🦁 We FOUND the next FTX

Gm, this is the doodhwala, the crypto newsletter that gives you the feeling of free chocolates and no-classes on Children’s Day in school! 🥰

Happy Children’s day. 👦🏽 👧🏽

Here’s what we got for you today:

• The End of Solana DeFi?

• PREDICTION: The next FTX

• SAFU Advice Of the Day

• Milky Meme Of the day

The End of Solana DeFi?

It seems like everything that SBF touched is now turning to dust.

• FTX

• FTX Arena

• Bahamas’ Economy 🤷‍♂️

And now…there is a new one on the list.

It's Serum, the soul of Solana’s DeFi ecosystem.

What’s Serum? 🤨

It’s a DeFi platform on Solana that manages on-chain liquidity. Kinda like an automated market maker.

If you wanna sell off some tokens, Serum ensures that there is enough liquidity on that token for you to do so.

Other Solana DeFi platforms like Raydium, Solend and Jupiter use data from Serum for some key functionalities on their platforms.

So, we weren't exaggerating when we said Serum is the SOUL of Solana’s DeFi.🔥

Some other facts about Serum:

• $32 billion in volume this year

• Has a native token called SRM

• Backed by the burning star, FTX 💔

Yup, Serum now has the SBF’s death curse on it. 😭

So what’s happening?

FTX heavily invested in Serum. They hold $2.2 billion of SRM tokens.

In fact, the FTX dev team helped build the Serum platform and it is believed that FTX still holds the upgrade authority over the platform.

Upgrade Authority (UA) matlab?

This is a Solana thing. UAs basically control the program code on Solana.

If you control the UA, you control smart contracts, funds, everything. 🔒

So now with FTX crumbling like Pakistan in yet another T20 WC final, Tanmay Bhat’s Solana gang is obviously freaking out over this.

They are freaking out so much that platforms like Raydium and Jupiter are creating distance from Serum by cutting off all the core functional dependencies they had with them.

Even Serum’s TVL dropped from $120 million on 6th November to just $1.2 million yesterday!

THAT'S A 99% DROP 🤯

So what will Solana’s DeFi ecosystem do now?

Solana ecosystem devs are coming together and saying “Let’s forking do it!” 🔥🔥🔥

Yup, the devs are working on creating a fork of Serum, which is to basically re-create the original codebase and kick it off again.

This will help them build a platform that is truly decentralized and one that the community can actually depend on.

That’s the beauty of the blockchain. ❤️

You don’t like something? Take the codebase, re-create it with the things you do like, get a decent amount of people to back it and you’re in business, baby!

Wish I could do the same with my ex’s personality.

We’d still be together. 🥲

PREDICTION: This crypto exchange is the next FTX

Sometimes at the doodhwala, we like to put on our bhavishya-vaani hats, pop a tent at the side of the road, and put a sign that says:

🔮 "CRYPTO-LOGY and YOU: Want to know how to get the best milky crypto alpha? Let the doodhwala read your palms portfolio, and know your value vasthu." 🔮

Okay, enough of that.

There are mad signs that the next centralised crypto exchange that's about to go down like Anil Kapoor's Hollywood career is - Crypto.com.

The nice thing about Crypto.com is that they get straight to the point with its name and domain.

They don’t mess around with abbreviations (wtf doesFTX even stand for?!), mythological characters (Kraken 🐙 seriously?), or us star signs (Gemini 👯‍♀️ why?).

Besides the name, Crypto.com is in a world of pain (hey! that rhymed!)

Here are 3 reasons why:

1️⃣ Faking Billions of ETH

Last month, Crypto.com accidentally send 320,000 ETH worth $5.6 billion to a random crypto exchange.

The CEO said, this was a mistake when transferring the ETH between their own addresses.

But seriously, wtf?! Who the hell doesn’t double-check when sending $5.6 billion? I double-check when I’m buying methi, because 99% of the time I end up buying pudina. 😭

They received 285,000 ETH ($4.9 billion) back tho. Phew!

This weird transfer could be because Crypto.com wanted to inflate the amount of ETH it held in its reserves. Here is a 101 on wtf proof of reserves are.

Idk about ya’ll but I ain’t trusting an exchange that moves billions in crypto before proving their reserves. And CZ is backing me up on this.

2️⃣ Are you SHIBing me?!

Speaking of proof of reserves, guess what is the most held crypto on Crypto.com?

Okay, it’s Bitcoin. Not too bad right? 😮‍💨

What’s the second most helped crypto on Crypto.com?

Shiba INU, yes that meme coin. 🐶

Crypto.com holds ~$500 million SHIB tokens on its proof of reserves.

THAT’S 21% OF ITS RESERVEs in a meme coin.

Check out Crypto.com's entire reserves here.

3️⃣ Spoiled Milk Problems

Holding onto crypto is like holding onto spoiled milk right now.

You have two options - throw it out, or make some paneer. Actually three options - you can roll the 🎲 and drink the spoiled milk.

Here is what it means in crypto terms:

1. Throw it out → Sell your crypto (I'm out screw this 💩)

2. Make some paneer → Transfer it to a non-custodial wallet (I'm gonna hold my 🔑)

3. Drink it → Keep it on centralized exchanges (I like to live dangerously ☢️)

Users are withdrawing crypto outta exchanges. All exchanges.

Over $250 million in crypto moved out of Crypto.com in the past 24 hours.

The centralized exchange virus is worse than corona, and remember how fast that spread?

Doodhwala's take: We love doodh, but spoiled doodh is something we don't touch. Get away from it (read:centralized exchanges) as quick as you can.

If you already have a non-custodial wallet reply to this email with "MONDAY MATIC" and we'll send you some Matic on this Money Monday.

You're welcome. 😍

SAFU Advice Of The Day

There's more FUD in the crypto market than a room full of middle-aged Indian uncles talking about BJP vs Congress.

Here at the doodhwala, we want you to stay safe.

So, here are some red-flags for crypto exchanges

1. Have a native token

2. Give insanely high yields

3. Unclear business model

4. Lack of communication

5. Too close or too distand with regulators

6. CEO keeps saying, "everything is fine, chillax"

Stay safe out there ya'll.

Milky Meme of the Day

If you want more doodh then, be sure to follow our Twitter (@DoodhwalaDaily)

That’s all for today bhaiyo aur bheno! Naale Sigona!

Aakash "Dahi Cheeni" Athawasya & Arvind "Doodh Peda" Krishna

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 a 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.