💰 SBF gives solid bear market advice, and Vauld owes...

Kem cho degens! This is Doodhwala. We break down crypto news like how your liver breaks down those sick vodka shots from the weekend that you just can't seem to remember. (reminder: you’ll remember the weekend better if you replace vodka shots with doodh shots).

Speaking of breakdowns, here’s the breakdown of today's email:

• SBF is the good guy we need, but the one we deserve?

• Trouble….from the Vauld

• Tweetshot of the day

• Meme of the day

SBF is the good guy we need, but the one we deserve?

Let me introduce you to this guy:

He looks like the crypto version of John Abraham, right?

This here is SBF, short for Sabhka Bada Father Sam Bankman-Fried

SBF is a 30-year old billionaire and the founder of two big crypto companies:

• FTX, a crypto exchange

• Alameda Research, a trading company

Now he’s acting like Aamir Khan in Taare Zameen Par and helping out all the dyslexic crypto kids.

• He issued a $250 million (Rs 2,000 crore) loan to BlockFi

• He issued a revolving line of credit worth $100 million (Rs 800 crore) and 15,000 BTC to Voyager Digital

In total, he’s committed over $1 billion (Rs 8,000 crore) to save crypto firms. Yikees!

Why are we talking about him?

Well, he recently spoke at the Bloomberg Crypto Summit and gave us some hot takes:

• He’s bailing out companies because they’re customer facing and he wants crypto customers to get their money back

• Save your capital for after the crypto winter, don’t jump in rn (solid advice imo)

• Stablecoins, blockchains, and exchanges have survived, everything else has been wiped away or forgotten (Terra who?)

• Arbitrage traders and punters (3AC I’m looking at you) won’t make it out

• FTX could put some BTC on its balance sheet (like Tesla and Microstrategy)

• Volatility is a-okay for exchanges, but a healthy and stable crypto ecosystem is what we are all after

Doodhwala’s take: SBF is a real one for helping out crypto, but we at Doodhwala drink to his hot takes!

Trouble….from the Vauld

Vauld, the crypto lender which halted all activity on its platform and gave its users a big jataka and some severe withdrawal syndrome, owes $363 million to its retail investors according to court documents.

Here’s some breakdown of this whoopsie:

• $125 million is owed to the 20 largest creditors

• All of them are unsecured creditors (they ain't got no security on the money)

• $4 million is owed to FTX Trading

• $35 million is owed to a “Counterparty 1” (ooh..who might that be??)

The gist is that a lot of money is owed to a lot of people.

And one thing you learn after watching Gangs of Wasseypur is that you don't want to owe money for too long as well.

But is it all really that bad?

Well, a lot of crypto lenders like Celsius, BlockFi, etc have been facing huge issues since the market pulled a Vijay Mallya on us over the past few months.

It gave us a sweet sweet APY in the beginning but then later just some bad bad stuff.

Vauld, unfortunately, succumbed to the crypto contagion.

The good thing, however, is that the Vauld team has been putting a masterclass in communication.

They have been regularly giving updates to the investors through email, videos, etc on what the team is doing in these times and also hosting a live AMA with the CEO.

They have laid out multiple paths on how they are planning to get out of this, with the first one being a possible acquisition by Nexo, another round of (diluted) funding, launching a token, or working with the brilliant Doodhwala team for PR. 😉

We really do hope the investors get back their money back.

Or this might turn bad. Like spoiled Doodh kinda bad.

And there ain't no paneer coming out of this one.

Doodhwala’s take: The team at Vauld is doing a good job at reassuring investors that not all hope is lost. Now, all they have to do is follow through. Fingers crossed!

Tweetshot of the day

Meme of the day

That’s all for today peeps! See ya tomorrow!

Aakash "Dahi Cheeni" Athawasya & Arvind "Doodh Peda" Krishna

Oh and beeteedubs, we’ve got the doodhwala.eth ENS name. So, for all the many many people who wanted it, you can kiss our tall doodh glasses. Jk jk. Get your Ethereum domain here.