Radical changes for Ethereum? Also: how not to miss out on profits during the next bull market and get ARB for cheap

Hi, friends! We hope you are having a wonderful Wednesday. You received an email from the buidlbee team with helpful tips, signals, and reviews. Here's what we have for you today 👇

• What happens if Ethereum is recognized as a security?

• A manual on how to get Arbitrum tokens (ARB) by spending $3-5.

• Learn what to do during the upcoming bull run.

• How and why to track smart wallets.

• And get a chance to win an ETH by answering just 1 question.

Want to know how you can make money from token unlocks? We will give a practical guidebook, "How to make money from token unlocks," to everyone who invites 1 friend to subscribe to the buidlbee newsletter!

🎯 Living on the Edge: Ethereum under legal attack

The recent open court case against Erhereum to have it recognized as a security could potentially be a real bomb for a lot of PoS-based cryptocurrencies.

What happened

On Thursday, March 10, the New York attorney general's office filed a lawsuit against the KuCoin exchange. The essence of the claims is that the exchange traded unregistered securities, including Ethereum. Previously, Gary Gensler, the head of the SEC, had repeatedly called Ethereum a security, but this time, the judiciary moved on from words to deeds.

Why is Ethereum being blamed?

The main reason is the switch from Proof-of-Work (PoW) to Proof-of-Stake (PoS) at the end of 2022. And how is PoS different from the same standard stocks in a company?

Whoever has the largest block of securities makes the decision, sits on the board of directors, and so on. Small private investors can only count on dividends and the growth of the market rate. It's not just the move to Proof-of-Stake that's raising questions. The decentralization of Etherium is also questionable, and the move to PoS has only worsened the problem.

The SEC is now interpreting securities under the Howey case of 1946. Whether Ethereum will pass the Howey test, investors will know in 2023 (2024 at most), and this decision could be a fateful one for the large cryptocurrency sector.

Consequences for the crypto market

In the cryptocurrency world, most altcoins at the moment run on PoS (or variations like Proof-of-History like Solana). The point is not what the name of the consensus protocol is, but the way coins are mined. And they are being created via staking almost everywhere these days. Then again, the recent demonstrable court attack by the SEC on staking by Kraken comes immediately to mind.

Obviously, all other projects and services that use staking and PoS can be affected as well: Coinbase, Solana, Avalanche, and so on.

There is case law in the United States in favor of this. If Ethereum is recognized as a security because it is on PoS, all other PoS projects will automatically be banned as well.

What do we think about this?

At this point, it's just an accusation that has yet to be proven and brought to execution. It seems to us that this process will be greatly extended in time, as it was in the case with Ripple.

Most likely, attacking the crypto industry directly will not be decided by the SEC anytime soon, as a lot of urgent economic issues at the moment make the threat from crypto temporarily irrelevant. This takes attention away from Ethereum in the background; however, the accusation itself makes perfect sense and is quite dangerous. Waiting for the final decision will make life for crypto investors nervous and unpredictable, at least in the U.S.

👉Opportunities

[1] 🔔 $ZETA airdrop howto

For those who haven't had time to participate in the very popular $ARB airdrop, there is an exciting new opportunity. Pay attention to

@zetablockchain, this detailed thread describes a thorough algorithm on how not to miss the $ZETA airdrop (and here's an alternative strategy that's simpler, take your pick). According to many, this giveaway promises to be just as hot as $ARB, so go for it!

[2] 🔔10 valuable tips for the next bull run

Our friend Panos Mekras shared his experience with our community. He has been in the crypto industry for 7 years and has learned a lot of things to share.

1. Always do your own extensive research and understand the asset you want to invest in. Do NOT rely on others’ opinions.

2. Always invest what you can afford to lose. First, ensure that you have savings in cash and an emergency fund for any case, and then invest. Do NOT FOMO buy, especially with money you didn't intend to invest before a bull run.

3. DCA (Dollar Cost Averaging)/buying and investing an amount regularly, every week or month (if you have a stable income), no matter the price, is the best strategy over the long term for good projects.

4. Learn how to manage your emotions. Fear and greed are your two biggest enemies. Always remain calm when investing and doing business.

5. Do NOT be greedy and fall into the trap of selling to buy back cheaper and do NOT trade if you don't have strong experience and you haven't studied basic finance and how markets work.

6. Do NOT be a maximalist or tribalist. The future is multichain, and there will be many winners.

7. Do NOT store your crypto on exchanges or centralized platforms. Hardware wallets are the most secure wallets.

8. Learn how to manage risk, know what kind of investor you are, and how risk tolerant you are and build a good strategy and plan you can follow.

9. Do NOT follow and watch YouTubers or influencers that make price predictions and technical analyses, and try to hype you up or create fear and panic. Stick to your research, fundamentals, utility, and adoption over the long term.

10. Relax and enjoy the ride. This is just the beginning of the most important decade for crypto and blockchain.

Panos Mekras is the author of an excellent comprehensive guide for beginners who want to learn about cryptocurrencies, blockchain technology, Web3, NFTs, and DeFi. The work is available on Amazon (physical) and Payhip (e-book).

[3] 🔔 Keeping an eye on smart wallets

This is one possible trading strategy that is available to beginners. You find an address that is having a lot of success earning income and follow the trades it makes. Smart money tracks wallets that are actively moving funds and earning money efficiently. They detail what they hold and where they move their capital. This mostly applies to cryptocurrency organizations that trade or invest and are considered experienced and well-informed.

Of course, this is not a 100% guarantee of success. And speed is extremely important here: if a smart wallet, for example, bought certain tokens an hour ago, there is probably no point in following in its footsteps. But if the trade was made a few minutes ago, the probability of a profit is higher.

When interpreting, you can start by examining the transaction history and analyzing the details of each transaction. This may include looking at the amount of cryptocurrency transferred, the sender and recipient addresses, and any transaction fees.

See how a smart wallet buys a certain cryptocurrency. Maybe he knows about the future of the plunge or has found a good entry point. Started to get rid of a certain asset? Probably knows about the coming collapse or risks.

For example, an address named smartestmoney.eth (you can find it via the Etherscan service) boasts a number of successful moves. It withdrew 4 million USDC and 10,646 ETH ($19 million worth) from FTX before the exchange suspended withdrawals, and made a profit of about 200 thousand USDT while withdrawing USDC.

Now, this address transferred 7,868 ETH (amounting to about $14 million) to Binance a several hours ago. Usually, the funds are transferred to the exchanges before they are ready to sell.

To find smart wallets, you can use both social networks and online services (such as Cherrypick). You can also track smart wallet transactions using paid services. For example, ClankApp, DeBank, Moralis, DexCheck, etc.

Here are some smart airdrop hunters who have gotten almost every good giveaway 👇

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