GM, this is Milk Road. We’re that extra blanket on a cozy night – wrapping you up in crypto knowledge and insights.
Here’s what we got for you today:
Crypto’s hot seat: Binance. US 👨⚖️
DEX trading volume in BOOMIN’ 🔥
How to lose millions in one month 😓
Cathie can’t get enough $COIN 🍪
SEC FILES MOTION TO FREEZE BINANCE (US) ASSETS 👨⚖️
Every week, someone is in the Crypto Hot Seat.
This week, it’s Binance.US.
Monday: it got sued by the SEC.
Tuesday: a restraining order was filed to freeze its assets.
Wednesday: it announced it would be removing select trading pairs and paused OTC trading.
Alexa, play “It’s Getting Hot In Here by Nelly”.
Why this matters: There’s a few things to highlight…
The lawsuit had a bunch of big accusations – wash trading, commingling funds, etc. We’re big on “innocent until proven guilty”, but it's not a good look. (Strike 1)
The restraining order is big because:
I thought restraining orders were only for crazy exes
The SEC believes that CZ (CEO of Binance) will move customer funds out and wants to prevent it from happening
The announcement to remove select trading pairs and pause OTC trading has caught a few people’s attention because it could signal a move to slowly wind down services. (Strike 3)
Individually, the three events aren’t reasons to push the panic button. But collectively, happening at the same time – raises a few eyebrows. Everyone knows, 3 strikes and you’re out.
Which is why we’re giving it a rating of…
Milk Road Worry-Meter: 9.
Milk Road Take: With all that being said, we suggest moving your crypto out of Binance.US.
Sure, it all might be a nothingburger. Or, it could be a real sh*tstorm.
It’s a “Wait-And-See-What-Happens” game. But it’s a high-stakes one.
Heads: you move your crypto out, self-custody your assets, and nothing big happens.
Tails: you could lose everything.
If there’s anything we’ve learned from crypto, it’s you’d rather be safe than sorry broke.
WE WANNA HEAR FROM YOU 🥛
With everything going on in crypto, we wanna know one thing from you…
Click your response and we'll share the results for the Milk Roaders very own, Fear & Greed Index.
WHAT’S NEXT FOR CRYPTO? 👀
DEX TRADING VOLUME IS ON THE RISE
Milk Road Rule #49: There’s no safe CEX (centralized exchange) in crypto.
Everyone is slowly starting to learn this golden rule.
So, what’s the solution? Use a DEX – decentralized exchange.
And DEX trading volume has been on the rise. From June 5 to June 7:
trading volume across the top three DEXes – Uniswap (Ethereum), Uniswap (Arbitrum), and PancakeSwap – jumped by ~$800M (+444% increase)
Curve (another popular DEX) saw a 328% spike in trading volume
In other words, business is boomin’.
And guess what? The Milk Man has already tried a bunch of DEXes out – so you wouldn’t have to. Check out the reviews here.
100 → 0 REAL QUICK 😓
Buckle up, Roaders. Holy cow do we have a wild story on our hands.
It involves a degen trader, a top NFT collection and whole lotta leverage. Let’s break it down in three parts:
The Good: Our story begins with 5 ETH and a dream. After depositing the ETH into their wallet, this user tried their luck on a decentralized betting site.
There are a few out there, and they have started to gain traction due to their lack of restrictions, immediate payouts and proven fairness through the blockchain.
The result? This wallet was able to turn that 5 Ether into millions of dollars… Something only a meme coin trader could hope for.
But if you think our story ends there, you must be new to gambling crypto.
The Bad: You know that saying leave when you’re up? This wallet doesn’t.
They parlayed all of their winnings into NFTs from the Bored Ape Yacht Club.
Sounds dangerous? It is.
The Ugly: They didn’t stop there. They yolo’d into the emerging NFT lending sector and borrowed against ALL of their apes.
NFT loans work just like traditional loans. You can put up your NFTs as collateral and borrow against them. And you get your NFT back as long as you return the funds.
But our friend took these funds back to the casino. And they lost it all.
MILK & COOKIES 🍪
ARK Invest bought 420K more shares of Coinbase for ~$21M. Cathie Wood continues to double down, making ARK the 2nd largest holder.
Connections have been found between North Korea and the Atomic Wallet hack. Wallets from the hack were tied to the notorious Lazarus group.
Jim Cramer warns investors to get out of crypto. We’re saved?
Robinhood might delist tokens mentioned in the SEC’s latest lawsuit. Throwing a wrench in their plans to build out their crypto unit. Right now they only have 18 tokens listed.
MILKY MEMES 🤣
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ROADER REVIEW OF THE DAY
VITALIK PIC OF THE DAY
— Milk Road Images (@MilkRoadImages)
Jun 8, 2023
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.