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šŸ„›Did Binance commingle funds? šŸ˜Æ

PLUS: Come work in crypto! šŸ‘”

GM. This is Milk Road. Weā€™re like a buoy in the crypto sea. We keep you afloat through the waves of the market.

Itā€™s Wednesday. Letā€™s get after it:

  • Did Binance commingle funds? šŸ˜Æ

  • One chartā€™s going up šŸ‘€

  • Web3 Wednesday šŸ“

  • Ledger talks subpoenas šŸŖ

Prices as of 8 am EDT

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BINANCE REPORTEDLY COMMINGLED FUNDS šŸ˜Æ

Cryptoā€™s a lot like high school - you KNOW dramaā€™s always gonna drop.

The latest drama? According to a recent Reuters report, Binance allegedly mixed customersā€™ funds with company revenue.  

Thatā€™s right, Binance got caught ā€œcomminglingā€ in the bathroom.

Hereā€™s what Reuters is alleging:

  • Binance commingled usersā€™ money with corporate accounts held at Silvergate Bank (now-bankrupt.)

  • Binance commingled funds daily in 2020 & 2021.

  • The total sums were in the billions. $20M from a corporate account was mixed with $15M in an account that received peopleā€™s money in just one day.

  • The good news: no funds were lost or stolen. Phew

So what did Binance say? User funds & corporate money are kept on ā€œseparate ledgers.ā€ Binance pulled an ā€œI didnā€™t do anything wrong, Teachā€

And those accounts werenā€™t intaking peopleā€™s money - they were used to process user purchases (like BUSD, Binanceā€™s stablecoin.)

Binanceā€™s communication chief posted a long-ass Twitter post calling the whole report a conspiracy.

Milk Road Take: Reuters cited three anonymous sources in their findings. So who knows.

But where thereā€™s smoke, thereā€™s fire. And the last time we heard about the commingling of funds was with FTX.

We all know how that turned outā€¦

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STOCKS & BONDS MEET BLOCKCHAIN šŸ‘€

Ladies and gents, a new crypto record has been broken. (*queue DJ Khaledā€™s ā€œAnotha oneā€*)

This time, the market cap of tokenized stocks & bonds just broke $225M.

While most charts are down, this one is moving up that way ā†—.

Dune Analytics

Dune Analytics

So, wtf is a securities token? Itā€™s just like stocks, ETFs, T-Bills, etc - except on-chain.

We call them real-world assets: they allow investors to get exposure to tangible assets like gold and real estate. But instead of taking on the physical asset, you just own a tokenized receipt.

Why tokenize stocks and bonds?

  • Access: More people are able to participate in the market, improving liquidity

  • Efficiency: The blockchain provides faster settlement times and lower costs

  • Transparency: All data associated with these assets is easier to track, more secure, and canā€™t be changed

So what? Two things:

1/ People are rotating out of stablecoins and theyā€™re rolling into tokenized assets. It makes sense when you look at where the rates are.

Theyā€™ve been driven up on the back of the Fedā€™s aggressive fight with inflation, with the US 1-yr Treasury paying over 5%.

And investing in tokenized assets allows you to earn yield directly, instead of Circle (USDC) or Tether (USDT) taking a cut of the interest.

2/ In 2022, the global bond market totaled $133T. And the market cap of the U.S. stock market alone was $40T.

Meanwhile, the total amount of money currently locked on-chain is only sitting at ~$50B at this time. Thatā€™s a lot of room to grow šŸ‘€

Check out the full Milk Road breakdown of tokenized securities here!

WEB3 WEDNESDAY šŸ“

Happy Hump Day, Roadies.

And welcome back to another Web3 Wednesday, when we find all the cool Web3 job openings out there for you.

Check out this weekā€™s:

P.S. - Are you trying to hire in Web3? Learn how to get your open jobs in front of 250K+ crypto enthusiasts here.

MILK & COOKIES šŸŖ

Bitcoin Conference attendance fell 50% this year. There were more people at your local spelling beeā€¦

MILKY MEMES šŸ¤£

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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.

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