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🤑 Someone is hoarding Bitcoin and how to stay safe from NFT rug pulls

Namaskara. This is Doodhwala. The crypto newsletter with a simple recipe like Maggi. Boring News + Mazedhar References = Doodhwala Dhamaka.

And just like Maggi, you’ll be done reading this newsletter in less than two minutes.

Woke up on the right side of the bed. Let the great day begin:

  • The Bitcoin rally that REALLY matters

  • An NFT rug pull went down last week

  • Tweetshot of the day

  • Meme of the day

The Bitcoin rally that REALLY matters

In the past few months, the crypto markets have been a giant dagger in our hearts.

Making us all bleed red.

So many disastrous and uneventful things happened.

Here’s a quick (and unwilling) recap:

  • Terra LUNA debacle

  • Celsius shutting down activity

  • 3 Arrows Capital going dirt broke

This market crash had more bad sequels than Houseful. Yikes!

With all this happening, one would expect that people would be playing it “safe” and investing in mutual funds, FDs, etc. (you know all the boring stuff) and not into crypto.

Well, that's what we thought too.

But we are wrong.

Despite the Fear & Greed index being in “extreme fear” in the past few months and even after our very own RBI recommending that crypto ought to be banned, more people have been buying/holding Bitcoin than ever.

Here are some facts to blow your head off:

  • 8.8 lakh BTC addresses now hold at least 1 BTC

  • 1.05 crore BTC addresses now hold at least 0.01 BTC — a new ATH

  • Buy orders outnumbered sell orders in most exchanges around the world

What the hell is going on?

Belief, baby. Belief!

Doodhwala’s take: The 2021 bull run gave a glimpse into what is possible with crypto and a lot of investors now believe crypto will reach new heights when the downturn ends.

This certainly helps with the further mainstream adoption of crypto.

People are ready to ride out the market and keep buying because they know the potential.

They have seen the light, much like the enlightened Tanmay Bhat.

We firmly believe that HODLing is the right mindset to win in crypto. And it seems like more people are adopting it even though the markets are down.

An NFT rug pull went down last week

Crypto has a lot of scams.

Almost as much as Akshay Kumar has do-good desi movies.

One of the most popular scams these days is with NFTs.

NFTs set the internet on fire last year with over $40 billion (Rs 3.2 lakh crore) in sales last year.

This opened the door for bad actors to make scam people. And this month, an NFT scam looted crypto users for millions!

First a primer on how NFT collections work

Most NFT collections communicate on Discord. Think of Discord like WhatsApp’s druggie cousin that stays in his room eating junk and playing PubG.

Discord is where NFT collections:

  • announce sales

  • build the community

  • share dank memes

Scammers infiltrate Discord and share scammy links to sales.

These links are to websites that look exactly like the original website. And when someone connects their wallet to receive an NFT — they’re wallet gets drained. Instead of the NFT going from the collection’s wallet to the user’s wallet, all funds from the users' wallet go to the scammer.

Well, this is what happened with a project called The Jews NFT collection. Scammers infiltrated Discord, shared a scammy link, and drained users’ wallets of funds and NFTs.

Doodhwala’s take: These kinda scams happen all the time in crypto, especially with NFTs. You gotta stay sharp all the time. Here are a few ways to avoid falling for these scams:

  • Maintain a separate wallet for NFTs

  • Check if links are sent by NFT officials

  • Check on Twitter if Discord is compromised

  • Read Doodhwala on the daily

Tweetshot of the day

Meme of the day

You cant be in crypto and not talk about it. 🤷‍♂️

That’s all for today bhaiyo aur bheno! Naale Sigona!

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 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.