🥛Samuel’s secretly funded company 👀
GM. This is the Milk Road, the daily newsletter that gives you the latest crypto updates, spicy takes, and memes all in one email.
It’s like when you go to the vending machine and get the ol’ 5-for-1 special. You know it’s gonna be a great day.
Here's what we got for ya:
Samuel has secretly been funding The Block
Wtf is going on with Grayscale?
Quick Bites
Milky Memes
SAMUEL HAS SECRETLY BEEN FUNDING THE BLOCK
Last night it all clicked….
Samuel Bankman-Fried is the Doctor Octopus of Crypto.
Both are villains. Both look like mad scientists. And both have their manipulative claws everywhere.
Crypto startups.
VC funds.
Ontario's Teachers pension fund.
The latest tentacle grab? The Block. A crypto media company.
Yesterday we found out that Samuel has secretly been funding The Block over the last year.
Here are the 3 things you need to know:
1/ Samuel secretly gave 3 loans for $43m to Mike McCaffrey (the CEO)
$12M in 2021 to buy out The Block
$15M loan to fund day-to-day operations
$16M to buy real estate in the Bahamas
Yup, another f*cking apartment in the Bahamas.
2/ Allegedly, no one else from The Block knew about it besides Mike
Mike confessed to Bobby Moran, The Block's CRO, right before Thanksgiving.
But 99% of the company found out the news with the rest of us yesterday. Here’s how some of them are reacting:
3/ Mike has resigned as CEO and will step down from the board
Effective yesterday, Mike has no day-to-day management or operational responsibilities at The Block.
Bobby Moran has stepped in as the new CEO.
So, in a nutshell… Samuel stole billions from FTX customers. Bribed the CEO of The Block with $43m. Then…
The CEO accepted. Didn’t tell anyone in the company. And bought a $16m house in the Bahamas. Wow, talk about the cajones on these guys.
Another domino down. And unfortunately, it won’t be the last.
Alameda’s leaked investment portfolio revealed investments in other crypto media companies like Semafor and BlockBeats. Tsk tsk tsk.
The Milk Man’s Take: I think this goes without saying but we’ll just get it on record…
I, the Milk Man, have never accepted any bribe from Samuel, Caroline, or any other FTX goblins.
If we’ve learned anything this year, it’s to stay away from:
Algorithmic stablecoins
Founders that “donate” their salaries
“Effective altruism”
And just check out this email we got yesterday…
Not today, Satan.
TODAY'S EDITION IS BROUGHT TO YOU BY MOMENTS OF SPACE
I don’t know about you, but crypto is the craziest roller coaster I’ve ever been on.
There’s a hack, scam, or fraud at every turn. It can all be so tiring. (Trust us, we write about it every day)
But we’ll let you in on our secret to surviving….. Meditation.
Say hello to Moments of Space – a community-powered platform that harnesses the power of tech, co-creation, and meditation to fuel positive change.
The MoS iOS app features short, powerful meditations that can be listened to anytime, anyplace – even while you walk or look at your portfolio losses.
They're also working on a dynamic NFT that'll integrate your in-app actions to incentivize positive habit-building, encourage connection, and reward participation.
Click this link on your iPhone to bag six months of free premium access to the MoS app. (yes, free!)
And for the Android crew head over to their Twitter or jump in their Discord for live meditations, whitepaper discussions, and access to the Android beta waitlist.
WTF IS GOING ON WITH GRAYSCALE?
You’ve probably been seeing the Grayscale FUD recently.
The crypto trust company, not that disease from Game of Thrones.
Wait, so WTF is Grayscale?
It’s the largest Bitcoin fund out there. It manages $10.7b worth of crypto assets
It lets people invest in Bitcoin indirectly. Kinda like how a gold ETF lets people own gold without hiding it under the mattress
Think of it as training wheels for crypto joyriding. You’re investing in Bitcoin but through a traditional financial vehicle, that (in theory) won’t bust your a** as hard.
And it ain’t your local church raffle either. You need $50k to buy into the trust.
So why is Grayscale in the news?
Grayscale’s Bitcoin trust, GBTC, is trading at a 50% discount to Bitcoin. Aka it's 50% cheaper to buy Bitcoin from GBTC than to buy Bitcoin on the open market.
Talk about a StateFarm discount double check.
Sound too good to be true? It is.
You think you're getting a bargain. The market thinks Grayscale is a house of cards. And they may have good reasons.
Its sister company, Genesis, has halted withdrawals on its platform after FTX went kaboom
Its parent company, Digital Currency Group (DCG), is $2b in debt right now
They've been weird about releasing GBTC's proof of reserves
Plus, you have to pay Grayscale a 2% management fee and you can't redeem your GBTC for Bitcoin at the moment.
So, what's gonna happen next?
If Grayscale’s annual fee stays the same and it doesn’t come up with a way for investors to redeem, it's all gonna stay Walt Disney-level frozen.
There might be a solution… converting into an ETF.
Converting GBTC into an ETF will let Grayscale investors get instant redemptions for their Bitcoin.
But that's a whole other can of worms – you gotta meet with the SEC, talk to politicians, you know all that fun regulatory stuff.
So for the time being, it’s lookin a bit…gray for the fund.
QUICK BITES
Celebrities are being sued for promoting Bored Ape Yacht Club NFTs. Justin Bieber, Madonna, Steph Curry, and more have all been named in the class action lawsuit filed.
Crypto.com released its proof of reserves. According to the audit, customer balances for top cryptocurrencies like BTC, ETH, and USDC are over 100% backed. Phew
MILKY MEMES
That's it for today. Stay thirsty & see ya on Monday! If you want more, be sure to follow our Twitter (@MilkRoadDaily)
A ROADERS REVIEW
VITALIK PIC OF THE DAY
https://t.co/qtYVnOUk1p
— The Milk Road (@MilkRoadDaily)
Dec 10, 2022
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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.
