🤦‍♂️ Another Stablecoin Loses Its Peg

Gm, this is the doodhwala, the crypto newsletter that’s 99% cringe and 1% news.

We’re all about the cringe, baby! 😎

Here’s what we got for you today:

• 😩 Pegging Problems: Another stablecoin loses its peg.

• 🥷 New crime transaction method: Say goodbye to BTC being the underdog of crimes.

• 📈 Cheese and Charts: People locking up their ETH. A lot.

• 🛠️ Resourcewala: WTF is crypto?

• 🍼 Doodhshots: FTX selling not yet over?

💔 Another Stablecoin De-Pegs

It’s almost as if every stablecoin HAS to lose its peg at one point or the other.🤷

And the latest entrant to the peg-losing list…drumrolls🥁…is…

🎉 TrueUSD 🎉

With over $3 billion in Market cap, they’re not that big of an industry mover. 🙅

But with all the latest developments - could they pose a threat anytime soon?

And what are people saying about the peg-losing? (💀)

Let’s explain this pegging → Movie style.🕶️

1️⃣ The Intro 🙋‍♂️

So what even is TrueUSD (a.k.a. TUSD)?

Well…sigh… It’s a stablecoin backed 1:1 with the US dollar. Meaning $1 = 1 TUSD.

We’re obligated to say the above sentence☝️

But that ain’t actually true IRL.🤡

Most (if not all) stablecoins can have a massive issue with maintaining or even losing their peg.

So technically $1 is not equal to 1 of any stablecoin. 🤷

2️⃣ The Villain 😈

The villain of this movie enters the scene, and it turns out to be none other than the TUSD team itself. 🥴

The TUSD team announced they would be halting all mints and redemptions.

Why- you ask my doodh?

Sari hello to their banking partner → Prime Trust. 🫡

Prime Trust is under the lens rn for a bunch of 💩 - but more importantly—

Have a cease-and-desist order on them. 💀

This was the first main domino to fall on the TUSDs peg.

3️⃣ The Plot 🧐

The second Domino is where the plot twists in this movie. 🧐

This is the part where you go grab a glass of doodh.🥛

When people were highly concerned about TUSD working with a troubled Banking partner—

A new name would make things worse. 😈

And that name is Armanino Digital Assets.

Who are they? → Former FTX accounting team who re-branded their name. 💀

And people found out that the stablecoin’s Proof of Reserves and auditing were done by the same team. 😱

This led to ✌️ things—

👉 TUSD losing its peg, falling to 80 cents on the dollar on Binance US.

👉 Conspiracy theories of why dafaq Binance was involved in the first place.

Yup.

Binance again. 🤡

Binance announces last week that they were printing a billion TUSD for Zero fee trading on Bitcoin.

So, it makes sense when people come up with theories like this.👇

4️⃣ The Hero? 🦸

Don’t worry, if you thought the plot of this movie was too milky to handle —

There is a possible hero in this story. 🦸

And that was a guy who took a speculative short position on TUSD amid this fiasco.

How much did he deploy? → $4 million.🤑

Here’s how he did it—

👉 Deposited $7.5 million on Aave as collateral.

👉 Borrowed $4 million against deposited collateral as TUSD.

👉 Sold it against USDC for a whopping 20 cents for every dollar.

Daaaaamnn, this dude got us all spiced up. 🥵

Doodhwala’s take: TUSD is suffering coz they have bad banking partners, auditors and extreme speculators. But you know, as the saying goes - there’s nothing a glass of milk can’t fix. 🥛

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🪙 Bitcoin’s No Longer Favourite

Remember how Bitcoin used to be the bad boy of the crypto street? 🏍️

Well, not anymore!

Recently a report dropped a spicy fact.

Get this: fewer bad dudes are now using Bitcoin for their sneaky transactions.

Instead, they're either stashing their black money back into

👉 good ol' cash 💵

👉 other digital currencies

A study by a firm, specializing in risk management and digital asset compliance (try saying that after a few beers 🍻), gave us this intriguing insight.

Their "Illicit Crypto Ecosystem Report" revealed that over the past seven years, illicit Bitcoin dealings have seen a significant plunge. 📉

Enter the era of multi-chain!💥

This era has seen a considerable shift from Bitcoin to moving the dough acquired through dodgy ways.

Guess what the old-school default mode for dirty money movements is? Cash!💰

Like how cow milk is old-school and almond milk isn’t.🥛

Yup, cash and other traditional methods remain the go-to for funding nefarious activities.

Yes, yes, crypto-related crimes have surged. But hey, don't start pointing fingers!

Crypto didn't give birth to these shady dealings. 👀

In 2022, about $2 billion in crypto was swiped via attacks on cross-chain bridges.

But guess what, only a tiny part of that was Bitcoin. 🤯

Remember when Bitcoin was responsible for a massive 97% of illicit transactions back in 2016?

Now, it's a tiny 19% in 2022. 😮

Also, it used to be the star of the crypto hack show in 2016, accounting for two-thirds of the total hack volume.

By 2022, it was barely 3%.

Now, Ethereum (68%) and BNB Smart Chain (19%) are shouldering the burden. 💼

Also, Bitcoin was once the "go-to" for terror financing.

By 2022, Tron had replaced it with an astonishing 92%. 😬

Moreover, the use of Tether among those bad guys has increased by a mind-blowing 240% in 2022. 🎢

The good news, though? Bitcoin might just be getting ready for a comeback with institutional adoption. 👏

But, let's not forget, Bitcoin wasn't completely off the hook.

The numbers speak for themselves:

• $7.8 billion in scams 🕸️

• $1.5 billion in drug markets 💊

• $3.7 billion in DeFi hacks 💻

Not to mention, a whopping $3.7 billion was stolen via DeFi hacks and exploits in 2022.

🥛 Doodhwala’s Take:

Looks like Satoshi's baby is growing up, huh? 🎈

📈 Cheese and Charts: Staked ETH > Exchange ETH

ETH users are now officially using the Indian Mom method of storing funds. 👪

Locked up in their cupboards. Or in this case, staking ETH. 🔒

That’s right!

For the first time since the inception of ETH—

The total number of tokens Locked for staking has crossed the total tokens on exchanges. 😮

What does this mean, you ask?🤔

It implies that → People trust themselves more than they trust exchanges. 🤝

Not surprising honestly, considering that almost every exchange got rekt over the past year. 🤡

Holup tho, let’s try and understand what story the numbers have to say👇

👉 Staked ETH crosses 23.36 million this month - its highest ever. 📈

👉 ETH on exchanges drops to 23.33 million this month, the lowest in the past 3 years.

👉 ETH locked more than doubled over the past year, adding over 10 million. 😱

Does this mean it’s the end of exchanges? Or is it just a reaction to all the bad- 💩 over the last year?

Hit reply and let us know your thoughts! 👇

🛠 Resourcewala: Cryptoassets 101 for Newbies

So, your buddies can't stop yapping about Bitcoin, Ethereum, and the gazillion other digital coins that are turning mere mortals into money moguls overnight. 💸

But you're still scratching your head, thinking... "WTF are these 'cryptocurrencies'?" 🤔

Fret not, newbie!

In today's resource, we'll explore:

• What are Cryptoassets?

• Cryptoassets vs Traditional Assets

• Investing in Cryptoassets

And before you ask, yes, we WILL talk about those super mysterious NFTs too. 🖼️

LFG! 🔥🔥🔥

🍼 Doodhshots: FTX Plays Pause

• ⚖️ Brit-Law Breakdown: UK legal body proposes a fresh property law category for crypto assets. Is Queen's currency going cryptic?

• 🤖 FTX's Pause Button: FTX holds its breath on the sale of a hefty $500M stake in AI firm Anthropic, says Bloomberg. AI-mazing or AI-woops?

• 💰 Arrow Aftershock: Liquidators of Three Arrows are hunting for a staggering $1.3 billion from the fund’s founders. Arrow-ay, founders!

• 🔝 Full stock: MicroStrategy piles up more Bitcoin, soaring its treasury north of $4.5 billion. Big B for big business!

• ⚠️ Ponzi Pain: Crypto Ponzi Schemes made victims lighter by a jaw-dropping $7.8B in 2022, reveals TRM Labs. Beware of crypto cons, folks!

🤣 Milky Meme Of The Day

If you want more doodh then, be sure to follow our Twitter, LinkedIn, and Instagram.

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

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