TEXITcoin Legal Update: Economic Reality, Miner Participation, and Costs

This is not a real fraud case. They know that they included a false allegation in their cease and desist order. It should be struck. The state's entire case comes down to who plugs it in, who cleans the hoses, who does the maintenance. That's logistical work. It's an absurd position. And that brings us to the fraud allegations, which in a word, are frivolous. That the state has overreached here, well beyond its statutory jurisdiction. That the state has failed to meet its burden of proof. There is no evidence. It is undisputed. Bobby Gray never lied. Never. Giddy up, let's mine. Hello and welcome to another week of Honest Money Miner Update. I'm Matty Allen. I'm one of the co-hosts here. And here's our fearless leader. Honest Money Miner Update. I was making myself a cup of coffee. I got a splitting headache right now. It's rocking. I just took two white pills, whatever they happen to be. And Matty said, make yourself a coffee. I thought, that's a great idea. Really? Oh, it's probably going to be hot. taught let's see if it helps how many videos did you have queued up there at the beginning of our of our little intro i've got a number in the catalog you just kept pulling them out one by one until i showed up he's not here yet roll the next one well good afternoon everyone uh bobby gray as maddie mentioned joined by my co-host here slash producer slash road to rogan expert tell me about the road to rogan what is that well there's there's this awesome war uh that that some of our miners are aware of that uh you had a long history of monetary uh you know better ways than the dollar to do things and uh and then one day everything kind of came together when you were listening to a joe rogan podcast and you i think it was michael malice who mentioned something about texas of course which which is the uh the idea of brexit uh uh where great britain was going to secede from the eu over monetary policies and and other issues and uh so so the idea for texacoin kind of was was well prepared in your minds and then then that's what you decide to call it as as the lore goes and so as we've been developing this honest money live podcast it it seems like like a natural uh you know, goal and conclusion to bring everything full circle to say, well, if we're going to aim high, why not try to get you on Rogan by, by building influence with so many other, other podcasters. That is the plan. It's a lofty goal, but it's a good one. And that is where this whole adventure began. Not, um, Not the original version of it, but the modified digital currency version surely did. Real quick walk down memory lane. Started American Open Currency Standard in two thousand and eight gold, silver, copper coins for many years, quite successfully. I don't know if people know this, but Alex Jones was actually the number one. salesperson, marketer of AOCS approved coins back in the day on his InfoWars thing that he did with, man, what was the name of the company he worked with? I don't even remember. It's a long time ago. Midas Resources if you guys remember Midas Resources going way back there anyway long story short heard that episode Michael Malice and Rogan talking about Texit Rogan was dead set against it Michael Malice who I think is probably a pretty pretty solid small L libertarian and anarcho-capitalist and a big fan of Ayn Rand objectivism I I'll never forget the first time I ever heard malice on Rogan. He was talking about something and he just wouldn't he wouldn't back down from it. A lot of these guests get on Rogan, you know, and Rogan will challenge him on something and they might have a discussion about it. But I think Malice was talking with Rogan about. Maybe maybe it was like the CEO of a news station. And the news station was reporting really terrible fake stuff. And I think Rogan was talking about how the CEO of this news network was really not a bad guy. And Malice is like, if he's not a bad guy, then how can he let people get on his program and lie? How can they spread false information on this network if it's run by someone who's not really a bad guy? There's this big incongruency there between this supposedly not a bad guy and these people that are doing bad things on this mainstream news network. Anyway, I digress. Point is... That's Michael Malice. He was on Rogan and they were talking about Texit. And I said, that's a great idea. I'll make a commemorative coin to tell that story. And I didn't. I made a digital coin and that's where our version of this story begins. Anyway, thanks so much for joining us today. It is, I don't know, Tuesday, October, this is week one, thirty four of us doing this kind of thing and sharing our time with you to spread the message of honest money through digital currency. Share with you important updates as we will get into shortly. And just spend a couple minutes together answering questions and going through the basics. I am now in Portugal. I have been working my way west over the last month. Dubai, to Egypt, to Athens, to Italy, to... France. And now, well, I guess I skipped over Spain and now I'm in Portugal. And so I'm now GMT plus one. I am as close to USA time zones as I've been in a very long time. And I will get even closer in just the next couple of weeks as I venture down to South America to do more exploration. So it's good to be here. It's good to connect. But it's terrible being here during noon when people have lunch responsibilities and surely better things to do than listen to me wax on about Michael Malice. But also with a headache. Gosh, terrible. Hopefully it goes away soon. I'm trying to down this coffee and we've got some work to do. Okay, so what I want to talk about today is In the title of this week's show on Stream TXC is Economic Reality. And I want to talk about economic reality today because we've had another legal update from our friend ALJ in the Texas State Security Board versus Texas Coin case. Maddie, did you have a chance to read through the ALJ's latest order? I read the order. I don't know if there's an article that's been put up. I'm not sure if I've read that yet. Nope. No article that went along with it. Just the order itself and a little blurb on the Texacoin website to give you a quick summary of what's in it. And I got the email with the order yesterday from council and they said, this is good news. This is very good news. And I read it and I go, eh, I don't care. And that, unfortunately, has been my attitude since two months ago. It was two months ago that do, do, do. Court's adjourned. Dismissed. Go home. Do something else. Seventeen, eighteen, nineteen, twenty. August. Four days in Austin. And it concluded on the twentieth. So when that case started. hearing concluded, I was done with the whole thing. You know, I hadn't paid all the bills at that point, but, you know, I was pretty sure of what happened. I was, I was sure that what I thought, my recollection of the historical evidence and record was true. And it was confirmed to be that way in court. And so I stopped really taking it seriously after that point. And I never expected this judicial process to continue. Here we are two months later, and it goes on and on and on. And so we're going to spend some time talking about economic reality today, specifically after we get through these updates. So I'm going to share my screen with you and see if I can find the updates. There they are. Here I am. So here's my screen share, share screen, share my window. And it is that one. Share it. OK, so here is here is the page. And of course, at the top, we've got a little bit of a blurb that we've stuck to the top about going to court. But this page contains all of the chronological things that have gone down in this case, all the way back to the very beginning where we initially post the cease and desist to going to the actual hearing itself. and our review and update of it, the letters that were sent, the briefs that were filed. And now we've got a new update. And the new update just came out yesterday, and it's a list of questions that the judge has asked both sides, us and the TSSB, to directly answer. And so if you pull up this document here and you get to the actual order itself, You can go down and you can see specifically what those questions are. The judge has specific issues to address in the reply briefs, which are due on the twenty third. Each party must answer the following questions in its reply brief with citations to support authority or record evidence. And so the judge doesn't want to see any new evidence. The judge wants to see what's in evidence already that answers these questions. And the questions are pretty good. The reason that I think that our council was optimistic about it is because the questions really begin to focus in on the things that we believe to be extremely deficient in the tssb case and so the tssb said blah blah blah we went to court we didn't see much evidence supporting blah blah blah and so these questions specifically address those missing blah blah blahs And so to go through them real quick with you, number one, refund authority is an order affirming or modifying an emergency order under blah, blah, blah, within the meaning of what this four thousand seven dot one oh eight a says identify any prior order of the Securities Commission or requiring refunds in the proceeding under four thousand seven dot one oh four. What does that mean? We've never seen it done. Our council has never seen it done before. No one's ever seen it done. And so in the original order affirming or modifying the emergency order, they said, oh, and everybody gets a refund. Well, do you guys have the authority to do that? Well, we get whatever authority we give ourselves, right? Isn't that how it works? Well, not all the time. So the judge is specifically saying, what refund authority do you have? Where did you get it? Number two, along that same line, refund measure and scope. The notice of hearing sought refunds equal to each investor's principal investment, less returns or profits paid for purchases on or after September first, twenty nineteen. Not really sure what's going on there. But the staff's initial brief seeks the full amount paid and does not address the September first start date. Staff must explain the change in the measure and whether the notice of hearing gave respondents adequate notice of it. So they're saying the TSSB switched it up mid-process. And like, why? And did you give us sufficient notice of that little switcheroo that you did? And so that's interesting. Number three is my favorite, kinda. Number three goes on to say, OK, elements of fraud by omission in the proceeding under four thousand seven one oh four. What must staff prove to establish an intentional failure to disclose a material fact? Address whether a duty to disclose reliance and injury are required and what intent must be shown. So if you go back to the original. cease and desist you may recall that there was all this allegation of fraud in there and we were like well that's really weird because it's not true but it's even weirder because this says according to the law that we intentionally withheld information well like what information Was it that we intentionally withheld and how could we intentionally withhold it? And I was just thinking to myself, I'm like, man, do these guys have some sort of like undercover video where somebody asked me if I went bankrupt in twenty thirteen and I like flat out denied it? That would have never happened. But do they have that? Is that what they have? Maybe there's some AI Roe Bobby, you know, made up thing somewhere. Well, like I couldn't think of what they could have because it doesn't exist. But the question is, like, why would they say that I intentionally did it unless they could prove it? That seems like a really good, clear, simple place for them to have some sort of evidence, which, of course, they didn't have because it doesn't exist. And so now the judge is saying, okay, when we're talking about this intentional failure to disclose material facts, like what intent must be shown? What does intent actually mean? We're gonna take it one step further and try to figure out what material means. If you tuned in to the actual hearing itself, they had some witnesses that showed up for the TSSB. And those witnesses basically read this rubber stamp document that the state had them fill out and prepared for them. Yeah, I gave them money and I was expecting to get a profit and I was not expecting to do any work. Okay. If you had known that Mr. Gray had gone bankrupt, would you have participated? No, no, absolutely not. That would have definitely changed my mind. You think he was being very unfair and dishonest since you didn't know that. Yeah, yeah, yeah. Totally dishonest. Great. Did you ever go bankrupt? Yeah. Do you tell your clients and customers that you went bankrupt even if they don't ask? No. Do you think that's being unfair or fraudulent? No, no. It's totally different when I do it. And that was a really fun thing. It was like, you know, full of laughs and hijinks. But what it proves is that it may not be as material as the state fill out this form and sign on the bottom would like to have the court believe. Anyway, you saw that, hopefully appreciated it as much as I did. Anyway, that's one of the things on the list. Next one, modified fraud theory. Staff initial brief proposes modifying findings and argues in section eleven that purchasers were not told that the names used in the offering were all Mr. Gray. Staff must explain how each proposed modification and the section eleven theory fall within the allegations of the emergency order. I have to admit that I didn't know what most of these things actually mean in legal stuff. I read it and I was like, yeah, it just seems like questions. Well, when you understand it from the legal side, all of these things indicate that the TSSB's got some holes and is going to have to kind of prove up why they have those holes there. For me, I'd really like them to just be like, you got a lot of holes. You didn't prove it. We're just going to throw this thing out. The whole like, here's another opportunity for you guys to like, win over the judge on this impossible task. We'll see how it plays out. All right. Other questions. Timing of public harm. This one also doesn't really make much sense to me. Should immediate and irreparable public harm be measured as of the date of the emergency order or as of the date of the hearing? I don't know what that means. Federal guidance. This is another interesting one. Respondents rely on the US Securities and Exchange Commission's guidance, blah, blah, blah. Staff's initial brief does not address it. So to me, it's like the staff is kind of pretending that this federal guidance doesn't exist. And there's more federal guidance and more federal guidance that came out since the cease and desist was issued. I'm not sure. I think one or two things came out since we actually had the hearing. So like, what is the state of Texas going to like do to consider its investment contract test? And how does it apply to purchasers who did not operate their own mining equipment? All right, moving on. I think number five might be something about like how the TSSB harmed us. And maybe our lawyers made some sort of argument to that effect. And they need to answer like, you know, with money in sales stopping, what's the date they're, you know, alleging that? Let's go to our AI Harvey legal helpful person guy and see what Harvey has to say. That's supposed to be good. That's the general quick question. What do you make of this question? come back to harvey in just a moment when harvey has had a chance to consider the question okay so moving on joint stipulation of undisputed facts can you guys make us a list of the stuff that you agree on um and here's where it gets a little interesting and this is kind of funny and par for the course because If you guys tuned in last week, I think I mentioned last week that we have made the decision to bring on new counsel. We paid top dollar for our friends over at Quinn Emanuel. They did an absolutely spectacular job. They charged for it. It wasn't cheap. And I'll show you guys something here in just a moment. But now that the heavy lifting is out of the way, it's time to start to bring those legal costs down. So we've got local council, much less expensive. And... And so now we're going to rely on those guys to kind of take us home here. But now I decided that. I knew in my mind that it was the right time. We did what we thought was best back when we had very little information. We've learned a lot since then. And I said, okay, it's time to bring the cost down. We haven't exhausted the budget, but we need to start thinking long-term because we don't know how long this thing is going to last. Sure enough, the day after... I made that decision and I felt pretty good about the decision when it was made. But the day after that, we get an order from the judge extending the decision in an additional ten or eleven days. And we said, oh, see, exactly. Just like I thought this thing is going to just keep going and going and going. worked with some AI and found out, sure enough, that we're really in act one right now. The judge's decision isn't a decision. It's a recommendation that goes back to the TSSB, which they can accept or they can ignore. And so it's like, well, what happens then? So we thought we were going to get a recommendation from the judge two, three weeks after the hearing ended, which would have put us at early September. Then we find out that we're not going to get this decision from or this recommendation from the judge until late December. One day after I said, OK, we need to manage this timeline better. we get this order from the judge saying, plot twist, it's gonna be early January before I make my recommendation. Well, not anymore. Because the order that came out with these questions has given the judge an additional extension. And so the evidentiary record now closes out November twenty eighth, twenty twenty six and measuring this, that and the other thing, adding in some extra time off for vacations and holidays. The PFD proposal for decision is due from the judge January twenty fifth. And I said, oh, yep. Okay. Yeah, I see that. That makes a lot of sense. So I felt good about the decision when it was made. I felt even better about it the next day. I feel really good about that now. Because we have to be good stewards of our resources and we've got to stretch that timeline as far as it'll go, give ourselves the longest runway possible to succeed. Whatever that looks like, we've got to get it done. We don't give up. Honest Money doesn't quit. And so knowing now that this timeline could continue months, months, months longer than originally anticipated. I mean, we're way, way past what we anticipated already. It's encouraging to know that we made a good decision when we switched up council and started to bring our costs down. I have launched a new site, having said all of that about money and decisions, called Beans. I think we talked about beans a little bit either on Tuesday or Thursday. Beans is the new proof system. The difference between beans and what we had before is that beans aggregates all of our financial information from across the ecosystem and brings it together in one place. So it's now not just mining and revenue and sales and commissions, but now it's stuff that comes in from all over the place, including legal costs, including payrolls and so if you go down this page now a little bit you can focus in a little bit better go into the overhead and administration click on legal and you can see that we have now officially paid out of pocket more than five million dollars remember this is a cash based accounting system here And so it's not bills that we expect to have to pay. It's bills that we actually did pay with exact cash amounts. And so here is our list of legal expenses. And you can see that Quinn Emanuel, if you narrow it down to just them, It's over four million bucks. Two point three plus one point one is three point four plus five hundred is three point nine. There's four point three and sixty five. Man, it got expensive quick, didn't it? And so the beans website, beans.honest.money is where you can go to see that proof information now and get direct access to payment receipts, transaction IDs, invoices, all that stuff. So you know exactly where the money's going. Brutal transparency, I think we call it. But it's right there on that page. Go and check it out if you've got time. But here's where it goes for me. What happens for me is I try to figure out what this whole thing's about and why this whole thing is continuing. Why haven't these guys given up? Excuse me. Where's my water? This is some water. You would think after the embarrassing performance in court, they'd go, okay, yeah, that didn't go well. Maybe we need to just leave these guys alone. You'd think that the SEC was watching this. You'd think that the SEC was reading their own memos, their own frequently asked questions, which we've been through a couple of times now. You would think that they would just like, Look at all the information, look at the evidence, and just kind of call it a day. It means a couple different things to me. I translate this a couple different ways. Number one, what we're doing actually matters. For a long time, I was doing gold and silver. I never heard from the SEC. I was doing bartering, community currencies, fairs and festivals. SEC never bothered me. Why? Because it's small, small potatoes, man. It's local. It doesn't have the ability to really create a whole bunch of drama or competition for what they're doing. It's not a big deal. When we're talking about crypto, it becomes a really big deal. We've already seen what the Bitcoin community has done. We've already seen what the altcoin community has done. We've already seen what the potential is with digital currency. It goes really far, really fast, one side of the planet to the other. And if you try shipping boxes of silver and gold and copper coins from place to place, man, it's hard just inside of the U.S., But when you're talking about digital decentralized peer-to-peer money, it goes fast, it grows fast, and it has a real chance of changing the banking and financial system as we know it. I think that there's a real shot here. I wouldn't be doing it if I didn't think there was. So that's the first thing. It means that what we're doing actually matters, and it actually might have a chance to succeed. They wouldn't care... If they didn't see us as a credible threat. And that makes me really, really happy. But number two is there's still something about what we're doing that they don't like. And I think that's really what it comes down to. You know, because look, who doesn't like honest money? Is it possible that the SEC people are sitting there saying, fiat currency. They're like holding up signs in front of like Satoshi Nakamoto's house saying like, continue the Fed, continue the Fed. Like, I don't think that's true. I don't think that that's how they feel. I don't think that anybody except for a banker is a real big fan of dishonest money. So if they're not like hating on us for ideological or philosophical reasons, they must really think that we're doing something wrong. They must really think that whatever it is that we're doing is somehow fundamentally breaking the law. And I think that that's an important thing to at least stop and consider from their perspective. I think that that's a fair thing. I do that all the time. Always what I do, something goes wrong and I say, what did I do? What did I mess up? What kind of mistake did I make that has led us to where we are today, where we're spending all this money on legal fees and we're having people not want to participate because they don't want to break the law. They don't want to get in trouble. They don't want their record subpoena. They don't want to have to do depositions. Totally fair. So let's pause for a moment. And reflect on what's really at stake here. They either hate honest money or they think that we're really breaking the law. They think that we're really legitimately doing something wrong. And we know what their kind of opinion and perspective is on it. Because we've heard this term over and over and over again in court. We hear economic reality. We hear about economic reality and substance over form. This is an interesting one because it's the reason that it doesn't matter if you do or don't say the word investment. This is a pretty common one with projects that I've seen. Like, no, no, don't call it an investment. That's a dirty word. And we can do anything we want as long as we don't call it an investment. Are you familiar with that line of thinking? Yeah, totally. We just can't say that dirty word because that dirty word is reserved. Well, it's not really true because you can invest in a house and You're going to invest in like a relationship that doesn't automatically make those things securities. But the general like, you know, accepted theory is. is that as long as you don't say the word invest, then it's not an investment, and we won't get in trouble. It's not true. It's not true at all. You can use the word invest, investment, anytime you want. The SEC doesn't own that word. It's not copywritten. It's not trademarked. You can use the word invest. But you do remember in court, they go, Mr. Gray, what did you mean when you said ROI? Did you say ROI? What does the I mean in ROI? Well, it means investment, return on investment. If you invest your time into something, you'd like to get a return. It's not a security. So form over function, function over form, substance over form. Wait, what's the exact line? Hold on, I had it here. Substance over form, economic reality. We heard it again and again and again in court. And so I wanna play a six minute video with you here. And I don't know if my audio is gonna share properly, but let's see if it does. and this is the video that we put together to kind of explain the how we test and i'm going to like skip over some stuff to speed it up but let's see if i can find a way to share this thing properly did i did i share my audio i don't know if it's going to share my audio stop screen sharing screen share share screen aha yes share system audio there's the button That's the window. Share with audio. Be careful sharing stream with audio. If you have a guest, they will hear it themselves. Okay, well, let's see what happens. So this is a cool video that we put together to talk about securities and how we test. Crypto equals freedom. The future is ours. Regulators, you can't stop this revolution! Can you hear my audio? We will win! It's easy to get excited about the potential unlocked by honest money and cryptocurrency. But before you grab a megaphone and share your excitement with the world, it's important to learn a few basics to orient yourself in the right direction. First, be sure to consult licensed professionals for legal and tax guidance. The crypto industry is evolving quickly, the rules change from time to time it's best to get good advice from the pros remember we're here to bring a positive change to the world not break the law quite often there's a very fine line between the two and knowing where that line is will help you stay on the right side of it There are very few places on earth where individuals are not allowed to decide for themselves how they want to exchange value. Whether it's dollars or chickens, metals, community currencies, or just about anything else. Most people, especially in America, are free to decide what form of payment they choose to spend or accept. In fact, even legal tender laws don't force you to use dollars. They just make it lawful for you to discharge a debt with the national currency. So why then is there so much fuss around cryptos and government regulators? There are many theories, but the most likely answer is that, because good cryptos seem to go up in value, interest in them is similar to what draws people to securities. And securities, like stocks and bonds, are heavily regulated and closely monitored. So we're going to try to skip ahead here a little bit to our little example. The cryptocurrency ecosystem, what's known as the crypto project, is like a test. The money is a categorization expected almost exclusively from the work of others. If the answer is yes to all four, then it's probably a dictation of, and this is where we go back to this. Second, the crypto project is likely to be a security. There are four main prongs to the test, and all four of them must be satisfied to effectively fail the security test. First, a security involves money. That seems simple enough. Pretty straightforward there. Second, the money is pooled into a common enterprise. Basically all the cash. That's an interesting one because we didn't do that all the time. We had miners paying for ads. We had miners paying for barbecues. We have miners paying commission out to other miners. Like we always had problems with money and banking. And so it was very rare that all the money came into one common pool goes into the same. Don't know if we adequately pointed that out, but also pretty straightforward. Third, and this is where we start paying closer attention, is there an expectation of profits? And finally, are the profits expected almost exclusively from the work of others? Yeah, I was looking at that too. The answer is yes to all four, and it's probably a security, and the regulators are likely to become very interested in what you're doing. Imagine you and your friends want to start a lemonade stand. Together, you round up some cash. You shop for lemons, squeeze the lemons together, stand on the street, and sell the lemonade. At the end of the day, you shared the work, good times, and profits. You're all working together. Alternatively, you could ask your friends or parents to invest money in your stand, and promise a share of the profits at the end of the day, you do all the work and return to them. One of these is a fun partnership. The other is a security. The difference may be small, but it's important to understand that one of them could turn your effort from sweet to sour. Look at that analogy. If you choose to join a project, your active participation is a critical component of staying within the boundaries. Active participation matters. If you expect a profit and don't want to do any work to ensure that outcome, chances are good that you've stumbled into murky waters. All right, so we're going to stop it there. And I'm going to make my screen kind of the right size again. And we're going to go back to that original question and statement of substance over form. The economic reality. Tell me about the economic reality of your opportunity, Bobby. And they really relied extremely heavily in their case on one particular piece of evidence. And it was the welcome email that goes out to every new miner. And I've got it pulled up here so we can focus in on economic reality. This is the email that goes out to every new miner. First of all, you've done all that's necessary to be on our TXC team. You've got your seat on the rocket ship, and now you can simply sit back and enjoy the ride. There's a lot more that you can do, but everything else from here on out is optional. And we heard this mentioned again and again and again. And this is the entire thing that the state pointed to as coming from me specifically, who wrote that email. I wrote that email. OK. And you send it out to every new minor. That's right. But that's not the only thing that the email says. And it's not the only thing that went out to every single new minor. And so the state points to that and says the economic reality is that people gave you money, you pulled it into a common enterprise, they were expecting a profit, and they were going to see that profit from just your work. And I pause and I go... Yeah. I mean, I can see how the state would think that. And I could also see kind of how somebody that put their money in could think that as well, but that's not what I told them. That's not in any way representative of what I told them. And so I want to bring your attention to, to two other really important things. Set aside the information that's in this email. For any currency to be successful, it must be traded, spent, and circulated in the marketplace. So what does this say? It says that if you want your investment, the dirty word we're not supposed to use to be successful, it has to be traded, spent, and circulated in the marketplace. And to do that, we'll need to share our vision and mission with the world. So this is the welcome email. But there's two things that go out to every single new miner that joins. One of them is what we call the glossy brochure. And it goes out in a welcome kit with the miners coined every single person that joins us as a miner. And I want to bring your attention to page two. The success of Texacoin. So if you want to consider what you did in investment, the success of Texacoin depends on a passionate, growing community. Every new miner who joins brings us one step closer to our goals. Share your excitement with friends, family and colleagues and invite them to be a part of this revolutionary journey. So what we're saying here is that there's a direct connection between the new miners joining and our goals. which they have to do. Every single miner has to do. Let's move on to page eight of the glossy brochure that every new miner gets. Launching a new digital currency might seem like a daunting task, but at Texacoin, we know exactly what it takes. A cryptocurrency mine is the foundation. Where's the other part? Okay, so... Success doesn't rely on luck. It comes from combining the right ingredients, a powerful and trustworthy mind, a thriving and energized community and an active marketplace of production and commerce. We're telling people that we need these things. Let's go to the next page, page nine. All we need to win is to build a community of individuals who want to crowdsource our powerful Texas mind while taking control of their own financial future. By securing and participating in TXC, we create value together. Without goods produced and traded, there's no need for money. A currency is a promise that only comes alive when individuals participate in the marketplace. Texacoin thrives when people produce, trade, and create value. Every participant helps uphold the promise of TXC's worth. What's TXC worth? I don't know. Check with the participants. Who's the participant? Everyone that wants to keep this promise and have this currency. Let's go on to page ten. We're counting on you. At Texacoin, every miner plays a vital role in our success. But Bobby, wait a minute. You told me to sit back and enjoy the ride. You told me there's nothing else I have to do in that one line, in that one email. You're not just a participant. You're a key part of a growing ecosystem that depends on trust, action, and community. The mind grows stronger with each contribution, but there's more we need from you to reach our full potential. By taking a few simple steps, you can help ensure TXC thrives and becomes a valuable currency for all. Let's go on to page eleven. Remember, this is the glossy brochure that goes out to every single new miner. A thriving marketplace is essential for TXC to hold real value. What's your investment worth? I don't know. Do we have a thriving marketplace? To achieve this, we need active participation in buying, selling, and trading. The more TXC circulates, the stronger it becomes. Look for merchants who accept TXC or consider accepting TXC for your own goods and services. But let's not stop there. Let's move on to page twelve. Now, this is the really, really, really fun one. Because we put people on the stand. We questioned the witnesses that were produced by the TSSB. And we asked them, what did they expect? What did you expect? Did you expect Bobby to carve off some profit share? Well, what does the glossy brochure say? What's in it for you? There's a lot to be excited about. Your daily rewards and boost your mining with our one-two free affiliate bonus. There's also a binary compensation plan that pays out cash. We don't promise them a share of the profits. We don't promise them a guaranteed return like the other guys do. This is what we told them is in it for them. And I don't know why this glossy brochure didn't get more face time in the hearing because it goes out to everyone. And it's got one, two, three, four, five, six pages worth of notes in there that tell them that our success depends on their participation. And I didn't cook this up on February twelfth, the day after we got a cease and desist. I made this at the beginning. And it went out to every new minor. Well, well, well, Bobby, you didn't disclose that before they signed up. They only got it after they signed up. At that point, it was too late. Right. Well, let's take a look at the mission control manual that also goes out along with the glossy brochure to every single new miner. We can go all the way up to the beginning. Start real quick on page one. Again, this is the mission control manual. This goes out to every single new miner. as a miner you're expected to contribute to the success of our mission first and foremost by helping grow the mine a task you've already completed moving forward however there's much more that you can do to ensure our likely success you are encouraged to participate in any and all ways that are convenient and beneficial to you once again we're talking about economic reality Maybe somebody put their money in. Maybe they gave it to me. Maybe they expected a profit. Maybe they didn't expect to do any work to get that profit. But that is not what they were told. That is not what they were told. But Bobby, hold on. You didn't give this information to them before they joined. Well, take a look at section ten on here. Abandon ship. As part of the TXC mission, it's important to reflect on your experience and determine if TXC aligns with your expectations and goals. Here's a guide to help you evaluate. Did you join us to get rich? If your primary goal was to get rich quickly, it's important to understand that TXC is not a get rich quick scheme. Please remember that TXC is being built to last and our mission focuses on building a community and a functional currency with real value. Are we making progress towards our goal? Has TXC made your life better? Have you learned anything about crypto? Did you engage with the community? Did you build a team and earn commissions? Can you identify other improvements in your life? We value your input and want to ensure TXC meets your expectations. If TXC isn't right for you, let's help you find a way off the rocket with respect and understanding. Your satisfaction and success are crucial to the mission. Whether you stay on board or choose to exit, we're grateful for your role in the journey so far. And when you take that and you pair it up with the refund policy that we offered to minors, it just leaves you there saying, well, what did people expect? How did they misunderstand the expectation that they've got to roll up their sleeves and help us if they want this thing to be successful? economic reality is true that's what these guys are still looking at today they're still looking at it and saying well it sure feels like an investment especially with that multi-tiered affiliate program thing that they have and there's a gap between what we're telling people and what they're hearing i know that there's a gap I know that there's a gap because when we go out and we do these events, we have thirty, forty people fill up the room. We say, how many people here have taken your coin out of the package? One or two hands goes up and we go, guys, what are you doing? There's no way that this thing is going to get to where we want it to go. If you haven't even taken your coin, do you even know where your package is? I got it. I locked it up in the safe. I forgot all about it. Well, hold on. You're treating it like it's a security. You're treating it like you put your money in and you don't have to do anything for this thing to be successful. But if you would open it up, you read the mission control manual, you read the glossy brochure, you participated in our calls, you would know that our success and the results that you get are dependent in extremely and exclusively on whether or not you and anybody else participates. And so when we start to like, go ahead. I was just going to say, like, I totally agree that, you know, people, they can find ways to participate. And I think that's the core of what you're saying. I also want to make the point that in some cases it's totally okay to not unpeel your sticker because it is called cold storage for a reason. And there are plenty of people who might have thought like I'm having better security by not unpeeling the sticker. And that's true. Yeah. But if you remember this time last year and maybe a couple months before that as well, I was going to our community and saying, we need more sellers. We need more people to actively sell. Our market's getting too hot too fast. And we all know that what goes up must come down. If we had more sellers participating in the market, more liquidity there on the sell side, then we wouldn't see the price jump as fast. We've seen a couple times people have broken through The ceilings and taking the coin up to what do we see? Sixty bucks one time and like ten thousand million dollars another time. You know, participation is one of those things where like, well, I don't I don't understand crypto. Well, guys, we're creating hours, hundreds of hours of training videos for you to figure it out. I don't have time. Well, if you don't have time, then this might not be the right project for you. This is a project that requires a community for it to be successful. It's a community currency. It's always been a community currency. We did it because we think that the original Bitcoin guys who sailed off into the sunset didn't teach the next generation of enthusiasts that we have to stay focused on using the currency in a community. Whether the community is regional or it's your small downtown area or it's a community of people online that want to exchange digital zeros and ones. Or it's a community of people that don't like or trust the banks like it's a community currency. It only has value when the community accepts it, adopts it and uses it. That's always what this project has been about since day one. It was never a get-rich-quick scheme. It was never a meme coin. It was never a digital collectible. Look at the big guys now, these institutional Bitcoin, what do they call the micro strategies of the world? Bitcoin something companies? Yeah, Bitcoin Reserve companies. They've turned Bitcoin into digital gold. On a practical note, what I do so that I can have good cold storage security and use and learn about the products that we're talking about is I have always bought some extra physical cold storage coins. that way uh you know i can buy a few dollars of txc on the market and play around with with a coin that has had this sticker peeled while i still have the majority of my coins that i'm thinking long term with i have those on an unpeeled sticker and i'd recommend that for people who um you know are interested and there's uh you can go to coldstoragecoins.com and order more coins There's a free one everybody gets. Everybody gets a free one. If you're a minor, you got a new one coming your way. Yeah, look, guys, it's becoming clear to me that we don't have nearly enough active participation from our community to get to where we want to go. And for much longer, like kind of shrug at this economic reality accusation you know when we're doing this thing and i'm so busy just running the business and promoting and trying to hold the ship together it's easy to like turn a blind eye to the fact that ninety or ninety five percent of people aren't actively participating and when you're growing so fast You know, you don't have time to pay attention to it. We brought on lots of people for training and education. And, you know, we've spent plenty of money making videos and resources like so we invested in that. But we didn't hold each other accountable. And I can tell you right now with a fairly high level of certainty that if we had a better if we had done a better job along the way of. holding our community accountable for more active participation and engagement, we'd already be a page one coin by now. I think that that's very true. You think, hey, we've got almost fifty thousand people in this deal. If fifty thousand people were out there buying and selling and trading and Texas coin and bringing on fairs and festivals and, you know, downtown small businesses and nectar pay and blah, blah, blah. Like we'd have one of the largest communities in crypto outside of Bitcoin. If we had people actually doing that. We would certainly not be having this conversation right now. And the reality is that I can't turn a blind eye to it anymore. I've got to go and get every single one of you guys off the sidelines and engaged. Or we are what they are accusing us of being. We got to roll up our sleeves. We got to double down on this. We have to figure this stuff out. The future of like mankind, I think is depending on it. Like if that motivates you, great. But the reality is that if you want this thing to work out, you got to roll up your sleeves and you got to get involved. And a lot of people are struggling right now with where to get started, how to do it. I don't understand. And so this Saturday and once a month, We are going to host something called Adoption Day. And I'm really happy about the name. I got to give full credit to my wife because it was totally her idea. But I don't know if you guys remember a couple of weeks ago, I committed to you that I was going to call every single person that I sponsored and brought in Texacoin. And I was going to bring them up to speed, answer their questions, help get them oriented on the new things, point them in the right direction. and make sure that they've got the tools that they need to roll up their sleeves and get to work. Because if we do that, we've got this. You can't sit back and wait for Bobby and his team to make Texacoin valuable for you. That's not what this is. If you treat it like an investment, they're going to continue to come after us like we're selling an unregistered security. You guys have to treat it like a community currency. You got to get involved. You got to be willing to trade with people. You got to be willing to use it. You've got to be willing to go out there and talk to merchants and business owners about accepting crypto. Like we've got all these tools now. I just need to find a way to get you guys into the game again. And that's what this Saturday is all about. We're going to do adoption day once a month. And here's what it comes down to, guys. Here's the teeth and here's where the rubber hits the road. And some of you aren't going to like this. And if you don't like it, you're probably the person that I'm talking about right now. But here's what adoption day is. I'm going to call every single person that I sponsored into Texacoin. And I'm going to ask every single one of those people to do the same thing. We've got close to fifty thousand people in here. It's fifty thousand phone calls. I think everyone's got a free unlimited mobile phone plan at this point. Remember when you had to like choose? It's like, do you want a hundred minutes a month or like four hundred minutes? You're muted out there, Matty. So we can't even enjoy your laughing. Nights and weekends, you know. You sit there with your broken phone waiting for like six p.m. to show up. Oh, I can make all the calls now. Those are dark times, man. We've come a long way. I'm going to call everyone that I sponsored. I'm going to ask them to do it. And if they are unable or they're unwilling to do this for me, it's not a lot of work. But if they're unable or unwilling to do that for me, I'm going to put their team up for adoption. Because if they're not willing to roll up their sleeves and build this community currency, like I told them that they had to do from day one, somebody else is going to do it for them. It doesn't get rid of their mining output. Their mining output is a commodity. There's an agreement. But if they want to participate in our referral program, they've got to help manage the community. They've got to get the community off the bench. They got to get the community using the wallets, using the resources, using some of these apps and apps and tools that we're making, showing up at these calls. Most people don't even know that we have calls still. Didn't that shut down back in February or something? No, it didn't. It's still here today. And for the overlords and the regulators to stop looking at us like an unregistered security, you have to stop treating it like an unregistered security. This Saturday, starting at seven a.m., I will host a marathon call I'm thinking it's going to be like eight hours long. I'm going to do two hours personally, seven a.m. Central Time to at least nine a.m. I'm going to take you through how to set up a wallet and how to use Passage. Passage is what I'm using right now to make my life better and easier as I travel west. It's a great, powerful little tool, but you got to have a wallet to use it. You got to have an honest money profile and you've got to have a wallet link there so that as you're sharing your social media images, they're getting saved to your wallet. We've got a couple really fun, really easy to use tools that are built on our blockchain. by you using those things and getting an immediate value and benefit you'll share it with somebody else and they'll go on there oh this passage app is really cool how do i use it oh that's great oh i need txc to be able to use it well how do i go get some txc what is this texas stable dollar you talk of how does it work how do i get oh that's what i need to support these nectar pay merchants okay well let me add a hundred bucks of tsd These are all ways that you can not only help us get to where we want to go and have a positive impact on the price of our digital asset, but prove up active participation. Prove up to yourself and to me and our team that all of this is not just on our shoulders. It's a lot of work doing all this stuff and going to the regulators and be like, no, no, no, we're not a security. We've got fifty thousand people that are participating. Oh, really? Yeah. I'm going to call every single one of them this week. And if you're on my team and I call you and I ask you to do the same thing and you're unable or unwilling to do it, I will put your team up for adoption. Your mining will continue to work perfectly fine. But we are way past the point now of pretending like we don't know what a security is. And pretending like we're not really sure why they're looking at us like we're a security. We know enough about it now that we can't claim ignorance. We can't. You just watch the video. If you put the money in, you sit back, you expect somebody else to make the profit for you. You're treating it like an investment, like a security. And we are not registered to make that available to you or anyone else. That's why the mission control manual and the glossy brochure made it so clear that your participation is required for this project to be valuable for you. If you read all that and you said, that's all good, thousand bucks, I don't care. Well, then there's no expectation of profit. It's fine. But if you're expecting this thing to be profitable or valuable, you also have to be prepared to participate. I made that clear in the glossy brochure and the mission control manual in the email that went out. When you joined right away, even the one that said there's nothing else you have to do. But if you want it to be profitable, if you expect it to be valuable for you, you got to participate. It's always been that way. This isn't a position that we're improving because we learned some lesson by getting slapped on the wrist. We haven't been slapped on the wrist. Losing five million dollars in legal fees is a pretty, pretty big slap in the face. But it's put a big spotlight on the difference between a security and a community currency. We are and have always been a community currency. We're digital. We're using the same tools and words and language as the other guys, but that's not ever what this project was about. This project was always about continuing the work that I've done in the realm of alternative complementary currencies, period, full stop. I'm going to call everybody on my team this week and invite them to come out and learn on Saturday. I will kick off at seven a.m. Central Time. That'll be... I don't know, was it four p.m. on here, two p.m., one p.m. for me? I don't even know what time it'll be for me, but I'll be there. And if you want this project to be valuable, if you're expecting this project to generate a profit for you, you'll be there too. You don't have to be there, but you can't go to the regulators and the overlords and tell them you were expecting a profit and you thought Bobby was going to do all the work for you. That's not what I told you in the mission control manual. That's not what I told you in the glossy brochure. We've got to do this together. And so if you haven't been active, it's all good. Look out for a phone call this week and then join me on Saturday for adoption day. And if you roll up your sleeves and you help us get this thing going, I'll even get you a participation award, some sort of participation trophy. Everybody loves a participation trophy. We're still working out the details on the whens and the wheres and the whys and the hows. Keep an eye out for an email this week for a website to go to, to join us for adoption day. But guys, we know enough now to clean up our act and to make sure that you understand that if this thing is going to get to where you want it to go, it's only going to get there with your help and participation. Maddie, what do we have to mention before we call it a day? Well, we've got an exciting show lined up for tomorrow for the fourth episode of Honest Money Live. Our guest this week is Patrick Byrne, who is the former CEO and founder of Overstock.com. They were the first major online retailer to accept Bitcoin back in twenty fourteen. And so I can't wait to hear this conversation because that's exactly what Bitcoin stopped doing these days, is being a way to pay for things. And it's exactly what a Texas coin with nectar pay and all of our other stuff is is perfectly enabled to do today. That's right. Great call. What a great lineup we've had for that show so far. Crushing it. Definitely. And last week, I totaled up today our views for the Ron Paul episode, including clips. I have a grand total now of a hundred and ninety thousand views and impressions. And then our third episode with Tiffany Fong is already up. Six days later at one hundred and fifty three thousand views and impressions across the main episode in the clips. That's great. Yeah, very nicely done. Great statistics. Thanks for sharing that with us. Guys, we got a good thing going here. We're learning along the way. I told you guys that from day one, too. We don't have all the answers. I've got a plan. And together we can get to where we want to go. And so let's roll up our sleeves. Let's double down on this project of ours. And I will see you guys tomorrow or Thursday or Saturday as I continue to share my time with you to make this project great and have it become all the things that we've expected and then some. In the meantime, thanks so much for joining me. I'm Bobby Graham, the founder of Texacoin, joined by Maddie. Thanks so much for being here. Week one thirty four. We'll see you guys again soon. Our outro is a clip that's gotten twenty thousand views and great. Thank you. And he's like, I want to buy it off you. I'll buy it off you right now for a million dollars. And I go, well, I think it's worth a lot. I think it might even be worth more than that. But what do you want to do with it? He goes, I want to sue everyone. that's ever used a picture of this coin and didn't pay you a royalty for it. It's an onboarding tool. It's a community tool to bring more people into crypto, not go out there and like, you know, rake people over the coals for using this powerful, like well-known image. No, I'm not selling it to you.