ETHEREUM IS 1500 AND CHANGE,
LIGHT COIN SLIGHTLY HIGHER.
SEPTEMBER IS HISTORICALLY A WEAK
MONTH FOR BITCOIN IN PARTICULAR.
THE CURRENCY FALLING AT LEAST 7%
THE LAST FOUR YEARS IN THAT
MONTH.
I WANT TO BRING IN TECH ANALYST
AND COIN DESK CHIEF OF STAFF OF
CONTENT, PETE PASHAL.
PETE, AN OLD FRIEND.
IT’S GREAT TO SEE YOU AS ALWAYS.
>> GOOD MORNING.
CHERYL: LET’S START WITH
CRYPTO.
A LOT OF VALUE, A LOT OF WEALTH
HAS BEEN WIPED OUT THIS YEAR.
HOW DO YOU RESPOND TO THAT?
>> YEAH.
SO, I MEAN, VOLATILE ASSET I’LL
VOLATILE IS KIND OF LIKE WHAT MY
GENERAL CONVENTION IS ON CRYPTO
AND THAT’S KIND OF LIKE DUH.
IT IS ONE OF HE’S THESE THINGS
WHERE NOW CRYPTO, I THINK WE CAN
ESSENTIALLY PUT TO BED A NOTION
THAT IT’S A FUNDAMENTALLY
DIFFERENT MARKET TYPE OF ASSET
AND MIGHT MOVE IN SORT OF
OPPOSITE DIRECTION AS THE
OVERALL MARKET.
I THINK THAT’S OVER THE PAST
COUPLE OF YEARS THEY’VE SORT OF
STARTED TO ALIGN MORE AND MORE
WITH TRADITIONAL MARKETS.
, SO YOU SEE IT IN TRADITIONAL
RISK ASSETS.
THAT’S A BIG CHUNK OF WHAT WE’RE
SEEING NOW.
YOU SEE THE NEWS COMING OUT OF
THE FED ABOUT INFLATION TENDS TO
AFFECT CRYPTO IN SIMILAR WAY AS
THE REST OF THE MARKET.
THAT’S PROBABLY A BIG REASON WHY
AUGUST HAS NOT BEEN A GREAT
MONTH FOR CRYPTO THIS YEAR AND
THE FED SIGNALED GETSING SIGNALE
BE MORE AND MORE HAWKISH ON
INFLATION AND THERE WON’T BE A
RESPITE IN THOSE MARKETS.
THE NOTION ABOUT CRYPTO BEING A
TOTALLY DIFFERENT KIND OF ASSET,
I THINK WE CAN PUT THAT TO BED.
BITCOIN IS A NARRATIVE DRIVEN
ASSET.
SEPTEMBER IS TRADITIONALLY A BAD
MONTH FOR BITCOIN.
REALLY, PROBABLY THE OVERALL
MARKET REASONS FOR THAT, LIKE
PEOPLE COMING BACK FROM
VACATION, BIG EXPENSES, CLEANING
UP PORTFOLIOS, THE END OF THE
FISCAL YEAR.
IT’S A SELF FULFILLING PROVE PHI
IFPROPHECYIF EVERYONE IS SAYING
TO REQUEST A BAD SEPTEMBER, IT’S
PROBABLY GOING TO BE A BAD
SEPTEMBER BASED ON PSYCHOLOGY.
CHERYL: IS BITCOIN GOING AWAY?
NO.
BUT WE’RE IN A HIGHER INTEREST
RATE ENVIRONMENT.
THOSE WILL CONTINUE TO GO UP.
THAT MAKES EVEN NOT JUST BITCOIN
BUT OTHER RISKY INVESTMENTS, A
LOT OF THE TECHNOLOGY STOCKS,
THEY DO GET AFFECTED BY THAT.
SO -- BUT YEAH, TO YOUR POINT,
BITCOIN CERTAINLY IT IS A VERY
INTERESTING THING TO TALK ABOUT
WHEN IT COMES TO THE MARKETS.
I’VE GOT TO STAY WITH TECH WITH
YOU, THIS ISSUE WITH SNAP.
THE STOCK RALLIED BUT THEY’RE
LAYING OFF ABOUT 20% OF THE
WORKFORCE AND THEY’RE CANCELING
ORIGINAL SHOWS, GAMES, OTHER
PROJECTS.
TWO SENIOR EXECUTIVES ARE GOING
TO NETFLIX.
YOU’VE GOT NETFLIX THAT IS
TRYING TO GET ADS FOR THEIR
SUBSCRIPTION.
PETE, YOUR TAKE ON BOTH OF THOSE
STORIES?
IT’S A DIFFERENT GAME NOW FOR
BOTH OF THOSE COMPANIES.
>> WELL, WITH SNAP, WHENEVER I
TALK ABOUT SNAP, I HAVE TO KIND
OF REMEMBER WHY IT EXISTS.
IT REALLY DOESN’T HAVE THAT SAME
CLEAR PURPOSE THAT MANY OTHER
SOCIAL NETWORKS HAVE, LIKE ITS
PEERS, LIKE TIKTOK, LIKE
FACEBOOK, LIKE TWITTER AND
LinkedIN, THEY SEEM TO HAVE A
CLEAR PURPOSE.
SNAP, IS KIND OF A SOCIAL
NETWORK THAT JUST KIND OF IS
THERE.
IT’S ALMOST LIKE EXTRA.
IT’S VERY SIMILAR TO INSTAGRAM
BUT HAS SORT OF ITS OWN
AUDIENCE.
NOW, THAT SAID, I THINK -- I
DON’T WANT TO TAKE TOO MUCH AWAY
FROM SNAP IN THAT OVER THE PAST
FEW YEARS IT WAS ESSENTIALLY
LEFT FOR DEAD WHEN INSTAGRAM
STARTED EATING ITS LUNCH AND
IT’S SORT OF FOUND ITS AUDIENCE
BUT THINK ABOUT THIS.
THE OVERALL DIG NAIL DIGITAL ADV
MARKET IS GETTING CUT BACK.
IF YOU HAVE ADVERTISING SPEND,
IF YOU HAVE A DIGITAL
ADVERTISING BUDGET AND YOU’RE
LOOKING AT ALL THESE NETWORKS,
WHERE ARE YOU GOING TO CUT?
I THINK THAT SORT OF FUNDAMENTAL
QUESTION OF WHAT IS SNAP, WHAT
IS IT FOR, WHO IS ITS AUDIENCE,
YOU PROBABLY -- IT’S ONE OF THE
FIRST THINGS YOU GO FOR IN YOUR
BUDGET AND THAT’S WHY SORT OF
THE IRONY OF WHY THE EARNINGS
AND THE RETURNS HAVEN’T BEEN
QUITE SO MUCH AND HAVE BEEN A
LITTLE DISAPPOINTING.
SO THEY’RE ACTUALLY DOING A VERY
SMART MOVE.
NOW, IT’S A DEEP CUT.
WHEN YOU SAY YOU’RE DOING 20% OF
YOUR WORKFORCE.
BUT THEY’RE CLEARLY VERY FOCUSED
ON MAKING SURE THAT THAT BOTTOM
LINE DOESN’T KEEP GOING FURTHER
AND FURTHER DOWN SO THAT IT
BECOMES AN EXISTENTIAL THREAT
FOR THEM.
THEY’RE HUNKERING DOWN, THEY’RE
HERE TO WEATHER THE STORM.
CHERYL: THE STOCK IS UP.
YOU HAVE TO COME BACK AND TALK
ABOUT NETFLIX.
WE DIDN’T GET TO APPLE WITH THE
14 COMING OUT.
YOU KNOW I ALWAYS ASK YOU ABOUT
THE NEW iPHONE.
I’M GOING TO HAVE TO E-MAILING
YOU ABOUT THAT -- E-MAIL YOU