you want another question? everybody else got one or two or three. reporter: tell xi jinping personally that you're committed to defending taiwan. president biden: i am going to pres. biden: i'm going to have that conversation with him. reporter: do you think elon musk is a threat to national security? and do you think the u.s. and the tools you have investigate the saudis? pres. biden: [laughter] i think that elon musk's cooperation and/or technical relationships with other

countries is worthy of being looked at. whether or not he is doing anything inappropriate, i'm not suggesting that. i'm suggesting that it's worth being looked at. but that is all i will say. there's a lot of ways. all right, kristen welker. reporter: thank you so much, mr. president. i appreciate it. i want to follow up with you on working with republicans. leader mccarthy again suggested that he is not prepared to write what he is called--he has called a blank check to ukraine, and yet you express optimism that funding for ukraine would continue, that policies toward ukraine would continue. why should the people of ukraine

in this country--and this country have confidence in that given the comments by leader mccarthy? and just a follow-up that you don't need to do anything to really if the republicans control the house, donee need to recalibrate to some extent to work across the aisle with republicans in house? pres. biden: i don't need to change any of the policies i passed. that is what they want to go after. i have a civil proposition, i have a pen--simple proposition, i have a pen that i can veto. we are going to continue to fund the infrastructure bill, or continue to fund the environment, etc. i hope -- i think there is a growing pressure on the part of the american people expecting both parties and all elements of both parties to work out their

substantive differences and not just "i'm not going to do that because it would benefit that party," just making it personal. so i -- and you know, it remains to be seen with the makeup of the house will be--what the makeup of the house will be. but i'm hopeful that kevin and i can work out modus vivendi of how we will proceed with one another. reporter: so, will aid to ukraine continue interrupted? pres. biden: that is my expectation. and by the way, we have not given ukraine a blank check. there is a lot of things ukraine once we get into --we get into. i was asked if we would provide american aircraft to guarantee the skies over ukraine. i said no, we are not when you do that. we are not going to get into a third world war taking on

russian aircraft and directly engage. but when we provide them with all of the rational ability to defend themselves, yes. hi mars come there is two kinds -- in the average person's parlance, rockets you can drop in those, when they go 600 miles and one that goes 160 miles. i'm not looking for them to start bombing russian territory. we want to make sure that there is a relationship that they are able to defend themselves and to on what is purely the ugliest aggression that has occurred since world war ii on a massive scale on the part of putin within ukraine. there is so much at stake. i would be surprised if leader mccarthy even has a majority of his republican colleagues who say they are not going to find the -- fund the legitimate

defensive needs of ukraine. reporter: obviously a lot of attention on 2024 now that the votes have been cast in the midterms. two thirds of americans in exit polls say they don't think you should run for reelection. what is your message to them, and how does that factor into your final decision about whether or not to run for reelection? pres. biden: it doesn't. reporter: what is your message to them? pres. biden: watch me. [laughter] reporter: ok, one more. very quickly. we saw governor ron desantis with a resounding victory in florida last night. who do you think would be the tougher competitor, ron desantis or former president trump, and how was that factor into your decision? pres. biden: it will be fun watching them take on each other. [laughter] all right, david sanger. reporter: thank you, mr. president. i also have a question about

china. but before i do, i want to follow up on something you said earlier. you said it remains to be seen whether the ukraine government is prepared to compromise with russia. previously you have told us the only thing for the russians to do is get completely out of ukraine, go back to the lines that existed prior to february 24. are you suggesting that the word -- with the word "compromise" that there is room for territorial compromise? pres. biden: no, i'm not saying that. that is up to the ukrainians. nothing about ukraine without ukraine. reporter: [indiscernible] pres. biden: i didn't have any in mind. u.s. a question, whether or not what would happen -- i think the context is that whether or not they are pulling back from fallujah -- i mean, from the -- kherson, the city of kherson,

and coming back to the eastern side of the river, the russian forces. i said what is going to happen is they will lick their wounds and decide what they will do over the winter and whether or not they are going to compromise. that is what is going to happen, whether or not -- i don't know what they are going to do. i know one thing, we are not going to tell them what they have to do. reporter: -- meeting with president xi. at this point the chinese government, by the estimate of the pentagon, is getting ready to bring their force of nuclear weapons up to over 1000 weapons, significant increase from what they have had for many decades. you have seen the threats from president putin about the use -- pres. biden: remember when you went after me when i said that was real? reporter: and what in your view happened? do you think he backed off? pres. biden:no, i'm just saying, i find it interesting that biden is being extremist, and it turns

out you are writing about it now. kind of fascinating. reporter: so my question is do you think they are putting together an alliance with the chinese and the russians? and do you believe you need to begin speaking with president xi about some form of arms-control if he is going to get up to a level of weapons similar to what the united states and russia have right now? pres. biden: no nds. n-- no and yes. no i don't think there has for putin. nothing there looking at that-- know, i don't think there's a lot of respect china has for putin. i don't think they're looking at that particular alliance. i think it remains to be seen if xi jinping has backed off of his initial judgment that he wanted china to have the most powerful military in the world, as well as the largest economy.

but he is a long way from both. but i think talking about nuclear weapons and location, a number of them, access is important to discuss. thank you also very, very much--thank you all so very, very much. >> welcome to "bloomberg asia." you have been listening to president joe biden speak after the midterm elections, which he called a good day for american democracy. he also stated his intention to run again for president in 2024. he addressed china, saying he will discuss taiwan and trade with president xi jinping, although he is not willing to make fundamental concessions on taiwan. on the economy, he was optimistic, saying they are not anywhere near a recession, saying that although he cannot guarantee they will be able to get rid of inflation, he is optimistic. >> let's bring in the global

head of public policy and head of u.s. government affairs at invesco. thank you for your patience staying with us as the president wrapped up those comments in the question-and-answer session. let's start off with the results. does the government have a better chance of getting its economic and social agendas through, not to mention foreign affairs, given the result that was mispredicted again by the polls? >> great to be with you. this reaffirms that the only poll that counts is the one on election day. a lot of polling showed a big red wave from republicans and it didn't materialize. issues like abortion and concerns about democracy played a much bigger role than we expected. i think, look, the president when he was talking you could tell he was buoyed by the results and has some confidence going into this next meeting

over in your world. i was just over in asia and australia and in tokyo and singapore, and i can tell you that with this election, i think it is going to reinforce the strength of american democracy. it is going to bode well for the united states being able to continue to be a leader in the world. >> the president also said that he would run again in 2024. we know that the republican vote is likely to come between donald trump and desantis. what does this contact look like--what is this contest look like to you? for both parties are these the best options? andy: i think it is a mixed bag. my default when people asked me who is going to run in 2024, and i know it is early, is the default candidates are president biden and donald j. trump, because of they decide to run, it will get the nominations for

their respective parties based on the bowling. -- based on the polling. the question is does biden firm up his stance and run, and trump says he will announce in the next few weeks, and he will have some kind of competition from ron desantis, but none of the polling i've seen shows him of able to take on trump in a republican primary. that is where i stand today. we will see what happens between now and 2024. it is a long way away. other rents could interfere.-- other events could interfere. if it doesn't stack up biden versus trump--if it does stack up biden versus trump, biden would be in the lead. >> not to mention the candidates endorsed by president trump felt the democrats, including fetterman--fell to democrats, including fetterman in pennsylvania. what does this tell us about the momentum of the former president? andy: the big loser of the night was donald j. trump, both because he put forth candidates

who lost many of the races he put them for, and he himself in campaigning ended up hurting candidates as opposed to helping close of the thing with trump is he helps in campaigns for you and he can bring people on the ballot. he could campaign but not bring his own people out because they were only concerned about him. he motivated the opposition to come outcome which led to a lot of the democratic victories. >> what is a tell you that voters across the country rejected efforts to codify restrictions against abortion rights? is this telling you the broader picture in the united states, where we have more moderate voters, whether they are democrats or republicans? andy: i think that is a great point. we saw some signals of this early on this year irght after -- right after the dobbs decision to overturn roe v. wade.

then the polling waned. but if you look at exit polls, yes, inflation within the bone issue, but right behind it the most important issue was abortion. even though the polling was waning, i was telling people that this is the first post-d obbs decision election. there were a lot of voters who might've been telling quote--who might not have been telling pollsters but were intent to go to the polls to maintain their rights. >> president biden during the press conference talking about taiwan and trade with president xi jinping, unwilling to make concessions on the big points, and also aided to ukraine. when you have a narrowly divided government like we are about to see in the u.s., how does that bode for foreign policy, especially on issues like china and 80 ukraine -- aid to ukraine? andy: --he is still the foreign

policy country -- sorry, can you hear me? >> andy it seems we are losing you a little bit. head of u.s. government affairs at invesco, and his thoughts on the latest midterm elections and what they mean for u.s. government and foreign policy. let's turn to the other big story of the date, all to do with cryptocurrency and binance walking away from the beleaguered crypto exchange ftx.com, leaving the fate of its main rival uncertain. investors have been told ftx would need to do for bankruptcy without a cash injection. let's get the latest from bloomberg's tech encryptor reporter hannah miller. what are we understand at this point was the reason binance tried to bailout and walked away from the deal? >> this is a developing story, so things are coming very quickly here. we do know that binance has

walked away from the deal, citing legal concerns over use of customer funds by ftx. we also know that in talking with investors, the ceo is looking for a capital injection for ftx. if he doesn't get that, it looks like it will be bankruptcy for the company. >> we also seeing -- we are also seeing the shockwaves of this crisis. salon also getting caught up in the volatility. hannah: yes, it makes sense it is being affected here. ftx is a major backer. they have been in support of this blockchain from the very beginning. seeing issues at ftx has definitely spilled over to solana. we know that ftx's reach is incredibly wide in the crypto

industry, so a bankruptcy for ftx would have a major ripple effect that would impact multiple major players in the industry. >> every hurdle and bump along the way has a lot of crypto doubters questioning what does this mean for the broader integration of the asset class into the mainstream adoption. is this an existential crisis? hannah: 100%. ftx, they have been part of the mainstream conversation around crypto. we have seen his face everywhere. he is very much a public figure in the industry. this really spectacular downfall really will shake the confidence from both the mainstream and regulators in crypto. >> hannah miller with the ensuing drama around the ftx and binance.

u.s. viewers can get more. you will be joining "bloomberg technology" in progress, but we have plenty more on "daybreak australia" as well. this is bloomberg. ♪ >> if an individual company shows that it can grow 3x, 5x, 100x over several years, that will out run the worst even a great depression if you can do it. this is propelled by technology. things like generative ai are blowing people's minds, and i think the fruit of the next great companies, it comes from that technology and from the builders who are being unlocked right now. emily: well, speaking of building and disrupting, elon

musk taking over twitter. you are a twitter power user. i'm curious what you think of what he has done so far on what the plan seems to be, and maybe if as a power user you have any advice for elon musk. garry: that is a great question. i love twitter, and i think the number one thing is i am also feeling for my friends over there who are sleeping under their desks working through it. all i can say is take care of your people and take care of us as users. i know that he is much maligned by certain people right now, but i am rooting for them, i'm rooting for twitter is a company and as a user. emily: i spoke with representative ro khanna earlier and you will hear part of the conversation in a moment, but he called for more regulation of big tech, which may be more unlikely depending on how the votes shake out. i know you are heading to the white house with one of your

portfolio companies. what you think the role of washington should be in the next generation of tech innovation, and perhaps not repeating some of the mistakes or lack of action that we have seen in the past? garry: yeah, i'm heading to d.c. with one of our initialized companies that is crating a universal chat app. one of the things we want to do is take away the green bubble, blue bubble problem. that is a silly example in one sense, but it is actually emblematic of a much bigger problem, and those are things we hope to solve with the innovation and choice act online and the open act markets act, which, frankly, we hope senator schumer will actually bring to the floor. he has claimed that the votes aren't there, but we are pretty sure there are more than enough of votes. when i look at early stage, it is really about making sure there is a fair and level playing field. it is really clear to me that we don't have that right now. apple and google certainly mean

well, but they are still looking out for their main interests, and we want choice and freedom, and we need to protect the ability of founders perhaps in the garage and san francisco and mountain view, wherever they are in the world. we want them to create something that touches people, and that is what we want with these two bills, a fair and open dialogue and a way for consumers to actually win. emily: i have a minute left, garry, and i would love to get your advice now for the folks who were let go today. what would you say to them? garry: i mean, go home and hug your kids if you've got them. but at the same time, maybe if you have been playing it safe this whole time in your career, it might be time to go out and find some frontier tech, something you are interested in, and research the startups. research what you think might

change the world. you don't have to take a job offer, but interview at a bunch of them and figure out, is there a fit, is this place right for me. building equity in helping build new things that have never existed before, it is the most exhilarating experience that i have ever had professionally. i just really hope -- i think that it's just a hard moment right now. the future is a little bit uncertain in terms of whether there is a recession or not. the macro picture doesn't look that great. but i just want people to remember that new technology is still being built and there are companies big and small that are still fighting that fight. they need your help. dust yourself off and we are going to go build the future. emily: build indeed. garry tan, thank you so much for joining us and sharing all that

on a hard day, and we are excited about your next chapter, founder and partner of initialized capital. garry: thanks for having me. emily: coming up -- thank you -- my discussion with california representative ro khanna about the outcome of the midterms and elon musk. his thoughts, next. this is bloomberg. ♪

emily: back to the midterms and what impact it will have on the future of tech regulation in congress. representative ro khanna was with us earlier. take a listen. rep. khanna: on a human level i'm saddened and concerned about the layoffs. i represent the district in the bay area, and many of those people and families are in my district. but more broadly, we are going

to need more investment in content moderation that respects the first amendment but that is not allowing speech that incites violence or that is spreading blatant conspiracies and lies just to get more attention. that is something that congress needs to regulate. we haven't, and we need to regulate on privacy. otherwise, those social-media platforms are spewing off real poison into our democratic discourse. emily: you've got a new label on your twitter profile identifying you as a u.s. representative. some accounts are being labeled official. what is your opinion on the approach elon musk is taking at twitter so far and the difference between the right to free speech and the right to amplification of free speech? rep. khanna: well, look, i know elon musk, and i will give him the same advice privately as i do publicly, which is he

shouldn't be running twitter. just like jeff bezos doesn't run "the washington post" and people who own cnn don't run cnn, and michael bloomberg does not sit there running bloomberg television, i think he should appoint an independent board of people who will make the day-to-day decisions. some of the ideas of getting rid of bots, those are good ideas. the bots are responsible for some of the worst algorithmic application. i don't think elon wants to be sitting there making decisions about which tweets should be on in which it should be all. emily: full interview at bloomberg.com, and we would like to know that mike bloomberg is the founder and majority owner of bloomberg lp and the parent committee of bloomberg news. reid hoffman, the one and only, is with us next. this is bloomberg. ♪

emily: welcome back to "bloomberg technology." i'm emily chang in san francisco. computers are creating never before and seen images in--never before seen images and second it is called degenerative artificial intelligence, and investors are betting big on the future of this technology. reid hoffman is one of them. the linkedin founder sold a collection of his ai art for charity. thank you for joining us. you have been such a huge part of the show for the last 12 years and for that i am very grateful. i'm so curious to hear your thoughts on what is going to define the next decade of innovation in technology. if he was networks for the last decade, --if it was networks for the last decade, is ai the next? reid: i think it is. as hot as it was this year, next year it will be harder. the equivalent of having professional aide, a copilot for

engineers, in five years, present for every profession. it will be for journalists, vc's, doctors, lawyers, the whole thing. those tools will start, and they will be central to how -- at greylock we have been investing for years because we have seen this coming. i cofounded inflection. but this will be a trend of human amplification thru these artificial intelligence companies, which we have never seen it's like before in human history-- its like before in human history. emily: the question is how do we maintain the human. how do our everyday lives, everyday working lives, intersect with the future of work in ai? reid: this is one of the reasons that i wrote this essay on

linkedin because the natural or is that it will take jobs from graphic designers and graphic designers will be out of work. what i realized from having the time to play with it is whatever your graphic skills are, between none, a little, a lot, it is an amplifier. it will be like learning adobe photoshop. i need to have this as part of my professional tool for how i am operating. that is what is going to be true for all of it. there will be changes, transitions, you have to learn a new tool, and one of the things when you are another professional like me, learning a new tool can be a little stressful and challenging. but it is doable. currently it goes by the geek name "prompt engineering." hopefully we will have a better term than that. we are not so good at marketing new innovations in the tech industry. but that is what is coming across everything -- doctors and lawyers and graphic designers

and coders and writers and journalists, research analysts, vc's. emily: generator ai specifically is getting so much attention, and you have been talking about it for a long time. just how big is this going to be, and how much money is there to be made? is this where the next facebook or google is going to come from? reid: well, we certainly hope so. that is one of the reasons why at greylock we made all of these investments. what i think it is this it will -- it is kind of like -- it will be even more of an amplifier in terms of what you have seen from everything from microsoft office and the internet. i think that because when you think about -- you take a linkedin definition of what the brother professional is, which is you get better at your job and you output some thinking and decisions and information, ai

will be helpful across all of it . there is a lot of work to going to make it happen. it will take years for adoption and crafting it to make sure it is the right kind of human application versus potentially destructive effects. i'm fully optimistic on the human amplification part of it. emily: let's talk about amplification. we have just gone through the midterm elections. you yourself have said that midterms often signify major turning points in american politics. i'm curious what the turning point you think is that is happening now. we saw candidates who amplified the big lie get more engagement. we saw social-media platforms then profit from that engagement. how dangerous could this cap? not --could this get? reid: it is super dangerous,

which is why production of democracy is the most important thing, why i've been engaging in saying this is an important issue for business people on linkedin because linkedin is about business and amplifying that i think the results of the midterms have been good and generally bad for the election deniers and proponents of the big lie. it is generally a pro-desantis, anti-trump spread within the republican party. it is maybe the best kind of result for a midterm result for a president in the last 20 years. normally it is really bad for the sitting president of the party. the fact that it is the best in the past 20 years as a positive endorsement of biden. i think the general view is to be democracy matters. peaceful transition of power matters. rule of law matters. the fact that we have a democracy by which we vote for who are representatives are, we should not encourage insurrections or acts of

violence like january 6, that is bad. all of us as americans, all of us as leaders, all of us as business people need to firmly get behind it, and we are seeing that broadly through the elections. i think it has been a general good referendum in these midterms. emily: you and elon musk go way back, and i know you haven't commented publicly yet on his takeover of twitter. i have to ask, what do you think? what do you think of what he has done so far? reid: elon, no surprise, is one of the amazing entrepreneurs of our generation, revolutionizing multiple industries in doing so against people like me who said i don't think it will work, like spacex. i was the second or third person he pitched you and i said, ah, difficult, outerspace industry. he created a new one with satellites and revolutionized

electric vehicles. amazing entrepreneur, strong vision, drive-thru brick walls, multiple brick walls and all of these industries. i wouldn't have handled twitter at all the way he is doing it. i think the chaos of it, the suddenness of the layoffs, a bunch of other things. obviously i have a different view of the politics of it. i disagree with his vote republican. i would say vote anti-maga, anti-election denying, whether democrat or republican, relative to your specific race. i think he has a hard challenge in front of him good i think we all want him to succeed, and even though i wouldn't do twitter the way he's doing it, he has proven me wrong before by the sheer grit and determination and vision. and i always respect that about him, i think we want the public square that is healthy, that has an emphasis on human and

anti-bots and everything else. emily: where do you draw the line between the right to free speech and the right to the amplification of free speech? and i am so curious if you have talked to him at all about this or any part of it, and how he has responded. reid: so, i haven't. i don't have any inside information. obviously, elon is a friend and i'm always delighted to help if you would call. the key thing is there is a right to free speech in the political arena can which is not the government cannot quell you. we do that search not--so to not have our best ideas quelled by government or political insertions in power. it is a little bit different between the business side is why we have a clean, well lit place in linkedin with a clear design and all the rest. if you look at linkedin, you get how i think of these things.

you should maximize a bunch of expression from individuals, but you should also think about the health of the group and the health of the ecosystem. for example, let's take something slightly less charged on partisan issues, like vaccine deniers. enormously bad for the health of a society, for the health of not just the country, but the world. you go, ok, and there is clear medical parties against that. -- medical expertise against that. that should not be given regionalism someone coming out and saying i think vaccines were invented by martians. fine, be on your little soapbox, say that. but the medical side of it is what allows society to function successfully, part of flu vaccines and other things proven through centuries of work. that kind of thing you have to distinguish between freedom of speech and freedom of reach come

and you do so with a very broad view of the health of society, the health of the network. you have to do both. it is not just individuals, it is not just network and society, it is both. you have to be good stewards of that. emily: let's talk about the health of silicon valley. 11,000 people just laid off at meta, thousands of people laid off at twitter, hiring freezes at apple and alphabet. layoffs in a lot of places. you have seen so much of silicon valley history. how does the valley survive this? what does it look like on the other side, and how bad does he get before we get there? reid: i think it will certainly continue back for at least six months. it could go a year-plus. the valley has gone through multiple recessions, actually, some contractions. refocusing and saying this is

what our business is fundamentally about and how we do it. i think it is a good thing. obviously painful for families and those changes. on the other hand, silicon valley will continue to thrive. there is a lot of capital investing in the future and a lot of these folks will be able to find other jobs reasonably soon, because i think there is still lots of companies being created. at greylock we have been investing in them, not just ai committees, but enterprise companies, security companies. other firms are doing the same. it is the ability to go and create the future. it is one of the things that silicon valley has gone through multiple recessions. it is a crucible. it is a tempora -- it is a temperance function, because you need to be efficient and effective, not "it always works!" how is this good for your

employees, how is this good for society? be focused on doing a few things and a few things well. that is the period we are going through, but while as painful as it is, a downturn is just another phase of business as usual. emily: it sounds like you are long san francisco, ong silicon valley -- long silicon valley, which is what i expected. reid, always appreciate you joining us in your optimism. reid hoffman, greylock partner and founder of linkedin, thank you. coming up, jesse powell talks about the importance of having reserves in the wake of the latest crypto blowup. he joins us next. this is bloomberg. ♪

>> we are seeing this in real time, how this is unfolding in real time. we saw it in the spring as well, in real time, that investors are getting hurt. lack of disclosure. we have seen the use of other people's money and trading ahead and using other people's money, but we have also seen the use of leverage. emily: sec chair gary gensler in the wake of crypto turmoil. cryptocurrencies tumbling after binance backed out of the ftx acquisition. the ceo saying binance will start showing proof of reserves to garner trust in the crypto community. the u.s. is investigating ftx. jesse powell is the outgoing founder of crypto exchange

kraken, which has been transparent about proof of reserves. jesse, what just happened? it was happening and now it is not. jesse: yeah, it seems like there was a deal between two of the largest exchanges, binance to acquire what might remain of ftx which from the outside looks like mostly a pretty big crater. i think they took a look at it and decided this was a hole too big to fill, with too much radioactive regulatory scrutiny around it, which looks like it might've been a big headache to deal with. unfortunately, right now it looks like ftx might be heading into a bankruptcy process the likes of which we have seen frequently recently, unfortunately. for some like the clients of voyager, you might be aware that ftx was just appointed the trustee to manage the voyager payout process to acquire those accounts.

so it is history repeating itself with crypto. we saw a similar situation back in 2014 when another trustee had deposited funds from bitcoin and it got in and they subsequently got hacked and client got a double penalty. still waiting 10 years later to be paid out. hopefully it does not take that long here. unfortunately another blackeye on the industry, and it is going to be really tough times for the consumers and the clients of that exchange. emily: i asked the coinbase ceo ryan armstrong the same thing i'm going to ask you -- would kraken be interested in buying ftx? jesse: i'm sure they have some assets that are interesting, that have some value. we have already got quite a bit of the same infrastructure. there is a lot of redundancy between exchanges. maybe we are talking about user accounts. maybe they have subsidiaries and specific things we would be interested in or possibly some licenses. but i don't think there is going to be value anything close to

what the hole seems to be. i think the process is likely going to go into bankruptcy. there is going to be an organized auction for these assets. at this point i'm not sure whether they even would be allowed to sell these assets, which might belong to the creditors at this point. emily: has ftx approached kraken at all? jesse: we have spoken to them about this. we are in the loop and we are looking to get more information at this point. emily: ok. does kraken -- do you have any exposure to ftx or alameda, and if so, how much? jesse: no, we don't. we steered clear of the token. we don't trade ftt on the spot exchange or futures exchange. we are in the clear on this one, fortunately. we are a very conservative business in terms of our operations.

we don't operate a hedge fund on the side. there are no strange relationships like that. we are not trading with client'' funds, we are not lending out clients' funds and they don't know about it. we are a relatively conservative business. we have been around for 11-plus years. people should really look at this space when they are looking at a new venue to trade at. look at that history, look at whether they have done something like proof of reserves, which kraken has done twice in the last year. look at their longevity in the space. the bear market is really the tide going out, and you see who is swimming naked when that happens. some of these are seeing their first bear market for the first time and getting called out and it is apparent who is swimming naked. emily: so who is swimming naked? are crypto funds next? hedge funds, for example? jesse: you know, there is a lot of leverage out there. i don't think we have seen the

end of it. i think there could still be some other "liquidity crises" to come. i think that is a euphemism for an insolvency. i think that people are marking some of these really liquid assets like ftt, for example, which are highly centrally owned and controlled, they are marking them 100% value, when the reality is maybe they should be marked at, 20% of the value, because the market is so thin, you could not sell all of that if you had to. it is heavily centralized in the control. there is an extremist. -- extreme risk. binance, a competitor of ftx, owned a huge supply of this token that ftx was using as collateral to borrow against. when that asset started declining in value, i'm sure they started getting margin calls, and it turns out that they just didn't have the money to make good on those loans.

emily: all right, well, the situation continuing to unfold. really appreciate you joining us to share your perspective on it. kraken founder jesse powell. we will be right back after this quick break. this is bloomberg. ♪

emily: some of the stories we are following. in china, the world's largest iphone factory will still face some tough covid restrictions. the city ended a lockdown in the district where the plant is located, but some areas are still considered high risk, including one where the foxconn factory is. the restrictions have led apple to warn it will ship fewer iphones than anticipated. in the u.s., the likelihood of a

prolonged housing slowdown is rippling through the industry. redfin is shutting down its home-flipping business and laying off 860 workers, 13% of the staff. since the end of april, the company has reduced its workforce by 27%. here is what the ceo told me back in august about the first wave of layoffs back then. >> we laid off 6% of our workforce, and i am the one accountable for that. i feel so ashamed about it. i was so blue. i still am. that is what we had to do to run a profitable business. and now i think we feel more optimistic about the future, but we are still running on a knife's edge. emily: and tesla ceo elon musk sold more than $3.9 billion worth of shares in the electric carmaker just days after closing his buyout of twitter. he has now unloaded about $36 billion worth of shares in the company in the last year.

according to loup ventures come "he is preparing for twitter to be a money hole." that does it for this edition of "bloomberg technology." thursday we have got a very special lineup. lisa su will be joining us. some of the most prolific venture capitalists. it is going to be a very special show for me. i'm going to try my best to get through it, and i hope you all will watch. thank you so much for tuning into this edition of "bloomberg technology." i'm emily chang in san francisco. this is bloomberg. ♪ ♪ we all have a purpose in life - a “why.” maybe it's perfecting that special place that you want to keep in the family or passing down the family business

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