💵 Tether in trouble AGAIN!

Gm, this is the doodhwala, the only crypto newsletter that makes every day feel like a Friday (pronounced Friyay).

Just one more day to the weekend! 😮‍💨

Here’s what we got for you today:

• 🔗 Tether in trouble again?: USDT just got de-pegged from the dollar. Again.

• 💰 Big money in Bitcoin: Blackrock, the biggest company in the world, wants to help you invest in Bitcoin

• 📊 Where the VALs at?: Let’s look at top L1s validator origins

• 🛠️ Resourcewala: Rollin into Rollups

• 🍼 Doodhshots: Donald Trump NFT did what?

🔗 Tether Troubles

If you have a little brother who keeps annoying you every 5 minutes with some stupid 💩

Then there will come a day you’ll snap. 😠👊

That’s exactly what happened with Tether yesterday after millions of USDT was sold off on DeFi pools. 📉

What happened to Tether? And why did the stablecoin lose its peg? 🥃

Let’s understand Tether’s stress test, and how it was able to hold it up! 💪

What is Tether?

Tether is the largest and most widely adopted stablecoin across the globe. 🌎

Being the oldest in the game, they're widely used for:

👉 Real-time cross-border transactions

👉 Off-ramp to fiat

👉 Trading

They're backed 1:1 ( 1 USDT = 1 USD), or at least, that's what they say. 🧐

WTF happened to Tether?

Traders flocked in on Thursday to DeFi pools like it was a Black Friday Sale at Walmart. 🛒

Uniswap and Curve Finance have something called 3pool for dollar liquidity. This pool has 3 stablecoins in it:

1️⃣ DAI

2️⃣ USDC

3️⃣ USDT

We’re not sure if it was Whale activity 🐋 or general selling followed by panic, but the data shows that there was a surge in swaps from USDT → DAI & USDC.

This generally means that people are ditching USDT for other stablecoins.✅

Now what problem did this cause?

USDT lost its peg (meaning $1 ❌= 1 USDT), and started dropping below it’s blocked price.

This is the first time since the FTX 🤡-show that USDT has seen such activity on a Curve pool. 👇

What was the response?

Well, bear in mind that USDT is not an algorithmic stablecoin like Terra. 💀

And this isn’t the first time that it has de-pegged from $1.

When there has been a surge in withdrawals, USDT has de-pegged in the past. 📉

But we ain’t seen no Terra-like situation with them yet. 😵

However, it does pose the question:

Will there be a de-peg at some point if there are a huge number of withdrawals?

The question will have to remain what it us - coz we don’t know 💩 about what would happen in that scenario.

However, the CTO of Tether Paolo has only one thing to say to the people FUDing his stablecoin:

Bring it on. 🗿

Tether has been and will always be the hub for conspiracies.

One can ask so many questions about Tether.

• Why do they have only 10 employees?

• Why are they so shady about their reserves?

• Why are they audited by some obscure Italian company?

• How tf are they making $700 million every quarter in profits?

And most importantly – do they subscribe to the doodhwala?!?!?

It’s just weird that they’re so big and fail to answer some of the most important questions that people pose. 🤷

All we can do now is — Hope they don’t get rekt.

Doodhwala’s take:

Shady Stablecoin = Shady dollar peg.

Always remember that golden rule. And refuse anything that the oat milk gang says to you.🤢

💰 Is This Blackrock’s Bitcoin Era?

USDT de-pegging was not the ONLY shocking news. 😬

Blackrock, the assets management firm that also sounds like the name of a WWE wrestler, is doing something BIG. 👇

They are filing an application for a Bitcoin ETF. 🔥

Let’s break down the WHAT, WHY and HOW of it all, the doodhwala style. 🥛

1️⃣ WHAT is happening?

Blackrock is the biggest assets management firm in the world.

The total amount of assets they manage is currently at $9 TRILLION (yes, that’s a trillion with a capital T 😅)

So, Blackrock filing for a Bitcoin ETF is a HUGE deal. (like Superman making a cameo in the Flash movie kinda huge 🤷‍♂️ )

But wait…wtf is a Bitcoin ETF anyway?

With Blackrock filing for this, it will allow its investors to speculate on the world’s biggest cryptocurrency by market cap without going through all the steps of actually buying it from an exchange. 🤓

The hope is that this will get a lot more traditional finance people interested in Bitcoin.

2️⃣ WHY is it happening now?

The timing is certainly super interesting, especially with all the SEC drama that’s going on. 🤔

Cuz’ guess who has the authority to approve this application by Blackrock?

It’s Public Enemy #1 → SEC, baby! 😎

Yup.

The SEC has been skeptical about approving such ETFs due to concerns about market manipulation and investor protection.

But will they be able to deny a company as big as Blackrock?

The same company that manages more money than the GDP of EVERY country in the world except:

• USA 🇺🇸

• China 🇨🇳

So, it’s going to prettay, prettay, prettay interesting!

3️⃣ HOW is this going to work?

If investors are not holding any Bitcoin then how is it going to work? 🤔

This is where Coinbase comes in. 😎

Bitcoin ETFs need to be backed by actual Bitcoins that are held somewhere.

Blackrock intends to partner with Coinbase, the largest crypto exchange in the US, to make it the custodian of these Bitcoins.

And yes, it's the same Coinbase that's fighting the SEC. 😬

Gary Gensler Gonna Get Grilled 🎶

🥛Doodhwala’s Take:

We’ll have to wait and see how this plays out.

Will the SEC approve it?

And if it does, what will it mean for Coinbase and its fight against the SEC?

So many questions but not many answers. 🤷‍♂️

But don’t worry, your doodhwala is keeping an eye on this and will keep you updated. 🥛

📈 Cheese and Charts: Seeking Validation

Validatooooors!

They’re the Batman of every blockchain. 🦸⛓️

No one here has to fight no crime here tho. 👊

☝️This is usually done by third-party service providers for users who do not have the technical expertise or resources to operate their own node.

So here’s the question — Batman’s in Gotham City. Where the heck are our validators?🤔

Well, the goal is for validators to be evenly spread out across the globe so that local regulatory issues don’t hamper the performance of the blockchain itself. (…coughs in SEC)

However, with a glance at the below chart, we can see that —

👉 The dominance of validators is based in Europe and North America.🇺🇸🇪🇺

👉 The number of validators for every chain is different, and that affects transaction speeds.⏩

👉 Surprisingly SOL is so close to having a 50-50 in its validator distribution.😮

What do you think of the future of global validatooors setups? Hit reply and let us know your thoughts.👇!

🛠️ Resourcewala: Rollin into Rollups

Rollups.

They’re everywhere.

On blockchains, on Twitter, even on my sushi platter. But what are they and why does a blockchain like Ethereum need them?

Let’s answer that in today’s resourcewala with the doodhwala’s #1 Ethereum correspondent – Vitalik Buterin himself.

• What is L1 vs L2 scaling

• Where does a “rollup fit in”

• Real talk – do we actually need them

🍼 Doodhshots: Donald Trump NFT did what?

• 🇧🇷 Brazil Regulates: The Brazilian government has come up with a set of crypto regulations, with the central bank taking the most power. Fifa tickets via BTC then?

• 🇺🇸 Trump NFTs: Donald trump NFT owners can now burn their NFTs for exclusive prizes. Can’t wait to burn my NFT to meet him in person prison.

• 📚 Kiyosaki Predicts: Author of Rich Dad Poor Dad Robert Kiyosaki says more banks will fail, and Bitcoin will rise. Hey, can you sign my book dude?

• 💸 Celsius Swaps: Celsius users can now swap their Altcoins to BTC and ETH if they’d like to. Man, I just want my damn money.

• 🎁 Jack is Back: Ex-Twitter CEO, Jack Dorsey’s Block launches Bitcoin Wallets beta with Coinbase support

🤣 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