Qrafty heard a story about a $131,000 loss, SEC won't appeal Grayscale and Genesis halts withdrawals!

***Qrafty smiling the biggest smile*** Aloha, crypto curious! I am Qrafty - the crypto lovin’ honey badger 🦡 !

Welcome to Coinqraft – the daily crypto newsletter for busy but curious people who don’t have time for the crypto drama!🌟

🦡   Qrafty has fresh bits from the crypto jungle, so let’s dive in: 📰 🌟

1. How To Exchange $131,000 For $0

2. The SEC Won’t Appeal Grayscale Decision

3. Dogecoin Co-Founder Is Angry At Community

Bonus: Genesis Halts Withdrawals. HA!

How To Exchange 131,000 USDR For 0 USD

In today’s magical and exciting world of crypto, Qrafty brings you an absolutely delicious case of how to transform your magical internet coins worth $131,000 into exactly $0.

If that wasn’t enough, an MEV bot took the proverbial cherry from the top of the cake and got around $107,000 from that trade. Now please look at the gif below and keep saying “weeee” in your head. After you’re done, keep reading 👇️ 

Low emotional control and cryptocurrency trading are like trying to tame a roller coaster with a spaghetti noodle. You can try, but you will end up getting badly hurt 99% of the time.

In the middle of all the crypto chaos, this swap happened on the BNB Chain, on the decentralized exchange OpenOcean.

It all unfolded during a period of wild market acrobatics when USDR decided it needed some "me time" away from its 1$ pegged value, nosediving by almost 50% thanks to a "tiny" liquidity hiccup.

To keep things short and still make sense, this happened because they used a mix of liquid and illiquid assets in their treasury to back up the stablecoin. The illiquid assets were actually real estate, which isn’t a bad idea at all. It’s just that you can give real estate on a blockchain to users knocking on your door asking to redeem USDR. So they gave them the liquid tokens that were available.

But the amount redeemed was so big that the treasury ran out of liquid assets and was left only with illiquid real estate. Which looks good on paper, but it’s completely useless in the actual crypto world if it’s not tokenized.

This led USDR to depeg, meaning that its price went from $1 to around $0,50. Similar situations have happened with other stablecoins in the past and it’s usually a matter of time until things get back on track, if the coin doesn’t disappear entirely and the project dies (Terra/Luna anyone?).

Unfortunately, someone panicked and sold the equivalent of $131,000 and received exactly $0. If that wasn’t enough, in a move that's as slick as a cat burglar with a top hat, a Maximal Extractable Value (MEV) bot swooped in, saw the chaos, and decided it was the perfect moment to make a grand entrance, cashing in with a mind-blowing $107,002 in arbitrage moolah.

Again, emotions and trading are two things you want to keep separate.

🙃 Qrafty hopes that today’s main story brought brave badgery value to you! Now it’s time for a break, you deserve a bit of fun! 😇 👇️

Dogecoin Co-Founder Slams The DOGE Community

It’s pretty weird to see Billy Markus, the co-founder of the original meme coin, dunking on the community like that. Qrafty isn’t really sure what Billy boy is expecting from them. Cure cancer? Send a Shiba Inu to the Moon? Make politicians stop lying?

It’s a damn meme coin, the whole purpose of it is to keep things light, make fun of themselves and keep the stiffness to minimum. At the same time, another secondary purpose is to help in any way they can from the proceeds of the increase in price.

If things go boom and price goes up, that’s a huge bonus and yaaay for everyone. If price doesn’t go boom it’s the sheets, giggles and good deeds done by that community in the world.

It’s important to mention though that development on this kind of project doesn’t come easy and it’s a thankless job. People expect things to run smoothly but don’t really want to pay the price of the work involved. Worth mentioning that Billy has a point regarding premine/presale. Bear markets take their toll on everyone.

SEC Won’t Appeal Grayscale

We already knew Grayscale won the case against the SEC, that wasn’t a big deal. The case was regarding the refusal by the government body to allow Grayscale to convert their Bitcoin trust into a Bitcoin ETF. That in itself isn’t a wow factor, since the SEC took some other losses in court. The thing was that SEC had the option to appeal that decision by today.

Of course, the market had an erection at hearing the news and Bitcoin blasted past $27,000 in a couple of green candles.

Of course, a bunch of analysts declared that the chances of Bitcoin ETF approval from the SEC are… wait for it… 90%! And this information didn’t help you at all, did it? Sounds good when you read it, but when you start thinking about it you realize that analysts say this kind of crap to look smart while they’re actually covering their asses regardless of the outcome. If it’s approved: “hey, we called it with 90%“. If it’s not: “hey, we called it with 10%“.

Remember: 99% of crypto analysts are a joke who employ this kinds of tricks to make you think they know the future. They know nothing, just like Jon SNow.

But getting back to what the SEC can do moving forward. Just because they lost the case doesn’t automatically mean that the Bitcoin ETF will be approved. It means that the SEC has two options:

• Either come up with new reasons to deny the conversion of Grayscale’s fund to ETF.

• Approve the ETF.

IF the ETF is approved, please keep in mind that this event might be already priced in. So, again, think with your own head and decide for yourself.

G20 Adopts IMF-FSB Crypto Regulatory Roadmap

The IMF has come up with a three-step approach to assess the risks of crypto assets. First, they use a decision tree to evaluate the potential impact of crypto assets on the macro-economy. Then, they look at indicators that are comparable to those used to monitor the traditional financial sector. Finally, they cover the global macro-financial risks that could affect countries' systemic risk assessment.

The decision basically says: we won’t ban crypto, we’ll regulate it and integrate it into our systems. This way, it’s easier for us to control the whole movement and tame Bitcoin, instead of fighting it and ban it, which would just create even more desire.

Qrafty keeps wondering if the whole movement was a psyop from the beginning with the sole purpose of implementing blockchain to remove cash and lock people into a dystopian system of financial surveillance.

Qrafty, financial surveillance is happening today. What’s your problem?

That’s right, KYC and AML regulations are in place for banks and financial institutions. Removing cash is Qrafty’s problem. Cash is freedom to the bearer. It gives you choice. It allows you to be a part of the financial system without being tracked extremely close by the multi headed hydra.

Why, Qrafty? What have you got to hide?

That’s always the question, isn’t it? Whether I have something to hide or not doesn’t give a non governmental institution like IMF the right to infringe upon my financial freedom. That’s the main idea. It’s not about me, it’s about the system itself. Organizations like IMF, World Bank, WHO, WEF, etc. aren’t subjected to the laws of your country or mine. So why should they implement frameworks or make decisions for us?

Hey hey 🙃 Qrafty hopes you are enjoying the experience here and would like to regularly get Qrafty’s letters!

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Tomorrow is like a mysterious cryptocurrency – we eagerly invest our thoughts in it, hoping for a high return on expectations, but we never quite predict when it will moon or simply HODL its enigmatic secrets.

Qrafty’s Thought Of The Day

Other stories

French regulator: DeFi is ‘disintermediated,’ not ‘decentralized’

The ACPR (the French regulatory body) believes that the term ‘disintermediated’ finance is better suited to represent the structure of DeFi than that of ‘decentralized’ finance. Can’t argue with them on this one.

Genesis Halts Withdrawals

Genesis, the crypto broker, has revealed its decision to suspend customer withdrawals, introducing further ambiguity to the already chaotic realm of digital currencies. This comes after the court's approval of a $175 million settlement between Genesis and the insolvent cryptocurrency exchange FTX.

Tether Appoints CTO Paolo Ardoino as CEO

In the best joke of the day and a twist that could rival a telenovela, Tether, the stablecoin issuer, has anointed Paolo Ardoino as its shiny new CEO, while the former CEO, Jean-Louis van der Velde, is apparently getting cozy in an "advisory" armchair. Oh, and just for fun, van der Velde will still be the grand poobah over at Bitfinex, while Ardoino gets to juggle the role of CTO at both Bitfinex and Holepunch.

Market Whispers

Bitcoin doesn't want to give up, yet... Today tested two times the October open, with no luck so far. Maybe the third time is the lucky one.

If it can't find support above it tonight, we'll have to wait until Sunday night for another push higher, as the weekends are really slow in volumes lately. In the meantime you already know Qrafty's Friday advice: Go out and have some fun!

Bitcoin will still be here and you will not miss much, Qrafty promises you! In the meantime, US oil production hit record high. Will we see the price of oil start going lower?

Qrafty ends channeling his inner trader.

Today is INTERNATIONAL FAILURE DAY!

That’s all from Qrafty 🦡 for today! Qrafty thanks you and wishes you to live each moment as if you are listening to the music you love most!

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