ether.fi : Buybacks for Who? | Daily Crypto IQ

0:19Heat. Heat. Yeah, Yeah. you can't do it. baby. I never knew it. I never knew. Hey hey hey. I think that we just holding on to something. >> I wonder I think that we're just holding on to

5:05What's up all my undergrounders? How you guys doing today on a Thursday? Welcome in. Welcome in. Thank you for being here. We're going to be going over EtherFi tonight and it is specifically for one of our audience members. Uh, shout out to the sat seeker. Thank you for being here. I appreciate that you came to the stream. What is this window capture? That's not the right thing. There we go. That's where we need to be.

5:35All right, everybody. Well, hope you guys are having a good time. We had a really nice pump what, yesterday with Bitcoin and it gave it all back. Gave it all back. Let's talk about a couple of stories going on right now. Some relevant cryptocurrency news as we give a moment for everybody to hop in. Sat Seager says, "Thank you, sir. Thank you for coming to the show. I appreciate you and I hope your young one is born soon and you don't

6:06have to wait too long and everything is exactly as it should be, happy and healthy." Amen. All right. So, tonight Zcash upgrade could lock 16 million >> in Ze Zcashcoin, right? That's the ticker. So Zcash is approaching its NU7 network upgrade. So an upgrade and I believe this is the one that had to do with some postquantum security stuff like that. Pay attention to that

6:37narrative with potentially major consequences for holders using its oldest shieldish shielded transaction pool. See if I can talk tonight. Approximately 12,226 ZEP coins valued at nearly 16 million in this morning's report remained in the legacy Sprout privacy pool. NU7 though retires in older transaction format, meaning remaining Sprout coins become unspendable once the upgrade activates. So they need to campaign hard

7:11to make sure that everybody knows this before they do it. And there will still be people who will just have lost access or they just won't know it's coming, right? They won't know it's happening. They they checked out. It happens. This last dump made them break their computer and now they can't see anything. So, the activation is expected around Thursday evening, although the exact time depends on block production, of course, right? They

7:35usually set a specific block to do it on. The NU7 also reduces Zcash's target block time from about 75 seconds to 25 seconds. A future upgrade could theoretically restore access, but that is not guaranteed. I guess see how much push back and how much is actually locked up there, right? A blockchain upgrade intended to modernize security and improve performance could make millions of dollars in existing cryptocurrency

8:03inaccessible. So, is it burned at that point? I mean, it's not officially burned because they could do another upgrade and give access back. I just don't understand how Zcash didn't see this coming and they didn't just leave themselves an option for people who are already in the pool to cash out through some kind of portal or something. I don't know. I'm not a dev. So, should a decentralized blockchain ever intentionally make existing coins

8:29unspendable even to remove outdated infrastructure? Do they need to leave an ability for those people to get out or can they do as they please cuz it is their project? If you're just rolling in, smash that like button, subscribe. Welcome to the Underground Crypto Deep Dive Research Show. We're just kicking off here with a little bit of news while we let people roll in. And we are going to be going over EtherFi tonight on our token autopsy series that we're doing

8:53right now. So, Samsung wallet launches USDC stable coin accounts on Salana integration everywhere. everywhere. Everybody's like, "When adoption?" I don't know. There's a lot of adoption. Just because your neighbor isn't downloading, you know, Coinbase and and trying to buy stuff at the store in Bitcoin doesn't mean that that's how it works at all when it comes to adoption. The big players have to adopt it. Then the little people will do as they're

9:19told. It's a it's a it's an unfortunate truth. That's usually how it goes. Samsung officially launched its stable coin account feature today for eligible US Galaxy users. Users can buy, hold, send, or receive USDC directly inside Samsung's wallet. Approximately 82 million Galaxy devices in the US are compatible. According to Samsung's announcement, the USDC transferred to other eligible Samsung wallet users and compat compatible external wallets carry

9:50no Samsung transfer fee. So apparently no fee on transfers. Eligible users can send funds to qualifying bank accounts in more than 60 countries subject to destination uh dependent fees. So where you're sending it that the fees will apply there. Right? So one thing I want to say here is look now you can send to bank accounts in more than 60 countries. Do you see the the connecting with the big players

10:22around the world to move money around? Bastion handles account infrastructure with Coinbase providing sub custody. Users must be at least 18 years old, meet device requirements, and reside in the eligible state. New York is excluded. Who would have thought? Cuz you know, New York is so progressive. Where's CCP at? We need him here tonight. I believe he's in New York. They're so progressive that they don't let anything new in crypto ever happen.

10:49It's so funny. This moves or this removes a major adoption barrier. Users can access dollar-dominated cryptocurrency from a familiar smartphone wallet without separately managing private keys. It also places Salana in the infrastructure of mainstream consumer technology product. It's a big integration. Will people eventually use stable coins without even realizing they're interacting with blockchain technology?

11:17Abstraction. We've been screaming it from the roof. the rooftop chain abstraction. This is a form of wallet abstraction. Abstraction in crypto. And you see it just means to hide the complexities of what's going on the blockchain and things from the user. So they don't even know that they're using it. And look, Samsung chose who? Salana. That should tell you something. Kraken's parent company buys a tokens and major

11:45DeFi investment. Payword. that is the parent company of Kraken. The it literally says that in the next line getting ahead of myself announced that an affiliated fund and its asset management client have purchased A tokens on the secondary market. That exact purchase amount was not actually disclosed. Earlier negotiations reported involving about 250,000 A tokens and a proposed 15% equity stake in the A group. Today's announcement confirms

12:15those token purchases, not the equity acquisition part of it. Payword and a exploring additional collaborations. A reports approximately 33 billion in net deposits and 11 billion in active loans. Why does that even matter? Well, an established centralized exchange operator is investing directly in major decentralized lending protocols. Again, an established centralized exchange decentralized lending protocols. Why would they do that? Probably because

12:49they're going to offer it on their apps. So, this suggests a potential future in which centralized financial services increasingly integrate DeFi lending infrastructure. This is a sign of DeFi reaching institutional maturity. Or could closer relationships with centralized companies compromise decentralized governance? Most certainly at some point in some way that would happen. But decentralized governance is a very interesting topic in and of

13:17itself because uh it it has ways of being gamed itself, right? It's not perfect and decentralized. Melissa says, "That's awesome. I didn't know this. And I have Samsung. Going to have to check it out. Yeah. And you'll be able to travel all over the world and uh you know, I guess do business, pay for things. I'm sure it'll get integrated, especially as the years go on, 5, 6, 10 years from now. Probably be easier to go to another country and

13:46spend USDC right from your phone app wallet. You know, it'll be about as good as just giving them US currency, right? So, EtherFi. Actually, I think I wanted to go over here first. Yeah. So, let's come here like we normally do. So, we got Ether.I number 98 by market cap. So, in the top 100 of cryptocurrencies, but in its max chart, it says it's down 88.4%.

14:18But when you look at a max chart and you see how much it's down, you have to take kind of into relevance how long it's been around. If it's down 80% from 2020 is very different from being down March 18th, 2024 token generation event or somewhere close to that just March 2024, early March, mid-March, whatever. And then it immediately kind of skyrocketed to looks like $7.91. Let's see what the exact number was. $853. And it is down 93 uh yeah 93% from then. It was about

14:53two years ago. All-time low was about five months ago. So, I mean, you guys just do the math. Oh. Uh, $8.50, we'll call it all-time high just to round some numbers. And right now, it's worth 50. Can it get back? The the the ultimate question. This is what people do in their moon math, right? They go, "Oh, it's 55 cents. It's been as high as 850. If it goes back to its all-time high, I'll make a bunch of money. Pause.

15:24Tokconomics. Got to know your tokconomics. If you don't know your tokconomics, then how do you know what the likelihood of it being able to go to its all-time high again? And what could keep it from doing so? So, we flipped this price on Coin Gecko, one of my favorite places to be to market cap. And let's take a look at that. This is a max chart market cap. Look at this. So, where was its market cap? Back here. 896.5,000.

15:55Now, I wish I had a chart. This would be a really cool chart. I might have to build this that actually plotted the circulating supply in real time. If you know your tokconomics, you would know why that is so important. Because when we had this all-time high, looks like March 27th, 2024. Actually, that's not the all-time high. When it comes to market cap, look at this chart. Market cap and then price. And notice how they are very, very

16:25different. Look at that. That little pump there doesn't do anything for price. So the understanding of the relationship between market cap, circulating supply, and max supply in my opinion is one of the key to being a good speculator in this market. But that is my opinion. Never financial advice. Welcome in. Welcome in. Uh, you have to put the exclamation point in front of roll. Here, I'll show you. It's a bot or it's Yeah, I guess it's a

16:55bot that allows you to do that. So, you have to put the exclamation point in front of things. Welcome in. Welcome in. So what I was really getting at is if I could look at market cap in a way I can in infer a little bit about circulating supply because if your market cap is higher here but your price let's see that would be October 3rd now we'll bounce back to

17:24price I'm on something guys follow with me follow with me then we'll go to October 3rd look at that although your market cap went to a all newtime high. More money in the project than any other time. Your price pumped but only to a $1.81. What does that tell you? More tokens have come out into the circulating supply since when it first came out. And now it takes way more money or capital in its market cap to actually

17:59get back to its all-time high per token, you know, dollar denominated. So that is super important. If you have no idea what I'm talking about, throw a 111 in the chat. If you understood perfectly what I just said, throw a 77 in the chat. A 777 triple sevens. And if you are somewhere in the middle, put a 333. Let me see out there if anybody was even listening. So our circulating supply though is somewhat good news. 998 million. It's a hundred or it's a,000

18:33million that make a billion, right? So your max supply is a billion and you're almost there. Like you're so close to being fully vested. Melissa says 111. Really? You have no idea what I'm talking about, Melissa? I would expect you to understand that. Hey, we we'll do some private classes. We'll do some tokconomic private classes. Lol. Satseker, I know you look at a lot of charts, so you definitely know. I like

18:59how he threw the uh the exclamation point in front of it. We have 20 different visuals, by the way. One of my favorite ones, I'm going to drop it now, is the splash. So, it's got an Ethereum contract, a base contract, Arbitum uh contract, arbitrum one, and scroll. Scroll I'm not as familiar with. I've seen it around. I need to do a little bit more research on scroll. But either way, base arbitum and Ethereum are all Ethereum basically

19:27because these are layer 2 of Ethereum. Where can you get it? Where can you get yourself some Ether Fi? Well, if we go to centralized exchange Oh, she put 0777. My bad. I had a feeling that you definitely understood that one. You're playing with me out here. All right, so welcome in anybody. Smash that like button if you're just rolling in. We're going to be talking about Ether 5

19:52tonight. We're just laying it out for you. So here's where you could buy EtherFi if you decide that you like it. What you do with your money is your decision. Don't blame people on the internet. We just do crypto research. OKX, Binance, Mexi Global, Weeks, Gate.io, io deepcoin and nine other pages of places that you could get it. So, most places you get it. Look, Coinbase, you can buy Etherfi on Coinbase. And I will know if I want to

20:16drop some money into this personally after we finish this token autopsy report, which I have all laid out for you guys just like we have been doing night after night. So, with no more delay, let's move on over there to our setup. Bang, bang, bang. So buybacks, but for who? Etherfi. And of course, your ticker, ETHFI, is the ticker for the token. What is the difference between a project and a token? Are they the exact

20:50same thing? Let's raise that crypto IQ, I tell you. That is one of the main main goals of this channel is to raise people's crypto IQ so that they could be a better speculator in the market. Now many people are just going to refuse to educate themselves. But this has nothing to do with crypto. That is a people thing. People do that to themselves and they throw money wherever and a lot of 2026. So a useful app and a good token. Well,

21:21what actually works? Products can earn reoccurring fees from staking, managed vaults, and card activity. What's the catch? Well, token value depends on who receives purchased ETHFI, which is the token. When you see it like this, we're talking about the token, and what those recipients do next. So, you have revenue, purchases, recipients, and selling. And we're going to walk you guys through this in about 60 slides, which is different from the 200 plus

21:55slides that I was doing before. Just trying to dial it in and keep it just right what you need to know and not everything else. ERC20s, right? This thing is called Etherfi. So, it's probably built on the Salana blockchain. Wait, no. Dang it. I really should raise my crypto IQ. All right. I did that on the fly. Don't know where that came from. Ether.Fi obviously is Ethereum. We have Ether Fi 18 decimals token unit. that's

22:24probably not something that you care to know. Chain uh chain check here onchain representation. Basically, this slide just gives you the contract address so you can confirm that you're looking at the right project. But I would do that on something like Coin Gecko, right? Or Coin Market Cap. Uh what ETH does and what it does not do. So, as you've probably figured out to my regulars here, the way that these token autopsies work. Well, first we're

22:53going to open up and not even talk about the token. How could we do such a thing? Well, we're going to talk about the products because you have the company. The company made products. It's got ETH.I or Ether.Fi. Usually when you have DOTFI, we're talking finances here. We just read a story about a being uh tokens being purchased by Payword, which is basically Kraken's parent company. So, you can see how much these things actually matter. You get a big

23:22integration for Ether, and I'm not saying you will necessarily. I haven't heard anything, but say you do. Well, it can bring a lot of money into these ecosystems. But before you really go dropping a, you know, a nice shiny penny on any of these crypto tokens, you should probably understand what the product does and what relationship the token has with the products or the ecosystem, right? So you have a company, they make products, even if they're

23:51digital, those products while they're operating, the way those products work together create the ecosystem around the products. How well does the token benefit from the ecosystem of those products? Now, why is this important? Well, it's pretty simple. If you don't have what we call token value capture, which is the same thing as the token benefiting from the ecosystem, then you're less likely to have a relevant coin that goes up in value. It

24:25is what it is. So, what works, right? We have governance participation and we have staking and membership benefits under the current rules. The catch? Well, no ownership of the card issuer. So, nobody owns the card issuer and no legal claim on all the products revenue. Now, what I was really getting at there, and the reason why I I didn't quite finish my thought, is if you don't have any value in the token, you are

24:57relying completely off of speculation, right? And so if you buy a coin and you don't know anything about it, well, you're just basically hoping that it hits a narrative and everybody rushes in and buys it and then you know that it's time to sell, which even if you get lucky enough for that to happen, most people will not sell when they should because hindsight is 2020 and you're in the moment. So five product doors, separate risk. First we have stake and

25:25earn the ETH recipient and manage strategies and different backing managers and exit risk. So you have staking right and you earn from staking most of you guys should understand that cash and borrow direct pay spends a balance. Borrow mode creates debt against collateral. So DeFi lending markets crypto plus permitted stocks and metals. The latter excludes the US and some markets. So they have some markets as well. Well, one account does not make

25:55every product the exact same risk cuz the products are not doing the same things. So, you have ETH versus wrapped ETH. That's what the W stands for. So, ETH is a rebasing receipt. The token balance can grow as Ethereum staking rewards arrive. Wrapped ETH is a wrapped receipt. token count stays steady while the EU uh representation can grow. So again, this is just some tickers that you'll see a lot in their

26:33ecosystem. These are essentially when you see these type of things, they are receipts, right, is what they really are or or to show that you have ownership of some kind of share in a pool or whatever. It's like your proof that you have something locked up or staked or something like that. So, I want people to think that when they see wrapped assets or they see other versions, VE stuff like that of the same token they're familiar with, there is a

27:03receipt and a proof of something going on there. Optional restaking is a separate choice. Well, standard staking, take ETH or wrapped ETH, right? It looks like they have them in a pair and you track Ethereum staking without bundled ABS slashing exposure. Slashing is a penalty that you get if you do anything funny in the ecosystem or as a validator or stuff like that. Separate strategy. A user can opt into WH right as manage symbolic strategy.

27:38Added dependencies. Well, a separate strategy brings its own penalties and reward sources. So in a financial type product, you're going to have different things like staking vaults, maybe a stable coin, you're going to have these different mechanisms to earn or to put your money to work. Each one of them operates different. Putting your money in a vault will give you a receipt of some sort that shows your share in that vault where if you

28:10stake, it's a totally different mechanism. Usually has totally different percentages of reward for doing it. So when you're doing something like staking or a vault, how do you know which one you want to do if you don't understand what they do? So the legacy windown is dated. So under 1% that is that was reported. So under one 1% was the reported legacy EGN IGN. I don't know how I'm supposed to say it. I forever said uh IGN layer remainder in

28:44August 2026 in quarter 3 removal in quarter 4 credential changes were plans. Now if you have no idea what that meant, we're going to get into it here in just a minute. So, we always use an illustrative example to kind of make it so you can kind of follow how this works through the ecosystem. And we're back with Maya. So, Maya starts with Ethereum, right? She has Ethereum. She has two Ethereum

29:10and the separate spending balance. So, the action is she takes one Ethereum through the supported interface and receives ETH. So, basically, she's put her ETH into ETH. She accepts variable ETH rewards and staking contract risk. Basically, she's going in here to get some rewards and with it comes some risk. She owns an Ethereum receipt. She has not bought any ETHI token. Wrapping the receipt. Well, now we have

29:51a new action. Maya wraps her ETH into WE E. So weird to say ETH. So you have W E before using supported lending markets. This almost I don't know if this is exactly the same here. We're going to get into it some more so I'll confirm. But it's basically like reststaking. You can stake something and then you can restake it to earn even more rewards on it. The risk here is that the balance format changes when you go from ETH into W E which is just wrapped ETH. Okay.

30:27Lending ads market oracle and liquidation dependency wrapping does not create a second pile of Ethereum. Usually these re staking type mechanisms are for securing the network. So a $50 card purchase, right? So, it sounds like they have a card associated with this, right? So, spending balance. Maya funds cash separately from her staking receipt. She uses the balance for a $50 purchase. Issuer term governs the settlement in FX. If cash back, if paid

31:02in ETHI, its dollar value can change before claim or sale. So again, if you're paid in a fluctuating asset, any any cryptocurrency, you know, your actual amount of money can change. That's what they're saying here. If you're paid out in Etherfi, the dollar value of that EtherFi can change if you let it sit around and you don't claim it right away or convert it or swap it, however you want to say it's the same thing. So

31:31borrow mode is debt. So we're going through the different functions of EtherFi, right? and what the products look like when you use them. The choice while Maya considers borrowing against collateral without selling the collateral alone obligation. Well, she stops before borrowing to assess interest and liquidation. So before she actually does it, let's put it this way. She wants to borrow against some stuff that she has. She wants to take the

31:59stuff that she has and put it as collateral. effectively kind of locking it up, making it unavailable so that she can get a loan on it and double up or they don't usually give you 100% of your collateral, right? So, she might get 50% or 75% of her collateral, right? Then she could take that and go somewhere else, but she needs to stop and look at what her interest is that she's going to be paying on her loan week, month after month, right? And of course,

32:28liquidation, this is different. So, if you go to the bank and you get a loan, uh, they don't usually liquidate you. Now, there's bank calls and stuff like that. Usually only happens on really big loans and stuff when the bank's in trouble. But anyways, most people who who deal with a loan in any type of way are never really concerned with being liquidated. That is a different risk here out in the world of DeFi. So, a separate ETHI stake. So Maya separately

33:00buys 100 ETHFI. She stakes those tokens for S E5. The S just stands for staked, right? It's a receipt. ETHFI price. So what is she exposure to, right? Well, the price of ETHI, of course, she's exposed to that. And the staking vault variable membership reward rules now apply to her or matter to her. This is all about understanding the the products, but then what the risk is, right, when you're using them and the

33:29things that you need to know before you get into them. So, say you do all of that, use the products, you made a little bit of rewards, you want to exit, right? Well, there's three doors. Token position, you can sell ETHI into the market, right? You could swap it for a stable coin. You could request a S EFI withdrawal and then you could redeem ETH for wrap E through its own routes, right? You can convert them back and forth and you can

33:55pay any card debt that may remain also as a form of exit, right? Initial mint versus current supply. So now we're talking about token generation stuff and when the project launched initially 1 billion mint but the current supply is only 998.5 million. The initial mint and current Ethereum total supply differ by about 1.4 million ETHI or one or 0.14%. Official document rule out further issuance. So, one thing you want to be

34:29really careful of is having all the tokens minted doesn't mean all the tokens are vested. Invest is just a fancy word for tokens come out into the circulating supply. Cuz if 1 billion was minted and that meant it's in the circulating supply, you wouldn't have a different number of circulating supply tokens. Seems obvious, right? But I've seen people totally miss that. Who holds Ether? Labels matter. You have treasury.

35:01Treasury listed safe. It's a weird way to put it, but that's probably their own um title that they have for it or something because the stuff is pulled directly from the documents that are provided from ETHI in other places. So that they hold the treasury basically has about 15.3%. Staked ETH vault has about 10% 10.9. Let's call that 11 almost. And then you have unclassified A which is a subgroup or a group here of addresses. They have

35:28about 10% and then you have unclassified B 5.4%. So the vault aggregates depositors. Contract balances do not identify beneficial owners. We have 93,124 holding addresses. And remember addresses are not people. One address could belong to an exchange and hold a lot of money representing a lot of different people. Allocation well insiders and incentives government governance allocation. This

35:59has been updated August 2nd, 2025. So we don't know past then I guess you have the treasury with allocated 21.6%. They got to pay developers. They got to drop airdrops whatever else. Oh wait, user airdrops are separate. That was actually 20%. So right here we're already at 40 something% of the supply. Then we have partnerships and liquidity. That's only 3.9. Core contributors got 21.4%.

36:32And investors got the other 33.7. So right here, if you've been raising your crypto IQ, the red flags or bells and whistles should be going off saying, "Well, who has the ETHI? Did they already get it? Are they waiting to get it? Is it locked up? Is there a time lock? What is going on? When is this stuff going to be in their hands and they'll be capable of selling? Or do they already hold it and they're capable of selling already?"

37:03Supply feeds and vesting disagree. So price feed label. Coin Gecko treats the current total as circulating. That describes the feeds accounting, but the release schedule is different. Contributor models continue into early 2027. Estimates and beneficiary restrictions need reconciliation. And I hope that we get like a a detailed vesting schedule here because EtherFi is kind of down a lot. Could tokens being released be a big part of that? So you

37:39have your staked Ether EFI staked E5 vault, right? S 86.9 million, call it 87 million shares and about 108.9 almost 109 million EFI actually held in it. A failed call is not zero reward though. So the help page describes variable compounding rewards through a share account model. What's the catch? Well, reward rate reverted. Archive access prevented a verified 24-hour rate comparison. So a the current share rate

38:16cannot be converted into a verified APY from one sample. Can locked insider harvest liquid rewards? Basically, insiders in their tokens, can they get rewards? So, the largest address here has about 9.2 million in it. And we don't know who these people are. Second address about 8.5 million. Third address 6.5 million. And fourth, which is the safe, right? And I think they mean safe like a bank, like a vault, not like safe like

38:49it's guaranteed nothing can happen. At least I hope not because that's a bad thing to say in crypto. Anyways, that's your treasury. So vesting beneficiaries have not been mapped to these staked E5 positions. So the documented purchase stream weekly 100% of ETH withdraw fee revenue funds EtherFI purchases. So that is a confirm in some way shape or form of a buyback. And 100% is pretty good, but it's it's

39:22not 100% of everything. It's 100% of withdraw fee revenue on the monthly. A portion of stake liquid in cash revenue funds purchases. Okay. Well, we just got very much more vague here. So, over here we were very specific. 100% of withdrawal fee revenue. Over here we have a portion. No idea what that means. Of stake, liquid and cash revenue funds purchases. Well, when does it happen? Every month, but how much is happening? We don't know. A

39:52portion. Destination. while documents describe staked efi redistribution when possible liquidity allocation at DAO foundation's discretion. So sometimes the DAO or the foundation basically the same thing at their discretion they may allocate some liquidity to stake ETHFI users but when it's not like a it's not an immutable smart contract it's not always going to happen one way and it's unchangeable. So a zero balance is not history. Zero E5. The

40:24Foundation wallet snapshot balance is zero. Earlier transfers and staked ETHI documentation distributions without established purchase costs. Basically don't worry about that. The destination changes the interpretation. So older track line DeFi Lama holder revenue says 0 over 30 days about 8 8.9 million over a year. So, in the last 30 days versus over a year, the newer reported programs, Block Works, right, says 2.15

41:00million Ether 5 bought since September through its October 28th report for cash back. So, we're going to go with Block Work numbers because I think Blockwork is a better product than DeFi Lama, but it's kind of all over the place. Depends on what kind of data you're actually looking for. So, fees, retained revenue, and profit in a 30-day window. Tracked fees was about 12 million retained revenue. So, don't confuse fees with how much money they made because other

41:32people have to be paid because other people are a part of the network, right? Or the ecosystem. They have to get paid for their participation. Retained revenue was only 3.8 8 million where over here in a year you have 180 million tracked fees and retained revenue about 43.8 million. So tracked retained revenue is not audited net income or an automatic holder distribution. Right? So don't look at those numbers and think that that's going towards the people

42:00holding the token. Cash well spend is not margin activity. Black Works reported about 134 million of card spend in its trailing 30-day window. Economics, interchange, FX, borrowing, trading, and membership can earn revenue. Cash back is a cost and boundary, the separate issuer, has its own terms. Know your customer stuff and settlements and geographical restrictions. The actual issuer, right? Okay, so EFI gives no ownership and Visa

42:36or the card holders, what crypto finance ecosystem product doesn't have a Visa card wrapped up in it? I don't know. But Visa's definitely got their hands in there because they can make it happen. They can make you actually be able to issue cards, which was was seen for a long time as like very uh trustworthy and very adoption, right? You saw a lot of them go that way. So value capture. All right. All right. So, now we start getting into the sauce here as we come

43:05into about the middle of this uh token autopsy report. Purchases and receipts. Well, what works? Of course, historical token distribution, staking and membership utility and revenue funded purchases. The catch? Well, recipients, they can sell again. No automatic share of every product dollar and retention and incentive costs still matter. Net purchases after selling and incentives are the economic test. Three exits with three different clocks

43:35or three different time frames, right? So you have EtherFi sale market depth determines executable price. You got to have liquidity in order to sell anything. Reported volume does not guarantee it. Stake ETHFI withdraw. Well, a request enters supported withdraw processes. So you can request your withdraw, but then you got to wait. Ethereum and vault redemption, right? Okay, so you have pool liquidity is going to determine how much and how

44:00quickly you can get money out of a vault. Validator exit or strategy cues determine settlements. Vaults can be set up in different strategies and things. So, it can vary depending on which vault you're using. That's why if you choose to use a vault over something like a collateral loan or staking, you might want to really specifically know what that vault strategy is, right? And today's world, you can make it a little bit easier because you could go

44:27to like Grockbot or Chatg GBT or any of the the AIS and you could probably get a quick breakdown if you're not going to sit and read because you might not even understand it even if you sat and read the whole strategy. So, selling a token does not cancel an issuers's bill. Current staked ETH by guidance up to 14 days if you were wondering. So cash web and iOS Android users use the web right and personal wallets use ETHFI interface. So these are the routes in

44:59which you get things done. Time expectation the part you probably care about. Well current help page says up to 14 days for cash web and iOS. For older governance, FAQ says about 10 days. And for personal wallet using EHI interface says keep cash active until completion. No fixed membership lockup does not mean no fixed membership lockup does not mean instant redemption. So just because you're a membership kind of person who has that going for you doesn't mean you

45:30instantly can get out. Audit coverage has product barrier. So staking upgrades, cash borrower and cash price feeds. We have this Storra rolls controls and withdrawals, cash borrow, Storra lending migration, and then we have cash price feed paladin feed adapter and balance. These names before it are probably just names they give so that you can organize your ecosystem. 45 plus reports cover different scopes. Each live

46:06implementation still needs a reviewed commit match. So what works? Once again, recent staking and cache reviews cover named modules and dates. Staked ETHI has a separate boring vault audit link. And they mean boring like boring into a mountain digging a tunnel. Not boring like it's boring. All right. Anyways, the catch, no complete live code map is out yet, right? A core review does not cover every issue. Bridge concrete vault

46:38or beta strategy. What are we talking about? We're talking about audits and things are not fully transparent and up to-date and we don't have all of the information on the audit of every product that they have, which is somewhat common of a lot of different things. So the VETA atomic Q path accepted previous approving users as solver. So the September allowance incident. So there was an incident. It was in September. The entry point where

47:06it started was a beta atomic Q. The path accepted previously approving users as solvers. The allowance while the attacker used those approvals to move liquid Ethereum from about 11 users. The scope. Well, DeFi Llama records about $43,260 on September 11th. Full remediation was not independently established, so we don't know if they were made whole. This liquid Q incident does not establish missing backing in the base ETH token.

47:40So, now we've talked a lot about the product, right? And the ecosystem. Therefore, what about the token? Emergency C controls have two edges, right? So they have some emergency controls within the governance. This is usually a good sign that we're getting towards the token time lock gated upgrades, right? So there's a time lock before upgrades can go live or roll out. Roll controls and emergency tools can limit damage during an incident. So

48:05there are governance emergency controls. The catch is that your UUPS upgrade blacklister and revoke admin create control dependencies. This is uh fancy terms that they've given themselves for different things inside their emergency controls, right? Current role holders and delays were not fully read. Bridge price and liquidation risk. So you have a bridge. Remember most exploits in crypto have to do with some kind of bridge exploit. A wrapped e

48:37representation on another chain adds bridge and feed dependency. Collateral. Well, a market price drop can trigger liquidations while eventual ETH redemption remains possible. And optional strategy here, optional restaking penalties and managed vault cues add further risk. So strategy optional restaking. So if you restake, you are adding additional risk, but you could be adding additional reward. the company Dow depositors and token

49:05holders. Well, third-party operation or operate operation uh license services. The foundation DAO sets token program. Recipient contracts I'm just laughing because I totally messed that up. Recipient contracts govern depositor claims. So, receipt recipient, sorry, contracts govern depositor claims. That's the part that's important here. No common bank account. Well, company growth need not

49:37give ETHFI an enforcable profit claim. Cashback and borrowing revenue need product level reconciliation. No common bank account. Consolidated revenue is not automatically distributed to staked ETHFI. So what the company makes doesn't automatically get dished out to the people staking ETHI. That's an important distinction. So where the moat sits. So we start talking about the mo how it stacks up against its competitors. We got Lido,

50:06Liquid ETH integrations, right? We have reststaking and vault providers, manage strategy returns, a credit rail and Athena, plasma link cards, spending and cash back, strongest competing areas. So these are its biggest competitors. And so for Lido, you have the restaking and vault provider, just to make this clear. And then for a right in Athena, you have the plasma link cards. The advantages connecting services retention and net margin decides how durable it

50:36is. What execution actually earns, right? So a live card operating products, right? A live card asset products and recent re reviews show execution beyond an airdrop. Announced expansion. Well, concrete and ETH gas add possibilities with unproven service level economics. And the next recip receipt recipient, I don't know why I keep wanting to say receipt. Next recipient, a current reconciliation from

51:08revenue to purchase to recipient. A 50 million authorization is not proof that 50 million has been spent. It just means that they've authorized to spend. It doesn't mean that they actually did. I appreciate you saying that, Melissa. Valuation without a fake PE. Right. So, we have the token price of about 53 cents and a market cap here of about 535 million from the snapshot when we took it, which was today. Jurisdiction and and sustainability. What is going on? I

51:47ate like a ton of food before this and I'm drinking this coffee trying not to be sleepy here. So product conditions right cash requires supported jurisdiction and checks market stocks right market stocks metal excludes the US so they have metals and stocks exclude the US right this is about jurisdiction and sustainability where is ETHFI even accessible from capital at risk well borrowing adds debt and liquidations

52:19ETHI rewards add price risk all right let's get through some of this stuff ETH gas service protection concrete concabor. Oh, okay. Yeah, concrete is not we're not talking about building parking lots, right? Talking about concrete confirms a multi-asset vault collaborator. Dated announcement. So, concrete is a company or a product. Dated announcement will outpost date the news to November 4th. No verified funded balance fee split or live vault

52:51deployment in this review. So we don't really know what all that entails. So buybacks have four steps, right? Revenue from the business income arrives. So they get paid. Then they purchase tokens. Those tokens that they purchase go to stakers or customers. And those customers rather hold or they sell. That's up to them. The strongest bull case here, right? Growth before burns.

53:23Revenue funded purchases can win loyal customers. Membership can support holding. So if you have the membership, maybe you would hold or more likely to hold. And a repeated market buyer can matter without a dividend necessarily, right? The unresolved split. While customer acquisition can create future selling and lasting holder value depends on retention costs and the token implementated share and of course what

53:52the competitors are doing is going to determine if people stay in Ether or go somewhere else. So that serious growth case earns points but it still needs reconciliation. So a bull and a skeptic right a bull purchase right economic claim is that purchases create demand in customer loyalty. We need to see a funded swap and retention right. A skeptic will say well recipients can sell. Company growth can

54:23bypass the holders so what does it matter? Net margins and recipients need to be traced. And we'll get into our scorecard tonight. Well, for utility and adoption, it scores pretty high, a 17 out of 20, which is one of the most important parts, right? The token needs utility and adoption. In order to even begin the conversation about is the token useful in its economics, it needs to be utility, which is its usefulness in the

54:52economy. Anyways, token value capture got a 13 out of 20. Leaves a little bit to be wanted here, but not that big deal, right? So, historical stake ETHI distribution, member utility, and reported cashback purchases. That's why it's getting a higher score, but redistribution can be sold. Current swaps and older holder revenue line do not yet reconcile. So, what we're really saying here is buybacks are great, but

55:22there's no burn. There's no true path yet towards deflationary circulating supply. And that is what we would really love to see to be much more bullish or to see a much better score here. Right? So let's see. We have a nine out of 15 for tokconomics and supply. Again, this will all be available to you in the Discord. Competitive mode, 11 out of 15. Security and decentralization, a 7 out of 10. Looks like it's going to get a

55:53pretty good score. Catalyst and execution, what it's got going for it into the future. And what's going to get it there? An 8 out of 10. Risk and unanswered questions a 6 out of 10 because the project's pretty straightforward. Not a lot of unanswered questions. Giving it a 71 out of 100. Now, of course, if you get a pass verdict, that's great, but I think anything above a 70 is worth taking a look at, but you

56:18have to do your own due diligence and your own research. Do your own research, right? So, what earns an upgrade here? Well, payment proof, ongoing purchases and final recipients, plus a clear reoccurring staked ETH share, sustainable growth definitely helped the case. Net cash margins after cash back and beneficiary level vesting or staking transparency and risk removal, proof of a final legacy exit and remediation protecting

56:45relevant Q users. Here's our leaderboard so far. You got a Uni and Link all would pass verdicts. And then you have Sky right to well onto the next page of projects that are in the 70 region which I think is a pretty good score. The token autopsy report is meant to be difficult, right? So it ends here at about 22. So there are a lot of projects that wound into that watch verdict, right? It's worth watching. It's worth knowing about. not

57:19necessarily a pass. And I don't know why it keeps putting this conditional pass on on on AVAC. I keep keep fixing it and it keeps putting it back on there. It's driving me nuts. All right. Business venue token wiring, right? So, we have a token score. We're comparing it against some of its competitors and the scores that they've got. Right. So, we have 71 watch verdict. A of course got a 82 in a pass. Lido we have never done right and

57:50virtual got a 55 which is very low and of course then we have our sources which you can find in the uh discord that is linked down in the chat. Go check that out. We have a free discord and all of this stuff will be organized in that free discord. How's everybody doing? Satseeker, did you learn anything about Ethi? Let's talk about Europe's largest asset manager bringing major equity index fund to Ethereum. So, we saw Samsung bring a

58:34bunch of attention and money into Salana. Now, Europe's largest asset manager is bringing some attention to Ethereum. Amundi. Amundi. I don't know how I'm supposed to say that, but that right there, they announced a tokenized share class of core STOXX Europe 600 index fund. I live in America, so this the index funds and stuff I'm used to hearing about are totally different, but if you're from Europe, you probably know

59:01what this is. Developed with European asset servicing uh firm cases. I don't know how I'm supposed to say that, but it's probably fun to watch me fail at it. The underlying fund has approximately 22 billion euros in assets under management. Its index provides exposure to 600 European companies. The new share class is issued on public Ethereum. The fund remains available

59:30through conventional investment channels. Amundi previously introduced tokenized money market fund shares. Institutional tokenization is expanding beyond cash-like assets and treasury securities into mainstream diversified stock market investments. Unlike synthetic token representating individual stock, these token represent shares in an existing regulated investment fund. Could blockchainbased fund ownership eventually replace

1:00:01conventional brokerage recordkeeping because the blockchain keeps that record for you. Satseeker says, "Yes, I did." Thank you. You're absolutely welcome. I appreciate the recommendation. If you have a coin that you would like to recommend me to go over, join that free Discord and throw it in the main hangout and come hang out with us. So, very good info. I just wish my coin had a high score like this one, but

1:00:27no. But now I know. Hey, that's why we try to be transparent and fair and not uh just do what a lot of people would do and get some money in the back end for shilling a token and then act like it's great. Satseeker says, "Uh, Melis or Melissa, if you message me on Discord your coins, I'm happy to do some TA opinions on them." I would encourage you to do that, Melissa. He does do some very interesting stuff. Although, Satseeker,

1:01:10I'll tell you, Melissa is quite good at technical analysis herself, but you do a good job of looking at things like its pair against Bitcoin and some other more intricate things that she might not be looking at. So, I think that's a good a good balance. Hey, whatever you find, if you uh drop some charts in the different tabs in the Discord, right? If you're going to do the work, might as well record it, right? So other people can can see it. Binance and

1:01:38dairy bit dairy bit cut off signal plus following security warning. So, one week after the historical Binance hack, another security uh warning has emerged, Binance in their Durabit revoked API keys associated with Signal Plus. So, I guess Signal Plus, a third party crypto trading and derivatives platform, is who they're cutting ties with or isolating for the moment. Signal Plus reported a potential security incident involving its infrastructure. Binance

1:02:13proactively disabled integration connected to that platform. Darabit also removed affected API connections following suit after Binance. Then Binance stated that its own systems were unaffected and customer funds remain safe. They were quick to get that out there, right? Customers were advised to review open orders and positions before connecting. API keys give third-party trading tools or just third party whatever access to cryptocurrency

1:02:41accounts. Compromised keys can potentially ena uh enable unauthorized trading even without withdrawal permission. The incident highlights a different security threat from the previous weak compromise of exchange infrastructure. Again, they moved pretty quickly. It seems like they were not damaged. So, a sophisticated third party trading tool becomes a dangerous weak point in cryptocurrency security. And some more new investigation finds

1:03:08that Marco Marcato Bitcoin hacked I still don't know how I'm supposed to say it. Bitcoin hack continued after exchange claim it was contained. So after they said it was contained, it was not contained and it continued. All right. So total stolen assets 48.6 million. There went all the money, right? The investigators found that attackers drained 36,000 Ethereum deposit addresses. That is very unfortunate. The

1:03:39unauthorized transaction continued for approximately 4 hours after the exchange publicly stated the incident had been contained. So, they lied or they just didn't know, right? Investigators identified possible connections to a separate BitMart security incident. I thought BitMart closed. Maybe BitMart's getting loose with their uh infrastructure there because they went bankrupt. I think I had like $50 on BitMart. Didn't even bother to withdraw

1:04:06it for more than 15 million and stolen assets were reportedly frozen with industry assistance. Marc Bitcoin has pledged to cover customer losses. All right, they're going to keep going. They must have a lot more money than I thought they did. The initial breach is no longer the only concern. Their new findings raise questions about whether the exchange understood the full scope of the compromise when it announced containment. That would be helpful.

1:04:32Injective gets a US ETF with staking exposure. Should we run and buy Injective? I don't know. I got to do a token autopsy of of Injective, right? Uh Satseker says, "Also give your opinion on any charts I drop. I love to learn others opinions. Absolutely. Melissa says, "Uh, sad no one else is here. This is the time that people should be here learning, not disappearing when the markets are down." How many times do I have to say this? I

1:05:07I feel your pain, Melissa. I really do. My group chats are quiet, too. Yeah. And being on YouTube and and across different social medias, it it allows you to have like almost like Satseeker says, the groups that he's in and stuff, it gives you a different metric than just price on a chart for Bitcoin or something, right? It's a weird time. We've had a lot of things going in America with elections. It seems like people were highly distracted kind of

1:05:32right before that whole thing happened, right before election night and stuff. We had Bitcoin drop and then it pumped like it was going to do something and then it dropped again. got all these rumblings of political stuff, geopolitical stuff. And in my opinion, what I've learned is these are the times to learn and look for opportunities when nobody's paying attention. When it seems like the hardest thing to do is to buy some

1:05:59crypto, like it just is like you almost have no hope. That's usually when all the money is made. That's usually the best times to buy. Historically, if we look at things like the fear and greed index, which actually we should go look at the fear and greed index, right? And yep, it's at 28. What does that tell you? I don't know if we're going to get real low again in extreme fear. If we get

1:06:28like close to like another low for Bitcoin, that would definitely set the stage, right? But how much lower are you really going to get? Unless we're getting like a new bottom or we just kind of go sideways here for a long time and people lose interest. But many many many many times this is the time to deploy capital and look everything's not way up like it was before. Everything's down. Pretty much all the gains on from the bottom how much the portfolio had

1:07:00gone up. Almost all of it's been given back plus some. So, if you missed opportunity, which you could be sad about if you're like trying to get rich in the next month, but if you're playing a long-term game, it just means another opportunity to stock up some more good prices. And when we go into the bull market, I'm not going to care that it went up, went down, went up, and went down again before it went up for real. Like, I'm

1:07:24not going to care about that. When you're playing a long-term cycle, you get a lot more breathing room, right? I don't worry about what the Bitcoin price is doing up and down within a week. And I'll tell you something, a lot of people who are trading, they're benefiting from maybe being a good trader and stuff. Most of them who are really wealthy have way more money sitting in projects, long-term spot

1:07:48purchases, than they do perpetual. That's just a fact. And I know a few of them, so I I know that this is true. This is time to learn and effing buy. Yeah. Yeah. Absolutely. This little dump, if you call it that, from this morning, we have been way worse. Oh, yeah. For sure. The thing is that some people are very emotional and the charts are a measurement of emotion. I'm know you've

1:08:19heard that said before. And so it really does seem like some people just can't help their emotion. And I get it. No matter how good you are at like discipline and emotion, you're going to find yourself being a little emotional sometimes with charts. Like when you're in that one minute and you you really thought it was going to pump, so you doubled down and it just dumped 80% more and you're hanging on by you're going to feel a

1:08:44little bit of something, right? And that's why if I do some perpetual trading and stuff, I do it honestly with peanuts, you know, a hundred bucks, something like that. Nothing crazy. Uh where the majority of my money is in long-term spot purchases, right? Not that I have near as much as I wish I did, right? If only I was banking off of YouTube like I see some people do, but I don't want to shill things on people. Don't Don't get it twisted like I I've

1:09:12never gotten an offer to do that because I have. >> But I think reputation long-term is worth more than a little bit of money I could put in by showing you a token that most of Another big thing is that most of my audience is uh more advanced. We're we're quality over quantity around here. And so most of you guys are more more advanced. So if I told you about some new memecoin, y'all would laugh.

1:09:39I'd be laughing too. Somebody told me about some new meme coin, I'd be laughing. Uh, I might buy $5 of it. We We all see what Sheba Inu did. Shibba Inu was from its time of inception up a million%. So sometimes I'll buy I'll buy five bucks. If it really hits, I'll watch $5 turn into 10 grand. I'm cool with that, but I'm not going to put $1,000 in it. No way.

1:10:05Well said. Yeah. Satseeker says, "Reputation is something you can't buy." 100%. And that's why it's really important, not just what you do, what you sell, but it's also very important who you work with and who you allow in the inner circle. And I don't mean in the Discord or something. I mean like who you work with, collab with making videos and stuff out in out in the public sphere, right? You will get paid by others giving back

1:10:32to you with their knowledge. Yeah. A lot of times that's exactly how it goes. If you're just rolling in, smash that like button. I keep thinking I need to be streaming later. Like I need to move the stream to nine o'clock. And you know what? I didn't even think about the time change, right? >> With the time change, I'm kind of wondering if I should move it to 9:00. Hey, Cam in the house. Welcome in.

1:10:59Welcome in. Said I remember who has helped me along the way. Oh, yeah. You always remember who was really helpful along the way. >> And who who kind of like acted like they'd show you something and and didn't really show you anything. Anyways guys, that's about all I got right now in this slow time for crypto. But we did another token autopsy. I raised my crypto IQ. I learned a little bit more about a project I didn't really

1:11:27know a ton about. Of course, I've heard of Ether Fi, don't get me wrong. But if you're just rolling in, you want to go back to the beginning of the video and watch our token autopsy and some relevant news tonight. Zcash might be messing up about $16 million worth of Zcoin. That could be fun. All right, guys. Stay underground. Stay crypto. Think long term. I'll be back. Tomorrow night is Friday, and uh I got some fun things planned. We

1:11:55got a lot of new games on the radar. I think we're going to do a stream where we just like play like all new games, right? We don't really play anything that we normally play. We might show Kendra at the end or something cuz we love Kendra. But I think we're going to do like a game stream where we just play all new games. And I really am considering doing uh moving the stream to 9:00. But I'm going to do a little bit of research and see

1:12:18if that really lines up with the time savings. Daylight daylight savings. I don't know. The time change, right? later y'all. Thanks for being here. I appreciate each and every one of you. See me in the Discord if you need me. Underground Crypto out.