💥 FTX’s BIG problems in 3 numbers

Namaskara, this is the doodhwala. The crypto newsletter that’s as disruptive as Binance acquiring FTX after a long and very PUBLIC Twitter battle between the crypto badshahs, CZ and SBF. 🔥

This is true chaos maxxing. Full-on Joker vibes. 👑

Today is all about the Big Boy stuff:

• 3 stats that led to FTX falling to Binance

• The only survivor of the FTX Binance shitshow

• The best meme(s) from the last 24 hours

• Taaza Tweet: Did Twitter cause FTX’s collapse?

💥 3 stats that led to FTX falling to Binance

Okay, so FTX is in talks to get acquired by Binance.

A lotta things led up to this, here’s a TLDR:

• SBF bitched about Binance to US regulators

• CZ got pissed and moved to liquidate FTT I have moved straight to the end

• FTT’s price crashed forcing FTX and Alameda to cut losses.

Here are 3 numbers:

$380 million  - the value of stablecoins removed from FTX in the last week.

Ever since CZ said ‘we liquidating FTT’ users began to remove their → USDT, USDC, DAI, and other stablecoins from FTX kinda like me removing all the elachi from my chicken biryani 🤢

Just take a look at how much $$$ has been removed:

🗓 Nov 1: $450 million

🗓 Nov 8: $70 million

That’s an 85% fall in a week. 💀

FTX paused withdrawals temporarily to curb precisely this 👆

$200 million - the open interest on the FTT tokens across the top 3 crypto derivatives exchanges (FTX, Binance, and Bybit).

This was one day before Binance said it wants to buy FTX.

Wait, hold up — tf is open interest?

This basically means the value of contracts (in $) of a token traded through a futures contract.

Why tf is the open interesting spiking?

⬇️ Binance dumping FTT

⬇️ FTX users withdrawing stablecoins

⬇️ Traders shorting the 💩 outta FTT

⬇️ Traders opening new positions

⬇️ Open interest rising

🥲

The short compilation led to massive downward pressure on FTT’s price.

Guess what happened to it next?

80% - the drop in FTT’s price since this Karan Johar-esque drama started.

• down 35% from $25 to $17 when CZ said “lol we selling your shitcoin

• fell a further 70% when Binance announced, “we acquiring your ass”

The entire debacle cost FTT $1.6 billion in market cap

And what’s worse — FTX (the company) dropped its valuation from $32 billion to $10 billion in less than a year!

In the FTX 🤜 🤛 Binance aftermath, a few other tokens were in the spotlight:

🟠 BTC

In the past 24-hours over 20k Bitcoin worth $400 million moved outta FTX (before they stopped withdrawals lol).

They’re moving their BTC faster than people leaving the Mumbai local.

This caused BTC to slide below $18k, it’s lowest price in 2 years.

🟢 SOL

SOL is down by 40% in 24 hours cries in Tanmay Bhat

Alameda Research holds $1.1 billion SOL on its balance sheet. If the price of FTT continues to slide, Alameda could dump SOL.

🟡 BNB

CZ said Binance doesn't use BNB as collateral to secure loans.

Lol, he basically called out Terra (using LUNA) and FTX (using FTT) and a whole buncha exchanges and blockchains out there that dish out their own token.

Man’s got no chill 🤣

FTX proves ETH is super ULTRASOUND

Ever heard that wise old saying, “When one token falls, the other one becomes ultrasound.”

Yeah. Me neither.

But a version of this is happening with ETH.

At least, it's proving that ETH is ultra ULTRASOUND.

So what’s happening?

As we’ve been mentioning throughout today’s newsletter, FTX is tanking faster than Pakistan Cricket Team’s reputation after losing to Zimbabwe.

Their market cap is now less than $700 million making Sam Bankman-Fried a billie no more. 😢

But one thing you might have forgotten is that FTX spends gas fees to process transactions on its platform.

In fact, FTX was one of the biggest gas spenders on November 7th.

But on the 8th and 9th of November, the expenditure basically pulled a Nirav Modi and…disappeared.

Why tf?

FTX stopped processing withdrawals on their platform.

And because of this whole chaos, Ethereum gas fee spiked to 600 gwei.

What’s gwei?

So with the increase in gwei, the total supply of ETH would have increased by almost 649k ETH (or $860 million!) 🤯

But this did not happen because ETH is now enlightened. Enlightened to be Proof of Stake.

Yup, were it not for the PoS merge in September, the gas prices would have made us cry more than while chopping onions.

This basically proves that ETH is now SUPER ultrasound. 😇

Probably more ultrasound than the entertaining crypto coverage of the doodhwala.

No shame in admitting this. 🤷‍♂️

Milky Meme(s) of the day

Too many good memes to break our hearts. 🥲

Taaza Tweet 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.