👋 HEY CoinSwitch! Let’s talk.

Vanakkam, this is the doodhwala. The only newsletter that gives you the feeling of bunking class and still getting attendance.

Proxy ftw!! ✌️

Here’s what we got for you today:

• Hey CoinSwitch. Let’s talk!

• Ethereum’s withdrawal syndrome

• The great Bitcoin-buying experiment

• Milky Meme of the day

Sup CoinSwitch? Let’s talk!

We don’t really talk about specific exchanges, but this time we gotta address the doge in the room.

*serious voice ON*

Yesterday, CoinSwitch’s CEO put out this thread.

Hold up, here’s some quick facts about CoinSwitch if you don't know:

• 18 million users (not really sure, but they said it)

• valued at $1 billion+

• backed by a16z, Coinbase Ventures, etc.

CoinSwitch said they’re publishing their #ProofofReserves, and they were so confident that they even hashtagged it.

But all we got was this:

This is like when my mother asks me how much I got in my board exams I say, “Aakash’s grade > Arvind’s grade, without telling her how much I got!”

Like wtf is that?!?

That’s why we’ve got 3 problems with this proof of reserves.

1️⃣ It’s just a statement that their holdings are > their user's holdings.

2️⃣ It doesn’t say anything about the wallets where the crypto is held, blockchains used, or the allocation of the crypto.

NOTHING!

oh, and yeah, another small pointer.

3️⃣ IT’S NOT A PROOF OF RESERVE! If anything, it’s a PR stunt, that’s right we said it 🌶

*calmer serious voice ON*

An exchange’s proof of reserves isn’t → Text on a PDF saying holdings > user's holdings.

An exchange’s proof of reserves starts with one thing → Wallets.

By looking at the wallets you answer these 💡 questions:

• What wallets are associated with the company?

• What is the wallet’s crypto allocation?

• Who are the counterparties to the wallet?

None of these are answered with the thing CoinSwitch put out!

As an example, this is Binance’s proof of reserve, visualized through Nansen:

In the past week, we’ve broken down WHY proof of reserves is important, talked about an exchange with SHADY proof of reserves, and analyzed 3 BIG exchanges’ proof of reserves.

And your #ProofofReserves ain’t it chief Ashish!

Doodhwala’s take:

Blockchain analytics companies are literally telling exchanges, “Hey! Ya’ll want to put out proof of reserves? Hit us up, and we’ll make it easy and pretty looking. And we don’t charge users for it!”

But CoinSwitch is like nah! we’ll just put out an audit with one line instead of putting out our address.

FFS 🤦‍♂️

GIVEAWAY: Metamorphosis tickets

We’re doing a giveaway for tickets to Metamorphosis.

All you gotta do is:

1️⃣ Follow @DoodhwalaDaily & @octaloopHQ2️⃣ ❤️ & 🔁 the tweet below3️⃣ Tag 3 friends 👇

LFG 🔥

 DELAYED: The Ethereum MERGE rewards 🥲

Remember the Ethereum Merge?

You know the whole PoW to PoS switch.

Yeah. It seems like A LONG TIME AGO, right? Crypto moves really fast!

From one scam to another just like that. 😅

But we have been forced to remember The Merge again.

Well…at least a part of it.

So when Ethereum moved to the Proof of Stake mechanism, validators had to stake ETH instead of mining to validate transactions.

And one of the BIG incentives for staking your ETH is that you also get a percentage of interest as rewards on your stake.

The more you stake, the more your rewards 💰

So guess how much ETH has been staked so far?

15 million ETH or rather $18 BILLION worth! 🤯

So what’s happening now? 🤨

Well, when you stake your money, you can usually withdraw it as well.

Maybe not whenever you want to because there might be a lock-in period and whatnot.

But there is at least some sort of communication from the important people.

Here’s the timeline of communication from the Ethereum Foundation regarding the withdrawals:

• Before the merge — Withdrawals open 6 months after the Merge

• Weeks after the merge — Withdrawals open 6-12 months after the Merge

• Another few weeks later — Withdrawals open in 2024

And guess what they are saying now?

NOTHING.

They have actually removed the whole timeline from the website. 😂

This is like when your friend borrows money from you.

At first he promises to return it on the same day itself and then it moves to the next day and finally he ends up forgetting the whole thing ever happened. 🤷‍♂️

Doodhwala’s Take:

In this time of absolute LOW trust among investors and users of crypto, communication is key.

And Ethereum Foundation pulling an FTX kinda move is the last thing we need in these heartbreaking times. 💔

$18 billion is no small amount to be stuck for long time.

Ethereum devs need to figure this out and not keep delaying this like how they did the Merge.

It was supposed to happen in 2019 but ended happening in 2022. 😬

The great Bitcoin-buying experiment

Today [November 18] is the day that the most unlikely duo is gonna start buying Bitcoin EVERY SINGLE DAY.

Nayib Bukele, President of El Salvador, and Justin Sun, the Founder of Tron and owner of Huobi.

These two bad Bad Boys have pledged to buy BTC every single day.

Imagine that movie. 🤣

The duo hasn’t announced an end date for their Bitcoin buying strategy.

Basically, Nayib is just YOLOing into Bitcoin, hoping to buy and dip.

And Justin…well…Justin is being Justin tryna jump on the hype.

If they two end up keeping their word, this is how much BTC they’ll accumulate till:

🗓 End of 2022: 90 BTC worth $1.4 million🗓 Six months from now: 360 BTC worth $6 million🗓 One year from now: 730 BTC worth $12 million🗓 End of 2023: 818 BTC worth $13.5 million

*at the current price

HOLY SHIT!

Would you take part in this experiment and buy Bitcoin in this market?

Let us know WHY or WHY NOT by replying to this email! 👀

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.