caroline: from bloomberg's world headquarters in new york, i am caroline hyde. joe: i am joe weisenthal. caroline: coming off of verizon terms of the nasdaq, the underperformer. money moving out of copper and into oil. all eyes on that yield head of the fed. it was not only a slightly down day for stocks. crypto erasing gains. the fed is set to make a key

rate decision tomorrow in decision builds around what the global central bank and global central banks will do about cryptocurrency. we will speak to -- investment interest and other assets. full talk to another executive raising new money for a decentralized exchange. before we start going deep into crypto, let's go deep into what the fed is going to do tomorrow. joe: currency run by a central bank. we do have that fed decision coming up tomorrow. no one expects any change in the policy rate, any taper talk or anything, but something could happen with when they project lift off. as you can see, much like the other central banks, pretty much at rock bottom rates. for more, let's welcome bloomberg news economics and monetary policy reporter matt bosler, joining us today from

our washington bureau. what is the most likely avenue via which the fed could make news tomorrow? matt: i think the biggest thing has to be the dot plot. will get a new projection on interest rates over the next few years. we have not heard from them since march. last time we got projections in march, basically they showed that the center of the committee did not show any rate increases as being appropriate through the end of 2023. now, the consensus expectation is over the past three months, the center of the committee will shift into a space where they do think rate increases will be appropriate by the end of 2023. you can see the dot plot here. another interesting thing to look at, those 2022 dots. four fed official on the committee thought it would be appropriate to begin raising interest rates by next year. that is kind of what the markets are priced for right now.

we will be watching to see if any additional fed officials join them in that 2022 camp, which will give us an idea of the underlying direction. caroline: for now, it seems fed chair powell is really focused on inclusion in the employment market and the ongoing narrative that inflation is transitory. is there anything in commodity, housing prices, any sort of data that might be pushing back on that view that it is transitory? matt: the one big thing that would suggest some people that maybe it won't be transitory, we are getting higher readings on inflation expectations, particularly in some of the consumer surveys. there is basically two ways to interpret some of the hotter than expected inflation data we have been getting. one would be to say that, given that it is hotter than expected now, we are pulling some of that

demand forward, and we will have effects on the downside. therefore, inflation the year should be lower given that we have higher inflation now. another way, saying that inflation expectations are going up. that drives underlying inflation. to the extent there is underlying inflation now, it is pushing up these expectations. as you can see in the chart here, that might lead to higher inflation down the road. there are really two ways they could go. i will also be interesting to see which narrative they are leaning into when we get inflation projections for next year and beyond tomorrow at 2:00 p.m. along with the dots. joe: how much consensus is there among politicians right now and how much risk is there that the with these headline inflation numbers hotter than expected, that maybe some good start to

peel off even more in terms of seeing it through to the goal set out by chairman powell? matt: obviously, we have already been seeing a little bit of that in the past few weeks in terms of some of the fed speak. dallas fed president robert kaplan, philly fed president parker, talking about that they want to get this conversation about tapering asset purchases sooner than later. that is another thing we will be listening for and the press conference, any hint as to whether that discussion began today. the other interesting thing to keep in mind is that there seems to be pretty widespread consensus even in the hawkish wing of the committee that some of the inflation we are seeing now is very much transitory, not expected to last. that is another interesting possibility for the statement tomorrow at 2:00 p.m. some fed watchers have expected

that right now, they do have a record of inflation being transitory. they could double down and had a look more color to reinforce -- and add a little more color to reinforce that message that inflation is here to stay. caroline: we will take a drink every time they say transitory. we thank you. for more on the fed rate decision, tune in tomorrow for our special programming. coming up, the rise of alternative assets. trading cards, sneakers, markets. what is driving the demand? we discussed. that is next. this is bloomberg. ♪

caroline: last friday, we discussed the renewed interest in trading cards. a big trend in the 90's, it faded out over time as the market cap saturated. now we are seeing the return to some really big sales. joe: lots of people probably had their cards thrown away because no one talked about them for years. now, prices for everything are soaring. a kobe bryant rookie card sold recently for $1.75 million. caroline: it is kind of like in 2013, you bought some crypto, lost your password. joe: where is all those dogecoi n you mind? joining us, gary vaynerchuk, creator of a new nft project. i associate you with all things collectible. what is it about this moment

that people want tangible, physical things, even digital things whether it is an fts are trading cards? they want something they can hold. gary: it is very interesting. the sports card thing was happening pre-covid, pre kind of the reddit thing. the sneaker flipping game was changing and i think 1986-1991 was the big error of sports cards in american history. a lot of those 15, 16-year-old started having 7, 8, 9-year-old, so you had that classic turn you kind of see in the toy industry. i think the broader question you are asking, investing has become a cultural, pop cultural phenomenon. if you go to tiktok and look at 15, 16, 17-year-olds, they think of themselves as investors.

whether that is the robinhood mentality, sports cars, and fts, public stocks. you have an entire generation who think of themselves as entrepreneurs, investors, or influencers who are going to make money doing marketing. that is very different than what you are i grew up with. caroline: it has been allowed because the cost of getting into the market has been lowered through innovation, the likes of robinhood, or getting into crypto without being somebody who earns a certain amount of money. how much do the community you speak to, this tiktok community in particular, get frustrated from the patronization coming from all the people, frankly, we talked to here on bloomberg tv, older style investors who say, cryptocurrencies, are they mad? gary: we all know this, this is how society works. it used to be with like bands,

clubs and restaurants. there has never been a time that 15-25-year-olds are interested in supporting what their parents are. to your point, when individuals come on the show and talk down and dismiss something that is an incredible reality for so many of those people, it only fuels the fire. the reality, and we have seen this with some of the stock prices, things that you know everybody said months ago would be a one week, two-day, four-day phenomenon. i talked to a lot of my 40, 50, 60, 70-year-old is this friend. i remind them that the market is the market, and the market is evolving. things are changing. fundamentals still matter. what i will deftly say is alternative investing is more interesting for a lot of people

to hold a michael jordan rookie card as an investment than, let's say, 12,000 shares of a company. culturally, visually on social media, you get double value. not only the intrinsic value, the social currency that was along with owning a rolex or a mercedes. in my opinion, it speaks to incredible bullish opportunities. joe: you mentioned something about sneakers. people have been into sneakers for a while. now we have these sneaker marketplaces where one can track the place -- track the price of a given jordan the way you can track a stock. how much does that make collecting things more fun? not only do you have a thing but it is fun to watch the line go up and down. a much does that sort of change

the collecting game to see these live markets in action? gary: it changed everything. they used to be stuff in malls, convention centers, a sneaker, sports card, comic book show would be at a firehouse in the suburbs. now it is at scale. it is everywhere. to your point, i am looking at bloomberg and, again, i am trying to remind people, holding real estate for passive income, holding a stock, those are great business decisions. those are our grandparents and even contemporaries business decisions. now that you can do that for sports cards, annexed -- nft 's, all of these things, and you can flex that on social media. i think the madison avenue crowd is underestimating the thirst

humans have always had for communicating what they hold. when you buy a brand-new mercedes, that depreciates in value as soon it leaves the lot. you bought it many times for social signaling. the fact that we can invest in these assets and make money but also socially signal as we hold them up is a human psychology that is grossly being misunderstood by the black-and-white decision-makers who watch the show. caroline: i am interested, quite often in the past, we have held up -- my generation -- they don't want to buy houses, own things. they are not interested in purchasing stuff, they want to rent it all. he reaches certain age, you have a kid, certainly you want to have a house, you don't want to just to rent things.

is this an element that this will be a fad, or is this that it will really change the way investment happens? gary: i think your storytelling is right. but i want to remind everyone watching that there has always been an alternative class. it is called art of it is called antiques. if you look back at the data, the amount of money spent on these things are quite real. and meaningful. the difference is that there is no 26-year-old on earth who wants to go to a sotheby's auction house and by a piece of china from europe in the 1800s. they want to buy a rookie card, a pikachu, a rare pair of jordans. caroline: gary, so interesting as always. gary vaynerchuk, we thank you so much.

meanwhile, we are going to be talking de-fi in a moment. let's get back to good old finance. m&a, whether we talk spac's, meme stocks, m&a is still pretty hot. joe: absolutely. coming up, we discuss how the company plans to use the capital with the founder and ceo. that is next. ♪

caroline: we were just talking about the social currency that comes with many young investors who want assets like and fts, crypto -- like nft's, crypto. a fund to back this interesting

assets but not going to a centralized fund. joe: dydx, a decentralized crypto derivatives trading platform, i think it was $65 million in a series c led by paradigm, a bunch of different ones. joining us with more, antonio juliano, dydx founder and ceo. we have been tracking the rise of these so-called decentralized crypto exchanges. antonio: i think our biggest differentiator at dydx in the decentralized exchange space is we are focused on more advanced types of products like margin trading and derivatives. this is a really new market for defi or decentralized finance, and we think we are kind of the leader in decentralized derivatives.

caroline: who is coming to trade with you? is it singular investors, traders, who have their heads around all of these? or is it more institutional types? antonio: it is some of both. there are a lot of institutional players who are crypto first order crypto native. a lot of them are trading on dydx already. there are a lot of investors based overseas data trade derivative products in a big way. i think crypto exchanges are offering to a blend of those type of customers and dydx is the same. joe: is it completely unchanged in dydx? antonio: it is a bit of both. dydx is known as a hybrid exchange. we have some centralized and some decentralized components. dydx is a smart contract based exchange. smart contract is a fancy word for programs that run directly

on the blockchain. dydx also operates a more traditional style order book and matching engine. the maximum amount of performance, and maximum amount of liquidity in the market that we do offer. caroline: we are about to see the fed give its rates focus tomorrow. there has been a lot of talk about decentralized currencies, whether they can indeed have some sort of stable coin, but also looking at regulation as well. are you having conversations? are you getting them to understand what the points of weakness are if there are any points of weakness? and where do you see the evolution going? antonio: absolutely. we have been proactive in talking with regulators at dydx, how have had conversations with kind of the main derivatives regulator in the unites states, conversations with other government agencies as well. we really think that defi can be

really positive for a lot of the objectives that regulators have. one of the advantages is trading on a decentralized exchange, these are run-on programs that are run directly on the blockchain. the blockchain has view access from everyone. everyone can look into the health of these systems, the collateralization, and especially for more advanced products like derivatives, you can have a lot of transparency in terms of looking at the code instead of some legal contract in terms of the types of product. joe: obviously, you can look at the code and see, ok, transparent, etc.. nonetheless, it is clear that one can go on various decentralized crypto platforms and trade things that certainly

look equity-like. a lot of so-called governance tokens have properties that look like equities. a lot of things that trade on these exchanges look like synthetic derivatives or other kinds of derivatives that are unregistered. is this something you think will be looming for the defi space more generally? on dydx, there are certain products that are off-limits for u.s. traders. you are obviously trying to abide by regulations. antonio: i think so. i think regulators are also being proactive about it, putting forth some good guidance. i think a lot of the financial regulation really needs to be rethought for the decentralized exchange space. not that we should just throw it out the window. all of the priorities regulators are looking at, i think they are

super valid. as you say, we do not offer some products to u.s. customers for that reason. i think it is important, the melding of some of this new technology on decentralized exchanges. we are excited to really be on the forefront of that at dydx. caroline: congratulations on the new round. antonio juliano, dydx founder and ceo. joe, what is keeping you up at night? what are you looking at? is it the fed dot plot you will be perusing? joe: this will be boring, no nft's today. i don't own any nft's. oil. interesting signals in the commodity space. copper really got hit today. lumber, grains. caroline: inflation? what inflation?

joe: it is over. that is april. we have to talk about something new. caroline: that does it for "what'd you miss?" joe: "bloomberg technology" is next. this is bloomberg. ♪

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>> from the heart of where innovation, money, and power collide in silicon valley and beyond. this is "bloomberg technology" with emily chang. emily: the antitrust drumbeat continues. apple and the hot seat on the hill. lawmakers have their sights set on amazon,