We've been able to trade crypto 24/7 365

for years and that trend is coming to

every single market, every single asset

all around the world. We're going to

tell you about that and more on the

Daily Wolf today. 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. I hope that you're

all having a wonderful Tuesday because I

have some bad news for you if you are a

customer of BitMart. Don't want to ruin

your day, but BitMart becomes latest

crypto exchange to shut down. So, that's

not the big story. We already had

reported on that alongside the failures

of Ascendex and BitMX. And look, look at

that handsome guy that was in that

article. Who was that? Uh yeah, we have

BitMart shutting down. Like I said, the

story though is that customers can't

seem to get their funds off of the

platform. Tale as old as time. This

reminds us of that 22 cycle when a

number of platforms shut down, declared

bankruptcy, and user funds were stuck.

Now, users are reporting that their

withdrawals are blocked. One guy said,

"Where's my $10 million?" Imagine that

you had $10 million on BitMart and he

can't get it off. But what happened here

was a Chinese account officially from

BitMart tweeted also that employees had

been unpaid and that there were

financial problems. Then the tweet was

removed and the founder Sheldon Lee said

that those allegations were false and

that they had been hacked. Now, if

there's one thing we know in crypto is

that often when there is smoke, there is

fire. We all have PTSD from the past

cycles. As I've talked about just

before, we've many of us who are here

have suffered losses from these very

exact situations. And unfortunately now,

as we're reporting on it, it is probably

too late for customers to get their

funds off of this exchange. But I would

imagine that there is some sort of

issue. Sheldon Lee, the uh founder, I

don't want to get in any legal trouble

here, but he seems to be deflecting.

Seems to be deflecting. not answering

questions about why they're not uh doing

withdrawals, just making excuses about

hacked Twitter accounts. And I would

imagine that customers right now are a

lot less worried about who hacked

BitMart's Twitter account than who

locked their actual accounts. I'm hoping

that we will get some clarity on this

that uh maybe they're just in slow

motion and that users will get their

funds back, but I'm not particularly

optimistic. This exchange, by the way,

officially will shut down on August 26.

Uh these are bare market things in

crypto. We've been here before. I hoped

we wouldn't be here again, but uh it

seems that humans are going to human and

repeat the exact same cycles from

before. But here's an exchange with

amazing purple branding that is doing

exceptionally well. Kraken. Kraken

announcing USlisted stock trading for EA

customers. Okay, so we've talked about

the trend of 24/7 365 access to every

asset all over the world. Well, we are

getting a lot of exchanges competing to

be the everything app at the center of

that very trend. So, what's happening

here? Kraken launched more than 7,000

USlisted stocks for eligible European

customers. Why not Americans? We

literally hate fun here. We don't even

get any of the good products from our

own companies, right? But users here can

hold traditional shares alongside 700

plus tokenized stocks and 800 plus

crypto assets. Now, interestingly, these

tokenized shares are backed one for one.

There are a lot of different kinds of

tokenized stocks we've talked about.

Some you actually get the voting rights

and all the value of being a

shareholder. Some are just derivatives

where you're basically betting on price

action. These are backed one for one and

they're transferable to self-custody and

tradable beyond normal market hours.

We're going to talk about that a little

bit more in the future, but

interestingly, even if the stock market

is closed, you can trade these tokenized

stocks on Kraken outside of those hours.

So what we're seeing here is that Kraken

is no longer really a crypto exchange.

They're becoming a global multi-asset

brokerage and that is a trend that we've

seen. So we're basically seeing this

converge on two sides. You have the

Krakens, the OKXs, the Coinbases, the

Binances, the originally cryptonnative

exchanges that are slowly moving in to

tradi. And of course tokenization is

helping them to accelerate that trend.

Then you have maybe in the middle we can

say like a Robin Hood right who was

already offering uh traditional stocks.

That's how they started. They got into

crypto early and they're trying to

become an everything app. And then on

the other side you have the Morgan

Stanley's and the Charles Schwabs who

we've reported on slowly adding crypto

exposure for their customers. There was

a story today literally we didn't get to

that City Bank is now adding custody for

crypto assets. They've they've announced

that. But we talked about the fact that

you can buy crypto on Schwab recently on

Erade which is Morgan Stanley. They've

added Bitcoin, Ethereum and Salana Spot

Trading their own ETFs. We see where the

puck is moving here and everybody

converging in the middle to blur the

lines between what is a crypto exchange,

what is a traditional exchange and what

is in the middle. And the fact is you

will be able to eventually trade

everything 24/7 365. We will get into

that in a bit. But uh you know Kraken's

asset allocation strategy apparently now

is all of them right give you access to

everything all of the time and I am

absolutely

here for it. Now someone who doesn't

want you to have access to everything

all the time just select things is the

United States Treasury and the US

Treasury Department proposes Genius Act

stablecoin rule. The Treasury proposal

would establish some of the core

definitions and jurisdictions in the law

Congress completed last year. So the law

is already the law, but we need cops on

the beat as Gary Gendler used to say to

actually make these laws a reality on

the ground. So Treasury here is

proposing the market access rule for the

Genius Act beginning in 2027. Companies

will generally need federal or approved

state authorization to issue stable

coins in America. It's going to be

determined on a certain threshold. If

you're under a certain amount of

billions, it's either 10 50. Under that

threshold, you can be regulated by the

state. Above that, you will have to go

to the United States government. And by

July 2028, US exchanges generally can

offer only stable coins issued by

approved domestic or qualifying foreign

issuers. Right? So, we have a long time

to see how this plays out, but it's very

clear to see how it is playing out as

you see who is starting to get

conditional approvers approvals for OC

bank charters, which platforms and and

stable coins are already being offered

to United States customers. And

interestingly, the Coinbases and Robin

Hoods and OKXs of the world that I

talked about before, they're going to

actually have to be the ones who enforce

this in 2028 by dellisting the stable

coins that are not deemed compliant. So

listen, stable coins like USDC, the

Paxos issued coins, all of these are

going to be compliant, no question. I

think right in the middle maybe is a

USD1, the Trumpbacked stable coin from

World Liberty Financial. Clearly they're

moving in the right direction. The

elephant in the room is what happens

with Tether USDT by many, many

multiples. The largest stable coin in

the world, used every day by people all

over the globe. Already

more difficult to use in the United

States and other places. Now, they've

gotten ahead of this by a partnership

with USAT uh with Anchorage with

Anchorage, excuse me, to launch USAT,

which is a United States Genius

compliant stable coin. They have Bohines

uh running that who used to be in the

White House, right? So, they have a

plan. The question is, will you actually

have a story of two stable coins from

Tether or will USDT find a way by that

time to become compliant in the United

States, which uh there are number of

ways I'm assuming that they're going to

try to do that. I'm having a

conversation with the CEO of Tether

Palardo we know next week and I will ask

him that very question but it's good to

see some progress in actually

establishing these rules from the Genius

Act since we all know the Clarity Act

ain't happening and we got to take what

we can get. Okay, next story up it and

Bit Thumb report 50% declines in H1

revenue reflecting market contraction.

So true story. I thought this Korean

exchange was called bit thumb for years

and then I was on a call with an

executive and I believe I heard him call

it bitum like you're humming not like

biting a thumb bit

right and then I started calling it by

thumb just to mess with them when has

two thumbs and calls your exchange the

wrong name this guy by thumb by thumb

but either way we have a massive

contraption here up bit uh their first

half revenue dropped 49.1% versus last

year while operating Marketing profit

fell nearly 80%. Bit Hum revenue fell

48.7% and swung to a roughly 77 million

loss. If you know anything about South

Koreans from watching this show is that

they're massive degenerates. They gamble

on anything. It is a herculean effort to

lose money on crypto trading in South

Korea. So why is this happening? I think

we have two answers to that question.

Number one, I think very obviously

crypto's down bad, right? We've seen the

same trend with earnings reports from

Gemini and Coinbase and Robin Hood and

everyone in the United States. Crypto

revenues are down at least 50%. There's

not that much interest. There's not that

much volume. Therefore, it's hard to

make money. But the Koreans never seem

to care about that. These guys were uh,

you know, flipping daily volumes of

American exchanges very regularly, even

at the depths of bare markets in the

past. So, I think the second story,

which anecdotally we've seen in the

United States and everywhere in the

world, is that the hot ball of money is

just not in crypto. You'll remember my

amazing segment from How Not to Invest

where I told you about the fact that

even Korean retirees were selling their

investments and their insurance and

their savings to yolo into SKH Highix

and Samsung leverage ETFs at the top of

the AI bubble. And what naturally

happened after that? They they got

liquidated, right? The Cosby had a

circuit breaker down like seven, eight

times days and days in a row. Well, I

think that this money that used to be in

crypto in South Korea move to greener,

hotter past pastures like the AI trade

with leverage. Not a big surprise that

we're seeing this in South Korea, but it

does show you just how bad it actually

must be if they are also suffering. I

mean, like I said, Korean exchanges are

just generally historically printing

money.

Oh well, what are you going to do? Bare

market things once again. It will

inevitably come back when we see another

bull market. Now, back to the 247 365

story. I should have done these in a

different order. Should have put this

one out there. NASDAQ confirms 23-hour

trading from December with new overnight

session. Sucks for you hedge fund

losers, doesn't it?

You're going to have to stay up really

late at night and try to figure out how

to have a job that has more than seven

hours a day. Now, this is crazy, right?

NASDAQ targeting December 6 for 23-hour,

5 days a week. Partially there, but we

will go to 24/7, 365. As I told you, on

all these platforms, you'll be able to

trade stocks, crypto, preIPO, Anthropic,

Pokemon card, your Charizard, your kids

lunch money, all of it in one place,

24/7 365. NASDAQ realizes that. And this

is an innovation that you can thank

crypto for, right? Crypto Dens, we're

the ones who gave the world 24/7 365

markets. You're welcome, by the way.

Coming to every single market. And when

the NASDAQ makes an announcement that

they're actually going to do this, you

know that the trend is real and

eventually you will be able to trade

everything on leverage prediction

markets all of it all of the time. And

now for everybody's favorite segment of

the show. It's how not to invest. Hit

it.

>> Not [music]

inst.

>> So good. Love that. Love that. And I

know that you love that. So today's how

not to invest is to use an active fund

manager. Here you go from Cali. Just in

nearly 75% of active fund managers

failed to beat the S&P 500 over the last

12 months. Now I actually have a video

here of financial adviserss putting your

money in an index fund for you. Here

they are.

This is a rolling sound

train.

He's working harder. He's working hard.

You see how he pushed the train at the

end? Train had no chance. This is, you

know, this guy's getting paid a salary

just like your financial advisor is

getting paid a salary to lose you money.

So here's the stat. By the way, I have

to give credit. That was from a an

account called documenting sailor on X.

That joke I was just dying and had to

share it. So only 27% of actively

managed US large cap funds beat their

passive benchmark over the past 12

months. That means 73% underperformed.

Over the past decade, the average

success rate was approximately 13%.

So identifying the rare winning manager

beforehand remains the nearly impossible

part. 13%.

87% of the time you would have been

better off passively buying an index and

doing literally nothing than giving

somebody a fee to actively manage your

portfolio. I think it's the same in

crypto. You just buy Bitcoin. That's

basically the S&P and you don't try to

beat Bitcoin because it is nearly

impossible. But this is a cautionary

tale for everybody. You don't need to be

a genius and invest. You don't need to

time the market. You just need time in

the market. You could just buy the S&P,

passively invest. You could do it with

dollar cost averaging and go about your

life without paying a financial adviser.

I believe you can effectively do exactly

this same thing with the B right here

with the Bitcoin. That's all I've got

for you today. How not to invest. We

will see you tomorrow. Thanks for tuning

in. Peace.