Happy Wednesday!

As you make your way over the week’s hump, remember that a camel’s hump doesn’t actually store water, it stores fat, fat that they can live off of for months.

The widespread belief that there’s water in the hump comes from the fact that a camel can consume 40 gallons of water in one sitting.

So, be like the camel, and get thirsty for the news of the day. 🐪

Espresso Shots

Big news from the day!

☕️ Binance still expects to be part owner of Twitter. If Elon will have them. 🐥

Yes, the endless Elon-Twitter saga trudges on. On the bright side, for most of us, there’s no real stake in the drama. The same cannot be said for Binance CEO, Changpeng Zhao.

During Musk’s original bid, Binance committed $500 million to Elon’s Twitter takeover. Since then - Binance’s investment (and Musk’s for that matter) have stalled out. Asked this week whether he was still investing in Musk’s Twitter bid, the Binance Billionaire responded: “I think so.”

This feels a bit like the billionaire equivalent of telling your friend you’re definitely going to send him money for those concert tickets but the concert isn’t for months and you’re not actually sure if everyone’s committed to going yet, so you don’t send the money. But you’re open to it if some of your other friends are going.

☕️ Businessweek writes an ode to crypto!  📰💰

If you read one article about crypto, this one should be it. That is, if you can get through it. For just the second time in the history of Businessweek, the entire issue is dedicated to just one topic: “The Crypto Story.”

The piece is a well-researched, 40,000 word essay by opinion writer Matt Levine. It covers the origins of crypto, where it is today, and where it might be going. It’s well worth the read and takes a refreshingly optimistic, yet honest, look at crypto technology.

Take a deep dive into this one, and emerge feeling fresher than Changpeng Zhao’s fade.

☕️ Phishing scam claims $1 Million+ in NFTs. 🙈

A phishing scammer known as Monkey Drainer has stolen over a million dollars in crypto and NFTs over the past two days. The scammer was able to gain control of these assets after individuals signed transactions on one of Monkey Drainer’s phishing sites.

Assets stolen in the phishing scam included a Bored Ape NFT among others, so it would appear that monkeys, truly, were drained. The theft was discovered by a Blockchain sleuth who goes by ZachXBT.

Last we saw him, ZachXBT was in his virtual office, wingtips up on the desk and cigarette smoldering in an ashtray, when a dame walked in. “Her body was made of 1’s and 0’s, her eyes said help, but her mouth said trouble.”

Spilling the Beans

Crypto goes to Washington!

Senator Elizabeth Warren & Rep. Alexandria Ocasio-Cortez sent letters to the heads of seven federal agencies expressing concern over the number of ex-government employees flooding into Crypto jobs. 

The federal agencies the lawmakers contacted include the SEC (Securities and Exchange Commission) and the CFTC (Commodity Futures Trading Commission.)

Whether or not there’s any merit to their concerns, there certainly has been a surprising number of ex-government employees making their way to crypto.

Here are the numbers:

• 235+ officials from the federal government have moved into crypto jobs.

• At least 78 of these moves come from government agencies that directly regulate the financial sector.

• 32 former White House officials have moved into the crypto industry.

• 87 former congressional workers have moved into the industry, including 8 former Members of Congress.

• Former financial positions include: 31 former Treasury officials; 28 from the SEC; 15 from the CFTC; 5 Currency officials; and 3 Consumer Financial Protection Bureau officials.

The letter, signed by 5 Democratic Members of Congress, alleges: 

The concern described in the letter is specifically: “revolving door hires.” Revolving door hires go a bit like this: 

• ‘Person A’ gets a cool job at a government agency that pays a slick $55,000 a year.

• ‘Person A’ leaves that cool job for one that pays “$250,000” in the private sector.

• ‘Person A’ gets in touch with a friend from the government agency when they need a favor. 

On the other side of the door:

• ‘Person B’ gets hired at a private sector company, maybe by ‘Person A.’

• ‘Person B’ gets referred to a job at the government agency and takes it. 

• ‘Person B’ takes part in creating policies that will govern the company they just left.

This is a shockingly normal phenomenon in all elements of the financial industry. That said, the focus on Crypto here seems a bit pointed.

Ultimately, the letter from Democratic lawmakers is unlikely to move the needle at all here. But the focal point of the letter: this crypto-government revolving door, genuinely could impact the future of crypto regulation.

This revolving door stands to be a game changer much in the same way that the dumbwaiter entirely revolutionized room service and hotel laundry.

Meme of the Day

We celebratin' tonight.

The Last Sip

I know, 40,000 words is a lot.

But if you’re looking for somewhere to get caught up on the origins of crypto from the very beginning, you’ll be hard pressed to find anything else like this.

This article is both simultaneously easy to read and insanely thorough. So do yourself a favor and check this piece out. If you do, let us know what you think!

Stay Caffeinated,

Coffee & Crypto Team

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.