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00:00I WANT TO BRING IN THE HEAD OF MARKET INSIGHTS AT GENESIS TRADING, A CRYPTOCURRENCY PRIME BROKER. WHAT DO YOU THINK, $8,000? > > BETWEEN 8 AND 400 IS A WIDE RANGE. PREDICT WITH WIDE RANGES. I HAVE TO SAY THAT MY OPINION IS NOT THAT OF MY EMPLOYER. HE WAS ONE OF THE EARLY INSTITUTIONAL INVESTORS. HE DID DO HIS HOMEWORK BACK IN THE DAY. LATER ON IN THIS INTERVIEW, HE DID SAY HIS PREDICTIONS OF $8,000 WAS BASED ON TECHNICAL BECAUSE THERE IS NOTHING ELSE. AND THAT IS OVERLOOKING THE GROWING ADOPTIONS AND THE FIXED SUPPLY. THAT NO MATTER HOW HIGH THE BITCOIN PRICE OR HOW HIGH THE DEMAND, THE SUPPLY REMAINS FIXED. THAT IS A FUNDAMENTAL FEATURE. BITCOIN ' S DEMAND COULD MULTIPLY BY 1000 TIMES, THE SUPPLY WILL REMAIN FIXED. THAT IS A PRETTY COMPELLING INVESTMENT CASE RIGHT THERE. EMILY: I WANT TO ASK YOU ABOUT SOME OF THE WRECKAGE IN THE WAKE OF THIS DISASTER. THEY HAVE A NEW PLAN THAT HAS BEEN APPROVED TO SPLIT THE BLOCKCHAIN. WHAT DO YOU MAKE OF THIS AS A PATH FORWARD? NOELLE: YOU CAN IMAGINE CRYPTO TWITTER TODAY IS HAVING A FIELD DAY WITH THIS. I MUST SAY ANYTHING THAT GIVES THOSE THAT LOST A LOT OF MONEY A CHANCE TO GET SOME OF THAT MONEY BACK SHOULD BE ENTERTAINED. THAT WOULD BE A VERY GOOD DEVELOP. THAT SAID, A LOT OF TRUST NEEDS TO BE RECOVERED, WHICH IS QUITE IRONIC THAT TRUST IS STILL SUCH A FIRM COMPONENT OF A SYSTEM THAT WAS DESIGNED TO NOT NEED CENTRALIZED TRUST. IT SHOWS THAT WE CAN GET RID OF THE TRUST COMPONENT AFTER ALL. EMILY: I WONDER WHAT THE PATH FORWARD IS FOR REGULATORS. WE KNOW THE HOUSE COMMITTEE ON FINANCIAL SERVICES WILL BE TALKING ABOUT DIGITAL ASSETS. FOR EXAMPLE, COULD FED CENTRAL BANK DIGITAL DOLLAR SO TO SPEAK BE POSSIBLE? NOELLE: CERTAINLYIT ' S -- IT ' S CERTAINLY POSSIBLE AND IN SOME PARTS OF THE WORLD WE ARE ALREADY SEEING CENTRAL BANK DIGITAL CURRENCY. WE WILL SEE THEM WITHIN FIVE YEARS BE QUITE COMMONPLACE. THE FORM THIS WILL TAKE IS BEING HOTLY DEBATED. THIS HAS MANY POTENTIAL EFFICIENCY FEATURES, ALSO SOME RISKS. WHAT IS MOST INTERESTING, GOING BACK TO WHAT YOU MENTIONED ABOUT THE TERRA IMPLOSION, THIS WILL ACCELERATE REGULATORY CLARITY, NOT JUST ABOUT CRYPTO ASSETS, BUT STABLECOINS, THEIR POTENTIAL USE IN GLOBAL TRADE, THEIR POTENTIAL CONVENIENCE FOR CONSUMER SERVICES. IT ' S A FASCINATING FIELD. STANDING IN THE MIDDLE OF IT, WATCHING WHAT IS ARGUABLY ONE OF THE MOST PROFOUND TRANSFORMATIONS OF HOW WE TRANSACT WITH EACH OTHER, AS ENTITIES AND INDIVIDUALS, AS SOVEREIGNS, EVEN, IT ' S AN EXCITING TIME TO BE LOOKING AT THIS SPACE. EMILY: SOMEONE WHO IS OPTIMISTIC IS ANDREESSEN HOROWITZ. THEY ANNOUNCED A RECORD $4.5 BILLION CRYPTO FUND. WHAT DO YOU MAKE OF THE INFLUENCE ANDREESSEN HOROWITZ HAS ON THE CRYPTO ECOSYSTEM MORE BROADLY? THEY HAVE QUITE A BIT OF MONEY AT STAKE. NOELLE: THEY HAVE A LOT OF MONEY AND THAT IS THEIR MAIN INFLUENCE. WITH A AND ANNOUNCED TODAY IS A REMINDER OF HOW MUCH MONEY IS STILL SITTING ON THE SIDELINES. VALUATIONS HAVE BEEN VERY HIGH. HIRING HAS BEEN VERY ACCELERATED. I KNOW OF MANY INVESTORS WHO HAVE BEEN SITTING AT OUT BECAUSE THEY THINK THE VALUATIONS ARE CRAZY. I KNOW MANY ENTREPRENEURS WHO WALKED OUT OF AN ACTUAL PITCH MEETINGS -- OF INITIAL PITCH MEETINGS. THAT IS KIND OF A CRAZY TIME, NOT BECAUSE OF PRICE, UNLIKE OTHER FROTHY MARKETS. WHAT HAPPENED IN THE CRASH THE WEEK OF MAY 11 IS A JAR OF COLD WATER ON THE ENTIRE SYSTEM. THE VAST AMOUNT OF MONEY THAT HAS BEEN SITTING ON THE SIDELINES, A LOT OF IT COMING FROM INCREASE IN HOMELESS -- FROM ANDREASEN HOROWITZ, WILL TAKE TIME. WE HAVE TO DO DUE DILIGENCE AND BE CAREFUL. WE DO NEED TO BE CAREFUL AND THINK THINGS THROUGH. THE REGULATORS NO DOUBT WILL BE TAKING A MORE CAREFUL LOOK AT SOME OF THE STABLECOINS AND OTHER PROJECTS BECAUSE PROTECTION IS PART OF THEIR ROLE. NOW THAT THE FROTH SEEMS TO HAVE A SLIGHTLY DIFFERENT TONE, I EXPECT US TO SEE DIFFERENT KINDS OF INVESTMENT DEALS. THERE IS A LOT OF MONEY OUT THERE, A LOT OF BELIEF AND THE POTENTIAL OF THE CRYPTO INDUSTRY TO TRANSFORM NOT JUST FINANCE, BUT MANY ASPECTS OF OUR CULTURE. EMILY: I THINK ABOUT A COMPANY LIKE MICROSTRATEGY, HOW DO YOU THINK THESE MASSIVE PRICE FLUCTUATIONS ARE GOING TO IMPACT INSTITUTIONAL SENTIMENT? NOELLE: ONE THING THAT NEEDS TO CHANGE IS THE ACCOUNTING PRINCIPLES FOR COMPANIES LIKE MICROSTRATEGY. INSTITUTIONAL STRATEGY HAS TAKEN A HIT, BUT NOT GONE AWAY. WE ARE STILL TALKING TO THEM.

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Terra Blockchain to Split, Abandon Collapsed UST Stablecoin

Genesis Trading Head of Market Insights Noelle Acheson joins Emily Chang to discuss how the Terra implosion, and Terra's new blockchain without its algorithmic stablecoin, will impact the space. Also, her take on crypto investing trends, crypto regulation, and the potential for a federal central bank digital dollar. (Source: Bloomberg)

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