Newsletter #195 - Depegs, Insolvencies & Not Enough Thinking

Hey Shitcoiners,

If you didn’t think we were in a bear market, you probably do now. While your bags become so worthless you have no choice but to stay a community member forever, we have some memes and commentary to hopefully make you feel better. It could always be worse right?

This was billed as JPEG Summer in some circles but that wasn’t meant to be. Welcome to DPEG Summer, bitches!

Some of your favourite crypto personalities are playing with your emotions. Are they REKT like you too? It’s hard to know.

Out of 32,000+ crypto Twitter participants, the majority are having fun staying poor. RIP.

It really was a rags to riches back to rags story wasn’t it? Supposedly it went like this: a bat was found in China, we all got fuck you money and then we lost it all.

Stablecoin bulls are bussin’ frfr though.

With a disgustingly bearish market comes the potential collapse of some of the biggest businesses in the industry. Celsius, the crypto lending platform seeks the best yields from DeFi products, but what happens when those projects are exploited or cease to exist? It doesn’t sounds great does it.

CEO of Celsius, Alex Mashinsky was quick to squash FUD surrounding locked accounts on Celsius back on June 12th.

One day later, those rumours were proved to have some substance.

Where there is blood, there are memes.

You might remember that a while back CT sleuths noted the former Head of Institutional Lending at Celsius was once a pornstar. We aren’t saying pornstars can’t make career changes but if anything ever went wrong, Celsius were bound to get memes thrown their way.

In other Celsius staff news, their co-founder and CTO has a really unfortunate name and a very interesting background.

Rumours starting circulating this week of a 3AC insolvency. The pieces were gradually put together. Their positions were pretty public. Many of said they were massively underwater. This wasn’t helped it was noted that Zhu had removed the tickers from his bio.

A couple of days later we began to learn more…

We started to hear from companies that had partnered with 3AC. It wasn’t looking good for what was once the darling or crypto Twitter. The ghosting had begun!

The 3AC situation had ramifications across the industry. Finblox, who were backed by 3AC confirmed a monthly withdrawal limit for users. Say hello to the limitooor!

There is blood in the streets. Those with cash on hand are ready to scoop it all up. A16z are ready to buy your bags for cheap.

But likely not before they’ve witnessed more liquidations. This shit is getting real nasty real quick. When will the pain end?

Kraken were the latest topic of a hit piece from The New York Times. The prominent exchange came under the spotlight for challenging the status quo of how some groups think sizeable technology businesses should operate.

Jesse actually front-ran the article with a tweet thread that is definitely worth a read.

Brian has had a few of these types of articles thrown his way before!

Speaking of Coinbase, they have made some pretty hefty layoffs.

As have BlockFi.

Oh, and Crypto.com too.

MicroStrategy haven’t announced any layoffs but some in the space are talking margin calls.

Michael doesn’t seem to give a shit. He has a plan. Even if the unthinkable happened and BTC got back to the previous bear market low he says they can cover it.

STETH has been a hot topic as of late. Cobie was working on the product in the early days. If you are looking for a breakdown of how it works and the possible outcomes, here you go. This has lots of alpha.

ETH, like the rest of crypto has taken a beating. Will it slap again?

Jim Cramer sure hopes so.

Gainzy however thinks that executable poverty file is already running.

The most well-versed amongst us are getting a haircut in this market. Let us not forget that normies are still falling for crypto scams left and right. At least if crypto is perceived as worthless by the public then these scams might slow down, right? Maybe not.

We aren’t going to lie, we had seen clips of the Winklevii’s band circulating all week but we didn’t have any desire to listen. We assumed we wouldn’t enjoy it. It turns out we do enjoy it, but maybe for the wrong reasons. Should they go back to the day jobs?

Many come to the Shitcoin.com weekly round-up seeking wisdom. We try our best. Kevin from Galois Capital has plenty of that. Here’s a tweet from him.

We don’t know what will happen next but one thing’s for certain, your timeline will continue to look like this.

That's all for this week. Follow Andreas on Twitter and stay up to date with us @Shitcoindotcom too. See you next week!

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Team Shitcoin.com