👀 Guess who CZ is buying next?

Namaskara, this is the doodhwala. We are the Hanuman to your Ram. We literally have your name engraved in our chest. We are always at your service…go ahead and make a wish. Any wish!

We’ll make it happen…for you. ❤️

Here’s the taaza khabar for today:

• 💰Who’s got the money? Not exchanges.

• 👀 Guess who CZ wants to buy next?

• ⚽️ Reddit NFTs going to the World Cup!

• 🍼 Milky Meme Of The Day

💰Who’s got the money?

You might have heard the phrase “Proof of Reserve” quite a lot in the past week.

Everyone, including your friendly neighbourhood doodhawala, talked about it. 🤷‍♂️

What is it? 🤨

No, it’s not another consensus mechanism like Proof of Stake and no, Ethereum is not doing another Merge.

Proof of Reserve is basically, exchanges showing their reserves.

It’s them saying, “Chillax, I got your money. You can see it for yourself.” 😎

Since FTX collapsed, exchanges have been desperately trying to keep user trust.

So most of them are publishing their Proof of Reserves online.

And we at the doodhwala, took a look at a few top exchanges, mainly:

• Binance

• KuCoin

• Huobi

So here’s what we found:

🟡 Binance

Total Assets: $63 Billion

The highest % of assets are in their native stablecoin BUSD.

Having a considerable percentage of your reserves native tokens is usually kinda bad.

This is because you can control the supply of the native token

But in BUSD’s case, it’s kinda different.

Although BUSD is Binance’s stablecoin, it is NOT issued by Binance itself.

It's issued by Paxos. So Binance might have very little to do with the control of supply.

🟢 KuCoin

Total Assets: $2.5 billion

Kucoin has got ~40% of its funds in stablecoins.

And not just any stablecoin - like UST - but USDT and USDC.

They're also holding close to ~$500 million in BTC and ETH which is a strong sign.

But one concern is the concentration of their native token KCS which is nearly one-fifth (we know MATHs okay!!) of their reserve.

Their funds are spread across a bunch of different blockchains like:

⬇️ Tron⬇️ Bitcoin⬇️ Polygon⬇️ Arbitrum⬇️ Ethereum⬇️ Binance Smart Chain

🔵 Huobi

Total Assets: $3.2 billion

With Huobi, 100% of the assets are NOT in a wallet.

Almost 12% of the assets have been staked on Tron.

Tron is a decentralized blockchain like Ethereum, Solana, etc.

Is this good or bad?

Staking on Tron might be earning them some small percentage in interest but is it a risk worth taking?

Because if Tron were to collapse (not saying it will but can't be too sure these days), that 12% is GONE. 🤷‍♂️

Sure, its a small percentage but its still USER FUNDS.

And you can’t mess around with it, no matter what.

Guess who CZ wants to buy next?

Genesis.

Nope, that’s not the name of the next Marvel movie. Avengers: Return to Genesis.

That’s the name of the next crypto company that stopped withdrawals.

Genesis is one of those companies you know is big, because you’ve heard their name often. But you don’t really know why. Kinda like Wayne Enterprises.

I mean, wtf does Wayne Enterprises even do for Batman to live in a home like this:

And Genesis is BIGGER than 3 Arrows Captial, Celsius, and FTX.

Let me tell you why, through a story.

A decade ago, our friend - DOODH - couldn't buy large amounts of Bitcoin easily

There were multiple exchanges, across continents, trading at different prices.

Genesis solved this. 💡

They created the first Bitcoin over-the-counter (OTC) trading desk back in 2013.

Through Genesis DOODH (the buyer) found WALA (the seller) and made the trade.

And doodhwala was born.

Then crypto got BIG. And Genesis expanded into everything.

From loans to derivatives, Genesis is doing them all.

Or should I say, was doing them all?

🍼 Doodh Fact: Genesis is owned by the Digital Currency Group, the company that Grayscale Bitcoin, the largest holder of BTC, and Coindesk, the second-best place to get your crypto news!

Last night, they hit customers with that “look we gotta talk” breakup.

And they said, “it’s not been going great, you’re withdrawing too much outta me. I can’t give you any more loans. But it’s not you, it’s me.” 😢

So, why did this happen? And why is it sucha big deal?

Everything in crypto is connected to Genesis. EVERYTHING.

💣 3 Arrows Capital? They received (and blew up) $2.3 billion in loans from Genesis.💣 FTX’s market maker Alameda? They were counterparty to Genesis’s OTC wallet.💣 Babel Finance? Genesis had “a few hundred million dollars” in Babel.

What will happen next?

Genesis is the lender to everyone in crypto. But not “everyone” like me who only has $69 dollars to my name.

But BIG players.

• Exchanges that trade on OTC markets

• Institutions that wanna earn yield on crypto

• Traders who wanna borrow crypto

All of this now comes to a halt like they’re in Bangalore traffic because of ONE company.

And the aftereffects are already here.

Gemini, one of the largest crypto exchanges (owned by the twins from The Social Network), paused its yield program because all its money was stuck in Genesis.

And amid the collapse, Genesis has also found a potential buyer for their loans.

I’ll give you a hint — 2 letters — C — Z.

Doodhwala’s take: Genesis going down is bigger than FTX or 3Arrows. Now, institutions are running away faster than I do from a vegetarian buffet.

Chaach and Charts: Reddit NFTs are going to the World Cup!

We all saw how crazy people were over Reddit NFTs, right? Over 3 million wallets hold these NFTs.

The best thing? For 98% of the users, it was their first web3 interaction. 🔥

Reddit NFTs certainly killed it but this month they are back again!

Reddit launched over 8 Million more football-themed NFTs on Polygon! 🤯

Over 170k users have already minted it and are now trading it.

Which country are you supporting at the World Cup?

🇦🇷 🇪🇸 🏴󠁧󠁢󠁥󠁮󠁧󠁿

Reply with ANY flag and we'll send one winner some 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.