🌶 FTX is getting FTXed by Binance

Namashkar, this is the doodhwala. The crypto newsletter that’s as FUN as watching Suryakumar Yadav play tennis with the Zimbabwe bowlers at the MCG.

Seriously…what were those shots yesterday! 🤯

Here’s the scoop for today:

• The Web2 company taking over Web3

• Crypto's sugar-daddies on the brink of collapse

• Chaach and Charts: Binance is KING

• Taaza Tweet Of The Day

The Web 2 company taking over Web 3

The gigantic company that gave you the confidence to walk out of your house with just 3 rupees in your wallet because you have Google Pay on your phone, is taking over Web3.

Google is taking bade bade steps to get into this new thing that your parents don't understand i.e. Web3.

What exactly are they doing? 🤨

They are not launching a pointless token and they most certainly are not launching an NFT marketplace. (we have enough of those already)

Instead, they are going after core infrastructure. 💰

They are taking over the node infrastructure of two of the most prominent blockchains:

• Ethereum

• Solana

🔷 Ethereum

With Ethereum, they are launching a blockchain node engine.

What’s that? 🤨

To launch an Ethereum Node of your own, you need a lot of time, compute resources and bhagwaan ki ashirvaad.

It's often a boring process to manage all these resources after you do create a node.

But Google Cloud will take away all that pain faster than Vicks can take away that irritating throat itch.

Using their blockchain node engine, Google will take care of all the managing and hosting processes while you can just sit there and collect your ETH rewards for running the node.

Pretty cool, right? 😎

☀️ Solana

Google wants to build the same blockchain node engine for Solana as well.

To make it super easy to launch Solana validator nodes.

But before they do that, Google announced that they will actually RUN a Solana validator node themselves!

Do you understand what this means?

A centralized web 2 company will be running a validator node of a blockchain that is supposed to be decentralized. 🤯

Validators are the nodes that process transactions and create new blocks on the blockchain.

And now Google will have that ability on Solana.

Doodhwala’s take: This move by Google certainly makes the process of creating nodes on both Ethereum and Solana super easy.

With such ease comes the creation of more nodes → More nodes = more decentralization of the network. 😇

But a fully centralized company like Google offering these services and collecting data on users might not be the best way forward.

Then again…can you spell decentralization without centralization?

Crypto's sugar-daddies on the brink of collapse

A massive $40 billion crypto empire is on the brink of collapse.

And this is a crypto company you’re seeing behind Virat Kohli and Rohit Sharma at the T20 World Cup.

No, we’re not talking about BharatPe.

We’re talking about FTX.

FTX is worth $40 billion (more than Robinhood, and 6x the size of Zomato).

And they’re being taken down by another crypto exchange - Binance.

Binance’s CEO Changpeng Zhao said Binance will liquidate its holdings of FTT tokens.

Liquidate = SellFTT = FTX’s native tokenFTX = FTXed

Binance holds close to $1 billion (Rs 8,200 crore) in FTT tokens because they were an investor in FTX since 2019 (but exited in June 2021).

Since Binance announced its intention to sell:

• ~23 million FTT moved to Binance for the sell-off

• FTT’s price dropped by 15%

Why tf is this imp and why is the doodhwala talkin about it?

One word — sugar-daddy (okay two words!).

SBF and FTX were the sugar-daddies of the crypto world for months now.

They were loaning out millions to broke crypto companies, and even swooping in to buy bankrupt ones.

They told everyone, “We’ve got the money.”

But in reality, the “money” was FTT tokens i.e. tokens they created.

And tokens FTX didn’t create i.e. stablecoins are decreasing like crazy.

Even FTX’s sister company Alameda Research (of which SBF is CEO) is holding $6 billion (41% of their books) in either — locked FTT, unlocked FTT, or loans taken against FTT.

🤡

So, to bring everything home:

→ Binance will dump its FTT.→ FTT’s price is dumping.→ FTX (and Alameda) is holding a TON of FTT.

Could FTX be dumped on next?

I guess, we gotta wait and see. 👀

  Chaach and Charts: The KING of daily active users 👑

Daily active users are an important metric when looking at blockchains.

They are the distinct addresses that are performing transactions on any particular chain.

So which chain (L1 or L2) is leading?

🔷 Ethereum?🟣 Polygon?🔺 Avalanche?

Nahh…it’s the badshah- Binance (or BSC)

A significant amount of daily transactions have been happening since it’s launch.

It has even flipped Vitalik bhai’s Ethereum.

But are most of these transactions truly legit tho? 🤨

Taaza Tweet Of The Day

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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.