Authorities put pressure on Binance and its CEO Changpeng Zhao (CZ)

What important things are happening in the crypto market; and where can you make money?

How's it going, friends? Hopefully, everything is going according to plan and the bull market is coming soon. The buidlbee team is back with you. And in today's letter, you will find out:

  • The continuing story of the Commodity Futures Trading Commission (CFTC) lawsuit against Binance and its CEO Changpeng Zhao (CZ).

  • Potential earning opportunities: Arbitrum token, MASK, and DOGE.

  • Opinion on manipulations by market-makers.

  • And an Ethereum tokens raffle!

But before, let’s jump to a quick review of the latest news:

  • Developers have temporarily suspended the THORChain network due to vulnerabilities discovered that potentially threaten user safety.

  • The Polygon zkEVM Mainnet Beta goes live, but shortly after that, contract verification broke.

  • Voyager Digital's bankruptcy plan is on halt.

  • Do Kwon, immediately after his arrest, contracted the coronavirus, and is now being held in standard medical quarantine in Montenegro.

  • Of the 19.3 million BTC mined, about 6 million are irretrievably lost. This was stated by Cane Island Alternative Advisors analyst Timothy Peterson. This means that there are only 13.3 million BTC left and only 1.7 million BTC left to be mined over 100 years.

👊 Regulators attack Binance, market reacts calmly

Regulator attack as routine

The Commodity Futures Trading Commission (CFTC) filed a lawsuit against Binance and its CEO Changpeng Zhao (CZ). The CFTC accuses Binance and its founder of illegal derivatives trading in the United States. The CFTC also alleges that Binance traded on its platform with 300 accounts directly or indirectly owned by CZ (insider trading).

The cryptocurrency market reacted with a mild 2% drop — Bitcoin fell to $26,800, Ethereum rolled back to $1,786. Given the importance of the news and a strong FUD, we are seeing a mild version of the correction, which can be assessed as a positive.

In response to what's going on, CZ denied the accusations against itself, and posted the number 4, referring to an old tweet with plans for 2023, among which the number 4 goal is to ignore FUD, fake news and attacks.

Justin Sun, founder of Tron, also supported his colleague by posting the “4” on his Twitter. Justin Sun himself was attacked by U.S. regulators last week, as if passing the baton to his colleague.

Banking crisis continues

Amid attacks on the crypto industry, the attempt to stabilize the U.S. banking system continues. For the first time since 2020, the Fed again entered the repo market. Transactions totaled $60 billion during the week:

This usually happens when banks suddenly stop lending to each other, so we have to use an emergency source of liquidity — the Fed itself. The Fed's entry into the interbank repo market is extremely rare, and it is always a sign of a dangerous situation in the banking sector.

Important events ahead

  • On March 29, the EU will vote to ban anonymous transfers of large amounts of crypto assets from its own wallet. If this law passes, it will have serious consequences for EU crypto companies such as cryptocurrency exchanges.

  • According to the defense attorney, the judge's decision in the Ripple case will be announced and will take effect in the coming weeks (possibly this week). This precedent will have a huge impact on the crypto industry.

  • Markets are waiting for the next FOMC meeting on May 3, when the Fed will again decide the fate of the interest rate. According to experts' estimates, this rate most likely will not change — market participants now estimate the probability of such an event at 88%.

New term

Coinbase came up with a new term — Flatcoin. It is a new kind of stablecoin that represents an index of different currencies. Coinbase is going to create its own kind of stablecoin, which would additionally protect the asset from inflation.

👉 Opportunities

[1] 🔔 Buy $ARB

The $ARB token caused quite a furor last week, becoming the most popular asset (as measured by the number of mentions on social media) in March. $ARB broke the record of $APE! Despite the popularity, having started trading above $10 at the start this token has been gradually declining, dropping to the $1 area.

Today we use a non-standard indicator to buy DIP — for copy trading we use Justin Sun as a "live" indicator, who is known for his serial successful investments. Justin started buying this token recently, and in the last 3 days he bought more than $100 million worth of $ARB tokens. His logic is clear, according to Dune, 89% of the issued tokens have already been received and sent to the exchange (in other words, sold), so the pressure on the price is almost exhausted. Now only whales remain on the market, which are gradually buying up the asset. This is clearly visible on the chart in the way of price stabilization in recent days:

[2] 🔔 5 ways to qualify for the MASK tokens airdrop

MetaMask is a well-known self-custody wallet. Airdrop wasn’t officially announced, but there are rumors, that the snapshot date could be on March 31.

  1. Swap tokens on MetaMask:

  • Go to the main menu.

  • Click on the blue Swap icon.

  • Trade with ETH for any token (don't forget to leave some ETH for gas).

  1. Use the MetaMask bridge:

  • Go to the Bridge.

  • Connect your wallet.

  • Select Ethereum as the first network.

  • Choose the second network - Bridge

  1. Create a Gnosis Safe Wallet

  • ConsenSys and Gnosis Safe have announced a partnership, so rewards may be available to users here.

  • Go to Safe.

  • Connect your wallet.

  • Create a Multisig Safe wallet.

  1. Donate via Gitcoin:

  1. Sign Up for Infura:

  • Go to Infura. Fill out the form.

  • Visit their Discord.

[3] 🔔 Is it a good price to buy Dogecoin (DOGE) now?

The DOGE/USDT price is in a wide buy zone of $0.057-0.073. If you trust in the Dogecoin project, or at least believe that Elon Musk can raise the price of DOGE/USD again, this is the right buy zone.

According to P_S_trade, it is wise to place buy orders by "a grid" in this zone to end up with a nice average price of DOGE in a medium or long-term investment portfolio.

If and when the long-awaited alt-season begins on the crypto market, the medium-term target of $0.16 and the long-term target of $0.33 for the DOGE price look more than realistic.

✍ Opinion of the day

Q: Market makers, under the management of projects, frequently issue their own tokens on exchanges, setting the price and enabling trading. However, is this a form of speculation, and are these market makers misleading ordinary traders?

Market makers know what will happen. In theory, this knowledge is needed to optimally set the purchase and sale prices, as well as to correctly define the volume of applications. But in practice, it can also be used to push the price in the appropriate direction for the market maker.

Rare market makers have enough liquidity to reverse the trend, at least for a short time anyway, and large crypto exchanges are trying to limit such activity in order to maintain customer loyalty. In this case, the lack of regulation is beneficial: the exchange can refuse service to any client, including the «whale».

So in practice, the amount of market manipulations are small. The vast majority of crypto traders with triggered Stop Losses and liquidated positions are victims of their own incorrect calculations and attempts to play against the market.

Eloisa Marchesoni - Web3 advisor and Medium author

Answer a quick question and get a chance to win ETH tokens.

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Have a happy week and lots of good deals! See you tomorrow. We'll have a new round of useful information.

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