Transcripts

Mark Walters – Armed America Radio Transcript

Mark Walters - Armed America Radio

Note: This transcript was automatically generated by artificial intelligence (AI) and therefore typos may be present.

Rob McNealy – RobMcNealy.com
Hey folks. Welcome to show today I’m Rob McNealy. And today we are talking to mark Walters of armed America radio. He is like a paladin of gun rights. He is out there every day on social media, protecting your right in my right to defend ourselves in the United States. And in my opinion, he’s out there protecting our ability to fight off what I think is probably a communist insurgency attacking the United States right now. Mark, welcome the show. How are you today?

Mark Walters – Armed America Radio
I’m doing great, Rob. Thanks for having me on, bro. I appreciate

Rob McNealy – RobMcNealy.com
I can’t say how much of it It is an honor to have you on today. Honestly, we’ve met a few times in person gun rights shacho. But I mean, I’ve been following your show a lot, as much as I can tune in during the day. And you are doing some amazing stuff out there. And I’m not just trying to like kiss your butt or anything like that, though. take it for what is.

Mark Walters – Armed America Radio
I appreciate very much.

Rob McNealy – RobMcNealy.com
Um, but things are out there are kind of scary right now, I talked to a lot of gun owners out there. And right now people are scared, I think is the number one.

Mark Walters – Armed America Radio
It should be. I mean, look at what we’re facing in this country today. I’ve been I’ve never seen anything like this before in my life ever. And I don’t think it’s the wrong thing happens in just a few days from now. You know, I don’t know what’s gonna look like, I know, the country won’t look the same for my kids and your kids as it did for me growing up and for you growing up, I tell you that much. And I’m doing everything in my power see to it, that that doesn’t happen. But yeah, the second amendment where you know, could because I view everything on my programs, as you know, Rob through the lens of the Second Amendment, and I can tie just about everything back to that. We’ve been doing it for a decade and almost 12 years, 12 years now. And we’ve been right every step of the way. And we’re watching it happen right now today, right before our eyes. So it’s very scary right now communist insurgency. I’m gonna tell you right now that there’s a there’s a, a very well funded effort to take down this country and we’re watching it on display and Democrat, former Democrats, they’re now socialist, Marxist, communist masquerading as former Democrats. We’re seeing it happen every day in their country in every democrat controlled city in the country, virtually.

Rob McNealy – RobMcNealy.com
It’s frightening. It’s truly amazing. What’s happening, you know, and I tend to be more libertarian, and I always have been, but it’s, it’s frightening for me, as someone looking at, you know, the ability of people to defend themselves, when you literally have governments standing down, like I’m originally from the Detroit area, and I grew up in the 80s, you know, back when Detroit was like the murder and crack capital of the country and things like that. And it’s interesting, because I know a lot about like, how things have changed in Detroit. So back in the 60s, they had these like, you know, more legitimate civil rights rights, where people legitimately were, you know, fighting for real rights. And those rights only took a couple days. And they were completely quelled. by the government and peace in order was restored. It did lead to a conversation, it did lead to some changes, but it also led to white flight, it also led to people leaving certain inner cities, and hollowed out those, those different locations in urban centers. It’s interesting right now I live in Salt Lake City, Utah, and you would not believe the number of California plates floating around it and I to 15 right now, in my neighborhood, it’s insane. They’re evacuating what it looks like is these liberal strongholds, because they see what they’re turning into these giant shit shows. And I’m concerned with what I think what concerns me the most mark is how these cities are standing down in our actual, you know, absolutely rooting for destruction of their own cities, and I can’t fathom it. It makes zero sense to me. It’s like It’s like suicide. For but

Mark Walters – Armed America Radio
you’ve we don’t understand. I mean, you’ve got to understand, first of all, I was just in Heber City, Utah, I spent two weeks there over the last on two separate one week trips out there. So I know the area but not to salt like a lot, just recently in the last month and a half. And I would believe it because I saw the California plates myself on the highways I and then I know what’s occurring out there. I know a lot of people who live work and play and do business out there. We’re seeing the same thing in Arizona, we’re seeing the same thing in Montana, Idaho. From on this coast over here. We’re seeing a lot of the New York flight from New York State New Jersey, going down into Florida, coming down into Georgia invading the south, you know, and but we’ve seen a lot of that for years. What we’re not seeing what we’re not talking about is it’s not all liberals that are getting out of there. You got a lot of conservatives with a lot of money in those states. They’ve had enough. They’ve had enough. And we but we do know that. That dynamic that gets into play, where they come out of where they’re at, and they come down to South Florida, for example, they vote their same bullshit in that they fled up in New York and it gets pretty contentious fight down in Florida, where I was from before I came to Georgia. And that is we don’t want your politics down here. You want to come down here from New York. Come on down here from New York, but leave your New York crap up there. We don’t want it here in Florida. You remember why you left is really remote is what we do we say the same thing down here. You’re welcome to come down here. We don’t mind having your money down here. But remember why you left. But the communist aspect of this when you talk about, you know, the almost rooting for the destruction of their own cities, they are because they can blame somebody else for it. Look, you look at what’s happening in Chicago right now you look what’s happening, particularly Portland, Oregon, I was out in Seattle, when the Breanna Taylor quote unquote decision came down. We were flying private. We were not sure if we were going to be able to get through Seattle The next day, to get back to the airport to get back to Utah. We didn’t know what we were going to face. But we saw a SWAT car after SWAT car after SWAT van after SWAT van fly by us, we stopped no more than four times from the moment we got off the aircraft. Until we got to the second amendment foundation offices in Bellevue, we pulled over four to five times, minimum for SWAT vehicles moving all over the place, you know, so it’s happening. I’ve seen it with my own eyes. We see it on the news. We see it on certain news programs. We don’t see it on all the news programs, because they don’t want to cover it. But I’m going to ask you the same question I ask your viewers the same question I’ve been asking mine for years. And that is two things twofold. First, is a statement. But if you show me an American city in decay, I’ll show you an American city that’s been run by Democrats for at every level for sometimes over 100 years. With no Republican in charge. It’s just more of the same Bs, day after day, week after week, month after month, year after year, decade after decade. And it’s finally coming to light because Trump is using the bully pulpit to highlight that because of the summer of riots, not protest riots in these democrat controlled cities. Number one, and number two, you have to ask yourself this question, what is it about their agenda that requires you to be disarmed? And if you think about that, and you go back and study some human history, you’ll come up with the answer yourself. I don’t have to tell it to you.

Rob McNealy – RobMcNealy.com
Yeah, and and people don’t like to think about that. And I think I absolutely agree. But I mean, it’s like there’s such a like a disconnect, a cognitive disconnect between government policies, and quality of life and standard of living. Like, I have a lot of friends in California, all up and down the coast, even in Orange County. And I go to California quite frequently for business as well. Some of their best clients are in California. I love California. I love the whole West Coast. I love the Pacific Northwest. If it wasn’t crazy, full of communists, I’d probably be living in Oregon.

Mark Walters – Armed America Radio
Beautiful place but anybody who’s ever seen that Columbia River Basin or or been into port, those are beautiful areas of the country. It’s God’s country out there, politically. I mean, I was asked to go up to the Second Amendment, you know, to go up to work at the Second Amendment foundation offices with Allen A number of years ago, three, couple three years ago, we talked about it, Seattle, rainy and I could get past it. The other six months of the year gorgeous up there. But there’s a lot to do. It’s beautiful. But politically speaking, oh, I couldn’t do it. I couldn’t I couldn’t live in the area. I’m very content, my red area don’t want to get out of it.

Rob McNealy – RobMcNealy.com
So I’m 48 I’m not I’m not a kid. So I grew up in the 80s. And I’ve seen a lot of you know, I’ve seen a lot of things happen over the years and politically and it’s funny because up until like, six, eight months ago, and I grew up in a very contentious, very segregated urban area. And race relations had never been better in my life. Up until about six months ago in this country, like, because I saw growing up, things were very contentious when I was a kid, and they got better and they got better. And I owned a business in the inner city of Denver where I live for 12 years. And things were getting better for everybody. People are getting along. And it’s interesting, you know, the rhetoric which is scary to me and I live in Salt Lake now I’m a transplant. I love Utah though. And, and we’re seeing right now, like even in Provo, Utah where these communists are flashmob in cars and shooting drivers who don’t want to be flashmob by a mob, right? They just want to like, Hey, I’m just driving, you know, I’m gonna drive through because you guys are dangerous. And, you know, Mark, one of the things that I like to do is I like to read history books, and I do read a lot about Soviet history. It’s just one of my, you know, fascinations because I like to know where we came from. And what I’m seeing not only in tactics, his rhetoric is absolutely communist propaganda. It’s the rulebook. And what what I’m concerned about, and it’ll be interesting to see how the the election turns out in a week and a half. But one of the things that I see is that and I’m concerned about this is that if you look at what they did, they did this in Germany, too, with the brown shirts, right? It started off with protesting, you know, legitimate were just pissed off. And then it moved to like rioting. But then it led to sabotage, and then it led to murder in a lot more things of that nature. And my concern is one riots don’t get what you want. Okay, riots are not something that if you want to change someone’s hearts and minds, it does that opposite effect. I mean, I think you and I agree on that.

Mark Walters – Armed America Radio
Biden’s gonna find that out to come a few days from now.

Rob McNealy – RobMcNealy.com
You know, if Biden wins, I think I think BLM goes away. I think they’re gonna they’re gonna drop like, you know, as fast as possible because they’re now going to be an annoyance and useless This both in the Soviet Soviet Union and us after the Bolshevik resolute revolution, and you saw this with the brown shirts in Germany after..

Mark Walters – Armed America Radio
That’s what Karl Marx called the useful idiots useful idiots useful idiots is what he referred to as and what happens is those people believe that if they help the the power brokers rise to power that they’re going to somehow benefit and they’re not they get discarded by the power brokers, the power brokers insert their own it’s, it’s pure, its history. You can read it. Don’t take my word for it. We don’t have enough time to get into it right now. But the term useful idiots is exactly correct. And we’re watching the Democrat Party. Do the same thing right now. And if you don’t believe me, watch how they give themselves plausible deniability. Okay. Nancy Pelosi, Chuck Schumer, Joe Biden, the rest of them, though, they’ll they won’t. They won’t talk about what’s happening in the city streets, because they’re run by Democrats. They don’t have to, but they like the benefit of benefiting from what’s happening in the streets from within their own circles and their own base politically. And then they can walk away from it and say, Hey, I didn’t endorse any of that. But you know, Trump did an outstanding job, even in the first debate when he was all over the place. He made it very clear when he was talking about the rioting, when he said you have no law enforcement support, none whatsoever. And Biden can’t support to anything but that but he’s going to find out the Kenosha riders. Those are Biden, but you know, all of the riders are all Biden supporters are not Donald Trump voters. And I think you’re going to see that manifest itself in the election. In some of these cities. I think there’s a big shock coming because of that. But anyway, I digress. I could go on,

Rob McNealy – RobMcNealy.com
to digress all you want. But I think you’re you made a good point, though. And I’ve known enough about politics. And the work that I’ve done over the years is that typically the people that are going to be the riders aren’t voters in general, they just don’t vote. They don’t show up, usually. And I think that’s the thing that people don’t understand. Just because there’s massive masses in the streets, there is a profile for people that show up to the polls and vote. And the people that they’re seeing in the street riding are not those people. And so if they mistake, the people in the streets is voting base. I think that’s I think that’s a miscalculation.

Mark Walters – Armed America Radio
It could be although I guess what we’re saying here is that that is a leftist base that is a supporter of communism. It’s a supporter of Marxism, it is a it is a far left fascist base. Unlike the right that we see where and again, this is a conversation we could have a lot of fun with. I read just a report yesterday of I forget where I saw it, on where the right wing militias were going to be a threat. And the top four states, Georgia was one Florida was one. Michigan was one and I believe Wisconsin was the other of the four where they’re threatening, and I live in Georgia. And I see none of what they’re talking about. So I have absolutely no clue. You know, who put this out? I have no idea why they did what they did or why they said what they said, when in reality, what we’re seeing is left wing mobs in democratic controlled cities all summer long. So I guess, again, it’s just it’s it’s a it’s a campaign from the propaganda machine working on the left, to try to try to move the needle or try to sway people’s opinions, just like they do with fake oversampled polls, like we saw in 2016 that we’re seeing right now today. But you just keep your fingers crossed. If the right thing happens.

Rob McNealy – RobMcNealy.com
One of my I’m not gonna say it is born on my friends does political polling. He does. He runs a company that does that. And he said that they had a poll in Florida last week of independence just a couple days ago. And I just had a phone call with him two days ago. And he said, they pulled 122,000 people had 10,000 people respond. And he said, based on those independence, Trump was a landslide in Florida. And he said that there was a poll that came up before that, that only sampled 600. And that was, you know, favoring Biden, so it’s it’s, and I’ve heard this from several people now that the polls are not reflecting what people are saying. But I think the numbers that are important to me are like how many gun owners how many first time gun owners have there are there this year so far?

Mark Walters – Armed America Radio
Millions or millions, over 5 million at the estimation is anywhere from five to 10 million. Let me give you a dynamic in play in Pennsylvania, Pennsylvania is fun to watch. In 2016. First of all, Pennsylvania has 67 counties. In 2016. Trump won 57 of those 67 counties, the 10 counties that went blue, predominantly surrounded Philadelphia went up by Scranton State College Pennsylvania, which is where Penn State University is go figure that and then Allegheny County out in the West and Pittsburgh, Erie, Pennsylvania, top left Northwestern quadrant of the state went red for the first time since reagan. Of those 57 counties that Trump won 50 of 44,279. That was the vote spread in the state. There was a 44,279 votes spread and Trump’s favor of that 44,020 2,050% of that came from Erie which flipped since reagan. There’s no indication that Erie is going to flip back to Biden number one, and number two, you dropped down to Allegheny County. There’s two things that wouldn’t when other ones just added into play by Wolf just the other day just two or three days ago, wolf vetoed a bill, a bipartisan bill that passed in Pennsylvania both houses, believe it or not, he vetoed the bill that would have opened Up restaurants, you know, he’s keeping these lockdowns in place. These people are stepping all over the throats of their citizens, and he vetoed that. So that’s going to come into the mix as well. But when you take into consideration Pennsylvania is a very gun friendly state, believe it or not. And when you look at the numbers of new gun owners and new permit holders, Sheriff Mullins in Allegheny County was between 6000 and 10,000 signatures behind in concealed carry permit epic applications in Allegheny County, which went blue in 2016. So you’ve got to look at those numbers because that was not a dynamic in play in 2016, but it is today could Allegheny flip read those gun owners? Are those gun owners gonna vote their guns away? With Biden, we don’t know. What we do know is that is evidence that more people, millions of people, if you blow that up around the country, are purchasing guns, and are concerned about what they’re seeing. And there’s only one way you can logically break that and that’s for a Trump. That’s got to be a Trump victory, because it’s certainly not when you look at the party of gun control, which is the communist Marxist socialist currently masquerading as former

Rob McNealy – RobMcNealy.com
i. So I have a lot of my wife, my wife’s a doctor, I have an MBA my we, you know, we tend to run around circles that have educated people that are left and right. And I have good friends that are liberals like but they’re not like communists, and there is a difference or more of that blue dog of you know, the the 70s liberals a very different thing than a liberal is today politically, one’s a communist. One just wants, you know, certain people not to be persecuted and that’s their view. And, and my friends, they, they’re very successful, they make money. And I’ve had so many of those friends, I seem to be the go to gun guy. In my circle. They’re like, hey, Rob, what’s a good pistol? I should get?

Mark Walters – Armed America Radio
Sure. I know. Questions from liberal communist as well.

Rob McNealy – RobMcNealy.com
Where can I get a nine? Where can I get 9mm ammo from all around?

Mark Walters – Armed America Radio
The one communist in my family has been all over me about the a particular Beretta, which he finally made a purchase of didn’t want his wife to know. And he and I got into this is a cousin of mine, and he and I were very close growing up. We got into a very heated exchange for the first time, in many years, a couple nights ago, actually, on Monday night, or Wednesday, I think was Wednesday night. And I made him I mean, I made him realize just how much money he wasted on his PhD. I was it was so easy to bury him. It wasn’t even funny. I mean, I literally shut him right up. He could not respond to facts. He could not reply to facts, for example, Chicago, controlled by Democrats for about 100 years. They own the mayhem in Chicago, period. He was trying to tell me that under the Democrats, the murder rate was dropping in Chicago, and it was laughable how what kind of path he was going down considering that there was a handgun ban in night from 1982, in Chicago, from 1982 to 2008, or till 2010. And when you look at those numbers that he sees, these are things that he didn’t even think about. And he did not know that Chicago had been run, he didn’t even think about did we consider the fact that Chicago had been run by Democrats for the last 100 years, they literally own the mayhem? So at what point in time, do you put your PhD to work and figure Okay, maybe just maybe 101 years might be, you know, at what point do we draw that line? Rob 100, what do we need? 101 years you want? 102 years? 103 years? Where do we draw the line, it’s time to make a change. And when you point these things out to people who aren’t thinking in those terms, they’re there. It’s emotional for them. When you begin to point out actual statistics and numbers, the murder rates were climbing in Chicago for decades, we’ve been running the numbers for years, thousands of people shot annually under democratic control. At what point do you realize, hey, we need to make a change in Chicago, what we’ve been doing for the last century isn’t working. And I believe people are seeing that now. I believe they’re seeing that now. Now that that Trump has the bully pulpit this time, and is mentioning some of the things that are happening. And again, I asked him the question, show me an American city indicate I’ll show you an American city run by Democrats at every level for decades. Prove me wrong. You tried to pull out Eugene, Oregon, which by the way, is, by the way, by a Democrat, so I don’t even know where that came from. Okay, but it’s impossible to do. So. It was a fun argument. And

Rob McNealy – RobMcNealy.com
Well, I’m sorry, arguing with your cousin.

Mark Walters – Armed America Radio
But no, we do that we get a we can do that, where he and I have that relationship where we can bring it right back down. And we’re good to rock and roll. But that was the most heated exchange that we’ve had in a number of years.

Rob McNealy – RobMcNealy.com
So worst case scenario, let’s just put it this way. You know, I think I think Trump’s probably gonna win. And depending, but it’s hard to call because I don’t know how much how much people are going to monkey with the election results. And I don’t think either side is going to accept the election results regardless, but what do you what do you think is gonna happen if Trump does win?

Mark Walters – Armed America Radio
I mean, you I think you’re gonna see it’s a great question. It’s a frightening question, honestly, the prediction that I’ve made, and I’ll make it on your program as well. I’ve said it publicly on my show. On hundreds of radio stations, I think Trump is gonna win 310 plus electoral votes. I look at Pennsylvania, I don’t see Pennsylvania shifting at all. See his vote margin? Why I see his vote margin widening in Pennsylvania. I look at the basics. I’m not looking, you know, when I see a poll in Michigan that shows Biden plus 14 and 775 people talk, are you kidding me? That there’s nothing scientific about that at all? It’s an absolute joke. And here’s why I used to live in Michigan myself. I lived in Ann Arbor.

Rob McNealy – RobMcNealy.com
I’m from Michigan.

Mark Walter – Armed America Radio
I lived there from the time I was nine until 15. A lot of firsts in during those years. I know a lot of people their first girlfriend, you know, learn how to water ski up there did a lot of first things during those formative years and I have a lot of friends in Michigan still. They hate her. Governor Whitmer is despise There are nine authorized recall elections, or efforts going on against her right now nine that have been sanctioned by the state, the state Supreme Court in Michigan, I believe it was a unanimous decision. just slapped her right smack down with the state constitution and said what you’re doing is unconstitutional. In this state, you are abusing your power. I cannot believe Michiganders are gonna vote for more of that at the federal level with Biden, after many thousands of them have lost their jobs, their restaurants, some of them their houses, their cars, they’re bankrupt because this woman’s been stuffing their suits been standing on their necks down there are up there in Michigan for months now. I don’t see that. I don’t see that becoming Biden country. Michigan stays Trump. When you go over to Wisconsin, Kenosha rioting. I’ve been I’ve been traveling to Wisconsin for a decade and a half to three times a year doing business up there. The vast majority of that state is rural and conservative. That simple just like anywhere else you get outside the city, walkies blue, a little bit of green Bay’s blue, but the rest of the state is bright red. Those people are coming out to vote because they don’t want they saw what they saw happen in Kenosha, happening again at the federal level. I believe Minnesota is going to flip I believe Ilhan Omar is probably going to win her seat back because of the Somali population in the district that she’s in. But the rest of the people in the state of Minnesota State I’m familiar with and broadcasted from, for 10 straight years at the Minnesota State Fair. I don’t believe the people of Minnesota want more of what they saw in Minneapolis rioting and destruction and their cities. That does not bode well for Joe Biden. I think Minnesota flips. Ohio stays Ohio stays red. And like your buddy said, Florida where I came from after many years down here, I believe the Hispanic vote in the black vote, Florida is going to roll for the Trump train. And like he said, 120,000 that’s a legitimate sample size with 10,000 people that responded versus ABC, NBC or CBS that say they pull 800 and or even Fox 875 people, and they get these ridiculous. And here’s why. There’s no 14% divide anywhere in this country.

Rob McNealy – RobMcNealy.com
No, none.

Mark Walters – Armed America Radio
It’s two or 3%. So I mean, these numbers are off just by their by their very factor. And when you look at the over sampling that they’re doing with Democrats and these things, so when you look at just those states, right, they’re just there, I think Nevada is gonna flip, I could be wrong about all of this. But in 2016, my gut feeling, which I feel right now, was right, I closed out my show on election day on Tuesday, last year, first Tuesday, after the first month or the last election in 2016. I said there’s going to be a lot of Americans going to be waking up with a rude awakening tomorrow, Trump plus 300 electoral votes, during the rest of your day, I’ll see you on the radio, Trump won by 306 electoral votes. If that scenario plays out, what I just described to you, I think you’re gonna see 310 plus electoral votes for Trump. And if that’s the case, it’s gonna be very difficult, very difficult for the other side, to claim some type of victory, but they won’t concede. I don’t think either side will regardless, you’re right. But the left is going to riot in American cities, regardless of the outcome of the election. I’ve already seen the blueprints in the plans. I’ve read it. It’s right. The Federalist printed it just two weeks ago. So it’s frightening, but it’s coming be prepared for it, regardless of where you live.

Rob McNealy – RobMcNealy.com
Do you think that if Trump I mean, I would think they would like some people said that Trump’s been deliberately hands off in some of these cities. You know, and in To me, it’s like, I think the federal government has the constitutional authority to go in and crush these protests in in a lot of states because they’re using revolutionary rhetoric, which would could, I think, could easily be considered an insurgency. And that is a constitutional use of force by the federal government to go intervene, you know, quell insurrection. And so I’m surprised that he has been so had everybody bitches about Trump, and I’m like, dude, in the Detroit riots, and like, 16, they were shooting people. The cops are just killing people. And in two days, it was done or a couple days it was done. I’m not saying I’m advocating for that. But the government has been very hands off both federal and local on these riots. They’ve been allowed to continue.

Mark Walters – Armed America Radio
They have been allowed to continue by local authorities. And Rob, I’ll be honest with you, I think, when Trump is after a Trump victory, when he is not constrained with another election, let’s go back to the old Barack Obama when he leaned into Putin. And he said, hey, let’s talk about this later after the election when I don’t have to worry about it. Okay. You’re going to see a completely different Donald Trump when it comes to riots. In the cities, why, because there’s going to be a mandate because he’s running as the lawn order president. And if he wins, he’s going to claim that mandate, and you’re not going to see Portland on fire anymore. And what that as far as I’m concerned, these are enemy combatants. I’ve written about it, I’ve talked about it. And I’ll say it right here on your podcast, they need to be treated as such, you need to go in there, clean them up, send the federal government in there to do what is necessary. If they fight you back, treat them as enemy combatants. It’s that simple. wipe them out and end this insurrection in American cities and American streets so that people can go on with their lives, it has to come to a stop those people, if you ask them, they will tell you that they are at war with the US.

Rob McNealy – RobMcNealy.com
Yeah. And I can do that out. Now I have four kids. And I can tell you when they’re literally shooting drivers in Provo, Utah, just driving down the street. And they’re flipping cop cars five miles from my house here in the Salt Lake area. That’s scary to think that my wife could be driving around with the kids in the car, and just be mobbed by writers in and then they can decide, well, we think you’re a conservative, so we’re going to shoot you if you don’t want to be surrounded by writers. And I’m telling you that’s scary. And and, and I think most people that are reasonable fear that because that’s not protesting. That’s not free speech, you don’t have a right to block traffic, you’re violating people’s ninth Amendment right to travel when you stop a car that’s lawfully going down a road. And at this point, I think if a mob surrounds your car, I think it’s reasonable, given the history of these shootings of drivers that if you stop in, they get you out of the car, you’re gonna get beaten to death. And I

Mark Walters – Armed America Radio
I wouldn’t hesitate. I wouldn’t hesitate for one split second, I have a right to defend my family, I have a right to defend myself in my vehicle. If my vehicle is surrounded, I’m not going to run you over. I’m going to shoot you and run you over in the process. And I’ll deal with the aftermath later. Simple as that, and I’ll have it all on video. Look. I’m not afraid of the mob. I talk about the mob every single day, I couldn’t care less. Okay. We know that if we cave into the left wing mob, you’re done. I do believe that. And I’ve heard a number of folks talk about this. I’ll give you my own personal opinion about it here. I don’t get swayed either way. But I believe you’re going to see conservatives there will be people that will openly murder people after you know if they’ve if they’re victorious. They will see what they’ve done as a mandate that the rest of America approved of their violence and their tactics, as they were as we’ve seen unfold in Seattle, as we’ve seen unfold, in see in, in Portland, etc. But I think you’ll see some people claim that they’ve been vindicated that America wants that’s why they’re doing it. It’s it’s we live in terrible times in America, I would tell your viewers and your listeners, you should be prepared anyway. Okay, have enough food, have enough water have enough ammunition? I mean, you should be doing that. Anyway, even Obama’s FEMA department told you that I came from Florida where, you know, that was just a basic hurricane kit. I’ve got enough food, enough families, you should have these things, anyway. But it’s a good idea to remind people now that there are very bad people out there who will do bad things, as you’ve said about you know, car flipping and Provo, Utah and everywhere else. Be prepared. Don’t walk through life with blinders on. Make sure you’re situationally aware, be prepared to defend yourself if you have to. because let me tell you something, I’d be more than happy to go up in front of a jury if my family is alive. And I made it home because I had to run two idiots over that were trying to block my vehicle. Or if I had to shoot somebody that was trying to get into my car by smashing the window with a skateboard. As far as I’m concerned, I’m going to defend that my actions is self defense in that case, okay. I’ll defend my family and I’ll defend my life. And I’ll defend my community with whatever means necessary. And I’ll leave it at that. I think I think that’s a responsibility that all Americans have.

Rob McNealy – RobMcNealy.com
I agree, Mark. I know we’re running out of time here. Where can people find out more about you and your radio show?

Mark Walters – Armed America Radio
ArmedAmericanRadio.org, ArmedAmericanRadio.org. Or you can visit me on that hateful, vile, despicable, disgusting place known as Twitter at AR mark. And if you don’t have to have Twitter, don’t visit me because I would advise you to get off of that crap and not use it. But if you do have it, make sure to make sure to be sure to follow me at a our markets that simple, but that social media By the way, that combined with a 24 hour 724 seven. In the tank propaganda news media is doing terrible destruction to this country. I don’t know how we ever put that genie back in the bottle. It’s already out. It’s fomenting hatred in this country that I don’t think we’ll ever be able to get back. I don’t know what I don’t know. I truly don’t know what we’re going to be able to do to fix this country.

Rob McNealy – RobMcNealy.com
Well, thank you, brother. And keep up the good work. I appreciate you coming on the show today.

Mark Walter – Armed America Radio
Count on it. Rob. Thanks so much, man. Looking forward to seeing you again in a post COVID environment right?

Rob McNealy – RobMcNealy.com
Absolutely.

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John Bocker – FFL Consultants Transcripts

John Bocker is the Managing Director and co-founder of FFL Consultants

Note: This transcript was automatically generated by artificial intelligence (AI) and therefore typos may be present.

Rob McNealy – RobMcNealy.com
Hey folks Rob McNealy here. And today we’re talking to John Bocker. He is the co founder of FFL Consultants out of Colorado, and they specialize in helping the gun industry actually be compliant. So, John, how are you today?

John Bocker – FFLConsultants.com
Great, Rob. Hey, thanks for inviting me.

Rob McNealy – RobMcNealy.com
Well, you know, I appreciate talking to you. I know you’re super, super busy, and especially with the state of the gun economy right now, it seems a little crazy. But I think we can jump into that in a second. But before we get into that, tell me a little bit about you. How did you get into this space? And what is an ffl? consultant? And what does an ffl consultant do?

John Bocker – FFLConsultants.com
Well, if anyone’s inside of the firearms industry, everyone knows the ffl is the Federal Firearms license that the ATF actually issues to gun dealers and manufacturers and distributors inside the United States to actually manage and manufacture and sell firearms. As I tell our clients for the government, the government is not allowed to do that and enter into commerce with firearms, so a licensed gun dealers, around the Americans, you do that for them. So we got into it, JC is a john clock, my partner in this business, we’ve been working with the National Shooting Sports Foundation for about eight years. And typically, we would be at SHOT Show and talking to audiences of about 200 at a time about different things they can do to secure and protect their guns against burglary, and how to deal with how to deal with straw sales and how to maintain that compliance so that they, as we say, stay out of hot water with the ATF just do things right. And one thing led to another and we realized there was a whole nother you know, arena of gun dealers out there beyond the nssf members. So we we started ffl consultants about three years ago, and now We service the entire firearms industry.

Rob McNealy – RobMcNealy.com
So how did you get so experienced with the compliance of this sector? It sounds like it’s pretty involved.

John Bocker – FFLConsultants.com
And I get that question a lot so that everyone wants to know, where do you go to school for this? Well, you really don’t go to school, you can come into this business a couple of different ways. You can come in through the government sector, which is working for the ATF for years and working in and around the the regulatory compliance that the ATF imposes and the government imposes. Or you can come from the private sector. And that’s what JC and I did. At one time, I ran compliance for galleon sporting goods. And at any given time, we had 85,000 firearms in stock. We saw over 300,000 firearms a year. I mean, it was a it was a significant company, and that company was purchased by Dick’s Sporting Goods years ago. And then JC did this basically the same thing for sport, the Sports Authority for many, many years. So we’re very versed in the everything from importation to license acquisition, to compliance, security, sales and operations and inventory control. And, you know, we’ve JC and I have both been in the risk management business for companies since college. So JC has a little bit of military and law enforcement background. I’ve been in the private sector for about 20 2030 years, just maintaining compliance for companies and as we say, keeping them out of trouble. So it all evolved into this nssf program. Like I said, about eight years ago, were asked to start that up for them, and just turned into my full time gig.

Rob McNealy – RobMcNealy.com
So what are the kind of problems that you see, or at least the common problems that a lot of you know, new ffl? Or even maybe some of the old ones? What do you think they where do they start running into that hot water? What are the things that are they doing that they what are the common mistakes they make?

John Bocker – FFLConsultants.com
Every every year the ATF actually puts out a list of the Top 10 issues that they are violations that they see in the management and control the firearms from their auditing programs, and from their results that their field inspectors actually report. But you know, it does change by year. And we see it more so recently in not only demographic but the startup ffl versus, you know, 20 year ffl. And but Rob dancy a question I want to say it probably comes down to training and turnover in every ffl. The laws don’t change that much in the forms, you know, the changing this form this year, the forms changing and as of November 1, but the 40 form 4473 which is the firearm transfer record. That doesn’t really change but once every four years if and if it gets revised and if there’s reason for it to be changed, because it’s a major overhaul a major I want to say process. For every gun dealer to convert to a new form, and train that folks, but what we see is newer gun dealers having a biggest struggle getting up and running, and understanding the very complex, what we call the ffl. guidebook issued by the ATF, it’s 263 pages of laws, regulations, and statutes that, you know, new, a person new in the business has to absorb, digest, understand, and then apply. And there’s little nuances to do. And each one of those right and wrong, there’s a lot of exceptions to the rules, they have to, you know, understand and possibly call your ATF agent about, or just continue reading and asking, you know, veteran ffl, or someone like us, you know, how do I do this? So we always say, you know, your first place to start is with the ATF. But if you don’t want to call the ATF and ask a question, that’s, that’s what the nssf and ffl ffl consultants is all about. We’re there to answer the question, we give real answers fast. And that’s what a gun dealer needs, you know, when they’re selling guns and managing inventory,

Rob McNealy – RobMcNealy.com
Is there like a school or like an orientation program offered by the ATF for these new FFLs?

John Bocker – FFLConsultants.com
Not so much any type, of course, or school or, but they do, you know, and that’s where we were actually involved with them as the nssf experts and consultants, we actually were traveling with the ATF and the FBI, every year conducting what we call regional workshops. And I want to say that’s the closest thing to any type of training that the ATF or the FBI in the next division will actually provide. There’s not much if anything available online is not many video or, or training tools online that you would expect from, you know, a perform process such as this. So that’s where we come into, you know, that’s what we’ve started to develop, because we know there’s such a need for that to occur. And it’s the only way really to keep, you know, people on the straight and narrow and doing things right, and getting up and running when they’re new to the business when the new to the business.

Rob McNealy – RobMcNealy.com
So right now, at least from what I’m seeing, it seems like the gun world is a little busy right now?

John Bocker – FFLConsultants.com
That’s an understatement. Yeah, so this is, you know, the fourth going into the fourth quarter of 2020. And we’ve seen more firearm sales in the last six months than we have in, you know, in any in any six month period, actually, in the history since the a test been keeping track since 1968. We’ve had over 8 million firearms sold in since since March of 2020, a stat breaking all records and for a variety of reasons. It’s just not, you know, someone says Well, why? And I say, well, it’s just not COVID. It’s just not the election. It’s just not civil unrest. But I think it’s a combination, depending on where you live and who you are. It’s a combination of a few of those elements that are just, you know, causing people to turn to a firearm for personal safety. And the other interesting fact is this is the first time that we’ve seen such a just an astounding number of first time gun buyers. And when we were getting that information through our dealers or dealer networks and surveys we’ve been conducting, but we’ve seen and it’s a little bit scary because you want training to go along with all those new firearm purchases. But for the first time, we’ve seen an overwhelming number of first time gun buyers, and in states where we haven’t seen high gun sales before.

Rob McNealy – RobMcNealy.com
So with all these guns being sold, it sounds like you know, gun dealers are pretty busy. Do you see a lot of mistakes happening because of that just with like another you know, the paperwork side of things and the inventory management side of things.

John Bocker – FFLConsultants.com
I want to say yes or no. Again, it depends on which who the dealer is how you have someone who’s spiked in business, maybe they were selling 10 guns a week 10 firearms, and now they’re selling 50 to 100. Just because of the run on on firearms and the supply and demand issues. We have firearm dealers we have clients all over the country from Miami, Florida to Seattle, Washington. But we have everything in between and we’re getting calls from the strangest from the strangest gun dealers and the strangest places but the strangest questions. An example would be you know, customers are some states are running out of firearms, basically, high population, low density of gun dealers, you’re gonna sell out pretty fast. So someone who someone who wants a firearm may have to travel 50 to 100, even 200 miles to actually pick to purchase the firearm they want. So we’re getting a lot of out of state purchasing requests and questions about clarification. There’s a lot of state regulations that that supersede the federal regulation. So you know, a gun dealer in Mississippi, for example, might call us with a question about someone from Louisiana or even Georgia coming over to purchase a firearm in this state. And that is restrictions on long guns versus handguns. There’s restrictions on magazine capacity. Types of firearms for certain states. So it’s caused a little bit of confusion. So on the gun purchasing side, we’re seeing a lot of confusion with out of state residents coming into buying it in a different state where they don’t live. So that that just leads to the paperwork, compliance issues. Am I doing paperwork correctly? Am I legally selling his firearm to those other people that aren’t my regular local customers? So we’re getting a lot of those questions. And that’s probably the greatest area where we’re finding compliance issues. Then it was a big because of the overwhelming number of firearms been purchased. You know, it’s put a real strain on the FBI background checks program, which is commonly known as Nix. And there’s one point back in April and even into May, though it delays the firearms of the next verification division of the FBI was, was backlogged maybe two, three, or even four weeks in getting an answer a determination to some of the firearms dealers for customers who are awaiting background checks. And there’s laws in place that say you can transport a firearm anyway. But there’s a lot of dealers who just don’t feel comfortable doing so. Yeah, typically, the law says you can, if the FBI doesn’t get back to you on a background check, you can transfer or sell that gun after three days, three business days. But a lot of gun dealers, you know, are more say, have more loyal to the constitution and safety aspect of selling and transferring guns, they don’t want to transfer a gun just because the law says they can. The law also says they don’t have to. So we were getting a lot of questions back during April and May about you know, what do I do? Do I have to transfer this firearm? Can I can I not transfer it? You know, because I don’t feel comfortable? I want to wait for your firm confirmation that they don’t have any background check problems. You know, and that was a big that we we were getting several calls for that about that question each week. But then we were we’re out visiting. Now, again, we’re doing an in store audit program, Rob, where we actually go into gun dealers. And we basically review all of their past transfers since the last inspection by the ATF just to make sure everything’s correct. And if we find issues, errors, we highlight them for correction. But you know, we’re finding errors all over the place from dates of birth, not correct. The wrong date, you know, you I’m supposed to put a date of birth on my transfer form, but I’m putting an expiration date on my ID was saying, you know, little technical clerical leprechaun, Clara, Clara’s administration error is not that they’re serious major problems with the gun transfer, but the clerical errors on the paperwork, all of those add up to violations with the ATF and they come to visit. So we try to claim that all up before the ATF next visit. So the gun dealer, we say passes with flying colors.

Rob McNealy – RobMcNealy.com
So I, I’ve talked to a lot of gun people and a lot of gun retailers. And there’s a lot of trepidation about the B ATF, in general among a lot of these guys. Do you see out in the field the be ATF being supportive and helpful? Or do you think they’re more adversarial when dealing with retailers?

John Bocker – FFLConsultants.com
Well, this is 2020. So if you asked me this question, 10 years ago, I might give you a different answer. But today, I want to say we were very we work very intimately with the not only Washington bureau, ATF office, folks, but we also deal with all more than 50 regional and local offices around the country, for the ATF. And I want to say that it was probably a change in regime over the last 10 or 15 years with new folks coming on a lot of retirees, you know, taking that option. And I want to say the ATF has a new perspective on support for their for their gun dealers. And I think it’s instead of the old gotcha type of scenario, which you might be referring to, I want to say that predominantly, I find that they all supportive. You know, when you do call the ATF, when I was answering the phone is going to try to give you the right answer or get someone to return your call your inquiry the same day. But they’re they’re a government agency. What I mean by that is they go into state fact versus fiction and eliminate opinion and not offer advice, but they will tell you where to go to find an answer. Make your own determination or interpretation of the law. And that’s that’s the I want to say that the gray area that we still find. It’s not like you can call the ATF office and ask a question and get advice. You can get an answer a firm answer based on statute, something that’s in writing something that’s a law. They’ll refer you to a process or procedure that’s already documented and issued publicly. But beyond that, you got to get to rely on your instincts, your opinions, your lawyers, your consultants, your sisters, your support team, your colleagues, maybe you’re part of a buying group where there’s a lot of ffl compensation. That’s the tough part is who do Who do you go to when you, first of all don’t want to go to the ATF. And second of all, you want more than just, you know, a black and white answer. That’s, that’s where we find a lot of our, our support being administered.

Rob McNealy – RobMcNealy.com
So with you with ffl consultants, where would your advice and maybe where would an attorney’s advice pick up from there? How do you work with that?

John Bocker – FFLConsultants.com
Great question. Great question. So we are not attorneys. And we stipulate that if you, if you work with us, we tell you that right up front, yeah, we base all of our knowledge on experience, practical experience, work practice, personal experience of being deposed and investigated and inspected, and now being training with the ATF and the FBI next team. You know, we see all sides of that JC and I and our consultants see what we call a 360 view of this business. So we can actually give you advice not only based on the legalities, but based on the business aspect of it profit and loss, you know, revenue generating perspective of what you’re doing as a gun dealer. But we have to, we have to draw a line when it comes to issues and situations of liability. And concern weathers the what if question, what if I do this, what if I do that, you know, we will give you our best experience and advice. But we will partner partner, you as a gun dealer with someone, we have attorneys around the country as well, we work very well with two of the very well known firearms attorney groups that are nationwide. So I pay to also have great relationships with the ATF. But we will with smart enough to stop at a certain point in giving advice, making a determination or proposing a decision and offering it up to one of our partner attorneys. You know, we of course, are insurance insured and bonded and have the right protection in place. But there’s limits to what we what risk we want to take on, especially when that firearm can impact someone else’s life, or be stolen and be involved in a crime, etc. So we want to be a little cautious in that area.

Rob McNealy – RobMcNealy.com
So what do you see what like manufacturers? Do you see the different set of problems? Or do you work with manufacturers very much or more with the retailer side of things?

John Bocker – FFLConsultants.com
Manufacturers, most of the manufacturers have been around a while. So we do our work with new manufacturers standing out helping stand up the business on paying the licensing and insurance. And, you know, set up our operations and basically explain the foundational fundamentals of all of the acquisition and disposition record keeping the marking program, make sure they are congruent with the local ATF team so that they understand what they’re doing from the get go is, is 100% we’d rather spend a lot more a lot more time on the front end of a firearms, new firearms business, such as manufacturer and we have some ammunition manufacturers now we’re dealing with and some fellows who have moved from retail into manufacturing of AR type firearms and manufacturing kits into AR. So we have some minor manufacturing. So that’s what I’m talking about in this prior discussion. But on the line in a larger aspect, will it be browning or others and some of the major distributors, we find that they although we do support them through the National Shooting Sports Foundation, they typically have their own in house team of attorneys, compliance folks, people have been with them probably, you know, 510 15 years and or retired ATF folks who specialized in those areas. So we see less of that on our side. And most of our business and support goes to the retail gun dealer and the firearms range operators.

Rob McNealy – RobMcNealy.com
So it’s interesting politically out there. with things like the government changing its mind. Some things that come to mind would be say, for instance, the the recent bump stock ban signed by you know, Donald Trump, and I don’t know if you saw this even recently, but there is a thing with the honeybadger pistol, it’s a race issue. And it seems like sometimes ETF just shifts course, very, very quickly. What do you see? And how would you recommend that, you know, a retailer or something? How do they respond to that kind of shifting political landscape?

John Bocker – FFLConsultants.com
We don’t see a lot of it, but obviously, I think any of it, you know, and a few of the two issues you mentioned obviously, and prior to that was magazine capacity bands, and different things. They what we do see of it, and I’ve been in this business, basically in the business for about 20 years since I you know, worked directly inside the firearms retail business. But we’ve been what we do on a daily basis, Rob is not only stay connected on a daily basis with the ATF open letters and rulings, but the nssf obviously is very intense. And then legal team and government relations team is very astute to what’s going on when it happens, whether it be at the state level, federal level. But I think I think historically, if you go back and look, there’s always an instance, where that sparks this change in demeanor or change in legislation or these these shoot from the hip restrictions, as we saw with the most recent one. But what we see is, if you go back and look at the incident that sparked the change, in statute, a ruling, whether it be a shooting in Las Vegas, or shooting at a school, or, you know, maybe there was a lawsuit in the news with, you know, a major retailer, and a shooting, that’s what we see, oh, is to be the issues that always catapulted this type of of item, you know, in the news. And the first thing, first of all, is to understand what the issue is. Secondly, if there’s an immediate notification, or if this is just something being spoken about, which most of them are, you know, it takes a long time for a bill to be introduced legislation to actually be approved and, and supported and voted on. And a lot of these bills, you know, Virginia just had an overhaul of their entire channel and less last year, I think they put five or six different new rules in place. The one we’re hearing about most across the country is the red flag laws with whether your firearm can be taken away from you for a variety of reasons. And that’s all based on states and municipality. So there’s a lot of rhetoric out there. But I think it’s important for a gun dealer to know what’s what’s impacting this state, you know, locally, are they in touch with their local legislators? Are they in touch with the senators and congressmen help them with some of the these these new call nuisance bills or legislative changes that are going into effect, you know, you really got to be connected, some of the best gun dealers and biggest gun dealers we deal with are connected, and have a direct line to their support legislator who can help them with some of the local laws. But when the ATF comes out with the honey badger, for example, this is this is making news for the last two or three days, everywhere yet, the the conversation is based on not based on anything specific xx except some wording that was used in a website, where the about a manuscript by the manufacturer that was maybe a little bit and probably could be edited or changed to resolve this issue in the description of the firearm itself. But the firearm itself was approved by the ATF design committee, design division, it was approved for manufacture as an AR pistol. So it’s very confusing to the the firearms industry yesterday and today, seeing all this news about it, and saying, you know, which end is up. So there’s obviously a lot of attorneys working fast, including NSSF, right now to figure out, you know, what the determination truly is before we run out and declare a million million firearms to be 100,000 firearms to be boating illegal in the hands of citizens illegally searches.

Rob McNealy – RobMcNealy.com
So tell me a little bit about that case, specifically, I saw an excerpt from a letter from the, you know, in the ATF, but it didn’t specifically state what the problem was. So I, you know, I don’t know what the actual problem was with the honey badger. What is the the issue they’re having with that?

John Bocker – FFLConsultants.com
Yeah, and I don’t have the I don’t have the website up. But basically, it was determined on their website that because, as I understand it, again, this is I’m not an attorney. As I understand it, this discussed we had this discussion this morning. And, you know, they might they might have built and manufactured and marketed this firearm as a military, they wanted this military, this firearm to be introduced and accepted as a military weapon to replace a very common automatic firing weapon that’s used by the military without mentioning names but long story short, it was not adopted, it was not. It was not adopted to replace the long standing current firearm that was being used. So the website basically advertised as honeybadger. It was an it’s an AR pistols what it is, it’s not fully automatic, it’s semi automatic. But they advertised that as a military weapon built for the military. And I think there’s someone got a hold of that, I don’t know. And they they ran us up, up some flagpole to get some backing behind the argument that it’s not a citizen. It’s not a non licensee, a citizen regulated firearm and it shouldn’t be and should be regulated by the NFA. Now that’s the general discussion that I was involved with as early as this morning. But technically, it has no other reason, because of the design of the firearm to declare to show up our rifle. You know, it’s got an arm brace just like every other approved AR pistol is able to have. It’s got a it’s a magazine fed. It’s a short barrel. But it’s not, it’s not a long gun. And anyway, and it’s not a rifle because the rifle is technically a firearm that has to be shot yet has a permanent shoulder stock on it. And as his shot is you can shoot with two hands. So this is a single hand operated firearm with an arm brace. So technically, it fits the description as as described before and as approved as an AR as a pistol. So this confusion, there’s a lot of confusion, I think within a week or two, there might be some more determination on this, but no one’s running real fast to know we also spending the deal is we are we are talking to or we’re advising him to suspend the sale of that firearm until we hear more about it. If there’s any, there’s some in stock, there are still some available. But the manufacturer has halted production of it and well, you know, it’s Q, I believe it’s in Utah, right. But based in Utah. So, you know, we’ll see what happens with this, but it’s fun to watch.

Rob McNealy – RobMcNealy.com
It’s interesting. And it you know, I understand a lot of people have these braces. So I think that’s why there’s a lot of concern out there. And some of these braces are not cheap, like the maxim defense or the SP tactical braces are they’re pretty proud of them, those products, so it would be I think, devastating if those somehow became, you know, illegal contraband. Now, I mean, there was a lot of bump stocks out there, but I think there’s a whole lot more braces running around than there are bump stocks.

John Bocker – FFLConsultants.com
Well, yeah, and the brace itself is a legal accessory for, you know, a pistol, you know, and, you know, that’s as far as if you go back and look up, if you go to the ATF website and research this, you know, the arm brace is approved by the ATF to be attached to any pistol pistol, and they had an open letter in 2017, that even went on to expand the usage allowance to allow, you know, because there was all this, all these issues about people on YouTube and on video, you know, being shown or being seen using it as a shoulder brace, so to speak. So as long as it’s not designed to be used permanently as a shoulder brace, you know, or substitute stock for the firearm, it’s permitted. So, again, there’s a lot of gray area on this one, because there’s nothing new invented on this as an accessory on us on the honey badger to make it any more than what it is, which is an AR type pistol. That’s, again, my, my experience, in my opinion.

Rob McNealy – RobMcNealy.com
Well, this is why FFLs have to contact a guy like you to explain all that complicated nonsense and, and kind of diluted down and distill it down into something that like I said, Be distilling, not diluting. But distill it down into something simple, like a guy like me can understand all this bureaucracy and craziness.

John Bocker – FFLConsultants.com
Yeah, that’s all one thing, we get some panic calls, you know, when the bump stock ban went into place, and in some places they are bands have gotten into have been introduced and approved and made into law. I mean, I’m in Colorado, in Boulder, Colorado, outlawed ar, ar rifle, as of May 2019, a year over a year ago. And there was a surrender day either register it or move it out of the county if you if you reside in the county, and actually city limits, or register with the place or transfer it out or surrender it. And now, you know we get it. We were getting all these calls primarily from the dealers but also from a gun owners. You know, we’re on our website, wherever websites, so we get all types of calls, whether it be gun dealers, or people looking to buy guns or buying ammunition, or trying to license their firearm or whatever they might be doing. So but the interesting thing in Boulder, Colorado, Colorado, is he had a gun dealers had to worry about and no one else really did. I think and I think out of over 1300 estimated AR type rifles that they had in the county, just about 135 or registered. So it just goes to show that you know, some people are reacting, but some people aren’t. And there’s always gray area for discussion. And then there’s always the question of Well, what’s going to happen if I don’t, you know, so we get in the middle of all of it, you know, we don’t never disclose who would call him that we often call police department or they are the ATF or someone and ask the question on behalf of one of our clients. So someone calling, so it’s fun to be in the middle of it without being exposed, personally as to you know what the issue is, but firearms legislation, the laws, you know, are pretty straightforward on a federal level, it’s the state level you gotta worry about.

Rob McNealy – RobMcNealy.com
It sounds like a lot of fun that they’re not your problems, in other words?

John Bocker – FFLConsultants.com
Yeah, most of them are my problems but but also services that help people with problems. So, you know, on any given day, you know, because of what we’ve done JC and I have been risk managers for large corporations and companies for almost 30 years each. So as I, as I tell people, I basically kept people out of trouble for all that time kept companies out of trouble and CEOs and but we also protected those businesses from from unnecessary liability. And we just didn’t want to incur the problem, you know, do things right, stay out of trouble and have no problems. And you never want an OSHA or the ATF or the IRS coming to peek in, you know, to look at your business, I mean, and it’s just a disruption and distraction when that occurs. And if you doing anything illegal, when they do show up, they’ll come they’ll look and leave. And that’s all goal is to is to help them do. Let’s do that.

Rob McNealy – RobMcNealy.com
So it seems to me like, or at least it sounds like what the retailer is that it seems like paperwork is the problem, like just keeping simple errors to a minimum would impact that a lot.

John Bocker – FFLConsultants.com
Oh, absolutely. And the biggest problem in a gun dealership right now is the human we call it the human factor, its people its turnover, training, a lack of training as new hires, there’s a lot of great software packages out and available now for gun dealers to do a couple things for and if you’ve been to a big box retail, like ballasts Academy, or a sportsman’s warehouse, you know, they’ll have you go up to the computer, laptop or the computer screen and fill out the 4473. And that eliminates the nice thing is it eliminates a lot of the human error issues that can be logged at the time at a transfer Can you know that way, it helps the gun dealer speed up the process. And you know, you don’t have to review the form three or four times you can let the software manage that for you. The software has built in controls and filters to make sure you put a date of birth, that’s that’s all of it an 18 years old for longer. And that’s all it and 21 years old for a handgun, those types of filters are really cool. And make sure every box gets filled in and make sure that you know the alternate the optional boxes are filled in with with hints and why it’s important to do that, like your social security number. It prevents the gun dealer from having an empty box and therefore having mistake itemized for them when they have the next ATF inspection. But then on also on the inventory side is great software for creating the databases for acquisitions and dispositions. And, and in most cases, if you if you buy more sophisticated software package, they’re linked. So if I sell a gun, my inventory is adjusted and a disposition occurs and a timing so good. So we do recommend when we find gun dealers with higher volume of transactions, or excessive training issues to implement some of these software packages. Of course they you know, they’re not free. The ATF does provide some free software that helps. But for the most part, it’s the training process, the paperwork process that is hard to harder to manage. And there’s lots of statutes about how long do I keep my form, how even a denials where it was somebody turned down for a gun transfer, I still have to keep it for five years. And we still get questions on what you know what to do with this paperwork in this type of transaction. Because some of it is just confusing. And not everybody can keep up when they’re running a business. You just can’t keep all of those answers. Top of Mind.

Rob McNealy – RobMcNealy.com
That sounds a little crazy. I mean, we see that a lot in the crypto world to like. And in fact, at least in the gun world, there’s a lot more clarity like we already know what the rules are. In the crypto world, there’s a lot of lack of there’s a lot of I guess cloudiness, there’s not a lot of clarity. it because it’s so new blockchain and cryptocurrencies are such a new thing. Now, and I think that’s one of the things that is hurting the United States right now, a lot of these big crypto projects and blockchain projects are moving to other jurisdictions, because they don’t like the lack of guidance and clarity from the regulatory side from either than the CFTC, the IRS or the SEC in the United States. And so there’s a lot of stress there. And even with us with our test project, we focused very heavily over the last three years that we’ve been around on, you know, making sure we do our best to avoid, you know, regulatory risk as much as possible. But it’s so new and that, you know, you don’t necessarily know what you’re going to do something wrong, necessarily. And I think that’s it’s been interesting, you know, kind of in this space and at least in the gun world, you know, what the rules are, it’s pretty concrete. You know, the ATF changes its mind like you’re saying they let you know, they’re changing their mind. But right now it’s in you know, how this is what’s government paperwork, Number and regulatory enforcement is that the government’s not going to tell you if you’re if you did something, right, necessarily, they will tell you if you did something wrong, or they think you did something wrong, but they tell you, we’re not going to give you advice, you need to figure that out on your own. And then if you screw up, then they’re going to hammer you. And I think that’s actually not good governing in general. Especially if people are open and trying to do the right thing. They you know, if the government won’t tell you, this is not going to work if you do it, or this will work. And I think that’s a big problem. And it’s hopefully again, it gets figured out over time, because I think with these new financial technologies and and technologies that are coming around, I think that the United States should be able to be a leader in this space, and it is changing the world. But

John Bocker – FFLConsultants.com
You’re asking me all the questions. I want to dig into your stuff in just a bit. This whole crypto world is getting a lot of interest from gun to gun dealers, mostly the you know, the online gun dealers who are hearing about it, whether it be you know, Bitcoin or other type of cryptocurrency, and it being so new. I know it’s been around a while. But it’s still pretty new, especially with the firearms world where our business has been pretty, pretty normalized for the last 10 1520 years. And to your point, the laws have been around the law hasn’t changed much since 1968. With the Gun Control Act, it’s just like, as I said earlier, as some of the state laws that are confusing and challenging to keep up with, but um,

Rob McNealy – RobMcNealy.com
Well is what we’re trying to do is we we’ve created with TUSC, which stands for The Universal Settlement Coin, what we tried to do is we’re trying to solve a problem a payments problem, and a lot of people outside the gun world won’t necessarily know this. But in the gun world right now, lawfully regulated, heavily regulated, licensed gun dealers are having a real big time and a hard time with payments. And it’s not because of the loss, it’s because of a designation from politically active as banks have made it that the guns are treated like cannabis in prostitution and gambling. And so banks and financial institutions and third party payment providers don’t want to work with gun dealers and the ones that do want to take the risks charge a lot of basically a much higher fees for those services. And so with TUSC, we’re creating and have created a decentralized payment system. That is much cheaper than any credit cards out there. Right now, our network fee to the network is only half percent, and some of the gateway providers I think, will be adding 1% to that. So the idea is that instead of using a credit card that might be anywhere from three to 6%, depending on who you are, our network fees for every transactions only you can get the max, it’s gonna be as like a percent and a half. And then with a crypto payment scenario, you can’t be shut down. Right. So like a lot of

John Bocker – FFLConsultants.com
Yeah, that’s a great glad to leading into this, because that is a question we get very often. And as you know, we’ve sent some folks away just to talk about this, like with credit card regulations, and the banking Institute’s you know, basically becoming, you know, non NIH supporters, non to a supporters rather, it’s very confusing to a gun deal and threatening actually right now as to what to do so. So stay on this topic for a minute what, what solutions is TUSC bringing in that regard?

Rob McNealy – RobMcNealy.com
So we’ve created TUSC It’s a cryptocurrency it’s a standalone crypto coin, kind of like Bitcoin. Everybody’s heard of Bitcoin, but we built TUSC for the gun industry. So we’re a bunch of passionate gun owners and gun builders and, and to a supporters. And we’ve been working on this project almost three years now. But we’re kind of we’re called a decentralized project. So that means that we’re kind of like a cross between a co op and a nonprofit. So no one owns TUSC. We’re not a for profit corporation. And the decisions about how TUSC is operated, are made by the members of the communities meaning that if you own a TUSC coin, you get to vote, you get to have a decision or a hand in the decision making on how TUSC is operated. So it’s it’s basically buy the gun people for the gun people. And the network itself. It’s pretty straightforward cryptocurrencies. Imagine, like a lot of people are familiar with how PayPal works. And but no one really understands how the back end of PayPal works, right? No one really understands how the back end of Venmo works and most people don’t care, right? They just want to have a payment solution. But right now in the gun industry, the banks who operate all those different Different types of Venmo and cash app and stripe and square and all those. They don’t allow gun retailers to use their systems, because of politics, it has nothing to do with legality. And so because they view is the gun industry is, you know, like prostitutes and gambling and hustlers and everything else, which we know is not true. But so what we’ve decided is said, you know, we watched in and as a group, we decided to try to solve that problem. Like right now, for instance, and I’ve talked to a lot of, you know, gun related people, is that there’s this whole, like, political debunking, and D monetization, you’re seeing that on the social platforms with Silicon Valley. You saw that with salesforce.com, you saw that was Shopify, these these CEOs are just activists, and they just basically write an open letter and say, if you’re under the gun world, we don’t like you, and you’re off our platform, they just say we’re not going to work with you. So the in essence, how we we solve the problem problems, one, we eliminate chargebacks, there’s no chargebacks with TUSC. So if you’re a custom gun builder, and someone’s impatient, they don’t want to wait for the gun to be built, they can’t charge you back on TUSC. Whereas with a credit card, can because they’re considered a red flag industry, they don’t get much of an appeal process when they have a chargeback. The other thing is TUSC helps on cash flow. So for instance, right now, if you accept the gun friendly credit card processing, processor, you still might have to wait anywhere from three to 14 days for that, you know, acth to hit your bank account. Well, with cryptocurrency it hits instantaneously hits their wallet, their crypto wallet, so if I bought a gun, or if I bought a gun from you, with TUSC, you would instantly two and a half seconds to three seconds later you have that cryptocurrency in your wallet, and you can verify that it’s there. It’s just as fast as credit cards. But you don’t have to wait for the bank to drop it into your checking account. And then on top of that, it’s like an insurance policy because we don’t have the ability to shut you off. So right now, and you’re seeing that right now, like especially a lot of mom and pops, you know, gun stores will set up a PayPal account, right, but they won’t do it in there, they’ll they’ll set up their business name like JC enterprises or whatever. And it’s a gun store. And PayPal work for a while Pay Pal were for a while, then bam, PayPal stops working and freezes their account. And once because PayPal has ways to figure out over time, if you are a gun dealer or an illicit business and they freeze your account. With cryptocurrency, we’re not a company, I have no ability to shut you down. It’s not even in the code doesn’t work like that. And so if even if I wanted to shut you down, and trust me, there’s some people I’d love to shut down, I don’t have the ability to shut you off. And I don’t own in any ways. I’m just a, you know, a member of the the co founder team, but I don’t control it. I’m not a CEO or anything. But the network isn’t designed to be shut down. So if you host all basically host a wallet on your own website, and you’re willing to accept TUSC, you have an insurance policy against being d platformed. In addition to it. So we always tell people look, you know, crypto is a new thing, right? This is new technology, there’s a lot of pieces, it’s got a little bit of a learning curve. But let’s just say you got a gun friendly crypto, or a gun friendly credit card processing account already set up on your website, you can download a plugin for TUSC, put it into your website, and it’s another backup payment method. So of some day, that credit card processor that was gun friendly decides to be not done friendly anymore. You can still be in business with TUSC. And we don’t have the ability to shut you down.

John Bocker – FFLConsultants.com
So as a gun purchase as a firearm purchase, would I be able to go out and buy I noticed is all new and evolving. But right being able to how do I go out and buy TUSC or get enough TUSC. So then I can go online to use my TUSC currency to purchase my firearm.

Rob McNealy – RobMcNealy.com
So that’s kind of the infrastructure we’re building out right now. So we’re a new project, really. And so one way is you can buy it on set one of seven exchanges that we have were listed on right now or traded. So this is interesting about cryptocurrency is that they’re traded like stocks. And so the value is always shifting. So that’s a little harder for people to wrap their heads around. But right now you can buy TUSC very easily through seven one of seven exchanges and you just log into an account and set it up for free and then you can buy it with a credit card or if you want to buy a large amount, you can do a wire transfer through your bank to whatever exchange you choose. We are in talks right now and we should be on an ATM, crypto ATM network very soon. So I would hope like I can’t give a timeline but we’re in talks with the biggest one right now. And they’re talking about integrating us and so once that happens, we’ll be available on the big ATM network. So you can just go to an ATM and By TUSC, right through an ATM, and it goes right to your mobile wallet. And then we’re currently in discussions with several places where we’ll have the ability for people, for instance, that you can buy right from the website. So, and we’re gonna be working with the retailers on this. But if the retailer wants to accept except TUSC, they can set up an account with a variety of companies that we’re talking to, that they’ll have a little widget on their website that they can instantly buy house great then in there. And so we’re making it as easy as possible for people to get TUSC. But with any cryptocurrency, the we call it, the on ramps are the off ramps to get into crypto and get out of crypto. Those are the those are the things with pieces that we’re kind of building right now. And, and we’re not going anywhere. So we have a roadmap and where we are, we’re still I still think of us like a startup though or not. But there’s a lot of that infrastructure we’re building out right now. But we’re going to have all those pieces, you know, pretty quickly, you know, set up for retailers. So when we go and sign up for retail, we’re like, Look, here’s how you deal with the wallets and the plugins. And this is how your customers can get TUSC and things like that. So we’re gonna help hold the hand of retailers, which you won’t get with any other cryptocurrency, like if they want to accept Bitcoin, there’s no one from Team Bitcoin that’s going to come to your shop and help you set up or, you know, walk you through the process. Whereas with TUSC, we will because we are part of the gun community and we fully support it, and we want to help we created the solution because this has been a big problem.

John Bocker – FFLConsultants.com
Yeah, you know, we saw you had a SHOT Show, we got talking to you and thought this whole platform was state of the art ever, you know, quickly evolving. What did they got? Did what did the gun dealers, a logic guys that you spoke with on a lot of meetings? What What was their take on moving in this direction.

Rob McNealy – RobMcNealy.com
So I think that’s like how I think it really fell down how you would think of it the younger ffl the guys that grew up with social media, the guys that are you know, you know, a lot of the vets than that community, they get it, it’s not even a lot of them already have cryptocurrency, so those guys already get it, the guys that are already doing, you know, spending their time doing a lot of e commerce and really leverage a lot of Instagram, those guys get it. The I think it’s like the people that are a little more resistant or more the the Fudd guys that they always sell 40 fives in their gun store. You know, those guys, you’re never gonna win over to this. And so but i think i think it is a demographic issue. And we don’t expect every gun retailer to accept us right away. We think this is gonna be a long term process, but we’re going to be a long term project. So we don’t we’re building something that’s going to last and be here in 50 years. And so we also..

John Bocker – FFLConsultants.com
It also depends on the financial community, right? How many, you know, Citibank, when Citibank doesn’t take care, your credit card doesn’t lie credit cards to be processed anymore, because your gun dealer or Bank of America, I mean, it starts to raise some eyebrows, right. And, again, like I said, we’ve had people panicking, because of their 48 hour a 72 hour notice, you know, what do I do? And, you know, it’s nice to have an answer on the horizon here.

Rob McNealy – RobMcNealy.com
Yeah. And so and we’ve run into that to you and I and I can tell you even as shacho, I talked to a lot of merchants that really had that same problem, that they literally were using something and they got a short notice, then boom, they’re out of business for two months, I was on a website, the other day, I was looking for a component because I build guns as a hobby. And I was looking for something and the website, and I’m just like, I tried to get ahold of the guy. But the website said, we’re down because we lost our merchant processing right there. And it was just like, we got the solution for that. And so and what we’re doing right now is we’re we’re kind of going to be launching this beta pilot program. So we got some, we got a bunch of things that are going to be put into, we’re gonna be launching a bunch of products to support retailers here in the next couple months. But any, if you have any ffls that are interested, we’re going to be launching this beta pilot, so we’re gonna want to bring in a bunch of retailers that want to be guinea pigs, so to speak. But for that, the they’ll be they’ll get some share of TUSC coin for their own risks. So there’s gonna be some compensation involved for them taking the risk and some pre free promotion, free marketing that comes with that. Because it’s going to be a learning curve, we need to get some feedback from the industry. And so we’re going to make it worth their time if they want to come on board and be an early adopter of TUSC. But I think this is the future. And you know, we don’t know what’s going to happen politically in this country either. Right? It certainly seems that one side of the ticket has already told you what they want to do, right? And you know, and you would know this too, just like in a lot of retailers, the words operation choke point come to mind back under the Obama administration back in 2012 2013, when they really put the hammer down on the financial industry to basically mess with the gunnery world. And so you got the same type of people going maybe in maybe in In a couple months, and you know, you never know when they’re gonna try to pull the rug, they’ve already said they’re anti gun, they already said they’re gonna try to come down in the industry. If they can accept task, it basically decentralizes and pulls away some of their tools to screw with people, at least on the financial piece of this. And there’s no. And again, remember, though, like if all of a sudden, the somehow the Gov the Treasury Department or the Comptroller of the Currency or whatever government agency they leverage, tell banks that you can’t let them buy guns with credit cards anymore. What are they going to do? Because if they can’t do that, that affects Venmo, and all those other places, too. So they don’t have another option there? Because those are all based in dollars. Yeah, I think currency solves that.

John Bocker – FFLConsultants.com
It’s been kind of a quiet issue for the last six months to a year overall. But I want to say, you know, we’re not sure what’s going to happen with the election. And, you know, this would be one to definitely watch. It might be something just sleeping on the side. That can be, you know, resurfaced here flooded very quickly. So good luck. How so? What’s the ETA Rob on your, your platform being available?

Rob McNealy – RobMcNealy.com
Right now we are available, we already have a working protocol we already have. I mean, we already have a product out there, you can buy TUSC on exchanges, right now, we do have a cloud based wallet. So if you want to get your fingers wet, and just try it out, you know, people can reach out to us at TUSC dot network or just me, I’m just at Rob McNealy calm. And you could contact us either one of those two websites. But you know, so if anybody’s got questions, I’m really easy. Just plug Rob McNealy into Google, you will find me, and I will be happy to answer any questions for anybody out there. But I think also, you know, even if they’re not the banked, cryptocurrencies cheaper than normal credit card processing, because you still have that issue, right now in the gun world, even when they got have gun friendly payment processing, with credit cards, they’re paying really high fees, with those even gun friendly, because there’s only you know, there’s a few merchant processors that will do the whole gun thing, but they’re expensive.

John Bocker – FFLConsultants.com
TUSC. Yeah, I hear that the risk is being assessed as a premium to those who are staying and, and sad to say, but you know, supply and demand is not there. So the ones who are still in the game are raising their prices, I think artificially, and I don’t think that’s a fair thing to do so.

Rob McNealy – RobMcNealy.com
So when we tell people half a percent charge, or half percent transaction fee, no charge back and you get instant settlement into your wallet, and you get free promotion, and you’re getting insurance against the banking, the economics make sense, just on that to compete with normal credit card processing, and so on. And so like I said, it’s a new thing. But I think it is the future, because, you know, it’s interesting, the CEO of cash app, which is also the CEO of Twitter, jack Dorsey, they this week, just bought, they just diversified 1% of their company holdings into bitcoin. $50 million worth this last week. So corporate America is coming into crypto now. Okay, and this isn’t going anywhere. The crypto world is about a, you know, almost $400 billion market cap right now. Okay, this is not small money anymore, their institutional money, the State of Wyoming just allowed it that they can make crypto banks in Wyoming now. It’s the first state in the country that allows banks to actually hold crypto now as a custodian, okay, the crypto world is coming. Okay. And there’s there’s thousands of cryptocurrencies out there all kind of competing with each other. But none of them are focused on the gun industry, like we are with TUSC. So here’s the thing, it’s gonna happen. And it solves a problem now. So it just makes sense, to at least look at it. dip your toe in the water. You know, if you’re interested in coming on board, let me know, we’ll make it happen for you.

John Bocker – FFLConsultants.com
Yeah, it’s nice, nice to see you’re isolating and dedicating all of your research and platform development, everything to the gun industry, because I think it’s going to be an industry is lagging the lag behind just like, you know, other industries, you have the cannabis industry, you know, that’s highly regulated, the regulated depending on where you go with the gun industry is not going to be acceptable to everyone in this crypto business. So I applaud you for creating this, this community. So

Rob McNealy – RobMcNealy.com
Well, well, then, john, I really do appreciate it. And I appreciate you coming on the show today. Where can people find out more about you? Where can they find out about ffl? consultants?

John Bocker – FFLConsultants.com
Yeah, that one’s really easy. It’s ffl consultants calm, you know what, and that’s how most people find us or Google or when they’re looking for an ffl consultant. You know, we hopefully pop up first, and our phone number is available at our website and all the contact information. And let me just remind our listeners that your first call is always free. So just go online and schedule a call with us and we’ll make sure we get you get we get your questions answered fast.

Rob McNealy – RobMcNealy.com
John Bocker, thanks so much for coming on the show. And folks, I will have Have all of John’s information contact information and website at Rob mcnealy.com and tune in make sure you hit that subscribe button on all the major pod catchers and our library and YouTube channels. And thank you so much for listening.

John Bocker – FFLConsultants.com
Thanks, Rob.

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Jeremy Kauffman – LBRY Transcript

Jeremy Kauffman

Note: This transcript was automatically generated by artificial intelligence (AI) and therefore typos may be present.

Rob McNealy – RobMcNealy.com
Hey folks, Rob McNealy here. And today, we’re gonna have a good show because we are talking to the CEO and founder of library, Jeremy Kaufman. And we’re going to talk about a lot of different things today. And I’m actually kind of like schoolgirl giddy about this, because I love their platform. So, Jeremy, welcome to the show. How are you today?

Jeremy Kauffman – LBRY
I am doing well. And I’m also excited to be here.

Rob McNealy – RobMcNealy.com
Well, good. Well, thank you. I know we’ve you know, we’ve chatted a little bit on, you know, social media over the last few months, and you guys have been very helpful and onboarding me to your platform. And I really do appreciate that. And I can tell you in and you’re not paying me for this, just so you know, everybody out there full disclosure, I am literally a fanboy. I’m not even trying to build up my YouTube anymore, I just find that YouTube’s a waste, it’s a waste of time for me as a creator. On that side of it. It’s not worth me putting the energy into building up a YouTube following anymore. I’m putting all my energy into building a library following not only because of the democratization of YouTube, and but the fact is that I deal with controversial subjects that, you know, the people that run YouTube don’t like, and so I think there’s too great of a risk, long term building on that platform, at this point, and I’m putting my energies in the library. So Jeremy, tell me about you. And then let Tell me about library?

Jeremy Kauffman – LBRY
Well, first, just want to say that’s, that’s awesome to hear. YouTube has definitely become very corporate, you know, they’re basically the cable that basically cable news now. And library, we think is, is a big part of the answer to that, you know, if if I introduced library to, to Super do in the super normal way, I might call it something like, Oh, it’s just your library TV is just YouTube with better policy. But ultimately, what we’re doing is much, much more ambitious than that. You just can’t always express that ambition in a single sentence. You know, since your audience is, is nerdy, you know, maybe I can, you know, we’re trying to build a decentralized digital content marketplace. You know, the idea is to make services like YouTube possible, but to do it entirely via open technology to do it in a way that’s not owned or controlled by any one entity, just like the Bitcoin network or any other public blockchain network. It’s, and so I think that idea is really powerful. I think it’s part of why we will ultimately succeed, because it’s also it’s different in a fundamental way. You know, like, if I if I started another video platform, and it was just YouTube with better policy, well, you know, who else had a better policy than YouTube? YouTube did 10 years ago, right? When you’re, you’re the underdog. You know, you’re super nice. And then when you’re the when you’ve won, you become a big jerk, right? That is the pattern of Silicon Valley. Right. And I haven’t talked about myself much. But this is not my first venture. I have been in the software industry for some time, and have built a much more traditional SAS company, before starting this company, and working on working on this one. Um, but I’m much much more motivated to work on this one. Because I think what we’re doing is so important.

Rob McNealy – RobMcNealy.com
So tell me a little bit about your structure. How are you governed? And are you a company foundation? Are you decentralized? How does library function and govern itself?

Jeremy Kauffman – LBRY
In a pretty boring way? We’re actually so there is a separate library foundation to be that to be that nonprofit, and have that set of incentives and be community run a library Inc, which is the company that originally created the library technology is a, a pretty boring, Delaware, C Corp, traditional Corporation. All the corporation is almost entirely owned by people who work here. So I will say that’s different library did get a little bit of VC funding, but the the VC has a all investment actually all investors in aggregate, have a substantially minority stake in the company. So the company is effectively owned by the people who, who work here. Right? So it’s they that we, and then we function like a traditional Corporation, there’s a board of directors, the board directors, Alexa CEO, which is me. I am also on the board, and that and then I I run the company. Now, what’s different is that what the company produces is all completely open technology. It’s all open source. It’s all open documentation. And there’s the key. The key difference in terms of what we ended up building is this ability to leave this ability to, essentially to, to exit to change the rules with which you’re governed by and I think This is the key component in systems that actually prevents them from sort of going downhill. And that email would be an example of a system that is interoperable and not owned by any one entity. And this means that one company, even though Gmail has cornered the has has a lot of the email market, I went to the corner, because you can’t really, they don’t have that same potential that a Facebook does, or a YouTube does, where once they’ve gotten a certain segment of the market, they can now you know, squeeze, start squeezing you and start taking advantage of you. We don’t see this nearly as much with email as we do with large social media platforms, were all of a sudden bad policy, right? Like, no one knows Gmail, Gmail has never Google would never consider you filtering emails out of your inbox without your permission, but they’ll filter videos because they, they can. And that becomes profitable for them to do that. So that’s what we want to do. We want to turn video distribution, digital content, publishing, not just videos into something that is, I know, it’s not the sexiest word, but we want it to be a little bit more email, like in terms of not being locked into one piece of software not being locked into one way of doing things.

Rob McNealy – RobMcNealy.com
So what prevents you devil’s advocate, and I’m genuinely curious, what prevents library from growing, growing, growing, growing, and you guys have been growing exponentially, especially in the last six months, at least what I’ve seen what prevents you from being the big YouTube in the future and turning into a bad guy? What, what have you put in place to, you know, try to make it so that doesn’t happen? How do you mitigate that risk?

Jeremy Kauffman – LBRY
Yeah. So that’s, that’s a great question. And I would in general, like, be skeptical, ask, ask hard ask hard questions, we want this stuff to stand up to scrutiny, because that’s how we know that it works. And it’s possible that there’s a key distinction. And this is actually something we’re working on, we had a blog post out about this, about how we’re going to be straightening out some of the and changing some of the naming of some of these things. So there’s library.tv library.tv is like Coinbase, right? It is not a fully decentralized experience, it’s interacting with the decentralized network, right? Coinbase interacts with a bunch of different decentralized networks. But Coinbase itself is not decentralized. Coinbase is Coinbase. It’s a company you’re interacting with Coinbase. Though, we are currently providing both the coin based experience, and we’ve built the software that powers the the Bitcoin experience, right? In the center, I say the Bitcoin experience, I mean, you can use it locally, you can use peer to peer version, you can use a desktop client. So that client is always going to be completely up to the users how they want to use it, they will never be something at that level, where there’s censorship, you know, network wide, or anything like that, you will have the ability to use that software locally, configure it now, you have to know you should still follow the law, right, you still have an obligation to use that software legally. But that software will not be controlled by us will not be censored by us that interacts with a peer to peer decentralized network. And so that will always be there, that level will always exist, and really can’t be interfered with the web versions are going to have to set policies, right. It’s not as simple as it’s both not, but it’s both not legal, nor as simple as like, just try to serve everything as as much as possible, right. And so our goal with the web experience is to provide something that works for large numbers of people, if that ever means some people, that that experience doesn’t work for them, there’s an ability to have both a multitude of web experiences, you know, so if Gmail stops working for you, you go to protonmail, you go to Hotmail, whatever you go to where whoever else you want to go to. And so we expect the same thing to happen with, with any web experiences that we provide, ultimately, that following that you’re building up, all of that is not owned and controlled by the company. So you can take your wallet out and go take your wallet and go put it into another service or go use your wallet locally. At which point, we don’t have, you know, we don’t have that level of, of influence or control of me. So that that’s a huge check. You know, there’s no if you stopped liking Facebook, or you stopped liking Twitter’s policy, you’re there’s no ability to like all of a sudden all of your friends on Facebook to with better policy, whereas in the library design of things, that’s all possible.

Rob McNealy – RobMcNealy.com
So what kind of drove you to do this? You guys have been around since 2015?

Jeremy Kauffman – LBRY
Yeah, the first work began in 2015. The company, I don’t believe technically existed in 2015. The the no one was the first sort of like full time real work began. Like mid 2016 and onwards, shortly after the blockchain launch, we basically launched the blockchain in 2016. And did some fundraising actually after that when we were a we did no Ico and no Uh, no real fundraising until after we put the blockchain up. And we didn’t we didn’t either. Yeah, nice. Excellent. Yeah. I actually potentially strategic mistake, who knows. But honestly the reason it all went this way and was like, you know, to me, if I have like if I have a certain itch when it comes to building something, it’s just like really, really hard for me not to scratch it. And so I was working at another company where it also sort of built that company up. And it’s another software product much, much more boring than this one. And that company was doing decently but I just couldn’t stop thinking about this idea. I am a computer scientist by, you know, education and I was learning and going into blockchain and thinking about how it works and thinking about other technical systems and like, where, what’s different about blockchain? How could it be used, and I just couldn’t stop thinking about this. This this idea of building using a public blockchain to serve as a registry of content that exists. It’s why the company is called library. And I’ll continue to make unsexy metaphors and references here, you know, like, we wanted it to be something like the old card catalog, right? That everything except for everything right? can we can we use a public blockchain this permissionless system to keep a register of stuff that exists? Because we already had good peer to peer tech like BitTorrent works. BitTorrent, censorship, resistant, BitTorrent, user experience sucks. BitTorrent is not great for creators. But as a peer to peer tech bit torrents amazing and it’s elegant, and it’s well designed all these things. And so really, the core idea, we did several things on top of this and afters, but the core idea was a public blockchain could solve some of these problems with BitTorrent around indexing identity payment.

Rob McNealy – RobMcNealy.com
Sure, um, compliance is a big deal. And in the censorship is a big deal. That’s it’s all the rage right now. Right, especially in Silicon Valley. They just seem to like want to wield that hammer. Yeah. How is censorship and in house bad content, for instance, or maybe potentially illegal content dealt with on your platform?

Jeremy Kauffman – LBRY
Yeah. So this is a this is a great example of some of the things we were talking about before. And those answers can be slightly different, right? If content is illegal, there are strict things you have to do, and we follow all the laws. And I’ll talk about specifically what we do that there’s also content that could be damaging to a brand or that people may just not want to be associated with, right. And how you deal with that stuff can actually, that’s also very tricky, right? In fact, all the debates with YouTube, right, it’s generally not around illegal content. Everyone think, you know, right? It’s generally around stuff that’s legal, but debatable to certain populations. So I’ll let me give the full answer on like the illegal stuff. And then if we want to talk about the legal but debatable stuff, we can talk about that as well. On the illegal stuff. We are a Registered Agent, with the federal government, United States government. And so when we received DMCA I assume we’re mostly talking about DMCA is but for other legal stuff, it’d be a similar process. But basically, we receive complaints, we validate the complaints, it’s illegal, we maintain a list of essentially hashes that are known to be illegal. And then those hashes are circulated to other operators in the network, who who choose to if they want to use the software legally choose to respect those lists. So this basically comes down to your wallet server when you’re using the desktop client. So your desktop client, by default connects the wallet servers that we run, which are then going to listen to our our blacklist, and we encourage our wall, all wallet server operators to obey the blacklist. But if you’re in a country with a blacklist don’t apply or whatever, you could run a wild server and then not not listen to those blacklist and return whatever metadata or data you wanted to, that you wanted to return. So basically, we provide those lists as a service and circulate them so that operators can, can follow and listen to them. And of course, all the websites that we run and everything that we run a baseless blacklist.

Rob McNealy – RobMcNealy.com
So that kind of almost voluntary kind of methodology. Is that, I guess it sounds like it’s compliant with us regulations. And like, have you had any pushback from the government on that?

Jeremy Kauffman – LBRY
We haven’t had any pushback from the government yet. I’m sure. I’m guessing you and your audience will appreciate that. You know, the nature of the law is frequently that there is no clear Answer and ultimately find out in court. So you were trying very much to follow the law, I pay lawyers amounts of money that I really don’t like paying them, for them to tell me. Well, this is probably how you follow the law. But we don’t really know. I mean, because you don’t know, you don’t know, sometimes it goes, sometimes the cases are so ambiguous, they go all the way to the Supreme Court, right? cases, like the the grokster case, or the Aereo case, are two examples of case law that come up when you’re when I when both I or the law, the lawyers attend to do research on this. And, you know, these cases made it all the way to the Supreme Court, because it was unclear, right. And so we think very much that what we’re doing follows the law. If, however, like a you know, real challenge, like it would have to go probably through some layers of court, because you’ve got a bunch of laws that aren’t written with decentralized networks in mind. They’re written with a traditional sort of client server model in mind. So when they’re using some of these terms, your What do they mean? Who is responsible? You know, like, for example, not trying to I hope the federal government is listening to your show, I think the federal government could argue that every, every person mining on the Bitcoin network is violating money transmission loss. I’m not saying that this, this argument would hold up. I have no idea what the courts would say, right? I think it probably wouldn’t work. But I think you could plausibly argue it. And if the government decided to argue it, it would have to go all the way to the Supreme Court. Right. Right. So that’s a that’s the unfortunate, unfortunate answer.

Rob McNealy – RobMcNealy.com
Well, it’s interesting, you know, because we’re a project as well. And it’s like, we’ve done things that are gray, like we you do everything, we as a project have done everything to avoid regulatory risk, right? We’re not out there thumbing our nose at the government and things like that we we want to focus on lawful markets and things like that, and do really good things, right. But there’s still some like, basically, areas where the guidance from the SEC doesn’t apply to things that we’ve done. Like, just doesn’t cover it. Like they don’t address it. And so that’s what I always say it’s gray, because no one’s determined or tested the theory legally, one way or the other.

Jeremy Kauffman – LBRY
Yeah, I mean, it’s awful. It’s awful. I mean, the case of the SEC stuff, it’s like, I’ll give you an example of like, there’s no pro you can’t get any proactive assessment, right? You can’t spend any amount of money for the SEC. So I like Oh, okay. It’s not and I’m talking about like, yo, you can’t pay $100,000 sec, go, please tell me what the legal status of this is new doesn’t you can’t do that. All you can do is operate. And then one day, they may or may not. They may or may not come and ask you a question. That’s the way it works. And in terms of some of the SEC stuff around our token securities, the SEC has said this. Ethereum was a security when it started. Right. That’s what they said security means that it’s not a security to that. Right. Okay. Logically speaking, something that started as a security and is not a security now had to, at one point transition from one state to the other. Right, you can’t go from it. Okay, When did it happen? Well, we’re not gonna tell you. Right. So they’re saying that at some point between the founding of it there, because they have no precise criteria, they don’t have it. What they do is they, they they write laws, so that they’re incredibly vague. And then there’s a bunch of discretion that’s left up to, to the people. And so we have no idea what tokens are securities or not. I mean, they’ve been very, very few cases that have actually, you know, even happen, for the most part, the ones that the SEC has chosen to do a case on have been the ones that are like they’re pretty, very pretty, very clearly a security. So there’s a whole bunch there is a whole wide swath here where we have no idea what’s what’s legal and what’s not.

Rob McNealy – RobMcNealy.com
Yeah, and it comes back down to is that there’s always that that hammer, like hanging over your head, right. And like, you know, I choose to ignore the hammer because I want to be able to function and work hard on our project. But there’s always that little gray thing like, Oh, yeah, if someone really wanted to be a jerk, they could, you know, cost you a lot of money going to court. Yeah, ultimately,

Jeremy Kauffman – LBRY
I hate it. I hate it. Honestly, it’s Sunday. It’s like a real it’s something I’m actually pretty passionate about. Because I think it’s I think it’s sad. And it holds back a lot of things. It means you have to be like a we like I’m a risk tolerant person, like I’m very comfortable with risk. And it means that you’re basically like, I you’re restricting like that. The only weird people like me, are going to do some of this interesting work, right? Yeah. Yeah. But like, but there are lots of people who are like really smart people who are not as risk tolerant maybe as you are, I are, and they’re not going to enter this space, and they’re not going to do interesting things. And that’s sad. Like there’s no because I could have been I could have in 2016 describe for you exactly what library is what the network is going to do. How’s it going to work? And like it would be nice to be told, even at some expense even if it’s $100,000 even a million dollars or more? Can you tell me like before we spend way more than a million dollars? Like, is this allowed or not? Like, is this the right way to do it? How do I do this? It’s legal, you can’t do that. All you can do is spend, you know, we’re talking about hundreds of thousands of hours of human effort has been put into the library project at this point. And I fully expect it to be legal. I want to be clear, I don’t think it’s like some 5050 thing. But I don’t think it’s literally zero. Like, I don’t think it’s because I would have said there’s no way that area, which is this antenna case in New York City, I would have thought I said there’s no way area is gonna lose the Supreme Court case area is definitely legal. And then the Supreme Court made up a law made up a rule to say that area is not legal. And we can talk about that case if you want to get into, but it’s like, it’s so you never know.

Rob McNealy – RobMcNealy.com
Yeah, I think that’s it’s really unfortunate. But I mean, even if you spend hundreds of thousands of dollars on attorneys, you might get something called a Saft. And then you try to call it a utility token. And we know how most of that’s ended up already. So it’s like, like….

Jeremy Kauffman – LBRY
I should be able pay the government, like I should be able to pay, like if you’re gonna if you’re willing to investigate people on your own dime sec, like, let me pay you to get a proactive judgment. Like even if the sticker fee is really high, that you should be able to get a proactive judgment from courts before you like to say that like the only way we can tell if a technology is going to be legal or not, is to build it. And only after you built it, dispute it, it’s just crazy. Like, why can’t we have some more more proactive way of getting some of these judgments? It’s just incredibly inefficient, like area a bunch of people spent their lot, you know, multiple years of their lives building up a company in the Supreme Court says you can’t do it. I mean, why couldn’t the Supreme Court like why couldn’t do it, even if it’s, you know, $10 million 100 million dollar areas probably spent hundreds of millions of dollars before they’re shut down? You know, so you never, it’s just, it’s just, um, well…

Rob McNealy – RobMcNealy.com
What were the circumstances in that case?

Jeremy Kauffman – LBRY
The area cases the one so this is I love this case. So the, this the, it was, it’s like a rebroadcasting thing. So Aereo, did antennas in New York City. So they would, on your behalf by you, personally, an antenna, so you would own an antenna in New York City, your antenna, one antenna per customer, a discreet antenna, that antenna was yours, and then they would rebroadcast the output of it over the Internet to you. Okay, so you could basically get in New York City, over the air television, anywhere in the in the US by buying an antenna and letting area post it for you. That’s the Supreme Court said that, because users interact with this service as if it were a cable company. It therefore is a cable company. So they said that this makes Aereo, a cable company. In the same ruling, they said that it would be completely legal for me to go onto Craigslist and post and say, Hey, will you put an antenna in your house for me and hook it up? In this way? I’ll pay you $100, right, that’s legal. So I can still hire someone to do this exact service. If a company tries to proactively do it, they basically said that makes you a cable company. Because users think that you are one, therefore you are one and you’re governed by cable, cable company law. Like nothing in the cable company law says this, like they basically made it as far as I can tell. I mean, they didn’t literally make it up. They they come up with a chain of logic. But I think it’s like utterly crazy to say that, like what makes something a cable company is whether people perceive it as one, you know, they’re not a cable guy. They’re not they’re not running cables through the line. They’re taking a you know, they’re, they’re taking something over the air. And, and you know, so it’s like, were they, you know, to me, if you want to be part of a society is you need to have like laws with clear meaning. And I think that we have a lot of laws that basically end up with these very vague meanings. And so you never know what how they’ll actually be interpreted-until they’re interpreted.

Rob McNealy – RobMcNealy.com
So where do you see the future of library? What would you say your main goal with library is at this point, you guys are humming along? You guys have millions of users on your platform now? Where would you like to see library over the next three to five years?

Jeremy Kauffman – LBRY
Uh, so I think we’re close to I think we will absolutely be cementing ourselves as the number one alternative to YouTube. And then soon YouTube will be, you know, the number one alternative to library, I think. I think but I think I actually I want to grow beyond video. I think we’re gonna be everywhere be YouTube. I’m not saying it’s like, easy, like we’ve won or something. But we’re gonna be we’re gonna be YouTube. I mean, YouTube’s done. Like, there’s just like everything about the way that Google works as a company, all of their policy actions. It’s like, I like if I were observing the way that I guess I kind of observe them from the outside. I don’t work there. Like it’s seriously like someone in my company is like paying them or has like blackmail on them. Like, they’re my, they’re our best friends. Right? They’re literally helping us succeed. And everything they’re doing is just driving people over to library. And I think that what we’re doing is is so fundamentally different, that they can’t adopted, that’s really important, by the way, in terms of success in business, you know, like, one of the reasons that underdogs frequently don’t win is the, the the established the overdog, whatever, can just Co Op, right? The same reason that third parties don’t win in politics a lot, you know, a lot of the time is that if a third party has a really good wedge issue, well, just one of the major parties will just adopt the wedge issue, right. And so, same kind of thing. But in this case, our whole competitive advantage is tying our own hands. And so it’s like YouTube, you know, and when your competitive advantages is so fundamentally different companies tend to not adopt it, like YouTube would have to blow up their entire business to defeat us. And I just don’t see them doing it. What I want to do is, I want to begin pressing into different areas. Like right now, everything’s been library library library, it’s been all one, one single, multi purpose app. That’s not the way we ultimately experience media. We use one app for podcasts, we use another app for news, we use another app for video. And even then, for video, we might use a different app for user generated content versus for, you know, more corporate content. And there’s even other things, there’s CAD files, there’s comic books, you know, there’s all kinds of even niche, digital media. And ultimately, I think library can disrupt any number, any number of these spaces. And so I want to start looking at forming partnerships, business development deals with other entities that could adapt the library technology and and disrupt, begin disrupting some of these other verticals as well.

Rob McNealy – RobMcNealy.com
I might have someone I want to introduce you to off the air. That might actually be beneficial.

Jeremy Kauffman – LBRY
Yeah.

Rob McNealy – RobMcNealy.com
So I know you’re kind of pressed for time today. So well, Drew real quick. Where can people find out more about you and library and how can they get started on the library platform?

Jeremy Kauffman – LBRY
Yeah, so the number one thing I’d say you can ignore everything else after this. I’ll say a bunch more things. Go to LBO. YTD create an account. Follow me. Follow Rob. And follow some other creators on there. There’s lots of great youtubers making their way over. There’s lots of great original stuff. And just start there. If you’re a creator yourself, and you’re on YouTube, you’re not safe. At a minimum use lbr y comm slash YouTube to copy everything over. We are on basically every social site, I would say we’re the most active on Twitter, but we’re also on Facebook and everything else. We have a Reddit and you can find all those just type them in. I won’t say all the links. And if you want to follow me personally, I’m probably Twitter’s the best. My handle is my full name. Jeremy Kaufman.

Rob McNealy – RobMcNealy.com
Jeremy, thank you so much. I’ve enjoyed chatting with you today.

Jeremy Kauffman – LBRY
Thanks, Rob.

Rob McNealy – RobMcNealy.com
You have a great day.

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Christopher Brown – Failed State Transcript

Christopher Brown - Failed State

Note: This transcript was automatically generated by artificial intelligence (AI) and therefore typos may be present.

Rob McNealy – RobMcNealy.com
Hey folks Rob McNealy here. And today, I’m going to be taking a little deviation from our normal kind of interviews. And I’m talking to author Chris Brown. He’s the author of failed state. And this is a kind of dystopian novel. And, you know, I don’t only cover books and novels on this show, but I think the topic that he addresses in a very clear and concise way has a lot of parallels to what we’re seeing out there in the world in the economy today. And I thought his take was really, really interesting, and I thought he was worth having on the show. So Chris Brown, welcome to the show. How are you today?

Christopher Brown – Failed State
I’m doing great, Rob. Thanks for having me on.

Rob McNealy – RobMcNealy.com
Well, I appreciate you coming out. You’ve written some interesting fears. So I’m really want to hear you know what got you into this. But tell me a little about yourself. How did you get into being an author?

Christopher Brown – Failed State
I mean, I’ve been writing science for Rob, probably for close to 20 years now, but most of it was short fiction that I was selling to magazines. And then all I guess it was in the past decade, but really about five years ago that I started really trying my hand at writing novels. And I didn’t set out to write dystopian novels. But I wanted to write a novel that explored the scenario of what would it look like if we really had like a popular uprising in the United States? At the time, I was beginning to work on the book that became my my novel tropic of Kansas. occupy was kind of still in the air there was even like an occupy camp, and an old neon plant across the street from the place where I live in a kind of industrial neighborhood in Austin, Texas. And the Arab Spring was happening. I was like, what would that be like? What happened here and then immediately realized, well, that day happened here things would have to get a lot worse. And and imagining that scenario of things getting a lot worse, didn’t really turn out to be that hard because you can look at both kind of emergent trends in the world around you. And you know, available known history. And pretty quickly imagine scenarios where things could go a little loco so so it tropic of Kansas I imagined, which I wrote not 2013 2014 I imagined a charismatic CEO becoming a kind of authoritarian president. And there being a variety of factors that contributed to kind of a breakdown and then an uprising and in failed state which is the kind of follow on to that as well as the follow on to my novel last year, rule of capture, it takes in a little bit of a different direction it’s a kind of a little bit more utopian. I’m imagining like, okay, after we have the collapse of the American nation state, something that, to me feels like it’s a could plausibly happen. You know, the, the, the idea of the nation state is a kind of a 500 year old business model was starting to show its a turn into creak at the seams and various of its contemporary iterations. And I said, this is kind of like utopian legal thrillers like you might say, like Better Call Saul meets Mad Max, about a guy trying to play off to different factions that are trying to build a better future and, and kind of to the ultimate answer to your question. I’m interested in science fiction because I’m interested in that idea of like imagining what a better future looks like. I’m interested in the sort of literature of the possible and the idea that A lot of the really fundamental things we take for granted as kind of sacred institutions are impermanent things that have to grow and change and evolve. And and I’m interested in exploring where they can go and this particular sort of genre you know, that explores what happens in the aftermath of catastrophic events, if you will, also has the potential for a lot of fun and you know, a bit of adventure.

Rob McNealy – RobMcNealy.com
So I think you brought up an interesting point is that, you know, things do change in it’s part of the human condition, though, that we hate that. And I always tell people change is the most natural, you know, thing that always is happening, change is always happening. Yet humans hate it. It’s like, and to me, I think, I don’t know if we just, you know, don’t want to believe that or we are just in the West. At least raised to believe that change is bad. But people hate change. People really, I think tend to like routine. And I think they get really freaked out when things happen. And things can change very quickly. And I think, you know, here in the West, especially in the United States, we’ve had probably compared to most in all of history, we’ve had a really good run a lot of stability in one place as big as it is, for a long time. And that’s actually pretty unusual. You know, if you look at a country having stability as long as the US mostly has. And so to me, I think just almost, it’s almost inevitable, that we’re going to have some big changes, probably in my lifetime in the United States, because that’s just we’re gonna host it. It’s just a statistics thing, right? It just over time, things will morph and change. And I think a lot of people view that as dystopian in your books before we get into new failed state and kind of the aftermath What would you see? or what have you been writing about as far as what do you see as the central story themes of the things that cause or could cause failure in the United States?

Christopher Brown – Failed State
Oh, that’s a great question Robin and it’s varied and each book kind of tries to tackle a different theme. tropic of Kansas, the first book really focuses in on the appetite for power that some people have and how the accretion of power and and to a lesser extent well, but there’s the accretion of power and a single person that kind of like a single leader or a small group of people. To quote Lord act and you know, corrupts power corrupts and leads to the erosion of institutional strength, rule of capture focused on on one level, the justice system and the ways in which it masks often through the veil of reason, a system that’s really about power and conquest and its route, the way that you know, most real property rights are ultimately founded like in this country in particular on, you know, a form of staffed or you know, power at the end of the gun to the kind of conquering of the American continent and that’s also true history of most nations of the world. failed state tries to dig into a much deeper historical problem that kind of get back gets back to your, your comment of a moment ago about the inevitability of change, and our resistance to it and that’s about the relationship we have with the natural world and the way in which I think the way that the human apprehension about change manifests itself. Most notably when you kind of step back and kind of take the vantage point of the visiting Martian is through our desire to really control the natural world around us. You know, our entire civilization is based on control, you know, control of the reproduction of others, other species in particular, right, you know, pasture agriculture, grain monocultures. And, and all of these things we do to like, put the natural world in our service to sustain the growth of our population. And, and I think, again, you see in some of our current issues, the potential for crisis that can come out of an imbalance in relationship with the natural world. And so those are the kinds of Yeah, those are some of the kinds of core trajectories that I’m trying to look at as failure points and the kind of contemporary Yeah, it the edges of contemporary civilization that I think are showing real strain and that are fun to explore, as fictional counterfactuals

Rob McNealy – RobMcNealy.com
so as someone who, you know, thinks about these things, probably way more than I probably should, right. I always say, when I talk to people that are like these, you know, these different groups that are you know, now they’re called glue boys are the three percenters or you know, anti far these people that are, you know, at least on different sides kind of looking toward the same? I don’t know, ultimate conflict, right, I guess is the best way to describe it. Is is something is they say, we’re going to have this conflict and I always say what are you going to do afterward and you At least my reading of history, almost never do you end up with something better. On the other side of that, from a, you know, a governmental standpoint of freedom standpoint, when there’s a revolution, rarely is there more freedoms, it’s usually less. And what would be your take on that? Where do you see things going after a collapse? I don’t even know. I mean, we can talk about some of the ideas of what specifically could cause this. But how do you see us rebuilding and where do you think that ends up going ultimately from like the freedom and, and the governmental standpoint?

Christopher Brown – Failed State
Now? Well, big question. I mean, there’s a lot to cover. There are a lot of different directions you can take that. I mean, I think you’re right about these divergent sides of the the imagined coming conflict. And they, they, they I think they all represent You know, a desire for like real change or desire for something that feels like a more authentically participatory democracy that they feel like they really have a stake in. I think both of those sides are expressing and kind of the sentiment like, they don’t feel like the current system really represents or includes them in any meaningful way. And so they turn to other means of seeking a mode of political expression or engagement and agency over their own futures. In terms of the others is saying in, in science fiction, that it’s easier to imagine the end of the world than a real change in the political system. And I think I think there’s a lot of that you find even in contemporary science fiction and And I think when you get to these failure points, Rob, it’s it’s kind of like being in science fiction is full of these imagined scenarios of imagined revolutions. I mean, Star Wars is kind of all about an imagined revolution, right? But it’s like, well, wait a minute, what happens after the Ewok party? You know, I mean, there’s never any real politics to it. There’s never any real vision of what comes after. There are lots of great works of dystopian fiction. There are masterpieces of post apocalyptic fishing fiction, but the number of like really compelling utopian, science fiction’s is like, you know, I could kind of name on it, I can, you know, listen, you know, and on two hands. And so, my own vision is that I mean, what I talked about and failed state, I’m trying to explore exactly that issue, and It’s kind of bifurcated into two sort of extremes in a way that I have playing off each other. One is a kind of like, it’s almost like the Dallas utopia version of utopia, which is like corporate sovereignty. And people kind of banding together in small quazy corporate groups to kind of have a private property based version of the future. And the other is a more like communitarian. And an ecologically based approach that’s about rewilding and kind of hacking these problems that date back to the agricultural revolution and trying to figure out workarounds to that, that provide a more sustainable future. I don’t know if either of those are really the full answer. But I think you know, I think there are ways in which we need to both the one hand harnessed The power of the contemporary technological tools that we have to aid us in solving our problems, but at the same time, rediscovering authentic structures of community that I think have been a largely lost and kind of post World War Two world. And, and so kind of a mix of like the hyper modern or the cyber modern and the kind of modern primitive defined our new way.

Rob McNealy – RobMcNealy.com
Family structures is interesting, you know, in the United States. And I’m not sure where it went wrong, what why we don’t have for instance, multi generational families for the most part anymore. And that used to be a very important part of, you know, the American structure and many world many places, but the United States we seem to have gotten away from that. And I do think that’s a problem in a lot of respects. And I think, you know, the building blocks of community are Basically family groups first, right? And then they expand out where you get multiple families kind of living together and you create these villages. What do you think the stumbling block is to why we don’t go back to that, why? Why did we leave that multi generational family structure in the United States?

Christopher Brown – Failed State
Well, we’re kind of uprooted from connection to place in a really profound way. And I think the modern economy really accelerates that. And if you look at kind of pre industrial societies, people tended to live their entire lives in close proximity to their dead ancestors. Talking about multi generational families, you would live in the place where you would be connected through place and as the like repository of the trajectory of all of the people in your bloodline that had come before you. Right and And that, by its nature by bringing a lot of people together around this shared place would create a sense of air quotes family that was broader, and that would encompass Yeah, multiple generations of your living blood relatives and even other members of your community. Right. And we’re kind of tied together and a kind of a kinship. You know, now, I mean, you know, I think like my own life, I mean, I grew up in Iowa and went to high school in New Hampshire and went to college in Louisiana and lived in Washington, DC and studied in Europe. And now I live in Texas, I moved here with my you know, family and when we like literally didn’t know anybody, and you just start over and you’re just like, we’re like constantly cycling through social connections and friendships and familial connections in a way and and then you have the added disruption of cyber culture and network culture and of life. Kind of living online versus like living in meatspace, with real engagement in the life of your local community. Which is isn’t an intrinsically bad thing. But I think you need to have elements of both to have kind of a healthy community. So I think that’s the I think that’s the basic problem. And, and I, I feel like I don’t know, I’m sort of optimistic about those things healing themselves over time. But but maybe not until the aftermath of some kind of more intense crisis in which this condition of alienation in which somebody exists at somebody else exists now is all through an experience that makes us appreciate just how good we’ve had it and the lives of those of us who were, you know, born in the latter half of the 20th century or the beginnings of the 21st and then living rather comfortably in ways we don’t even really appreciate

Rob McNealy – RobMcNealy.com
Well, I think, you know, even like today, we’re like, you know, I’m not trying to get political here, but like, how the country came together after, you know, 911. I mean, we really did band together in for at least some period of time, Americans were proud to be Americans and people felt like we were one country for a while. And then you come, you fast forward, you know, 20 years and you look at how now, the country is responding to say, the global pandemic with COVID. And now, you know, we’re at each other’s throats over, you know, this pandemic, and we can’t come together yet. You can look at other countries, you know, like New Zealand, comes to mind where their response to the pandemic was much more unified. They viewed themselves as Kiwis and we’re going to solve this problem. Whereas the United States somehow got politicized early on to a very, really bad level. And it’s interesting, you know, I don’t know how we fix that in this country. Like you say, without some other kind of collapse that makes people feel unified because right now I don’t think we feel unified as one culture anymore in this country.

Christopher Brown – Failed State
Yeah, I mean, there’s a wonderful book by Rebecca Solnit called Paradise Built in Hell, that takes a look at how people conduct themselves in the aftermath of catastrophe. Examples like Katrina, were the kind of the prevailing narrative of kind of Hobbes in free for all usually proves to be the opposite of what really happens, which is that people tend to help each other in those situations. And I think you see plenty of examples of that, coming out of the pandemic, notwithstanding our own kind of partisan sectarian freakout over you know, the people of the mask and the people without the mask. You know, I think you know, I hear you about 911. But I think when you look at, if you look at post 911 reality, I think you also see a kind of failure of the American narrative line in a way that is dissonant from what we expect and kind of fundamentally disappointing and, like, out of line with our own sense of identity, in a way that I think is kind of part of the problem of some of our, our current situations. I mean, the first couple of months after 911 were lives like everybody’s gonna, it’s kind of joined together and it was almost like the beginning of a Western like, we’re going to go get the bad guys and we’re going to bring them to justice. And, you know, we go and the you know, invasion of Afghanistan was kind of globally supported and, and, you know, we had, you know, Special Forces This guy’s drawing giant beards and riding horses through the desert and chasing down the bad guys and all that. And then you get to Tora Bora. And there’s this big build up, like it’s gonna be the final reel of the Western then it doesn’t happen the way it was supposed to happen. And then and then we’re just like, into this endless war and long emergency that like really has not ended, you know, and it’s, you know, 20 years is going on 20 years later, and you have, you know, lawyers can debate about the terms but you have, you know, people being tortured, you know, instead of brought in front of courts and what courts they have are these kind of like crazy, you know, military tribunals that, that they’re like martial law, fake courts. That’s actually what I use is the basis of my domestic version of such courts and rule of capture which is kind of like, you know, courtroom drama meets 1984. The financial crisis. Kinda like made people really doubt the, you know, utopian precepts of neoclassical economics. And, you know, we’ve had all these events from 2000 to 2016 to right now that make people anxious about whether like the electoral system really works. You know, like in 2000, we had an election, it was basically a statistical tie the presidential election, that’s kind of like, you wake up in the morning, you don’t know the President is Wait, this is weird, you know, and all of these things that I think create uncertainty about American identity and American reality in a way that’s unsettling for people. And so I think a lot of the current tomorrow, maybe rooted in that to some respect in the like desire to find, either to recover this identity that’s been lost, or that reality hasn’t kind of fulfilled, or to find a new identity and it’s one that feels like you have a sense of ownership of I don’t know if that makes sense, but that’s kind of my take.

Rob McNealy – RobMcNealy.com
So In failed state, you have these kind of two factions that are trying to kind of self govern in kind of a very different way. How do those two groups coexist in the same area?

Christopher Brown – Failed State
Well, they’re like in different geographical areas, and one is and Dallas. And it’s kind of in doubt, the idea is that, you know, there’s a kind of a multifactor breakdown that that is comprised of, you know, climate failure that starts with causing, you know, failure in certain regions the Tropic of Kansas, that’s, you know, the title of the first book that’s, that’s a place it’s like a pejorative name people come up with for the kind of ecologically and economically exhausted heartland of the US and so you have like internal refugees coming to places like Texas that are a little healthier, but you have, you know, storms, you know, wiping out places like Houston and New Orleans and along the Gulf Coast. And food crisis coming from kind of farm failures, and then a political breakdown and a kind of a general uprising as things tighten up in Washington to try to kind of maintain order is all of these things are causing multiple failure points. And so by the time we get to failed state it’s like a couple of years after there’s been this uprising and the President has been removed from office by a mob and they have any male figure out someone to replace him with a they’ve like outlawed one of the political parties. And so Congress is kind of a shell of itself and, and the judicial system is kind of broken in our heroes, basically, like in state court trying to you know, it’s a rundown state court in Texas trying to settle scores of the past. And so in Dallas is like one of the places that sort of still like ecologically, essentially healthy, you know, they get bad summer storms and so on, but they’re okay and kind of lie to people. With money have gone there and and a New Orleans is basically like it got drowned and they just never even ungrounded never drained it. It’s it’s the swamp that it once was it’s kind of back and that people are living there basically the most radical of the rebels who were almost like what you would call in contemporary parlance like eco terrorists, and they’re letting the city go wild and trying to build some like green experiment from the future from the from the ruins. I mean, and but the problem at the heart of it is that there’s a solution to the food crisis, which is has to do with some GMO seeds for grain crops, and that the Dallas people have a patent on and the people in New Orleans the wacky eco poets, as my friend Paul McCauley would call them. They have gotten some copies of the seeds Now they started hacking. And that’s kind of the deeper heart of the story.

Rob McNealy – RobMcNealy.com
How realistic Do you think that could be in the United States? You see something like this really possible?

Christopher Brown – Failed State
Um, well, I’ll make a couple of comments in that one. With each of the last two books, I wrote them, and I was like, Wow, this is so implausible. Nobody will ever buy this. And then like, stuff starts happening. I mean, like, the 2016 elections, and they kind of the, the, let’s just say that we get, again, without kind of getting into politics, just the feeling of division, and you know, what you saw in places like Charlottesville in the summer of 2017. And then, you know, and then things like Portland or Maine, you know, I thought the idea of New Orleans being an autonomous zone is sort of like pretty far out. And then you have people’s thinking, you know, big chunks of cities in the Pacific Northwest and making actual autonomous The sounds and the strengths and weaknesses of those kinds of little more micro experiments in urban self governance and you know block by block sovereignty are really interesting to watch and then you’ve got the like, stuff in Portland of these, you know, basically unidentified Border Patrol agents on the legal theory that they’re within 100 miles of the ocean aka the border from trolling you know, around federal buildings in Portland and just like showing up in crisis or grabbing grabbing people off the street without due process or an arrest like it’s Argentina 1975 or something. That’s like straight I was like, the plotter will look after I was just like, and so all summer is has been getting in my mentions, like, you know, treat me like I’m Nostradamus or sounds like oh, no, I mean, it’s just, you’re kind of like reporting what you see in a way and putting a funhouse mirror up to right The failed state stuff. I mean, I think both of the elements that I described in those different communities have elements of reality to them. I think corporate sovereignty, I mean, I have a background as a corporate lawyer, I think it’s a very real thing. I think that I mean, you look at it right now look at how investment capital is fleeing government securities, for Apple, Amazon, Microsoft, these big corporate institutions that are now viewed by like, the serious, you know, financial wizards is the one remaining like safe harbor and the storm and be that in precious metals, right? At least for people who don’t believe in crypto, right. Or who are, you know, not in a fiduciary position where they’re at liberty to put the other people’s money into crypto and so on. There’s that aspect and you have an emergent, you know, I think, Ben, what is wrote a great book a couple of years ago about how technological developments around things like drones, and you know, space based weapons, and all of these things are giving individuals access to the means of kind of military production that has never before existed in human history. There’s interesting stuff there, I think. And then on the kind of rewilding side, I mean, I think that’s happening all over the place. I mean, I’ve done it right here at my own house. It’s like taking a lot that was a rundown petroleum Brownfield where there was a pipeline used to run through it and turning it into a restored prairie. And, and all over the Midwest and kind of the Mountain West people are doing these kinds of experiments and trying to bring back something like the conditions that existed before and in the American context. That’s kind of like relatively easy. To do because really the history of the putting our landscape under the plow or into pasture is really relatively short. And most of the plants are still there and pockets and little fire and a little latitude. It’s pretty easy for that to come back. And people like the Land Institute up in Salina, Kansas are doing really interesting experiments with taking the Native American grasses that are like really attuned to recharging the soil with really deep roots and complex kind of micro raizel and rhizomatic structures, and hybridizing those with the major grain crops that are the core of our food system to create like really Hardy, you know, apocalypse re wheats, if you will. So I think there’s a lot of truth to that. There’s a narrative convenience Kind of like, you know, you know, having it like two warring gangs, right? That part maybe is a little bit of a stretch. But that’s the idea is that the, to me those like, two dipoles of like our experimental possibilities as a country do so solve our own problems without relying on government to help us because I really don’t think regardless of your politics, I just don’t think, you know, the system that was invented in the 1780s is necessarily the path to the future. looking, looking to these other examples for a toolkit of real change, I think is a way to build you know, elements of a plausible, plausibly interesting future you might actually want to live in.

Rob McNealy – RobMcNealy.com
So you talk a little bit about this whole corporate kind of, you know, team pride, you know, corporate kind of like a corporatist Kind of genre and we I would view that as like a centralized entity. I’m wondering if there’s a third rail is there can you have elements of both and I mean this from I look at it from a you know cryptocurrency blockchain decentralized technologies descending like a down tenement like a dow and you know it’s funny because you know I put together every year we have a conference here in Salt Lake called off chain that’s a mixture of self reliance crypto and prepping and those and we kind of bring those two kind of topics together and mash them up and in a lot of these conversations like to me I’m I’m a capitalist I like you know, I’m an entrepreneur, but I also have an urban homestead you know, we have big garden you know, we have irrigation like you’d Laffy sama most people would don’t even know what’s in my backyard because it looks like a, you know, full blown farm at my house. But I’m also a big believer in decentralized systems and technologies and I’m wondering, is it Going forward in the United States, are these new thousand decentralized organizations that are starting to come out of the blockchain world? Is that a different rail that could maybe go to the future?

Christopher Brown – Failed State
I mean, yes, I think distributed modes of social and economic and political organization are, are kind of a fundamental part of that future. And in fact, in traffic of Kansas. I mean, when I set out to write that novel, it was kind of all about that about the idea of like, distributed democracy that was like more network based and like distributed direct democracy that broke down the centralized systems of the, you know, the 1780s constitution in favor of something that had a lot in common with the kinds of ideas that you see articulated through things like, you know, experiments with dows. And, and in the context of the pandemic, I mean, corporate life, you know, the organization of entrepreneurship is like, really super distributed now. And we’re saying like, you know, independently of, you know, people building those kinds of systems on the blockchain, you have people who are really proving the capacity of productive activity on a cooperative, collaborative corporatized basis being done kind of in a way that’s totally uncoupled from geography from physical presence. And, and I think that that’s, I think that’s interesting. What I concluded writing traffic of Kansas, through the eyes of my characters who were kind of dealing with very similar problems is we’re dealing with real world is that those kinds of Organizational innovations play a really important role. But you’re not able to really take full advantage of them unless you first take care of the ecological problems that are the kind of the really the root causes and mentioned the injustice is in the inequality in our society.

Rob McNealy – RobMcNealy.com
I think it’s interesting, and you hit on a good point there is that these distributed systems now, you know, allow us to be more geography independent. And, you know, my wife and I had that as a goal, you know, 10 years ago that we wanted to be geography independent for our livelihood, because we like to travel and we like the flexibility and freedom that that gives us. And I’m wondering is if some of this, these distributed technologies that we’re seeing even just like talking a resume like we’re doing right now, allow for people to go Back to small towns in rural America. And, you know, you tend to find that people that tend to do the higher end white collar jobs tend to have the higher education levels. So there’s like, there’s a big disparity, you know, level of education between, you know, urban areas and rural areas. And, and I’m wondering if part of this, you know, if what could come out of COVID, in this pandemic is people one, learning that they can be productive from home or from a different location, and how that might, you know, be part of the seeds that are going to grow into a new society going forward? I personally would rather live in the country myself, and hopefully in a couple of years, you know, we will move on from where we live, but I’m just wondering, is it Where does it you know, if the pandemics and interesting pivot point right now, I see that..

Christopher Brown – Failed State
I think I think that’s a really great and insightful point. Rob is, I think I think there’s some there really is something there because that that you know, small town America again, going back to the book, tropic of Kansas. I mean, that’s partly about just how like, I mean, if you go you drive through the rural Midwest, like where my folks live in southern Iowa, there are a lot of towns all over the heartland and the rust belt that the 21st century is kind of left behind. There have a lot of empty and beautiful but empty buildings and you know, places that feel a lot more Mad Max than anybody would care to really admit and that are really ready for some fresh infusions of people and economic and cultural vitality. And that you know, are still full of good people, those who are hardworking and and i think that the there are many examples have places like that, in the past 20 years that have started to occur. I mean, there’s a kind of a an odd one and Texas which is the town of Marfa, which, you know, basically got taken over by artists by like, high end you know, New York conceptual artists, people like that kind of sculpture and conceptual artist Donald Judd. And that took a town that was historically just a, you know, cattle ranching town, you know, in the, in the kind of way down to the Big Bend region of West Texas. Right before the, you know, the last network connection runs out and turned it into this incredibly vital place where the legacy community and the kind of new inhabitants have created something really interesting. And you’re starting to see that in some allies like little towns closer to Austin, where similar things are happening in the Midwest. You have a lot of people starting to Yeah, I mean, you know, move out to these kind of outer like bedroom communities but which are like small towns and I think that the potential that represents to help people escape from the debt prison of home mortgages, and these things that I think are really like the enemies of freedom that people get really hooked on by our kind of socio economic model. Those are the things that keep people chained to the treadmill and limit people’s life options and if you can go to you know, get people around the idea that like you could go to some small town and buy an old building or a beautiful house and repurpose it for your own needs and, and also in the process also become part of a small enough community where you can kind of really know your neighbors and sort of, on the one hand, be participating through networks. You know, electronic communications networks and some kind of national economic or global economic and cultural life, but also be part of like, a real, vibrant community. I think there’s tremendous possibility there.

Rob McNealy – RobMcNealy.com
Well, I try to be optimistic about the future, as much as I do see, challenging times coming ahead. For a lot of people, I think there’s going to be a lot of opportunity for those that are flexible and adaptable and embrace the changes that are coming, because they are coming. There’s no doubt about that. We’re not living I don’t believe we’re living a sustainable culture in the United States right now in a lot of different levels. So are you working on any other books? what’s the what’s the next book idea you got coming out?

Christopher Brown – Failed State
I think for the next book, I’m gonna be doing a different take on the novel of catastrophe. One that’s not so much about kind of failure political systems, but really engaging with our relationship with nature. A kind of Almost like eco horror, if you will, a kind of horror novel in which the thing that’s scary is our fear of the future, especially our fear of the climate future. We have a kind of rich literature out there. There’s a story type in science fiction called the cozy catastrophe where there’s, you know, a good weather sort of one or a small group of survivors who usually are, you know, kind of affluent, educated people and the world has ended and everybody’s dying off, but there’s a few people that seem to actually be kind of well prepared and having a good time of it. You think of like all those Charleton Heston movies from the 60s and 70s, like the Omega man where it’s, you know, it’s like apocalypse is fantasy, which I don’t think I don’t think those fish really entirely tell the truth. But they’re interesting and they make good story. And I want to take that kind of story type and turn it on its head. So that’s what I’m working on now. So I’m reading a lot of these great novels of catastrophe right now. Especially have like climate catastrophe and from Maven across different cultures and it’s a pretty interesting undertaking. But in the meantime, I’m just launching failed state and trying to connect with readers about that new book which is you know, people can find about on my website Christopher brown calm or in any any any bookstore, online or in real life as it were. You beat me to the

Rob McNealy – RobMcNealy.com
punch, I was gonna ask you, where can people get the book? But I will have all those links available as well as all your socials up at Rob McNealy calm. And Chris Brown, thank you so much for coming on the show today. I’ve really enjoyed talking with you.

Christopher Brown – Failed State
Thanks so much for having me. Rob. It was a really interesting conversation.

Rob McNealy – RobMcNealy.com
I think we’ll do it again. Let me know when the next book comes out. We’ll have you back on.

Christopher Brown – Failed State
All right, right on it was a blast. I hope you have a great weekend. Thank you.

 

Dalton Skach – Gold Gate Transcript

Dalton Skach - Gold Gate

Note: This transcript was automatically generated by artificial intelligence (AI) and therefore typos may be present.

Rob McNealy – RobMcNealy.com
Hey folks Rob McNealy here. And I’m excited to be talking to Dalton scatch of gold Kate. He is a kind of an all around really interesting guy as far as being involved in commercial real estate and financial markets and entrepreneurship. And the kind of guy I’d like to talk to, because he reminds me a lot of me so welcome. So Dalton, how are you today?

Dalton Skach – Gold Gate
I’m doing well. Rob, thanks for having me. Thanks for that nice compliment that you think I make you think of me or even yourself?

Rob McNealy – RobMcNealy.com
It’s all well deserved, man. I you know, I really I talked to a lot of really interesting engineers on here. But you know, my hearts with entrepreneurs, I can relate to entrepreneurs and investors a lot more than I can engineers sometimes. And, and I think we as entrepreneurs look at the world a little differently than a lot of people do. So it’s always good to kind of talk to like minds, so to speak. So I guess before we jump into what you’re working on, can you give my audience a little bit about a little bit about you? What’s your background?

Dalton Skach – Gold Gate
Yeah, so Dalton scatch is a entrepreneur and this is my second business. Gold gay. I’m also a world traveler. I’ve been spending the past few years traveling around the world. And a little bit of background about kind of where I came from, as I grew up over in Reno, Nevada, and went to school in Boulder, Colorado. And then after I graduated, I started my first company six months afterwards, my company ended up being successful. So I went out and I traveled the world while I was working. And then I spent some time this year in Latin America, and then Coronavirus happened, and then I started this new business. Sothat’s kind of a short story.

Rob McNealy – RobMcNealy.com
Very cool. Oh, yeah, I was in Colorado a long time my wife went to University of Colorado for medical school, and I went to Colorado State for my MBA. So it very much is and I was just in Reno actually just a few weeks ago. So get around a little bit myself. Um, so what was your first business?

Dalton Skach – Gold Gate
My first business also called gold gate, what I was doing as I was doing commercial real estate, investment consulting, so I was working with private equity groups and retail and institutional groups around the country, in forcing off market, industrial and multifamily deals that were $10 million, and over. And it was quite a niche. But it was very, very high in demand, I got to know a lot of the biggest players in the game in the country due to it. Because these funds and these equity groups, they always need more deals, because that’s how they make their money. So I was I was doing that.

Rob McNealy – RobMcNealy.com
So you’re pretty young guy. How did you make all those contacts, so shortly after college?

Dalton Skach – Gold Gate
Yeah. So when I was actually in college, the University of Colorado’s got an incredible real estate program where they have these case competitions, and they build a team. And they go all over the country competing with teams in schools, universities, from all over the world, and he’s competitions. And so I was able to build a pretty great network through that for like, for instance, when we would go down to USC to compete, we would meet private equity guys and real estate guys there. But basically, six months after college, I said, Hey, I’m gonna you know what I did in college, which was the kid competitions, I’m going to do this in real life. And so I went out and started doing that I started reaching out to all these people, actually, my first, my first deal that I ever did, is I wrote a handwritten letter, wrote a handwritten letter to the largest industrial re in the entire world, I wrote it to their CFO. And a week went by, I remember sitting in my car and getting the phone call from from San Francisco. And that was actually my first deal. That deal ended up being over $10 million. And that was a great six figure award. So..

Rob McNealy – RobMcNealy.com
So I think you, you hit the nail on the head right there with a little secret. So what prompted you to write a cold call letter by hand?

Dalton Skach – Gold Gate
I think it’s all about being an entrepreneur and trying to get that person’s attention. So what I did is I was able to get all the stationery that was branded towards gold, gay, I wrote out the letter a few times, you know, on my Word document, and then kind of prepared it with a sticker and all that stuff. And pretty much what am I in my head, as I said, Yeah, it’s gonna take a little bit more work. But one of these cards really could turn into a very large payday. And it’s pretty incredible because without writing that one card, I would not be where I am today, so forgive me.

Rob McNealy – RobMcNealy.com
So with the initial version of gold gate, did you how did you exit that?

Dalton Skach – Gold Gate
So at the end of last year, so in 2017, and 2018, those were my best years for gold gate in terms of closings and Because people were at least wanting or entertaining off market offers. And what was going on in 2019, however, is that the economy was so great, it was so amazing that none of the property owners, they didn’t want to sell off market, because they were able to put the property on the market with a broker and get a number that they couldn’t even figure out in their own Excel spreadsheet, they were just getting numbers that were just so large that they would never have even imagined, from 2019 we put in a lot of offers is actually the best year for in terms of putting in offers, but there wasn’t a lot of closings, and towards the end of the year, as probably a lot of brokers might feel after a few years of doing this is that I kind of just felt a little bit underappreciated. And I felt like I was ready to go do that next step. And I’d already been traveling for two years. And I said, You know what, I’m going to go, I’m going to go spend some more time and kind of just go work on myself. And so I ended that the brokerage and the consulting firm at the end of last year, spent the first two months of this year in Nicaragua, then the next few months in Brazil, and then Coronavirus happened, and I saw an opportunity. And now I’m here.

Rob McNealy – RobMcNealy.com
So what is the latest incarnation of Gold Gate. what are you working on now?

Dalton Skach – Gold Gate
So the latest incarnation of Golden Gate. And I know that a lot of entrepreneurs do this as well as they start off with what idea and they pivot and they pivot and they, and they refine their business plan and their model. But what we’ve gotten into, which I think is pretty special is what we’re doing. What we’re focusing on right now at this point in time, is that with the platform that I’ve created, and the technology that we’re using, what I’m going to do is go out and acquire ultra luxury residential real estate throughout the entire unit in the entire United States in the world. And then turn it converted into a digital asset and allow investors from all over the world to acquire fractional ownership in these assets for not only tax benefits and property appreciation, but also personal use.

Rob McNealy – RobMcNealy.com
So that sounds a little bit like a security token offering.

Dalton Skach – Gold Gate
Yes, yes, it can be a security token offering. And it’s not only a security token, it’s also kind of a utility token in a way, because you have that personal use, and so be more of a hybrid. But that is how we are setting it up. And what we’re doing is nothing new, right in terms of people buying fractional ownerships and real estate, that’s always happened in terms of concierge services and property management, that’s always happened in terms of even right now with the security token offerings, being able to trade shares and commercial real estate that’s already been happening as well. But all we’re doing is taking everything and put it together. And there’s no one else in this market that is doing this. It’s kind of funny, because I’ve been looking about doing that myself. So curious here, what, um, what platform Are you building on? Or are you building your own platform, building my own platform, so it’s going to be, as of right now the minimum viable product, we were using a few different third party providers in terms of the investor management and the KYC, AML process and all of that stuff. So we’ll use so I use a few different parties for that, for that minimum viable product to go out and raise money. We’re almost finished with our seed round right now that should be done over the next two weeks. Already have the team in place, all we need is the money to go out and execute and get our first deal done. And but yeah, overall, over the next two months, we’re building out a new gold gate platform, using different API’s and building our own UI UX interface.

Rob McNealy – RobMcNealy.com
But are you building your own blockchain? for this?

Dalton Skach – Gold Gate
Yes, we’ll be using either Well, that’s also one of the things that we’ll be choosing whether we’re using an ERC 20 token or if we’re using an IBM hyper ledger, or there’s a few different kind of block chains that we are exploring right now. And over time, that will continuously improve and be updated similar to an Apple iPhone update, probably every you know, four to six months or maybe even once a year. We just have one of those blockchain updates.

Rob McNealy – RobMcNealy.com
Have you looked at Ravencoin? I have not looked at Raven. Do you know that they have all the Ledger’s and stuff available to make it so you can’t move the tokens to be? Well, you might want to look at Ravencoin. They got a lot of features because they were built specifically for security tokens and they even have the the ability to do the whole back period and everything else on those so built into the protocol.

Dalton Skach – Gold Gate
Wow. I’ll check that out. I’ve heard of Raven coin. I’ve definitely seen in the news. I just haven’t looked into it as a blockchain option as you know that ERC 20 is kind of the the market maker right.

Rob McNealy – RobMcNealy.com
Yeah, but there’s a lot you know, ERC20s don’t have the same functionality and as far as to be compliant with securities because Once you have if you if you give out an ERC 20 token to somebody, they can just move it and put it on an exchange somewhere. And the problem with that is that’s not compliant with federal law.

Dalton Skach – Gold Gate
For that, you can take a letter that one of our investors could take their ERC 20 token and put it and put it up for exchange on a Coinbase account?

Rob McNealy – RobMcNealy.com
No, but you could do it on a DEX, where all you need is the contract Id like either Delta or fork Delta, something like that. You absolutely could. So you got to be careful about that. That’s why I would look at something like Raven coin, that actually is lockable that I you know, I could put you in contact with the the lead developers personal friend of mine. And, and I don’t have, you know, I don’t have any dog in that fight. But I think Raven coin would be a much better option for that. So you got to comply with securities laws.

Dalton Skach – Gold Gate
Well, definitely gonna be complying with securities laws and many things. But yeah, we’d love to have that introduction.

Rob McNealy – RobMcNealy.com
Absolutely. So will you be selling these on a market like tZero? Or how do you plan on being an exclusive secondary marketplace.

Dalton Skach – Gold Gate
So if you want to invest in these properties, and we’ll also be bringing other real assets onto the platform in the future as well, like commercial real estate, our car, stuff like that. So if you really want to invest in these assets, and in case of residential real estate, be able to use them on the journey to be on the Golden Gate platform.

Rob McNealy – RobMcNealy.com
And how are you handling the legal piece of that? As far as sec, I know, you said, you’re gonna be doing you have to do AML KYC. For accredited investors. I’m assuming this is for accredited investors that only?

Dalton Skach – Gold Gate
Absolutely, yes, yes. So for accredited investors are doing some reg d 506. c exemption, in terms of how we’re doing the offering. And then in terms of the back end, in terms of the trading, that’s being managed by a sec registered broker dealer.

Rob McNealy – RobMcNealy.com
So on the assets themselves, so it sounds like you’re doing you’re raising money then to build this essentially a fund, and then you’re going to be selling off securities, from that fund to accredited investors. Is that correct?

Dalton Skach – Gold Gate
No, there’s a lot of fun going on with this at all, each piece of real asset has its own entity. So there’s not a fund going on.

Rob McNealy – RobMcNealy.com
Very cool. And what would you say you’re doing that’s super, super unique compared to like, other normal rates?

Dalton Skach – Gold Gate
Well, what’s different about this with in terms of normal reads, and I guess that’s for the commercial real estate aspect for it, too. But for instance, if you drive by, let’s just say, prologis. If you drive by one of their industrial warehouses, and you own $1,000 worth of prologis, share, you don’t drive by that and go, Oh, I love that’s my property. No, absolutely not. Because you don’t have any pride of ownership. And there’s also different tax benefits when you own properties by themselves in terms of depreciation, and how that’s also all handled. But what you’re able to do on this platform, is you’re in essence, able to create your own reap, right, if you say, hey, I want to have 50,000 shares of this multifamily property in Austin, I want to have 100,000 shares of this Amazon distribution center in Phoenix, I want to have 200,000 shares of this chick fil a in Denver, Colorado, and I want the the ability to sell them whenever I whenever I want. That’s what we’ll be offering. So you’ll be you’ll be able to, in essence, create your own read. But your own, I guess life on this platform, you’ll be able to say, here’s the homes that I own. Here’s the commercial real estate that I own. Here’s the art, here’s the cars, here’s my stocks, here’s my bonds, here’s my crypto. And if at any point in time, you want to liquidate everything and put it into a new business or move to Mexico, you have the ability to do so this is perfect for family offices. I mean, imagine if you were to go into your family office and tell them to liquidate everything. That’d be a pretty weird morning.

Rob McNealy – RobMcNealy.com
Exactly. What you know, I always like to ask this about projects. What do you think the blockchain and cryptocurrency bring to your project that you couldn’t just do this with a database and like normal shares?

Dalton Skach – Gold Gate
Yeah, we’ll bring like what like what what I also marketed as like a digital security offering, all we’re doing is turning it into a digital asset and creating that marketplace that is where people can trade. So I guess creating that liquidity and that trading, which you’re not able to do, for instance, if you buy maybe your shares on crowd street or fundrise. I’m pretty familiar with both those companies, but from what I understand, you can’t you know, you get paper shares, well, you can’t just go out and just, there’s not a marketplace where you can go sell those, but then also be able to have that accountability and transparency piece and also have That confidentiality piece too. And then to also bypass all that legal piece, right? Like, for instance, if you own shares in a commercial real estate property, it’s March 2020. And you want to sell your, your shares in that retail center, well, you’re pretty much sLl, right? There’s, you’re pretty much screwed. You can’t go out and sell these, and if you’re going to do is, it’s gonna be huge last year principals and be a lot of legal costs can take a long time to find somebody. But with this, you’re able to reach people from accredited investors from all around the world, a click of a button.

Rob McNealy – RobMcNealy.com
Did I lose you? No, I can hear you, you kind of popped out there for a second.

Dalton Skach – Gold Gate
Oh, weird, weird, weird. But uh, I think I was just saying that, rather than the traditional way of buying and selling, I get shares and residential or commercial real estate, where it’s very hard to do. So now you have the ability to reach a marketplace that includes thousands of accredited investors all around the world, we’re able to reach them with a click of a button.

Rob McNealy – RobMcNealy.com
So that’s interesting. So how are you guys able to do the AML KYC on the international investors?

Dalton Skach – Gold Gate
That will be we will be working with a KYC AML company like verify invest, or some of those other companies that manage the entire KYC AML process for all of our international investors. And again, when in order to in order to go on to the Golden Gate platform and create an account and everything I mean, these people are investing millions of dollars into homes and commercial real estate, whatever it might be. So they’re gonna go through a pretty thorough KYC AML process, not like one that you would do on a t zero or Coinbase.

Rob McNealy – RobMcNealy.com
So when do you think you guys are going to be like, open to the public? When do you get? When do you guys gonna be live with this?

Dalton Skach – Gold Gate
For the website, and that’s in the websites already ready, I just have a private right now. And so that will be going live over the next two or three weeks. And we’re going to start introducing educational material and all that stuff. And then the new platform will be ready in December of this year. And between October and December, we’ll be meeting with lots of brokers throughout Southern California, but also the United States, trying to get as many properties as we can on this platform. As you can imagine this this kind of fractional interest and the training and all that stuff for residential real estate is very attractive for family offices or athletes or CEOs or celebrities or musicians. So we helped out our first closing our full closing in January of 2021.

Rob McNealy – RobMcNealy.com
Very cool. So Dalton, where can people find out more about Gold Gate?

Dalton Skach – Gold Gate
People can go to www.GoldGate.co .co, not .com. And you can also go on our LinkedIn page, just Gold Gate.GoldGate, gold gate. And also feel free to email me at Dalton@GoldGate.Co. Those are all ways that you can reach me.

Rob McNealy – RobMcNealy.com
Well, Dom I do appreciate your time today and I look forward to seeing when you go live.

Dalton Skach – Gold Gate
Appreciate it. Rob. It’s been a great time talking with you. I look forward to that introduction to Raven coin and I look forward to our next conversation.

Rob McNealy – RobMcNealy.com
Very good. A Rob McNealy here and make sure you check us out on the web. I will have all of Dalton’s information posted at RobMcNealy.com, and this is going to be a good time. I think it’s really interesting what he’s doing here at blockchain. So make sure you check it out, folks, and hit that subscribe button.

 

Haider Rafique – OKCoin Transcript

Haider Rafique - OKCoin

Note: This transcript was automatically generated by artificial intelligence (AI) and therefore typos may be present.

Rob McNealy – RobMcNealy.com
Hey Rob McNealy here. And today we are talking to Hyder Rafiq, he is the global Chief Marketing Officer of oak a coin, which is an American based cryptocurrency exchange. And you don’t hear a lot about American exchanges too often, because they’re just frankly, aren’t many of them. But I wanted to get his take on the crypto world. And so well, let’s welcome to the show. Hi, there. How are you today?

Haider Rafique – OKCoin
I am. Well, thanks for having me, too.

Rob McNealy – RobMcNealy.com
I appreciate you coming on the show today. I think based on some of our earlier talks, you got a lot of really, really good insights. And I wanted to share some of those their audience. Before we kind of jump into that though, can you give us a little bit about your background? How did you get into the crypto space? And how did you join the ok coin team.

Haider Rafique – OKCoin
My experience with crypto started when I left Microsoft, I believe it was 2014. And I was playing around with an e commerce idea that we had with a two engineers from Microsoft, we ran into a payments problem. Most of our customers were coming from China, South Korea, India and those markets. And by allowing Bitcoin as a form of payment, we were able to increase the amount of orders we were able to fulfill on on our e commerce platform. So that was my first exposure to crypto and Bitcoin. I ended up working for a few years in enterprise enterprise Product Marketing, b2b product marketing for a software company, only to find myself in 2017, like most of us and the sense of urgency that hey, I should actually go work in crypto, it’s more exciting than than what I’m doing. I got fortunate I ended up becoming the first head of growth@blockchain.com spend two years they’re building out their growth function, their their marketing function, and also their monetization while I was there, and I was hooked, I was in the rabbit hole deep. When I decided to leave blockchain I was looking for the next gig I wanted to take on was something ideally at an exchange. And I came across Okay, coin long with a few others and Okay, coin was fairly unique in what they were trying to build. And, and the leadership was was, you know, one that I really resonated with. So that’s, that’s how I ended up at Ok, coin. There’s a lot of exciting stuff going on here.

Rob McNealy – RobMcNealy.com
So what would you say differentiates Okay, coin from some of its other competitors, both globally, and you know, domestically?

Haider Rafique – OKCoin
So we are a Global Exchange? A lot, oftentimes, the question I get is, are you guys the US entity of because you’re now headquartered in the US? Are you a US entity? For Okay, coin? Are you similar to say, for example, by Nance us, and we’re not, we’re actually truly a global exchange. And the difference is, we’re actually headquartered in the US, in San Francisco, the way we differentiate ourselves is ultimately at a very macro level. The reality is Rob, we all have a lot of choices. When you think about buying crypto, whether you buy crypto through a wallet product, or you buy through an exchange, there’s just so many brands out there for anyone to choose from, what we try to do differently is we try and ultimately create an experience that is going to be really meaningful for the customers. We’re on that journey. Are we there hundred percent? Not yet. But we’re working really hard towards essentially differentiating on customer experience. So part of that means we’re not going to maliciously charge customers, fees, high fees you’re seeing that happen in the industry. So our fees are very competitive in the industry. We’re about one of the lowest fees exchanges out there. We’re also Fiat based exchange for for retail investors who don’t know that language, it’s essentially the ability for anyone to link their USD account, most say your chase or your Wells Fargo account very easily with the crypto exchange just like you would with any traditional brokerage firm like TD Ameritrade or fidelity, and being able to make a deposit and use that deposit to buy and sell and trade crypto. So in addition to that, we’re constantly adding new high quality projects and assets on our exchange, we’re giving investors and traders exposure to those to those emerging investment opportunities. Generally, when we step back from all of this, I think the ultimate goal for okay coin is to be the best customer service and customer experience. And like I said, we have a we have a long way to go.

Rob McNealy – RobMcNealy.com
So one of the things that you know, I see is has been a barrier to adoption of cryptocurrency. It has been the difficulty Using crypto the on ramps to user experience user interface, what are some of the things that you’re doing with ok coin that maybe helps that out a little bit and simplifies that for more unsophisticated investors or people that are new to cryptocurrency?

Haider Rafique – OKCoin
Yeah, the relationship I would share with you is when you think back 20 years ago, and there weren’t any digital brokerage products, or if there were very few people used it. Typically an investor with some disposable income and savings, and a portfolio would go through a financial adviser that called him up and say, hey, how should I How should I get exposure to the markets? What should I invest in? You know, that kind of thing. And that financial advisor would tell you how to allocate your you know, how to allocate your your savings, essentially, with digital brokerage firms, that sort of paradigm changed a little bit. People want to believe that they can actually take ownership of their investment decisions. So now you’re seeing this over the last two decades, you’re seeing a wave of retail investors, people with disposable income and savings, signing up for these brokerage platforms, and learning about what are bonds? How do I buy stock really easily? How do I get exposure to x company or that company? How do I read earnings reports, so on and so forth. So the user now the customer now is a lot more savvy than the customers a generation or two ago, they’re more familiar with these financial tools than they were previously. crypto is hard. There are a couple of aspects of crypto that have been really challenging for us onboarding, a big wave of customers with disposable income with an appetite for investment exposure. The reasons are like You teased up. Historically, it’s been really hard because of regulations and compliance and what have you to work with banks that that world has changed a little bit. Now you have products like plaid, you can integrate with and it’s really easy for anyone to use their credit card or their bank account acth rather, to fund their account. This is as simple as, say, downloading the Uber app and linking your your bank account to it. So you can start using that app on a regular basis. So the world looks much easier now than it was say back in 2017, when it was really hard to get get to, you know, purchasing crypto somewhere. And even if you did it, the trust factor wasn’t there. So a lot of people kind of shied away from it. So that has become easier. I think the part that really still needs a lot of work is oftentimes what I see having worked at Now, second, crypto company and advisor view in the middle is we are still using nomenclature and language as if we’re speaking to engineers, as if we’re speaking to people who actually understand crypto already have been in it since since its formation. But what we’re not doing a great job of is rewriting the way we we talk to our customers in a way that they understand. And customer you know their way, okay, coin looks at customers is a couple of different ways. We look at customers as folks who have not had any exposure to crypto, they’ve heard about it at family dinners or to a friend or to their financial advisor. And they’re intrigued. They wanted to sign up for a trusted platform, one that they feel secure, their money’s not just going to evaporate, somebody is going to just you know, get off the radar and their money’s gone. And then there’s another segment of people which, which is, you know, essentially people who’ve actually been trading a little bit here and there. They’re not professional traders, they have a full time job. But they like the aspect of trading. They’re a little more savvy. And even for them. This crypto language that we have, is sort of new and intimidating oftentimes. And then you’ve got the third category, which is like folks that are just day traders. This is what they do and live in breed. And what we’re finding is even those folks, that segment of people who haven’t traded crypto previously come into the crypto ecosystems and they’re kind of lost, they have to spend a lot of time educating themselves on you know, what does defy mean? ledger mean, or what is an explorer, all this kind of stuff. So a lot of the things that we’re trying to do at ok coin are not there yet, is fundamentally create a product create an experience that welcomes everyone. Any investor any trader, not just the crypto traders or investors who’ve been in it, and have high conviction and understand some of these things.

Rob McNealy – RobMcNealy.com
Well, I think one of the things you, I think are kind of alluding to is is the ease of use and that abstraction I agree with you, most of us in the crypto industry, we take for granted that our audience understands, you know, all these weird nuanced things about the technology and the language. But I think if we look at how we can abstract that away, I think that’s important. And I think, you know, crypto projects would be best served if they tried to figure out how not to educate people, I think that’s really difficult, right? To try to educate people on a new technology. People, for instance, don’t know how credit card work, you know, they don’t know all the middlemen, the swift technology and all that kind of stuff. We don’t when people don’t know that, they just know their credit card works. And I think that’s one of the things that I see it been missing from the conversation with dealing with the masses, is, you know, not about how we educate. But I think we need to focus on, you know, how do we abstract all that technical stuff that people really don’t need to know, in order to leverage and use the technology? What do you think?

Haider Rafique – OKCoin
I agree with you, I think a lot of the early projects that start that actually are trying to build or have a great utility or a use case, are often creating the project or the product in a way that captures the network that’s really fully sold in and knee deep in this stuff, because it’s easier for them, to onboard into a product, give them feedback, so on and so forth. So you have these like pockets of networks, and and communities that are being built around each of these protocols or assets or projects. And those folks are not your retail investor. So you keep seeing a shift of like these 3040 50 million, you know, crypto users around the world who go from project to project, what I’m not seeing is this like high velocity of increase in adoption. We have a lot of people in the world, not just 3040 50 million people. And I think that that onboarding new customers and new retail is not happening. My fear, oftentimes, maybe fear is not the right word is competitively speaking, we don’t necessarily focus on competition, we focus on customer experience. But as a marketer, I don’t worry about you know, other exchanges or other wallets and what they’re going to do or what have, you might sometimes oftentimes, my worry is that we’re in crypto, we’re doing all the hard work from an engineering standpoint and technology standpoint. And here comes traditional brokerage firms or consumer apps that have the trust of consumers. And they’re going to come in and turn on the knobs and now offer really easy exposure into crypto. And when majority of the market share that’s there to be had for us in crypto. I think that’s I think that’s the biggest risk to crypto industry is traditional finance and FinTech coming in and reaping the benefits of what crypto engineers have been building over the last 10 years or so.

Rob McNealy – RobMcNealy.com
Well, you know, I think crypto is doing it to itself, though, to be honest. And I’ve been in this space for more than three years now, which is in dog years is a long time. Right? And, but as a project, you know, I I’m always looking at what other projects are doing or not doing, as far as you know, doing outreach to other communities outside of the existing crypto community. And at least with us, we’ve tried to focus on with TUSC to not cannibalize. I’m not trying to steal people’s I’m not trying to steal people from Bitcoin, right? I’m not trying to steal a theory of people into our and bring them in our community. That’s not our focus, our focus is bringing in people that aren’t already not in crypto, and and I think one of the reasons people aren’t doing it is hard. Okay, it’s hard to go and do that marketing. It’s hard to go knock on doors and do traditional sales. And I think I think there’s a couple of reasons for that. I think one of the reasons is developers and engineers hate those activities. They don’t typically like to do business development and sales and marketing. And so they don’t, but I think the other thing is that going out and going out and knocking on doors, kind of goes against the ethos of decentralization, because now you have a centralized sales and marketing function. And a lot of people don’t like doing it. It’s hard. And I think, and I do believe long term, the projects that exist now that start focusing on those activities are going to be the long term winners. And I agree with you, I think is is it’s inevitable that traditional finances coming into the space, the question is, who’s going to be left standing after they do? And I think that those are things that people in the crypto world probably really need to think about.

Haider Rafique – OKCoin
Agree, I absolutely agree with you. I think it’s gonna be an interesting next few years. There’s so much opportunity for all of us, I think, to to get out of our comfort zone and, and, you know, see what we’ve not typically been comfortable with doing. I think there’s this sentiment in Silicon Valley or in tech or even in crypto. If you build they will come. Well, the reality with that that notion is, if you build and they will come takes you to a certain point in your product, then you hit a saturation point, take a look at Uber, they were running marketing campaigns, meaning they were creating flyers and shipping them to people at their homes at a certain period of time. And eventually, Uber was doing out of home billboard ads, they did all kinds of marketing to get to becoming a household brand name. All products do. eBay did it. PayPal has done it. I think I think my hope is that crypto is, you know, not just that, okay, coin, but the entire industry gets out of that comfort zone and realizes that if any of us want to become a household brand name, we’re gonna have to look at the playbooks of previous consumer brands who’ve done it really successfully. And what have they done that were reluctant to do? And, you know, how can we learn from them?

Rob McNealy – RobMcNealy.com
Well, it’s interesting, I read an article not too long ago, about that exact thing, like what are the top crypto or sorry, what are the top tech companies do to get their first you know, 10,000 users. And it’s pretty interesting to see all the all the little legwork that those guys had to do. And and you wouldn’t even think that those guys were hustling. But every one of those guys hustle, they’d been even watching what Etsy did and Uber and Airbnb and some of these projects, it’s a really good good little historical research project, if you or anybody in the audience has time to look at it. And we have, because we believe that is going to be important. And you have to have a plan to do that. Because I you know, I am like, I’m not a developer. So I think of things a little differently. I’m more of a marketer, like you. And when you go and look at, you know, I view crypto, even a decentralized crypto projects, they’re still a product, right? They’re still a service and used and they’re not somehow above the laws of marketing or supply and demand. And this is where that like, it’s, it’s interesting, because there’s a lot of engineers in Silicon Valley, they get this right, these tech engineers and these tech companies get that. And it seems like there’s it just hasn’t really translated yet to the crypto projects. And I really don’t know why that is yet. But I still think that there’s a lot of opportunity there for the the crypto products that do do that. And I think in the next probably five years or so, I think the projects that do focus on those things are going to be coming out in front after the hype and, and what I was saying earlier is about crypto is doing it to itself is that we’re getting all excited about you know, I would argue a lot of these defy projects and Ico kind of projects, they take away from the attention from the you know, the more legitimate, you know, projects that are doing the dirty work and focusing on just, you know, wheels down kind of stuff, but and I think we we’re cutting our own legs off, so to speak, because we’re focusing on just getting rich quick in these really obnoxious, you know, ROI of yield farming and things like that. And that takes all the excitement away from like, Oh, you guys are actually building something long term. And I don’t know what to do about that. Like, I can’t control that, of course. But I mean, what do you think? I mean, you’re an exchange, I know, you guys have been listing a lot of defy projects lately as well. And is this something that’s gonna be a permanent thing? Or is this just you know, the fact is, you know, we’re writing other hype cycle.

Haider Rafique – OKCoin
It’s a bit of both, I think, but don’t quote me on this, because I’m not an economist. I think the way I look at it is the other day, I got an ad in, in Gmail, my gmail account, which was from Marcus by Goldman Sachs, and it had this interesting message, which was, you know, get the highest yield on your savings, if you deposit to Marcus. And we we offer a yield higher than national average. So I went on their website, and the yield that they were offering on deposits was point 6%, I believe. And, you know, it occurred to me having been deepened, defied now, especially the last like month or so, going through our listing process. We have crazy numbers and defy reality is again, what does defy even mean to a regular person? Do we even need to say that it’s a defy product when we market this stuff? Or do we actually focus on the utility we focus on, hey, if you put x money in, here’s the API you can earn. And here’s why it’s important. You know, we’re in an economic downturn, there’s that really high unemployment rate, people are depleting their savings. You know, the markets sort of really volatile. So people are looking at other instruments in which they can protect their investment and their savings and in dire times, Have an outlet where they’re able to creatively earn, earn money for the lack of better term. We offer and defy their protocols offering 60% APR even more than that, right? And sure, there’s a volatility in that number. But the reality is a way I think about it as a marketer is, this is not about defy, if we go out there, if and when we launch our own earn product. And we go out there and we position our earn products, as Hey, you know, participated in our defi ecosystem or what have you, we’ve failed because again, we’re going after capturing that, that crypto user, not the folks that actually really, really need this stuff that have taken a hit because of COVID, the last six months or so. So if this is true, and how do we position this stuff? Ultimately, the utility is you have exposure to higher API, a ridiculously higher API than what you would find through traditional banks. Mark is being an example. So why don’t we go out there and not include any defy language and just say, subscribe to this or opt into this or put your deposit into this into this product? And you get between this and this percentage API, which is much higher than what you would find in traditional markets? Now, the obvious question, anybody who’s not in crypto among my network asks is, well, what’s the risk? Because crypto has this, you know, the optics and perception that it’s, it’s a, it’s a tulipmania? You know, it’s the Wild West? You know, there’s no regulation, your money can just completely evaporate. I think that world has changed. I think it is a lot more trusted now. For example, okay, coin, all your USD deposits are FDIC insured. So things are things are happening in terms of winning trust from customers, but ultimately, any yield product, high yield product, even if you look at markets, they have this like long, ugly legal disclaimer at the bottom of their landing page of their website, which says something along the lines of this is a really high risk instrument. Be aware. And that’s how we should educate people, retail investors and crypto users about these crypto instruments. Every every crypto asset has its own risk level, I think the best part we can do is a humanize the language focus on our utility, because people largely speaking outside crypto really don’t care about 99.9% of the stuff we talked about. So if I go and tell my mother and father or my uncle or somebody in my family, hey, if you put $10,000 in this instrument, you will you will have the potential to get exposed to 50% plus KPI. Suddenly I have their attention. Okay, great. Now I’ve done the first part. The second part is I need to warn them hey, by the way, this is a high risk instrument, don’t put all your savings in it be responsible, get the right level of exposure, I never go tell my friends, hey, buy bitcoin and just spend everything you have and just buy bitcoin and just keep buying Bitcoin. I don’t say that I what I tell people in my network is if you have a portfolio and you’re building a portfolio, make sure you have exposure to crypto, and I tell them about the high value assets and the thesis behind them. And then it’s up to you and your risk appetite, how much exposure you want. Is it 5%? Is it 10% maybe you have higher conviction, you want to go a little higher, but I think that’s generally how we should all explain this stuff if we really want to attract the broader market.

Rob McNealy – RobMcNealy.com
I agree and so I you know, personal financial literacy is kind of one of my little you know, pet peeves in the United States and, and when I see people saying I’m all in on crypto that scares me To be honest, because I think that’s how people get really, really wrecked. And, and and definitely I’m very pro crypto. But I also am very pro This is super high risk in a lot of these projects. And and I don’t think a lot of people are good at assessing risk. And I don’t think a lot of projects, kind of point that out. But I think that’s one of the things that I see as a kind of a thread that weaves through the crypto world is that you get a lot of people that are not financially literate, that are investing or mal investing or investing too much in things. And and ultimately, I don’t like seeing people get hurt because of that. And I wish more crypto projects would say what you’re saying is figure out a port, you know, you should have savings outside of crypto In other words, and you should have investments outside of crypto, it’s prudent to do that. And I’m glad to hear that you at least philosophically also agree with that. And I think I think it’s important and I think you’re right. I think we need humanize that language. Um, I know we’re getting close on time but….

Haider Rafique – OKCoin
Banks By the way, are not not doing it any or traditional brokerage firms are also not like the you know, the North Star you want to look at, for example, if you sign up for TD Ameritrade or any of the brokerage firms out there, and you have to see $100,000 deposit in your account and you’re day trading, you’re going in and out of positions. Eventually, very quickly, TD Ameritrade will say, hey, by the way, Rob, you know, we see you have 100,000, how about we give you margin, how about your five for margin, so you can trade more. And I think like, getting it back quickly, and I speak, I say this from experience, there was a time that I had some disposable income. And I started day trading. And it was scary how quickly I started to get that five x 10 x leverage from from one of the brokerage firms that I was trading on. So my point is here, it’s not that crypto needs to take that responsibility. These tools have now become consumerized, you now don’t have the financial advisor or the middleman warning you. Hey, Rob, be careful what you’re doing here. So now you have access to these really complex instruments that typically were, you know, designed for professional traders or investors. Now people like you and I can sign up for it. And within a couple of minutes, we’re off to a start. So I think the responsibilities across the board and finance we all need to do a better job of driving responsible investing behavior.

Rob McNealy – RobMcNealy.com
You know, I couldn’t agree with you more on that either. I really, I’m really glad to hear you say that. So Hyder, where can people find out more about you? And okay, coin?

Haider Rafique – OKCoin
So, my Twitter is HaiderSF, it’s pretty easy to find me. But I think more importantly, for your audience, I would I would want them to come on. OKCoin and give us a try. We do have the lowest fees. Unlike the challenges that other exchanges are facing in crypto, we have really low downtime, most of our downtime is related to announced maintenances. So what will not happen is the market is hot and you’re trying to place a trade. And suddenly you can claim as I say that worlds are locked and your deposits are locked or you know, the fees are like just ridiculous. We’re we’re trying to build a trusted platform we have a lot of work to do. We have a lot of high quality assets to add. We have a lot to improved in terms of our user experience. But I can assure everyone that we pay attention to every customer. We’re looking at everyone’s experience and we’re trying to make it better. So if you’re ultimately looking for an experience that’s trusted, and you’re gonna you’re going to be heard. I think I would give Okay, quite a trial,

Rob McNealy – RobMcNealy.com
either. Thank you so much for coming on the show today. I know you’re busy and I do appreciate your time.

Haider Rafique – OKCoin
Thank you. Thanks for having me. Talk to you soon.

Rob McNealy – RobMcNealy.com
And folks, I’ll have all those links up at Rob McNealy calm and make sure you hit that subscribe button. We got a lot of other great shows coming up and you’re gonna want to stick around and thank you so much and you have a great day.

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Jack Connor – Hospital Flip Transcript

Jack Connor - Hospital Flip

Note: This transcript was automatically generated by artificial intelligence (AI) and therefore typos may be present.

Rob McNealy – RobMcNealy.com
Hey folks, Rob McNealy here. And we have another great show for you today, I am joined by someone who I’ve been connected with on social media for a long time and a big follower of his name is jack Connor. He is the co founder of this interesting company that’s focused on the medical space called hospital flip. He is also a renowned author, a renowned skateboarder. And I think he does everything that most Superman should be able to do. So he’s doing a lot of really fun stuff. And, you know, jack, welcome the show. How are you today?

Jack Connor – Hospital Flip
Thank you for having me on. Rob, great to be on. And great to meet you in person. You know, we’ve talked a lot over Twitter and Social Media had a lot of great, great conversations. So it’s really fun to be here in person.

Rob McNealy – RobMcNealy.com
Well, it’s good. And one of the things I like about you, and and I miss, like, sound like I got some bromance thing going on. But you’re a tech guy, but you also get business. And I think that’s pretty important. Because a lot of times, those two aren’t in the same person, the business guy, and the dev guy, those are usually different guys. And so when you find those kind of qualities in one person, that usually they’re kind of interesting individuals. So

Jack Connor – Hospital Flip
I started out as the business guy before, this is, this is also kind of a rare thing where, you know, I had gotten a master’s in business. And I had lived abroad a bunch, I’d started businesses started one in in China briefly and had done startups here in the states and stuff like that. And I was really, into digital startups, and I came from a family that had a lot of programmers I had been exposed to it. So six or seven years ago, I did a whole, you know, did the boot camp thing, and went full career switch by just basically putting my head down and programming about 14 hours a day for a year. And then ended up completely switching careers. And, you know, getting into that side. But part of it is I knew I wanted to do startups and wanted to have control over the product itself, you know, like, I want to be able to build things. And so it was a little bit I mean, it’s like a little bit risky is like career switching as is but found, I also found like, I really loved it. And I kind of knew that about it ahead of time. That, you know, programming for me, is one of the first jobs I’ve had that I really love it on a minute by minute basis where it’s like, you know, really fun solving problems. But when you talk about that business programming orientation, like, I was not a computer science major studied linguistics, really nerded out in languages. Again, there’s a little bit of relation there in terms of kind of like the skill level. But um, but yeah, and agreed. It’s been really fun talking startups and startups in business with you. You know, you bring really interesting perspective from the Utah startup scene. And you know, I’m in Long Beach, red, sad, LA. And neither one of those is Silicon Valley. So we have kind of that to compare against. But yeah, we had some good conversations on the topic.

Rob McNealy – RobMcNealy.com
Yeah, I think that, you know, and we mentioned this off the air, but I think there’s a big thing about startups that you see that there’s lots of startups out there that have nothing to do with technology, and they generally form differently than a lot of technology startups. So, you know, some I’m originally from the Midwest, and in someone like me, you know, I would just think, oh, if I want to start a business, you go borrow a little bit of money from your data, your uncle, get a small business loan, and then you just kind of bootstrap it and, you know, start up a business. And, and that it’s very, it’s very normal among low tech businesses, let’s say contractors, and construction and retailers and you know, things like that. It’s just a very different mindset of just like, let’s just get to work. Whereas, you know, it’s interesting, especially with TUSC, and getting into the crypto space, I’m closer to like, Silicon Valley kind of software and and that whole culture that I ever been in, have been in my life. And so you know, I’ve been an entrepreneur for a number of yours now, seeing the culture of like, I’ve never done anything in my life before I have an idea and a pitch deck and I’m going to raise millions of dollars is baffling to me.

Jack Connor – Hospital Flip
I don’t know if that actually still exists, unless you’ve already maybe exited a startup. Because when I talk, but maybe this is where I met you know, I I’ve, I’ve had startups never exited. Never, you know, never had some mega success, anything like that. And it’s a, you know, whether it’s accelerators, or VCs or basically anything outside of maybe just a pitch night. They do really like it’s hard to get a seat at the table if you don’t have something that’s in the marketplace, or at least and this is this is for digital stuff. This is not for, you know, medical startups which you know, like a patent can raise, you know, 10s of millions of dollars or, although you’re in the crypto space, so I take back everything I said, Because crypto might actually might actually have that where you’re raising money off speculate, you know, we’re gonna build this blockchain for X, Y and Z. I do not know, confession. I did not know that much about crypto outside of the implementation side, some of the, you know, record sides of it. But uh, yeah, I don’t know. It’s a it’s it’s interesting. So what do you so what’s your experience been like? Building TUSC

Rob McNealy – RobMcNealy.com
building topspin interesting? Well, the thing is, it’s being I’ve never managed like an open source project before. So that’s kind of why you guys

Jack Connor – Hospital Flip
You open source. So that’s an interesting viewpoint into devote to working with developers as well.

Rob McNealy – RobMcNealy.com
Open source decentralized kind of project. Well, it’s interesting from a start, just from a startup perspective, since we have a coin and have had a token traded in markets for two and a half years. From the minute you start, like a crypto project like this, you’re an internationally traded, you know, an international publicly held company, essentially. And so even though I’ve had a lot of startup experience, I’ve been an entrepreneur, a self sufficient entrepreneur for a long time, meaning that I’ve made a living actually, as an entrepreneur for a long time. And that’s baffling to me, because even some of those things, I mean, I’ve worked when I was back in a corporate MBA guy, I worked for some big companies and big international companies. And so I know what that looks like. But you know, I’ve never been in charge as a as a, as an entrepreneur, I’ve never had like in charge of a mega Corporation. It’s been internationally traded and things like that. So that’s one of the different things about it, and then being decentralized. So when we started as a token project I, we had control, even though we set it up as what they call a low profit, LLC. But when we decided to build our own blockchain and move from our token, den to become TUSC, we became a public blockchain. So what happened is the minute we essentially, before we traded, the minute we let the, the outside block producers come in and take over the network from our test net. You know, I, we, I have no control over the project. I mean, I’m a co founder, I have influenced just because I am, the guy has been with it since the beginning. But it’s, it’s interesting, just from the standpoint that I no longer have control. And so you just got to like, beg. You gotta beg people to help out essentially, and, and, and trying to do deals and trying to sort out partnerships, you know, with these weird nuances. It’s interesting, it’s just a very interesting space, and then that’s

Jack Connor – Hospital Flip
fraud and bullshit, it’s, it’s just, it’s just tough space, to be honest, I tend to want to have a lot of control on the digital projects that I build, and especially in recent years, you know, I’ve architected done, you know, majority of the code for a lot of the lot of the things I’ve worked on. And so yeah, that might be that might be tough. I mean, it’s, you know, delegations for the big digital projects, delegations, huge, because you can’t do everything yourself, you have to have people you work with, that you can trust to, you know, build a feature correctly, and not put massive security flaws in it and things like that. Open Source open source be interesting. I mean, I admit, like, I haven’t worked on that many open source projects, I, I feel like when I want to build something, I just kind of like come up with it and just start, you know, Tinker and MVP myself. But it’s a wild, it’s a wild world. Yeah, I’d like to check out your your project a little more. Maybe get involved or something

Rob McNealy – RobMcNealy.com
we could put you to work because we need everything, though a lot of good things are happening. And so it’s so we had to structure so how we kind of tried to deal with some of the things like with a lot of I’m not here to pitch to us, but you know, one of the I always feel if I could give it a plug. Yeah. So is how do you there’s just a lot of challenges, right? How did one I getting shit done is not easy, when you know, not everybody is trying to like hope that the tokens that you paid him with, you know, will be worth something at some point. And a lot of people have a hard time and they’re not patient all the time with that stuff. And so yeah, it’s interesting, I always try to tell the..

Jack Connor – Hospital Flip
I mean, interrupt you, I was just gonna interject that production working and production level and digital. Ther’re in my experience, there’s about a 10 x difference in the amount of time and the amount of code that you need to put in to get something that works well versus something that’s truly production level, you know, doesn’t have even those tail bugs that only happen on you know, Internet Explorer in certain situations or someone hasn’t dated their chrome You know, something like that?

Rob McNealy – RobMcNealy.com
I can I can tell you a chrome problem.

Jack Connor – Hospital Flip
Yeah. And, you know, you’re kind of a, you’re a gun guy. And I think that there’s a, there’s a level of perfectionism you have to have for both of them that actually, you know, sometimes there might be a little bit of overlap, if you want to be really good at it.

Rob McNealy – RobMcNealy.com
I think so I think attention to detail, things need to work and things need to get done the right tool for the right job. So yeah, I see, there’s a lot of it. But I’ve adapted, and the thing is the last two and a half years, like, you know, we were talking earlier about, you know, serial entrepreneurs being add, and then they, you know, jump from one thing before they finished the other. And, and I can tell you, I’ve learned a lot of patience over the last two and a half years working in this environment. I mean, when you’re not technically employing somebody, but you know, how to get stuff done. And then just, it’s actually made me more patient. Mm hmm. Yes, you know. And so, but I’m still, you know, still I always think like an entrepreneur, I’m not going to change that, right. That’s just going to be how I view the world through those lenses. I’m not a developer. So I don’t think of the world through a developer’s eyes either, right. But I think that’s the same thing with like, open store. syncretized Hell is what I tell people like, how do you explain like, open source and decentralized products to like, you know, a gun shop owner, right? They tend a lot of tend to be pretty low tech, depending on where you are.

Jack Connor – Hospital Flip
I feel like that’s something that we have at Rs with, you know, where I can explain our business as a synchronous telemedicine for physical therapy, and you know, people’s eyes glaze over. But then I’m just like, now you just do your exam at home, and it sends it to the doctor, you know, try and keep it as simple and as, I’m a big fan of not using big words, big words when you don’t have to I because for me, it’s like language. You know, like I said, like, I nerd out in language. And I think at the end of the day, language is all about communication. And so when you’re explaining something, it’s like, you got to know who you’re explaining it to, like, if I talk to you versus a developer, versus a salesperson about my business, it’s all going to be a little bit different. But I think the true communicators, someone who knows how to like, break it down for whoever the hell you’re talking to, you know,

Rob McNealy – RobMcNealy.com
I described us like this, I said, or when someone asked, What’s a decentralized project, because outside of crypto, that’s never really happened, right? Well, that’s a new thing, kind of at least a minor time. But I say, Well, think about it somewhere between a co op and a nonprofit. Oh, okay. That makes sense. Mm hmm. And that’s how I explained it. I’m like, that’s what it is. It’s somewhere between a co op and a nonprofit, because, because that’s what really is, if you think about it, right. You know, and there is no company making money. We’re not profit driven from that, you know, way we don’t even. And so that’s kind of how that’s kind of true, you know, and so I think you’re right. Don’t use big words with you don’t need to. I mean….

Jack Connor – Hospital Flip
I don’t know if that works. And I don’t think that works. Actually, they’re probably smarter than that.

Rob McNealy – RobMcNealy.com
Maybe some ladies I don’t know, didn’t work with my wife. She’s smarter than me. So she knew more words than I did. So it was all good. But I would say this, it’s like, you know, it’s like how writers write, you know, like, and it even in science and business, sometimes people write in a way, I’m, you got an MBA, I got an MBA, right. So it’s like, you know, business writing is interesting, too. But I think, you know, you know, I read this statistic A while back, and it made a lot of sense to me, from a business standpoint, you look at some of the most famous classics that are out there, like Ernest Hemingway, at least in modern times, right? The Ernest Hemingway’s of the world. And they say there was an algorithm and some AI thing to analyze the reading level of some of these works. Mm hmm. And they found that the most successful works, including things like Harry Potter, mm hmm, are written in a very low level. So essentially, like, and I don’t know if this was, you know, done deliberately back then. Or maybe there was just a name that they said, I want it for the common person. But what happened is, apparently old man in the sea, by Ernest Hemingway was written at a fourth grade level.

Jack Connor – Hospital Flip
Let me ask you a question. Do you ever read Stephen King?

Rob McNealy – RobMcNealy.com
I’m not long time ago.

Jack Connor – Hospital Flip
Sorry. Sorry to interrupt you there. I was gonna say he’s not my he’s not necessarily my favorite author. But I’ve read a million books by Stephen King, and I love horror. I love horror books. The novel is the best form of horror in my opinion. It’s the scariest if you get a really good one. And he also has got to write at a third grade level, a fourth grade level, but in the best way possible, where it’s like, common vernaculars he’s, he’s one of the reasons he’s so effective like you are, you’re never more immersed in a in a fiction book. than if you’re reading something by Stephen King, shining or Pet Cemetery. He describes everything in the room like everything you know exactly what’s happening where you are. It’s one of the most immersive experiences you could possibly have reading a book. And just like you’re saying about Ernest Hemingway, it’s, it’s very simple language. And I think that’s part of the magic of it, you’re not trying to decipher it, you know what I mean?

Rob McNealy – RobMcNealy.com
I would say, it’s actually, they’re actually a little more scientific than that. And I think it’s scientific, from the standpoint is that as you expand your population size, the average reading ability in the United States and everywhere pretty much goes down. And so is, so if you wrote a book at, say, a 12th grade level, and the bell curve of your populations, reading comprehension, is at the fourth grade level, you just lost what, you know three fourths of your potential market size. And so if you bring down that reading level doesn’t mean that you dumb it down, but you bring the reading that required reading comprehension level down, you expand your market. Dramatic, absolutely. And so the more people that may be in your market, you’re probably more likely to win financial success from what you’re doing.

Jack Connor – Hospital Flip
This is 100% accurate, this is very true. Although I’d say the same effect might be part of the reason that I feel it’s so hard to find a good adult movie these days. Because they’ve kind of when it comes to sort of, especially Hollywood, blockbuster movies, they’ve really, they’ve taken what you just said, especially when you’re taking international markets into account to the extreme, you know, and you sort of end up with like, your Transformers movies that are play in China plan Indonesia play in Brazil, but, you know, kind of the same, just like nonsense, bullshit. And in every language,

Rob McNealy – RobMcNealy.com
well, here’s an interesting thing. You know, it’s like, depending on where you are, I mean, you know, look at the average IQ, that can get into very political discussion about, you know, different, you know, developed people in some developing countries have lower IQs on average. And so, or they have much lower literacy rates, or, you know, numeracy rates and stuff in those places. So if you’re focusing on a global audience, where it may be playing in developing nations, you bring that down, you did just expand your market. Now the problem is, you might have almost, you know, gone too far on the domestic side. Mm hmm. So, and I think that’s where, you know, a lot of things just seem ridiculous. Like, I have a really hard time. I don’t normally watch sitcoms, and but if I watch any kind of like, national, I don’t have cable. So I don’t really so when I’m traveling or something, I flick on the TV. So I haven’t watched this in six months. I know, I haven’t watched this in six months. But if you look at the I think they’ve almost dumbed it down too much in the United States at this point. And I think that gets annoying to people like…

Jack Connor – Hospital Flip
Sonds you’re watching Two and a Half Men.

Rob McNealy – RobMcNealy.com
I you know what, I never watched an episode of that.

Jack Connor – Hospital Flip
And that’s one of those TV shows, not to just harp on the dumbing down of TV because that’s, that’s sort of like, I mean, that’s a bottomless well of stupidity. But Two and a Half Men is one of those show that was, it was like, the most popular is the highest rated show for about 10 years. And I didn’t know a single person that could watch more than five minutes, minutes of it without just like, turning it off and boredom and disgust like, it’s so bad. And it’s just one of those mysteries of you know, you’re talking about cultures and populations and things translating and kind of like making something for the lowest common denominator. And it’s still really, you know, we talked about the difference between California and Utah and all kinds of things like that, but like it’s pretty wild. What that like kind of works for everybody is you know, it really is sometimes at that Honey Boo Boo level of just like the really lowest common you know, the Steven Seagal, police reality show things like

Rob McNealy – RobMcNealy.com
that, you know, well, well, it’s interesting. I mean, even look at what are the most popular sports, right? I think the two most popular sports I think in fall, I think NASCAR is number one, right? The NASCAR is the number one spectator sport, right? That’s at least it was like not that long ago. And then it’s like NFL and then. So if you look at what are the things that are, and again, it goes back to markets, but the things that have the largest economic, you know, successes, right as far in a given industry. And yeah, sometimes I’m like these people vote. It’s like, you know, the average American is average. And that means, you know, half the people so if the average IQ in the United States is around 100 mm. And that’s the average that means half the people you meet our below True story. So they add that’s pretty scary. You know, thinking about that

Jack Connor – Hospital Flip
You ever done jury duty?

Rob McNealy – RobMcNealy.com
I Got, I almost got in I didn’t get picked, though.

Jack Connor – Hospital Flip
I did jury duty in Chicago once that was a wild experience, Cook County, Judge Cook County. And it was definitely like, a diverse, you know, in every way, like income levels, raised blah, blah, live it was that, you know, I forget Where’s in the city of Chicago, but you definitely saw like, and I think a lot of people get this experience where you kind of think that your point of view is like, more or less what most other people are thinking. And then you really get thrust into the situation with, you know, a lot of different people where there’s some stakes to it, and you sort of see like, Oh, that’s not actually the case. You know, what I mean, and I think jury duty is kind of can be a pretty eye opening such situation for a lot of people.

Rob McNealy – RobMcNealy.com
Well, you know, for my day job, I do forensic consulting, in my field. And, and it actually, I don’t talk about it that often on the podcast, because it’s not, I’m more focused on TUSC, and crypto and small business. But in my day job, I’m actually pretty successful as a consultant, and I work all over the country. And it’s very flexible on time. So it gives me the opportunity to basically commit myself full time to TUSC and only have to work part time on that business. And I used to think that the world was a lot more black and white, you know, 567 years ago, and when I started getting into consulting, were in testimony and doing depositions. And I went through interrogation, training and investigation training, because I do accident claims, like I, I mean, I do occasionally death cases, like people get in an accident, you know, and get hurt. And so so I have this part of my job, I have to interview people, even on an insurance type of claim or something like that. I have to interview people on a regular basis. Like, I did one today. No, today to yesterday, you know, so it’s like, it’s so it’s just like when you then get around and you start seeing how people will lie to cover themselves up, people won’t take responsibility, people are not forthright. And I’ve seen it in court numerous times, where people I thought someone I might respect, you know, or someone a friend of mine, and they testified on the other side of a case. And I’m like, they straight up lied. And I’m just like, wow, you know, you know, I You and I both know, this is not what you just said in court. Mm hmm. And, and then dealing with people, like where they you know, I interview somebody, and then I might do an investigation or inspection, gather data and gather evidence and stuff. And I find that the evidence routinely will prove that the person lied. You know, and you’re just like, it’s amazing how often people are deceptive. And I think, and I also that a lot of times, there’s, there’s negligence to go around. And that was the interesting thing about, you know, working in legal environments as part of my job. Like, that’s only a part of what I do. I don’t spend a lot of our time doing just consulting for people, but, but when I do the legal stuff, it’s like it you will see how often everybody, like, everybody’s like, it’s their fault. It’s their fault. But then when you really look at it, it’s all their fault. Mm hmm. as I’ve gotten older, it is I’ve gotten older, I see that more and more situations in society are gray, they’re not clear cut, they’re black and white. There’s there’s fault that goes around everywhere. And that’s where I usually see the the most conflict is where everybody’s got a problem, and they don’t want it to be theirs. And in fact, it’s, it’s it actually makes my job harder. Sometimes when you guys like…

Jack Connor – Hospital Flip
Solutions, would, you know, people would implement them, I think that that’s, that’s something that actually does occur a lot. And it’s, you know, a lot of anger. And this is, of course, like, you know, pretty topical in a couple of ways. But, you know, when there aren’t easy solutions, and there’s a lot of frustration, or like a problem is just building and building and building. Yeah, man, like, I mean, that’s one of the ways like, you know, where rage comes out where like, anger turns into rage is when like, there isn’t an outlet, you know what I mean? Or there isn’t, there isn’t that solution that you can, you know, if I, if I have, you know, if my faucet gets broken, I can figure out how to fix it. But if it’s like something that I just like, literally, you know, there’s what is the fix? So it’s a lot more nebulous, and it’s a lot scarier.

Rob McNealy – RobMcNealy.com
Well, I think it’s even this is what scares me is that when the masses have been convinced that the cause of their problems is not what the actual cause is, and and then people get worked up, and once someone’s been convinced to something, you generally can’t change their minds. Mm hmm. And so they’ll try it. And this is a problem. And this is a problem because if you don’t know the root cause of your problem, you can’t solve the problem.

Jack Connor – Hospital Flip
Yeah, this is very true. And you know, We were talking about this earlier regarding politics, but I come from, I come from a very split household with one parent is very conservative and parent is very, very liberal. And so I get the, quote unquote, pleasure of getting both sides to every issue. You know, a lot of times, like, yelled at me on the phone, like, I can’t believe, you know, whatever. Um, but you know, it’s one of those things where, like, I, and a lot of times, you just don’t have the energy for it. But you know, there’s, and this is I didn’t want to get political. But one example that has come here we got is, and I’m not, I’m not taking any sides on this, but it’s climate change, where one thing I have noticed is that both sides and DM me if you want to talk about this and get more details, but not getting not getting into it, but both sides tend to argue very different points of climate change. in a lot of situations, they’re not even talking about the same thing. And you know, where it’s like, and this is as a person who’s kind of like, I mean, I, you know, for better or for worse, if, you know, you get like both both sides of an issue, and you hear both sides of people, and you see both sides biases and things like that, you know, you kind of and I know that this has happened to you a lot is, you know, you can see where there’s, you know, one we’re both, you know, either left or right or whomever, when they’re picking out straw man, it tends to be pretty obvious. And this, of course, happens a lot. And you know, you and I are on Twitter a lot, which is kind of like the kingdom of the straw man. straw man argument. But yeah, it’s it’s tough man. And it’s, uh, yeah, sorry to bring up climate change. I know, I know that that’s gonna executive get this episode, like censored kicked off Google or something?

Rob McNealy – RobMcNealy.com
No, I think it has to be the opposite side of it. I can say those Dino those damn penguins got to figure their shit out. That’s all I know. of polar bears?

Jack Connor – Hospital Flip
Yeah, I love the polar bears. Yeah, it’s a that’s a complicated and that’s another thing where get not to not to get into but like one of many issues where like, there’s a ton of there’s a ton of things, there’s a ton of big problems that don’t have solutions that we know about. And this is very difficult to deal with. You know,

Rob McNealy – RobMcNealy.com
I think there’s lots of problems that we you know, we have big problems that we could solve, that are more important than some other things. And that sense, it’s really tough. I mean, essentially, everybody’s like, Oh, well, I mean, given the like, the whole riots and stuff lately, stuff, the looting and all that. I mean, it’s really hard. When there’s not a good side, like, you can see, like, I can see the points on everybody’s side, and I can see lots of mistakes made on both sides. And so that doesn’t in my mind, it makes it really hard to pick a side. And the one thing I don’t like about our society, especially the US society, Americans, is that we want it to be left or right, black and white.

Jack Connor – Hospital Flip
By your side, we want it to be like, a sport almost.

Rob McNealy – RobMcNealy.com
against us. You know, you’re not with me, I even had a friend of mine that we got along with really, really well. And, you know, he was basically taking this position, you know, he got really upset and about the whole Black Lives Matter thing. And, and, and he was just like, Well, you know, you know, and I didn’t I wasn’t arguing with them, just say that, you know, this is not the problem you think it is, and and over some different elements. And he got really mad at me. And he’s like, well, if you’re not gonna, you know, support Black Lives Matter, you don’t support me in blah, blah, blah. And I’m like, dude, we’re friends. I have no beef with you. And I’m like I’ve ever had a different big giving you a, you know, we’ve worked together on things professionally, if I ever given you a hard time about anything, you know, and nothing….

Jack Connor – Hospital Flip
It’s very, it’s very volatile right now. And I know that I know that this is not news to you in any sense. But like the story you’re telling me I’ve heard over and over. And it’s and it goes both ways. There’s a lot of there’s that one of the shitty things is like, there’s Black Lives Matter. And, you know, there’s like defending the police and blue Lives Matter and like anti maskers there’s, there’s a half dozen things out there that are causing family breakups to happen right now, like, tensions are high. And I think that part of this is, I mean, one of the you know, if you have, if you have a lot of different hotspots, culturally, part of me that’s like, get to psychological but I think this just in general because of the pandemic, a lot of pent up frustration and a lot of pent up energy. You know what I mean?

Rob McNealy – RobMcNealy.com
I absolutely agree with that. And, and I think it’ll be interesting to see how things Go in the next six months of this curls down to cools down, but I don’t think it’s going to no one’s going to accept the election, no one’s going to accept a cure for COVID. You know, it’s like, we’re at all these impasses. And you know, and now we got this weird culture war, you know, on your opinion, like, riots aren’t riots anymore. And you know, and if you don’t want stuff, your property burned down, you’re like, on the other side, and I’m like, you know, this is just not good for society.

Jack Connor – Hospital Flip
It’s, it’s rough. And this is, you know, doing the, as a skateboarder I got to say, like, you know, I was thrown in a cop car before I was 12 years old, like, I’ve, you know, had cops, like I’ve seen cops break boards, I’ve seen cops, yell at kids, and all kinds of things like that, if you’re skateboarder you’re basically like, half the time, wherever you’re skating, it’s, it’s illegal, and skaters tend to have water runs with cops. So when all these videos start coming out of like, cops, like beating the shit out of old people and stuff, there wasn’t a skateboarder on the planet that was surprised about it like this is. And it’s one of those things where, you know, in my experience, like, seven or eight police officers out of 10, that I’ve had personal experience with, like, in Chicago and LA, are totally cool, greatest people in the world, you know, like, they’ll come like your skateboarding, they get a call, because you’re in some school or something, and they come there’s like, you can’t do that here. You get out, you know, no big deal. But like, every once in a while, and not as every once in a while as you want it to be. Like, there’s somebody who is power tripping like crazy. And, you know, I’ve known people who’ve worked at that, you know, for the police, military, all kinds of stuff like that. And like, they’ll basically tell you the same thing, like they all know, you know, they all know that one or two people at the, at the precinct, or at least I’ve heard people kind of mentioned that. And this is this is one of the things and so like, whichever way and there’s obviously a lot of backlash, bro, we’re in this really insane political time where, you know, is it Trump in the lead polling? Is it Biden like blah, blah, blah, like everything is switching? We’re you know, if somebody listens to this a month out, like everything will have changed completely regarding 1010 catastrophic events will have happened and who knows where the polls will be. But um, yeah, it’s, you know, I say it’s like, on the anti cop thing, like, I don’t know if defunding the cops is the solution, because that I’m from Chicago, and Chicago’s major crime problem. And this seems to be exasperating the crime problem in at least certain areas.

Rob McNealy – RobMcNealy.com
But I don’t know New York, Minneapolis, Seattle and Portland.

Jack Connor – Hospital Flip
Yeah, but this is also but then you’re getting the thing is like, Oh, well, that if they just defunded the cops that hasn’t even kicked in yet? Like, who the fuck knows? You know what I mean, but like, I’m trying to not take sides here.

Rob McNealy – RobMcNealy.com
Well, I think you have to take aside, there’s, I think that at some point that you don’t have to have a side to say that, when a group of people are angry about something that they’re not immediately going to go right and burn things down. I don’t think that’s a racial position. Or it shouldn’t even be a controversial position. But, you know, right now, this is, you know, recorded for posterity, you know, is it is a weird position that…

Jack Connor – Hospital Flip
I think it’s a little bit less, should they do it? Well, I don’t know. I mean, it’s like, what’s the psychological position for that? Because, like, when you say, like, should someone burn something down for this? Yeah. Anyway, I don’t want to I don’t want to get to that continue what you were saying I was gonna read that. I don’t know if it had a..

Rob McNealy – RobMcNealy.com
Don’t go down. I mean, look, I understand. You know, there’s one thing if you literally live under a dictator, that literally is doing all the things that you know, dictators have been accused of, then if you want to fight that system, because that system is unjust. I mean, I true. I have a I have a theory about cops because I grew up white, but I grew up fairly lower middle class fairly poor, did not grow up in a nice neighborhood.

Jack Connor – Hospital Flip
And cops got a reputation to man we heard about you guys in Chicago.

Rob McNealy – RobMcNealy.com
I lived in I lived in like one burb over but the but the reality is, I know growing up white and poor, we got hassled a lot I and I remember this clearly my first I got not pulled over nine times in eight months when I was 16. Because I drove I had like a mullet and I drove like a beat up old Firebird. And and so I’m in a bad neighborhood. So it’s like, yeah, we just screw with you. And I’ve had cops be very disrespectful to me. I would say about a dozen times in my life, you know, and I’m not a troublemaker is just when I was a kid. You got pulled over for being a kid with a mullet driving a piece of crap car. And that was just how it was. And I think that first Some power tripping cops out there. If they’re going to pay, like they’re bullies just like any, you know anybody else, any industry, they have bullies, right? Well, bullies tend to pick on people they think they can get away with it from. Right? I mean, you know, it’s not going to be the the white shoot guy from, you know, Manhattan that you’re gonna shake down and beat the crap up on the sidewalk, you know, on the side of the road because you’re having a bad day, huh? You know, he won, he’s knows his rights, too, he’s probably got the money. He’s probably smarter than you. And he’s probably got the money to hire really good lawyers. And maybe…

Jack Connor – Hospital Flip
You actually make an interesting point to where it’s also an unusual target, you know, like, somebody’s hassling, you know, 16 year old you with the mullet which, by the way, I’m ready to see those pictures of you with the mullet anytime you want. So I’ll be digital, I’d have to scan I’m not doing it. I can wait. I could wait. Don’t worry about it. But whether it’s you whether you know, whoever, you know, there’s a million there’s a million different, like, quote unquote, targets for cops, you know, skateboarder, somebody have the wrong ethnicity, whatever it is, yeah, it’s really easy to become a target for that for that type of police officer. And part of it is because like, if some you know, if a cop pulled over you and you’re 16 with the wallet driving, you’re 77, Thunderbird or whatever it was.

Rob McNealy – RobMcNealy.com
Somebody like Firebird with the big block Pontiac 400 Thank you.

Jack Connor – Hospital Flip
But who would believe you over them? You know, it’s, uh, you’re not just an easy target, you’re a very safe target. Mm

Rob McNealy – RobMcNealy.com
hmm. And so, you know, I have to wonder, based on that, and I spent a lot of time in the inner city as well, I had a business in inner city. And so, you know, I saw how people interacted with cops when I saw cops treated people they were interacting with and, you know, did I think that? I don’t know, I would say that. My opinion, most people’s problems in this world are self induced. You know, you and I’ve talked about this on Twitter, for instance, you know, COVID, didn’t make people broke. They were already broke. And they were fragile. And same thing of businesses. You know, businesses should have an emergency fund, just like individuals. And if they’re not putting money away for an emergency, they’re fragile.

JackConnor-HospitalFlip
Mm hmm.

Rob McNealy – RobMcNealy.com
COVID just exposed that.

Jack Connor – Hospital Flip
Well, this is I mean, the restaurant not to pick on restaurants who are having a really difficult time right now. But this is a really interesting question, which is, if your typical restaurant had, and I think it was something like 12 to 14 days of working capital in the bank, and that was, I mean, that’s like your typical restaurant in the United States. You know, you you invoked fragile, as a very fragile position. I mean, you know, took the, you know, the pandemic obviously caused a lot of closures for more than two weeks, you know, more than a month. But it’s not the only thing in history that could have done it, you know, like, weather events. Who knows an E. coli outbreak, there’s one of a million long, you know, fat tail events that could happen in that. But it does kind of make you think that maybe we are, you know, maybe we’re building the system, that’s just like, based way too much on money coming in to just, you know, just keep things running. Justin times.

Rob McNealy – RobMcNealy.com
Yeah, everything’s Just-in-time.

Jack Connor – Hospital Flip
And it’s funny, because I used to be a big advocate of just in time, because I thought, you know, because it’s like, very clever, and clever is actually what you find out, it’s kind of like one of the, one of the curses of modern life and a lot of situations, but you look at something, you know, like Zara, or h&m, and they have this insane, you know, insanely complex, or not, maybe not complex, but this very well done supply chain. And it’s really amazing. And you’re like, Oh, it’s almost a work of art, you know, it’s so efficient. And then one thing had, like, one monkey wrench gets thrown into the gears. And then we’re in the situation where now I mean, pandemic, you know, COVID was obviously more than a monkey wrench, but, um, you know, and then the whole thing shuts down. Like, that’s the problem of having a finely tuned motor that doesn’t work if anything goes wrong, is that it’s, it’s kind of all or nothing, you know?

Rob McNealy – RobMcNealy.com
And, yeah, and the problem is, when people are ill prepared for change, or for that system to fail. That’s when things get really ugly. Yeah. And, and so, and you’re right, I think, you know, think of all the things that can make things that mean, let’s talk about realistic things. How about an invasion can shut things down for a while. Ruined supply chain..

Jack Connor – Hospital Flip
Like red, red dawn style,

Rob McNealy – RobMcNealy.com
Like Red Dawn, style. Absolutely. And and I think, you know, whatever. If you had like, a hurricane to hurricanes and a major earthquake happened within a month period, you’re gonna have major sections of the country shut down.

Jack Connor – Hospital Flip
For that, I mean, there’s so many different possibilities solar flare that they keep talking about EMP is a Is it an EMP?

Rob McNealy – RobMcNealy.com
Electromagnetic pulse?

Jack Connor – Hospital Flip
Yeah.

Rob McNealy – RobMcNealy.com
Yeah. Well, this is or manmade?

Jack Connor – Hospital Flip
Mm hmm. Um, yeah. I mean, there’s like literally, like, you know, if you go back, go back 500 years, and look at all the events of like this that could have shut down society for more than a couple of days, big volcano going off, you know, or an asteroid hitting or something. And I know that they’re all like long tail. But eventually one of these is gonna happen. And we do see now you’re getting me into something that I do feel passionately about. But we need a motherfucking plan, you know what I mean? Like, otherwise? You know, we’re not, we’ve been around for 12,000 years, we 12,000. Or I think that that one that one site in Turkey is from, I think, 17,000 BC, I think that’s the oldest, you know, evidence of civilization we have, like, this isn’t this is definitely not very long on like an earth scale. It’s very not long in a cosmic space scale. And so I was watching, I don’t watch a lot of TV, but I really loved the show Doctor Who. And I was watching an episode that takes place 250,000 years in the future, and you know, there’s like, mankind is living on a different, you know, star system and stuff like that. And I just remember thinking, like, if we’re gonna get to 250,000 years, like, we need some robustness, as this pandemic, kind of proved, like, we didn’t have a plan for this, like, we kind of thought we had a plan. You know, I think if you had asked every single person in the world in a year ago today, like could could humanity handle an epidemic pretty well, most people would have thought, Yeah, man, we got it. You know, like, I saw that movie where the who swoops in and they isolate, you know, an outbreak, they isolate the region, and, you know, everything, everybody instantly has other perfect PP Nah, there’s a, you know, one person got stabbed by a dirty needle. But, you know, we got that under control. And the reality is, it was just a complete and utter shit show from day one, and it never really got any better.

Rob McNealy – RobMcNealy.com
No, and, and, you know, I think, and I said this before that, you know, if we can’t come together as a country, to create policies and plans to deal with COVID, which is deadly as it is, it could be a lot worse, is that what happens when the next deadly bug comes around or slightly deadly or bug comes around? Or an actual bio weapon gets unleashed in the night seats? What are we going to do while we’re going to argue our masks can comply, and then politicians are just going to do dumb stuff, because they want to get reelected. And, you know, I think we’re host i think that that expose a cultural and that’s the thing watching, for me watching all this COVID stuff is watching how people are reacting to it. And what are they doing because of it? And I am worried now that maybe Bill Gates is right, because we’re so screwed culturally United States, if we had a serious shit show kind of thing come through. Not saying that 185,000 people dead so far isn’t a shitshow. But it could be a lot worse could be millions. I think we’re really weak. And that’s, that’s scares me as a culture that I fear that we can’t survive something really tough.

Jack Connor – Hospital Flip
In this in this sense. I agree. I mean, there’s a lot of ways we’re strong, but this like, we really, we really dropped the ball. Also, I need to get that audio drop of you saying Bill Gates was right. I feel like that’s something. I feel like that’s not something you say every day. So it’s pretty happy about that?

Rob McNealy – RobMcNealy.com
No. And and yeah, and depending half the listeners will say that I’m trying to, you know, kill them with chem trails or something. But, you know, ultimately, you know, I think that, you know, you look at the countries that are dealing with COVID the best and how they did that is they came together with and basically back their governments with the unified plan. And in the ones that did the best had the highest compliance with those plans. And I think the problem is in the United States, you know, it became a political I’m not here to judge, you know, Donald Trump, but there was a lot of denial in the beginning and New York, there was a lot of denial with the Democratic politicians there and democrat governor, and so they all drop the ball in my opinion. And I think the fact that they could that everyone wanted to make it a political issue, and then everybody dug in and then the tribal lines were Set.

Jack Connor – Hospital Flip
And then nothing happened. I mean, we just fought about it. And, you know, the action. I mean, it’s, you know, it’s not like nothing happened, like there was, you know, testing centers, ropin Drive throughs rope and, you know, things, things did go down, but especially at a national level, like I couldn’t even tell you what our federal government did regarding COVID, that was especially useful, you know, what I mean, like, everything I’ve seen, at least, for me is all more or less at a local level, you know, like, the things open here was more or less like Long Beach grants. I mean, I’m sure I’m missing something, because I have not followed the whole trail of money and anything like that, but..

Rob McNealy – RobMcNealy.com
Well, you know, I and I used to be emergency responder, and I can tell you that most This is like, and especially on the biological stuff, most of that is responded in supposed to be responded to by the local governments, that is how it’s supposed to work, you know, public health is done at a county level of pretty much in every county in the country. And then even additionally, sometime at the municipal, you know, municipal level, like and, you know, so Denver, and a lot of us, a lot of cities have still have, you know, government hospitals. And so that’s where disaster response normally comes from, but with the biological and public health is almost always done at the local and state level. And so I don’t necessarily fault the government for that what I felt the government for, is how generally the leadership did not come together behind a unified plan, everybody dug in and made a political issue. And I think that that shows me that people on both sides of the aisle care more about their tribe than they do solving problems. And that’s unfortunate.

Jack Connor – Hospital Flip
I got a question for you, though, as you know, especially coming from your background, do you think that this this whole event, that one potential upside, could be a big uptick in people kind of like taking control of their own lives, like being like, I mean, something that I had the sort of questionable blessing of growing up in Chicago, there’s like, it’s very corrupt in Chicago, and I was there under like the, you know, second Mayor Daley. And they’d be like, photos of him like having dinner with mob bosses and stuff. Like it wasn’t even in going ice fishing with gangsters and you know, things like that, like people laughed about it. And so I never really, for better for worse, I just never really trusted the government, I was always kind of taught like, it was just all corrupt. And it was all kind of blah, blah, blah. And I’m not saying people shouldn’t trust the government, because Chicago is kind of its own special little situation. But I do think the pandemic I mean, even with everything from the gardening and breadmaking to, you know, you were talking about, like liberals buying guns and people moving to the country, do you think there is going to be an uptick in like decentralization, localization, and basically people just saying, Hey, I’m kind of on my own. So let’s figure this thing out,

Rob McNealy – RobMcNealy.com
take care of ourselves. And I think COVID showed us very quickly that the technological infrastructure was there. So I would say, a family member of mine, their office went all remote. Mm hmm. And that was really hard for the company to go all remote. And then after like, six, eight weeks, of the company going remote, because part of the part of the company was really trying to get people back in the office as much as possible. And but then they found that most of the people don’t want to go back. And they just decided to like stop leasing, you know, some class A office space. So I think COVID started that. And I think the fact is, I think more people are gonna homeschool people are seeing that. So I think we’re not done yet. You know, we haven’t finished all these things out lately. But you know, but I think the bigger trigger for the one the gun sales, and I know this, and then it’s the riots and the burnings, and and i think that’s going to scare the hell out of people, and people are going to rethink being in an urban area. Because of that. And I think that that’s a different animal. And we don’t know how it’s gonna play out. So the, the, you know, and I think this is interesting about the current protests, riots, whatever you want to call them, right? It and, you know, they never used to allow riots and protests to go on as long as these have been allowed in various cities. Like we’re like Portland and Seattle, you know, three months solid, right. And, and I think the government, you know, if you go back and look at like 92 in LA, and you go back and look at, you know, the riots in the 70s and late 60s in Detroit. Those things only lasted a couple days. And then they’re over with and people cleaned up and moved on. I think the problem we’re seeing and this is why I say I don’t know where I think this is going to go I think there’s a lot of things seems to be getting worse, not better. But I would say, from a prepping standpoint, Mm hmm. The longer these violent riots because they’re violent riots, these are not protests if I when people are getting killed and and people are burning, you know, whole areas to the ground, that’s no longer protest. And and so I think the longer it’s allowed to go on anything about the cops haven’t been shooting anybody with real bullets. Right. And they certainly did in 92. And they certainly did in the 60s in the 70s. And so, you know, I know in the Detroit riots in 68, one of my friend’s dad’s was in the National Guard at the time, and he quote unquote, said we stacked him up like, cordwood Oh, yeah. Oh, yeah. It’s like, and so if you look at how many people were declared dead during the Detroit riots, apparently that number was like, 10 x or something like a lot of people got shot.

Jack Connor – Hospital Flip
No photos going on social media back then. You know,

Rob McNealy – RobMcNealy.com
There are some photos, though. There are some pretty damning photos, but it was like..

Jack Connor – Hospital Flip
You know, what the immediacy not like, they wouldn’t get out like that. Unless, unless, you know, next day, write a press. Yeah, somebody happened to get it.

Rob McNealy – RobMcNealy.com
Yeah. And so so I think that the fact is governments I mean, there’s no water cannons, right. There’s no alle rats running around.

Jack Connor – Hospital Flip
So it was the last one. There’s no what.

Rob McNealy – RobMcNealy.com
LRAD you know, those audible things that are this, you know, noisy things?

Jack Connor – Hospital Flip
Oh, it’s like the the noise yet to basically get people to disperse by playing but it’s,

Rob McNealy – RobMcNealy.com
But it’s the one that has like an acoustic thing to it that, you know, actually has some pressure, I don’t know, something like that. But you have all these other tonic Ray. Yeah, they have that they all rads. And then, you know, they have that microwave weapon now too. Right. So the question is, so far the government has, and these have gotten wave more violent in many respects, and some of those other riots that, you know, 92 and stuff. But government hasn’t unleashed any of that they haven’t been using lethal force. And think about that, and lots of major cities. And so to me, the longer the people that are angry, and and I’m not saying they shouldn’t be angry, and that there’s not problems and they’re frustrated, and I recognize all that. But what I think, ultimately, the longer you let people throw, let’s just say they’re allowed to throw a tantrum. Mm hmm. Every time something appears to go wrong. Okay, because at this point, you know, we got things that are legitimately Bad Dudes, you know, being stopped by police for legitimately bad crimes. And now even though and people are writing over that, so in my mind, we’ve crossed some threshold about how we deal with something in a rational way. So the thing is, the more these people are allowed to get away with it as a group that and any group would do this right, the more they can, you know, torching, something’s becoming socially protected, and politically, okay, which is absolutely, they’re normalizing it. That’s really dangerous as a society that you have, you know, groups of society normalize burning down buildings, killing people, mobbing people blocking traffic from innocent people. I’m a, I’m a very, very staunch like, let’s talk it out guy.

Jack Connor – Hospital Flip
You know, I really do. And it’s been as like, you know, language nerd. It’s also a big part of it. Like, I love language. I love talking. I love words. I love communicating with people. And I find it very frustrating when there is, you know, we’re discussing kind of seeing multiple sides of, you know, various issues. But yeah, I mean, I, I really, I know, it’s I know, it’s like, idealist bullshit. But like, I really think that like, ideally, there should be, we should talk about every problem, you know what I mean? And this is, and yeah, I get like, the the riots are super complicated. And I actually had an answer for you, when you’re saying like, why is the Why are these less violent? And why are they going on so long? Because this is something I’m thinking about too. And I have a strategic answer. I don’t necessarily have like a political answer. But you know, if the government came in, and we saw those videos of like DHS, grabbing people and putting them in vans and things like that, right government came in now, like full, you know, duerr taste style, and just, you know, full force like military, you know, shooting protesters that posed a threat to people as opposed to like, hitting them with you know, like, whatever the beanbags and the the tear gas and stuff like that, like it would, it would escalate to like insane levels. I mean, I think that not that they not that they wouldn’t and not that they couldn’t have an excuse to but if they if the bodies were stacking up right now, like, it wouldn’t get better, it would get worse like it would be very hard for them to step in and control Portland without Really getting in there, if that makes sense. And I, and I feel like at a local level, you know, I thought I thought it was kind of crazy that these are going on so long to because like, I’d never seen this in the States. I’d seen this in like South America, like Mexico and stuff where there’s, you know, day 187 of riots or you know, of protests in front of the building or whatever, whatever’s going on. But yeah, I’d never heard of this here. You know, I’ve been to a protest that was event at a time and a place and you know, all kinds of stuff like that. And my impression is basically at a local level, like, they’re kind of I mean, you saw the thing with Ted Wheeler, they, they had his whole apartment building staked out, and the cops wouldn’t touch it, you know, they wouldn’t get in there. Um…

Rob McNealy – RobMcNealy.com
And that’s a problem. And, you know, this is, the fact is, I think it’s, I think they’re, I think you’re right, I think that if they came in now, it’s going to be less well received, then, two and a half months ago.

Jack Connor – Hospital Flip
I was cheering it the way you described it, I kind of pictured, like, as if the military came in, like, willing to shoot, you know what I mean?

Rob McNealy – RobMcNealy.com
I think, you know, they could have shut this down. No, no, I think the problem is, since they let it go for so long, people are getting more emboldened. They’re being normalized to violence and destruction now as the response to something they perceived to be an injustice. And I’m not arguing in justices are not and all those need to be discussed on a case by case basis, right? Because the world is not black and white. As much as people want it to be.

Jack Connor – Hospital Flip
A forensic investigator, you’re definitely not allowed to think the world’s black and white. Didn’t know that about you, either. That’s really cool. That’s very impressive.

Rob McNealy – RobMcNealy.com
I’m really nerdy. We’ll talk about it off the air. But yeah, it’s it’s, it’s interesting. And they say, Yeah, I think that’s my concern is like, so, you know, kind of back to the startups. Right? How does this impact startup? So I think, since we don’t even know how bad it’s gonna get. We don’t know if this stuff’s going to calm down. Right. We don’t know if the racial relations will improve. And and what timeframe in I think the elections coming up, and I don’t think anybody’s going to be happy with that. So I’m, at this point, I am expecting more normalized violence to occur, then the question is, and this is what’s been interesting what Donald Trump psychologically and is that after he got elected, right, usually the other side’s a little butthurt. They lost, that’s kind of normal. They never got over it. with Trump ever, in four years. And to me, I think so. This goes back to the psychology thing, too, is I think, the longer you’re your best if you’re raging every day, and I see this, on Twitter, I follow I mean, even a lot of Silicon Valley people just rage at Hollywood people every day, day, day day, for years. Mm hmm. Just raging. And to me, I think the law, I think you can almost have like emotional damage as a society, the longer you’re like that, I think it changes people’s personalities. And And so…

Jack Connor – Hospital Flip
yeah, I’ve seen I have seen politics somewhat ruin people’s lives before because it’sa turned, you know, turn them from, and this is I’ve never done it, I’ve seen this, both sides, honestly. People I was really close to and it just turns like, turn someone into like, a very angry person. And, you know, like, I’m not gonna argue with other people’s, like, emotions, and like the reasons for being angry. But like, that’s a tough way to live man. Like, it’s, it’s hard to just be angry all the time.

Rob McNealy – RobMcNealy.com
Yeah. And I, and I see a lot of that, and, and my concern about our society, right, if we can, again, come back to the table and rationally discuss an issue, like you’re talking about, if we can if the solution is that it’s going to be violence every time and it’s only going to get worse. There will be blowback and and there’s going to be backlash to that.

Jack Connor – Hospital Flip
Well, should we What about what about you and I moderating some right left debates, perhaps maybe get a couple couple of topics and trying to actually have some kind of a rational conversation about it?

Rob McNealy – RobMcNealy.com
Absolutely. And and I think, you know, I think that’s important. And the fact is, it comes back to how do we know our knowledge? And, you know, we could have a whole discussion on knee these issues politically, but I think the fact is, we’re not coming back together. Mm hmm. After the election, we didn’t from the last election. I don’t think that’s going to happen after this election. And so I think so I think, and this gets into your startup, too, right? Like, where do you pick to live? Where do you pick the headquarters for your startup know what hospital you know, flip. It’s like how do you How is that going to impact? I mean, what’s your start? How would How do you think you’re going to view real estate? And where you, you know, put your residence for your startup now? How would you What is your What are your thoughts on that with what you guys are doing?

Jack Connor – Hospital Flip
Well, I mentioned that earlier, I mentioned earlier about the California wealth tax that has been being bandied about, as we’re launching this that’s like, you know, kind of on my head regarding staying in California, but actually do have an interesting answer to that, which is that, you know, our platform like our platform right now, our first product up is for ankle and foot exams, like you literally come, you do an ankle or foot exam from your phone, just videos, very, you know, you’re talking about, like low tech versus high tech. And I actually have your platform as a very low tech digital product. Um, there’s like, almost no data. One of the things is, I, I’m a big privacy guy, because every time a hack comes out, you know, like, Canva, got hacked, oh, Reddit got hacked, or whatever it is, I swear to God, my my name and password always shows up on Have I been poned. And so and I’m one of those, you know, I feel like every time I put a phone number into even some religion, it’s, you know, I put my phone number into spectrum for two, you know, two factor authentication. And three days later, the robo calls start, and you know exactly where that came from. So one of the things is that, you know, we’re, you literally just need an email to get like a physical therapists thing with us. Like, it’s all like, we’re not collecting data, because we don’t want to hold your data unnecessarily. And, and I’m like, I think it’s good to be private, on the where to be located thing, our physical therapists are mostly some form of freelance, some many of that, like, distributed, not in LA, in, you know, San Bernardino County, by Santa Barbara, like places like that. And our platform, because what we do is if you take an exam with us do this, you know, ankle foot exam, if you got a sprain, and we’re gonna be launching more exams, as we go, we’re kind of doing it falling a Lumosity model re kind of come up with one thing at a time and kind of just release them, right? Because we really want to like, you know, as a startup, working on our, you know, our first product here in this space, we’re going to get really, really good. It’s this, like I said, it’s kind of like a low fi product. There’s no fancy technology, there’s no AI yet, although I would like to I’m really excited about the idea of doing things like skin cancer, skin cancer exams, or like eye exams and things like that, which could use AI in the future. Um, but yeah, I mean, part of, part of what I’m stoked about is that one, our physical therapists are really good, I’ve kind of done a session with all of them. And a lot, the the ones we have so far are trying to build an at home, basically, telehealth business. So, uh, you know, people who look, one of them, their clinic got shut down, or it didn’t get, I think it went out of business. I mean, if you think about all the dentists and all the the doctor’s offices that have been closed down, like, since the pandemic started, an insane amount of physical therapy, businesses have closed or, you know, close temporarily. So you got a lot of people trying to start freelance style, um, it’s not exactly an Uber situation, because like, you know, Uber was people who weren’t drivers, whereas all of a sudden, you have a lot of physical therapists that are out of a job, or, you know, some are like working at two or three places, and there’s a kind of a competitor app, but actually, they sort of work in sync with us a little bit called Luna, which is to get in home physical therapy, to do you know, kind of one on one sessions, and that’s blown up since the pandemic, man if you invested in that, that would have been a killer investment. And it’s all because you know, everything’s closed, all the gyms are closed and everything. So, like Luna, this competitor, you you basically say, like add, like a physical therapist, and they come to your house, us you take the exam at the house, and it gets sent to a physical therapists, um, but kind of both of both of them. You know, one of the things I’m stoked about with Luna and especially with us is potentially letting people kind of like work and, like work during the pandemic, as you know, too, and we’re hoping that this will really sync well with our physical therapists, but like, getting customers is hard. And that’s essentially for the physical therapists who are working on our platform. We’re just like shuffling them customers, because all we’re doing is the evaluations. So we get to you know, if somebody signs up with us, every time they they look at one of our evaluations, and then you know, they they have the opportunity you they want To the patient can keep doing sessions with them. Especially if they really, you know, obviously, like you get a physical therapist you like, same thing with like a physical trainer, you know, whoever, like you want to stick with them. And so, in terms of, you know, kind of like locations in the, in the pandemic, like, that’s probably the part I’m most stoked about is that if, you know, pulling this off correctly, would actually be providing work and like at home or, you know, maybe like, we actually one of the things we’re thinking about doing is like renting a space in LA now that real estate is just completely commercial real estate completely plummeted. So we’re kind of like exploring deals where maybe we could build a little, you know, like a little studio kind of thing that if we get some physical, you know, they could come in and film or they could do it from home. And then for us, I mean, there’s one other co founder, you know, he’s kind of like, the, the designer hipster, he’s like a DJ who’s, you know, really, like, helps produce a lot of our visual content. And we’re like, best friends, you know, very close friends going back, we’re in the same skateboard crew kind of old dude skateboard career out here in LA. And then I’m the programmer. So we’re just, you know, we’re just like, building and trying to sell and things like that. But then, you know, also on the, on the topic of like, Where are we? Yeah, the whole thing’s remote. And for the immediate future, like, the only non remote, I’ve done a lot of backing up, I’ve done a lot of remote work as a programmer, so I’m very, it was almost not a transition when the pandemic started, like, I almost felt bad for how little My life changed compared to some other people. Um, but yeah, for the immediate future, like, I would be 10 times more interested in getting commercial real estate, to build a little studio for pts, and a filming studio, where we could do like podcasting and things like that. But like, I can program at home, you know, and a lot of, and I and I think going forward, like in terms of growing out our business, you know, as we expand, if we can, you know, cut down on costs by things like real estate, and having remote people work remotely, like, that’s awesome. And then on our programmers standpoint, you know, a lot of our stack one, if you have a tech stack, you have to find people who program on that sec stack. And we do a lot of streaming and video. So you know, as we as we grow, we’ll be looking for people with some specialties. And, you know, straight up if you can have the whole country or the whole world to look for, for somebody on especially on like a tech programming side, it really makes a difference, you know, opening up your market that way. And if your startup where you don’t necessarily have 180 grand plus an insane amount of stock to give up the way Google or Facebook does, you know, it’s kind of hard to get tough to get top talent, especially in California, especially in LA where everybody, you know, has a tendency to go to Silicon Valley, if they’re, that’s where a lot of the money is your programmer, which is Silicon Valley, you can make 3050 70% more than you can make an LA

Rob McNealy – RobMcNealy.com
Wow. How did you Why did you guys start with the ankles?

Jack Connor – Hospital Flip
Uh, the backing up the It actually started out as a tool for physical therapists. And, you know, for doctors and stuff. I became very interested in aggregator theory, I don’t know, if you read tritech re the Ben Thompson newsletter. Oh, it’s really good. I’ll forward you a couple of really good ones. He gets very deep on aggregator theory. He writes articles and articles on this. And so I because it is unusual, because our, you know, we started out as like, okay, we want to make a tool like I love building streaming and video and things like that. And this was their tech, our technology was actually based off a former startup by hads tech that was, you know, doing translation was doing real time translation for focus groups. That market got killed by the pandemic, and hence the, you know, sort of exploring the space. But, um, excuse me. Sorry, repeat the question one more time.

Rob McNealy – RobMcNealy.com
How did you get started? Or why did you decide to go with ankle…

Jack Connor – Hospital Flip
Oh the ankle, the ankle is because I found it to be a lot harder to be a tool that physical therapists could use. And there was already a lot of those around. When I was looking at this, like, looking into aggregator theory that companies like Google is probably the most famous aggregator in the world, but Uber Lyft. What they do differently is they they Cooper could very easily have taken that tool and then a tool for riders and you know, for like you to be a private driver and, you know, find clients and stuff like that, but what they chose to do was own the customer relationship. And that way, they were able to basically dominate the market, because rather than having like all the suppliers on their side, and then they would, you know, make up and this is actually very traditional medical business model for aggregators is like insurance, you get all the suppliers, like all the different medical people on your, under your umbrella. And then you kind of call the shots with the customers. This is this is sort of traditional business model, whereas like the new COVID, digital aggregator model, is you control the customer relationship. And then you rely on the, the providers to come to you. And so looking at this model sighted, like, Well, how do you make a portal for people to come and get checked out? Like, what’s the like, what’s the play there. And so I was looking at injuries, and everyone talked about skateboarding in terms of this. But, you know, I’ve mentioned a million times to you before, like, essentially, like, because I know, very enmeshed in the skateboard culture and stuff like that, not the industry, because I don’t work in skateboarding, but this was sort of our initial target market, because it just, you know, following the Crossing the Chasm model of finding like a niche market that you can really get embedded in, and, you know, solve the problems for people specific as opposed for people, you know, a general problem, you know, which is a lot, it tends to be for no one you find a very specific problem. And then the skate community, you have the big issue of people being under insured, or a lot of times not having insurance. And what I’ve noticed with anecdotally, with a lot of my friends, a lot of people I know they’ve chronic injuries from things that they really should got checked out, but never got checked out. And one of the, the two biggest ones, to be honest, are ankle and wrist. And what almost always happens is somebody gets, you know, you sprain your ankle, you know, at the skatepark, it’s bad, but you know, you’re just like, you know, 23 year old, maybe doesn’t have insurance definitely would struggle to pay $160 copay to go to, you know, a place in Santa Monica, I’m working a couple jobs, you know, day doesn’t have money for this stuff. And then they just decide to walk it off or like, you know, wrap it up or get an air cast from Walgreens or something. But if it turns out that there’s a microfracture in there, then that can be a permanent injury, and a lot of people get derailed for a long time. Like I personally know, several people that essentially can’t skate anymore because of wrist injury is really common. Same thing, it’s like, you know, a fracture or really bad sprain, that, you know, essentially, people take the walk it off attitude towards. And this is a, you know, this is a real bummer to me, especially when it’s someone you like, like the idea of them having a chronic injury, like, That’s horrible. And especially if it’s something where the reason to not get checked out is things like, it’s a little too expensive. You know, you got to drive to the clinic, like LA, it’s an sounds like a small thing. But when you get to drive an hour each way, you get paid 15 bucks for parking, you’re injured, maybe you’re taking Uber, like, that sucks. And if you’re on the fence about it, it’s really easy to say no to it. So we figured with ours, you know, you build something where you just take it from home, it gets forwarded to a physical therapist. And then, you know, it takes a lot of the friction out of that experience. And then for y ankles, it was between ankles and wrists to start with. We want we want to have an exam that’s gonna be really useful that we can, like, get really, really, really good. We want this to be amazing, spa like experience that you’re doing where it’s, and it’s pretty fun. You know, it’s kind of like halfway towards doing a DUI test. We kind of walk and stand on one foot and things like that. Um, but I am..

Rob McNealy – RobMcNealy.com
I can’t pass those sober.

Jack Connor – Hospital Flip
Well, you got to try. You got to try earthing man, I’ll give you a free one. If you want to get checked out, checked out by physical therapist, get you some exercises get some stretches. Sure,

Rob McNealy – RobMcNealy.com
why not? I would I would love to. So So are you only rolling this out in California? Or is it already nationwide? How does that work?

Jack Connor – Hospital Flip
Um, we’re trying to be very HIPAA conscious right now as HIPAA laws regarding telehealth change fairly aggressively. So we’re being conscientious about doing things in state. So yeah, right now we’re California focused, but that’s going to be you know, kind of rapidly changing it. Were one as you know, if it’s, there’s, if you’re in state, there’s obviously that’s the most over the, you know, across the board way of doing it. But then there’s a lot of states that have these packs and while the pandemic goes on, so we’re going to be kind of navigating these waters. But right now, yeah, right now we’re just focused on getting, basically just getting customers checked out, you know, really improving the flow with our physical therapists, they’ve been really helpful. And that’s, that’s been a lot of fun. It’s kind of improving the product on their side. But you know, we’re in this launch zone. And I know that you know, this well, where we’ve got something that we think that people seem to, like, maybe a little rough around the edges, but you know, we’re polishing aggressively and trying to get it, trying to get really good. But right now, it’s about, you know, really looking for that product market fit by making something that people really like. And so yeah, we’re focused in California, but we’re gonna be I mean, for any of your, especially your listeners who want to who want to want to try this hit us up, you can hit me up on Twitter or anything like that. And let’s talk because we’re, you know, enrolling physical therapists pretty pretty quickly. And on that side, too, because it’s sort of, I know, the gig economy is not like very popular these days. But we essentially become an alternative revenue source for pts. And what we’ve found is, with the ones we’re working with, so far, we’re like, one of several revenue sources they have, you know, so it’s been pretty easy, and they’ve been pretty stoked about it. You know, they like the idea of like, working from home and stuff. So I think we’re signing someone up in Seattle, and we’re getting new york online really quickly.

Rob McNealy – RobMcNealy.com
So how does it work? legally? I mean, is this like, so essentially, if you have the, the, I guess, if you’re doing the PT is in New York, and then the patients in New York, then you’re gonna just you’ll probably be compliant. So I was wondering if there’s much worry about crossing the borders for that.

Jack Connor – Hospital Flip
But yeah, we got a we got to be careful about that. There’s certain situations where it’s legal. There’s heavy implications that the enforcement’s really is, basically they’re gonna turn a blind eye to stuff, but we’re trying to be really careful. And then there’s Yeah, like I said, there’s this like 13 state pact, which is basically a lot of like, mid country, mid country states, where you can do telehealth across the, you know, from like Wyoming to I think Utah’s in it actually, or Arizona. And there’s like no legal issues. And then during the panel, I mean, I keep coming to this during the pandemic, but I think we were discussing earlier, but they they passed something to make, basically every form of telehealth like now HIPAA compliant, and yeah, I’m off to come back and answer this question with with more details. Because right now, we’re just trying to keep it like, I mean, basically, just keep it simple. But as we do this nationwide rollout, it’s going to be we’re gonna we’re gonna have to be, you know, diligent about being careful about this.

Rob McNealy – RobMcNealy.com
And I think that’s probably prudent. course, we’re in very dangerous times. Anyway, right now, so. So how are you funding this? You got a lot of VC money investors?

Jack Connor – Hospital Flip
A lot of these see money? I mean, we don’t have any VC money, if that counts as a lot. No, I’m just kidding. Yeah, it’s all it’s all like, you know, I’m doing all the technology on my side. To be honest, at the beginning of the pandemic, I basically like, marathon a couple of freelance projects to to just get a bunch of money rolling. And so it’s all like, literally all self funded, you know, through my credit card. and stuff we have to do. Yeah, just paid, paid to get a trademark done last night. You know, 600 bucks right there. But yeah, you know, at the moment, and this and I talked to you about this, like, we’re focused on this organic, we’re doing a lot of video content, we’re doing a lot of, you know, trying to do original things to kind of make our presence known and get ourselves out there. I you know, I’ve seen a lot of startups throw a lot of money at ad bucks, you know, Facebook bucks, Instagram dollars, things like that, with uneven results. And so it could work but that’s not really I mean, I could see just like tossing a lot of money down the down the furnace and being really frustrated a couple, you know, a couple months down the line. And we have an you know, we’re kind of fortunate to have a product where success and more importantly, things like breakeven for us at this point, is like a couple of thousand customers per month. It’s not, you know, a couple million or anything like that, like we’re a small tight operation. We’re all like you said, we’re all remote and all the programs I mean, all the design is done in house. And so if for the time being, we’re just kind of keeping it scrappy. The other side is, you know, having been in a million pitch rooms and in a lot of, you know, startup scenarios and things like that. I figured if we, if and when it’s time to do VC money, or you know, something of that nature, when you want to have a reason to do it. So for us, it would be it would be, we have product market fit, we like what we’re doing, uh, you know, maybe we just have the ankle exam, or maybe we have two or three exams on the market. And so maybe we get VC money so that we can do, you know, hire sales team to open up like, a bunch of different regions, or maybe we do VC money to open up in a different country, or maybe we get VC money to do because we find out we do to grow from, you know, kind of a scrappy level to the next level up, but we do need a major digital campaign. So I’m not 100% Sure. And I’m not against a diff taking stuff. But I, I do think it should be for a reason. And I as an unintuitive, as it sounds I’ve seen and worked at startups not founded but worked at startups that got way too much VC money, and it was the reason for their demise. So..

Rob McNealy – RobMcNealy.com
Well, you’re never gonna hear me say no to bootstrapping. I think scrappy is a good thing. So I wish you the best success. This sounds really cool. And I do think that in the future, you know, I think projects like yours, where people are taking the technological angle to solving healthcare related kind of issues, I think that’s going to increase and I think what you’re doing is pretty cool.

Jack Connor – Hospital Flip
Thanks, man, I really appreciate it and you know, it’d be really cool. One is this, this kind of, it’s a healthcare thing that kind of adds to the pie. Because a lot of our initial you know, customers are talking about it’s for things that they basically should get checked out for, but maybe aren’t. And so it’ll be really interesting to see. And I think that you know, on what you’re talking about healthcare changing. Since starting this I have talked to so many people that are involved with in home diagnostics, in home health care, like in five years, you know, being monitored, you know, having your doctor monitoring you while at home and as opposed to coming into the hospital and doing an overnight it’s going to be you know, a reality that we couldn’t even believe right now because I’ve talked to some people working on things in the space and it’s all getting it’s all getting you know, pushed really hard because of the pandemic.

Rob McNealy – RobMcNealy.com
I think it’s gonna be really interesting to watch so yeah, man. So jack, where can people find out more about you and your project.

Jack Connor – Hospital Flip
Project? go to hospital flip COMM And especially if you especially if you need to have ankle foot problems a sprain want to get that checked out you know, mentioned mentioned this podcast and we’ll hook up a discount, but it’s not very expensive though. So maybe you don’t even decide you want it. And then for me, you can find me at Twitter is jack Connor but the K is a five. Rob, if you post this as a you know with a description, maybe you can drop those things in there, but HospitalFlip.com.

Rob McNealy – RobMcNealy.com
Jack, I’ll have all that stuff up at Rob mcnealy.com. And folks, make sure you subscribe, mash that follow button. Check out our library and our YouTube and guys you have a great day.

Episode Links

Audio Interview
Video Interview
Interview Transcript

Lennix Lai – OKEx Exchange Transcript

Lennix Lai - OKEx

Note: This transcript was automatically generated by artificial intelligence (AI) and therefore typos may be present.

Rob McNealy – RobMcNealy.com
Hey folks Rob McNealy here. And today, I’m pretty excited. We are talking to Lennox law. He’s Director of Financial markets of the oke x exchange. And they’re one of the biggest exchanges in the world. And I’m really excited to see what they’re up to. So Lennox, how are you today?

Lennix Lai – OKEx.com
Hi, Rob. Yeah, sure. I’m really appreciated as we on the call. We were happy to see you folks here.

Rob McNealy – RobMcNealy.com
Well, so, um, let’s just jump right in here. And, you know, tell me a little bit about Okay, x hat, and how did you get involved with the crypto exchange world?

Lennix Lai – OKEx.com
Yeah, my other background, the traditional finance background. So basically, I was a quon trader in Hong Kong for around 10 years. So I’m, I’m also kind of like compliance and regulatory guys in Hong Kong. So, like three and a half years ago, that’s where we’d like to join. Okay, yes. Because Because the okay group back in the time, would like to expand the exchange business internationally. back in time we are, we’re actually very big in China already. We overing Bitcoin Exchange servers for local currency, that becoming one of the best one of the biggest crypto exchange in China already, and we would like to expand to the international market. So that’s the reason I joined and starting to build and branded as the name of Okay, yes, the Okay, x name, actually very benchmarking Hong Kong exchange is also called H key x. So we will lie to branding, our exchanging expertise, and also the traditional financial knowledge, so to brand in the world to bring crypto to traditional finance. So that’s how it gets done for Okay, it’s like three and a half years ago.

Rob McNealy – RobMcNealy.com
So what would you say some of the biggest challenges are of running an international exchange right now.

Lennix Lai – OKEx.com
So we are actually one of the earliest player in the field. So back its time we gather a lot of good player like pinole nacer, but Phoenix, Khan base already in place cracking, that’s all the big we’re, we’re accurate, very, very small compared for we’re the biggest player back in the field. So good. So we think we we are facing several challenges. First, we are primarily and very, very Chinese based exchange. So everything in terms of the team in terms of the product, in terms of the gods are all very, very Chinese. So we have to change the entire organization style, the language or the culture within the organization. So if you think about it, every every, every anyone will ever run come in your thing that would actually agree that changing the culture changing how an organization work, can put upside down use agile for football. So bringing the international value and international culture back to your very China exchange is the most complex and complicated task that we ever engage. And also, we we do have a lot of problem on our product. So so we have to SM be a team with the financial known edge cells to completely redesign for every single aspect of all okay, yes, from all across all our products, spot derivative, so everything else from the gods. So I think that might be yourself a big challenge we we come across, but at the same time, we are facing regulatory challenge all around the world. So that we have the assembly of really big compliance teams to tackle regulation everywhere, and apply proper licensing and getting the proper sandbox in crypto. So while we’re talking to regulators, we have splaying of this as well to convince that we are trying to be a good guy. So we have to, I think, in general, we, we are actually building a rocket, but at the same time we are driving a Ferrari. That’s, that’s the whole that’s the summary.

Rob McNealy – RobMcNealy.com
Well, you know, I like Ferrari, so that’s good. But so what would you say the, the biggest challenges from a regulatory standpoint, at least geographically, which countries are the hardest ones to work in?

Lennix Lai – OKEx.com
Yeah, I think back in time, like 2017 2018 our, I think all the Gulf Money can’t like being skeptic or some, some of them are actually quite hostile to, to crypto or to virtual currency. They have no knowledge at all to what’s going on in Bitcoin area. They are actually interest but they think that virtual currency or crypto actually engage a lot in unless it activities, anti money laundering. There’s some of the areas that regulators are mostly very concerned. And at the same time they’re trying to fit in, they’re trying to bring crypto try to explain crypto in a way that the current regulation that they’re already implementing, they’re trying to fit and crypto onto their current regulation, which is very difficult. So. So back in 2017 2018, most of our job is to explain to our regulators, to all those regulated, hey, this is crypto, this is just some kind of digital xx. And this is some kind of a digital asset that we would only allow KYC people to buy or sell, and exactly like a meeting your financial standard that your AML standards, so to explain all those stuff to all kind of regulators. So we starting to see some progress. So we see the US come over digital as a framework. We see some of the government like multiskilled, Malta government to have a virtual currency framework. We see Korea and Japanese government, they do endorse and have some kind of regulation related to cryptocurrency after after the industrial of commitment for around two years or more.

Rob McNealy – RobMcNealy.com
So would you say is there a particular jurisdiction that’s been harder to work with?

Lennix Lai – OKEx.com
I think there’s no jurisdiction that is hard to work with as long as they they are open to talk about are they’re not being hostile companies shut the door. Most of the jurisdiction I would say they would eager, eager to learn were, were very eager to learn from the biggest player in the field. They will like to understand they of course, they will raise a lot of question. But each of us have the jurisdiction of particular friendly, like a Singaporean governments and the Korean government. And even the Maltese government actually quite proactive to want to draft local regulation or specific regulation just for crypto. The other jurisdiction, I think they are very interest, they would like to bring in the crypto, the crypto xx into debt, the security law, or the derivative law, they are interest, but at the same time, they were actually very difficult for them to to actually blend in the current regulations.

Rob McNealy – RobMcNealy.com
How do you see things like the travel rule affecting your operations?

Lennix Lai – OKEx.com
I think the travel rule did actually spend spent a lot of effort for us to completely redesigned out how the how the AML KYC would be implemented into into the current operation. So before that is accurate, we don’t need to, we only need to worry about the global standards update our KYC AML AML. But travel rules actually means that we have to specifically design our checking procedures for all the European biggest customers across the field. I don’t think that is a trouble a big problem to our operation. But it’s just caught one of the costs of the business if you want to play the field with the big boy, we want to be a global platform. That’s just part of the cost of operation. We’re happy to pay for that.

Rob McNealy – RobMcNealy.com
So do you have much of a footprint you would say in the United States at this point?

Lennix Lai – OKEx.com
We don’t have we don’t allow us customers at the moment that is fun. It’s fun time.

Rob McNealy – RobMcNealy.com
Is that something you’re going to do in the future? You think you don’t have to look if it’s proprietary you don’t have to answer but I was just curious is that on your roadmap?

Lennix Lai – OKEx.com
Actually we do have a partner exchange as you belong to a similar group is called okay con. So a ready get up basically orderlies in in us say over the open to the US customers. So it’s really completely different platform is that is basically a partner with Okay, yes. But only that the product that available on Okay, Khan platform is very very different than OKEx, but the technology and the and and the matching engine is using similar technology OKEx.

Rob McNealy – RobMcNealy.com
Actually got the one of their marketing guys is coming on my show on Wednesday. This week.

Lennix Lai – OKEx.com
That’s awesome.

Rob McNealy – RobMcNealy.com
Sure. So yeah, it’s gonna be fun. And so I think, you know, that’s always fascinating to me is, you know, how, you know, the regulatory piece of this looks from the inside. Like I always say, when I’m when you know, I’m kind of mixed, are kind of in a weird position, because I also have a project, but I’m also you know, and you doing a podcast and things. So it’s like, when I see crypto from a very different angle on because on the project side, you see, you see the world very differently in crypto when you’re working inside of it. And, you know, you see all the warts, and, you know, the good and the bad all the way around. But I always like to hear, you know, what does it look like on the exchange side, because, you know, there’s a lot of there’s a lot of, you know, unscrupulous exchanges out there. And I can tell you, having dealt with several of them in the past myself, and so that’s why I’m always interested in you know, the more legitimate exchanges like okay, x in what they’re doing and how they’re handling it. So let’s shift gears a little bit. You know, there’s, there’s a lot of exchanges out there. That seemed to be dodging regulation as part of their business model. I’m not gonna name names. Mm hmm. But there’s some exchanges that you don’t even know where they’re where they’re domiciled.

Lennix Lai – OKEx.com
Mm hmm.

Rob McNealy – RobMcNealy.com
In the row, and so since you don’t know where they’re domiciled, and it’s even interesting, even with smaller exchanges, you know, you go look up try to look up information on the exchange. And on coin market cap, it says they’re based here, and then you go to their website, and it says, their base there and you never know where they’re really located. And, and so that’s always kind of a red flag for me, is, especially at the centralized exchange, because they’re not you don’t know where they are. So there’s supposed to be a centralized routing, that correct, there’s no central location to go. And I’m not saying you should go after people, but, you know, you don’t know who these people are, in some cases or where they are right. And it seems like some of these exchanges are doing it deliberately to avoid complying with you know, international regulations. Again, not going to name names but how do you guys compete with that?

Lennix Lai – OKEx.com
We don’t need to compete wave the wave this some the exchange was smaller Sykes Chang that’s trying to doubt regulations, okay. He exists 1000 people group already so we cannot doubt any regulation, we actually equally comply to the jurisdiction that we allow to surface that we offer our service, we cannot we have to we have 1000 people to be responsible. But for all the other smaller sigh exchange, they have the reason maybe they have the reason to, to try and get up regulation as much as they can, because some of the really small sites chain is kind of like us using hidden ranch approach. They just want to open a small exchange trying to grab the users based on can’t if there’s some trouble there’s as close down and reopen Yeah, in another one using similar technologies. And so, so, so, of course, I would like to invite other users to be aware of the of the of the of the really, really small size exchange, and they you and you basically apparently you cannot find where they are they do they do not have a register overs, or they do not have a property you may you don’t need to know where they base, they don’t show up on time. So, and some exchanges do not have a long history with short history you you have to be be aware of that because talking about central exchange, meaning that all the crypto acts act as an custody with the with the hand of the founding team or the wallet team. So so so actually, you carry a lot a lot of counterparty risk, if you will lie to trade with them. So girl someday, some of this most exchange also do not have a high priority or high high scrutiny of the project that allowed it to list on the exchange. Most of the exchange mode most of the project is required to pay a huge sums of listing fee in order to get listed two bonds of small exchange that grabs exposure users, traders as they can and try to win the way in in a relatively short period of time. The the opening exchange in terms of module cars is relatively easy. But running an exchange operation with proper cyber security Republic compliance team, the proper operation team is take the years of years of efforts. So I would also always to emphasize the SSA only focus on the major exchange in the world because they already there they have the history and and and protecting your crypto execs from millions of millions hacker in the world is not an easy task. It’s a date and day by day commitment. So we we care a lot about our reputation, we care a lot about regulation, we have to comply everywhere in terms of regulation. So it’s I don’t think it’s the as a direct competition with us, compared with the other smaller exchanges.

Rob McNealy – RobMcNealy.com
So right now the the best I can see there’s at least probably, I don’t know, 500 exchanges out there right now floating around. And there seems to be more popping up, you know, every single day. And there also seems to be a lot more decks is kind of in various, you know, stages of development. Oh, how do you see the market for exchanges in the future? Do you think centralized exchanges are going to be you know, the most popular? Do you think dex is going to become more popular? Do you think there’ll be more exchanges out there fewer exchanges, what do you think your? What do you think the future is gonna hold that way?

Lennix Lai – OKEx.com
Yeah, I think I think that the potential with DAX is actually for interesting. So that’s can be the only problem for DAX maybe before or, or for this few years, as people have been talking about. It’s mostly related to the capacity, the technological capacity of whatever chain, whatever blockchain that you’re implementing. So but we see silver these years that we see a lot of breakthrough in the under underlying technologies that have a huge promise on on the TPS, that transactional per seconds, right now, per blots. So those look like that DAGs, if they can manage to handle a search even a certain portion of the trading volume, that’s currently our central exchange is currently trading per day, I think that would give us an interesting use case potential to crypto so that everyone will would able to trade universally. And also everyone collects their own token universally, and that technologic technology is free. It’s open source. So everyone would have the capability to operate to open it DAGs and, and and eventually, everyone can compete with each other with a unique event age or unique appetite to different tokens. So tasks can be can be very interesting. Can I think if somehow, if the technic tech, technical side, transform your technical side becoming really promising, like the TPS reaches certain thresholds, and it’s safe enough to be trustable to two to four traders, and the UI and UX the user experience side of using das has been substantially improved it the tags in terms of trading volume and the size can could be grows exponentially. But while the central exchange, I think that’s still play a very important a crucial role. In in crypto in crypto x RP uses carry a lot of expect in in, in, in in define. So for example, like center central exchanges do are happening to having a lot of products very complex product that’s basically right now cannot cannot able to cannot able to undertake by the tax for now, for example, like derivatives of perpetual swap, we’re talking about millions of millions of borders or of thousand thousand trade per days, but it cannot be executed with our proper high frequency matching engine at this point moment.

Rob McNealy – RobMcNealy.com
So essentially, as the technology improves, and maybe you start getting these non custodial cross, you know, chain indexes, those are probably increase over time, but it’s just not quite there yet, I guess.

Lennix Lai – OKEx.com
Yeah, I think I think it’s getting a lot faster right now, but per lepromatous standing, we’re talking about some of the Kings don’t care about thousand TPS compared to 20 or 30, TPS in one or two years ago. So if it is go around two or three times more, I think we can handle probably on spot exchange ready. And some of the really, and, and I’m talking about some of the DAX, that’s able to manage derivatives, if they are able to manage the liquidation engine of the derivatives under this certain time of DAX under that under, under, there’s a dow around 1000. TPS, that will be so interesting because because read when you’re talking about highly leveraged Chang, when the market is move, you have to execute and use, you have to send your orders in the blink of a second otherwise, otherwise, you’re you’re you you would trigger Casa de liquidation or you create, you create problem of trouble in onto your problem, I’ll do a platform. So that I will be very, very interesting to see that how does handle highly leveraged instruments?

Rob McNealy – RobMcNealy.com
It’ll be interesting. What’s your take on the latest sushi sandwiches and hamburger de fi products that are out there?

Lennix Lai – OKEx.com
Yep. I think that everything is everything is looking to be right now is having having an insanely high yield for some of the token, I think, in general, I think is an other way for distributing token or distributing newly the newly minted token to user this looks exactly like the another way of the Ico or default token in 2017. Or, or or or the ieo. That that changed initial offering is a new or or B. I think it does vary because airdrops so whoever carrier one token you got, you got a candy. We’re called airdrop tokens free token from the token. So similar mechanism. The ultimate purpose is is also a sales of my own newly minted token. But what defy or sushi or hamburger was over sashimi is actually having a mechanism in place, meaning that you have to stick one token first, for for an for an odd token in order from any other token. So that would that actually the sticking components normally is over collateralized, meaning that you have to deposit more token first, in order to in order means or farm, relatively smaller size of token. So the risk compared to other risk compare if the other the other? The other mechanism dies? The other distribution mechanism? I think that would be a lot a bit a bit more healthier to token holder. And I think that define innovation would last for really a long time. I think. I think I agree. The the either inflation rate or youth right now is insane is not sustainable. But the way that how we understand defy the way that people are interesting participant divide a project that allowed it or that we would be perfectly to participant divide would be becoming a really, really hot trend for for upcoming years.

Rob McNealy – RobMcNealy.com
I think the future is going to be very interesting in this space. I you know, I’ve haven’t been shy. I’ve been saying that this, in many respects is Ico 2.0. And, and I just hope that the fallout that comes out of this is good innovation. But it’s gonna crash back down. Right? I think you said it too. It’s not sustainable. What we’re seeing out there, but what I’m hoping is that there’s new innovation in the technology is and I’m hoping that’s what comes out of this. But I’m afraid we’re probably gonna get a lot more regulatory scrutiny from this, as well. So it’ll be interesting to see how it plays out.

Lennix Lai – OKEx.com
Yeah, you’re you were there. You cannot deny that every new maybe new technology or new money or new new way of thinking has to be crazy from chaos. So So these kind of define chaos, this might not be sustainable. The river market corruption. Now were they there Painful correction to their way might be a rousing, regulatories good knee, as you mentioned, but eventually these kind of token distribution method would be an interesting insight for the upcoming define development. So people will actually think about, hey, that’s going to work. But if we want to do it sustainably, I think we have to change it to certain matter. And that will become a healthy growth order for the industry.

Rob McNealy – RobMcNealy.com
Totally agree with that? Um, so where do you see crypto changing in the next couple of years? What What do you think will be the next big innovations coming out and say the next three to five years?

Lennix Lai – OKEx.com
Wow, that’s Sir, I would. I would, personally Personally, I would the very exciting dad’s similar model as in Filecoin, that people can actually share data on chain and tray, that data on chain with the development of fire codes so far gone, it just might be a spark of the entire fire. So, so similar project lifelike on even what your tablet data privacy, your personal data that can be exchangeable, or, or your physical might be stuck with storage, you can just tray, or buy, or sell your own personal storage within every kind of computer that can be traded or transact, via on trading. But these economic and trading mechanism would be an interesting insight or interesting. Hence, for the other data driven industry. So people can sell everything if they carry a data. So fire icon might be the success of the fire gone, hopefully, would become a very interesting development for crypto for the next three and a half, three and five years because right now, if I can sell my idle storage, either virtual drive online, like like a cloud based server, but but so that I can basically sell everything I can using the exact similar mechanism, or similar blockchain or similar token omics to say everything that have data currently available. That’s might be the beauty the very first through adoption for blockchain technologies.

Rob McNealy – RobMcNealy.com
I think that’s very interesting. And, and I think there’s gonna be a lot of interesting use cases. For instance, I really have a library, you know, library credits, I like bat is doing the brave browser, where you actually are developing ecosystems that are using the crypto. And I think that’s important. And even with our TUSC project, that’s what our focus was, is is, you know, getting people to use the coin, not just speculative hype. And and I think that will be the future. And I think the big or most, I think some of the the products that are most likely to be mass adopted in the future are going to be ones that you don’t even think about right now. They’re they’re going to be ones that just slowly start building up an ecosystem where people are using their coin for a practical purpose. And to me, I think that’s really important. So I guess that one last question for you kind of wind down? Do you think there’s too many assets? Do you think that there’ll be more assets in the future, like more blockchains more coins? More tokens? Or do you see that that over time, that’s going to consolidate down?

Lennix Lai – OKEx.com
Um, I would say, bro, for To be frank. So I think the the barrier of cause of issuing or maintaining or creating tokens for hype or speculations, whoo, still be there is this part of the crypto ecosystem, but but when you when you get speculate more people will lose money. And people getting smarter and smarter, when it gets smarter. And when they get the a lot, a bit more cons cautious, a lot a bit more conservative, they were looking to they would be tend to be looking for the true nature, the true adoption of certain tokens. So that money will be will be really concentrating back into 1% of top 1% of the token to actually bring the value of the world that we’re starting to look at fundamental. So I think I would say New token was still there. There were a lot more, getting a lot more sizes. But but growing, so going from yours, right took about one two years or more. I think the capital, or the capital that all catered to crypto access will be mostly or heavily concentrated to a real project eventually.

Rob McNealy – RobMcNealy.com
Yeah, I think so as well. I think what I’ve said I’ve said this in my circle of friends is that the first kryptos does start getting a real adoption even, you know, Nish adoption, not even mass adoption, but just niche adoption are gonna eventually change the way the speculative part of the market values those projects

Lennix Lai – OKEx.com
Right , correct.

Rob McNealy – RobMcNealy.com
How I see it is you have billion dollar market cap projects that don’t have any customers.

Lennix Lai – OKEx.com
Correct. You’re right. You’re actually you absolutely right. I think people right now is like looking for answer right. If you can save a spark to fire and you provide true answer. You got all the you got everything. You get all everything that’s pay people for speculate money. We’re just crunching and advice to your own projects.

Rob McNealy – RobMcNealy.com
Exactly. Linux Ly, where can people get ahold of you? Sorry, how can people find out how can people reach you?

Lennix Lai – OKEx.com
So I think you can basically reach out now traitors and my email is Linux at okay yes.com You can find my traitors that us as well. So you can reach out anytime. I’m happy to answer all the questions.

Rob McNealy – RobMcNealy.com
Thanks. Thank you so much for coming on the show today. I really appreciate your time and I’ve learned a lot.

Lennix Lai – OKEx.com
Thank you, Rob appreciate, talk to you again. Thank you. Thanks so much,

Rob McNealy – RobMcNealy.com
You have a great day.

Episode Links

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Interview Transcript

Joe Roets – Dragonchain Transcript

Joe Roets - Founder and Chief Executive Officer of Dragonchain

Note: This transcript was automatically generated by artificial intelligence (AI) and therefore typos may be present.

Rob McNealy – RobMcNealy.com
Hey folks Rob McNealy here. And today I am super excited. I am talking to Joe Rhodes he is one of the founders of Dragon and coin. They are project been around for some time and i think it’s it’s gonna be a really fun show. So make sure you listen to the whole show because I know you guys out there. He listened for five minutes and then you shut it off. You got to stop doing that stuff, because I can tell that you’re doing that stuff. All right, I really can’t. I’m just guessing. But anyways, Joe, welcome to the show. How are you today, sir?

Joe Roets – Dragonchain.com
Thank you. Thank you very much. I’m great.

Rob McNealy – RobMcNealy.com
So, let’s let’s just jump in here, man. You know, typical questions for a podcast like who is Joe rotes? Tell me about yourself.

Joe Roets – Dragonchain.com
Okay, um, I’m..I’m I grew up in the Midwest. I’m a 25 plus year, software architect. I’m all about software all about open source all about scaling software. And I’ve worked for Lockheed. I’ve worked for Disney. I’ve worked for a lot of interests. firms that that had interesting projects that attracted me. And I came across Bitcoin, one of my guys brought it into the team in 2010. And we looked at it started playing with it, experimenting with it, doing a lot of different interesting things, some stupid, some fun, you know, we’re really early stuff. And this is the only time of namecoin and and you know, way before aetherium and way before much else was out there and ended up jumping around between a few different startups, you know, because I was very interested in the tech and and specifically in its philosophical value, you know, where, why, where it came from, why it was even there. And then ended up at Disney to build what became dragon chain and the Disney released from you know, from in its its own in in enterprise to the world and You know, after that we commercialized.

Rob McNealy – RobMcNealy.com
So tell me about that. So it was initially a Disney projects that got spun out. So did they just open source it? Or was it you know, something that was always kind of that open source community kind of thing? What’s the relationship there now?

Joe Roets – Dragonchain.com
We originally built it, it was very much an experiment is very, you know, very much a bunch of us that were interested in the tech and how we could use it inside of Disney. Um, but I, I knew because we were in, we were working inside a W three, see their blockchain group two, you know, basically explore enterprise applications, and you know, what can be standardized and everything else and we, we ended up realizing that, you know, all these other entities, you know, IBM, Microsoft, a lot of the other groups, some of the banks that were in there, were interested in how we were doing it because what we were describing was stuff that they hadn’t been able to do Because we started from scratch, we didn’t work, Ethereum we did aetherium didn’t exist when we started. We didn’t work Bitcoin or Litecoin, or anything else, we literally started from the beginning. And we had you know, I’m, that’s the reason I even say that I’m primarily a software architect, I’m a software guy. And these things that are patterns in all systems, that’s that’s what I focus on. So I find the, the abstractions inside of a software system that can either make it more flexible, make it more scalable, make it more secure. And I applied that across the board to know basically blockchain and crypto that’s what dragon chain is. And when they realized that we were using devs, that that weren’t blockchain devs they were the devs we already had and that they were able to come in and just build stuff. When we were able to show them that we could actually scale in a radically different way than what they had seen. If I was able to then take some of their questions that we couldn’t answer, because it was all in the inside back to Disney and say, Hey, can we, you know, go through a process and you know, try to source this and you know, they had they already had a process in place. And so it just, it made sense. It made sense for Disney, it made sense for the project, and it made sense for, you know, our working with these other groups. So, that’s how it kind of ended up and yeah, they basically we went through and it’s, it’s now you know, we’ve made it public the process we went through, but it’s, it was a pretty intensive and interesting process that was involved legal involved patents, trademarks and involved the code itself security. And you know, making sure we pulled out proprietary code and things like that, but they just open sourced it and part of that they have a really interesting process that they they have to hand over the code To the person on the outside, and typically, it’s somebody who’s still working at Disney, and who, whose manager or VP sponsor has basically said, Yeah, you can spend every Friday working on this or, you know, something like that. And with with our team, we had a team that was cross a whole bunch of different business units. And so our sponsoring manager didn’t have anything on my time. So we had to, like broker deals between the groups and stuff like that and on Viet on the way out, when they’re going to hand it over to me personally. I asked them, Hey, can you guys approve me to create a foundation so we can, you know, say that will own the IP will own the code? So won’t be Joe, you know, and it worked out. So it’s pretty interesting.

Rob McNealy – RobMcNealy.com
So what did you intend for your blockchain to do was there like a specific problem you’re kind of trying to solve with it?

Joe Roets – Dragonchain.com
Um, enterprise adoption. If that were the Specific because core capabilities of blockchain and cryptocurrency being proof that something happened at a particular point in time, you know, and that being the core of what even Bitcoin actually gives, is used to, you know, in Bitcoin is that is used to prevent double spend to, you know, to provide scarcity, but it’s all related to the fact that that block can with with a measured amount of security, you know, that’s an actual measurable amount of security that’s been applied to whether you trust that these transactions occurred between these two points in time. And so, you know, we basically were looking okay all of the core, abstracted cases capabilities of the technology itself blockchain. We wanted to to leverage in ways that you know, you couldn’t do with time with Bitcoin and you couldn’t do when aetherium came out, which is, you know, any any reasonable business is not going to put customer PII on chain. They’re not going to, you know, there’s HIPAA data, there’s, there’s all types of things they can’t do. And we wanted to make all of that possible. And to make it much, much more straightforward for a real business to use.

Rob McNealy – RobMcNealy.com
So how did it end up working out?

Joe Roets – Dragonchain.com
Um, we did. We also want on the inside. I mean, we did over 20 different use cases. We did a lot of different things. Some of them were, you know, internal hackathons and things like that. But there were a lot of groups that were that were using and building and when we open sourced, we went for a year, fully on just straight open source. You know, managing Community Education trying to, you know, figure out what we needed to work on most. And in that year, we realized that the actual rollout and scaling, you know, it was, it was missing, the ease of use factor, the, you know, the architecture is very simple, it’s easy to code to, but to deploy it on, you know, the model that came out of Disney was a large, very large organization that can run all of the nodes themselves if they wanted to, because they have enough business units that you have the diversity, you know, so that all of the enterprise can see, okay, these are the transactions going through everywhere and all that. But we very much needed it to be a situation that if someone wanted to build something, they didn’t have to worry about the verification network, right? That that it would be provided for them. And so that’s why we commercialized and we, you know, created an entity and, and really decided to, you know, build an network and to build the infrastructure to allow people to deploy more easily.

Rob McNealy – RobMcNealy.com
So you build something from scratch which you know which in blockchain is kind of weird right everybody just kind of forks an existing code base that’s been vetted and beat up a little bit. How would you say dragon chain is different than say the base the code base for a theory amor, the code base for you know, Bitcoin or some of the, you know, graphene based block chains.

Joe Roets – Dragonchain.com
Um, it is it’s an interesting thing because like all of the pho policy would have for saying, Okay, I’m going to create my own are not necessarily clickable because we are definitely not coding our own encryption or coding or you know, any any of the cryptography is all, you know, used for outside. So I wouldn’t want to say that it is more than anything a structural peace, where we, for one thing, there are a lot of different things about it. That it is primarily just software and that at every level of our consensus process, we are actually working with independent nodes where every node has its own blockchain. And the consensus is not it’s a hybrid network. So the consensus is not universal. That is, I own my own business I haven’t I have a business node that I’m either ledgering transactions on or I’m running smart contracts on and I can keep that you know, by default is fully private on and the only thing that moves up through consensus is the the protocol elements, which are the you know, basically the wrappers. So my payload itself is fully controlled by me I can expose it publicly if I want, but I’m for a regular business. It’s very fitting all the the same models apply that it’s as if I’m working on a on a server, and I’m storing my stuff there. I’m using it but the difference is that the wrappers around what I’m doing are all going through a six six separate dragon that nodes and then a combined security of aetherium and Bitcoin and aetherium Classic and whatever else we’re entertaining with the time on, which is for the proof so now I can basically show vendor or you know, later the courts if I’m getting sued, I can show somebody, this is exactly what happened and you don’t even have to trust me, you can actually you can actually do the math all the way up to Bitcoin and aetherium. And, and, you know, we we really, from the early days, knew that we wanted to leverage the tremendous hash power of Bitcoin and at any other network, but also the utility that is, um, you know, especially early on when we knew that You know, the ability to entertain with stores or with saya coin or any, you know, any of any of the other important utility networks that we could add as well as traditional that, you know, we’ve done plenty of integrations with RESTful API, very traditional systems that because of our model, it’s remarkably easy. And they are our time to market or most of the projects we’ve been on are really short, really fast build outs. So it’s pretty cool. And it also help with scaling. Because then the fact that every node has its own chain means they can all be independently scaled. They can they can run in with full cloud environments. And Gosh, yeah, is this a really long answer, um, the good the other. The other side of that is when you get into that, one of the other very unique pieces that most people Don’t don’t get yet is our actual scaling is based not on hardware because we’re, we’re cloud based. So we already knew that we could have ended up if we’re trying to incentivize people to run nodes that we have diversity there, that you could have a race to the bottom. Because, gosh, I’m just going to deploy it to Amazon, I’m going to throw up enough nodes to handle 80% of network and undercut everybody on my, my, what I’m going to accept you charge for fees, right? And in order to prevent that, we flipped the scarcity on its head and said, okay, instead of saying hardware scarcity, where you know, most blockchains out there, if you have more transactions coming through, there’s hopefully more fees usually, and therefore more people will procure hardware and put it in place and build a network, right. And you hope that it’s sustained traffic, so that If the person doesn’t know, the fees continue and the traffic continues. And the issue is the time between the traffic start, and when people can actually deploy hardware, which, you know, if it’s in cloud, it can be pretty quick. But, um, it’s not immediate, right? And in particularly, you know, if it’s not something that’s easily done in cloud because of your requiring hash power or anything else, it’s even more difficult. So, what we did is we took what was called DDS s, which was a slumber score, which is a time based component to our token. So if you hold a one dragon for one day, you get one time. If you hold a million dragons for one day, you get 1 million time for that day. And we take that time and that’s the scarcity. So all the nodes in the network competing based upon how long they’ve held how many dragons And they get more of the cut but on the other side the the the radically in at least to me interesting part for for adoption of scalability is the fact that the more time I have as a business that I want to apply to my node, the lower my fees are right and so it but it’s a deterministic fixed price fee for every transaction I sent through and the token price inside the system adjusts every month based upon market but to the general business user, they don’t really care they’re basically I’m gonna pay my you know 5000 10,000 a month for my node or nodes and I know that I have at least this many transactions and I know that the transactions will not go up in price that I won’t have trouble getting a transaction on chain or anything else no matter who else deploys on network right the you know, crypto kitties comes out, it doesn’t kill me. You know, defy comes out. Kill me right cuz right now it’s it’s really hard on aetherium to do business um, and it’s really unpredictable you know minute to one minute to next but with with Dragon chain you know that if you lock in the feed the fees and your lowest fee right now is 2510 millions of $1 per transaction and so you can lock in that number and you know when you have these you know you have the 500 million transactions you’re going to have this month that is absolutely going to be at that fixed price you don’t have to worry as a business you don’t have to worry about getting lunch chain all that’s cooked so..

Rob McNealy – RobMcNealy.com
So would you say it’s so can you launch a token on your your platform on dragon is there is that part of that or are you do not do smart contracts the same way.

Joe Roets – Dragonchain.com
Um, we do smart contracts and we do have tokens and we have something that we’ve termed a wormhole tech. It’s basically Consider something as, consider a theorem as a different, different universe and a theorem classic is a different universe. And maybe I don’t know what other preferred, you know, maybe EOS or somewhere else that I might have a token that we can map them back and forth. We do that with Dragons. That’s how dragons operate already where we use aetherium for its ecosystem, its token standards and security, right. And it means that we didn’t have to build our own hardware wallets. We didn’t have to do a lot of things. We were leveraging Ethereum for that utility. And you can do that already. We’ve had quite a few people do it. And we’ve we’ve helped out a lot with that. But it’s a it’s a, it’s a scaling question for that right where, you know, there’s no reason instead in many cases for every single transaction to be on aetherium instead If you put it on dragon chain it’s secured to a theorem and secured a Bitcoin and so you can prove all that but then when you’re actually integrating like say is a game that you know the game can be played you could you could roll this into a normal game where there’s no blockchain sold as part of it, but when people realize, Oh, I have this, this device this sword this, you know something that that I have accumulated enough of and maybe I don’t need this one or something else that I can realize at that point. Oh, this is crypto. You mean I could sell this somewhere? How do I do that? And they say it’s an adoption question because then you can get people to play your game without them already being crypto people which is such a you know, nice have a nice have a nice to get normies to play it but then to attract normies into your token, where they’re like, Oh gosh, I’m gonna I was already having fun. Now I realize I can make money doing this right where that At that point, that’s when you integrate with the crypto side and the others cost involved where people pay fees or whatever else. But at that point, it’s it sets its own threshold. Right that you know, right now, you’d have to have a lot more value in a theorem to exit in order to make it worth the fee. Right. But kind of depends on how much is sitting there.

Rob McNealy – RobMcNealy.com
Well, I know I’m going back to when with our project with TUSC. When we started out, we weren’t eath token and it for us the nail in the coffin to build our own blockchain and move away from a theory was the F coin debacle two years ago, where they were just spamming the Ethereum blockchain and like it is right now. The cost to move tokens costs more than the tokens people wanted to move because of the transaction fees, which makes no sense to me and I have a lot of strong opinions but because I’ve been in as a project for a couple of years now as well, and, and I just It doesn’t make sense to me the way his theory was designed From a usability standpoint, and it’s like it, there’s, it’s baffling to me how they came up with the system the way it did. But, you know, it’s, it’s fascinating. So I always like to talk about what I when I talk to people that are developing projects and stuff and how, how do you get adoption? What is your strategy to get people to use dragon chain to build things on?

Joe Roets – Dragonchain.com
Um, well, we’ve gone through a number and some of them were, you know, you can get into libertarian side of things with, you know, we our initial piece to the engine was to have what we call the incubator or early on became dragonscale, which was supposed to be a very clean way to get incentivized input from people on the outside as to which projects should be moved forward. Right. And so there’s some funding to that, but there’s some selection to that and attention and and had a lot of really key features where it would have flatly solved a lot of the problems that the SEC is concerned about or other regulators were, you know, how do I avoid people? You know, how do I avoid exit scams? How do I avoid you know, and we had all that cooked in where it’s very clean way to be fair on both sides, where you know, early information, if, if it is correct, could be well rewarded, right. So, you know, people are incentivized to not lie, people are incentivized to end in on the other side, the projects are incentivized to actually deliver, because they don’t deliver, they don’t get their, their distributions of, you know, whatever the funding is on. And we had to pull back for some of that for us based on which was sad because that was clearly an advantage for adoption between a lot of interested parties. And we’re trying still to find we have a new take on it, that we think we could launch in the US but It’s not a top priority right now. And we we, we are actually actively looking actively looking for partners to do it internationally, you know that whether it’s for grants or other selection, but you know, VCs would be kind of primary. But right now what we’re working on is simply scale, you know, to be the the the system that can actually compete against traditional systems for scale. And definitely Trump them on security, and various other features that, you know, blockchain makes, you know, it’s pretty obvious and in that world, and so, you know, we’re really focused there and you know, we just launched a new pricing table where you know, we’d wanted it updated for quite a while. We’re now at transaction fees anywhere from $1 on the high end to, like I said, the 25/10,000,000 of a dollar and we’re getting a lot of interest because of that, and a lot of people are starting to realize what’s possible. And we’re also trying to do a lot of things that might to some seem a little bit you know, like they might not understand but you know, we launched launched on den den dot social and that’s basically a community forum that is native blockchain. So everything on the back end and there’s mining, and we really are trying to build out stuff that people can use both normal people and enterprises, right. So, you know, we just launched dragon factor my five which is a decentralized identity system that the back end has been operational for over two years. And you know, we’re just now Okay, we want to productize this now. We want other people to be able to use this like we have and and we have some really interesting aspects that we found a partner that could help us with some of the integrations that, you know, frankly, were more, you know, banking focused, you know, the typically things that banks do with identity were needed. But we were rolling in the ability to do it in a decentralized way where the user holds their own identity factors and can’t expose them as they wish, right? They don’t have to expose everything, they can expose just the smallest bit of information that passes whatever the business wants needs. And, um, you know, we’re basically, I mean, our strategy overall is very fundamentals based where we build and build and build and we figure out, you know, what does someone need we build it, we figure out okay, what would be a good demonstration of that capability, we build it and we’ve done it enough. I mean, we have a couple of systems that really are well used. You know, we get a lot of Transactions on eternal as an example people saving tweets and saving out various arbitrary information that they want to be able to prove later, you know, make some prediction on bitcoin price. I’ll put it there. And I can prove to you that is not just a screenshot that I photoshopped, you know, it’s this is literally data proven to, you know, hundreds of millions of dollars worth of security, you know, so interesting stuff like that. I don’t know. It’s hard to cut through noise though. There’s so much noise out there right.

Rob McNealy – RobMcNealy.com
And it’s only getting noisier isn’t it?

Joe Roets – Dragonchain.com
Yeah. Yeah. And all the all the speculation and all of the that that I you know, sometimes that’s a big complaint that I have.

Rob McNealy – RobMcNealy.com
Right, I hear ya. No, opinions, right? What do you think of DEFI?

Joe Roets – Dragonchain.com
I don’t want to, I don’t want to say anything early. Right. I mean, I saw the Fenton. We always played the Fenton thing yesterday on our show, because it’s so well done. If you haven’t seen it explain DEFI, you know, but my take is I think that there has to be, and I’m too busy to really research projects, like I used to, I used to know everything about everything coming out, but, you know, there weren’t as many then either. There have to be, I would make, I would put money down that there are at least a handful of amazing projects in that space, right. And stuff that’s really needed. That’s really well done. And it’s an amazing future. But somehow, they get cut, you know, they get they, they lose attention to, you know, 10 Ds and yams and stuff, and it’s just, it’s crazy, and it’s not good for the industry. I don’t think that stuff, right. Um, and, you know, it’s always the thing where money is such a powerful driver to all of this. And the reason I even got into this, I’m a software guy. So the reason I got into this is this was frankly, the most exciting place to be in software forever, right? That’s the next near the next closest would have been, you know, Linux and open source itself. And you know, that’s very general thing but it’s funny because Linux is very much about liberty. Right? And whether you talk to Stallman or you know, it’s very much about Liberty This is such a key component. And basically Bitcoin embodies that Bitcoin is radically so you know, I’ve talked before about how the fact that it has I say this it basically enslaves humans it incentivize humans to such a level that it’s the most massively focused on processing in on earth is Bitcoin mining it you know, blows away supercomputer metrics and everything else because there’s a money driver. And so the key that, that the world missing is at least that this industry is missing is keeping a balance between that and the fundamentals. Because it’s so easy for something like defy to come along with like, Oh, it’s a way to make money, it’s going to go up next week. All it matters is a green bar. It doesn’t matter what it does at all. And there’s, there’s, you know, there’s value to that, because it can drive people to be interested. But the problem is when people are lazy, and they don’t actually research or they buy tokens, and don’t actually try to, you know, the real incentive should literally be if you hold a token. And based upon your holdings, really, you should be focused on how can I help those projects? Because literally, that is the best thing. It’s not good to say I bought this token or what are you guys doing? Right? Why is this token not for real? Why is this token price not going up? as well? It’s so backwards. It’s like, people shouldn’t be lazy. You You hold it,in our case, our tokens, our software licenses, literally they are modeled from the beginning. We even have a patent on that, on that the token model as a software license that it was supposed to be the answer the licensing answer to what happens right now with commodity compute, you know, with Amazon, you shouldn’t be paying monthly still, you know, it you should be paying as part of and you know, the fact that you are paying for however much CPU use on fits, and we just tokenize that and so if you’re holding dragons, you should be actively seeking integrations business, even marketing, whatever your talents are, right? Um, but a lot of people get lazy and you know, it happens on all projects, you know, where people just want it to go up and you know, it’s, yeah.

Rob McNealy – RobMcNealy.com
Well, I always say you can’t bank on people not being lazy. In fact, I think the reverse I think you have to build systems. That is assumes that and then tries to figure out how to incentivize those people. Because I mean, we’ve run into the same thing right telegram group, why not go up or whatever it’s like it’s it’s pretty interesting. I do agree with you, I think, you know, people should do their research should do homework and, and should be more active and supporting. I’m just I’m not sure that’s realistic.

Joe Roets – Dragonchain.com
It’s like, I could see that, um, it’s the weirdest thing though, because you think about it. Most businesses, they have customers and the customers have their products and they don’t care otherwise. Right. But, um, you know, Apple and a few other few other companies have had something where it’s almost like a cult where people will actively promote for for no money, right? So there’s some there’s something psychological there on the intent, though, of, of crypto is that the the incentive is built in you hold that you actually own the token. Nobody can take it away from you. You You should literally be as incentivized as possible to actually try to promote, and sometimes you can see it, but it’s not maybe fun. focused, right, anyway.

Rob McNealy – RobMcNealy.com
Well, it’s interesting because, you see, I say success breeds success, right? Like if it’s starting to become popular that people want to be a part of that and talk about it. It’s that’s that tribal mentality, I think, and even with us when you know, our project, I mean, we’re not anywhere near where you guys are, but it’s like, you know, we can see when we have an announcement or you know, something cool really happens. It just gets people excited and they talk more about it when things are boring or low or not going the right direction. People get quiet about it. And I think part of that with crypto, you know, it’s it’s about that tribal identity and people want to associate with the winning team. They don’t want to they want they don’t want to associate with losing teams. That’s why it’s like you know, Bitcoin maximalist right I mean, you know, I’m not a big fan of Maxis on any project but if you look at Bitcoin maximalist it’s like okay, well you just like went to the number one football team and then you signed up for them and you’re there chiller. Well that’s that’s lazy, you know that, you know, it’s just like, okay, just sit there yay, yay great number one team keep going, you know and it’s like there’s more to it than that. But I do I mean I do appreciate your time and I think this is it’s good stuff and I and I you know I I’m gonna be doing a little more research and dragon I haven’t, you know, you in you know, inspired me to kind of do my own research here and and spend a little more time looking at what you guys are doing because you are doing some different things. And I think I hope the listeners here will take a look at dragon chain as well and see what you guys are doing. And you know, I hope in the future, you guys can come back or you can come back on and let me know when you got some cool, you know, projects happening or some cool announcements. I’d really like that. So, Joe, where can people find out more about you and dragon chain

Joe Roets – Dragonchain.com
Dragon chain.com primary we also do various things on den Deus social. And you know, you can reach out to us on telegram. I mean, there there are multiple official and unofficial telegram groups and multiple languages we have. We even have multiple language layers now and dim dot social so people can at least read about and ask about dragon chain in their own language with their own, you know, people that can answer directly so it’s pretty nice. And there are a lot of places I guess.

Rob McNealy – RobMcNealy.com
Joe, thank you so much for coming on the show today. I appreciate your time.

Joe Roets – Dragonchain.com
Thanks Rob.

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Nicolas Hernandez – Fantasy Gold Transcript

Nicolas Hernandez - Fantasy Gold

Note: This transcript was automatically generated by artificial intelligence (AI) and therefore typos may be present.

Rob McNealy – RobMcNealy.com
Hey folks Rob McNealy here. And today I am talking to Nikko Hernandez. He is developer out of Columbia, South America, or Central America, wherever that is. And today we’re talking about their project, which is pretty cool. It’s called fantasy gold. So welcome to the show. Niko. How are you today?

Nicolas Hernandez – FantasyGold.io
Good. Good. Thank you very much for having me. doing very well. Thank you.

Rob McNealy – RobMcNealy.com
Unlike most Americans, unlike go like most Americans, I’m geography independent, or geography illiterate man, I’m having a bad day today. So, where are you in Colombia?

Nicolas Hernandez – FantasyGold.io
This is South America and Central America.

Rob McNealy – RobMcNealy.com
You know, it’s like I’m having a long day.

Nicolas Hernandez – FantasyGold.io
It happens, it happens. So, we’re in those channels, about two hours outside of Bogota.

Rob McNealy – RobMcNealy.com
So when you think of crypto and tech hubs, you don’t normally think of South America. Am I right?

Nicolas Hernandez – FantasyGold.io
Correct. So although meta gene is becoming a really big tech hub actually met again is considered one of the most tech advanced cities in South America. There’s actually a couple of blockchain companies there exchanges and other other types of projects, no coins or tokens that I know of. But there are some some blockchain companies that are doing wallets and exchanges and things like that.

Rob McNealy – RobMcNealy.com
That’s very cool. It’s interesting, because I go to a lot of conferences, and I talk to a lot of people. And it seems like South America and Africa are like the two regions, then you don’t hear a lot about crypto from yet. And I do think that there’s a lot of potential in those different markets. But before we kind of jump into all that, kind of tell me a little bit about who you are, how did you get into the space? What do you up to how did you first hear about crypto and what got you into doing a project?

Nicolas Hernandez – FantasyGold.io
Sure. So let them doing things on the internet since 96. So back when AOL was the thing, and it was just started trying to creep out and getting to the mainstream before DSL, and all of this other stuff. So I was doing network setup, server rooms and that sort of thing. And later on, I got into, you know, doing some purchasing and selling of source codes, you know, closed in source codes, like, maybe there was a, I would look for projects that were marketable, but maybe the developer had kind of lost the passion for the product, something that I might see a market for. So I started buying and selling source code to things like Facebook apps and you know, other websites and things like that. So then, later on, we also started a security company. So we started security company here in Columbia. I was running for quite a number of years, doing a lot of network and access security control for big corporations, government installations, that sort of thing. And then there we kind of decided to close that business. I started looking at, you know, I wanted to do a fun project. And one of the fun things that I learned to do in the States was actually fantasy sports. So I hired a team of guys and we took about a year year and a half to, to develop a fantasy sports platform. So if you think like fanduel or DraftKings, you know, we were modeled basically after those those sites and became a successful business in terms of white label actually had a lot of companies approached me and licensed software from me and they would throw on their front ends. Then use my back end. Later on, I decided I want to launch my software, the software that I that I had built, and I want to show it to people. And you know, at that time PayPal and the other traditional type of processors were really getting, you know, stringent on who they will allow in. So and they were even freezing some accounts. So I didn’t want to have to deal with that. And I had studied a little bit about blockchain already. At that point, I had already bought some Bitcoins. I had some masternodes from a few coins, like small coins. And so I was always already interested in it as an investment for myself. But then I thought and I said, Well, if I can’t use PayPal or one of the other mainstream, you know, credit card processors, you know, this is a perfect use for this. Then anybody can play this play on the site. You don’t have to have a PayPal account or credit card to play if you have some digital currency you can play and, and, you know, enter into contests and tournaments on the site. So that’s how we that’s how we kind of started it out. So we initially launched in July 2017. So we’re running out three years now on the blockchain.

Rob McNealy – RobMcNealy.com
So where do you see it? going? What is your ultimate kind of goal for this project?

Nicolas Hernandez – FantasyGold.io
Well, my goal always has been to build a full ecosystem for anyone wanting to do fantasy sports eSports, any type of gaming because the way that I see things going is I feel like there’s going to be these small niche industries that have their own coins, right. So you don’t need it doesn’t have the same type of coin. You know, there’s there can only be one won you know Bitcoin or Bitcoin cash whatever camp you belong to there. You’ve got, you know, your aetherium, which has its its use case, of course, great model. And, you know, coins like dash and pivots. You know, I see those is like the umbrella type of currencies and then everything down below there should have some sort of ecosystem some reason to, to want to, to have that coin right, not just to buy it and oh, I hope it 10 X is next week or next month. You know, you’re going to buy a token and Okay, what can I do with this token? Now? Can I play a video game? Sure. Can I bet on fantasy sports? No problem. You know, can I do eSports? Absolutely. So, you know, we’re trying to make something that’s use case oriented, not just hype, and, you know, we’re gonna have this great stuff sometime in the future, you know, so That’s that’s kind of where I see us going. And hopefully, we’ll be able to track some additional developers since our chain supports smart, smart contracts and tokens. So we’re hoping to showcase some some good products and that we’ve made here in house. And hopefully that will inspire some other developers to say, Hey, you know what, maybe instead of Ethereum or Tron, maybe I should think about making a token on fantasy gold. Because, you know, that’s where, you know, maybe they have, you know, an audience that’s already going to appreciate what I have to offer, you know, the product or the app that I’m building.

Rob McNealy – RobMcNealy.com
You done some innovative things compared to a lot of other smart contracts platforms, I think namely with interoperability with other block chains. Can you talk a little bit about that?

Nicolas Hernandez – FantasyGold.io
Sure. So So obviously, we have, you know, the important component there is going to be the Ethereum virtual machine, right so in our chain, there Also in a theory and vote virtual machine running on the network, which supports the contracts. And the we didn’t do anything to the protocol other than rename it for a naming convention on the chain from ERC 20 to FGC 20. So you can basically decide, well, I have a Tron token. But I also like to have a nfdc token, you can copy paste your, your your smart contract into the compiler, grab the byte code and paste it into your FGC wallet and submit the contract and now you have a token on on both chains.

Rob McNealy – RobMcNealy.com
So are those tokens and would they be a duplicate token on each chain? Or is that just meaning that your ERC 20 token is now completely compatible on the fantasy gold blockchain?

Nicolas Hernandez – FantasyGold.io
Yeah, it would be essentially two separate tokens. But for example, if you have a Tron token or an aetherium token and you’re worried about things like gas network times. You know, it might make sense for you to just say, Hey, you know what, instead of a theorem, I’ll just, I already have my code done, I can just copy paste and, and, you know, create my my token on the on the FGC chain.

Rob McNealy – RobMcNealy.com
So if I was gonna say swap from an ERC 22 and FGC 21, how easy is it for the exchanges to adopt that and then track that.

Nicolas Hernandez – FantasyGold.io
So basically with a swap for the exchanges to do that. If they support FGC chain, if that’s already listed on that exchange, all they have to do is add a single line to their configure file. And they’re able to support FTC 20 tokens, right? So it’s not a complicated thing for the exchanges to do. And the the address that in exchange gives you. So your typical FTC address that you generate, whether it’s in your wallet or on an exchange, that same address is also you can also be used for tokens to send and receive tokens. So for the exchange for an outside exchange, this should be a fairly straightforward process. And then we are also right now we’re in closed beta, and we are adding FTC 20 tokens to our own exchange. So if there was a swap, we would also you know, be willing to help to help people facilitate those swaps on the exchange.

Rob McNealy – RobMcNealy.com
When is your exchange launching?

Nicolas Hernandez – FantasyGold.io
Well, like I said, right now we’re in closed beta, I have some UI issues that I’m not happy about, you know, I want things to to update in real time without refreshing. So we’ve got most of the market parameters doing that now. And so I think right now, we’re just looking at finishing up the CFTC 20 tokens, hoping that this week, we can finish that and start testing those. And hopefully we can also clean up the UI a little bit, and get it ready for the initial public launch. So hopefully, one to two weeks, we might be able to open up to public beta and start, start seeing some transactions going on there.

Rob McNealy – RobMcNealy.com
So is your project a centralized project or a decentralized project?

Nicolas Hernandez – FantasyGold.io
Decentralized, very decentralized. You know, we didn’t sell the big Ico and hold back a lot of coins. You know, team members, that current team now that’s holding coins, they own coins, because they purchased them, they weren’t giving anything in an Ico. And so there’s not, you know, a centralized control over those things, you know, 99% of the tokens that are in production now or out in the market now or owned by the community. So and we also So in 2018, we received the letter of opinion that we are a decentralized utility, not a not a currency, not a coin.

Rob McNealy – RobMcNealy.com
So is there a foundation or any kind of Corporation behind this? Or is it just completely on chain governance?

Nicolas Hernandez – FantasyGold.io
Just completely on chain governance. You know, at, at some points if we get some, some commercial success in some of our projects, you know, corporations will have to be set up, you know, to pay in any legal taxes required and, you know, whatever jurisdiction we’re operating in at that point.

Rob McNealy – RobMcNealy.com
So, how does your blockchain play with others in the sandbox?

Nicolas Hernandez – FantasyGold.io
How do you mean?

Rob McNealy – RobMcNealy.com
So, you know, how do you deal with for instance, you know, with Bitcoin, I read somewhere, you guys have some, you know, functionality crossed chain that can work with the Bitcoin blockchain. Can you talk about that a little bit?

Nicolas Hernandez – FantasyGold.io
Sure, well, the coin is essentially Bitcoin using the unspent transaction, and it has the aetherium EBM sub module. So there’s a sub module in the chain in the code that handles all of the Ethereum type of virtual machine requirements in c++ so that it works with our Bitcoin Bitcoin based blockchain. So it’s basically Bitcoin but with an added instead of, you know, doing your typical proof of work mining, it’s proof of stake. So the nodes the the users out there who are staking coins, they’re they’re the ones that are processing and verifying transactions. And then, you know, the block reward is handed out to 10 people in the staking pool who’s ever staking out That time individually, you know, when a block is created, it gets sent out to 10 people for for the block reward.

Rob McNealy – RobMcNealy.com
So where are you in your roadmap outside? I know you said you’re in your beta right now closed beta for your exchange. Where are you at the blockchain in the crypto community piece of this? Or do you have any kind of integrations right now or any partnerships of note? That would be interesting to hear about?

Nicolas Hernandez – FantasyGold.io
Yeah, I don’t know which names I can mention. We are speaking with a, an Esports group that has a pretty, pretty large following. They have a token on another chain, and they, you know, they’re looking at switching over to us, we’ve been in talks with them quite a bit. I’ll actually help them put their token together, the way that they want it to be done, and they’re, they’re hopefully going to swap over from their token to an FTC 20 token here shortly. Where Have the partnership with FTC arena, which, you know, they’re getting some some things worked out on their end, both internally and with the site. But once they do that, you know, FTC arena will have its own token. And so other than that there are some partnerships with potential partnerships with, you know, other developers who are either thinking about or already have done something in blockchain and are are considering looking at us for for their chain to run their tokens on.

Rob McNealy – RobMcNealy.com
So in your ecosystem, I mean, it seems like you got a couple things going on and just help me understand. So you have your own crypto that is traded already on exchanges and things and you would like that to be used for say betting or in sports game, you know, in sports eSports you know, in game purchases and that kind of thing. But then you also have this separate, you know, smart contracts platform where other people can build the Their own tokens on the back of your network. Is that correct?

Nicolas Hernandez – FantasyGold.io
Kind of Yeah. So FTC, the base currency, as, as I guess I would call it the base currency, the base coin is FTC. And so if people would like to adopt FTC and use FTC on the website directly they can. So we’re trying to provide those tools, you know, the necessary JavaScript libraries and web three libraries to do all of that stuff. A lot of that stuff is in our GitHub already. But, you know, essentially, if they don’t want to use FGC, and they want to create their own token, then they have that option to do so they can very easily and very simply just, you know, make their own token and deploy it and use that instead of the, instead of the base token, it’s the base coin itself.

Rob McNealy – RobMcNealy.com
Would you expect that people that are building tokens on your network would be like Largely also used in the esports arena? Or are you thinking that they’ll just be used for anything? I guess what I would think about is like, Is there a risk of cannibalization between your existing base currency and these other tokens if they’re both kind of focused on the same space?

Nicolas Hernandez – FantasyGold.io
Not really, because so for example, we have draft daily that was running successfully for quite some time, we were actually the first crypto that had an actual functioning and working daily fantasy sports sites. Even before the others while they were still in planning. We came out with the product first. That was actually working. So let’s say we decide okay, well, we’ve got a little bit of time too. And we have sports back Of course, we will need sports to come back. So if sports comes back and we relaunch draft daily, we’ve already have our draft dollars token on the chain for that site. If another fantasy site wants to come in and make their own token, that’s fine with us. Maybe they provide a different user experience. Maybe they provide a different way to play the game different rule sets that they like better different sports, you know, anything that they want. That’s different. The, the fact that there’s two coins, two tokens, they’re on the same space, trying to compete for kind of the same customers. not that big of a deal, because at the end of the day, just like a theorem, you, you have to pay a gas, right? So in our chain, if you’re doing transactions with tokens back and forth, you’re paying a gas, but in this case, the gases FGC and that gas that’s spent on those transactions, whether you know, you have Rob’s fantasy token and draft dollars token, if I’m doing transactions and playing on one or either of the sites. The user still have to have some FTC in their wallets to pay for those transactions. And those those fees, those transaction fees that are in FTC, actually hundred percent of that go back to the staking pool. So for example, our block reward is five FTC per block. Well, if you have some transactions mixed in with that block, that block could be seven or eight. And it’s going to go out be divided up to those 10 people that are up next for the staking reward. So you know, you’re creating an ecosystem that benefits everybody, the holders, the takers, and at the end of the day, the individual apps, it’s dependent on them to make the user experience that the users want to play with, you know.

Rob McNealy – RobMcNealy.com
So are your transaction speeds are they pretty fast? How fast is a confirmation on your blockchain?

Nicolas Hernandez – FantasyGold.io
So block time is approximately two minutes right now, but The transaction speed is very fast. It’s almost instantaneous. So, for example, in beta testing the exchange testing withdrawals was obviously very important. I would say, in less than five seconds from you clicking the Submit withdraw and it being, you know, allowed through the admin. You’re going to see it on your desktop wallet. Nice. Yeah. So it’s, it’s um, I mean, I don’t I don’t want to use words like instantaneous but it’s it’s pretty close to it.

Rob McNealy – RobMcNealy.com
So gas I we were with Tosca originally and eath token and then we built on blockchain. And in gas was a pain in the ass on a theory and in fact, gas is one of the main reasons we left a theorem. Have you done anything to differentiate how you guys treat gas then say aetherium is doing or is it the same kind of, you know, same kind of complications.

Nicolas Hernandez – FantasyGold.io
No, it’s um, well in aetherium, you know, you have aetherium, which is the base coin, you have your token, and you have your gas. So they’ve introduced this third thing into the equation. So we in our system, get FCC is the gas. So there’s no, there’s no third piece to the puzzle. Which, which helps things quite a bit makes things a little bit more leaner and, and a little, a lot less complicated. So you don’t have to have a theory of mind gas and your token you have just your token and your FGC.

Rob McNealy – RobMcNealy.com
Well, that’s how it is on a theory. I mean, you just a theory is the gas on the Ethereum blockchain. So..

Nicolas Hernandez – FantasyGold.io
Right but on a theorem, can you also collect gas separately? You can separate your gas now Okay, then now it’s a

Rob McNealy – RobMcNealy.com
Yeah, so yeah, it’s a theorem is the gas that It’s interesting. gas is really complicated. Like if you go like, like that. I mean, it really is, you wouldn’t believe how many developers don’t understand gas. And I’m not a developer, but I understand gas. It’s like pretty funny. To me. And that was one of the reasons I don’t like a lot of smart contra. I’ll be honest and nothing. I haven’t even looked at your stuff yet. So as far as your blockchain, but I think that’s one of the things I think from a usability standpoint about smart contracts platforms is you need a separate gas. And or, you know, you have to use this underlying base currency to run tokens around. I think there’s a usability issue. And I don’t know what the solution to that is. You know, I always thought it makes more sense to me if the tokens could be moved across the blockchain in their own currencies so that users and users don’t need to buy two kryptos to move the one token, for instance. So if that, to me, I think there’s a huge barrier to adoption out there with smartphones and this is not just a theory It’s most of the smart contract platforms either have the same issue, right. But we thought that it would be a lot better if the gas was built into the native token. And that somehow, then the token could settle out with the base blockchain for paying for the transactions. So that end users didn’t need to buy the additional coin to run the grass. I don’t know the solution to that. But it just that was one of the problems we hated about a theorem. And even our own developers. It’s amazing when you get into the people that are developers don’t understand how a Ethereum gas works.

Rob McNealy – RobMcNealy.com
Yeah, timeout transactions and things like that, especially with when you’re building the app. So we built two D apps. When we were a token, one to distribute our tokens and one to swap our tokens on a blockchain and the gas was a big hang up for most people like trying to deal with that piece of it and setting it and make sure you have enough gas and but making sure you’re not spending too much gas and Things like that. So I don’t know, I don’t know what the solution is for that.

Nicolas Hernandez – FantasyGold.io
But well, when the difference, then between us and Ethereum would be the cost of the coin and the gas fee. So we try to keep the gas fee pretty low. It’s actually 40 SATs is I think it’s well, we have it out right now. And in the gas fee itself for for these transactions. So 40 SATs in aetherium versus 40 SATs and fantasy gold, you’re looking at quite a price differential there in a fixed fee. Yeah, no, you know, it can be adjusted. So for example, part of the decentralized governments of the chain is we can actually change things like gas fees without having to do any sort of soft fork or any any sort of major upgrade.

Rob McNealy – RobMcNealy.com
That would that’s I think that’s I think that’s a smart move personally, because the value of the token goes up, you’re gonna want to keep that fee low.

Nicolas Hernandez – FantasyGold.io
Right? And you can in within the wallet itself, while you’re while you’re sending tokens, you can change the gas fee, you know, you can pay a little bit more, you can pay the absolute minimum, you know, all depending on, you know, what the user needs to do or accomplish for that transaction.

Rob McNealy – RobMcNealy.com
So, how many tokens have moved over? So far from say, a theorem to fantasy gold,

Nicolas Hernandez – FantasyGold.io
So far, zero? So right now, we’re just in talks with a few people. You know, the last 12 months for blockchain, of course, has been pretty, pretty, pretty, pretty brutal for some people. So I think right now, we’re just kind of regrouping after that. After that, that that 12 month period that a lot of us have gone through, and we’re starting to get the name out there again, you know, We didn’t since we didn’t have a huge marketing budget or Ico for marketing. You know, we don’t have a huge amount of followers like, like some other coins. So, hope hopefully once that starts to take off and more and you know, through things like this great podcast here. You know, we can attract some more developers that will that will consider using it.

Rob McNealy – RobMcNealy.com
Well, I hope that that works out. So Nikko where can people find out more about fantasy gold.

Nicolas Hernandez – FantasyGold.io
So we have our main website, which is fantasy gold.io. And that website, just off the bat is actually in the process of being completely reworked. We have some things that we want to add to the roadmap update the roadmap and the overall design, away from fantasy sports specific genre over to a more generalized fantasy sports eSports gaming, that sort of thing. And from there, you know, our discord kind of great community right now, the mods, they’re very nice and pretty nice tip bot going on going around. So anybody that wants to join our discord, you’ll find the link on the website. And, you know, just come in, hang out and you might get some free FGC from people throwing around rain tips.

Rob McNealy – RobMcNealy.com
Wonderful. Niko, thank you so much for coming on the show today, folks, we’ll have all those links listed up at Rob McNealy calm. Make sure you hit that subscribe button. As always, it’s been great talking with you and thanks so much.

Nicolas Hernandez – FantasyGold.io
Okay, thank you, Rob.

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