Morning Brew Daily: Crypto Cheers For US ‘Crypto Reserve’ & RIP Skype

Release Date: March 3, 2025
Hosts: Neal Freyman and Toby Howell

1. Neal Freyman Returns from Vietnam

After a refreshing week-long trip to Vietnam, Neal Freyman is back to co-host the Morning Brew Daily Show. Neal shares highlights from his journey, emphasizing the vibrant motorbike culture in Ho Chi Minh City and an enriching cooking class experience. He fondly recalls the breathtaking views from the peak in Hong Kong, stating, “It was probably the most breathtaking view I have ever seen. Better than the Grand Canyon” ([00:45]). However, the trip wasn’t without its downsides, as Neal mentions the “15-hour flight back from Hong Kong to New York City” being a significant challenge ([02:03]).

2. Trump’s Establishment of the US Strategic Crypto Reserve

A major highlight of the episode is President Trump’s groundbreaking announcement to establish a US Strategic Crypto Reserve, fulfilling a campaign promise aimed at positioning the US as the crypto capital of the world. This reserve includes major cryptocurrencies such as Bitcoin, Ethereum, XRP, Solana, and Cardano, leading to a significant market rally. Neal notes, “Bitcoin had dipped below $80,000 to a three-month low, but jumped 10% on the back of the announcement” ([04:08]).

Market Reactions and Controversy:
The announcement triggered a surge in crypto valuations, pushing the total market cap back over $3 trillion. Cardano, in particular, saw an impressive increase of over 60%. However, this move sparked controversy within the crypto community. Neal critiques the inclusion of tokens like XRP and Solana, questioning the necessity of a crypto reserve for what many don’t consider “a critical resource” ([04:58]). Toby adds, “There is a conflict of interest there. There's a conflict of ethics there as well” ([05:51]), highlighting concerns about potential favoritism towards crypto donors linked to Trump’s campaign.

Industry Feedback:
Coinbase CEO Brian Armstrong expressed caution, stating he was “still sifting through the details” and suggested that perhaps only Bitcoin should have been included due to its relative stability compared to other more volatile cryptocurrencies ([05:51]).

3. Shifting US-Russia Relations and Corporate Implications

The hosts delve into the evolving dynamics between the US and Russia under the Trump administration. Despite past tensions and significant withdrawals of American companies from Russia, recent warming gestures suggest a potential thaw. Neal discusses the low likelihood of a mass return, citing economic challenges in Russia such as soaring inflation and high-interest rates ([09:41]). Toby concurs, noting that “Even energy companies are pretty scarred,” referencing ExxonMobil’s substantial financial losses from ceasing operations in Russia ([10:42]).

4. Microsoft Phases Out Skype

Microsoft has officially announced the sunsetting of Skype by May 2025, urging users to transition to Microsoft Teams instead. Neal reminisces about Skype’s early days, acknowledging its pioneering role in video conferencing but lamenting its inability to maintain market dominance against competitors like FaceTime and Zoom ([12:35]). Toby reflects on Skype’s impact, stating, “Even as recently as 2017 it was still being used in high-profile scenarios,” but acknowledges its decline in the face of more robust alternatives ([13:15]).

5. Weekend Highlights: Oscars and Mijue Ice Cream IPO

Oscars Recap:
The episode covers the recent Academy Awards, where the film "Anora" swept the top categories, including Best Picture, Best Original Screenplay, Best Film Editing, and Directing. Despite its accolades, Neal points out the film set a record for the “worst domestic box office performance for a best picture award” with only $15.6 million in North American ticket sales ([17:15]). Toby adds context, highlighting the shift in Best Picture winners, noting, “The best picture category has slowly shrunk over time” ([18:03]).

Mijue Ice Cream and Tea’s IPO:
Mijue Ice Cream and Tea, now the largest food and beverage chain globally with 45,000 locations, made a significant splash by going public in Hong Kong at a $10 billion valuation. Neal shares the impressive first-day trading jump of 40% and the founders' newfound billionaire status ([19:13]). Toby elaborates on the company’s business model, emphasizing their cost-competitive pricing and robust supply chain, which have been pivotal in their rapid expansion ([20:29]).

6. Upcoming Week’s Economic Outlook

The hosts anticipate a pivotal week dominated by President Trump’s enforcement of tariffs on China, Canada, and Mexico, set to take effect on March 4th. Neal cites concerns from industry leaders like Ford CEO Jim Farley, who warns that these tariffs will “blow a hole in the US Auto industry” ([22:41]). Toby mentions the Treasury Department’s consideration of an affordability council to mitigate potential inflationary impacts on consumers ([22:41]).

Additionally, the February jobs report is expected on Friday, serving as a critical indicator of the US economy’s health post-election. Retail giants like Target and Costco are slated to release their earnings, providing further insight into consumer confidence and spending trends ([23:12]).

Trump’s Upcoming Address:
On Friday evening, President Trump is set to deliver his first speech to a joint session of Congress. The hosts anticipate a blend of celebration for his administration’s early actions and potential drama reminiscent of past addresses, such as the 2020 State of the Union ([24:09]).

7. Cultural Events: South by Southwest and Mardi Gras

The episode briefly touches on significant cultural events happening that week. South by Southwest (SXSW) in Austin, Texas, is highlighted as a major convergence for film, media, tech, and music enthusiasts. Concurrently, Mardi Gras in New Orleans is poised to be a vibrant and chaotic celebration as the city gears up for Lent ([24:29]).

Notable Quotes:

• Neal Freyman ([00:45]): “It was probably the most breathtaking view I have ever seen. Better than the Grand Canyon.”

• Neal Freyman ([04:08]): “Bitcoin had dipped below $80,000 to a three-month low, but jumped 10% on the back of the announcement.”

• Toby Howell ([05:51]): “There is a conflict of interest there. There's a conflict of ethics there as well.”

• Neal Freyman ([12:35]): “Microsoft is putting all of its eggs into Teams, which is what this is all about.”

• Toby Howell ([18:03]): “The best picture category has slowly shrunk over time.”

Conclusion

This episode of Morning Brew Daily offers a comprehensive overview of significant developments in the cryptocurrency landscape, international trade relations, corporate strategy shifts, and cultural milestones. Neal and Toby provide insightful commentary on how these events shape the current economic and social environment, making the episode a valuable listen for those looking to stay informed on pressing issues.