🤔The collapse of another crypto exchange..

June 23, 2022

What up, family, 👨‍👩‍👧‍👦

Seedphrase Daily here 👋. We’re the ones you go to when you're sad about the good  old wallet tanking 80%. 

Today’s estimated research time is 3 hours and 59 minutes condensed into a read time of  2 minutes and 50 seconds. Stay tuned to where we talk about: 

  • 🤔 Will Voyager be the next Luna? 

  • 👨‍🏫 Cold Wallets vs. Hot Wallets 

  • 🎉 Doodles NFT project makes Pharrell Williams as Chief Brand Officer 

🤔 Will Voyager be the next Luna? 

Voyager is a broker that helps you buy crypto by comparing the prices across various exchanges and then fulfills your order using the best price. 

We're in desperate times, and Voyager is struggling to stay afloat after lending $600M to 3AC. You would know that 3AC isn't doing well if you read our emails. Check it out here; we discuss how private capital leaving might affect you. 

On June 17, they secured a $200M loan and 15,000 BTC with industry leaders Almeda Research to keep things running while they wait for 3AC to re-pay them. 

The repayment requested involves $25 million to be paid on June 24, 2022, and payment of the total balance on June 27, 2022. If 3AC fails to pay either of the amounts specified, it will be considered an event of default.

8 Blocks Capital' Danny Yuan called out to platforms that own 3AC funds to freeze their accounts. Because of rumors of the company's insolvency, Yuan noted that freezing 3AC funds may help recover after future legal proceedings.

Voyager has yet to halt all withdrawals but has set a $10,000 limit for all users. 

Since the news came out that Voyager gave a loan to 3AC, the chart is currently down over 50%!

Guys… Now is not the time to be gambling. These big corporations don't always have your best interest. Companies are moving exactly like Luna before the crash, freezing withdrawals and making everyone wonder what will happen. Get a ledger or transfer your money to a cold wallet, don't be naive and take precautions.

👨‍🏫Cold Wallets vs. Hot Wallets

This is the difference between the two;

Hot wallets (HW) are software-based and can be installed on your phone or computer. Examples of this include Trust Wallet and Coinbase Wallet. They act as a middleman between you and your cryptocurrency.

On the other hand, cold Wallets (CW) are hardware-based, meaning they are physical devices or paper wallets. Examples include Ledger and COLDCARD. However, a software-based wallet can also be used as a cold wallet if installed on a standalone machine not connected to the network.

They serve the same function but have many fundamental differences. 

1. Vulnerability 

Because HW are connected to the internet, they are inherently susceptible to malware and hackers. They also integrate with computers, adding complexity and attack vectors that cybercriminals can exploit. Your money is also at risk with a hot wallet as the broker can suffer from bankruptcy or debt like we've seen with Voyager. This puts all the customers' money because their money isn't even theirs.

In contrast, because CW operate offline, no one can take the money inside unless they go to your house and rob you, but that's too much work for many hackers and crypto people. 

2. Convenience 

If you trade or spend crypto often HW provides a convenient and user-friendly interface. Meanwhile, CW have a longer process to send money because they operate offline. 

3. Long-term and Short-Term 

CW are used for more long-term assets. Think of it as the shoe box you keep in your closet with all the money you saved and don't touch. HW are great if you're making trades daily but lack the security of long-term holding because we never know where these companies might be in 10 years. 

If you prioritize safety over convenience, cold wallets are the way to go!

🎉Doodles NFT project makes Pharrell Williams as Chief Brand Officer

Here's some uplifting news 😅

What people are calling the Apple of NFTs, Doodles are making some big moves. They just announced the onboarding of Pharrell Williams as their Chief Brand Officer! 

They also announced an official album for the Doodles collection named Doodles Records: Volume 1. The album will be in partnership with Columbia Records, produced by Pharrell and set to feature many recording artists yet to be named. Lil baby on Pharrell beats?? We're in for it! 🎹

The collaboration spiked the Doodles floor price to increase from 11.2Ξ to 15.2Ξ! 

As of June 22, 2022, the collection has a volume of 150 ETH sales compared to an average of 10 sales per day. The volume is currently up 15x after the announcement, with Pharrell Williams as the brand officer.

This is huge news, and Doodles are bridging their collection with pop culture! Are you excited about the album?

NewSeeds ;

That’s a wrap! How many of these companies do you think we’ll see going bankrupt in the next few months? Please be careful!

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See you tomorrow for our last email of the week! ✌️ 💎

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The memes hurt sometimes

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! 

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