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Today’s edition is brought to you by Stader Labs - a liquid staking provider backed by strong DeFi partnerships, a wide range of offerings, and top-notch validator selection. |
Get the best in class staking rewards! |
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GM. This is Milk Road, your personal crypto buddy – we'll hold your hand through the market’s roller coaster ride and scream together. |
Here’s what we got today: |
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MILKBUSTERS: IS A MULTI-BILLION DOLLAR CRYPTO SELL-OFF COMING? 🔮 |
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We’re back again for another edition of Milkbusters, where we debunk the biggest misconceptions in crypto. |
Today we’re talking about FTX’s multi-billion dollar crypto portfolio. |
You see, over the weekend this image was going viral on social media. It shows FTX’s recovered crypto holdings (worth ~$3.5B) as of earlier this year. |
These are assets that the bankrupt exchange would sell in order to make creditors whole. |
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Along with the image, there were two rumors circulating… |
1/ FTX will start selling its tokens this week. |
2/ FTX will sell all of its tokens at once. |
The rumors sent the market into panic mode and most of the tokens in FTX’s portfolio into the Red Zone. (not the one with Scott Hanson either) |
But, are the rumors true? Let’s dive in. |
Myth #1: FTX will start liquidating its assets this week |
Our Findings: False. |
Although FTX created a recovery plan for its creditors, it still doesn’t have court approval. |
The plan will be presented to the Delaware Bankruptcy Court on September 13th to get a thumbs up from the judge. |
Many are speculating it will get approved, but if there’s one thing we’ve learned over the years it’s…. |
Courtrooms are as unpredictable as Week 1 of the NFL - you never really know which way it’ll go. |
Myth #2: FTX will sell all of its assets at once. |
Our Findings: False. |
Even if FTX’s recovery plan does get approved, there are a few important things to point out: |
According to court documents, FTX would only be allowed to sell $100M worth of crypto each week. This could be increased to $200M/week with court approval - but that’s the max. Some of FTX’s crypto assets are staked and locked for the next few years. For example, most of the bankrupt exchange’s $SOL holdings are subject to a linear vesting schedule from 2025-2027. (aka it will take years for these funds to be accessed)
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In summary - no, FTX isn’t selling billions of dollars worth of crypto this week. This is why we’re giving it a rating of… |
Milk-Road-Worry-Meter: 3 |
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Remember kids: say no to drugs, and don’t believe all the FUD. |
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The liquid staking craze is spreading faster than you can say “lactose intolerant“. |
Who’s been leading the charge? Stader Labs and their wide range of offerings. Well, one offering just crossed the 50K BNB staked milestone: |
BNBx: |
Offers one of the highest staking rates of up to 2.87% through its best-in-class validator selection. Benefits from enhanced DeFi rewards through yield farming, lending/borrowing and leveraged staking with top protocols like Thena and Wombat. Provides transparency and real-time visibility into the performance through Stader’s Validator Dashboard.
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But that’s just the start of what Stader Labs has to offer. |
They also have $5M+ in TVL across integrated DeFi platforms, timelocks and multi-sigs on their smart contracts and many audits accompanied by bug bounties. |
Get the best-in-class BNB staking and DeFi rewards with Stader's BNBx! |
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CRYPTO’S NEW ACCOUNTING RULE 👀 |
A BIG move was made last week… |
What happened: The Financial Accounting Standards Board (FASB) unanimously voted in favor of companies using “fair value” accounting to report crypto assets. |
This would allow companies to more accurately report the market value of their crypto assets. The rules will go into effect in 2025 but companies can start using fair-value accounting immediately, if they want to.
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Why this matters: This is a huge improvement from the former crypto accounting rules. |
Previously, companies would be required to report (and keep) impairment losses from crypto on their balance sheets - even after prices went back up. |
Now, companies will be allowed to record their crypto assets at a fair value. |
Many are speculating that the recent change could convince more companies to add Bitcoin to their treasuries. |
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The theory is that fewer accounting headaches = more companies attracted to buying Bitcoin. |
Only time will tell if this Law of Attraction™ pans out, but it seems to be a step in the right direction for future crypto adoption. |
(Btw - CryptoTreasuries is a cool tool to check out which companies currently hold Bitcoin in their treasuries.) |
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BITE-SIZED COOKIES 🍪 |
Vitalik Buterin’s Twitter was hacked over the weekend and ~$700K was stolen from users. A malicious link was posted from Vitalik’s account, resulting in users getting drained of their crypto. Turns out Vitalik is human (and hackable) after all. |
Leaders of G20 (aka the 20 biggest economies in the world) are pushing for a new international crypto framework. The countries would exchange info on crypto transactions, wallet providers, and unregulated crypto exchanges on a yearly basis. |
Friend.Tech gets another surge in activity and users as its total value locked (TVL) reaches ~$20M. The decentralized social media platform is back from the dead. (btw - if you want to dive deeper into Friend.Tech check out our guide here) |
The CEO of Thodex (a Turkish crypto exchange) was found guilty of fraud and was sentenced to 11,196 years in prison. I hear it was between 11,196 years in prison or 1 full year of listening to the “Baby Shark” theme song on repeat - he chose prison. |
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MILKY MEMES 🤣 |
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HIT THE INBOX OF 250K+ CRYPTO INVESTORS |
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What'd you think of today's edition? |
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ROADER REVIEW OF THE DAY |
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VITALIK PIC OF THE DAY |
 | Milk Road Images @MilkRoadImages |  |
| Vitalik to his hacker: |  | | | Sep 11, 2023 | | |  | | | 0 Likes 0 Retweets 0 Replies |
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DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research. |
