😅 The CRAZY reason behind the market dump

Gm, this is the doodhwala, the crypto newsletter that’s DEFINITELY more exciting than a Champion’s League Finals. 🤷‍♂️

At least more exciting than the one that happened on Saturday. (BORRRINNNG! 😪)

Here’s the lineup for today:

• 🔴 Big RED Dump: Almost every altcoin dumped SUPER hard over the weekend. The reason might shock you.

• 💰 Don’t call me SECURITY! Every token called security by the SEC is lashing out and we’re all for it!

• 🎈Deflating Balloons: ETH is the most deflationary crypto of all time? Think AGAIN.

• 🛠 Resourcewala: Getting Staked with Ethereum.

• 🍼 Doodhshots: Crypto.com says goodbye to crypto?

🤔 Can Robinhood Dump The Markets?

The markets were as red as a Rooh Afza combined with doodh over the weekend. 🔴

But hold on, there wasn’t any “big news’ that triggered it.

So that means—

👉 Everyone just chose to sell their bags all of a sudden.💰

👉 It’s happening because of someone.🧍‍♂️

You and I know that the 1st theory is pure B.S.💩

So what triggered the fall? And who’s behind it?🤔

Let’s begin this Monday with a spice🌶️-cy conspiracy theory.

1️⃣ What happened to Altcoins over the weekend?

Well, this. ↘️

The movement was so weird that we had to chug a glass of doodh just to cope. 🥛

But let’s understand what happened tho—

👉 Some hella sus moving of tokens to exchanges. 🤨

👉 Open market dump of said moved tokens (allegedly). 📉

👉 Alts dropping anywhere between 25-30% in price. 😱

All of this is on top of the pressure from the SEC stating that most Altcoins are not tokens but securities.

Damn, this movement got us buzzed in the head. 😵‍💫

Mostly because — nothing still justifies what or who triggered the movement.

Or does it? 👀

2️⃣ Understanding the numbers that drove the market down

One of the biggest pros of Crypto and Doodh is the same. 🥛

If it’s bad, you can just look it up and figure it out. 🤷

That’s what On-chain data can help with. And upon a glance, it was unveiled that there indeed was someone behind the dump. 🕵️

In fact, not just one, but rather 3 entities.

👉 Cumberland

👉 Jump Trading

👉 Robinhood

These 3 folk took the help of Illiquid environments on the weekend and started selling on the open market. In millions. 🤑

On-chain data suggested that two wallets, relating to these entities had moved over $9.4 million to exchanges.

Not just that. Over…

• 9 million MATIC (Worth $6.4 million)

• 5 million MATIC (Worth $3.5 million)

… had been added to Binance and Coinbase respectively.

Hehe, not so slick anymore, eh bois?

3️⃣ The Robinhood conspiracy theory

Where do we arrive with this now?

We are more or less aware of who did it. But who could do it? What’s their motive?

This is where facts end, and the tin foil hat conversation begins. 🎩

The spreading rumour is this-

• Robinhood announces that they will stop supporting a few altcoins that the SEC now considers as securities. (Cardano, SOL and MATIC)

• They also announce that anything that any Alts that are not withdrawn by Jan 27 will automatically be sold on the open market to fiat.

• Over $1.29 billion worth of altcoins are tied to Robinhood. 😨

• Most of these users don’t know how to self custody their tokens and are YOLO investors.

• Soooooo, it’s possible that someone FROM Robinhood anticipated the news, and decided to take action in their own hands.

Alright then. We deciphered

👉 The entities

👉 The crime &

👉 The suspects

But do we actually know if Robinhood was the one who did it?

Nope, because there is no actual data on the timing and wallet of sale on CEXs.👛

But hey, you know what they say!

If it swims like a duck and quacks like a duck, it’s probably a frikkin’ duck. 🤷

Who knows what the hell pushed these tokens down? Could be gravity as well!

But we’re not trying to point fingers at Robinhood.👉👈

Maybe we are. Idk. We should stop.

We’re prolly starting to sound like this now.👇

Doodhwala’s take: Market movements can wipe people out of the markets. And you need to tread carefully if you swim in uncharted waters.

Coz always remember, there’s a whale that’s bigger than you.🐳

❤️ Hold on, crypto gang!

The SEC’s been trying to shut the crypto party down lately. 😒

Those old guys in suits are shaking their fingers at different tokens, saying they're securities. 😮

Just a regular day in the office for the SEC, I guess. 🗄️

But the tokens aren’t backing off, I mean why would they?

They knew this would come someday (and they drink doodh every day, so no fear). 🥛

While all this happening, Musk be like👇

Those tokens:

👉 BNB

👉 Coti's COTI

👉 Filecoin's FIL

👉 Solana's SOL

👉 Binance USD

👉 Cardano's ADA

👉 Polygon’s MATIC

👉 Sandbox's SAND

👉 Algorand's ALGO

👉 Axie Infinity's AXS

👉 Cosmos Hub's ATOM

👉 Decentraland's MANA

But wait... security? What's that? 🤔

So, why the fuss about these tokens being securities? 🤷‍♂️

This is the crux of the issue, guys.

If tokens are classified as securities, they fall under a whole bunch of regulations. Think paperwork, legal scrutiny, and a lot of red tape. 📜

So, who’s caught up in all this? ⛈

First in line, is MATIC, with Polygon going all Rocky Balboa on SEC 🛡

According to Polygon, the token was developed, deployed, and its focus remains - "outside the U.S."

They had a clear message for SEC - "We didn't target U.S.F for making MATIC available." 🎯

They make a compelling argument, but the SEC isn't backing down.

Price effects? Well, MATIC took a hit!

Down 2% in a day and a nasty 33% drop over the week. 😢

MATIC feeling the heat. 🥵

Who else took the hit, you ask? SOL and ADA, to name a few. 💥

Solana Foundation sticks to its guns, firmly saying SOL is no security.

It's the native token of the Solana blockchain, an open-source, community-focused project.

They believe in their cause, regardless of what the SEC says. 👏

Cardano’s IOG is also hitting back, denying any notion of ADA being a security.

They say the SEC's claims are full of "factual inaccuracies". 💣

They point out that to draft responsible legislation, you need to understand how decentralized blockchains work. Fair point, isn't it? 🤓

What’s the mood on the street tho? 🚶‍♂️

One developer in the Solana community sums it up with a casual "I don’t think any of the developers give a shit."

And the market? It’s a bit shaky, with ADA dropping 3% in 24 hours. 😱

Doodhwala’s Take:

If you're into crypto, the next few weeks are gonna be wild.

So, here's to MATIC, SOL, ADA, and all the others - stay strong, buddies! 💪🎉

And, there you have it! The doodh, the whole doodh, and nothing but the doodh in this big SEC vs Crypto drama.

📈 Cheese and Charts: BNB deflating like a balloon

Ain’t no better party than one where you can start poppin’ the balloons after everything is done and dusted. (Ehmm… Not to be taken out of context.)🎈

But wait, that’s not the deflation we talkin’ about. ❌

We’re talkin’ about token deflation.

☝️ This usually happens in one of 2 methods —

1️⃣ Transaction fees

2️⃣ Coin burning

In simple terms, a lesser supply of tokens = a higher value for them. 📈

Over the years, a ton of Layer 1 projects have claimed that they are working towards creating deflation on their native tokens. 📅

But who’s whippin’ who’s butt and winning the game? 🍑

Let’s take a look at what the numbers have to say👇

👉 BNB was the most deflationary, with inflation rates dropping by 5.4%.

👉 Second (but not close) was ETH with a deflation rate of 0.2%.

👉 The worst in the game? SOL and DOT have been inflationary, with numbers close to 8%. 😱

Which token do you think will be the most deflationary over the years? Hit reply and let us know your thoughts! 👇

🛠 Resourcewala: Getting Staked with Ethereum

Remember The Merge?

When Ethereum swapped their Proof of Work (PoW) consensus mechanism for the sleek, sexy Proof of Stake (PoS). 😎

Why's this a big deal? Well, it's like going from your old-school Nokia 3310 (still love that snake game though) to the latest iPhone. 📲 More efficient, eco-friendly, and man, just downright cool.

But wtf does PoS even mean?

This is where today's resource kicks in:

• A layman's explanation of Proof of Stake

• Ethereum's journey from PoW to PoS

• How PoS impacts Ethereum's functionality

🍼 Doodhshots: Crypto.com Says Goodbye

• 🍸 Scammy Cocktail: EU watchdog slams Instagram and TikTok, saying they're mixing up a 'toxic cocktail' of crypto scams. Swipe left, guys!

• 🎰 BNB's Bad Bet: Binance's BNB token hit with a tidal wave of sell orders just before SEC lawsuits rolled in. BNB holders, you feeling lucky?

• 🏛️ Crypto[dot]com's U-Turn: Amid SEC's relentless crypto crackdown, Crypto[dot]com decides to shutter its US institutional service. Pulling the brakes, are we?

• 🕵️‍♂️ Russian Roulette: US whacks two Russians with criminal charges over the infamous Mt. Gox Bitcoin hack. Justice served, cold and hard!

• 🤠 Texas Techie: Lone Star State set to become the new 'Silicon Valley' of crypto, according to Texas Blockchain Council President. Yee-haw, crypto cowboys!

🤣 Milky Meme Of The Day

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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 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.

Today’s edition was brought to you by Ritik Gupta and Sumanth

Edited by: Arvind Krishna and Aakash Athawasya

AY