I have to ask Any plans to go public one Day oh man uh I would love to go public One day uh I see you haven't discussed This yet I mean there's just a lot of Ways to think about it the crypto Ecosystem is evolving so so rapidly and There's so much collaboration in the Space there are several ways to to find Exit liquidity and also you know find Ways to actually you know partner with Different people building other Platforms and so whether that's a
Strategic takeover or strategic Acquisition or whatever it might be um There are a lot of different Pathways For for a wallet but we do think that There is going to be uh you know demand For a product like this uh crypto right Now is an asset class with trillions of Dollars locked into it um hopefully Trillions of dollars more come into the Asset class over the next 18 to you know 18 months or so um and right now we've Built something that makes it really Easy for anybody uh to interact with the Chain and move assets um solving a Really big usability concern for the Entire industry and so um maybe it's an IPO maybe it's an acquisition who knows But our job is to obviously get the word Out and do our best to to push the asset Class forward and what can people expect Of caxy in the future I know you Mentioned that right now you're on Hadera but you also mentioned when I Spoke with you last time in September That you're looking to expand to other Networks are you able to disclose what Networks those are and what else can People expect from Galaxy we actually Will be uh putting some stuff on our Website that will make it quite publicly Visible to everyone that follows the Project to see our updates a public road Map of when we expect to integrate Different chains um you know we're close
Partners with uh a lot of different Layer ones already at this point just Given that they've uh you know Contributed to the project uh I know You're good friends with the the flow Ecosystem the Dapper guys as well and Roham team and so um you know looking to Find ways to to add more support and Really just give this functionality um You know access to to to anybody that Wants to to be able to do things with Crypto assets not just people who um you Know are in haera but the entirety of Web 3 needs a wallet that does things And so um our job is to try and capture As much of it as possible and I think Some of that uh utility is like weeks Away not not months and years away so You know the the cross chain utility is Is coming so stay tuned absolutely we Will be looking out for that and as we Approach the end of the year I'm Wondering Spencer what is your 2024 Outlook for crypto blockchain technology And web three in a nutshell in a Nutshell I mean I think everybody's Going to be waiting on the having and Then we're going to see where it goes From there Um again like I said I think uh six Figures is easily Within Reach for Bitcoin and obviously that that drives The market at the moment um how high it Goes I I don't know but everybody's
Going to be kind of getting ready for The having and then usually about what a Year or so after the having we see the Uh the absolute Peak so uh you know stay Tuned pack your back stay tuned pack Your bags uh speaking to our basketball Fans who are watching I got got to ask What can people expect from the Brooklyn Nets and from you this season I know the Season just kicked off you had a big win Last night five wins so far this season And it just started so what can people Expect Uh the Brooklyn Nets uh are in an Interesting spot right now I mean Obviously uh we just had uh two max Players straight away but we've got a a Phenomenal group of guys that um play Hard are super committed to the Craft um And go out there every night and and Give their all all out on the floor uh So I think that's uh something to be Excited about if you're a fan obviously We're pushing to try to make the Playoffs um which we think is a very Realistic goal and then uh to be some Disruptors um much like crypto when we Get into the playoffs so that's uh That's the goal and then for me I think It's Uh uh you know I I have a lot of Different roles um I've been a lot of Different guys uh in my career From you know primary 20o a game score
Take a team to playoffs to spot up Shooter to you know Robin to Lucas Batman um six Man of the Year type of Candidate back when uh I was with the Net the first time with DLo um so really It's it's a situation where as injuries Happen as different things go on I just Have to be able to step into a variety Of different roles and you know be very Comfortable and and and able to to do That so that's my personal Outlook and Good luck to you in crypto and with the NBA Spencer Dy starting point guard with Brooklyn Nets and solo Cay both Co-founders of caxy thank you both very Much for joining us right here in New York City from the NASDAQ thank you Thank You
