🍼 3 losers, 2 winners, 1 IDK from FTX going down

Gm, this is the doodhwala, the crypto newsletter that’s as fresh as some nariyal paani on a hot summer day (that’s the only drink we consume besides doodh)!

Yesterday was one of the biggest days in crypto.

The largest crypto exchange in the world acquired the second-largest exchange.

That’s like if RCB acquires CSK, Real Madrid acquires Barcelona, or Red Bull acquires Mercedes.

I said what I said!

That’s why what we’ve got today is:

• Losers, winners, and IDK, from the FTX collapse

• Crypto doodh shots: Guess who bought the dip?

• Taza Tweet of the day

• Milky Meme of the Day

Losers & Winners from the FTX collapse

3-2-1.

3 losers.2 winners.1 idk, you decide.

So, let’s see who the losers are first.

Solana

Since this entire FTX thing started, SOL is down ~70%.

And not just the price of SOL, but the future of the Solana blockchain is now in doubt.

Here’s why:

• Alameda Research (the market-making buddy of FTX) was an early investor and token buyer of Solana, as of last week they held $1.1 billion in SOL

• Sam himself was hella bullish (and annoyingly smug tbh) about SOL. He even wanted to buy SOL off of people on Twitter

• FTX acted as a bridge for Solana-based coins (especially stablecoins like USDT and USDC), and with FTX = 💩, exchanges are halting any Solana-based transactions

Solana is in doubt! I hope you’re doing okay Tanmay 🫡

Nexo

Next is a crypto-lending platform, one of the few that’s still alive.

Celsius 💀 BlockFi 💀 Hodlnaut 💀 Vauld 💀 Yikes, looks like a hitlist.

Nexo managed to avoid dying, because of “healthy risk management.” They were even in talks to acquire Vauld’s assets.

But this might be the end of Nexo. Why:

• they’re using the same Luna + FTX playbook: issue a token ($NEXO), retain supply, and use it to prop up the balance sheet (Nexo holds 95% supply of NEXO)

• the trading volume of the NEXO token is mainly on shady exchanges and could be straight up wash-trading

• before FTX paused withdrawals, Nexo removed $500 million in crypto and stablecoins, in nine transactions

Is Nexo next? 👀

Sam’s dirty laundry

Before becoming the Mogambo of crypto, SBF was the Messiah.

A curly-haired billionaire who was bailing out crypto companies, buying up stakes in fintech giants, and even making million-dollar sponsorship deals.

Now, everything is washed up like Sam’s dirty laundry.

Everything he touched went from 🌟 to 🧻 real quick.

• Bailouts: BlockFi, Voyager, Celsius 🤏

• Acquisitions: Robinhood (15% stake), Sky Bridge Venture (30% stake), Bitvo (full acquisition), etc.

• Sponsorships: Mercedes F1, Miami Heat home stadium, Major League Baseball (America’s cricket), etc.

Who knew all the money spent on these sponsorships were user funds. 🥲

Onto the winners. 🥇

BNB

Although, BNB is not directly affected in any way because CZ claimed Binance doesn't use BNB as collateral to secure any loans. (ahem LUNA…ahem FTX), it is still kind of a winner.

Why?

• People associate BNB with Binance.

• BNB is the native token of the Binance Smart Chain

• The FTX Arena, might be renamed to BNB Arena in the near future. 🤷‍♂️

So if people and the larger market think that Binance is due to this Rajnikanth-level move by CZ then, they might also be long on BNB and its wider ecosystem.

And as we said earlier, the BNB ecosystem already has the highest number of DAUs (daily active users) among top chains.

So…things are looking pretty pretty pretty good. 😎

Do Kwon and Zhu Su

Sam's joining an elite group of crypto swindlers.

Do Kwon, Zhu Su, and the other members of this crypto gang now have a new friend in Sam Bankman Fried, the curly-haired fallen crypto heir.

Suddenly, with FTX (a $32 billion company), FTT (a $2 billion market cap crypto), and a bunch of investments through FTX Ventures going down the 🚽, Luna doesn't look so bad.

The "gang" which also has Martin Shkreli. And he was giving some top-notch advice to Do Kwon.

In an episode of Cobie’s UpOnly podcast Shkreli told Kwon ‘Jail ain’t all that bad bruh. 🤣’

What advice will the gang give to SBF? 🤔

Finally, 1 idk, you decide.

Coinbase

Coinbase is in the middle of this fiasco going 🤷‍♂️

🫳 On one hand, a competitor (FTX) just blew up.

🫴 On the other hand, another competitor (Binance) is responsible for the blow-up.

The big difference between Coinbase and the rest of the exchanges is — Coinbase chose to go down the route of selling stock and not tokens.

At the center of this FTX-shitshow as the FTT token.

• FTX pumped FTT

• FTX and Alameda hold a ton of FTT

• FTX and Alameda use FTT to borrow cash

Coinbase can’t do this with its COIN stock. In fact, it can’t even pump it. That’s insider trading.

Fun fact: Coinbase’s shares are down 80% in 2022 🤡

So, is Coinbase a ✅ winner or a ❌ loser?

We don’t got a clue.

Tell us where you’d put Coinbase by replying to this email.

Crypto doodh shots: Guess who bought the dip?

🤫 Cathie Wood's Ark Invest Buys The Coinbase Dip While FTX got all the limelight, Cathie Wood bought $21 million of Coinbase stock that’s down 80% in 2022

🙊 BAYC-creators Yuga Labs propose a new model for NFT royalties Creators should have an “allowlist” where they can approve secondary marketplace transactions that pay out royalties

💥 Derivatives Daddy calls for Bitcoin bottom at $17.5k Bitmex co-founder Arthur Hayes compared FTX to Lehman Brothers from the 2008 financial crisis

🐦 Elon sold $4 billion in Tesla stock since becoming Chief Twit Musk’s other company (no, not SpaceX, or Boring or Neuralink or OpenAI) Tesla still owns over $200 million in BTC

💳 From crypto broker to banking solutions provider, Aplo goes big With this approval, the French crypto brokerage firm can now provide banking solutions across the EU

Taaza Tweet Of The Day

You just can’t practice safe CEX in crypto. 🤷‍♂️

Not your keys, not your crypto.

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.