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GM. This is Milk Road, your personal crypto buddy – we'll hold your hand through the market’s roller coaster ride and scream together.

Here’s what we got today:

MILKBUSTERS: IS A MULTI-BILLION DOLLAR CRYPTO SELL-OFF COMING? 🔮

We’re back again for another edition of Milkbusters, where we debunk the biggest misconceptions in crypto.

Today we’re talking about FTX’s multi-billion dollar crypto portfolio.

You see, over the weekend this image was going viral on social media. It shows FTX’s recovered crypto holdings (worth ~$3.5B) as of earlier this year.

These are assets that the bankrupt exchange would sell in order to make creditors whole.

Along with the image, there were two rumors circulating…

1/ FTX will start selling its tokens this week.

2/ FTX will sell all of its tokens at once.

The rumors sent the market into panic mode and most of the tokens in FTX’s portfolio into the Red Zone. (not the one with Scott Hanson either)

But, are the rumors true? Let’s dive in.

Myth #1: FTX will start liquidating its assets this week

Our Findings: False.

Although FTX created a recovery plan for its creditors, it still doesn’t have court approval.

The plan will be presented to the Delaware Bankruptcy Court on September 13th to get a thumbs up from the judge.

Many are speculating it will get approved, but if there’s one thing we’ve learned over the years it’s….

Courtrooms are as unpredictable as Week 1 of the NFL - you never really know which way it’ll go.

Myth #2: FTX will sell all of its assets at once.

Our Findings: False.

Even if FTX’s recovery plan does get approved, there are a few important things to point out:

In summary - no, FTX isn’t selling billions of dollars worth of crypto this week. This is why we’re giving it a rating of…

Milk-Road-Worry-Meter: 3

Remember kids: say no to drugs, and don’t believe all the FUD.

LIQUID STAKING IS GAINING TRACTION ON BNB

The liquid staking craze is spreading faster than you can say “lactose intolerant“.

Who’s been leading the charge? Stader Labs and their wide range of offerings. Well, one offering just crossed the 50K BNB staked milestone:

BNBx:

But that’s just the start of what Stader Labs has to offer.

They also have $5M+ in TVL across integrated DeFi platforms, timelocks and multi-sigs on their smart contracts and many audits accompanied by bug bounties.

Get the best-in-class BNB staking and DeFi rewards with Stader's BNBx!

CRYPTO’S NEW ACCOUNTING RULE 👀

A BIG move was made last week…

What happened: The Financial Accounting Standards Board (FASB) unanimously voted in favor of companies using “fair value” accounting to report crypto assets.

Why this matters: This is a huge improvement from the former crypto accounting rules.

Previously, companies would be required to report (and keep) impairment losses from crypto on their balance sheets - even after prices went back up.

Now, companies will be allowed to record their crypto assets at a fair value.

Many are speculating that the recent change could convince more companies to add Bitcoin to their treasuries.

The theory is that fewer accounting headaches = more companies attracted to buying Bitcoin.

Only time will tell if this Law of Attraction™ pans out, but it seems to be a step in the right direction for future crypto adoption.

(Btw - CryptoTreasuries is a cool tool to check out which companies currently hold Bitcoin in their treasuries.)

BITE-SIZED COOKIES 🍪

Vitalik Buterin’s Twitter was hacked over the weekend and ~$700K was stolen from users. A malicious link was posted from Vitalik’s account, resulting in users getting drained of their crypto. Turns out Vitalik is human (and hackable) after all.

Leaders of G20 (aka the 20 biggest economies in the world) are pushing for a new international crypto framework. The countries would exchange info on crypto transactions, wallet providers, and unregulated crypto exchanges on a yearly basis.

Friend.Tech gets another surge in activity and users as its total value locked (TVL) reaches ~$20M. The decentralized social media platform is back from the dead. (btw - if you want to dive deeper into Friend.Tech check out our guide here)

The CEO of Thodex (a Turkish crypto exchange) was found guilty of fraud and was sentenced to 11,196 years in prison. I hear it was between 11,196 years in prison or 1 full year of listening to the “Baby Shark” theme song on repeat - he chose prison.

MILKY MEMES 🤣

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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.