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Aug. 2, 2017 - Clif High
30:41
clif interviews Reggie Middleton -part 2....
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Uh let's see, are we recording?
Yeah, okay.
So it says we we have restarted.
Hopefully I won't have to do much in the way of editing, but I'll smush these together.
So we were on to the idea of uh renting coins, and my idea was a couple of guys sitting around in a pub, one of whom happens to have a very token and comes up with an idea for a contract to go in out and purchase other assets using the smart contract.
And so he and a bunch of friends want to go together, they provide the background liquidity pool there at the pub.
He walks off with their cash, he goes and buys the coins uh or whatever, and comes back and makes the um distribution later on, and in that sense they've rented his very token because they were using his access to the smart contract that way.
But there are other ways to rent them, I'm sure.
Yeah, yeah, the way we do it is um we go the pure economic model, which is economic rent, which is basically um it works on not necessarily scarcity, but uh I guess scarcity along certain lines.
Uh economic rent basically means to receive uh more value than is the fundamental value of the uh object that you are receiving, okay?
Um that you're selling.
So uh the example I give is an accountant, uh, an accountant that makes a hundred thousand dollars a year, which is decent salary in most parts of the country.
Um that's what it takes for him to get his butt out of bed and go to work.
Um that is part labor cost um for him.
Now, another company comes along and wants to take over business from the company he works with, so company AB comes and tries to take this for company A, and they know that this accountant um has specific information that would benefit them in this market acquisition.
So they offer him 150,000 per year.
He jumps on board.
The $50,000 difference between 150 and 100 is an economic rent.
Okay, that that company paid.
With Veritasium, you have um uh company that comes in, let's say a big company, BlackRock comes in, and they say there's this uh office park available in uh the Bahamas.
Uh probably not too many office parks in the Bahamas somewhere else.
Uh let's say uh Toronto, Canada, okay, and it's available um through a Veritasium uh platform, and the guy says, I'm looking to do business, they want to buy these specialized Veritis tokens for this office park, but they don't have enough Veritas to access the contract.
So they have to go and rent a Veritas from somebody else because say they it's not available anywhere else, they can't purchase it directly from us for whatever reason.
So enterprising Veritas holders can now entertain a contract where they pledge their verites, okay, or economically rent their verites to the um contract, which means that they don't get it back, but they're open to create whatever terms, whatever terms you want for the deal.
So they say if it takes one to 100 um veritas to enter this deal and it deals for a hundred million dollars, that means there's a hundred million uh tokens.
Okay, that means one you need one million tokens to enter in the contract.
These guys say I will give you the one million tokens, which is one percent of the deal, but we want three and a half percent of the um payout of the PL.
Okay.
Now, if the deal fails, you get nothing.
If the deal goes as um as anticipated, these guys now made a 350% gain on the uh monies that they put out.
Or is that 450%?
They get a three and a half times what they put in.
Okay.
This is a capital gain style transaction.
Economic rent.
Now, on the other side, we're also offering contract rent.
Um, from a programming programmatic.
That is going to um come out maybe a few weeks later.
Uh hopefully not a month, but a few weeks later, then economic rent, because there are a couple of things we need to deal with.
But with the contract rent, this is much more of the accounting layman's uh perspective of rent where you lease a property out and you get paid um either periodic income back or an amount of sum that is larger than what you uh lease it out for which is basically implied interest.
Now I don't want to stop I'm gonna stop with the um jargon because sometimes I get you know lost in the weeds.
Sure, sure.
But basically, you're talking about being able to use Veritasium at the end user's creativity constraint to craft passive income contracts.
Right.
And, you know, here collateral comes into play because you need to have a financial incentive for the renter to return the tokens.
Okay.
If for whatever reason they choose not to return the tokens, they lose their collateral.
Now, the rent, the rentee, okay, can craft the contract anywhere they want in terms of filling up parameters.
You can request the cost of the rent.
You can demand the cost of the rent and change that.
You could demand a change in the amount of collateral.
So it's up to you in terms of your risk and reward perspective requirements to create the contract anywhere you want.
So you can have a large amount of collateral needed or charge a high price, et cetera.
That is much more of an income style transaction.
So depending on how you want to go into the deal, a rentee you could go for a capital gain style or you can go for income yield style um this allows you to have a productive use of Verites or you could just hold on to it or you can use it for its primary purpose which is a utility and you can use it to build things of value.
The rental contracts are the segue into our financial machines.
We call them VADERS, V-E-A-D-I-R, basically veritism, autonomous, direct.
I forgot all that.
Gotcha, right.
They sound scary, though.
But basically, these financial machines are autonomous smart contracts that go and purchase other digital assets.
Okay, and they purchase other digital assets in an attempt to create as much value as possible.
These financial machines, they consume our proprietary research and potentially research of others if we feel the past is muster.
It does it so anonymously, and it then either pulls the trigger on an asset purchase or does not.
Okay, now that's the output of the financial machine.
On the input side are those who want to partake in sharing in the purchase of these digital assets.
Okay, so you will put your financial capital in, but in order to gain entrance, you need, of course, Veritas tokens.
Right.
Okay, so with these financial machines, you know, smaller players can get in, but bigger players also want to get in as well.
Because they want to do things like buy and sell distressed credits in Greece or Portugal or office parks in Chicago or mortgage-backed securities or you name it's a limit.
Pure digital assets, physical assets, et cetera.
You know, the sky's the limit.
These are self-contained value transaction vehicles.
These vehicles will actually trade because now, in part because we can't get conventional exchanges to accept our token for whatever reason, despite the fact we're number one for a while, fastest growth, et cetera.
We are building our own digital exchanges in partnership with larger partners.
On these digital asset exchanges, you have these vehicles, financial machines, and various tokens and sub-tokens trading freely.
So you'd be able to buy and sell venture capital startup tokens.
You'd be able to buy and sell distressed asset tokens.
You'd be able to buy and sell, you know, digital asset tokens.
Okay, let me intrude there and sketch it out so people get an idea.
Here's a really goofy idea.
So I've got my friend Jacques in Spain.
He finds an ancient boat that's got, you know, a sunken galleon kind of thing that's got all kinds of stuff in it.
Wine and, you know, old Roman coins and this sort of thing.
But he needs the capital to do this treasure hunt.
So he could set up a contract itself and give limited shares based on what he thought would get in there, minus the government and all of this.
Work out all the math.
And then so Jacques'treasure hunt contract, basically, would be tokenized and could therefore be traded.
And the value of people, people could speculate.
Well, he'll get it all and he'll make this amount and I'll get this share.
Or maybe he won't, so I'll share it so much.
mine now and get what I can out of it, and it'll be based entirely on their emotional perception of how Jacques is doing.
So basically what you're talking about is being able to tokenize performance to the point where the tokens themselves can be sold thereafter.
Right.
And the partners that I'm discussing, um, one is the Jamaica Stock Exchange.
This is one side of the spectrum.
Um very small exchange, but very entrepreneurial.
Actually, they deal with us that shows they you know are willing to actually you know go a step above and beyond, and they were the best performing exchange worldwide in 2015 on top of it.
Um they are Caribbean state or the Adam style in a Caribbean country.
Think about the potential of a digital assets exchange such as this going through Jamaica.
Let's just assume hypothetically, um Reggie and Al convinces them to eliminate taxation, all taxation of foreign capital going into the country of Jamaica for the purposes of trading on this exchange.
Now you have an offshore captive style like Grand Cayman or Bermuda, but for digital assets and digital assets available worldwide.
Think about the amount of capital that will flood into Jamaica.
Think about the amount of assets that will be available.
A phenomenal change in the way things are done.
Another partner that we um haven't signed the, you know, we haven't signed the actual contract yet, but they're very excited.
We're very excited.
We are well on to multiple meetings with the very, very top.
This is one of the top ten exchanges in the world.
Several trillion dollars.
Okay, over one trillion, so you know it's not one of them.
Several trillion dollars.
They have, you know, basically uh an implicit okay from the regular regulatory authorities to sandbox the activity, and we can get going almost immediately once we come to terms.
Now you can trade this JUTS um assuming that you know it passes most of the analysts, you know, we create a token, we decided we will actually tokenize it and list it.
Now you could trade JOC's um treasure discovery hunt via ticker right next to Facebook and Google on the screen.
Basically uh, you know, worldwide and backed by uh actually not even backed by, but owned in part and can controlled by one of the largest exchanges in the world, several trillion dollars worth of activity.
Now, when I explain what we were doing, and I'm not gonna give names yet because I'm not disrespecting my partners, they'll never do business with me again, of course.
But now you see at what level that we're working on, and now you see why I think it's trivial when you're having a discussion about something like a white paper.
I know it annoys the crap out of me.
It does with me too.
I answer the same question over and over.
And things like access to source code.
You know, after a while, you know, it does hurt me as well.
So maybe I need to just you know desensitize myself.
But you understand what level verification is looking at um work on, and we're willing to partner with many exchanges.
Um we don't compete with exchanges, we actually accent the ability of exchanges.
But from the cryptocurrency land, we're forced to compete with you if you don't do business with us because you know we will want liquidity just like everybody else.
Um, and so now we'll force into the exchange business, unfortunately.
But since we're doing this and we have these powerful partners, we will list um all digital assets and we will expand the universe of digital assets past simple platform tokens, past simple um cryptographic style entity tokens into the entire world.
So the entire world, if we have our way, we'll trade through Veritation tokens.
Extremely efficiency with extremely low cost, low friction, maximum transparency, zero counterparty risk, zero credit risk.
You're looking to go.
Well, just uh coincidentally with that.
I mean, way back when, uh, when I was doing these crypto reports off of my data sets, uh Veritasium pops up because of course the Latin, right?
You can't um way at them, uh, you can't really get away from it.
And so the um uh the ability to highlight it and track it through my data sets was pretty good, and we've crossed a couple couple of temporal markers that I don't really uh mind at all telling people are out there.
Uh there was one in which I had uh I don't know if I spoke about it in that first report where I mentioned Veritasium or not, where you guys would have a bit of a um a hiccup in the get-along, uh and that has passed us uh with the uh recent um um uh uh fiddle farting around from uh whoever and the and the tokens and it met all the linguistics and so now we're on to this uh big uh push that in our data sets is a pretty good um arc in terms of performance and
in the price of the you know US dollar terms uh of the tokens uh through to the extent of the short term data which is about mid next year so it's kinda like well you you've got this um hurdle behind you and now it's a little bit more smooth sailing for you in the future uh there's one other thing I needed to go back to just to be absolutely certain we've killed this bugger and that is all of the um the the issue with the shares now I understand we're not talking or not shares excuse me the the coins that are the nonsecurities that are remained unsold.
I understand we're not talking a business model like the network providers, so to speak, and their business model of growing.
And so, but a lot of the small purchasers of Veritasium are concerned because they think, oh, well, it's a pump and dump or all these could be dumped in and flood the market because they're thinking about it inappropriately.
They think that such a thing would be used to manipulate a captive market.
but your purpose well a as I understand it you didn't have the um market take up that you expected so you've isolated the others uh that weren't sold the other uh tokens that weren't sold and you intend to feed them out as business builds and you know by the time you're you're doing stuff on the you know the Mars commodity exchange maybe you will have burned up those that you've got now but but basically it's not any form of a oh I'm gonna wait until it gets to this price and then dump them on the market sort of a thing.
Not in your interest at all, correct?
Well let me address I'll try and put this to bed.
I'm gonna start at a very basic level and I'm gonna offend a lot of people and this might not be the best thing to say from a public relations perspective but everybody knows that I'm honest.
Okay I'm a capitalist I'm in here to create value.
So if that's a problem for anybody this is not the venture for you.
Simple as that.
Okay I put 51% of tokens up for sale initially just under two million we're taking we don't believe in burning tokens.
It's like burning money or burning inventory.
No company right mind would burn inventory unless inventory is no longer valuable.
We took the tokens back in inventory okay and we're gonna do the same thing we would have done in ICO which is why we limit it to 51% sale.
We're gonna sell the tokens the tokens are our product don't confuse the tokens with stocks or securities.
That's not what they are.
Now we take a pool of stocks they have to share um you take a collection of stocks these stocks share a common pool of earnings hence the more stats that you have the less earnings each stock gets okay and that's called dilution.
Their earnings share is diluted.
The less stocks that you have, the greater the share each stock gets.
That's called an increase.
Now, a lot of, not a lot, I'm not saying a few, a lot of ICOs are playing a creative dilutive game by purposely looking to limit the availability of the tokens.
Hence, increasing the perceived value, but actually just increasing the price temporarily of the tokens.
We don't play that game.
We're purely value driven.
Okay.
But with that being said, you know, we're out to sell.
The more tokens we get.
we sell to the right customers the more valuable each and every token holder becomes from their verites token and the utility value in it.
Think in the network of fair okay number one.
Number two, if you don't sell all of them and we execute and building value into the tokens then still the more valuable each token holder becomes because of the increase in utility value because you can do more things with it.
But looking at this from uh stock perspective or some type of security perspective, you know you miss the entire boat outside of being wrong, right?
You don't understand the value proposition of Veritis, so you never be able to uh make best use of it.
It's my assertion right that the utility value of Verites is more valuable will be greater than the capital appreciation value of Veritis.
That's saying a lot because we launched Verites priced at one dollar on April twenty fifth, which is my father's birthday um due to the ether peg we price it in ether um officially instead of US dollars, but I priced it at US.
I chose the ether price to make it one US dollar as it crept up.
The initial sales came out at a dollar thirty-three.
I think it's trading at just under 200 now.
Maybe like one ninety, something one eighty from a dollar thirty-three to a hundred and eighty is well over a hundred times in just two months.
Okay.
So you would think that that is a very strong return.
That is nothing compared to utility value of her taxium where you get to literally change capital markets in itself to make to go from a hub and spoke model, central bank, money center banks, um national banks, regional banks, and then mom and pop stores.
Okay, you change that model, rip it up, and go to pure peer-to-peer um capital markets where you have untold amounts of value unleashed.
Now, that might seem pie in the sky to many, and that 100, 130 times return in a couple of months may seem more tangible, but um take it from the guy that engineered this token and engineered it from a financial engineer's perspective and not from a computer engineer's perspective.
We're just scraping the surface, simply scraping the surface.
It's the utility value that you go for 100%.
If you don't understand utility value, take in more, ask a lot of questions.
I love to talk, so I'll, you know, sure and fill you as much as possible.
I just don't respond well to someone trying to cast its versions from a position of aliens versus simply asking.
I don't get it.
How does this work?
Right.
I I understand, and and uh unfortunately we're right at that point in our um uh shift into the new uh sci-fi world where the language is also intruding because people naturally have been trained to think in terms of share markets, IPOs, etc.
ICOs are an entirely different critter entirely, and we're in it into a uh situation where, well, even the idea of smart contracts.
Um I'm reviewing all of these uh ICOs that are coming on out, and I keep running into this continual thing repeatedly, it doesn't matter what language, what country.
Oh, oh hey, we're gonna have an ICO, we're gonna have legally enforceable smart contracts.
And as soon as I read that in the first part of their abstract, I throw it away and go on to the next one.
There's absolutely no point in the software world where the contract is executed by the software to involve lawyers and smart contracts by their nature disintermediate lawyers instantly, which is probably why Veritasium is so valuable.
You got rid of that entire layer, and so universe said, well, you've got to be at worth at least this much, uh, simply because there's no lawyers involved in the damn contract.
But we are and we also have to acknowledge that you know there are people that see these things as the capital appreciation.
So for instance, you know, um uh kudos to Veritassium because uh my buddy uh Joe J Snip Ford was able to buy a house on the capital appreciation from Veritasium within a month.
And he's rather staggered uh by this, as are a lot of people that had that uh capital appreciation.
Now I'm really thrilled about the idea of the using of the very tokens, and I can see where their price in US dollars or Ethereum might be absolutely immaterial to uh those people that are gonna need them for specific market uh actions later on.
They won't care what it costs because not having them will cost them a whole future of business as opposed to a little tiny bit of money.
And you know, that's that's really it's utility.
Right.
And I and I like to say once again, I've been preaching and espousing from the very beginning.
You know, we're not selling securities.
You see the SCC is now coming to the forefront.
Um, I don't know what they're gonna do, but I try to make it very clear we're selling utility software with advisory and consulting on top of it.
Um believe it or not now, which is you you'd think it'd be easier to convince retail user versus a corporate user, but the institutional user um gets it.
They really, really get it.
You know, the last few meetings I had, you know, I sat down and you know the discussion started with I have no idea why we would discuss Bitcoin when I'm the senior partner of distress credits of XYZ fund, you know, with 24 billion dollars in assets, etc.
That's how the conversation began.
You know, an hour later and having an hour conversation or two and a half hour conversation with these guys is a fee and of itself because usually after 10-15 minutes they say you have to go an hour later, they're in total fascination because now they understand what the true power and utility of this technology is.
Throughout the vast majority of most of these meetings, we don't discuss the actual tech from a technical perspective.
Um the big meeting with the big exchange.
We glance over it once.
He said, Notice I didn't even ask you about the tech.
As I was getting up out of my seat and walking out, we had a technical discussion on the nitty-gritty.
Okay.
It is very, very important for anybody who wants to really benefit from Veritasium to understand the utility value.
Capital appreciation is a byproduct of the utility value.
And like I said, I I'm not gonna lie, you know, if I got a hundred, I can't do the math.
But let's see at one eighty.
If I had a hundred and fifty times return in two months, I may be um focusing more on the optics versus the actual mechanics.
But that's not the way to do it.
And when you do it, it also tends to cause you to think of this as something that is not a i.e.
an investment.
You know, it's an investment in utilitarian future and capability, not a financial investment.
Sure, in a sense, it's like being able to buy a um uh uh portable generator for five dollars now, uh six months ahead of the winter when you you wouldn't be able to get it off the shelf after the power is gone no matter what, because their cash registers wouldn't even work.
Right.
And and someone who knew that this winter was coming, you know, think of uh um winter is coming with Steam in the show again, Game of Thrones, right?
Someone who knows winter is coming can go and they can buy that generator from you for five hundred dollars.
And you say, wow, this guy's a sucker.
He's gonna give me five hundred dollars for a five dollar generator.
You read a 100 times return, right?
You're very happy because you think of it in terms of you know financial speculation.
When winter kids here, okay, your family starts to go wayside, your health fails, you fear death.
Now you realize the utility value of that generator, and it was worth more than five, considering more worth more than five hundred, consuming more worth in five thousand.
So one thousand times return still pales to the utility value of the generator.
I'm asking everybody, look at the utility value.
Exactly.
And uh just uh one more quick thing on that.
Uh my my grandfather prior to uh World War II started hoarding tires in his garage, he saw it coming, and he knew rubber would be affected.
He's out here on the Pacific Coast.
And so by the time the uh rubber prohibitions and everything and the restrictions came into place, he had a uh whole garage filled with tires of all kinds, which he sold out over time and made uh a a lot of money and was not particularly a gouger about it or anything, but he you know, he profited on his foresight.
But then he he was I remember him telling me, you know, he said uh that when he had about a third of those tires left, he stopped selling those things because they started to be real useful as his own tires ran out.
And I see that coming, and that's when the holding effect comes into play.
Uh that's why Verites would never really be a currency, even if it was never a spouse as a currency in the first place, and there was no correlation.
But um, for those who like that term digital currency, which I don't like, I think it turns more of a digital commodity, that's more of a fitting of Bitcoin, Ethereum, etc.
But um, you know, when you have um the anticipation of true utility and use, utility utilitarian value and the potential for um deflationary high gains, you know, the term itself is nonsensical.
So uh I would like for everybody, unless you're using an actual currency app, and there are those that can serve as a currency dash is a perfect example, you know, very, very well done.
But um, unless it's an actual currency app, you know, it's called for what it is, it's change the nomenclature, you know, it helps the beginners and newbies coming in, and it also helps deal with regulators as well.
It's a very good thing to take control of the language.
I certainly agree with you.
And you, you know, it's it's kind of a pain in the butt to stop and censor yourself all the time.
Uh uh, but it's worth it in the end, certainly is.
I'll I'll um sort of wind down now unless there's something we've covered all the major questions that I had.
Um unless there's something else you really uh want to bring up and go into.
I don't want to keep you tied up here for days because we could go on and BS about all kinds of cool stuff about Veritassium, because I've thought about it a great deal.
And it has been in my data for a number of uh months ahead of your guys' uh launch.
I didn't know what I was looking at, though.
My data comes to me in a form that's a fuzzy set theory, and it goes to this emotional reduction engine thing I wrote.
And so I'm seeing it all as emotive values.
And so I was seeing all these hot emotive values around Latin language.
And, you know, it could have been, I don't know, some super-duper movie or something that everybody was going to get whipped up about, something like that.
But it ended up turning out to be in the crypto space and was Veritasium, which was really cool.
I kind of thought that was just really neat.
But at this, just for Bix, you guys are, no, I can't ask that.
Sorry, that'd be unfair.
I guess that's it for me on terms of my questions.
Yeah, I'd like to just say, well, thank you for having me on.
I think you're a very intelligent guy.
You know, Biff is smart in case anybody who's watching this video has a doubt.
He's a bright guy.
And I'd also like to say thank you to the Veritasium community.
They've been very supportive.
They've helped me with a lot of things.
The hacking incident that we had, they've been very supportive.
That's actually very irritating or past irritating for us.
if you look at it from a you know macro perspective, it's a small blip in the world in a row because you see what we're dealing with.
But I want to say just thank you for the supporting community.
I want to say thank you for our prospective clients.
There's uh um that blip is not going to be the last by any, you know, but in any case, it's going to guarantee to be many more blips in the world and in the road because with successes come no trip-ups.
And uh there's a large um prominent magazine preparing to do a hit piece on us, basically.
And um, you know, I don't want to go into details, but I don't believe they're being accurate or ethical at all.
We'll do with that coming in.
But but they called a lot of our clients and partners, and um I was concerned, especially with the language that was used.
And our clients have been very, very supportive.
You know, basically they said forget them, Reg, you know, put your middle finger up to everybody and let's keep on.
We have your back.
You know, a community like this, uh like that potential and actual clients like that is what makes something like Veritazium possible.
So thank you to all prospective natural clients, and thank you very much to the veritation community.
Now I love you all, and you know, you keep us going.
Okay.
Very cool, yeah.
and you know like I say let's everybody take control of the language and when the crap comes out fling it back at them man it's all this stuff you know It's purposeful um obscuring of the truth to try and give a loud voice to a very small and inaccurate minority is how the all this nonsense gets started.
So you know, just also l let me uh just come from my conspiracy perspective because as the CIA says, paranoia works.
And um it is true that when you disintermediate very large industries, there will be those people that decide they wish to play unfair in order to protect their turf.
And uh, we can't say that you're running up against it now, but we can certainly say that it is within the realm of probability, and I would could even put uh potential in there.
So we know it's happening in the other ICO world, and I suspect that a lot of that um mainstream um uh language uh memory uh is deliberate and on someone else's agenda because those people are too stupid to do anything on their own.
Well, if that's the case, then expect a lot of dirt to be flung because we're just intermediate and we're going full forward.
So, you know, if that's the cause of it, get used to it.
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