liz: i want to pick apart and separate crypto wallets from blockchain. solano a week and a half ago hit hard by an attack where some 8,000 wallets were attacked. where do you stand and what would you advice people who have crypto wallets and what they should do with hot wallets, which are ones always connected to the internet, good or bad? >> i don't know if it's good or bad. i would very well secure their computers. they should treat the computers in which the wallet is being run. it's a very, very sensitive place, just like you treat your, you know, bank statement. you won't leave it open and run a lot of securities software to protect it, and you will be very, very careful if son asks you to give information about yourself and so on. that's one. second is leave a lot of backups so you know the key and not others so you can't lose it. and beyond that again, i think it's a really challenging thing for the typical consumer when you are facing sophisticated criminal groups and you're, you know, an investor or person. liz: yeah, to me this is the scariest

. >> what are the implications for other blockchain's? of the older blockchain's still use miners, this power-hungry computers might be more likely to switch something more environmentally friendly. the newer blockchain's already use a similar technology to what ethereum is moving to. i think we will see more investments into this type of blockchain. emily: let's to continue to watch. -- lots to continue to watch. we will tune in on september 15. tuneup -- coming up, 100 million, 200 million or more. how the pay received by the top ceos are reaching and credible highs, many of them in tech. this is bloomberg. ♪ emily: nine figure paychecks once a rarity are now proliferating despite critics on capitol hill and beyond. as the u.s. was grappling with the pandemic, 2021 was the most lavish year on record by almost any measure with pay deals of more than $100 million in value according to the bloomberg pay index. tell us who is getting these paychecks. elon musk and who else? >> elon musk, tim cook, the ceos of rivian and lucid. you have a co

>> we have a sanction oracle on the blockchain that you can write into a smart contract. compliant in the sense that you check. however you also need to check for things that are related to that. >> an existential topic about -- it feels like a lot of these hacks are happening in cross blockchain bridges. what about bridges specifically makes them vulnerable? >> a bridge is basically a place where you buffer or stall funds when you move them between blockchain's. i may want to buy one and to do that because basically hot wallet sitting in a system of the internet then i get something else on the other side. now you can sit billions of dollars in a wallet and that makes it honey pot. when i been looking through various papers, typically it has been extremely hard to break into but last year, we saw huge growth in crypto and everyone wanted to be first to market. sometimes limitations in the actual basic security around servers that were running these hot wallet has been less good and that has been exploited mainly by north korea. emily: thank you for helping us explore. co

, as it were, and the blockchain acts as a transparent ledger and make sure everyone gets paid.ould lead to greater accessibility and affordability for education as you look globally emily: call me old-fashioned, but as much as i didn't like carrying textbooks around, i feel like a paper textbook -- i like reading a physical paper, a physical book, i like underlining it, folding down the pages. is there a place for that in the future? >> absolutely. we still give you the option to get that printed textbook. and we will continue to invest behind those. as an analogy, i like music, the recorded music industry. if you think of the textbook as the vinyl record and that you text as being the cd. and of course you have mp3 players, the and you have spotify and others where you pay a subscription for access to 40 million songs. in education, up until recently we have been stuck in the cd. the great opportunity as you can still buy the vinyl record, you can still buy the textbook but the greater opportunity is how we utilize technology. i mentioned blockchain, augmented reality, virtual

the merge of what they call the blockchain world. it will change a theory of with the founder and ceo bobby lee in a couple of minutes. any questions for him, send it our way. this is bloomberg. ♪ david: welcome back. breaking news out of south korea. south korea is restoring the right to work restoring his right, so it is a presidential pardon. coming through, perhaps related, the chairman granted a special pardon too. this is the headline, crossing the bloomberg terminal. .8%. yvonne: yeah. i am guessing, the stock is bouncing on the back of this. there's a lot of lingering questions of what this means for korea, which had been used to boost the economy. at that we were looking at change before. but it looks like what we are seeing here today. maybe things are heading back in that direction once again. as you mentioned, cheering on the back of that news. david: absolutely. i'm guessing this will fuel a further round of conversations around the general story of where that is headed. let's take you to crypto. it has been a big week,

katie: it feels like a lot of these hats are happening on cross blockchain bridges.ering what about gauges specifically makes them vulnerable? michael: cambridge is basically of -- a bridge is basically a place that you buffer or stall funds when you move them between blockchain's. i may want to buy one and to do that because basically hot wallet sitting in a system of the internet then i get something else on the other side. then i get something else on the other side. but now you can have billions of dollars in the wallet. that makes it a honey pot. when i have been written through different white papers, typically it has been a very healthy design and something that would be extremely hard to break into. but last year, we saw huge growth in crypto and everybody wanted to be first to market. so sometimes the limitations in the basic security around servers and other things that were running these hot wallet had been less good, and that has been exploited, mainly by north korea. emily: fascinating corner of the crypto universe, thank you for helping us explore it. m

let's bring you a blockchain capital partner for her read on this. great to have you with us. point, how much is bitcoin and crypto just a macro trade? reporter: thanks for having me. i think bitcoin and the crypto market more broadly have certainly expanded over the last cycle. i think we are starting to see that reflected when it comes to macro comments coming from jerome powell and the general market sentiment tending to edge away from risk. i don't know if that will continue long term. it is certainly a result of how the markets have performed the last 24 months. katie: sonali, it definitely feels like chair jerome powell spoke and crypto listened. sonali: crypto listened. even though it's trading lower than where it was a week ago, you do have it back up in the last 24 hours. if you look at what is happening, macro is driving much of the story. there are also some single name events, when you look at tokens that are trading, ethereum being one of them. avalanche on the downside. some news over the weekend driving the price lower. how much do fundamentals matter? guest: i

there , data from the blockchain will be printed and stored in paper form.will provide additional control over the electronic voting system. on the whole, we see that the interest of the society in the city of moscow is towards political processes and, first of all, behind the process collectors. he above attracts new faces young faces, as well as yes and of course, uh and the result. i think it will be interesting enough, well, we will be with you continue to follow the progress of the company. the construction of the main section of the moscow high-speed ​​diameter is planned to be completed by the city day, sergei sobyanin said today the capital's mayor inspected the work on the section between the dmitrovsky and altufevskoye highways, varvara nevskaya's report examined the personal section of the moscow high-speed ​​diameter, which runs from the moscow central circle station, likhobory and to the vladykina metro station we are talking about both stacks with a length of almost 2 1/2 km, it is part of the northern section of the moscow high-speed diameter,

katie: i am fascinated by the idea of the internet on the blockchain. i have heard it both ways.ld see some players come in, more traditional companies that are not crypto related come in and build. i have heard it has to be someone native to the crypto industry. where do you fall on that debate? when you think about the bets you are placing, are you more likely to invest in a crypto native company or someone with more experience coming from traditional finance? >> i think every company has its own use case to think through. i will say there is something special that comes from being crypto native and solving for pain points within the ecosystem. crypto more broadly is focused around grassroots organization and community giving ownership back to the users of the product. i think being crypto native is important and how you build a product in crypto and how it can scale over time. that is not to say financial institutions and web 2.0 companies will not be able to build great products and ideas in the crypto space. but i will say being digital and crypto native is a unique advantag

same thing there's no there there crypto just has no utility you don't need crypto for blockchain bloc been around for a long time actually ibm's had it for a long time i think that it may trade higher, it may trade lower it's an asset class. but there's no intrinsic value beneath what you see trading in front of you and the regulators know this. that's why they're coming hard for it so i wouldn't be in crypto i'd be a seller of crypto. and if i miss it i miss it but guess what i like buying things that have some value that back up the price that i see on the screen >> i was about to go to you for hopefully a slightly less morbid analogy but i'm just going to move on. final trades >> i actually have a question real quick for kevin so if a lot of it hinges on elevation, there's this thesis that regulation legitimatizes the industry if and when we get past that regulation hurdle in the u.s., would you be buying crypto directly would you buy the actual coins or would you then be comfortable with some of the platforms like a coinbase and other companies than are so heavily involved in cryp

we are rearranging the entire value stack of software built on top of decentralized blockchain's. going to eat the global financial system. nft's are going to rebuild the way we monetize intellectual property. that is a huge opportunity set. independent of where we are in market cycles, we think crypto is the best place to be making tech investments. emily: what is your unique approach? where and how do you plan to place your bets differently than all of the other dry powder out there? david: we have seen a retraction in the number of crypto investors out there. there are a group of crypto native investors like us, who only invest in crypto and blockchain's and the technology around web three. many of the traditional venture funds and hedge funds that started digging into crypto have pulled back, leaving ample opportunity for us to make investments. we invest along the entire waterfront of crypto -- everything from layer one blockchain to the infrastructure stack. we invest at the nft and gaming levels where the creators of the nft standard and one of the most accessible crypto co

emily: i have the general partner at delta blockchain, a capital firm that focuses on blockchain and. what do you make of this latest development? nova grants trying to get out of this deal? guest: i feel like if anybody in the vc space would look at the dealer and say the valuations are different. also after the luna fiasco, do we have cash on the balance sheet to do it? they blamed that for the sec filing, they needed more documents, which is easily provable by an exchange of the emails. i generally think it is market sentiment more than anything else, can galaxy afford it, or does it even make sense? sonali: i am curious what this means for dealmaking, going forward. the lot has to be said about confidence, with a deal like this getting broken up. but you look at the investment banks, including galaxy, and they seem to be busy. are these deals born out of a market that is trying to restructure or are deals born out of a chance to build a stronger market at the end? guest: i think it is everywhere. you have deals with institutional investor accounts to help them with crypto ownersh

the skeptics in this letter attest to the idea that bitcoin and blockchain more broadly is not the solutionproblems. emily: there's a lot of complicated dynamics at play. we reported on the revolving door between the crypto industry and capitol hill. you have crypto companies making big donation to head of the midterms. you have crypto lobbyists shaping policy. is there enough skepticism on capitol hill of this industry? sonali: i think time will tell how much there is a push or pull. you are asking a question where it seems like there's a lot of lawmakers that go out and in a regime where the head of the sec has -- sec has been cracking down on enforcement issues in a way we haven't seen and the tensions boil over. where's the support with someone he millions of dollars going into support the industry? this is not a panacea. you are looking at the industry and this is a thorough and long critique of the octane technology itself as problematic is how they are phrasing it because fraud mitigation is a big issue when it comes to blockchain. let me give you another perspective -- the conversat

i rarely mention this on -- which is xi jinping is using it for control because it's driven by blockchain which is a remarkable thing when you think about it. forever we work on double entry accounting and now we have blocked chain which is the first innovation in accounting in hundreds of years. with the blockchain as we know xi jinping and the communist party can track down every single transaction and use it to allocate credit or to penalize people. it may not be as you've pick what is lee used although they are way ahead of us on this and that raises an issue because they got 4% of the fda basket that i have an open their capital counts and i think it would be helpful if you explain to her listeners the importance of having an open capital account which the europeans have per the euro is the only liquid pool that is the alternative to the dollar in their central bank is more accommodative than ours. so i'm just curious what your views are on that in terms of the need of a capital account in china and whether that limits or maybe gives them an advantage. i'm not sure. your views on tha

emily: i understand you are exploring blockchain technology for climate change related insurance forat's the status and the potential of that? daniel: it's a fabulous initiative. this is part of the lemonade foundation, which is entirely nonprofit, and we launched the lemonade climate coalition. this is the crypto coalition where we are using a contract to enable subsistence farmers in africa to ensure their crops -- you're talking something like five dollars worth of premiums over the course of a season, something like $60 of claims. at those levels traditionally, trends cannot operate. the cost of selling a policy, supporting it, handing a claim, all of those dwarf the themes i just mentioned. but a smart contract can execute those kinds of policies instantaneously with zero overhead. turning a higher policy into a smart contract where a farmer in africa can buy coverage instantaneously, that will be translated into a wallet on chain which will execute into a smart contract which will be parametrically driven so if there is a climate event, they will get paid instantaneously with n

is a combination of the two, you are taking your existing capital, helping validate insecure a blockchaining a reward. it is a hybrid. when you talk about how you regulate that, that is a really good question, because is it labor, or is it actually dividends and yields? it's not clear. i kind of think you are putting things to work, and that is the spirit of permission-less, it being part of the community, getting rewarded for your efforts, not necessarily putting your collateral down and getting a yield. emily: alright, lots to think about, john wu of ava labs, great to have you back as always. and our own sonali basak. thank you. coming up, more from microsoft gaming ceo phil spencer. his vision of a world where children can play together, no matter what console they are using. that is next. this is bloomberg. ♪ emily: something else we are following -- sony raising the price of the playstation 5 console in major markets outside the u.s. by as much as 20%. it is in response to global inflation rates and currency trends impacting consumers, and creating pressure on multiple industries. i

the future iteration of dao5 will operate entirely on the blockchain could sonali: what does that meanelation going to be different for a dao like you or dao's for other purposes? tekin: in terms of regulation it is a constantly evolving landscape one thing that guessing of ms. him is jurisdictions like wyoming are taking a positive stance and more will follow. that is one area we continue to evolve our best understanding and best practices. the core focus is on deploying the capital responsibly and getting the best possible assets into the fund, which will find their way into this dao treasury. sonali: i'm curious about how regulators outside of these dao 's look at how they operate and how the dao's themselves operate and any criticism they have from the industry. there has been a lot of criticism about the governance and the way it changes. to the extent that governance needs to change, what are the biggest changes that need to be made in the next year or so? tekin: yeah, great question. i think there is one case study right now taking place and a liv e debate on crypto twitter abou

come in, but not to come in at the early stages of developing a new foundational technology like blockchainou have seen a lot of changes in the marketplace of course that is largely related to cryptocurrencies rather than the broader space of blockchain that has many applications. emily: president biden's crypto executive order, what is your view on that from an antitrust perspective? makan: one of the very positive things about the executive order, it brings the whole of government, it gets the views of different folks, looks at competition areas that i am very much concerned about. making sure that regulation is not put in place where you have static regulation that puts shackles on the engineers and the business models, rather than letting it develop into its full potential. and what i am hoping is that different aspects of the government -- is of course there is a very important role for the sec and the ftc and those types of agencies that regulate it from an investment standpoint, but there is also an important role of the department of commerce and department of justice in particular,

i mean where would you say the big growth story is on blockchain in terms of sectors?ost every bank from morgan stanley to jpmorgan is definitely involved triple digits investing in ventures when you look at time horizon this is going to be a big sector for everybody in the growth, solves a lot of problems around globalization efficiencies, automation of regulation we are seeing, about how to -- blockchain supply chain esg space from trading, credits to how to get better products -- to things like, you know, how do we -- how do we make sure the imports that we get are actually safe and effective. so -- >> all right. >> it is really every sector. but -- >> it really is, it is a great point i would want to get your take quick before you go senate proposed a bill to put bitcoin ethereum under that, its watch charles you testified in front of congress about crypto regulation, what is regulation going to look like in your view? >> so there is a will have the competing bills it is hard in this political environment what is going to happen likely could see a red wave in novem

play i might add it only has a 2% short interest you are not going to get much lift from that riot blockchainrast has a 23% short interest by contrast if, in fact, people start to get comfortable with bitcoin and want to invest in bitcoin, that's going to be, i think, a very positive factor for riot blockchain. we only own 18 to 24 positions at any point in time we're deep research, deep conviction investors you can't own everything but these are meritorious names. >> it's great to have you today. fred lane. >> all right and fred may have given us some lead as well so we can invest. >>> today's rally and inflation report, a look at what it says about consumer finance companies. we will take you under the crco wmiospeith professor dominic chu next bubbles bubbles there are bubbles everywhere! as an expedia member you earn points on top of your airline miles. so you can go see even more of all the world's bubbles. at fidelity, your dedicated advisor will work with you on a comprehensive wealth plan across your full financial picture. a plan with tax-smart investing strategies designed to help y

interesting right now, just given the fact that the market has soured on a lot of these themes, blockchain, the metaverse, which is what this etf is all about. >> one of the things we've seen over the last three decades of investing is that the emergence of new technologies goesthroug a boom, bust, boom cycle and so it's very clear that blockchain is not going away it's very clear that cryptocurrency is not going away big data is not going away the metaverse isn't going away nfts and tokenizations is not going away they have come back to reality the market is trying to figure out what's fact versus fiction, what are the real sustainable businesses and what aren't the benefit of an etf that cuts across those four themes is it gives you the ability to diversify your risk by investing in this etf as opposed to one or two companies or one or two cryptocurrencies and so these companies four into these thematic areas in a diversified portfolio under the ticker tweb and that comes at about $20 a share so it allows you to get started if you want to invest in that theme at a low price point in a di

anchoring blockchain is a valuable characteristic.re are a lot of different ways people want to use blockchain let's try. >> what do you like, andrew, the proof of work or proof of stake? do you have a presence >> i like the proof of stake from an energy >> there you go, you're the people. >> but at the same time i like the proof of work because it would seem like that would be the more trustworthy version of it, i think. hard to know >> meltem, thairng. >> thank you >> we'll see you in just a couple of minutes. when we come back, big stock movers and the stories investors need to know take a look at futures they are trading lower we'll talk technicals with katie stockton you're watching "squawk box" right here on cnbc >>> good morning futures starting the week in the red as the market gears up for the jackson hole fed symposium >>> and the meme stocks are getting blasted. bed, bath & beyond down and amc taking a hit as the apes get ready for a special dividend. >>> what would a monday be without weekend tweets from musk as the second

this is now going to become a flag bearer for the blockchain economy.t's so thrilling to be in our sector, looking out what they are trying to do and see what it takes for the technological know-how to do what they are doing and see that it is thrilling. that's probably what's very exciting, i think that's what is engaging the crypto community. obviously we are still speaking within a broader macro picture and what's happening in the economy, we saw the numbers come out of the cpi number and all that data that will exceed the investor sentiment from the way we see it going. but this really pushes the economy forward and it's very exciting. >> tell us about those -- shery: tell us about those macroeconomic products. you see the 24,000 for bitcoin seems to be a resistance point we are not getting over in the asian session at least. caroline: i would agree with that. the numbers had markets and industry data of these points. what we see is that there are buyers and sellers have gone away. we look at the ratio of the market and they are just not budging on

blockchain will dominate the market.ckchain is able to attract the biggest networks and user basis. the volatility -- it happens once every four years. in happen the first time in 2014 . a 10,000 usually it happened -- once every four years. the second time that it happened is in 2017 when the bitcoin price went from $600 to $20,000. rishaad: the thing is, with >> been going on, how far have retail investors been scared? how bad is it for them in particular? there is a local cycle in this industry. when the price went up 10,000% in 2013 or 1000% in 2021, the price usually went down, the big correction usually occurs after a year and a half, the price drops 70% to 80%. then retail investors get scared off. then there are less trading activities happening. after four years, the activities pick up again. during the correction and downturn, if you were to compare the current volume of the market being sideways to the previous four years when the correction occurred, there are way more active users, at least 10 times more act

they're talking about the blockchain and that sort of thing. essentially what they're saying is we know a down payment especially for young people is just too much. so if you have $100 a month, or a week, you can invest, along with strangers, and then by the way, if you all invest in a rental property, you all get rental money back. and eventually build enough to have your own down payment. >> okay, i wish the best of luck to lofty, but what if lofty goes out of business? what happens to my partners? what happens to my money. >> exactly. that was question number one. they deal with it the way banks do. there is actually a third party handling the money here, whether it's escrow or rent or down payments or that sort of thing. even if the start-up goes out of business, your investment money and therefore your rental property is still safe. but again, it's a good question to ask. you should always do due diligence before investing in anything. >> it's kind of like fractional ownership for a vacation ownership. >> the goal is to take what has been

disrupt the housing market, appealing to young would-be homeowners with new buzzwords like the blockchain, but also with old-fashioned ideas like investing and saving money. >> if you're working part time and you have spare money in your paycheck, $50, $100 here and there, you can start indexing in and start building your own real estate portfolio this way. >> reporter: building a portfolio by combining your money with others and investing in homes. for now, lofty's web-based listings are made up with rental properties. soon they say they'll include houses for sale. >> i've seen microinvestment on the platform. >> reporter: a 25-year-old tech executive is saving on lofty, investing in what he believes will eventually offer him enough returns to afford to buy a home of his own. >> the goal definitely was to get to buy a house this year. but in the current market, that has changed completely. i have to set my goal for 2024. >> reporter: for now lofty is web-based. you can find the company at lofty.ai. it will have an app soon. and when it comes to investing your money, the riskiness of inve

blockchain technology, i think in the next 10 years is going to profoundly change the whole payment systems. we have again another subject for another time. what are we think? you should watch for on. what's happening with cryptos is what there's a class called stable coins. which are growing in popularity a stable coin crypto is tied to a specific asset. whether gold or the dollar or a basket of commodities, but it's tied to something. so you have stability and value. i think as technology evolves. and it becomes easier. to use cryptocurrencies for commercial transactions and ultimately easy and trusting where you can use these things to write long-term contracts, which you wouldn't dare do today because mentioned what happened with bitcoin. you're going to see coming years. you're going to see stable coins become an alternative to government currencies and that's why for example turkey which has had a terrible time in the last year with its currency banned stable coins. because they thought as a threat to the turkish lira, i think you're going to see him coming years a real regula

these are, of course, blockchain technologies, these are technologies related to the built-in payment of cryptocurrency, which allows the use of e, the so-called decentralized financial solutions in any solutions. gaming today is called uh still. uh, one type of financial decision, jifi. uh and this becomes a key trend. this will change the financial industry beyond recognition, what we do with smart contracts. and, of course, this is the key key technology in order to develop the meta universe. the meta universe is what everyone is talking about today, while we see that both immersive experiences, immersive technologies are not ready to provide an adequate experience to users and there are still insufficiently developed technologies and there is no necessary amount of data, but within next five dash 7 years. in this part a revolution will be made and we will have a fundamentally new internet, which will be connected with the life of our twins. on the internet , duplicates of almost everything will be created, and this is what is already beginning to develop, this is what you should d

the way the blockchain orders transactions will be changed.ot of apps, investors depend on this going smoothly. >> ethereum is one of the most important commercial highways and crypto. are there risks in this upgrade? >> absolutely a lot of risks that something is going to go wrong. developers have been working on this upgrade for years. they have tested things. the last test hopefully took place last night. you never know what kind of issues might pop up that did not come up in actual deployment. it's going to be a nailbiter. >> here's a quick check of the latest is this flash headlines. insurance -- against the proposed spinoff of ages operations. the chinese insurer believes it is need of large change. a spinoff would generate an additional market value of up to $35 billion and reduce costs. sales from rivian rose to $364 million in the second quarter well above analyst expectations. rivian lowered its earnings guidance. the company says it is expecting to make a full your loss of $5.5 billion. plenty more to come, this is bloomberg. ♪ >> w

there will be an extra layer of payment and blockchain if you want to go there.an see his change is coming and getting new customers. i think it is a very smart way ftx is coming. any place where you have an e-commerce option to be done, just add another crypto payment system out there. >> thank you for joining us. always great to have your take on the latest dramatic twists in the crypto business. coming up, snapchat's one million paid subscribers. what that means for the efforts to move away from advertising. we will discuss that next, this is bloomberg. ♪ >> snap said it's paid subscription plan is a hit. the company launched snapchat plus back in june. a plan that gives you early and exclusive access to this for 3.99 per month. including changing the app icon. let's bring in alex for more on this. kind of surprising that snap was able to rack up as many paid subscribers. one of the so excited about? -- what are they so excited about? >> these subscribers are the younger users that snap has brought onto the platform and tried to give them interesting and exclu

>> solana is one of those blockchain's that sacrifices security for speed. think it's a flight to safety especially if you care about security right now and that's our biggest year on theory and is will it turn out to be in this new entity more like solana and less like bitcoin? we are cautious but we are not selling it. >> where does ethereum and the year? are you selling it? >> we think it could get back to 1000 or very low or very lower if the merge doesn't go well. does go as expected and there's not a whole lot of doubts out there that it won't there's a risk that it will, we could see it rally. we are holding off until september before we make any big bets on it. >> valkyrie chief investment officer, thank you for helping us navigate all of the different things you are working through. we appreciate it. coming up, how microsoft hopes to change the workplace culture in the gaming industry. that's next. this is bloomberg. ♪ emily: microsoft's head of gaming says he is optimistic that the deal to buy activision blizzard will be approved. if that happens t

emily: i understand you are exploring blockchain technology for climate change related insurance formers. what's the status and potential of that? daniel: it's a fabulous initiative. this is part of the lemonade foundation, this is entirely nonprofit and we launched the lemonade climate coalition where we are using a contract to enable subsistence farmers in africa to ensure their crops stop something like $50 of time. at those levels, the cost of selling a policy, supporting it, all of those dwarf the themes i just mentioned. a smart contract can execute at that insurance policy with zero overhead. turning a higher policy into a smart contract, to buy coverage instantaneously, that will be translated into a wallet on a chain which will execute into a smart contract which will be parametrically driven so if there is a climate event, they will get paid. emily: fascinating. the lemonade co-ceo, thank you. coming up, we'll talk to the ev subscription companies, autonomy. they are letting people drive tesla's without owning them. that's next. this is bloomberg. ♪ hi, i'm denise. i've los

what that means is the future adoration of dow will live and operate entirely by blockchain. >> whatthat mean? the regulation be any different for a dow like you? or even doubts with other purposes? >> in terms of regulation, i think it is a constantly evolving landscape. one thing that gives me a lot of optimism is jurisdiction's like wyoming are taking a very positive stance and i think more will follow. that is one area we continue to involve -- evolve our best understanding of the practices but the core focus is on applying the capital responsibly , getting our best assets into the fund. >> i am really curious about how regulators outside of these operate but also how the dow's themselves operate and there has been a lot of questions about the governance and the way it changes. to the extent that governance needs to change, what are the biggest changes that need to be made in the next year or so? >> great question. there is one case study taking place and a lot of debate on crypto around the dissolution here. i think this will ultimately form in a porton president and case study

>> it is one of those blockchain's that sacrificed security for speed.till a work in progress. i don't think it is necessarily a flight to safety. especially if you care about security right now. that is our biggest fear on a theory in. will it turn out to be more like salama and a lot less like bitcoin? we are cautious on solana. >> where does ethereum and the year? >> we think that ethereum very well could get back to a thousand or even lower if it doesn't go well. if the merge does go as expected -- there is metal lot -- there is not a lot of debt out there that it will. we are kind of holding off until september until we make any big bets on a theory in. >> all right. thank you for helping us navigate all the things you're working through. appreciate it. coming up, how microsoft hopes to change a toxic workplace culture in the gaming industry. that is next, this is bloomberg. >> microsoft's head of gaming says the -- if that happens, spencer will inherit a videogame hit maker with a controversial leader. i spoke with him about a wide-ranging -- in a

david: the merge has been on the roadmap of the ethereum blockchain developer since its inception ine been several delays, and there has been suspicion about the time of the merge, but in conversations with investors and developers, they are more confident than ever that the merge will happen in the next couple of months. there are a couple of reasons. first, we have seen the merge on the test nets being completed without major technical glitches, promising side the merge will happen in the near future. secondly, if you look at the revenues market, the ether options market, we are seeing a lot of investors betting on a price hike around the time of the merge. those things indicate that there is a fairly high confidence level for the merge to happen in the near future. ed: it seems investors are positioning this to happen, trying to get in because they anticipate further upward movement in ethereum. but there is a school of thought that when it actually happens, we will see a crash. explain that logic. david: there is a saying in the crypto space, seldom used. at the end of the day, w

you can use that to swap tokens from one blockchain to another it is not clear how it was done or if the people who got the money stolen will get it back. happening overnight, the web site in taiwan was under attack and caused it to go offline. this followed by several other web sites in the government and authorities blaming this on china and russia let's talk about the cybersecurity. joining us is zerofox ceo james foster zerofox going public today on the spac deal under zfox ticker. james, it was good to have you on the program we could have spent an hour on the headlines with hackers and et cetera. why are hack attacks ramping up and what is your company doing to help companies stop them? >> good morning, brian big day for zerofox. it feels like cyber attacks are happening all the time because they are the largest breach providers here in the world. we helped thousands of companies with the attacks you are seeing and talked about china and russia can attack government organizations and web sites with impunity today. it is hard to go back against them and understand who did it and

about two thirds of it from applications called bridges, which allow people to move tokens from one blockchainher. we are seeing this situation where money is being stolen left and right. a lot of projects feel like they need to do something. emily: inset of fortune favoring the brave, you say they are favoring security concerns? olga: the companies doing great are the companies auditing code, looking for bugs that hackers can potentially exploit. also companies that run sites that allow good hackers called white hat hackers to report bugs someone else can potentially exploit. sometimes up to $10 million. emily: what makes cross chain bridge is so vulnerable to hacks? olga: this is a very complicated technology to begin with and it is very often managed in a very opaque way. it's not clear who is responsible sometimes for running the bridge and in the case of hacks so far this year, it took days for some of those bridges to even find out they got hacked and lost money. there's a host of problems with those bridges that need to be addressed and often auditing and other related security services

downgraded today, but still a nice run investors anticipating a major upgrade there to the ethereum blockchain that can be giving a lift to ethereum down right now, but still a heck of a monthly run >>> let's get the trade overseas and key headlines with joumanna bercetche in london with that. good morning, joumanna >> good morning, brian it is not a pretty day for european forces. now looking stoxx 600 ending down 1%. ftse 100 down .20% despite better retail sales coming in at .3% better than expect expectations. the major theme in europe is the wholesale ppi numbers from germany. shooting to 37% year on year hugely surprising to the upside. obviously huge implications on consumers and industry one reason why the xetra dax is trading down .90%. losses are accelerating in the italian index down 1.4%. the european yields. heavy selling across the board today. the 10-year bund is down the italian is up. the spread is widening between the two. the focus in foreign exchange. the euro is on that parity line. this time analysts say we will have a sustained breakthrough because of the germany numbers

regulators say fraudsters canno circumvent circumstance laws by smart contracts and blockchains.s is not an isolated case celsius, once a titan, is now in bankruptcy court and accused of running a ponzi scheme celsius offering over 18% annual return as a tactic to lure in new deposit ors to pay out old ones a lot of allegations are flying around right now >> you mentioned, mackenzie. forsage and celsius. 3arrows which dealt in the crypto sphere. does the list end there? those are three catalysts for a sector right now three big names in there >> the list is not thin there. crypto voyager filed for bankruptcy in the district of new york that i'll monitor on thursday voyager had more than 100,000 creditors and between $1 billion and $10 billion in assets and liabilities of the same value. the ceo said after the company goes through the proceedings, customers could get some of their money back so a lot of those users are hoping to get clarity on next steps. >> wait a second $100,000 is a staggering number of potential clients is there any indication of how many of the clients were r

that combined with ethererum which is fixing, it's doing a major overhaul of its ethererum blockchain talking about but we won't go there, it could lead to a lot of selling in crypto-land, and people are saying you could expect a bitcoin at 16,000. don't be surprised if you see 16 on bitcoin, so all this stuff, you know, some of it's technical stuff like the ethererum reboot of its blockchain. a lot of it is fundamental. the fed being committed to raising rates, and if that's the case, then everything sells off. risk base assets, dow has to come down, we're heading to a recession, and actually, we're heading probably, it depends on like remember these are all lagging indicators but if you believe we have embedded in the system at current levels 5% inflation, that's 2% above the target. we're probably, we have good chance we could have stagflation which is never fun. the markets are saying as i'm talking trading off 700 points. neil: one of the things that's interesting and you touched on here is if anyone had any doubts , jerome powell is going to clobber inflation and if that leads t

cryptocurrencies and crypto exposed stocks with it don't look now but coinbase, microstrategy, riot blockchain and others up more than 50% in just the last month with bitcoin back above 4,000, ether flirting with 1800. crypto is making a comeback. jpmorgan jpmorgan saying they've found a floor. if so, that was a quick cold snap. >> indeed, indeed. look at ether down 44% i'm sorry, up 44 up 44 there. as stock prices and valuations crater some wall street firms calling the bottom on growth stocks, dom chiu is with us. hi >> valuations are at the heart of this discussion as to whether or not they make a comeback which tend to preguess the multiples or valuations of some of these analysts at goldman sachs are starting to look at them and say maybe they can make a comeback, but certain kinds. they say, consistent with history we expect investors will reward higher quality growth stocks but continue to avoid unprofitable growth stocks that would be required to tap into the financial markets at a time when the cost of capital is on the rise now, with that in mind, if you look at those growth stocks t

first the blockchain data firm found a significant drop in scams.s 65% below the levels through july this time last year these are typically those get rich quick schemes think of those fake investing opportunities you have seen out there promising enormous returns. those tseem less believable wit prices down now and fewer people seem to be falling for it. then dark web revenue, down 43% from a year ago. tracking higher until april. that's when hydromarketplace, a prominent hub for drug sales, stolen data and money-laundering services was shut down a bit of a reversal will there and one area booming, hacks and stolen funds topped $1.9 billion so far this year that's up 58% from a year ago. this is mostly in defy, decentralized finance. that open source code can make it uniquely vulnerable it's used by developers, and also being used and exploited by hackers. we talked about the solano wallets getting hacked, the ronan hack the biggest we have seen this year and half of that total has tomorrow from north korean groups which with taken home about $1 bi

we see lots of products being built on the bitcoin blockchain, all types of custody, things like that000 or so cryptocurrencies they are more speculative. if people think they can time the market, get in and out of the proper times good luck with that. i think for most people if they don't have an edge, if they don't know what the edge is, they don't have one. if they don't have an edge, better buying bitcoin and holing it. charles: i had the conversation with don, loss of faith in different institutions particularly government, particularly the federal reserve. it feels though every time the federal reserve has been in the news the way it has been in the news the last few weeks it feels like it helps cryptocurrency particularly bitcoin. >> yeah. charles: does this disarray add credence to the value proposition? >> i think it certainly does. what we really saw the fed meeting in june. around june 15th they came out and announced a bigger rate hike than everybody expected, 75 basis points and at that point we saw risk-on assets take off. since that meeting we saw the two-year and 10-ye

check out ethereum the star since june 19th up 90% the ethereum blockchain scheduled for an upgrade in september to make it faster and more energy efficient. andrew >> by the way, melissa, the possibility of ethereum is the merge should be a big upgrade. it is possible something could go wrong in the merger there is some risk associated with it. i'm surprised when you talk to folks in the space and they talk about the risk, but they say look over here i don't know >> i think it is the move you look away before it fully happens. well w we'll see how it trades. >>> this is wild i need to hear what you think. an update on what has been the saga of the week of bed, bath & beyond the company that you know we talk about with great fondness the company. or the stores. we like to go to the stores. a new filing released yesterday showing ryan cohen exited position in the retailer the filing showing he dumped the stock on tuesday and wednesday with the price between $18 and $20 a share. the stock down 40% in extended trading after the drop of 20% during yesterday's regular session. now trading b

and they don't want a transaction history of everything that in their wallet to be public on the blockchainve public ledger, you make a transaction you can see the trace the transaction through to see how much money is in peoples wallets. people don't like that. when i spend cash at a grocery store the grocer don't know how much money i have left in my wallet. to use crypto you need tornado cash to have those funds. 10% was, tiny amount used for criminal activity. this is precedent setting case because they're not just going after property of individuals and sanctioning the individuals, they sanctioned third party code. they sanctioned decentralized code running on computers all over the world, addresses not controlled by anyone. they're censoring technology here. charles: real quick, then, you've been a real big advocate of privacy. how important is that, is that part and parcel in your mind then of this defi revolution? >> absolutely. i think that what we've learned in this is that if the government can target addresses that are open and public and they will. so if you actually want true