🥛 Binance.US is in trouble...👀
- Writer Milk Man
- April 10, 2023
- •4 Min Read
GM. This is Milk Road, your crypto sherpa. We'll guide you through the wild and unpredictable mountains of the crypto market and make sure you don't get lost in the fog of FOMO.
Here's what we're serving up today:
- Trouble for Binance.US 👀
- DOJ seizes another $100M+ in crypto 💰
- Crypto, Snoop Dogg, and Wrestlemania 🔥
- LooksRare launches V2 of its NFT Marketplace 🚀
Today's edition is brought to you by Accointing - the platform that gets you a fully compliant crypto tax report in 5 simple steps.
TROUBLE FOR BINANCE.US 👀
It’s been a tough time for Binance recently. Over the last few weeks, the crypto exchange:
- Got sued by the CFTC for allegedly offering unregistered crypto products and “willfully evading” U.S. laws
- Lost its partnership with Paxos and the BUSD stablecoin they partnered on is being shut down
Well, now the Wall Street Journal is reporting that Binance’s U.S. crypto exchange (Binance.US) is struggling to find a new banking partner to handle customer deposits.
It was using Silvergate and Signature Bank until both banks collapsed last month. Since then, it’s been trying to find new partners.
According to the WSJ report, Binance.US tried teaming up with Cross River Bank and Customers Bancorp Inc but was rejected both times.
As a result, some USD deposit services like Apple Pay and Google Pay will be temporarily unavailable for users.
When it rains, it pours…
Why this matters: Binance.US is one of the top exchanges in the country.
In fact, it tripled its U.S. market share from 8% → 24% in Q1 this year.
Pretty crazy growth… but none of it matters if Binance.US can’t find banking partners to handle customer deposits and serve as fiat on-ramps/off-ramps.
Right now, the crypto exchange is storing its customers' funds with a financial tech firm called Prime Trust. But this will only slow down the movement of funds. It needs an actual bank.
It’s also interesting to note that Binance.US wasn’t the only crypto firm affected by the Signature & Silvergate banking problems, but it’s one of the last ones to find a solution…
Coinbase has Cross River Bank. Kraken is starting its own bank. And most other crypto companies have found other banking partners.
Looks like Binance.US is that kid that gets picked last in dodgeball.
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DOJ SEIZES ANOTHER $100M+ IN CRYPTO💰
The U.S. government is one of the largest crypto holders in the world. AKA Uncle Sam is a crypto whale.
But here’s the thing: the U.S. gov’t doesn’t buy its crypto, it confiscates it.
Well, last week the Department of Justice announced that it seized another ~$112M in crypto. The funds were linked to a popular crypto scam called pig butchering.
Wtf is “pig butchering”? It works like this…
- Scammer reaches out to victims via direct message on social media or dating apps. It goes down in the DMs…
- Scammer uses elaborate storylines to “fatten up” victims into believing they are in a romantic or close personal relationship.
- Once there’s enough trust, the scammer will bring crypto into the mix. They’ll create fake websites and mobile apps to display portfolios with large returns.
- The scammer will convince the victims to invest. Once the money is deposited into the fake app, it’s as good as gone.
Right now, crypto frauds like pig butchering are booming. Crypto fraud is up 183% and reached a total of ~$2.6B in losses last year.
The lesson: Be careful who you meet online and NEVER give your money away without proper due diligence.
That super funny, smart, and hot person you met online might look like this in real life...
CRYPTO, SNOOP DOGG, AND WRESTLEMANIA🔥
I loved two things growing up: Snoop Dogg and WWF wrestling.
While my friends were reciting pickup lines to tell girls, I was reciting catchphrases from my favorite wrestlers. #builtdifferent
Well, last week we got the best of both worlds - Snoop Dogg made an appearance at Wrestlemania. And crypto made a small appearance too…
Snoop Dogg came out repping a custom-made Ledger hardware wallet as his chain - it had "Death Row Records" spelled out in gold & black diamonds.
I'm not sure wearing your hardware wallet with all your crypto and NFTs is the best idea but f*ck it, this is Snoop D-O-double G we're talking about. He said it best back in '94...
🎵 Got my mind on my money, and my money on my
MILK & COOKIES 🍪
LooksRare launches V2 of its NFT marketplace. Some new features include: gas-efficient contracts that save users 30% on gas fees, bulk buying/selling, and trading fees will drop from 2% → 0.5%. The NFT Marketplace War is heating up quickly…
dYdX says it's leaving the Canadian market due to increased regulatory restrictions. The decentralized exchange announced that on April 14 all existing Canadian users will move to a “close-only mode” where they can only withdraw funds.
Facebook’s metaverse developers are making up to $1M per year. According to a Washington Post article, developers capable of building out VR-powered games & apps can earn total compensation from $600k → $1M per year at FB. (And yes, we still call it FB.)
An unreleased version of David Bowie’s hit “Let’s Dance” is dropping as an NFT. 3,003 NFTs will be released on April 14 and each holder gets exclusive access to a version of Let's Dance that has never been heard before.
MILKY MEMES 🤣
That's a wrap for today. Meet us on Twitter to talk all about it. It’s kinda like a family BBQ but better - no screaming kids, awkward photos, or drunk uncles telling weird stories (@MilkRoadDaily)
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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.
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