# AI-Driven Market Timing & Contrarian Investment Strategies

**Podcast:** The Milk Road Show
**Published:** 2026-05-29

## Transcript

My 15 year view for Bitcoin is like it's going to like 50 million is sort of like where I think Bitcoin is going to be in 15 years.
ETH, I think, is going to be at like something like one and a half million in 15 years.
What's up, everybody?
It's LG Ducet here and welcome to The Milk Road Show, the daily crypto show that got told a few weeks ago we were heading to 70K, but absolutely refused to believe it.
My bad.
Today is May 28th, 2026.
We are recording on May 27.
Listen, we all have that friend who is very early to stuff.
So early that when they first mention something to you, it barely makes sense.
A thesis that is so unhinged and out of the current narrative that you think they're totally off their rocker.
And yet somehow they're often right.
In today's episode, we sit down with Eric Jackson, founder of EMJ Capital and the mastermind behind some of the most legendary 100x trades in tech and crypto to tell us how he knew the market would crash this week.
and what he's watching next.
Today's episode is brought to you by Cape, the privacy first mobile carrier, Nexo, earn interest, borrow and trade crypto, and CalSheet, where your takes finally pay out.
Eric, welcome to the show, man.
Hey, LG.
Great to be with you.
Thanks for having me.
I didn't mean that you're off your rocker.
Okay.
I just meant, I just try to pinpoint who you are for people in their life when they have that guy who comes along who's like, hey, listen, you got to get into whatever this niche thing is, you know, and then a year later, you're like, I should have listened to that dude.
I get called much worse than that every day on Twitter.
So it's, you know, what's funny is I was looking and I was telling you while we were chatting too, as I was looking at your last couple of appearances with Kyle and what's funny is it's how quickly things that you mentioned in past episodes become big narratives, right?
And something like iron is a really good example.
You know, the, the company that went from Bitcoin mining to basically make data centers.
And when you came out in August, we didn't really have much knowledge of even what that was.
And that has been one of the big stories, at least the crypto AI kind of narrative.
And they're having a fantastic week this week as well.
You know, so if that's somewhere where you invested your money, you've done well since then, too.
So I think what I really want to talk to you about today is kind of what I said in the intro.
But first, you know, we are a crypto show.
I want to ask you this week, three days ago, you tweeted that your model at EMJ flipped defensive.
And then I think we went from like 77K now this morning to 72.
Tell me more about that model, man.
What's the secret sauce?
Well, I mean, I can't give you every part of the secret sauce, but needless to say, like we've been working on building crypto models.
We started at EMJ Capital in 2021, believe it or not, working.
This was like pre-ChatGPT, trying to develop AI and machine learning models.
even back then, so I guess that's like five years ago, we found that the models, we started building them for stocks because obviously that's what I focus on at EMJ.
But we found pretty early on that we were getting better models, better predictive power in the models for crypto than for stocks.
And I think the reason why is just there's just a ton more information that's saved on the blockchain.
So if you've got more features to work with more variables to throw into like the blender and make this sort of model um you know there's more opportunities to be right our that being said we have especially in the last two years probably looked at like over 2 000 potential features or variables to build crypto models with and It's really tough and it's really difficult.
And I would say like even this year, like when we first had that pullback, obviously there was the pullback in October last fall in crypto, which was interesting from a bunch of perspectives because crypto let that crash.
There was a good month lag between when crypto started to dump in October.
And I think it kicked off because of some stablecoin mispricing issues that Binance had.
It took a month before names like Iron and Cypher and then the regular Apple and Nvidia started to dump in the stock market.
So crypto led that crash down.
Then it sort of stabilized in December.
Then there was another sort of mini crash.
You remember that took us down to like 60 or 62K right at the end of January and February.
And even then, like our models.
didn't catch that kind of drop.
And so we've been working like mad scientists trying to get better and better models.
And so one of the keys to answer your question in sort of like now knowing, like having this sort of sense that crypto was like about to get weaker recently is.
We spend a lot of time.
There's all kinds of underlying reasons that, you know, Ether might move up one day, you know, and maybe that's different from from Bitcoin.
But like in general, like for all crypto, you know, the key thing is like what's going on in the macro environment.
So much of crypto is sort of like tied to macro and rates and the war in Iran.
And so like, are we in a are we in a bear market now?
you know, conditions or financial conditions are getting tighter and therefore, you know, crypto might go down or they're loosening and crypto might go up.
So basically, if you boil it down, like we have a model now that we've just recently developed over the last couple of months that sort of only focuses on, hey, are we in a bear market?
Are we in a sort of a mixed mixed kind of whole, you know, tread water market or are we in a bull market?
And we just watch that like a hawk.
And once it starts to like.
And it doesn't flip overnight, usually.
Usually it could take sort of days for you to transition from like, you know, a bull market into like, and then one day you wake up and you check the numbers on the screen and it's like, oh, no, actually, we're now we've transitioned into this kind of mixed choppy market.
And then another couple of weeks go by and like, oh, no, now we're formally in a bear market.
So that's what happened just the other day.
So I would say like.
The bull market, we were in sort of like a good bull crypto market for most of March and beginning of April.
And we got the first signal that we were transitioning from that green light bull market into a chopped or mixed mixed market.
I think it was on May 11th, according to this model.
And so and you could see like we were starting to tick down in the price of Bitcoin.
but then just a couple of days ago or when i i don't have the date in front of me but 26 or 27 like we got that we got the message that morning that we were you know now entered this sort of bear market uh and so in each step along the way we we take actions in our portfolio both both at emj capital but i have this other company called emjx which is uh which is a like uh it's in the process of doing a reverse merger with a company called srxh on the new york stock exchange And we're going to be once it closes, hopefully in the next few weeks will be the first like multi asset.
We call it a gen to crypto treasury.
So we're going to have not just Bitcoin, but Bitcoin, Ethereum, other stocks, other cryptos.
And and we're hedging all along the way.
So as you move from like a bull market to a choppy market to a bear market, like obviously you're taking we take off risk.
We don't hold.
you know bitcoin all the time like like some of the other treasuries do where they just sort of like they say like michael saylor says hey you know bitcoin to the moon and i'm you know every new bitcoin i add i'm never selling and you know all this kind of stuff no like i guess what we've all seen in these last in the last year is just you know there's still a lot of volatility and if the goal is to just make money then i think you can't be wedded to like always holding crypto all the time.
Or if you are going to have that philosophy, you're just going to have to deal with the volatility.
And most people don't like the volatility.
So we watch the signals every day.
You know, we got this sort of message that, hey, we're moving into this bear market.
Typically, you know, that means that for like, say, the next 30 days, you're going to be, you know, you're probably going to see the price of Bitcoin go lower.
And that's what I said in my tweets.
I don't have like a fine tooth comb.
I can't say when it'll, you know, when we'll, you know, I didn't know it was going to be a day later that, you know, we're going to have this like drop from 77K to 72K.
And I don't know like where the bottom is going to be exactly.
And it doesn't mean like it has to take 30 days for us to hit the bottom.
We might just see some puke out down to some level and then it stabilizes.
And then all of a sudden we check the model again and it says, oh no, we're back into a choppy market.
So, but that's sort of like, I don't know, that's, That's what I built.
That's what we're watching.
I've learned like you got to, you know, if you're going to have something of value, you've got to obviously stick your neck out before the fact and kind of make some of these predictions.
So, you know, that was that's the intent of like just tweeting it out and making it known to people.
We are at a very crucial point in time right now.
AI stocks have ripped.
They're going to keep ripping.
Our analysts on the AI side are up like literally 100 percent or more on quite a few calls.
And.
crypto is about to boom again, or at least it feels that way.
If you want all the insight on what we're buying, what our analysts are doing, what's on their watch list, all of that is in Milk Road Pro.
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Okay, so this is really interesting because I feel like most people come on the show.
They, you know, the general investment advice is just like, listen, you like these assets, hold them for a long time.
Eventually Bitcoin is going to go to 150K, 250K, a million, whatever, and just stack in this shop.
But you, this is, this is a rare take as well, that you're, you have a far more dynamic model that kind of is more almost week to week or month to month.
based on these indicators that you guys have.
And I like that.
I think that, you know, I'm a bit more of a DGEN.
So to me, that's more interesting where I'm like, listen, if we're sure you stack, I have a hundred percent confidence that Bitcoin will eventually reach these heights.
But I'm like, while we're chopping in the bear market, what can I do?
You know, like other than stare at my coins or go learn all the other AI stocks and stuff, which we have a lot of great channels for that as well.
But if you want to stick to crypto, what else can you do besides just, just.
get upset when we bleed back out after a rally.
And it sounds like you guys kind of found the solution there with your model.
That's like, well, there are some moves you can make maybe every month or every couple of months based on what you're getting.
Right.
So I like that.
I agree.
I mean.
I mean, I would say I've come to that point of view through, you know, a lot of scars on my back because that wasn't my default.
Like, I guess I am more of a default degen, not just for crypto, but for like stocks in general.
And I mean, I always have been attracted to like these smaller mid-cap tech stocks like Carvana and Opendoor and Iron and Cypher.
And I mean, I love them all like I love all my children.
but let's face it like if we you know iron has been great and you're right lg like they've had a great week but like uh i wasn't feeling so hot on iron like when i watched it go from like 77 bucks like last november down to i think it got down to like 32 or something like at the low point got destroyed Some days, sometimes these names, it's like 10 days.
You give back 80% of your gains that maybe you've accumulated over a year in 10 days.
So I think honestly, like all of us, we've gone through those kinds of experiences and we feel pretty stupid when it happens.
And then we're always like, man, I wish if I had just taken profit at the peak and then gotten back in right at the bottom, like, oh man, how much money would I have made then and stuff.
but it's tough.
That's why it's very difficult.
To bring it to AI, that's why in 2021, I got into AI models.
There's got to be a better way.
The machine has to be smarter than the human in figuring this out.
We're getting there, but it's...
You know, it's not like a magic wand.
It doesn't happen overnight.
There's still a lot of like, you got to do a lot of work, you know, to get there.
But hopefully we're, I'm getting closer and closer to, you know, being better at sort of picking my tops.
Well, I mean, Eric, the industry is definitely moving that way, right?
Because yesterday, Robin Hood rolled out agentic trading, right?
That will trade and who knows what the results will be, right?
But that's going to look an interesting, an interesting time to launch it when stocks are all time highs.
But, but definitely an interesting product.
Is that something you feel like?
you know you've been around the you know been around here like been around finance for a very long time is that something you feel like people have actually appetite for and you think that that's something that retail would use that institutions would use and and what does that look like in terms of adoption of just just being like okay here's my here's my you know 100 grand i'm interested in these three things go and trade them for me i think so uh i i the more and more like you know, dove down the rabbit hole the last year into AI and crypto and agentic AI and stuff, the more I feel like, wow, you know, like I am a true degen in the sense that I think I've said on the show before with Kyle that, you know, like my 15 year view for Bitcoin is like it's going to like 50 million is sort of like where I think Bitcoin is going to be in 15 years.
ETH, I think, is going to be at like something like one and a half million in 15 years.
and that but it's not going to be a straight line and uh so you know to have that view like you got to be obviously pretty bullish and and one of the reasons why i'm super bullish on crypto in general and for bitcoin and ethereum is is agentic is basically going to be the adoption of agentic ai which which basically means um we're going to rely more and more on ai to do stuff for us and we're just going to place our trust in it so it's going to be everything from using agentic AI to book our Expedia airline tickets to, you know, and why not, you know, run our Robinhood accounts or whatever, you know, and trade stocks.
I think, you know, it's not going to happen overnight, but like the more people dip their toes in the water and experience it and like it and have a positive experience.
I think there's so much where we want, we just want to like offload stuff, but we still want the feel of personalization.
And I think that's.
you do get that like and i think it's going to obviously just get even you know better and more magical in the next year or two uh so that uh you feel like this this this person who's like your personal assistant it knows you better than anybody else you know and And therefore, you know, you can say, hey, well, I like this kind of stock.
I like that kind of stock, but I don't like this.
I don't like that.
Everybody likes to feel like they have control of, you know, and they want it personalized.
They want their pizza personalized, just, you know, the hot honey and the extra spicy or whatever, however they like it.
And so I think they get that from the agentic AI.
So I think there will be this sort of.
uh trust but this you know i'm sure there'll be you know screw-ups along the way and this can you know the computer you know lost me you know 20 you know this month and like isn't this a big scandal we've got to put safeguards in and you know vlad will have to go on tv and do a mea culpa and i'm sure we'll have things like that but i mean like over the long you know five years from now though like all that stuff will get forgotten about and we'll be in a much different place than we are today i think i think you have set the record for the largest number prediction for Bitcoin and ETH ever on the show.
Right.
In a timeline, you have a, it's a reasonable timeline.
We've heard like 250K by within the next six months as well, which is seems a little less realistic, but I think you just said one and a half million ETH and 15 million Bitcoin.
I love that.
That's, that's, I honestly didn't expect you to say anything like that today.
Five, five zero, not one five.
Oh, 50.
I didn't think you were going to say that, Eric.
So, okay.
Well, don't, don't trade too much then, man.
Make sure you're accumulating, make sure you're still accumulating over time, man, with your, you know, with your, with your, with your system at EMJ that, that tells you when you're bullish or bearish, make sure you're still holding a lot over time, man.
Cause if that's, that's going to happen, you make sure you don't want to miss that train.
I want to ask you, Eric, you know, so you've kind of mentioned a few different, I guess you're calling them kind of like smaller cap stocks, right?
How do you and they're quite diverse, you know, and I think that that's what's interesting.
We're going to divert a little bit from crypto right now, but feel free to kind of incorporate this with crypto.
You know, you're talking about next door.
You're talking about iron, which which are iron, which is crypto related.
You've mentioned you've mentioned a few more as well.
How do you find these?
You get it.
I mean, you do get a spidey sense after a while of.
Knowing a down and out company that you think is being given up on.
I mean, the best opportunities are when the consensus is this thing is like, it's left for debt, literally.
And so Carvana was like that.
Everybody thought that this company was going to file for bankruptcy because they had so much debt.
They dropped from 400 bucks in 2021 to $3.50 in December 2022.
They had like 6 billion in debt.
Interest rates were jacked up post-COVID now because of inflation.
So who is going to be able to afford a car lease and all this kind of stuff?
So it was last rights for Carvana.
And yet, like when I started to talk to people actually who worked at the company, you got a very different perspective.
And there was a confidence.
They were buying a lot of stock, the insiders were.
And I just know from, you know, like, Nobody, like there was one guy who was the chief product officer at Carvana, who in November of 2022, like a month before it hit its all time low, that he bought three or three and a half million bucks worth of his own stock out of his own pocket.
And like, no, like I'm sure he was wealthy, but, you know, he wasn't as wealthy as the founder, you know, whose dad was wealthy.
and who had like, I don't know, I don't know exactly what he was worth.
But if somebody super wealthy, like buys $10 million of their own stock, I mean, that doesn't even register these days.
But if there's like a guy who's like the chief product officer, who's like parts with like three and a half million.
I mean, I just know from my own experience with my own wife, like if I had to like go to her.
and sit around the dinner table and convince her like we got to take some of this after-tax money that's just like sitting in an account here and pile it into this stock that probably all of her girlfriends are telling her is about to go bankrupt.
Oh, are you okay?
Like, are you going to be okay?
Because I keep hearing that your husband's company is just like swirling around the toilet bowl.
And like trying to convince her like, no, this like I really, you know, it's really a great investment and it's going to 100x over the next three years.
I mean, that's going to be a tough conversation.
And so that the fact that he had that and he was successful in convincing her to do.
that nobody just like starts a party and like you know in the back in their backyard and lights like three and a half million bucks on on fire uh like there has to be like a you know more than just you know sort of silly confidence but like a deep a deep confidence that that you're going to come back so there you know you look for certain signals like insider buying you look for signs that you know customers actually like the product that there's actually growth underlying growth in the product um and so Those kinds of, but nobody's paying attention to it.
I mean, that's also a great sign because then like, it's not like, they're not talking about it on CNBC halftime report every day, like they are Nvidia or whatever, you know, Microsoft.
It's just, it's sort of flying under the radar.
And hopefully there are some like near term catalysts in the next year or two, like, you know.
I don't know, there might be some big new customer announcement that they have or inclusion and they're going to pay off their debt and then they'll get repriced by a different metric than they used to get priced at.
So there's all these kinds of things.
So that was like Nextdoor was like that.
But you want to find these sort of basket case, like, hey, everybody in the world thinks they're X and they're really Y.
So like Carvana, they think they're like, it's a failed, you know, nobody can ever make money buying and selling cars online.
I guess that would be that that's what they thought was X.
But then, you know, what I thought was Y was like, oh, but like, they're actually this like national brand.
They built this model that is like unique to them.
And if they just were able to get their sales up a little bit more.
They could not just be a little bit more profitable, but like massively more profitable.
So and then that starts a flywheel and stuff.
So with Nextdoor, people thought like, oh, this company's been around for like 15 years.
People tried it.
Then they don't like it anymore.
That's why their stock is down.
Nobody's paying attention.
But when I looked at it, I said like, wow, this is a company like, again, like unique in the sort of they have all these neighborhoods with all these people going there every day for information about what's happening in my local neighborhood.
They don't it's all been like vetted.
So you have to you know, you have to prove that you actually live in that neighborhood to participate on next door.
So there's no spam.
There's no bots.
And wow, like, what's the difference between somebody like them and somebody like a Reddit?
where there's like Reddit, you know, but then subreddits in different topics.
And like, you know, all, you know, it seemed like it was doing nothing for years.
And then all of a sudden, like out of nowhere, like started like to grow like wildfire and got this premium valuation that like 22 times sales versus a next door, which is like, you know, three or four or five times sales.
And.
Nextdoor, they did have a bad CEO before who ironically is now the CFO at OpenAI.
But their founder CEO came back and he owns a big chunk of the company himself and sort of had thrown himself into it.
And I was able to talk to him and you could tell like this guy had a plan.
It's never one size fits all.
There's always a little bit of a difference each time.
In the case of Opendoor, for example, I got in at 73 cents last summer, but they had a terrible CEO at the time.
And yet, there was no insider buying like there was a Carvana.
But I felt like, oh, they have some like prestigious people who used to be involved in Opendoor.
And I know I've been watching from the sidelines and criticizing like the current management as sort of being out of touch.
And wow, you know, imagine if like some of those, you know, prestigious names like Keith Raboy, who's like part of the PayPal mafia with, you know, he wrote the original business plan for Opendoor.
What if somebody like that was able to come, you know, convinced to come back and join the board and like help with the CEO search and.
all of a sudden like a few months later uh that did play out the old the old ceo was gone she was she quit keith was back he brought in kaz najadian who you know he left the job as coo of shopify so he left a 200 billion dollar company where all he had to do is like keep his head down and like probably you know next year or something he would be promoted to be ceo and he decided to quit and leave it like stock options on the table and join a $3 billion market cap company at the time and become the CEO.
So it was a pretty amazing like turn of events where I was kind of like almost like a mini activist investor.
It's a lot easier when you don't have to do that and you just sit back and Carvana just like all of a sudden like comes back from the dead.
So every case is different.
But it is like you got to be able to live with the volatility and you got to be able to kind of live with these like gut punch drawdowns.
Like in the case of Iron or whatever, like nothing changed.
Like the company fundamentally in November of last year versus whenever the low point was, February or March, like it was just as strong a company inside the company, just as smart a management team.
And yet all of a sudden, like, you know, at one point in time, like the market is like, discounting it like 70% off versus where it was in November.
But that's sort of like what happens in the tech world and the small cap or growthy cap, you know, part of tech.
And just like, you know, same thing happens with Bitcoin and Ethereum or like some altcoin, crazy altcoin.
Like, it's just the way it is.
And if you can figure out how to not like have your head blown off during those drawdowns.
and kind of, you know, live to fight another day, like, you know, that it's eventually going to come back and then you can profit from that.
But it's not for the faint of heart, for sure.
But that's why all these like old guys who have no experience in tech, you know, love to crap on these kinds of companies and say, oh, Eric's so dumb.
Anybody who listens to Eric, these companies are so dumb.
Don't you see, like everything should be valued on a discounted cash flow basis and profits.
How can you ever invest in a growthy company?
Well, I mean, if that's your thing, I mean, just be a value investor, okay?
But don't say that you can't make money from investing in a Reddit or a Carvana or an Opendoor.
It's just not true.
You're just not smart enough to kind of understand how these tech companies or crypto works.
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Eric, you also have a line to some of these people, man.
Like, just going and talking to the CFO is not something that our listeners can do.
No.
But maybe that's a good reason to follow you.
I mean, at the same time, you know, it's also nice to follow people who do that research.
Yeah, that's true.
I mean, I think the most, but, like, I mean, I...
Who am I?
Like I'm just some like 53 year old guy in like North Toronto, walking my dogs, you know, like a lot of people would say like, he's a nobody and stuff.
So like, I don't think anybody should feel intimidated from, you know, emailing, reaching out, phoning, like asking for a meeting with some of these, you know, when these companies are down and out, like they will remember the people that were there.
I remember I wrote an email to Ernie Garcia, who is the CEO of Carvana in, I think it was in January of 2023.
So this was just like a couple of weeks removed from when they hit $3.50.
And I hadn't met him before.
So it was like a cold email.
I just sort of like looked up, you know, guess what, like, you know, I don't know, first name dot last name at Carvana dot com or something.
And then I said, but I had just talked to the guy who was the chief product officer, the guy who dug into his pocket and bought the three and a half million.
And I said to Ernie, like, hey, you don't know me, but I just want you to know, like, I had this conversation with this guy who works for you and he, you know, he.
he told me like he met you at Stanford as an undergrad and you know, you guys were like really tight as a management team and he believed in the company and he just, you know, dug into his pocket and bought three and a half million dollars worth of your stock.
And I just want to say like, that's really rare.
And so you should be commended because like.
that doesn't happen unless you have a smart and a strong leader at the top.
And so, and he responded and he, you know, he said, oh, thanks a lot.
You know, I appreciate you, you know, saying that like, and you know, I've emailed him a couple of times since then when now when the stock is like a hundred X what it was, but they, they remember those moments.
So, I mean, I think that's, that's something I would tell my kids and anybody watching is just like, don't, don't be intimidated.
Don't think like you're.
you know, some nobody and like, don't be afraid to reach out.
And if you reach out, especially when the company's going through hard times, they'll definitely remember when things turn later.
I've also said, and especially this is, you know, what you're saying is even truer in crypto as well, because it's not, it's a much smaller community in a sense.
I've always said this, that crypto is the only place where you'll have a guy who spends $10 on meme coins and thinks that that's a lot and that they are literally a DM away.
from a Vitalik Buterin or a I don't know, James Wynn super trader or any of the other big personalities in crypto that like the guy with ten extra dollars to spend is a DM away from the guy who has a five billion dollar liquid, liquid stash that he.
moves on Hyperliquid every day.
You know, like that, it's like those people are just parallel in the same spot on X and in DMs.
And like you're saying is true that it's like, it doesn't hurt to actually reach out.
You'd be surprised.
Eric, I do want to ask you what's on your radar now.
That's what we want to know after you've given us this amazing kind of intro.
Like what are you looking at through the spring and summer here?
Well, I think in crypto, I mean, obviously I'll be watching for like when my stress, you know, macro indicator signals like we've hit a bottom and like we're starting to like move into this sort of choppy period and then the bullish period.
And I'll definitely be piling into kind of not just Bitcoin and Ethereum, but some of the smaller altcoin names as well.
Like what?
Like who?
Like I'm a big fan of Sky as a coin.
I got a chance to meet Vance Spencer, who is Canadian, but he's now down in San Francisco with Framework Ventures and is a big backer of Sky.
It's a stablecoin, but it's more decentralized stablecoin, basically.
We know.
We talk about Sky a lot.
It's in our Milk Road portfolios pretty heavily.
We've had Ruin on the show recently as well.
We know a lot about Sky.
when what was the name of the firm that launched their like stable coin like agent fund or whatever that was.
I'm so bad.
I'm so bad at remembering my own episodes.
They did a partnership with a company called Better and basically they're going to allow people to get mortgages backed by Sky.
That's right.
Because of that, because it's backed by Sky, they're able to kind of almost take out, I think it's like 100 bps of from the legacy world of how you get a mortgage and what it costs you.
Just sort of taking out all those traditional players and mortgage and title and stuff, they can offer a mortgage backed by Sky at 100 bps less.
And Better makes money from it.
Sky does well from it and all this kind of stuff.
And people are getting cheaper mortgages.
So they're doing some really cool and innovative stuff.
BitTensor is another name that I like.
I spent a lot of time just going through white papers of new coins.
It's funny, you really can learn a lot about up and coming altcoins, but also potential frauds.
Just from going back to the original white papers and studying them in detail, there's oftentimes some good tips that you can, or tells, like I was saying before, that you can gather that will give you some.
some tips so that's that's from the crypto world uh in terms of like the next big thing in in the you know the next open door the next carvana and stuff i mean i'm very bullish on a on a stock called dave uh which i don't know if you've heard of lg but it's only in the us and it basically they're trying to they're using ai to displace um People that have a lower credit score, right, who get to the end of the end of a week and they're running a little short, you know, to whatever, pay the rent, you know, or gas money or whatever.
The ones who used to have to go to their brother, you know, hey, can you cover me for like a $200 loan until like next Tuesday or something or the parents or whoever.
What Dave does is you sign into Plaid in the U.S.
And Plaid interfaces with your checking account and sees like, what's your last six months of cash flow actually in your checking account?
And they don't even touch your credit score.
They don't ping your credit bureau.
They just look at cash flow.
And from that, they can determine, is Eric a good candidate for a $214 loan?
you know, between now and like next week.
And that's the average size of the loans that they do.
And if they see the cash flow evidence, they say, yes, they approve you right away.
They front you the money.
And then because they've linked now with your checking account, when the cash comes into your account and hits the account, then that's how they get paid back.
So it's a it's a different model, but they're growing like gangbusters.
And believe it or not, and they're not really taking that much credit risk because and their default rates are super, super low.
They have partners where they kind of offload, they get it off their balance sheet.
So they're just sort of like this, they built this sort of front end AI to kind of analyze you and the potential risk you are and if you're good for the 200 buck loan for a few days.
And so, and they're going like crazy and they're just like scratching the surface of the, you know, their potential market.
I mean, they've already done really well.
I mean, they went from like five bucks in 2023 to they're like 270 bucks today.
I got in them a couple of months ago when they were like 170 bucks on like a recent pullback.
And I just think there's much more good news to come for them over the next year or two.
I have some pretty audacious longer term price targets for them.
So I think the story is just getting started.
They're now getting into a new credit card type product.
But again, it's sort of tied back to the cash flow in your account.
So people would say, oh, is this buy now, pay later?
Well, not really, kind of, but it's a little different.
It's a new model that's been enabled through AI that I would say is like a lot less risky than the typical like buy now, pay later folks.
So that's a name I really like.
And then believe it or not, I'm like I'm very bullish on Peloton.
That's another like, you know, former COVID darling.
Oh, yeah.
I think it hit like something like 170 bucks at the heights like back then.
But now, you know, a few months ago, it got down to the threes.
I got into it in the high threes around like four bucks.
It's like six bucks today.
People say, oh, who uses Peloton anymore?
Or I see them at the mall sometimes and nobody, you know, no one's in their stores.
Like, you know, why should I get into it?
Well, I think what's interesting is they've got like two million subs still that they're paying.
And probably many are like me where I got it sitting in my basement.
I got two.
I got the Tread and I got the...
the um uh the bike and uh when was the last time i was on it myself like maybe i don't know two months ago maybe i'm like i'm not i'm not like super good but i'm still paying my i don't know what it is now 50 bucks a month subscription 60 bucks and i i'm going to and my my wife like she uses it more than i do but she just like loves like there's like one uh woman instructor that she just loves she she'll so i i know like in my family We're going to be subscribers forever.
And they have a smart new CEO.
Unlike their last two CEOs, they have this like steady cash flow kind of business.
They have a path to kind of keep growing and keep building and stuff.
So it's just, again, like fly, you know, I love this.
Nobody's talking about it on Halftime Report on CNBC.
This thing could just levitate and would not surprise me in a couple of years.
This thing was like.
in the high teens or something like that, if we get some, you know, some actual growth again, which would be fantastic, then it could be even higher than that.
You're listening to the Milk Road Show, which means you've got takes.
Strong ones, I bet.
But where do those takes actually go?
Do you tweet them into the void, argue them in the group chat, or do you try to express them by buying a stock?
The thing is, stocks move on like 50 other things at once, and that's where Calci comes in.
It's a CFTC regulated prediction market where you bet directly on outcomes like...
Bitcoin hitting 100K, Fed rate cuts, GameStop buying eBay with a clean yes or no.
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Eric, I love these companies, man.
These are both, Peloton is at a $2.64 billion cap and Dave is, where are we at?
3.42, man.
You know what I like most about these?
Not only is I like your logic and I love the idea of just like, listen, this is a former giant.
They're all the way dead, especially Peloton.
It's like we saw that chart is nuts.
Peaked at like 130 or something and it's now at six bucks.
There's a former giant, still has a lot of subscribers, clearly trying to rewire the business and they have something really valuable, which is paying customers and a huge basket of them that they could reactivate.
But I love the part I like the most is the market cap because this is like a crypto token.
You're talking our language.
It's like these are like good alts.
You know what I mean?
You put them, these are top 100 tokens in crypto.
And I think that that's always a lens.
I think when we do talk about stocks on crypto or in this crypto show, we try and look at things that way.
We're just like, okay, listen, like if this is a real company, it would be very undervalued.
So if it comes to fruition of what these...
crypto companies are promising they can do if crypto continues its institutional adoption and its road, they will reprice aggressively over time.
And I like that you, even though these are not crypto companies, you're bringing stuff that has that similar mentality, at least that it's like it's undervalued.
He's a great reason why it could continue to move up, especially in Dave's case.
Well, yeah.
Great picks.
I mean, who doesn't, which of us doesn't want to go back in time and be able to buy some Bitcoin back in like 09 and 10, right?
You know, that's never going to happen.
And I love Bitcoin and I still think it's going to 50 million, you know, in 15 years.
But, you know, we're not we're not going to it's not going to go up 10,000 percent in two years.
Right.
And that's, you know, so you're going to have to I get it.
Why all the DGENs are playing the mean points and all that kind of stuff.
But.
Like the problem with the meme coins is like, what are you hanging your hat on other than if you're like one of these guys that runs these telegram groups and where you're basically just trying to pump it and get your followers in the group chat to just kind of trade it back and forth with each other and then dump it on some other people like, you know, a few days from now or something like that.
You know, obviously that's not sustainable.
Otherwise, I'd be playing that for sure.
Like if there was some like sustainable reason, like I'd be all up in the meme coins.
But so for me, like these kinds of stocks and, you know, like some of the other like altcoins that we talked about as well.
I mean, that's what gets my Jesus flowing.
And then to try to find something again, like, you know, to really feel comfortable that you're, you know, this is not just like, you know, there is a tradable, you know, investment strategy here that you can kind of feel comfortable with.
But that being said, like you can still screw up like a name like Peloton, you could get in it.
You could have got into it.
I don't know, five or six bucks, like the beginning of this year, they had a bad earnings report.
Oh, next thing you know, the thing's down to like trading in the threes, right?
Like, everybody's like puking it out saying, ah, I knew this thing will never turn around.
And like, you know, but then you wait three months, six months, and then all of a sudden, like, hey, we're back at six.
And so.
You know, I mean, it's it's you got to watch for these things to blow up in your face.
But it can work out profitably just on the other direction.
That's awesome.
Eric, thank you for your thoughts, man.
It's been a great show.
I love the chat.
I didn't even get to ask you about Drake, but we'll save that.
We'll save that for another show.
We'll save that for when Milk Road brings D-Gen back or something like that.
We used to have a D-Gen show that I ran.
So maybe maybe if we ever do that, I'll bring you back on it so we can understand all your.
tweets about Drake.
Thank you, sir.
And I guess, you know, when your indicators flash again, give us a call.
All right, will do.
Thanks, LG.
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