❤️ Web2’s silent CRUSH on Web3

Namaskara. This is the Doodhwala, we’re a bag full of crypto news, just like that plastic bag in which your Mom keeps all the other plastic bags.

Here’s what’s on the cards for today:

• Web2 ❤️ Web3

• Genesis is the one-word blunder

• Chaach and Charts

• Taaza Tweet of the day

Web2 ❤️ Web3

When we look at investments into Web3 or crypto companies, what are the top VC funds that come to mind?

• There’s always a16z

• Another one is Jump Capital

• Then there are Sequoia, Coinbase Ventures, Binance, etc.

• 3AC (lol)

But there are a few investors that you don't hear much from, that are spending more money on Web3 projects than Ajay Devgan spends on Paan Parag.

These are Web2 tech companies and banks that are trying to fit in with the cool crypto gang.

And they have collectively invested around $10 billion (Rs 80,000 crore) in the past few months.

Here are a few numbers:

• Alphabet (Google’s daddy) alone invested around $1.5 billion across just 4 projects

• BlackRock (KaalaPathar) invested $1.1 billion across 3 companies including FTX

• Samsung (that exploding phone maker) splurged $979 million across 13 Web3 projects including Yuga Labs

• Goldman Sachs (yes, not kidding) has invested close to $700 million in 5 Web3 projects

• Amul has invested $2 billion in doodhwala (they just went by the name)

Most of the investments from these Web2 companies have been in NFT solutions and services.

This is prolly because of the bull run NFTs have been in despite the bear market.

It is also because NFTs are freakin’ cool.

Just take a look at Crypto Dick Butts.

That’s what I call visionary art!

We also took a slightly closer look at the investment strategies these companies have been adopting.

Google, for example, invested in only 4 companies in the last few months and they are all projects that empower other projects.

Just like how doodhwala empowers Indian crypto investors.

• Fireblocks: All-in-one platform for building digital asset business.

• Voltage: Infrastructure for Bitcoin and Lightning Network

• Dapper Labs: NFT & Blockchain solution

• Digital Currency Group: Building and funding blockchain projects. Big daddy of Coindesk, Grayscale, etc.

A potential reason for this decision can be that one of Google’s most successful divisions is Google Cloud.

Providing infrastructure support to these large projects that can bring even more volume in terms of compute and usage will help them make more dough.

Samsung, on the other hand, has taken the good ol’ “spray and pray” approach.

They have invested in companies focusing on different use cases ranging from development platforms and blockchain services to NFTs and social networks.

At the end of the day, this is incredible for adoption and given the resources these larger Web2 companies have, Web3 Mogambos can be incredibly KUSH!

Genesis is the one-word blunder

At this point, 3 Arrows Capital (3AC) is like that one weird relative that comes to everyone’s house, eats, drinks, and overstays their welcome.

I hate that fufa ji!

And fufa ji is back bringing down a big BIG crypto company.

It’s Genesis. You know a company is big if it has just one name and a few syllables, like Apple, Hero, and Nestle.

Genesis has the same energy, ya feel?

What’s happening with Genesis?

Here’s the tldr:

• CEO stepping down after 7+ years

• Cutting 50+ jobs, about 20% workforce

• Filed a $1.2 billion claim against 3AC

The cutbacks are so severe, rumour has it, they’re replacing all chai with green tea! 🤢

Now, why is Genesis’s demise such a BIG thing?

I mean, right now the crypto market looks like a Roadies series, with one company getting voted off each week!

Your right! But Genesis is not small crypto company.

Genesis started the first over the counter (OTC) Bitcoin trading desk back in 2014 and it’s now one of the BIG 3 OTC firms (along with Circle and Octagon)!

You know the OTC market where volumes run up to $30 billion (Rs 2.4 lakh crore) a day. Yeah, that small thing.

For perspective:

• crypto spot daily volume: $20 billion

• crypto futures daily volume: $50 billion

• Nasdaq daily volume: $200 billion

The OTC market is what keeps institutions trading crypto without compliance issues. And much of this volume goes through Genesis.

Genesis also issues crypto loans.

As of June 2022, they issued $5 billion in crypto loans.

Out of which $2.3 billion was issued to

….checks notes….

….checks notes again….

….tries not to laugh/cry….

3 Arrows Capital.

But on the brightside, Genesis’s custody division is looking up as more crypto companies are custodying assets with them.

Possibly to prevent them from apeing into weird shitcoins like this one, or this one, and what even is this one.

Doodhwala’s take: Genesis going down can bring down a lotta other crypto companies. Let’s hope we’re not staring down Crypto Contagion 2.0: Return To Poverty.

Chaach and Charts

Ethereum users surged last week to over 2.7 million!

That’s almost equal to the number of people reading the doodhwala on the daily. 👀

Taaza Tweet of the day

That’s all for today folks! Kal Milenge!

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

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.