A glimpse into the billionaire boys club 👑

This is Web3 Seems Legit, the weekly newsletter that serves you the latest web3 and crypto news in 5 minutes or less. On the menu this week is a hot and spicy bowl of fun and FUD 🌶️.

In this issue, we're digging into some of Elon Musk's private text messages and more:

• What did Elon's messages reveal about web3? As part of his Twitter lawsuit, some of Elon's personal text messages were released. In one exchange, he talks about building a web3 social media platform.

• Who is SBF and why is he everywhere? Sam Bankman-Fried, aka SBF. He's the CEO of FTX, but lately, it seems like he's been popping up in every crypto conversation. Who is he?

• What happens if these major banks collapse? Buckle up folks, it's going to get real rocky this week. Major international banks Credit Suisse and Deutsche Bank are on the brink of collapse. Whatever happens, expect volatility in all markets.

What did Elon's messages reveal about web3?

We love some good gossip and Musk never fails to bring it. Aside from unveiling Tesla's new humanoid robot this week, some of his personal text messages were also revealed 👀.

If you can recall, Twitter filed a lawsuit against Musk for abandoning the $44 billion deal to buy the social media giant. As part of the lawsuit, some of Musk's personal text messages were released, giving us a glimpse into the world of the billionaires. In one particular conversation, he talks about what a decentralized social media platform would look like.

In a text exchange with Jack Dorsey (former CEO of Twitter), these two gentlemen discuss their similar interests and desires to build a new Twitter that's open source and not owned by a centralized entity. This would solve the issues of intrusive advertising, censorship and content moderation 💯.

We have to say, it sounds 100% legit 🔥. But a web3-based social media platform isn't a new idea. In fact, there are several ongoing projects attempting to tackle it.

Widespread adoption of a new social media platform, especially one based on the blockchain, will be a big challenge. But if there's any duo that can pull this off, it's Musk and Dorsey. Fingers crossed 🤞!

Who is SBF and why is he everywhere?

Within Musk's treasure chest of text messages were also conversations about Sam Bankman-Fried. It's revealed that SBF was initially interested in putting in $5 billion with Musk to buy Twitter.  

The thing is, Musk had no idea who he is 😂. 

Now, SBF is kind of a hot shot in crypto. He's best known as the CEO of FTX, one of the top 10 crypto exchanges in the world. But lately, he's been taking on a new role as crypto's 'sugar daddy' 😏. 

To many, he seems like the hero we need. Most recently, SBF bought up Voyager, the bankrupt crypto lender for $1.4 billion. The hope is that he'll return a fraction of the funds to Voyager's investors, but we don't know how much or little it will be yet 🫡.  

It's said that he's also eyeing to bailout Celsius Network, another bankrupt crypto lending company. So it's safe to say that SBF has deep pockets, but are his intentions good? Should one man hold so much power in the crypto sphere? We're not sure, but he's definitely one to keep an eye on 🤔. 

What happens if these major banks collapse?

If things weren't chaotic enough already, it's about to get crazier. Major international banks Credit Suisse and Deutsche Bank are apparently on the brink of collapse and may take the whole market down with them 🥴.

People are comparing it to the Lehman Brothers moment back in 2008 when the bank filed for bankruptcy. Just like Lehman Brothers, Credit Suisse and Deutsche Bank are Global Systemically Important Banks (G-SIBs), aka "too big to fail".

On Monday, an emergency board meeting will take place. A bailout will likely happen because well, they are too big to fail.

Could this be the crypto renaissance we're looking for? Whatever happens, expect volatility to trickle across all markets 🫠. 

Additional reads 🗞️

• The patterns behind cryptocurrency collapses

• Low-budget crypto investing

• The psychology of resilience

Did you enjoy this issue? We'd appreciate if you could like, share and follow us @web3seemslegit!