😵‍💫Coinbase loses $248,000,000..

GM 👨‍👩‍👧‍👦

Seedphrase Daily👋The Steph Curry of Crypto, shooting 3s from the bear market. 🏀

Today’s estimated research time is 5 hours and 22 minutes condensed into a read time of 3 minutes. Stay tuned to where we talk about:

• 😵‍💫Coinbase loses $248,000,000 of stablecoins.

• 🤝Binance is staying as a “Pure Web3 Company” and has no plans to change.

• 🤫The benefits of losing $7,000,000

• 🌴Planting Plays

You know the drill, weekdays for emails and weekends for Podcasts.

and if you missed last week's hottest topics tune into our Podcast and get caught up!

This week we brought on a special guest that so happens to be a Crypto trading expert that's generated millions throughout his career.

We took a deep dive into his strategies, lessons, and most importantly his thoughts on the future of crypto.If any of that interests you the video is linked below ⬇️

😵‍💫Coinbase loses $248,000,000 of stablecoins.

One of the biggest exchanges is supposedly facing liquidity issues after leaked emails about the affiliate program being suspended surfaced.

On July 15th, 50% of stablecoins on Coinbase pro left the platform totalling $248M.

Who will end up dominating the next bull run if they don't survive? We discussed what would happen if an exchange went bankrupt and why it's essential to follow here.

As they are public companies, their balance sheets show they have liquid cash available and strong assets.

Also, many people on Twitter have displayed their love for Coinbase by defending its liquidity issues.🛡

Full article

Although they've grown exponentially in the past two years as one of the Web3 dons, Coinbase must scale back due to the bear market, and red flags should only start if they halt withdrawals. If they leave, who will fill the gap?🚩

🥊Their biggest competitors

Different exchanges do different things.

Binance is one of the leading crypto platforms with over 28M active users worldwide. The same concept as every other exchange; deals with your money, and you can buy/sell different cryptocurrencies blah blah, staking, NFTs, blockchain etc. 🥱

The important part to note is, that in the same amount of time Coinbase was losing money, Binance has seen an increase in stablecoin reserves, only being down 1% of their ATH. (look at the charts below) 🤯

They are slowly increasing reserves, even strengthening their foundation through the bear market. It's evident they are approaching business differently, which will solidify their spot as top G in the space.

🤝Binance is staying as a “Pure Web3 Company” and has no plans to change.

No matter how beneficial it would be for Binance's finances, CEO Changpeng Zhao says he isn't offering users the ability to trade stocks.

During the slump of all Web3 companies, some have focused on adding features that would keep them surviving. In May, FTX started to offer people the ability to trade stocks with accounts funded by stablecoins.

🧐Why not sell out?

CZ believes that it just doesn't align with the company's philosophy.

Quoted "We just think that we're not running a fiscal broker store anytime soon."

Throwing shade?

And states he is strictly focused on building Web3 development tools. "We're not going back, we're moving forward." 🚀

This is bullish for the overall space.

Having one of the leading faces display such a good example, it's only natural that others follow in his footsteps.

He added that he's targeting a few struggling companies for acquisition during this bear market but making the deal a lot easier than a traditional loan structure or bail-out.

CZ is keeping things simple while having its eyes on the prize: the future of Web3. Not giving in to greed only shows his conviction and desire to see this space grow to its fullest potential. 🙌

Full article

🤫The benefits of losing $7,000,000

CryptoPunks is one of the oldest and most scarce NFT collections. Backed by almost all the top influencers, such as Gary Vee, it has solidified its spot as a blue chip.

Punk #4156, which had the rare traits "ape" and blue bandana, was initially bought in December 2021 for 2,500Ξ (roughly $10M~).

A few days ago, the punk was sold for $3.3M. 191Ξ less than what it sold for..

while ETH trades 3x from their ATH. Resulting in a $7M loss once the falling price of ETH is factored in. Seeing that much money leaving would make any grown man cry.😢

😼Is there a happy ending?

On the bright side of potentially losing enough money for a yacht, the sale was likely a scheme to do tax loss harvesting.

📈Tax loss harvesting?

It's when you sell an investment that has dropped below its original purchase point, triggering a capital loss. Those excess funds are then used to purchase a similar investment in hopes that it will increase value over time, which results in a capital gain.

This means the owner could write off the sale as a $7M loss on their taxes and use the money he got selling the punk for other investments to produce a capital gain! While saving the money, he would have spent on taxes. 💰

🌴Planting Plays

Projects we are eyeing this week which you should keep an eye out for!

Nickelodeon NFTs

Connecting back with your childhood and bringing you some of the best nostalgia: Rugrats and Hey Arnold! NFTs are here

If you missed the initial pre-sale, here's the calendar so you don't have FOMO.

Meme of the Day

Disclaimer: None of this is financial advice. This newsletter is strictly educational and is not investment advice or solicitation to buy or sell any assets or to make any financial decisions. Please be careful and do your own research!