Coinbase wants to be your bank, your broker, and your financial advisor all using AI automation. At the same time, the great state of Illinois wants to tax you to move crypto from your own wallet to your own wallet. Those are just some of the stories we're going to dig into today on the Daily Wolf. Let's go.
What is up everybody? Welcome to the Daily Wolf on Yahoo Finance. I am your host Scott Melker, also known as the Wolf of all streets. Now, I think that the media will largely be focused on Kevin Warsh and his first FOMC presser today. But I think that that's largely going to be a nothing burger that will largely be undisscused by tomorrow. He's going to give the conference. They're going to probably not raise rates. They're going to not lower rates. They're going to stay the same.
People are just looking to see whether his tone will be dovish or whether he'll be more of a hawk. I think that it's ignorable like all of the past FOMC conferences and it's not really what's interesting in the news right now. So I think what is probably the most interesting story right now is the announcement that Coinbase made yesterday. So, as you can see here, Coinbase pushes to become everything exchange with stocks, perps and AI. So listen,
they made a massive announcement like they're starting 11 new businesses at once in one day. Of course, this is after they had pretty brutal earnings in Q1, and we know that crypto trading revenues are down bad. Not only on Coinbase, but everywhere else. But this is the push to be the everything app. Just to give you a few things that they announced. They announced commission-free stocks ETF indexes on Coinbase Advanced, and you can also transfer your brokerage portfolio in via CATS without selling.
So you'll be able to transfer in from another brokerage without selling anything. Now, they're announcing options here for both crypto and equities. They will be 24/7 perpetual style stock index trading. So the perps that we had in crypto that are now being legalized in the United States as I said was likely to happen, will now be live on stocks as well. But interestingly, they're going to settle on USDC and are saying that they're going to offer up to 20
X leverage. I'm not sure how they're going to do that. We told you she topped out at about 5.8 on Bitcoin, but maybe for certain stocks they'll be able to go up to 20X. That is a lot of leverage. Be careful out there people. They're offering pre IPO perps. So SpaceX live, you know, obviously before it IPOed, but Open AI, Anthropic, all private things you'll be able to trade on perpetual swaps with leverage before they even IPO, which is something that we've seen on hyper liquid and other exchanges obviously.
Now, this is the most interesting one to me. Coinbase Advisor, they're calling it, quote, one of the first SEC registered AI powered investment advisors. You talk to it in plain English and it acts on your accounts. This is actually SEC registered. I have so many questions. If you're SEC registered as a human, you have a fiduciary duty and you're responsible for the advice that you give, and people who are not registered are not allowed to give financial advice. How they're going to swing this with AI,
I have no idea. So here's a couple more. Autonomous AI trading agents, which we've seen already launched other places, OKX famously has a great product for that. Tokenized stocks outside the US, which are one for one backed, which is unique, a 5.5% Bitcoin travel rewards, a USD credit card and borrowing against staked Solana. Quite a mouthful all the things that they're offering here. So I think the real signal here is that they're going after Schwab, Robin Hood and the banks, right?
They don't want to just go after the exchanges, they want to go after the banks. And they're trying to swallow the entire stack at once. I mean, they they just announced they want to handle your stocks, your options, your retirement, your credit card, and let AI trade your account while you sleep. They've basically offered to do everything except for babysit your kids, but I would assume that that's probably coming in Q3. I mean, this is just an astounding offering. The market though did not necessarily react as far as the stock.
I think a lot of people think maybe they're trying too much. Regardless, I'm here for it and I think that this is a signal of where everything is likely headed in the future for all of the competitive exchanges. I'm not going to let AI advise me on my portfolio, probably. Uh, I don't understand uh how that's going to happen with the current iterations. They even admitted basically in the press release that AI can be wrong and maybe you'll want to not
use it. So, uh some interesting nuance there. We're going to see what happens. Now, the next story that we have today, we have to show this guy's face every story. Uh we're contractually obligated to show Michael Sailor. Uh, Mike, send that check in the mail. Uh here's my strategy dividend paying crypto stock is crashing to near historical low. So the story was obviously that it went down to almost $91 overnight. It'll be floating. I'm sure today anywhere from 91 to 93 to 95 depending on the moment.
That's not really what's interesting. So first, obviously, we have STRC under pressure. As I told you uh earlier this week, they did not pump during the ex- dividend period when usually you would see it rise to $100 par and the Bitcoin buying machine would turn on. CEO of Fou Li, who I had on the show on Friday to discuss all of this, uh publicly floated two fixes, which are basically built in. One of them obviously is raising the dividend uh and the other one would be to continue adding cash to the reserve to give the market confidence which
as you heard on my show, he said he doesn't really believe they should have to do but they would be willing to do it. Now, I think maybe the bigger story here that we haven't talked about is that there's a competitive product in the market from uh Matt Cole led strive and it's called SATA, which is SAT A for those of you who have not paying attention. Now, SATA offers a 13% yield. We have talked about it before, but they've just changed to daily dividend payments. So they're paid daily.
Now, remember STRC went from once a month now to twice a month. That was their big innovation. SATA is paying every single day. And even though they're smaller, another really interesting detail is that Strive cleared all of their debt, all of their obligations, and on my actual podcast, I talked to Matt Cole after they did this and he said, basically we saw that STRC is the way that Sailor has perfected to buy Bitcoin.
Sailor said that to me at Money 2020 in Vegas. He basically said I wish I'd not done all these other products we've found the Holy Grail. Well, Strive realized that, made a product that has a higher yield, pays dividends every day, and they cleared out all of their debts and obligations and said this is the only way we're going to do it. So, I think there are people out there who want exposure to this kind of product who don't want all the things that come with strategy and their past uh iterations of products that they created to buy Bitcoin, and so people are focusing on that one.
So it's interesting that a smaller rival might be starting to really compete because that product has floated right around $100 par and hasn't really lost the peg. So listen, will it? I have no idea. As I've said, these are equities. Fouly said the same thing. They can trade well below par for quite a while. And I think maybe the other thing you can consider here is assuming you believe STRC will trade back to $100 power, you're now getting it at a 7 8 9 percent discount on top of the yield.
So that may actually uh, you know, incentivize people to do this. But the mechanics of this product is that they will raise the yield when it goes below par and that will incentivize people to buy it. Most likely that will happen. Now, uh, got a pretty interesting story here from Standard Charter, who says Uni, UNI, that's Uniswap token, could hit $100 as Wall Street moves on chain. So this is not a sentence that I thought I would have said
uh two years ago. There's a 170-year-old British Bank initiating coverage on decentralized exchange and saying that it will outpour perform Bitcoin and Ethereum through 2030. They they put $100 target like I said, that's basically a 40X from where they made the call at $2.50. Obviously the market has uh seen that the token trading above $3 uh but still down, down, bad, bad, bad over time. I think even still down on the month.
But the real story here is that we're seeing uh narrative rotation back to Dfy, which has been the beatdown, you know, ugly red-headed stepchild of crypto ever since we've had all of the hacks. Their argument, which makes sense by the way, it makes sense conceptually. I don't think the valuation that they're assigning to it does. But they're basically sever projecting that there'll be 2.7 trillion locked in Dfy in real world assets by 2030 and therefore that's, you know, a 37X
so the token will do a 37X. That's kind of the general math that they did. I don't the standard charter has a long history of hyperbolic, extreme, insane, I will almost say predictions. So I wouldn't take that, but I think what you can take at face value is the fact that the Dfy narrative and a lot of crypto native narratives where there is actual utility and a way to value things are compelling and could do exceptionally well. So when you have a Wall Street giant starting to talk about decentralized finance,
it might be time to once again start at least paying attention. Now, here's the next story that I mentioned at the top of the show, Illinois becomes the first state to tax crypto by the transaction. So Illinois governor Pritzker just signed the most punitive digital asset tax in the country into law. This will create an unprecedented tax regime that disproportionately burdens Illinois residents for simply using digital assets will drive innovation and builders out of the state. So they're going to charge you 0.2%
on crypto transactions, even it's from your own wallet to your own wallet. That's literally like charging you to walk from the living room to the kitchen. Right? So we uh got an image that we think uh captures what Priker is doing here. Oh, I was pointing but I have to actually change it. There it is. New taxes on crypto, your money, you know this meme, we, the crypto investors, we get the little drops and big old Priker over there, sucking up your money.
Right? So listen, it's absolutely insane that you would pay a fee to move money from your own wallet to your own wallet, but listen, we also pay like $4 to get our own money out of an ATM. But I think what's interesting here is this is not just a crypto story if we're being intellectually honest. If you read the whole bill, the same budget taxes digital assets, digital ads, social media and prediction markets. So, I think that this is actually a broke state that's taxing everything with a screen attached.
And crypto is sort of just caught up in the net of it. But listen, this is law. It did not get vetoed. There's no line item being uh restricted there. This is actually happening and it is absolutely insane. Now, we got there to my favorite segment on the show that you guys have seen before. We've got how not to invest.
How not to invest. How not to invest. Yes. Yes, that's spectacular. We chose that one. We added the explosion that I told you we were going to get. Fireworks. How not to invest? So I've got two little stories here. The first one uh is how not to invest adjacent. I want to show you a chart real quick.
This is Sandisk Corporation. You can look at that thing. It's gone nothing but straight up. But down at the bottom, you can see RSI, it's a little line there on the monthly RSI 99.9 out of 100, the most historically overbought stock in the history of markets. And it's still going up. Absolutely incredible. This does not mean that it has to go down, but in a world of FOMO and insanity, this is the most FOMO and insane asset that's ever been traded.
Now it could continue up, but there will be a massive reckoning for buyers of Sanx and there are still a lot of them right now. Just a cautionary tale, I wanted to show you the most overbought chart in history. But here's the real guy I want to get into. Threw my entire Roth IRA $315,000 into SpaceX at $211. So your IRA, uh this kind of hearkens back to the Korea story that I've told you about a few times where people yolo in at the top to the biggest hype narrative with their insurance
and savings. Your IRA is supposed to be your long-term investments for retirement and we have people going all in on SpaceX at what were effectively the highs at the moment with their entire retirement. Now, I want to just tell you guys something. For those who don't realize, SpaceX right now is trading on a roughly 4% float. 96% of the shares have not been released and will be released on a vesting schedule. What's even crazier, that means that everyone who's in the market bought at $135 or higher.
Right? So that means that anyone who would sell right now is deciding whether to close a day trade that they started basically just last week. All of the inside investors invested at many multiples lower. The first round was at a billion dollar valuation. 1 billion dollars. These people are up thousands of X. even the seventh uh even the second round I believe, they raised at a 77 to 81 valuation, which means that right now you are trading only 4% of the shares of SpaceX and only the ones that were bought 135
or higher, and none of the ones that early insiders will be dumping the second that they vest starting after July earnings and through December when the full float comes to the market. This is absolute insanity. Nothing against SpaceX, big fan of Elon Musk, but you are not trading the full valuation of SpaceX, you're trading the 4% that people bought out of complete FOMO. That is everything that we have for you today.
We'll be keeping our eyes obviously on Warsh and the Fed, but I have a feeling it won't even be a real story by tomorrow. I will see you tomorrow and we will find out. Thanks for watching. Peace.