Ghost Engineers, Measuring Productivity, & Memecoin Scams | E2056

Jason and Alex kick off the show (0s)

• Haley Welch, the woman behind the "Haw Tu" phenomenon, launched a meme coin that has not turned out to be a successful investment, and there are concerns that she may be the "mark" for pre-sale investors who have already sold their shares and cleared their profits (8s).
• Haley's entertainment lawyer claims that she is locked up for a year, which could be related to the meme coin's performance (16s).
• The podcast "This Week in Startups" is brought to you by LinkedIn ads, and listeners can redeem a $100 LinkedIn ad credit and launch their first campaign by visiting linkedin.com (32s).
• Vanta compliance and security solutions are also a sponsor, offering a $1,000 discount for a limited time, and can be accessed at ata.com (46s).
• Ramp corporate card and spend management software is another sponsor, offering $250 to new users who join at ramp.com (55s).
• The podcast is hosted by Jason Calacanis, who is joined by co-host Alex Wilhelm, and they have a full news docket to discuss on this episode, which is airing on Friday, December 6th, 2024 (1m11s).
• Jason will share his thoughts on David Sacks being named a White House adviser on AI and cryptocurrency later in the show (1m25s).
• The podcast has two great guests lined up, including Coffeezilla, who will discuss the Hakua coin, and another guest who will share insights into developers (1m39s).

Economic outlook and recent job data (1m53s)

• The Bureau of Labor Statistics (BLS) reported that total nonfarm payroll employment rose by 227,000 in November, exceeding the expected 214,000 number (2m6s).
• Despite the positive jobs data, there is still an 85% chance of a rate cut in December, indicating that the rate reductions are expected to continue (2m17s).
• The economic data is conflicting, with the stock market performing well in the final year of Biden's Administration and the beginning of the Trump bump, but the jobs data is perplexing, with some industries not adding jobs (3m0s).
• The stock market may be getting ahead of itself, and there is a risk of a bubble forming, with inflation potentially rising again (3m23s).
• If inflation rises to 3.1 or 3.2, the numbers will not be perfect, and the economy may become choppy (3m42s).
• Michael Dell tweeted that he did $1.7 trillion in revenue from Dell, starting in his UT dorm room, inspiring entrepreneurs to start companies despite macroeconomic conditions (3m59s).
• The message is to support startups, start startups, invest in startups, and try startup products, as this will make the world better and more fun (4m26s).
• The Federal Reserve's Waller compared fighting inflation to an MMA fight, saying that submission is inevitable, but inflation keeps slipping out of grasp (4m40s).

Reaction to United Healthcare CEO murder (5m12s)

• There has been a significant conversation about the murder of the United Healthcare CEO, with major health insurance companies taking down their leadership pages in response, and it is wondered if having a LinkedIn page will become something that is avoided past a certain level of seniority (5m13s).
• The murder has sparked a lot of pent-up anger towards healthcare companies, with many people expressing their outrage on social media platforms like TikTok, and it is noted that this anger is not just from one person, but is widespread (5m32s).
• Taylor Loren, a friend of the pod, had tweeted about the murder, wondering why people would want the CEO dead, and then doubled down on her statement in a blog post, which was seen as inappropriate and gloating (5m51s).
• It is acknowledged that denying people healthcare is a serious issue, and that people do die because of it, but it is also emphasized that murder is not the solution, and that wishing death on others is not acceptable (6m22s).
• The conversation on TikTok has been particularly disturbing, with people printing pictures of other CEOs and their salaries, and engaging in violent rhetoric, which is seen as inciting more violence and division in the country (7m30s).
• It is wondered if the Chinese are behind some of the online activity, trying to incite more violence and division in the US, similar to what the Russians did during election cycles by exploiting open wounds like healthcare and race (6m47s).
• The murder has resonated across various online platforms, including Reddit, where moderators had to delete a thread about the murder, and it is noted that the sheer amount of anger towards health insurance companies is surprising, and that maybe it's time to work on making health insurance better (8m37s).

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• LinkedIn ads provide access to over a billion members, including 130 million decision-makers who can make purchasing decisions, and 10 million elite-level executives such as Chief Technology Officers, Chief Strategy Officers, and Chief Executive Officers (9m59s).
• According to 79% of B2B marketers, LinkedIn delivers the best paid media results, with users experiencing a two to five times return on their ad spend (10m28s).
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Cancel culture debate and public statements (10m48s)

• The anonymity of the web and people's ability to publish and be amplified can lead to multiple things being true concurrently, and individuals with large followings must consider the impact of their words on their platform and potential consequences, including violence (10m50s).
• When expressing opinions online, it's essential to be thoughtful and considerate, especially when discussing sensitive topics, and to avoid making judgments without knowing all the facts (11m18s).
• The number of people suffering from mental illness in the United States is high, and this can contribute to violent behavior, making it essential to approach discussions with empathy and understanding (12m16s).
• The consequences of violent actions can be devastating, not only for the individuals involved but also for their families, including children who may have to live with the aftermath of their parent's actions (12m41s).
• There is a spectrum of acceptable behavior when it comes to protests, and while some actions may be considered peaceful, others can be violent and destructive, and it's essential to strive for peaceful protests (13m8s).
• Cancel culture is not the answer, and individuals should be allowed to express their opinions, even if they are considered "spicy" or unpopular, as long as they are not promoting violence or harm (13m40s).
• Taylor, who has a large platform, should not be canceled for expressing her opinions, and instead, should be encouraged to speak her mind and engage in open discussions (13m41s).
• There is an expectation for popular individuals to think through the potential impact of their words on mentally ill people, and consider how their statements might be interpreted. (13m55s)
• Mike Solana, from Pirate Wires, tweeted about Information hiring Taylor Lorenz to write something, and asked Jessica about her feelings on the matter, referencing Elon Musk's quote that "cancel culture is canceled." (14m9s)
• A conversation ensued where Jessica was asked if she supported and agreed with Taylor Lorenz's statements, and she replied that she did not, which ended the conversation. (14m30s)
• The discussion raises questions about personal responsibility and whether people are allowed to express uncouth opinions that could potentially cause real-world harm. (14m41s)
• It is suggested that individuals should consider their platform and the potential consequences of their words, and that hypocrisy can be a factor in calling out others for their opinions. (15m15s)
• The concept of cancel culture is discussed, with the idea that it is often a market-based response to unpopular speech in a free market economy. (15m41s)
• An example is given of how someone might express disagreement with an individual's opinions by unsubscribing from a service that employs them, rather than trying to get them "canceled." (15m34s)

Viral tweet about software engineers' work habits (16m0s)

• A tweet from a man named DeeI went viral, stating that many software engineers in Silicon Valley, not just those at FAANG companies, make only a few code changes a month, send a few emails, attend a few meetings, and work remotely less than 5 hours a week, yet earn $200,000 to $300,000 per year (16m10s).
• The tweet sparked a discussion about the work habits of software engineers and the use of tools to monitor employee productivity, including software that takes screenshots of employees' desktops every 30 seconds and monitors keystrokes and mouse movements (17m27s).
• Mark Andreessen shared a story about a high-profile CEO who discovered that some employees were using "mouse jiggers" to fake productivity, and the CEO used employee monitoring software to identify and fire those employees (16m54s).
• Mouse jiggers are devices that move a computer mouse to simulate activity, and using them to fake productivity is considered a form of fraud against employers (17m56s).
• The discussion highlights the issue of trust between employers and employees, with some employees taking advantage of remote work arrangements to do minimal work while earning high salaries (18m13s).
• The topic of employee monitoring software and its use in detecting and preventing productivity scams is also discussed, with some arguing that it is necessary to ensure employees are working honestly (17m19s).
• The conversation also touches on the importance of trust and morals in the workplace, with some individuals sharing their own experiences with taking office supplies and the guilt that comes with it (18m17s).
• The discussion concludes with an invitation to have DeeI on the show to discuss the topic further (18m47s).

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• Founders want to sell to bigger customers, increase their Average Contract Value (ACV), and push their revenue up, but to achieve this, they need to clear compliance checks, including having SOC 2 sorted out (19m3s).
• SOC 2 is a standard that ensures companies keep their customer data safe, and being non-compliant can result in missing out on big deals and not being able to operate at the highest end of the market (19m19s).
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• Vanta automates compliance for GDPR, HIPPA, and more, allowing companies to sell to bigger customers and saving hundreds of hours of work and up to 85% on compliance costs (19m44s).
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DeeDee Doss interview on software engineer productivity (20m8s)

• A thread about "slacker engineers" went viral, naming companies such as Oracle, Salesforce, Cisco, Workday, SAP, IBM, VMware, Autodesk, Viva, Box, Citrix, and Adobe, which sparked a strong reaction from employees at these companies (20m9s).
• The information about these companies was gathered through a combination of personal anecdotes, conversations with software engineers, and a study from Stanford that found 9.5% of software engineers are "ghosts" who do minimal work (22m7s).
• The Stanford study measured productivity based on "git commits," which some argue is not the best way to measure developer productivity, but it sparked a conversation about the issue (22m20s).
• Software engineering productivity is difficult to measure, and it's not just about the amount of code shipped or lines of code written, making it hard to get an accurate view of an engineer's performance (22m57s).
• The issue is complicated, and there are incentives at play, especially in larger companies, that can contribute to the problem of "ghost engineers" (23m11s).
• Personal conversations with software engineers revealed that some people can get away with doing minimal work, including one person who claimed to have been in Mexico for three years without their boss knowing, while still earning a high salary (21m39s).
• The reaction to the thread was strong, with some people confirming that the issue is real and unfair to those who work hard, while others were angry about being "outed" (20m34s).

Management incentives and tech company inefficiencies (23m17s)

• Middle managers at large companies, such as Google, have no incentive to fire underperforming reports, as their promotions are based on having a large team and claiming that their team members are working hard, rather than identifying and addressing inefficiencies (23m18s).
• This incentive structure can lead to a situation where companies have too many layers of management, internal empire building, and "ghost workers" who do not contribute to the company's productivity (23m41s).
• It is challenging to build a company with a strong software engineering component that scales past 1,000 or 10,000 people without falling prey to these inefficiencies (23m59s).
• Most large and successful technology companies have internal rot in their structure that they cannot break away from, with Elon Musk's companies being a possible exception (24m29s).
• Musk's companies, such as Tesla and X, have implemented incentive structures that promote productivity and efficiency, although they are not without flaws (24m45s).
• Running a big organization with the right incentive structures is difficult, and it is rare to see companies that have successfully implemented such structures (24m41s).
• There is a question about whether there has been a shift away from remote and hybrid remote setups in startups, and whether this shift has increased in tempo over the last six to nine months (24m57s).

Shift to in-person work in tech startups (25m16s)

• Many CEOs prefer in-person work, but it's not the only way to work effectively, as companies like GitLab and Astral have successfully implemented fully remote work models (25m16s).
• Research from Stanford on software engineering productivity shows that 99.5% of software engineers do virtually nothing, referred to as "ghost engineers" (26m12s).
• The research model quantifies productivity by analyzing source code from private GitHub repositories and simulating a panel of 10 experts to evaluate each commit across multiple dimensions (26m25s).
• Employers are getting upset about ghost engineers, feeling that it's stealing, and this can lead to an overreaction from management, making the work environment super adversarial (26m42s).
• There are instances of employees who haven't badged in or committed code in years, raising questions about their role in the company (27m8s).
• The waste and abuse of ghost engineers are pervasive and not just one-off instances, with a culture of adversarialness between employers and employees (27m29s).
• The psychology of ghost engineers can be separated into two buckets: one group thinks the work is boring and not their responsibility to manage their time, blaming management for not providing enough work (28m7s).
• The second group feels that there's no incentive to overperform, as they won't receive rewards or recognition, leading them to not go out of their way to excel in their job (29m1s).

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• The software enables the issuance of cards to every employee with set limits and restrictions, eliminating the need for personal card usage and expense reports (29m58s).
• Ramp customers reportedly save around 5% on their expenses every year by being able to control and adjust spending limits (30m19s).
• The software automates expense reports, and Ramp will also handle tasks such as chasing down missing documentation and requesting repayment (30m30s).
• Ramp is user-friendly, allowing businesses to start making payments in under 15 minutes, and new customers receive a $250 bonus upon joining (30m39s).
• The company behind Ramp is partnered with Sutton Bank, a member of the FDIC, and terms and conditions apply to the use of their services (30m57s).
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Remote work psychology and potential abuse (31m20s)

• Some employees are being moved to hourly consulting jobs, which raises questions about how to monitor their productivity, as simply tracking screen time or commits may not accurately reflect their work. (31m20s)
• Engineering is a complex job, and it's challenging to determine whether an employee is doing their job based solely on metrics like commits, as some tasks may require more time and effort than others. (31m47s)
• At Google, different types of engineers, such as front-end and search ranking engineers, have varying levels of productivity, making it difficult to assess their work based on hours or commits. (31m59s)
• Many employees are expected to work more than their contracted hours without receiving overtime pay, which can lead to burnout and exploitation. (32m56s)
• Some employees may choose to work less and still receive the same pay, which can be seen as a rational economic decision, but this can also be perceived as "stealing" from the company. (33m23s)
• There is a concern that employees who abuse the system by not working enough hours can give remote work a bad reputation and make it harder for others to work remotely. (34m16s)
• Some managers use metrics like meeting attendance to gauge productivity, but this may not be an accurate measure of an employee's work. (34m29s)
• Google's hiring strategy in the early days was to hire smart people in Silicon Valley, regardless of whether they had a specific role in mind, and give them 10 times the perks, in order to remove talent from the playing field and have optionality for future projects (35m42s).
• This strategy led to a culture where employees were encouraged to work on side projects, with 20% of their time on Fridays dedicated to whatever project they wanted (36m27s).
• However, this culture has led to a lack of loyalty from employers to employees, resulting in employees feeling valid in prioritizing their own interests over the company's (36m40s).
• To address the issue of remote work and employee productivity, companies need to implement monitoring software on employees' computers and conduct spot checks to ensure employees are working during work hours (37m1s).
• This approach is also necessary in government jobs, where employees should be required to work a certain number of hours per day and week, and be present in the office for a certain number of hours per day (37m17s).
• The current debt crisis in the US requires cost-cutting measures, including stricter requirements for government employees (37m28s).
• Firing 80% of Google's engineers would be difficult due to the company's diverse range of products, but firing 50% might be manageable (35m17s).
• Some employees at Google have been known to not contribute to the company for extended periods of time, with one example given of someone who hadn't done anything for 10 years (35m38s).

Strategies to prevent remote work abuse (37m35s)

• Firing a significant percentage of men in a company would likely not have a positive impact on its productivity, as every team believes they are essential and cannot be cut. (37m56s)
• In smaller teams, typically under 50 or 30 people, there is generally nowhere to hide, and creating a culture where leaders put in effort is the number one way to manage remote work abuse issues. (38m21s)
• Leaders setting the tone by working hard and being responsive, even on weekends, can help prevent remote work abuse, as it gives them the high ground to manage their team's productivity. (38m36s)
• However, when leaders of big companies, such as Mark Zuckerberg, are seen not following their own rules, it can create a sense of hypocrisy and lead to employees feeling it's okay to abuse remote work policies. (38m56s)
• The concept of being "overemployed" and having multiple jobs is also mentioned, with David Sack being cited as an example of someone who has successfully managed multiple jobs. (39m12s)

Hayley Welch interview on viral meme coin (39m24s)

• Hayley Welch, the woman behind the viral "Haw Tu" phenomenon, launched a meme coin that did not turn out to be a successful investment (39m53s).
• The meme coin has not replaced reserve currency or been an alternative to buying the QQQ or a low-load Fidelity Fund (40m11s).
• It also has not outperformed real estate in a major booming city, unless the chart is viewed upside down and backwards (40m25s).
• Coffeezilla, a YouTube personality known for investigating scams, is mentioned as someone who might be able to provide insight into the meme coin's performance (40m40s).
• Coffeezilla has a YouTube channel where he looks for scams and has been mentioned in the context of investigating other potentially questionable investments, such as the Michael Sailor stuff (40m47s).

Coffeezilla's investigations into scams and frauds (41m0s)

• Coffeezilla is a detective who investigates and exposes fraudulent activities, particularly in the cryptocurrency space, and has gained a large following with his videos going viral and receiving millions of views (41m0s).
• A recent example of his work is the exposure of the Hawk Tua meme coin scam, where 3% of the tokens were allocated to the public, and 177% were unlocked on day one, allowing insiders to sell for millions of dollars (41m34s).
• The problem with many of these token launches is that there is a lack of understanding about how tokenomics can affect the launch, allowing insiders to rig the system in their favor (41m55s).
• Influencer drops have become increasingly common, especially in bull markets, and often target unsuspecting investors, referred to as "normies," who may not fully understand the risks involved (42m15s).
• One of the individuals involved in the Hawk Tua meme coin, Doc Hollywood, stated that their audience does not even know what market caps are, highlighting the need for greater protection for unsophisticated investors (42m30s).
• There are different types of tokens, including utility-based tokens that power a specific service, and meme coins, which are often used for speculation or pumping and dumping (42m58s).
• The Hawk Tua meme coin did not have a stated purpose, with Doc Hollywood saying that the great thing about meme coins is that there are no promises, but they would build a great community around it (43m45s).
• The individuals involved in the Hawk Tua meme coin, including Doc Hollywood and Haley Welch, used their influence to promote the coin and monetize their audience, despite claiming not to be making any promises (44m11s).
• A cautionary tale is shared about an influencer who promoted a memecoin, resulting in her making $125,000, but ultimately putting her reputation at risk as the people behind the coin will likely move on to the next influencer, leaving her to face the consequences (44m27s).
• Influencers are warned to be cautious when promoting financial instruments, especially those that are essentially gambling, as they will be held accountable if people lose money (45m24s).
• The concept of a memecoin or shitcoin is discussed, with the conclusion that it cannot have real value and is often used as a vehicle for near-term speculation (45m53s).
• The term "community" is criticized for being overused in crypto, often meaning speculative pump and dumps, and is seen as a way for creators to decentralize their responsibility and shift the burden to others (46m12s).
• Alternative methods for creators to monetize their content and engage with fans are discussed, such as newsletters, Patreon, and YouTube subscriptions, which are seen as more legitimate and transparent ways to support creators (46m52s).
• The existence of these alternative methods is cited as evidence that memecoin promotions are often scams, as they are unnecessary and serve only to enrich the creators (47m16s).

Cryptocurrency red flags and influencer consequences (47m42s)

• The use of a beehive as a legitimate way to organize and manage a community or project is mentioned, highlighting the difference between this approach and creating a coin, which can be seen as a red flag, especially when there's an element of potential financial gain being pitched to participants (47m44s).
• The blurring of lines between finance and mainstream culture has led to a lack of clear regulatory direction, resulting in a gray area where the rules of the road are either not enforced or not clearly defined (48m36s).
• Some projects may go offshore to avoid regulatory issues, which can raise red flags, and the use of a foundation to manage funds can be a way to hide the beneficial owners and their interests (49m0s).
• The lack of transparency in some projects, such as the Hawk to a Meme Coin, raises questions about the use of funds and the identity of the people working on the project (49m39s).
• The importance of doing on-chain research and investigating projects thoroughly is emphasized, especially for influencers who may be promoting or investing in these projects (50m8s).
• Several examples of scams and projects that have resulted in fines, indictments, or jail time are mentioned, including Safe Moon, which promised to automatically lock up tokens and had an unrug LP, but turned out to be false (50m33s).
• The consequences of promoting or investing in these types of projects can be severe, and it's essential to be cautious and do thorough research before getting involved (50m53s).
• Other examples of scams and projects that have been covered include Jay Mazini, who claimed to buy Bitcoin at elevated prices, and the Fire Festival, which was a failed event that resulted in fines and lawsuits (50m57s).
• There are real consequences for engaging in illicit activities, such as going to jail, but the problem is that it can take a while and feel like a lottery whether one gets caught or not (50m58s).
• The cases involving regulators take too long, and the enforcement is sporadic, similar to getting a speeding ticket where not everyone gets caught, but those who do may face severe penalties (51m13s).
• Many people who make money from crypto are the developers or those who have been in the industry and have spun up multiple coins, while others who get promised a lot may not be as fortunate (51m43s).
• In the case of Haley's entertainment lawyer, it is alleged that she was locked up for a year while the pre-sale guys had already sold, suggesting that she may have been taken advantage of (51m55s).
• Theoretically, Haley may have been a "mark" for the pre-sale guys, but without seeing the contract, it is difficult to say definitively (52m11s).
• If Haley did make $125,000, it is suggested that she should either donate the money or completely divest from it, as it could be seen as a speaking fee or personality appearance fee (52m25s).
• With Gary Gensler leaving the administration, a new person is expected to take over and make a clear set of new rules for crypto, which is seen as necessary for the industry (52m40s).

Crypto regulation and influencer marketing ethics (52m50s)

• A potential solution to the issues with cryptocurrency projects is to create a simple registration process for projects under a certain dollar amount, which would include know-your-customer (KYC) requirements and a framework for investment limits, such as 1% of an individual's yearly salary (52m51s).
• Implementing a test for sophistication, similar to a driver's license, could help educate investors and reduce the risk of people getting hurt by unscrupulous projects (53m30s).
• The test could include questions on market capitalization, safe notes, and diversification, and would aim to ensure that investors understand the risks involved (53m40s).
• Having a clear path and rules of the road for cryptocurrency projects could help prevent trouble and reduce the influence of marketers and influencers who often promote projects without fully understanding them (55m20s).
• The lack of clear regulations and education can lead to situations where individuals, including influencers, are offered large sums of money to promote projects they don't fully understand (55m35s).
• The heart of the issue is that people should be able to make informed decisions about investing in cryptocurrency projects, and that education and clear regulations are key to achieving this goal (54m18s).
• There is a lack of clear rules and regulations in the marketing of certain assets, leading to confusion and potential law-breaking, with accountability needed on all sides to establish clear guidelines (55m59s).
• The importance of investing in assets with value is emphasized, rather than promoting an economy of speculative assets, which can be detrimental to financial literacy (56m18s).
• The blockchain and cryptocurrency can be both a great place for fraud and scams, as well as a platform that allows for transparency and vetting, due to the permanent and trackable nature of transactions (56m49s).
• The concept of pseudonymity in cryptocurrency is discussed, where transactions are tied to a wallet but not necessarily to a specific individual, making it easier to investigate and track activity (57m32s).
• Influencers and public figures need to be thoughtful about the sources of their income and the projects they promote, as they often receive offers to endorse scams or predatory schemes (58m0s).
• Some individuals are paid large sums of money to speak at conferences or seminars that may be promoting scams, and while this can be a legitimate trade of services, it's essential to be aware of the potential for predatory activities (58m26s).
• Scammers may use tactics such as taking pictures with celebrities to build credibility and promote their schemes, which can be misleading and deceptive (58m56s).

Influencer credibility and responsibility (59m3s)

• Influencers have a responsibility to be credible and authentic, as their followers look up to them and may make financial decisions based on their advice (59m3s).
• Some influencers promote expensive courses or mastermind groups, which can be scams, and people need to be cautious when investing large amounts of money (59m15s).
• It's essential to research and verify the credibility of an influencer before investing in their promoted products or services (59m25s).
• Influencers are often paid for their credibility and association, not just their time, and they need to be mindful of the products or services they promote (59m52s).
• There's a difference between being reckless with one's own money and promoting questionable investments to others (1h0m26s).
• Influencers need to understand that their credibility is huge, and that's why they're paid to promote products or services (1h0m46s).
• Some influencers have a calculation of their followers' wallet size and target them with expensive products or services (1h0m54s).
• One influencer, Jason, claims to never sell out his fans and only does things for free, including cameos, and encourages donations to charity instead (1h1m6s).
• Coffeezilla, a YouTuber, is appreciated for exposing scams and promoting awareness, and is encouraged to continue doing so (1h1m31s).
• There's a case of an influencer, Joshua Block, who is being taken advantage of by people around him to launch a memecoin called Block Coin (1h1m52s).
• Joshua Block is believed to be a victim, as he may not know what's going on, and is being exploited by people, including a former pimp who is promoting the coin (1h2m26s).
• The situation with Joshua Block and Block Coin is being monitored, and it's a sad situation that highlights the need for awareness and caution in the influencer space (1h3m12s).

Coffeezilla's assignment and Rabbit AI device insights (1h3m21s)

• Coffeezilla was invited to the show, and his reporting on the Rabbit AI device was considered fantastic (1h3m23s).
• Coffeezilla had done a series of videos on the Rabbit AI device, which was a popular topic of discussion earlier in the year (1h3m34s).
• The founder of the Rabbit AI device had previously appeared on the show and seemed like a good person, but further background research is needed (1h3m47s).
• The Rabbit team had emailed to request another appearance on the show to demonstrate the product's progress (1h3m57s).

David Sachs announcement and AI/crypto in government (1h4m1s)

• David Sacks has been appointed as the "Zar" for AI and crypto, advising the president on these two issues, which is a significant portfolio for one person (1h4m4s).
• The appointment was announced by President-elect Donald Trump, and Sacks is considered one of the smartest, hardest-working, honest, and ethical people, making him a great fit for the role (1h4m26s).
• Sacks has experience in both AI and crypto, having co-founded PayPal, which was the first digital money platform for consumers, and having invested in AI through his involvement with Craft (1h5m54s).
• The role is believed to be an advisory position, but the details are not yet clear, and it is uncertain how much influence Sacks will have on policy decisions (1h6m18s).
• The appointment has sparked mixed reactions, with some people congratulating Sacks, while others, including high-profile ex-users, have expressed skepticism or even ridicule (1h7m8s).
• The term "Zar" is believed to be derived from the Russian word for "Caesar," essentially meaning a person in charge of a portfolio of things (1h6m34s).
• Sacks' appointment has also raised questions about the potential for overregulation in the AI and crypto spaces, and how he will balance the need for regulation with the need for a free market (1h4m55s).

Regulatory capture and Silicon Valley dynamics (1h7m25s)

• There is a dynamic in Silicon Valley where companies in the lead often support regulation, while those behind may want less regulation, a concept known as regulatory capture (1h7m41s).
• Historically, incumbents tend to support more regulation to maintain their lead, while newcomers may want less regulation to have a chance to catch up (1h7m51s).
• Sam Altman has been a strong proponent of regulation, which may be due to his company's position in the market, while others like Bill Gurley have also spoken out about regulatory capture in the context of AI (1h7m44s).
• Vinod Khosla has argued for a more closed approach to AI development, citing security concerns and the need to keep it out of China's hands, which may be influenced by his investment in Open AI (1h8m9s).
• There is a concern that people who work in government and have investments in companies may be influenced by their personal interests, and it would be ideal if they put their assets into a separate trust to avoid conflicts of interest (1h8m30s).
• The issue of regulatory capture and conflicts of interest can lead to complex and messy situations, and it is hoped that smart people will be aware of these issues and work to avoid them (1h8m54s).
• When working with the public purse, there is a need for transparency and accountability to avoid conflicts of interest and ensure that decisions are made in the best interest of the public (1h9m12s).

Market perspectives and government influence (1h9m15s)

• The individuals involved in the current market perspective want to see less public funding and a smaller government, aligning with free market principles and less regulation, which benefits consumers and promotes competition (1h9m15s).
• Those who are part of this group, including those surrounding Donald Trump, are in favor of smaller government and less regulation, which is expected to lead to more competition and consumer benefits (1h9m37s).
• The system is designed to quickly highlight and address any nefarious activities, as the media, public, and competitors will focus on anyone benefiting personally (1h10m4s).
• There is hope that the free market advocates in Texas will be able to make weed legal in the state (1h10m16s).
• Dune, a blockchain data search company, has been added to the "Twist 500" list due to its excellent performance and potential for capturing upside in the current bull market (1h10m27s).
• Dune offers two types of monetization, SAS and usage-based, and has raised nearly $80 million from investors such as USV and Coatue (1h10m41s).
• The company's data analysis platform allows users to query and visualize public blockchain data, making it a valuable tool for identifying patterns and trends (1h11m3s).
• Union Square Ventures, led by Fred Wilson, is an investor in Dune, and their involvement is seen as a sign of the company's legitimacy and potential for success (1h11m18s).
• The returns of Union Square Ventures are extraordinary, and their investment in Dune is expected to contribute to the company's growth and success (1h11m30s).