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- 🇨🇳 Crypto Is Banned In China. CZ Doesn’t Care.
🇨🇳 Crypto Is Banned In China. CZ Doesn’t Care.
PLUS: 4 Reasons Why An ETH ETF Matters
Gm, this is the doodhwala, the only crypto newsletter that’s as exciting as a penalty shootout in the Champion’s League Final. ⚽️
Here’s what we got for you today:
💎 ETH ETFs: 4 Reasons Why It’s A Big Deal
🇨🇳 GET OUT: Crypto Is Banned In China. CZ Doesn’t Care.
📊 Cheese And Charts: Coinbase Ain’t An Exchange Anymore
🛠️ Resourcewala: Make DeFi Safe Again
🍼 Doodhshots: Litecoin’s Third Halving
💎 Putting The E In ETFs
ETFs stand for – Exchange Traded Funds.
But soon ETFs could stand for – Ethereum Traded Funds. 👀
Yup, a bunch of investment companies have just filed for Ethereum ETFs with the US Securities and Exchange Commission (SEC).
We’re here to tell you why it’s a BIG deal. 👀
You’ve probably heard the buzz about – Bitcoin E-T-Fs – in the past few months right?
Here’s a quick TLDR:
🗓️ Since June 2023, 8 companies have filed for a Bitcoin ETF
🐘 This ☝️ includes the BIG DAWG – BlackRock, the biggest asset manager in the world
📈 Because of this Bitcoin’s price is up by ~20% or by $7,000
An ETF is an investment contract that allows retail investors to invest in an asset without actually holding it. This means, that a company will buy the asset (BTC, ETH, etc.) have it traded on an exchange, and investors can buy it for fractions (like $10 or $100).
Think of an ETF like – us the doodhwala. Lemme explain:
We milk the cows (aka the crypto market) for milk (aka the crypto alpha).
We deliver the milk (send you the doodhwala newsletter) with a bunch of information
You’ll don’t read eeevvvvrrryyything, but read bits and piece of what’s relevant to you
(Then you probably share it and tell your friends about us, right? 🥺)
Like we – make crypto news easy; An ETF – makes investment in crypto easy.
And now that’s coming to Ethereum ☝️
🥛 Doodh Fact: There are some wacko ETFs that have already been approved by the SEC. For instance, the Pure Cannabis ETF (an ETF that invests 80% of its assets in companies that generate revenue from the marijuana and hemp business). It’s ticker is literally called $YOLO and it’s down 37% in 2023. ETH is up 55%.
Here are the companies that JUST filed an Ethereum ETF application:
1️⃣ Bitwise
2️⃣ VanEck
3️⃣ Roundhill
4️⃣ ProShares
5️⃣ Grayscale
6️⃣ Volatility Shares
Now, you might be wondering – why is the Ethereum ETF a big deal?
Here’s our take:
Small Step for ETH. Big Step for DeFi + NFTs.
ETH is the native token of Ethereum, the blockchain with the biggest use-case for DeFi applications and NFTs.
Investors who are too normie for degen investing (buying random DeFi coins, or apeing into NFT projects) can simply buy ETH ETFs and chill.
ETH Ain’t A Security
If the SEC 👍 an ETH ETF, then they’ll be forced to classify ETH as an asset that is NOT a security.
This makes it easier for crypto exchanges (like Coinbase and Binance) who are offering products to stake ETH.
BTC’s Bid Is Powerful
ETH’s ETF application strengthens the case for Bitcoin’s own ETF.
With so many Bitcoin ETF applications, the SEC is almost strong-armed into ✅ a Bitcoin ETF. This will soon be the case for Ethereum.
Two Is Always Better Than 1
I mean, if there’s a Bitcoin ETF (covering 50% of the crypto market), there should be an ETH ETF (covering another 20% of the crypto market).
It just makes sense. 🤷♂️
🏖️ The BIGGEST WEB3 Conference IN India
People go to Goa for different reasons.
🍤 Some go to eat.
🎉 Some go to parties.
🎰 Some go to gamble.
But, the doodhwala goes to GOA for all of the above the Web3 Conference!
That’s right!
The GirtScript Foundation is holding the annual Web3Conf in – Goa, India between August 11 to 13. And guess who’s supplin the 🥛🥛🥛?!
Web3Conf has got a:
hackathon
conference
and a cruise party
(but not at the same time lol)
And we’re supplying that good ol’ liquid that everyone drinks when they’re in Goa – DOODH. 😉
So, what are you waiting for? If you wanna talk web3 by day and party by night, register down below and we’ll see you in GOA.
🇨🇳 Binance’s Chinese Whisper
Binance has a new secret.
No, it doesn’t involve a trade secret. 🤫
However, it DOES involve about $90 billion dollars of monthly illegal transactions. 😱
WTF is this new 💩?
Is it just FUD? Or is the involvement in the Chinese market true? 🇨🇳
Let’s have a quick look at what Binance has been doing in China—
To answer the question of the hour: Are they welcome there? 🤔
☝️ Binance’s Chinese Footprint.
We all know that you are a straight-up raw cow milk drinker since birth. 🐄
But that hasn’t always been the case for Binance.
Binance said “Aight imma head out” to China back in 2017 following a regulatory crackdown.
However, China never left Binance.💀
You see, after there were heavy restrictions for the Chinese folk following multiple crypto bans in the country—
People didn’t exactly know how to store or trade crypto anymore.💰
So the idea of a global crypto exchange without country restrictions was quite the offer for them.🤔
So when the Wall Street Journal came up with an exclusive story about how the exchange was making about $90 million every month from China—
No one was actually surprised.🤐
✌️ Importance of China for Binance.
Even though the Chinese may think that they can ban crypto (which…you know…is impossible)—
Traders and investors have always found ways around it. 🔄
And that’s the reason why China, even today, contributes to over 20% of global trading volume. 😮
With close to a million known users, Binance captures a big chunk of this market.
Just imagine all the ‘💸’ that they’re making from this market!
The Chinese market boasts—
An $80.6 billion Futures market.
A $9.4 billion spot market.
We all now know why the frick they don’t want to address this issue. 💀
🖖 Bonus: New Binance Allegations and Issues.
Binance has never NOT been in trouble at this point.
Whether it be through sus legal shit or sus money shit. 🤷
And what’s the latest allegation?
Following the China story—
Binance has been alleged for evading compliance in China and a few other countries as well.
This is mainly through violating KYC norms. 👤
👉 Falsifying Banking documents.
👉 Wrong use addresses.
👉 Hacking the exchange.
The usual.
All of this while the SEC is behind their 🍑!
Let’s hope they don’t destroy the fresh doodh amid this madness.🥛
📊 Cheese And Charts: Coinbase Ain’t An Exchange Anymore
Exchanges are supposed to exchange crypto right?
And they’re supposed to earn revenue by exchanging crypto right?
Right?!?!
Well, sort of. 🤷
Coinbase, one of the largest exchanges in the world, is about 🤏 to reveal its Q2 numbers. And before that, our friends at Messari, looked at the on-chain data to see where the exchange will earn its money.
Here are the big ones:
Interest Income – interest earned by lending
Blockchain Rewards – staking crypto natively
Custodial Revenue – fees for custodying crypto
Subscription Services – advanced trading subscription
These ☝️ are now likely ~50% of Coinbase’s revenue
(oh and Coinbase’s COIN is up 170% in 2023 🤯)
🛠️ Resourcewala: Make DeFi Safe Again
DeFi is scary. 😷
One moment everything is normal and the next $100 million liquidity is pulled from the market, a crypto exchange collapses, and the sky starts falling down. Okay, I need to calm down!
But seriously, DeFi is scary AF. ☢️
In today’s resourcewala, we look at the risks of DeFi and how developers should cope with them when buidling DeFi products.
What are the kinds of DeFi risks?
How can developers safeguard users?
Resources to keep you safe from DeFi risks
🍼 Doodhshots: Litecoin’s Third Halving
🎨 Artist’s Punk: Beeple, the guy who sold the most expensive NFT in the world, just brought his first CryptoPunk. From artist to degen?
✂️ Litecoin’s Halving: Litecoin, often referred to as Bitcoin’s fork and digital silver, just went through its third halving. Snip-Snip…it’s time to halve.
🌎 Worldcoin’s Plan: Worldcoin team plans on sharing the iris tech for companies and governments to scan data. Ohh wow…isn’t that lovely!
🔺Interest-ing Idea: Abracadabra plans on increasing the interest rates on their loans by 200% due to their exposure to Curve. And I thought banks were bad.
💰 Saylor’s Stash: Microstrategy is adding more bitcoin to its stash according to their Q2 results. LFGGG Michael!
📍Web3 Events Nearby
Another weekend coming up, another meetup to attend. 😎
Check out ➡️ meetupswala.xyz for upcoming Web3 events in your city, whether you're looking for:
meetups
hackathons
conferences
or just wanna hang
Meetupswala will have something that's right for you.
Here are the top Web 3 events for this week:
1️⃣ 14th CS Connect
🗓️ This Friday 📍 Delhi
⭐️ Register here → https://www.meetupswala.xyz/events/1006
2️⃣ Odyssey
🗓️ This Sunday 📍 Online
⭐️ Register here → https://www.meetupswala.xyz/events/971
3️⃣ Kanalabs Konnect
🗓️ This Saturday 📍 Bangalore
⭐️ Register here → https://www.meetupswala.xyz/events/979
🟠 Buy ANYTHING with Bitcoin!
12 years.
It took 12 years for Bitcoin to go from “magic internet money” to “legal tender.”
The first country to make the move?
El Salvador.
El Salvador is a country that most people can’t locate on a map (we can’t either 😂). But El Salvador got on everyone’s radar when in 2021 it adopted BTC as legal tender.
How did this happen?
Is it a big deal?
Should I care?
Find out 👇
🤣 Milky Meme Of The Day
When you trade crypto 24/7.
P.S. - And don't make even a single penny.
— Doodhwala 🥛 (@DoodhwalaDaily)
Aug 2, 2023
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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.