Another Bank bites the dust...

GM,GM. Welcome to the second edition of Bean Boy. With more bank troubles, lawsuits against one of the largest exchanges, and mass liquidations, we’re here to give you everything you need to know about what’s happening Crypto, in 5 minutes or less. Let’s see what’s in the pod for today.

How we looking today?

Feels like the start of another Black Swan event … Are we really doomed this time?

SILICON VALLEY BANK IN TROUBLE. WHO’S NEXT IN LINE?

Another one bites the dust, so it seems. Silicon Valley Bank one of the largest banks operating in the United States witnessed it’s stock price drop by 60% yesterday. The bank has acted to move and sell assets raising capital to fund increased withdrawals which is most likely due to the recent events of Silvergate Capital going bust the day before. Two days ago a mid-quarter update showed that $21 billion worth of securities was sold at a $1.8 billion loss.

If I found out my bank was such a paper hander I would be withdrawing my funds as well 😂. Luckily I’m not a 8-9 figure VC chad and don’t have to worry about that kind of stuff, did I mention I bought a $200 ledger to store $5 of my ETH?

In all seriousness, things are looking a bit scary, first it’s Silvergate now Silicon Valley. If any more banks, companies or entities starting with ‘S’ are facing hardships -I’m talking about you SBF- you might start experiencing déjà vu with a potential further dump in all markets like last year.

KUCOIN vs NEW YORK ATTORNERY GENERAL

On Thursday, the New York Attorney General Letitia James filed a lawsuit against a top 4 crypto exchange KuCoin allegedly violating securities and commodities laws within New York. The suit primarily states that ETH, LUNA and UST are securities as it “is a speculative asset that relies on the efforts of third-party developers in order to provide profit to the holders,” according to the petition. In addition, the NYAG also called out “KuCoin Earn” announcing that its lending and staking product is selling unregistered securities. After this suit was publicized to the public ETH dropped by 8% within 30minutes, my $5 ETH bag 😭

 
On the funnier side, apparently KuCoin ghosted the subpoenas filed by the NYAG’s office served via email and in person, LMAO. Definitely a strong chad move from the exchange but not exactly sure if it was the wisest one 🤔.

HUOBI TOKEN LIQUIDATING DEGENS IN AN INSTANT

Yesterday Huobi’s native token Huobi Token (HT) experienced a dump by 90% within 15 minutes falling from $4.81 to a low of $0.31. Surprisingly, the coin reclaimed the price range of $3-4 within a few minutes leaving a big fat red wick behind. According to AINVEST WIRE, the insane price fluctuations resulted in degens like you and I getting liquidated for approximately $2.72 million, pocket change for us…. right? Anyways, Justin Sun an advisor for Huobi Global announced that the PA was from a few users smashing that market sell button and forcing a leveraged liquidation cascade. He also mentioned an additional $100 million will be added to the HT/USDT pair to increase liquidity and make sure something like this doesn’t happen again, emphasizing the #SAFU vibe.

One thing I learned over the past few years is to actually run away with all your bags if founders and developers mention the word safe, looking at you Do Kwon. Hopefully this isn’t the same scenario but I would avoid CEX’s and put majority of my coins in self custody such as a Ledger or a Trezor or even a DEFI wallet like Metamask or Coinbase Wallet. Here is a good article in regards to this. Your coins aren’t your coins if you don’t hold the key anon.

PS. Those leveraged traders that got liquidated aren’t getting refunded or compensated…

PEE-PEA OF THE DAY

PEAS IN THE POD

• Over $325,000,000 worth of positions were wiped in the last 24 hours alone. Seems healthy…

• Crypto exchange Bitget became the official sponsor of Juventus women’s soccer (football for you Europeans) team today.

• Starbucks joined the NFT hype…and sold out 2,000 NFT’s within 20 minutes. At $100 per NFT, I’d rather my months worth of morning coffee’s…

HOW YOU BEAN - A READER’S CONFESSION

Ever since GCR tweeted ‘the bottom was in’ I kept longing alts all the way… Now I’m underwater by 70% and about to get liquidated soon, do I keep adding?

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.