SEC To Coinbase: Nothing But Bitcoin 😤

GM. This is Degen Scoop. It’s Tuesday and the first day of August, here’s the scoop:

• SEC To Coinbase: Nothing But Bitcoin 😤

• BALD Meme Coin Rugs and Returns 🤪

• Tether: $850M Q2 Profit 🤑

• Whale Moves 🐋

• Threads You CAN’T Miss 🧵

The SEC Instructed Coinbase to Cease Trading of All Cryptocurrencies Outside of Bitcoin

It has come to light that prior to suing Coinbase, the SEC had requested that the company cease trading of all coins that weren’t Bitcoin. This was due to the belief of the SEC that only Bitcoin was proven to not be a security while the others were securities. This interpretation of the law has no precedent and was not explicitly stated in the ‘regulation’ the SEC has provided.

In the lawsuit against Coinbase, the SEC accused them of operating illegally since they have not registered as an exchange. According to Armstrong, capitulating would have set terrible precedent for the industry to simply bend the knee. The rationale was that it would be best to “go to court and find out what the court says.”

The Story of $BALD

For those that have not kept up with the launch of Coinbase’s L2 Base, there have been a plethora of memecoins released with meteoric gains. The largest being that of $BALD which we alluded to yesterday morning. One user turned a small bet into $1M+, an absolutely unreal story that explains why degens do what they do.

Don’t be that guy. Do take gains on the way up where you can to improve things IRL. What happened is that the deployer removed liquidity and briefly rugged the coin.

Then the conspiracy theories began to go viral on Twitter. We’re not saying we have the answer, but crypto remains the most entertaining industry in the world.

I’ll leave the rest to Ansem.

Tether Breaks $850M in Profits For Q2

Tether is an interesting case in that we’re still not sure if the coin is fully backed but it has always honored every redemption. There were times this went into the billions over short periods of time. In its report, Tether reported exposure of over $72B to US treasuries. Considering how high interest rates are, it’s no wonder that Tether is a money printer for those that hold equity. Surprisingly, this capital won’t be used to expand but rather token stability.

According to Tether’s report, it is extremely liquid with 85% of its composition being held between cash and cash equivalents. Say what you will about Tether and its trustworthiness, but it continues to be part of the backbone of crypto being the most liquid stablecoin in the industry. Its success will likely attract competitors in time.

Notable NFT Sales in the Last 24 Hours / Over the Weekend:

Notable Threads You May Have Missed:

Meme of the Day

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Conclusion

Touch grass, hit the gym, and don’t forget about what’s really important outside of magical internet coins.

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DISCLAIMER: This newsletter does not constitute financial advice. This is strictly educational and should not be used to make any financial decisions. Be responsible and do proper due diligence before aping.