There is real validity in cryptocurrency right now: Dan Ciporin


MARIA: WELCOME BACK. FINANCIAL AND TECHNOLOGY SECTOR REPORT FOR TURNING AFTER THE CLOSE. IN CONSUMER FINANCE. OTHER BIG NAMES INCLUDE PAYPAL. RIGHT NOW IS DAN SEPARATING. GOOD TO SEE YOU. IT’S INTERESTING TO LOOK AT BECAUSE RIGHT NOW YOU SEE THE FINANCIAL SERVICE COMPANIES ACQUIRED TECHNOLOGY SO THEY CAN HAVE BETTER OFFERINGS FOR THE CUSTOMER. WHAT’S GOING ON WITH THAT?>>FUNDAMENTALLY BANKS HAVE A HARD TIME CATERING TO MILLENNIAL AND THAT LACK OF A USER EXPERIENCE THAT NO ONE ELSE REALLY LIKING AND ENJOY AND ARE USED TO LEAD TO A BIG OPENING FOR SYNTAX. IN ADDITION TO THESE USER EXPERIENCE, RIGHT NOW THE LAST 10 YEARS THE DEMOCRATIZATION OF ASSETS THAT IS GOING ON ENABLING RETAIL CONSUMERS TO ACTUALLY ACCESS INVESTMENT THEY HAVEN’T BEEN ABLE TO ACCESS PREVIOUSLY. STARTED 10 YEARS AGO WITH LENDING CLUB. YOU WERE ABLE TO NOW INVEST DIRECTLY WITH CONSUMER LOANS COULD NOT BE A LARGE BANK WITH A CREDIT PROGRAM BOOKLET IN 1000, 10,000 MILLIONS DIRECTLY ON THE PLATFORM WITHOUT ANY INTERMEDIARY. YOU SEE THE SAME THING HAPPENED IN REAL ESTATE WITH COMPANIES LIKE BLUESTOCKING REALTY MOGUL. THE SAME THING HAPPENED IN PRIVATE HIGH-GROWTH COMPANIES WITH COMPANIES LIKE CIRCLE UP AN ANGEL LIST. SO THESE ARE ALL TRENDS THAT ARE REALLY BASED ON DEMOCRATIZATION OF ASSETS. AND NOW YOU HAVE SOMETHING BRAND-NEW COMING INTO PLACE WHERE YOU HAVE BRAND-NEW ASSETS, WHICH ARE CRYPTO ASSETS AND THAT IS SOMETHING BANKS DON’T HAVE ANY IDEA WHAT TO DO WITH. SO I THINK THAT REALLY HAS A TREMENDOUS OPENING TO ENABLE THEM TO ADDRESS THIS SEGMENT OF THE MARKET. I THINK IT WILL LEAD FUNDAMENTALLY TO ACQUISITIONS. SIMILAR TO WHAT IS HAPPENING IN THE PHARMACEUTICAL INDUSTRY WHERE YOU HAVE LOTS OF FARM OF. INITIALLY PUT IN LOTS OF MONEY IN R&D AND NOT TAKEN ALL THE MONEY AND BUYING COMPANIES TO GET INNOVATION INTO THE PIPELINE COULD SOMETHING SIMILAR WILL HAPPEN IN FINANCIAL SERVICES AS WELL.>>IT’S BEEN RUN UP IN THE OVERALL STOCK MARKET. FINANCE CAME IN RELATIVELY CHEAP AFTER THE FINANCIAL CRISIS. WHERE ARE WE RIGHT NOW IN TERMS OF HOW OVERPRICED OR UNDERPRICED FINANCIAL COMPANIES ARE.>>YOU KNOW, A LOT OF IT DEPENDS ON THE HYPE CYCLE IF YOU WILL. DROP ROCKS ANNOUNCED THEY WERE DOING AN IPO. THEY BEEN AROUND FOR A WHILE. THERE’S MONEY IN THE $10 BILLION VALUATION PRIVATELY. HE WILL BE INTERESTING TO SEE WHETHER THEY ACHIEVE THAT OR NOT. A LOT OF OTHER COMPANIES ARE GOING PUBLIC NOW BETTER AT LOWER VALUATIONS THAT ARE DOING REALLY WELL, WHICH ENABLES BANKS TO ESSENTIALLY OPERATE AS GOOGLE. THEY CAN PLACE ADVERTISEMENTS RIGHT NEXT TO YOUR DEBIT CARD STATEMENT. IF YOU BUY BURGER KING YOU COULD HAVE A PROMOTION FOR DONALD’S RIGHT NEXT TO IT. THAT COMPANY WENT PUBLIC LAST MONTH OF 50%. THESE ARE THE KINDS OF COMPANIES, NOT TYPES, THE REAL VALUE OF A REAL TRANSFORMATION TAKING PLACE THAT ARE SEEING REAL SIGNIFICANT MOMENTUM IN THE STOCK MARKET.>>LET’S TALK ABOUT GAMBLING. THE CRYPTO CURRENCIES. THE LARGER FINANCIAL INSTITUTIONS ARE MOVING QUICKLY BECAUSE THEY REALIZE THE RISK. I’M LOOKING AT SQUARE, FOR EXAMPLE IN THREE SQUARE PAY YOU CAN ESSENTIALLY GAMBLE IN FRACTIONAL SHARES ENDED IN YOUR ADVERTISEMENTS ACROSS THOSE MILLENNIAL’S WITHOUT EXPLAINING THE RISK AND REALLY PITCHING CRYPTO CURRENCIES NOT AS A CURRENT NEED, BUT AS A SCRATCH TICKET IF YOU WILL. THAT IS WHAT IT SOUNDS LIKE A MAN OLD ENOUGH TO REMEMBER THE OTHER BUBBLES. I THINK THERE IS A REAL ISSUE THERE. WE ARE IN THE WILD WEST RIGHT NOW. THERE’S GOING TO BE LOTS OF CHANGES THAT OCCURRED REGULATORY ONES OVER TIME. I THINK THAT MANY OF THESE ICUS ARE LITERALLY NOTHING BUT SCAMS. HAVING SAID THAT, I THINK THERE IS REAL VALIDITY TO WHAT IS GOING ON IN CRYPTO CURRENT DAY RIGHT NOW. A LOT OF MILLENNIAL’S BELIEVE IN MATH, NOT GOVERNMENT AND THEY WANT CURRENCY THAT SPEAKS TO MATHEMATICAL COMPUTATION, ZUCKERBERG AT FIAT.>>ARE THEY GOING TO BE BUYING CRYPTO COMPANIES ARE ISSUING THEIR OWN. WHAT ARE THEY DUE TO CATCH THE WAVE.>>A LOT OF IT DEPENDS ON WHAT HAPPENS AT THE REGULATORY APPARATUS AROUND CRYPTO IN WHAT IS GOING TO BE IMPLEMENTED. I THINK BANKS ARE GOING TO BE VERY, VERY CAREFUL AND WET SURROUNDS IT. WHAT IS LOUD, WHAT IS SENT.>>THIS IS JAY POWELL’S TESTIMONY.>>IS THERE SOMETHING YOU ARE DOING.>>DAY AFTER CRYPTO CURRENT IN MY UNDERSTANDING IS THEY HAD LITERALLY MILLIONS AND MILLIONS OF NEW APPLICATIONS OVER THE LAST SIX MONTHS. MANY MORE THAN SCHWAB EVER HAD, FOR EXAMPLE. OVER A SIMILAR PERIOD OF TIME. SENDING PEOPLE WANT TO INVEST IN WITCHES ASSOCIATED WITH IT. THEY WANT TO COME OUT OF THE CLEAR ABOUT WHAT’S ALLOWED AND WHAT IS NOT. YOU NEED TO BE VERY CLEAR. ALL OF THOSE THINGS NEED TO HAPPEN. I DO THINK THERE’S A BIT OF A BUBBLE HERE. I SAID A FEW MONTHS AGO. AND I THINK THERE’S SOME OF THAT — IT’S COME BACK DOWN TO 10,000, RIGHT?>>I THINK IT’S VERY HARD TO SAY. IT WILL BE A VERY SIGNIFICANT DOWNDRAFT, SIMILAR TO WHAT HAPPENED IN THE 2000 ERA FOR INTERNET THINGS WENT DOWN VERY FAR, PEOPLE CONSIDERED, CONSUMER INTERNET, NOTHING BUT TOXIC WASTE AND CRYPTO COIN IS A REVOLUTION.

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