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  • šŸ„›Binance.US just dropped a bomb...

šŸ„›Binance.US just dropped a bomb...

PLUS: $77M was raised by Web3 companies this week šŸ’°

GM, this is Milk Road. We're like an open window - giving you a breath of fresh air to start your morning.

Hereā€™s what we got for you today:

  • Binance(US) is suspending USD deposits šŸ‘€

  • Arbitrum ran outta gas ā›½

  • Funding Friday šŸ’°

  • Optimism completes a successful upgrade šŸŖ

Prices as of 8AM ET

BINANCE (US) IS SUSPENDING USD DEPOSITS šŸ‘€

Binance.US just dropped a bombā€¦ itā€™s moving to a crypto-only exchange.

No USD deposits. No USD trading pairs. No USD, at all. Nothing. Zip. Nada.

Why? Binance.USā€™ banking partners are suspending USD channels as early as next week.

So, the crypto exchange wonā€™t be able to complete any fiat deposits or withdrawals once that happens.

Hereā€™s everything you need to know:

  • Starting today, all USD deposits and recurring buy orders are suspended

  • Binance.US will transition to a crypto-only exchange

  • Starting next week, Binance.US will delist all USD trading pairs (i.e BTC-USD, etc)

  • All customers have been encouraged to withdraw their USD from the platform by June 13, 2023

  • Any USD balances remaining on the platform after June 15 can be converted to stablecoins

It looks like this could be the beginning of the end for Binance.US. Weā€™re pouring one out for another fallen homieā€¦

P.S - If you still have any USD funds on Binance.US., we highly recommend getting it out while you can.

ARBITRUM GOES DOWN ā›½

Arbitrum is one of the most popular Layer 2s (L2s) out there. It provides cheaper fees, faster transactions, and recently airdropped a token.

Hereā€™s a quick analogy for L2s: Ethereum is like the highway with tolls.

Everything is great, until rush hour. Traffic moves slower. Patience runs lower.

Arbitrum is like an EZ-Pass. It lets you skip the line and processes the tolls later.

But Arbtrium had a major roadblock earlier this week and stopped processing transactions for a few hours.

What happened? A software bug.

  • Arbitrum bundles transactions off of the blockchain and then sends them back to Ethereum to be completed at a later time

  • The piece of software that bundles these transactions is called a ā€œsequencerā€

  • The sequencer needs funds to pay for the transaction fees. There is code that ā€œauto-refillsā€ the wallet when thereā€™s a low balance

  • There was a bug and the sequencer ran out of money until the Arbitrum team (Offchain Labs) fixed the bug

Itā€™s kinda like when you forget to pay your electricity bill and the lights turn off in the middle of your shower.

The result: The Arbitrum network was backed up for hours.

So what? During the outage, $2B+ in assets were stuck on Arbitrum. And itā€™s the 4th time this has happened.

It also highlights how centralized a lot of these projects still are.

If thereā€™s still one central entity (Offchain Labs) controlling everything, is it really decentralized?

Luckily, the Arbitrum team says that ā€œeventually, sequencing affordances could be given to a distributed committee of sequencersā€.

Weā€™ll have to wait and seeā€¦

FUNDING FRIDAY šŸ’°

Itā€™s Funding Friday! This week, ~$77M was raised by crypto companies.

Hereā€™s who got the money:

Lens Protocol got $15M to pioneer the future of Web3 social media. They call it the people-powered social layer.

Taiko Labs got $22M for their layer 2 scaling solution. It utilizes zero-knowledge technology and is compatible with Ethereum dApps.

Meanwhile Insurance raised $19M for their Bitcoin-based life insurance offering. Bringing life insurance policies to the blockchain.

Argus got $10M to build their Web3 gaming studio. Game details still yet to be releasedā€¦

Demox Labs raised $4.5M for their privacy-focused crypto wallet. They are building on Aleoā€™s blockchain.

Check out the full database of companies that have raised money this week, right here.

MILK & COOKIES šŸŖ

Optimism successfully completed its ā€œBedrockā€ hard fork. 1/ Thatā€™s what she said. 2/ The upgrade includes cheaper fees and ETH is now a native token on the Layer 2.

Kraken launched its NFT marketplace on the Polygon network. The marketplace will support over 250 NFTs across multiple blockchains - including Ethereum, Solana, and Polygon.

Animoca Brands announced it will shift its focus to crypto opportunities outside of the U.S. Regulators are scaring everyone away. And we ainā€™t talkinā€™ bout Nate Dogg and Warren G.

A U.S. judge has dismissed the case against PoolTogether. The defi platform was being sued over $12 in damages. Finally, good legal news for crypto.

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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