🛑 SocialFI Got Stopped

Gm, this is the doodhwala, the crypto newsletter that’s as good as Virat Kohli in a high-pressure runchase. 🤌

Here’s what we got for you today:

• 💀 SocialFi Has Problems: How Stars Arena Lost Millions In a Hack

• 📉 Where Ya At?: Why Binance Is Losing Spot Market Dominance

• 📈 Cheese and Charts: The Not-So-Relevant Stablecoin Story

• 🛠️ Resourcewala: Web 3 X Social Media

• 🍼 Doodhshots: Crypto Finally Mainstreaming

💀SocialFi is Unstoppable → Kinda Stoppable

Top of da morning fellas! 🌥️

On this auspicious Monday, we'd like to take a moment to recall how we wrote about SocialFi becoming unstoppable pretty soon. 🤐

Yeah well, they got stopped. ✋

Stars Arena, the Friend Tech app built on Avalanche, just went through a hack— And lost close to $2.85 million! 😵

What was this hack?

And how did they make a $3 million hack look so simple? 🧐

1️⃣ How They Got Hacked

You know that 💩 has hit the fan, when the company itself asks you to stop depositing funds.💀

And that's exactly what happened — Stars Arena went through something called a DDOS Attack. 🥷

They do this by pushing multiple commands and prompts into a company server. Thereby gaining access to multiple controls of it. 🧐

Stars Arena is just more on the list of companies that have suffered this form of attack in the crypto industry.

It’s just too common! 🤷‍♂️

This was their panic-induced announcement. 👇

2️⃣ We’re going to be in full-out war with the hackers

Well, guess what?

The exploit was fixed, and almost all funds have been recovered too. 😳

But Stars Arena is probably a huge fan of Andrew Tate—

And decided that they wanted to label this as a Matrix attack. 🥷

And what did they do?

Add more security. ❌

Change the product interface. ❌

Decided to blame society for it. ✅

They've declared a straight-up war against — The World. 🌎

Hey man, FYI, if you get hacked, playing the victim game ain't gonna help. 🙅‍♂️

I mean, have you seen SBF lately? 🥱

2️⃣ So, Metamask was right?

Yeah remember when Metamask was throwing a warning when you tried to enter Stars Arena?

Well, guess they were right about the security of the site.

But can the little guy actually be right too? 🤔

Look everyone gets bullied from time to time.

But you can't lack on quality of work that you produce and play the victim. 🤷‍♂️

Now that Stars Arena has recovered the money.

All they need to do is work on seeing how they can avoid such 💩in the future.

Otherwise, get ready to lose some trust! 🥱

Doodhwala’s Take:

Hey look man, we serve milk. 🥛

If we could predict the future of a niche sector with limited users—

I think we’d stop investing in a bunch of shitcoins! 🤷‍♂️

📉 Binance, Where You At?

Binance.

The crypto exchange that’s more famous for its founder than what it really does. And we all know its founder → CZ (Chnagpeng Zhao).

Yes, the only crypto founder who has interns just for taking photos of his fans with him.

One of those 10,000 photos he’s taken with his fans👇

So coming back to Binance.

The exhcange’s spot market share is falling more than my dating standards.

• It's been going down for 7 months straight! 😲

• In January 2023, they had 55.2% of the market. 🌟

• But by September? It dropped to 34.3%👇

And that's not all. 🙅‍♂️

Their place in the derivatives market? 🎲

• It was really high at 62% at the start of the year. 🥇

• But in September? It went down to 51.5%. 😬

Just like my respect went down in my parents’ mind whom I suggested to invest in crypto.

Now this is how I roam in my house👇

Now you might be thinking...why tf is this happening? 🤔

Well, there are a few reasons:

1. They're having some regulatory problems in the U.S. 🇺🇸

2. They stopped their zero-fee trading promo for big trading pairs.

3. And… they also left Russia completely! 🇷🇺

   👉 They sold their whole business there to a new exchange → CommEx. 🔄

   👉 Russia was a big deal for Binance. Like, 7% of their total traffic.

They also changed how much they charge for trades in September. 🔄

Now, regular users (not the VIP ones) have to pay a small fee when they trade. 💰

Don’t worry we are the same bro.

They now get charged a 0.1% taker fee on spot and margin trades. 💰

Not good. Not nice.

But here's something interesting!

Binance's loss seems to be everyone else's gain. 📈

These exchanges are getting in more users:

• HTX

• Bybit

• DigiFine

And others like OKX and Bitget are doing better in the derivatives market. 🥧

But Doodhwala is doing the best cuz we are the best.🥛

So, will Binance fall more? 🤷‍♀️

Only time will tell. ⏳

Doodhwala’s Take:

Maybe CZ should hire interns to gain market share and not click photos. 🤣

📈 Cheese and Charts: The Not-So-Relevant Stablecoin Story

The stablecoin market got a downgrade after a certain dude from South Korea—

Decided he wanted to build an Algorithmic stablecoin. 🤡 (Laughs in TERRA)

And everything for the segment has been downhill since then. 📉

How bad is the down baddery?

About 35% down YTD. 😮

The market cap for stablecoins has dropped—

All the way from $189 billion in May 2022 → to $124 billion today. 😨

We need to figure out one thing - Are stablecoins slowly becoming irrelevant?

Our take - NO. 🙅‍♂️

Now there are a bunch of reasons why they have declined—

• Lower retail participation and increased institutional money in the crypto ecosystem

• Declining Value of the US Dollar (a.k.a Governmental De-peg)

• Most people still prefer Fiat > Stables

And it doesn’t end there. There are a ton of other reasons that hold true, yet crypto is now stronger than ever. 💪

If there is a problem we can identify here, it would be to understand why the frick USDT dominance has risen close to 68%. 🤡

Ignore the FUD milky fellas, and stick to the bigger problems. Like monopolies in the market. ❌

(NGL, we run a monopoly in the milk industry) 🥛

Cheggout the market cap declines in all stables, except USDT. (The Green goblin) 👇

🛠️ Resourcewala: Web3 And Social Media

Who isn't over the monopoly of the social media giants? 🙄

Web3 is here to bring the power back to the people and re-shaping the very essence of social media. 💪

Everybody wants to rule their social world and Web3 is the knight in shining armor! 🛡️

No more Mr. Zuckerberg deciding what we see and say.

This resource covers how Web3 could restructure our social interactions:

1. What's the big deal about Web3? 🐝

2. Why are we saying bye to centralization? 👋

3. How will it modify social media dynamics? 🔄

Let’s reshape, reinvent, and re-own! 🔥🔥🔥

🍼 Doodhshots: Crypto Finally Mainstreaming?

• 🕵️‍♂️ Heist Heroics: Huobi plays detective, offering a bounty and successfully reclaiming $8M in Ethereum from a hacker! I might need Huobi for my friend.

• 🇺🇸 Token Treasury: Coinbase welcomes tokenized U.S. Treasuries, as Backed’s RWA Token Issuance makes a patriotic entrance. Uncle Sam in the crypto house?

• 🚀 FriendTech's Fortune: Since its August debut, FriendTech developers are have made around a whopping $20M. Friendly money or free money?

• ⏳ Expanding Empire: Ethereum's supply inflates by a whopping $47M in just 30 days. Bullish or bearish, you decide!

• 📖 Book Bummer: Critics claim Micheal Lewis’ book 'Going Infinite' on SBF is more fiction than fact. Fact-check, maybe?

🤣 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