👀 Binance is NOT SAFU?

Gm, this is the doodhwala, your crypto weather report for the day.

We’ll tell you to carry an umbrella when it rains ☔️ or put on some sunscreen when it’s sunny. ☀️

Here’s today’s weather report:

• 🛡️ Not SAFU: What’s happening with Binance?

• 💀 Comeback kid: FTX is rising from Ashes

• 📈 King Tether: The Highs and Lows of USDT

• 🛠️ Resourcewala: What's the Buzz about AirDrops?

• 🍼 Unwind with NFTs: NFT holders Nature Retreat

🛡️ Binance not so SAFU?

If you thought Interstellar was a tough movie to understand, wait till you hear this story of Binance.

According to a recent special report by Reuters, Binance has been involved in some hella sus activity over the last couple of years. 🤔

So, Q of the day – Is Binance commingling user funds to pump their revenue?!

Before that, let’s take a minute to laugh at how funny the word “commingling” is?! 🤣 🤣 🤣

📢 FYI: Binance is the world’s largest crypto exchange, with:

• over 128 million users

• processing an average of $65 billion in daily trades.

Binance was founded in the year 2017 by Changpeng Zhao (also called CZ) and has since grown to become a prominent player in the crypto industry. 💯

What the Reuters Report says:

The report in itself covers a wide range of allegations and investigations about Binance using insider information (spicy 🌶️)

But we’re doodhwala, we drank a jug of 🥛 and simplified it to 3 main points:

👉 Co-mingling of customer funds

👉 Issue of Stablecoin BUSD (issued with Paxos) and connections with Silvergate bank

👉 Binance’s Tax savings in tax havens such as the Cayman Islands and Lithuania

Let’s take a look at each of them:

1️⃣ Is Binance commingling customer funds?

As of now, no.

Simply because the report doesn’t provide any solid evidence for the allegation.

Even the report is clear about this 👇

Like WTF? 🤷‍♂️

You FUD without evidence of the very intention of your report?

That’s like your doodhwala warning you that milk is dangerous for you, and then proceeding to sell you 2 liters of it! 🥛

2️⃣ The allegations against Paxos & Silvergate

Paxos was the entity that issued Binance’s Stablecoin BUSD. (RIP 💀)

However- the report suggests that Paxos issued Stablecoins on orders placed by Binance’s Banking partner, Silvergate Bank. (Again, RIP 💀)

According to insider info, the issuance of BUSD was a combination of corporate accounts as well as customer funds. 💰

(now this is commingling 🥲)

Here’s how the Binance Moneyflow System works, allegedly! 👇

3️⃣ Binance’s use of Tax Havens to evade Federal Tax

Binance apparently has a lot of connections in Tax havens such as:

🇱🇹 Lithuania, and

🇰🇾 The Cayman Islands

The report goes on to highlight how Binance hasn’t paid Taxes for several years, and no one knows where they’ve registered the main company. 🤷‍♂️

Is it illegal to have a company registered outside of the US? Of course, it isn’t.

Is it illegal to use a tax loophole? Nope.

However, it could potentially show the involvement level that Binance has in its tax havens.💯

Here’s how the tree of companies looks like 👇

What will happen ahead?

As of now, Patrick Hillman, Chief Comms Officer for Binance, has come out with a statement on Twitter saying the report is false and baseless. 👇

However, a possible detailed analysis of the critique should hopefully be sent out to avoid fear in the markets and to ensure trust.

Doodhwala’s take:

Targeted FUD against Binance is not a new thing. However, the devil is in the details. Answer the details, and defeat the devil.

Also, what happened to that milk you were drinking?

💀 FTX is rising from Ashes

FTX.

Yes, today’s all about those scammy crypto exchanges.

FTX stands for “Futures Exchange” (tho currently it doesn’t have a future).

So, for now, we’ll call it the “Financially Terminated Exchange” cuz we all know it’s bankrupt. 🤣

But then why the heck am I writing about it? 🤔

Well, you’ll see in just a couple of secs. 👇

Introducing:

👉 FTX 2.0 👈

Here's how the scam artists…err…I mean the new management is planning it:

New CEO in Town

Say hello to Mr. John J Ray III (no, he doesn't belong to a British Royal family).

He’s the new CEO who’s planning to do the FTX 2.0 reboot, like your computer after a glitch.

How will he fix FTX?

One word. Meetings.

Well, the dude’s calendar is stuffed with appointments, including back-to-back meetings with creditors and debtors. 💼

Wanna see his busy schedule, here you go👇

He’s giving out some gooood expectations that debtors might get their money back. 🤞

Cuz Ray ain't just meeting people, he's:

• planning

• strategizing, and

• dreaming up FTX 2.0.

Just like Tim Cook planning iPhone X after the flop of iPhone 8.

I can already hear you asking, “But is FTX 2.0 actually happening?!?!"

And then asking, “How is the doodhwala so unfunny every day?!?!”

Since January, John's been dropping hints about a comeback. Back then, the buzz was that FTX found a whopping $5.5 billion in liquid assets.

Just last month, this number climbed to $7.3 billion.

With that much💰, a revival seems less like a pipe dream and more like a solid plan!

The goal? Relaunch the exchange by the second quarter of 2024. That’s in 1 year!!

If this were a Bollywood movie, this is where the item number would come in. 💃

Now here's where it gets juicy.

The news of FTX's revival gave a big bump to the price of the FTT (the FTX Token) which jumped 13% (looks like it still has some juice left in it).

While some celebrated the reboot plans, others sounded alarms, reminding us of FTX's less-than-stellar past (you can read all about it here).

Basically, not everyone's sold on the idea.

Some peeps argue that the origins of the exchange are dodgy at best.

Some also claim it's a sinister move, a relaunch of an exchange rooted in fraud.👇

Doodhwala’s Take:

Like spilled milk, bankruptcy is a pain to clean up – especially in crypto.

But just like your doodhwala, who delivers fresh milk every morning no matter what, the new FTX CEO seems determined to bring fresh hope to its users. 💫

📈 Cheese and Charts: Tether's Highs and Lows!

What’s the deal with stablecoins? Sometimes they’re confusing af!

For instance, Tether (USDT), is now making things blurry for crypto bros.

👉 Trading volume – making a dive to a 4-year low.

👉 Market cap – near all-time high of $83 billion

In most cases, this ☝️ shouldn’t happen!

Volume and Market Cap should go along (it shows strength).

But there’s no fun in crypto without some paradox.

And, here's a juicy rumor for you → Tether's been quietly buying up BTC from the big U.S. government. 🇺🇸💰

Oh, and by the way, our friend USDC has been feeling a little down, with its market cap shrinking

📈 From $55 billion → $29 billion 📉

With Tether's trading volume and market cap going in opposite directions, we're left scratching our heads.

What’s your take, guys?

Hit REPLY and let’s get this convo rollin’ 🗣️

🛠 Resourcewala: What's the Buzz about AirDrops?

Looking to get your hands on some free crypto? 🤑

Look no further, because today we're diving into the world of AirDrops and why they're making waves in the crypto community! 🌊

They’re like receiving a surprise gift from the blockchain gods! 🎁💫

In today's resource, we'll cover all the essential details about AirDrops:

• What is an AirDrop and how does it work?

• Why do crypto projects give away free tokens?

• How to find AirDrops and participate?

🍼 Doodhshots: NFT holders Nature Retreat

• 🇺🇸 SEC Loophole: Prometheum Capital + a bunch of entities win approvals to operate in the US amid the SEC drilldown. Where’s the loophole?

• 🪢 Tether Weather: Millions of $$ of BTC and Tether are used to pay Chinese companies involved in the Fentanyl push. Don’t do kids, drugs.

• 🌴 Nomad Life: Cabin announces that it will build a city in nature for citizens who hold NFTs. Abnormal AirBnb?

• 👨‍💻 Hacking Down: QoQ number of hacks down after Tornado scrutiny and laundering. Hopefully, hacks go down!

• 🪙 Coinbase Fights: Coinbase fights the SEC with a mandamus petition filing. The fight goes on!

🤣 Milky Meme Of The Day

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That’s all for today folks! See ya tomorrow!

Yo! Our legal and financial advisors (aka our good ol’ conscience) have asked us to add this boring disclaimer. None of what you read here is financial advice. We aren’t here to get you to buy or sell crypto. We’re only here to tell you what’s up in crypto today and make you laugh. So, if you screwed up on a trade, that’s on you G. Stay safe in the markets.

Today’s edition was brought to you by Ritik Gupta and Sumanth

Edited by: Arvind Krishna and Aakash Athawasya