😷 The Exchange nobody wants to work with

Gm, this is the doodhwala, the only crypto newsletter that’s as good as a cold 🍦 popsicle on a warm summer’s ☀️ day.

Here’s the breakdown for today:

• 😷 The Exchange No One Wants To Invest In

• 🔺 $234 mn in fake Asian Lady scams

• 📈 Sky High Active Addresses!

• 🛠 Hidden Risk of Providing Liquidity

• 🍼 Arbitrum > Ethereum?

Ahh that feeling 🤤

😷 The Exchange No One Wants To Invest In

Every high school has that one weird kid no one likes.

No one. Not the students, not the teachers, not even the friendly security guard who smiles at everyone. 😄

In the crypto world, that weird kid is – Open Exchange (OPNX).

Wait, wtf is Open Exchange?

Open Exchange is a cryptocurrency exchange that does not trade cryptocurrencies. Nope, that would be too straightforward. 🤣

Instead, they trade – bankruptcy claims in crypto companies.

Companies like:

• FTX

• Vauld

• Celsius

• Genesis

• 3 Arrows Capital

The company behind OPNX – 3 Arrows Capital's co-founders Su Zhu and Kyle Davies.

3 Arrows Capital is a crypto hedge fund. A bad crypto hedge fund.

They borrowed money from all of ☝️ crypto hedge funds, didn't pay them back, avoided legal action, and are now launching an exchange to trade bankruptcy claims. Bankruptcy claims in companies they bankrupted. 🤣

Last week, OPNX was this close 🤏 to trading its first set of claims.

Before that, the CEO took to Twitter to thank OPNX's investors. She mentioned 8 VCs by name.

But the VCs were hella surprised by this announcement, many of them went 'Hold the 📞 we're investors?!?!'

Here are their reactions:

• Some said they were never investors in OPNX 👇

• Others said their equity is being forcibly converted to equity in OPNX 👇

What's happening is – these VCs invested in an exchange called CoinFLEX.

CoinFLEX was a crypto exchange that went down like the Titanic during the 2022 bear market. ⛴️

Then in 2023, the 3 Arrows Capital + CoinFLEX's founders came together to relaunch CoinFLEX as → GTX → GTX was later renamed to Open Exchange.

Those VCs ☝️ are investors in CoinFLEX ✅, not investors in Open Exchange ❎.

But that's certainly not how it's being portrayed by OPNX. 🥲

Doodhwala's take:

VCs, we know you will keep getting questions on Open Exchange.

So, here's a meme to use in your replies 👇

🔺 $234 million in fake Asian Lady scams

A new typa scam has been brewing for a while…

And it has finally reached it’s PEAK in these past few weeks. 🔝

It involves:

• $234 mn stolen USDT

• 14.8k affected individuals

• A buncha fake Asian ladies!

It's called the Sha Zhu Pan Scam. Yeah, sounds like a weird sushi right?

But it's not. It's actually a complicated and long-game scam where the victim is befriended online, shown a fancy life, and lured into the crypto scam. 💀

No Coinbase, no MetaMask, no nothing!

But unfortunately…

Scammers are onboarding more people 🔺 so they can steal more money. 🔺

And with this new typa scam, they are stealing A LOT!

So this is what the scammers are doing:

1️⃣ Step 1 → Friend Request

The scammers create fake profiles and start contacting people through:

• Line

• LinkedIn

• Telegram

• WhatsApp

Here’s the weird part → most of these fake profiles are of young Asian women.

Are Asian women generally more trustworthy? No idea! 😅

2️⃣ Step 2 → Gain Trust

They usually do this by talking about random stuff and NOTHING about money or crypto. ⛔️

In one instance, a victim revealed that they had some nerve damage and the scammer would text them every morning asking “Do you have pain today?”

Damn, these scammers have more empathy than ALL my friends…combined. 🥲

And as you can see, this process can take some time. Even months!

But they don’t seem to mind.

Cuz’ the payday is in millions of dollars. 🤷‍♂️

3️⃣ Step 3 → Steal Their Money

After the trust is built, they get them to invest in crypto to earn a small side income.

It begins with small amounts and decent returns.

💰 $400 becomes → $1000

💰 $3,000 becomes → $10,000

Once they are bought into the sweet profits, they get them to invest bigger amounts.

And this time they get them to connect their wallets to a website controlled by them.

This website has just ONE job:

Obtain unlimited approval and steal any and all USDT that enters the user's wallet. 🤯

You might ask…

Are people really falling for these approval scams? 🤨

Yup, more than you can imagine.

Almost 15k people have fallen for it, and the weekly thefts peaked just last month!

$26.4 million was stolen just in March alone. 🤯

Even in April, the numbers are climbing:

• Thefts → 2489

• Victims → 1526

• USDT stolen → $13.16 million

And the month is not even over yet! 😳

Doodhwala’s Take:

These kinda scams are the worst.

People not only lose a SHIT ton of money but their hearts are also being ripped apart. 💔

They not only need law enforcement help to get their money back but might also need a therapist. 😅

And like we’ve been saying a million times…

…the only way to stop this is to:

• read the doodhwala ✅

• pray that UX becomes even more simple for the average Joe 🔄

📈 Chaach and Charts: Sky High Active Addresses

Web3 is spreading like wildfire, and the numbers don't lie, my doodhs! 🔥

Active addresses (across smart-contract-based blockchains) are reaching heights higher than tourists in Amsterdam → 15M in 2023.

Here's what's poppin':

🎯 An increase in active addresses is a testament to the growing use of blockchains

🏆 A whopping 15M active addresses in 2023, smashing previous records like a wrecking ball. Miley, who? 💥

So, what can be fueling this insane growth? 🤔

1️⃣ The rise of dApps and platforms that are changing the game. 🌐

2️⃣ Big players and innovative startups alike are jumping on the web3 bandwagon. 💼

3️⃣ Increased awareness, as more peeps embrace web3 technology, from gaming to finance, and everything in between. 🧠

Web3 adoption is showing no signs of slowing down.

Will it reach dizzying new heights or has it hit a ceiling? 🤯

Your thoughts matter!

Hit REPLY and share your predictions for the wild world of web3.

🛠 Resourcewala: The Hidden Risk of Providing Liquidity 💸

You're all pumped up to provide liquidity and make some sweet passive income, but then - BOOM! 💥

Some of your coins have mysteriously disappeared! 😱

Ever faced this nightmare?

It's time to dive into the world of "impermanent loss" and how it can mess with your profits as a liquidity provider. 📉

Today's resource will unravel the mystery behind:

• What is impermanent loss?

• How does impermanent loss affect LPs?

• Can you minimize and avoid impermanent loss?

Dive in and protect your assets like a pro!

🍼 Doodhshots: Arbitrum > Ethereum?

• 🐶 Doge-ception: Metallicus CEO claims Dogecoin is more decentralized than Bitcoin. Doge barks louder, huh?

• 🎭 Switcheroo: Arbitrum Protocol outshines ETH in daily activity for the second time ever. Can it keep up the performance?

• 🍁 Cana-D'oh!: Canada's Pension Fund kisses crypto goodbye after losing a whopping $95 million in FTX. Cold feet, eh?

• 🇨🇳 Digital Yuan Payday: Chinese city public servants to receive their salaries in digital RMB starting May. Cha-ching in digital yuan!

• 🌍 Global Gemini: Gemini sets sights on opening a crypto derivatives platform outside the U.S. Time to spread those wings!

🤣 Milky Meme Of The Day

💰 Don’t be dumb, be crypto smart

Look we dunno how to invest in crypto. 🤷‍♂️

So what we do is buy everything in one shot, through something called Coin Sets.

Tf are Coin Sets?

If you want more doodh then, be sure to follow our Twitter, our LinkedIn, and our Instagram.

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 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.