Crypto billionaires can't sing

Good morning. Elon Musk talks crypto at Twitter, more details on the 3AC liquidation, and proof that money can't buy everything. All that and more, happy Friday!

Market Update (as of 9:10am ET):

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Top 5:

1. Elon Musk teases crypto integration at his first Twitter all-hands. The billionaire suggested that to make Twitter as useful as possible the integration of more digital payment options, including cryptocurrencies, would be critical. “I think it would make sense to integrate payments into Twitter so that it’s easy to send money back and forth, and if you have currency as well as crypto," Musk said, according to transcripts of the meeting. He also highlighted crypto scams as being a major issue on the platform, which is somewhat ironic as he is currently being sued by one crypto investor who accuses him of illegally inflating the price of Dogecoin.  

2. BlockFi says it liquidated a ‘large client’ amid 3AC’s margin calls. The crypto lending firm confirmed yesterday that they had liquidated a "large client" and acted "decisively" to mitigate risks to the firm and in accordance with their contracts with the counterparty. While BlockFi didn't name any names, reports point to 3AC as being that "large client", confirming rumors of the fund's insolvency. According to BlockFi's CEO, client funds were unaffected by this liquidation and BlockFi was one of the first lenders to take action to protect their clients. According to reports this morning, FTX, Deribit and BitMEX have all also liquidated 3AC.

3. Babel Finance suspends withdrawals, citing 'unusual liquidity pressures'. The Hong Kong-based crypto lender has suspended withdrawals and redemptions according to an announcement posted on the company's website. At the end of 2021, Babel had outstanding loans of $3 billion, however it's not clear at this time if the firm had exposure to 3AC. The suspension of loans follows a similar move from rival firm Finblox who has restricted withdrawals to $1,500 per month. Babel was valued at $2 billion last month during an $80 million Series B funding round.

4. Biggest ‘stETH’ pool almost empty, complicating exit for would-be sellers. The Curve protocol has served as the stETH dumping ground in recent days as institutional crypto investors have looked to offload the token as it's price deviated from the price of ETH. However, the liquidity pool on Curve that let investors exchange stETH for ETH is drying up and becoming imbalanced. The total value locked in the pool is down to $621 million as compared to $4.5 billion in May. Additionally, there are now 5 times more stETH than ETH in the pool making it prohibitively expensive or impossible to swap large quantities of tokens.

5. Have a great weekend! Enjoy the Winklevoss twins butchering Don't Stop Believin' (and many other songs), while crypto markets burn and their company is sued by the CFTC.  

Updates and other stories:
- Alchemy launches $25M developer grant program to fund web3 projects...Read More
- ‘Pharma Bro’ Martin Shkreli launches Uniswap DEX clone Albumswap...Read More
- DeFiance, Avalanche, dydx distance themselves from Three Arrows Capital drama...Read More

Top Sharers of the Crypto Top 5:
1. Donna Y. - Nashville, TN
2. Jake Y. - Greenville, SC
3. Forrest H. - Evansville, IN

External Resources:
1. Cryptopedia from Gemini - if you see a word, acronym, or phrase in this newsletter that you don't understand, there's a good chance you can find an explanation here
2. Crypto Explainer+ - intro level courses on Bitcoin, Ethereum, decentralized finance, NFTs, and more
3. Crypto Jobs! - looking for a new job? Check out this page from Anthony Pompliano with hundreds, if not thousands of listings

Disclaimer: The information contained in this newsletter shall not be understood or construed as financial advice. I am not an attorney, accountant, or financial advisor, nor am I holding myself out to be, and the information provided is not a substitute for financial advice from a professional who is aware of the facts and circumstances of your individual situation.