How The Secret Crypto Algorithms REALLY Work | Andrew Parish

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The Pomp Podcast 43 min 3 speakers 8 chapters transcribed
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What is the main topic discussed in this episode?

Anthony Pompliano 0:02
What's up, everyone? This is Anthony Pompliano.

What is the impact of the NYSE's tokenization announcement?

Anthony Pompliano 0:05
Many of you know me as Pomp. You're listening to the Pomp Podcast, which is my effort to find the most interesting people in the world and sit with them for hours while I ask questions in an effort to learn.

How do Coinbase and Robinhood challenge Wall Street?

Anthony Pompliano 0:15
So it would mean the world to me if you would subscribe to the show on your favorite audio platform, watch episodes on YouTube, and tell your friends and family about the podcast. My goal is to help millions learn from the world's most interesting people. So let's get into today's episode. Anthony Pompliano runs Pomp Investments. All views of him and the guests on his podcast are solely their opinions and do not reflect the opinions of Pomp Investments.

What distinguishes algorithmic trading in stocks versus crypto?

Anthony Pompliano 0:39
You should not treat any opinion expressed by Pomp or his guests as a specific inducement to make a particular investment or follow a particular strategy but only as an expression of his personal opinion. This podcast is for informational purposes only.
Andrew Parish 0:54
IF LARGER MARKETS ARE GOING TO MIRROR CRYPTO MARKETS IN THE FUTURE AND EVERYTHING IS GOING TO BE 24 7 TRADING 24 HOUR TRADING 7 DAYS A WEEK, ALWAYS ON, NEVER OFF. it now becomes just a reality that you're going to have to get your hands on tools that are there for you while you sleep. Your ability to affect transactions without emotion and to not get beat by institutional algorithms, you have to get your hands on it. And that's where we're headed.
Anthony Pompliano 1:30
What's going on, guys?

How do AI agents compare to traditional trading algorithms?

Anthony Pompliano 1:31
Today, we've got a very special conversation with Andrew Parrish. He's the co-founder of ArchPublic. In this conversation, we talk about what is going on with tokenization, the new New York Stock Exchange announcement, how he sees algorithmic trading becoming more pervasive in crypto, what's going on with Bitcoin's price action, how we should think about

What role does speed and infrastructure play in high-frequency trading?

Anthony Pompliano 1:48
all sorts of things around regulation, the Clarity Act, and what's going on in Washington, D.C. And then lastly, how the new AI tools are actually changing the way that people are building software and building things like ArchPublic. All that and more in this conversation with Andrew Parrish. All right, Andrew, I thought a great place to start the conversation.

How will the Clarity Act affect crypto regulation in the U.S.?

Anthony Pompliano 2:03
We recently saw the New York Stock Exchange announce that they are building a 24-7 tokenization platform that will allow them to really push into both tokenized assets, but also decentralized finance. What do you think is happening here? And why is this catching everyone's attention?

What are the implications of U.S. politics on Bitcoin and crypto regulation?

Andrew Parish 2:18
Well, I think it's New York Stock Exchange is a nice headline, right? The NYSE, that's a brand that people recognize. But the reality is the NYSE is owned by Intercontinental Exchange, which owns basically nearly all the exchanges, futures exchanges, and nearly all the custody rails that exist in traditional finance. So it's not just the NYSE that's making this announcement, it's Intercontinental Exchange and all the rails and levers that make nearly everything move in traditional markets are now going all in on tokenization. So it's nice that they are coming around, but the NASDAQ's already talked about it. The NYC's talking about it. Larry Fink's talking about it. Jamie Dimon's talking about it. And the SEC chairman won't stop talking about it.
Andrew Parish 3:07
right so so you have you know from the top down there's ongoing tokenization uh commentary that that won't stop um so it's going to happen it's going to happen quickly and the ripple effects that it's going to have through the financial system uh will be quick and uh it'll it'll it'll cut It'll cut in a serious way that'll make meaningful changes to the financial space and system and the ecosystem. One thing to think about, you know, I'm a big fan of Jeff Park, who's the CIO at your firm, right? Fantastic guy, as smart a guy in the world of finance as I've come across, right? So Jeff Park can stay up for 12 hours a day and do all the things associated with markets, right? But when we get to 24-7 trading across everything, like Jeff can't stay up for 24 hours a day.
Andrew Parish 4:01
You've got to have a second Jeff, right? Or you've got to clone Jeff and have him work the midnight shift.

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