CEO *Devastates HIMSELF* on LIVE TV | Tokenization Scam?!?!

announced SpaceX anthropic. What could

be bigger than those? That's right. And

and we're happy to announce it here with

you. Uh Open AI is our next offering and

we could not be more excited about it.

Just like Robin Hood, let's explain to

people what that means. If I hear you

correctly, through your mirror tokens,

people It means you could pay top dollar

of OpenAI before it's even public. They

can have exposure to Open AI as a US

retail investor. So preIPO for the first

time ever. Okay, this is going to get a

lot of people excited because they feel

that that has been an opportunity only

for accredited investors, which means

you have to have seven figures behind

you to prove that you're ready to take

on the risk. They don't have to have

this with Republic. Nope. Not not

anymore. They right now at Republic, you

can literally go to our site and be able

to participate in a market that as a

retail investor, you've been held out of

basically since you've been born, since

the 1930s for the most part. So now

through us and through our our CF

structure, our reg CF structure, um you

now have the ability to have exposure to

an asset class that previously has never

happened. Okay. The reg CF, you've got

to explain that. No problem. So we use a

regulatory up been doing this now for 8

years. It's an exemption that allows for

US retail investors to participate in

private companies. Yeah, we we've

covered many like this, but a mirror

token is what makes you different. What

is that? Yeah. So now because we have

built a tokenization framework into this

asset class, not only is retail able to

have exposure to it, but now we're able

to have secondary market trading of that

asset on a go forward. So we have, you

know, our our initial reservations

taking place now, but once post that

distribution, this will then trade

within our secondary market and people

will be able to participate ongoing.

Open AAI has a something like a $300

billion valuation at the moment. How do

you glean the shares? because you got to

have the underlying shares before you

can start passing them up in these

so-called mirror tokens. Correct. Where

are you getting yours? So, so ultimately

how that works with us is uh you don't

hold the shares. You you have a a a an

interest in that exposure, right? And so

that is a a guarantee basically from

Republic. It's a debt structure that

guarantees them that upside at that

entry point. So, um usually we'll sell

it at the last round. So, let's say the

last round was 300 billion um for

OpenAI. They would they would then come

into that structure with us and that's

they have the same entry point as the

multi-billion dollar VCs that entered

just recently. But you have the shares,

correct? No. So we we don't have to hold

the shares regulatory wise. We do not

have to hold the shares. How are you

selling to people something that you

don't hold? So we create a guarantee a

debt guarantee of their entry point and

the increase. That doesn't mean that we

don't go acquire the shares later, but

regulatory wise, we are not required to

have them. Um, this makes me nervous and

only because I'm thinking of, okay,

here, buy a piece of the Brooklyn Bridge

and owns the Brooklyn Bridge. Yeah.

Yeah. No, inevitably the goal is that we

will be able to take on those shares,

right? So, we generally target your

hopes or No, well, we we're targeting

companies that we can we have uh access

to those shares ultimately. So, you have

a relationship with Open AI? Not no not

not directly with open AI but with uh

you know uh you know other companies

that have that that inventory already

and there's a thriving secondary market

now. It's just retail has not been able

to participate in that secondary market.

Well they have in some cases where

companies are able to purchase shares

from employees who were gifted them as

part of their compensation plan and then

they want to cash out so they sell them

on these open closed markets I guess you

could call them. Uh but so tell me

exactly how you guarantee it for people

that they're not just playing with funny

money. Yeah. So it's it's it's part of

the filings that we do and we do have to

file a form C. So there's a process to

go through this. It's important though

we are regulated by FINRA and the SEC

and have been for eight and a half

years. And in in in in this particular

styles of offerings that we do, no one's

been doing it longer than us. So um we

have the road map. This dude's

collapsing. Uh uh and uh we're so

excited to be able to do this structure

now that does something that's never

been done before. All right. So let's

say I get my hands on some of these

mirror tokens. And by the way, my

ability to purchase them is capped at

what? $5,000. Yeah. So the the offerings

right now we cap at $5,000 because it's

meant to be retail oriented. I don't

want a big, you know, hedge fund coming

in and buying up all the inventory. It's

meant for people. Fair. Fair. Let's say

I hold them for a while and OpenAI has

some great partnerships they announced

and they start breaking ground on

Stargate, their big uh data center plan

in Texas and I want to get rid of these.

How do I do that? Yeah, we have our

secondary market. So, you are able to

just simply log into your account and

through our secondary market you're able

to sell that that position. They got to

go through you though. Yeah. At a huge

discount probably. How do we make the

money? So, we make money on uh on the

trading fees. That's that's really what

the business is built around. So even

though you're entering at the same point

that everyone else is, where we make our

fees, where our structure is, is when

you choose to activate the secondary

market. Really quickly, uh you announced

already SpaceX and Anthropic today. What

kind of action have you seen on the

site? Unbel it's been parabolic for us.

You know, we've we've been doing this

business for 8 years. Uh we've had a lot

of big wins and big windfall successes.

This is unlike anything that we've ever

seen. So today, right now, people can go

on and buy at least exposure to Open AI.

Yes. So, you go on our site and you make

a reservation like this is what I want.

This is the asset I want. This is how

much I I want of it. And then as we go

through our filings, then we'll come

back and we'll take in we'll take in the

cash from them and they then receive the

security from us. And no matter what,

they can at least get their investment

back. Is there any way to lose money on

this? He didn't say that. I I mean,

there's always risk in private markets.

If if a if a private business goes

under, then it goes under there. Yeah.

In that case. But um what's really

beautiful about this the tokenization

it's only possible through tokenization

is we are able to have the secondary

market people aren't locked into this

thing until an IPO right and that's I

think the real fear for retail investors

is you go into something and you maybe

put a couple thousand dollars into it it

but then you're stuck in it for 10 years

that's really tough for people and so

now they can come into it and when they

want they can exit it yeah private

equity has been rather annoyed lately

because the exits haven't been there to

the public markets we will continue to

watch this and let us know how the open

AI dude This guy literally just

humiliated himself. He should go in the

bathroom and just like vomit. Thank you

very much. Thank you. The Senate. She

nailed this guy. Oh my gosh. That was

like live TV destruction of the guy. How

do you say, "Oh yeah, no, we don't own

any of the underlying shares." What?

What? So, how are you hedging yourself?

That's like a naked call option. That's

insane. Now, if you go and say, "Look,

look, here's the way to do it

appropriately." Okay.

All right,

Samman. Homie,

I saw you guys just raised money at 300

mil. Uh, you you want to make some

money? Uh, how about you sell us uh, you

know, uh, or 300 bill is what their

valuation is actually, right? 300 bill.

You want to make some money? How about

you sell us uh, I don't know, 100 mil of

shares at that 300 bill valuation. Okay,

cool. Sam was like, "Yeah, yeah, sure.

I'll sell them to you." Okay, cool.

Private party transaction, exempt

transaction. Fine. So, Republic

basically could buy the underlying

shares uh and then Republic could slice

that up into different offerings. Now,

in this case, this guy, Republic, he's

talking about doing regulation CF. Now,

this creates some problems because with

a regulation CF offering, you could only

raise $5 million from nonacredited

investors. That's not a lot of money to

make a fee spread on. Now, you've got

probably, you know, $100,000 of legal

fees to do a regulation crowdfund

offering, and you're telling me you only

make money through your trading fees.

But on $5 million, how much can you

really make in trading fees? That sounds

crazy to me. What it sounds like is

you're probably buying these shares at a

discount. Hey Sam, you cool man. If you

know, I want to buy them at a 10%

discount. We'll buy them at a $270

billion valuation. Then you go turn

around to your and I don't know if

they're doing this, but then you go turn

around to these people you're doing the

rag CF to, and you're reselling the

shares at a higher valuation. Okay, if

that's all disclosed, you had the phone

number for Sam Alman, you got them,

fine. But at least then you hold the

underlying shares. So, when you give

somebody a token and you're like, "Hey,

uh, this serial box right here

represents all of the Open AI shares we

have. And if you want to have a piece of

it, you know, here's a here's a token.

Okay, you get a little piece of it. So,

here's your token. You get your piece.

Uh, that represents your stake in

OpenAI. If you ever want to come back

and like get the shares, don't worry. We

have the shares. We hold the whole box."

But what this CEO just said

is that there's actually nothing inside

of the box.

So he's selling you a slice of no shares

that he got from Sam Alman, which means

he's basically promising to pay you the

mirrored upside. So, if that OpenAI

stock is worth 2X in 5 years, then

they're going to pay out that $5 million

investor group $10 million. Okay, fine.

But Republic, where are you going to get

that money from? If you don't actually

own the underlying shares, you'll have

to hedge that somehow. Okay, you could

do that. You could enter some kind of

derivative contract with some form of

institutional bank like a Morgan Stanley

or whatever, but who's paying for that?

This sounds like I mean I hate to use

the word, but it sounds a little bit

like the thing that has a three-sided

shape that's kind of like uh we're going

to collect your money and then uh good

luck, bro. I mean, yeah, look, I get it.

They're FINRO regulated. They're SEC

reg. I don't know. I I don't know. Like,

maybe it's worth reading all their

disclosures and their disclaimers and

their offerings to see how it all fits

together. But what I just saw was the

CEO

failed to convince not only the Fox News

lady, but me that they're actually able

to protect themselves from any risk. To

me, it sounds like they're like, "Oh

crap, Robin Hood is eating our lunch.

Uh, we're going to uh we're going to

announce that we do tokens on private

equity as well. We're going to come on

your show and announce OpenAI and we

already have Anthropic and all this

other cool. So you sell retail at the

top of the market, this illlquid private

token, giving you representative

ownership in nothing. It sounds scammy.

I mean, forgive me if I'm wrong. It

sounds scary. If you have a way you're

hedging yourself, and you could give pe

people that mirrored upside, but you

have no way of actually owning the

shares, I'd love to see the financials

of that because to me that sounds like a

money losing marketing business. And I

think that might be the play here. They

might be looking at going, "Oh, we don't

mind if we lose money on those $5

million reggg cfs because we'll get the

principal back because we're going to

sell it to those people and whatever we

absorb in fees, who cares? It's just a

way to get people on the platform." So,

it's sounds a little bit like a sleazy

marketing gimmick. Again, maybe they

figured out a different way and I'd love

to hear from them and then we can

clarify. So, I'm not trying to say they

haven't figured out a way to protect

themselves. It just sounds funky. The

other thing, and you'll notice when he

says, and I I shout it, too, when he's

like, "Oh, yeah, you could sell it on

our secondary market." Dude, nobody

cares about your illlquid secondary

market. When you have a small offering

of something, even when it's listed on

the New York Stock Exchange, there's no

liquidity. Like, volume goes to absolute

crap, and that's dangerous for

investors. Look, for example, this is

during trading hours. This is Lucid.

Lucid Motors has a $6 billion market

cap. The volume we're getting right now

is total trash that we're candle

barring. I mean, here what $30,000 uh

shares of volume. 30,000 shares of

volume in a minute times $2 a share.

$60,000 worth of volume per minute.

That's why you're candle barring. Well,

if somebody one person comes in here and

drops a sell order, the darn thing's

going to tank because the order book

will get eaten up. This is why when

Clammon's like, "Oh, so, uh, people can

get their money back." He's like, "Well,

uh, there's risk." Well, yeah, the risk

is that somebody goes into your

secondary market and tries to sell and

they can't because there's no volume.

Like, how many people are buying and

selling on your secondary market? I get

it. They're trying to get more people

into because these tokens and stuff

sounds sexy, but the tokens are really

just a representation of something

underlying. And in this case, the CEO,

again, I'm just basing it on this

interview, so may maybe we're missing a

piece of the puzzle here, but based on

the CEO himself, it sounds to me like

it's backed by nothing. And I don't care

that you're FINRA or SEC regulated. It

sounds bad. Sorry, my POV. At this

point, I'd actually almost trust the,

you know, the Robin Hood system way more

than what I just heard. That sounded

like a humiliating interview. And that

CEO did not come to a financial

interview properly prepared. I don't

even think he knows what regulation CF

is. Why not advertise these things that

you told us here? I feel like nobody

else knows about this. We'll we'll try a

little advertising and see how it goes.

Congratulations, man. You have done so

much. People love you. People look up to

you. Kevin Praath there, financial

analyst and YouTuber. Meet Kevin. Always

great to get your take.