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00:00I WANT TO BRING IN THE LEAD DEVELOPER OF THE AVALANCHE BLOCKCHAIN. BIG PICTURE TO KICK US OFF, I THINK SOME OF THE THEY QUESTIONS ARE, IF IT ' S A STABLE GOING AND IT ' S NOT STABLE, WHAT IS IT? GUEST: THERE ARE A COUPLE OF TYPES OF STABLE COINS. ALGORITHMIC STABLE COINS LIKE TARA. -- TERRA. WE CAN SAY IT DID NOT WORK OUT. IN THE BACK OF OUR MINDS, EVERY PERSON HAS THE HOPE THAT SOMEONE CAN FIGURE OUT A MONETARY SYSTEM THAT DOES NOT RELY ON EXISTING THINGS THAT ARE TRADITIONALLY OUT THERE AS RESERVES. WE ALL ROOTED FOR IT, UNFORTUNATELY IT DID NOT WORK OUT. IT ' S VERY EARLY IN THE SPACE AND I ' M SURE THERE WILL BE MORE EXPERIMENTS. IN TERMS OF THE LATEST RESTRUCTURING PLAN, I UNDERSTAND THEY ARE TRYING TO FIGURE OUT WHO ARE THE SMALLHOLDERS AND USE WHATEVER IS LEFT IN RESERVES TO BASICALLY GIVE BACK. THAT BE MY NUMBER ONE THING. IT IS WHAT IT IS. USE RESERVES TO GIVE BACK TO THE RETAIL PEOPLE LEFT HOLDING THE BAG. TAYLOR: I WANT TO ASK MORE, BECAUSE WHAT DOES IT SAY ABOUT THE RESTRUCTURING OF THE CRYPTO ECOSYSTEM? WHO SHOULD GET PAID, WHO HAS CLAIM ON THE ASSETS, AND WHAT DOES THE PROTOCOL OWED TO ITS INVESTORS? HOW DOES THIS PLAY OUT? JOHN: THAT NEEDS MORE CLARITY OVER TIME. TO ME, AT LEAST FROM A COMMON SENSE PERSPECTIVE, THIS IS THE ONE INDUSTRY WHERE THE RETAIL INVESTOR -- FOR YEARS, IT ' S BEEN RETAIL INVESTORS GLOBALLY THAT SUPPORTED THIS ECOSYSTEM UNTIL RECENTLY. PHILOSOPHICALLY, I THINK THE RIGHT MOVE IS TO USE WHATEVER IS LEFT TO FIGURE OUT WHO ARE THE SMALL BAG OR WALLET HOLDERS AND TRY TO MAKE THEM WHOLE IS MUCH AS POSSIBLE. SONALI: WHAT ABOUT THE IDEA THAT OTHER STABLE COINS CAN BE MADE? YOU TALKED ABOUT EXPERIMENTATION. TO WHAT EXTENT DOES THE INDUSTRY NEED SOMETHING LIKE AN ALGORITHMIC STABLE COIN OR PARTIAL ALGORITHMIC STABLE COIN IN ORDER TO SCALE? JOHN: THE INDUSTRY DOES NOT NEED IT. WITH GOING TO COME OUT OF THIS IS THE USDC WILL GAIN MARKET SHARE. U.S. DT WAS TESTED A LITTLE BIT, BUT THEY NEED TO CANNOT WITH BETTER TRANSPARENCY. THEN YOU HAVE OTHER STABLE COINS THAT HAVE ALL HELD UP. IT WOULD BE NICE TO HAVE AN ALGORITHMIC STABLE COIN, BUT JUST LIKE ANY ECONOMY, ECONOMY NEEDS A UNIT OF ACCOUNT FOR A MEDIUM OF EXCHANGE THAT IS STABLE. FOR NOW, MAYBE ONE THAT IS TIED TO THE U.S. DOLLAR IS THE BEST THING. TAYLOR: WE KNOW REGULATION LAGS, THEN IT OVER COMPENSATES. DOES THAT WORRY YOU WHEN YOU THINK ABOUT A POTENTIAL REGULATORY LANDSCAPE? JOHN: I HAVE BEEN SAYING THIS FOR A WHILE. PROTECTING THE CONSUMER IS WHAT MOST OPERATORS ONE. ESPECIALLY FOR COMPANIES IN THE U.S.. IF YOU TAKE A POSITIVE OUT OF THIS, IT ' S ACCELERATED THE CONVERSATION. EVEN TODAY, WE HEARD -- EVERY CRYPTOCURRENCY HAS A DIFFERENT TYPE OF CONSTRUCT. SOME DESERVE TO BE REGULATOR-PROTECTED USING DIFFERENT RULES, AND HAVING DIFFERENT BODIES OR AGENCIES HELPING OUT IS PROBABLY THE BEST THING, AND ACCELERATES A CERTAINTY FOR THE WHOLE SPACE. ONCE THERE IS CERTAINTY, ADOPTION BECOMES BETTER. SONALI: I AM CURIOUS IN OTHER WAYS. THE TECHNOLOGY ITSELF, HACKS, CHAINS, DE-PEGGING. I AM WONDERING ABOUT YOUR THOUGHTS ON LAYER ONE IN GENERAL AND INVESTOR APPETITE AFTER SOME MISHAPS WE HAVE SEEN. JOHN: GREAT QUESTION. IF YOU LOOK AT THE SPACE, LET ' S NOT CONFUSE CYCLICAL ISSUES WITH SECULAR GROWTH. IN TIMES LIKE THIS, QUALITY COMPANIES OR PROTOCOLS OR APPLICATIONS GAIN MARKET SHARE AND BUILD BETTER. MY OPINION IS, IT ' S UNFORTUNATE, NO ONE LIKES TO SEE CRYPTO ASSET PRICES GO DOWN, BUT THE BENEFIT IS, THE PEOPLE WITH QUALITY PRODUCTS THAT HAVE BETTER UTILITY AND ARE BUILDING SOMETHING REAL WILL TAKE MARKET SHARE, AND COME OUT STRONGER AND PROVIDE MORE UTILITY IN THE END. SONALI: IN OUR WEEKLY CRYPTO SHOW WE ' RE GOING TO BE TALKING ABOUT ETHEREUM AND GAS FEES AND WHETHER THEY CAN COME DOWN. I AM WONDERING HOW THIS PERTAINS TO YOU AND AVALANCHE, THE ABILITY TO BRING DOWN GAS FEES. JOHN: TRADE SHOW, IDV YARD THAT -- GREAT SHOW, I DVR ' D THAT. ETHEREUM WILL GET TO WHERE AVALANCHES. -- AVALANCHE IS. IT IS GOING TO MISS OUT ON THE INSTANT SETTLEMENT THAT AVALANCHE HAS OR SCALABILITY THAT AVALANCHE HAS. THIS WEEKEND, AVALANCHE HAD A SCALING FUNCTION CALLED A SUBNET, AND GAMING COMPANIES LAWRENCE ARM THESE SUBNETS. TRANSACTIONS INCREASED 25% WHILE PRICES WENT DOWN 20 FOLD. THERE ARE MORE TRANSACTIONS ON AVALANCHE ON A DAILY BASES THEN ETHEREUM -- THAN ETHEREUM. WITH THE MERGE, WE WILL GET TO A PLACE WHERE LAYER ONCE ARE AT. SONALI: 1:00 P.M., MY BED. SPEAKING OF AVALANCHE AND THE ABILITY TO MAKE IT THROUGH THE DOWNMARKET, I AM WONDERING AS THINGS ARE COOLING DOWN, BUT DO TAKE THIS TIME TO DO? JOHN: TAKE THIS TIME TO FOCUS. AGAIN, THE GOOD COMPANIES THAT HAVE A GOOD BALANCE SHEET HAVE THE ABILITY TO GAIN SHARE AND CONTINUE TO BUILD. INSTEAD OF THINKING ABOUT 18 MONTHS OR 24 MONTHS, YOU WANT TO BE FRUGAL AND LAST FOR 24 TO 30 MONTHS. THE ONES WITH THE GOOD BALANCE SHEETS AND GOOD PRODUCTS SHOULD

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Failed Terra Stablecoin Rescue Costs $2.9B

Ava Labs President John Wu joins Bloomberg's Taylor Riggs and Sonali Basak to discuss the future of stablecoins after Terra's implosion, and gives his take on the current crypto winter and volatility. (Source: Bloomberg)

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