Nervos Network’s Force Bridge was hacked for $3.9 million in crypto, prompting an immediate shutdown as the team investigates the exploit.
Blockchain security firm Cyvers Alerts first reported the incident in a June 2 post on X, noting that a suspicious address appeared to have taken control of the bridge. Several tokens were drained by the attacker, including 60,400 Dai (DAI), 539 Ethereum (ETH), 898,300 USD Coin (USDC), 257,800 Tether (USDT), and 0.79 Wrapped Bitcoin (WBTC).
The attack siphoned off approximately $3 million from the Ethereum side and an additional $800,000 from BNB Chain. In another update, blockchain security firm Hacken revealed that the exploit occurred after the attacker made multiple failed attempts over a six-hour period before finally breaching the system.
“This exploit reinforces what we’ve been warning about for months: access control failures are now one of the most critical threats in Web3,” Hacken said in a statement shared with Crypto.news. “The attacker made multiple failed attempts over a 6-hour window before successfully draining 874 BNB. That kind of activity should have raised immediate alarms.”
According to Hacken, the attacker initially targeted Force Bridge on BNB Chain shortly after 01:30 UTC on June 2, making repeated failed attempts. A small test breach occurred around 02:23 UTC, netting just $25. The full-scale exploit happened at 07:36 UTC, when 874 BNB, worth roughly $572,000 at the time, was successfully drained. Additional funds were later stolen on both BNB Chain and Ethereum, bringing the total to $3.9 million.
The stolen assets were quickly funneled through crypto mixers and anonymous platforms, including Tornado Cash and FixedFloat, in an attempt to obscure the trail. Hacken noted that funds were split among newly created wallets and routed through multiple hops before being deposited to these services.
Hacken stressed that the attack could have been mitigated with real-time monitoring tools like its Extractor platform, which is designed to detect abnormal activity across chains and stop exploits before they escalate.
In response to the hack, Magickbase, a Nervos Network (CKB) community developer, halted all Force Bridge activity, stating, “We’ve detected abnormal activity on #ForceBridge and have paused the service as a precaution. Our team is investigating.”
Force Bridge plays a key role in Nervos Network’s multi-chain vision, enabling transfers of assets like ETH, ERC-20 tokens, and potentially non-fungible tokens between Nervos and networks such as Ethereum and Binance Smart Chain.
The bridge functions by locking assets on the source chain and issuing matching tokens on Nervos, under the protection of a multi-signature wallet operated by Nervos and its partners.
This exploit adds to a growing list of cryptocurrency hacks that continue to trouble the industry. According to blockchain security firm PeckShield, the cryptocurrency industry lost $244.1 million in May as a result of hacks. Although that number is still high, it represents a 39% decrease from the total losses in April, indicating a slight improvement in response or defense capabilities.
DAXA issues a caution notice for Nervos (CKB) after a bridge hack in its ecosystem. South Korea records its first corporate crypto trade by World Vision via Upbit. New FSC guidelines enable nonprofit crypto transactions starting June 1, 2025. Nervos Network (CKB) has come under increased regulatory scrutiny in South Korea following a recent security incident. On June 2, 2025, the Digital Asset eXchange Alliance (DAXA), an association of licensed digital asset exchanges in the country, issued a cautionary alert concerning CKB.
너보스(CKB) 유의 촉구 안내
너보스(CKB)는 디지털 자산 거래소 공동협의체(DAXA)에 의하여 유의 촉구되었습니다.
Nervos Network(CKB) Precaution Notice
CKB have been flagged with a precautionary alert by the Digital Asset eXchange Alliance (DAXA).
🔗 Discover more:…
— Upbit Korea (@Official_Upbit) June 2, 2025 The move follows confirmation that assets within the Nervos ecosystem were compromised through a bridge hack. The alert, disclosed by DAXA member exchange Upbit, is part of broader investor protection measures in the event of security risks or market anomalies tied to listed digital assets.
The caution notice allows DAXA member exchanges to take further action if necessary. These include marking the asset as a trading caution item or, in more severe cases, terminating trading support entirely. DAXA stated that such steps are designed to minimize risks to investors and maintain market integrity. As part of its mandate, the alliance continues to review digital assets supported by its members and monitors for any developments that may require swift intervention.
Nervos Bridge Compromise Sparks Regulatory Review According to the official statement, the breach occurred within a bridge linking Nervos to other blockchain networks. The exact scale of the compromise has not been disclosed, but the incident prompted immediate review procedures by DAXA exchanges. The organization did not confirm whether trading restrictions would follow, but emphasized that user protection is a priority.
This is not the first time that a bridge hack has led to heightened regulatory concern. Blockchain bridges, which allow the transfer of assets between different blockchain platforms, have become critical infrastructure but remain high-risk points of vulnerability. DAXA reiterated its commitment to providing timely information and implementing appropriate countermeasures when digital asset security is compromised.
Institutional Crypto Activity Begins in South Korea The Nervos alert was discussed just one day after South Korea experienced significant progress in institutional crypto. On June 1, 2025, a domestic firm successfully executed the country’s first deal involving virtual assets under the new rules. World Vision International made an Ethereum transaction totaling 0.55 Ethereum and worth 1.98 million won (around $1,431). The purchase was processed using a corporate account connected to K Bank.
This follows a policy update by the Financial Services Commission (FSC) and related agencies earlier this year. In February 2025, authorities outlined a roadmap that permits qualified non-profit entities to conduct cryptocurrency transactions for cash starting June 1. The regulatory adjustment is intended to create a formal entry point for institutional participation in the digital asset market.
Dunamu, which runs Upbit, said the deal was completed and noted this is a key first step for welcoming legitimate groups into the regulated crypto world. The company declared that it will continue working to be ready for listed corporations and professional investors, as stated by Korean law.
AUTHOR
Peter Mwangi is an accomplished crypto news writer with over three years of experience. He is recognized for producing insightful, well-researched content across major crypto publications. As an expert in blockchain technology, digital assets, and decentralized finance, he can uniquely simplify complex topics into engaging, accessible narratives. His strong storytelling and analytical skills, combined with a passion for continuous learning and collaboration, make him a valuable asset to the BlockchainReporter team.
Nervos Network's Force Bridge, a cross-chain bridge facilitating transfers between Ethereum and Binance Smart Chain (BNB), has been exploited in a cyberattack resulting in the theft of approximately $3
Nervos Network's Force Bridge, a cross-chain bridge facilitating transfers between Ethereum and Binance Smart Chain (BNB), has been exploited in a cyberattack resulting in the theft of approximately $3.9 million in cryptocurrency.
Security analysts and blockchain security firm HashEx identified the hack as stemming from an access control failure in the bridge's system. Reports indicate that a failed exploit attempt occurred about six hours prior to the successful breach. The incident highlights ongoing vulnerabilities in cross-chain bridge technologies used in decentralized finance.
This is an AI-generated article powered by DeepNewz, curated by The Defiant. For more information, including article sources, visit DeepNewz.
11/20 update below. This post was originally published on November 19
Bitcoin, ethereum and smaller cryptocurrencies have plunged over the last month as crash fears suddenly sweep through the market.
Sign up now for CryptoCodex—A free crypto newsletter that will get you ahead of the market
The bitcoin price has dropped under $100,000 per bitcoin, giving up the psychological level and dragging ethereum and other major cryptocurrencies lower even as analysts claim the liquidity “flood gates” have been opened.
Now, as traders brace for a potential $1 trillion bitcoin and crypto market crash, the threat to crypto from quantum computers has led to ethereum cofounder and the project’s spiritual leader Vitalik Buterin warning elliptic curve cryptography could break before the next U.S. presidential election in 2028.
Sign up now for the free CryptoCodex—A daily five-minute newsletter for traders, investors and the crypto-curious that will get you up to date and keep you ahead of the bitcoin and crypto market bull run
Forbes‘Flood Gates Are Now Being Opened’—Bitcoin Braced For Trump ‘Tsunami’ As He Promises 2026 Price Game-ChangerBy Billy Bambrough
MORE FOR YOU
Vitalik Buterin, a cofounder of ethereum, the second-largest cryptocurrency after bitcoin, has issued a stark warning over ethereum's future.
AFP via Getty Images
“Elliptic curves are going to die,” Buterin warned, referring to one of the foundational pillars of bitcoin, ethereum and crypto encryption, during the Buenos Aires Devconnect conference in comments reported by DL News.
11/20 update: Ethereum cofounder Vitalik Buterin has also warned that the growing influence of Wall Street giant BlackRock over cryptocurrencies including bitcoin and ethereum could cause problems for the networks.
“How do you avoid capture by big behemoths like BlackRock?” Buterin was asked on stage, according to a DL News report, referring to a surge of institutional interest after the launch of BlackRock’s bitcoin and ethereum exchange-traded funds (ETFs) in early 2024.
Buterin warned that if BlackRock and other large institutions keep expanding their ethereum holdings, the network faces the possibility that those focused on decentralization get crowded out and base-layer choices are optimized for institutions, making it harder for regular users to run nodes, and in turn driving centralization.
“It easily drives other people away,” Buterin said. “We need to focus on the things that would otherwise be in short supply: global, permissionless, and censorship-resistant protocol."
This week, BlackRock registered a staked ethereum fund in Delaware, signaling its intent to enter the staked ether ETF market, while its flagship ethereum ETF now holds $10 billion worth of ethereum.
Last month, Google claimed a breakthrough in quantum computing, following in Microsoft’s footsteps after it unveiled a new quantum-enabling chip in February.
These and similar developments have catapulted quantum computing’s risk to bitcoin, ethereum and crypto up the agenda.
“Given the current staggering rate of hardware progress, I now think it’s a live possibility that we’ll have a fault-tolerant quantum computer running Shor’s algorithm before the next U.S. presidential election,” quantum computer researcher Scott Aaronson wrote in blog post this month, referring to how a quantum computer could break the encryption that underpins cryptocurrencies like bitcoin and ethereum.
The “magnitude of the threat that quantum poses to all blockchains,” has given crypto investor Nic Carter “an urgent sensation like I have to act on it now with as much intensity as I can muster,” he posted to X.
Sign up now for CryptoCodex—A free crypto newsletter that will get you ahead of the market
ForbesJPMorgan Just Called The Bitcoin Price Bottom—Predicts Massive $28.3 Trillion Gold Challenge In 2026By Billy Bambrough
The bitcoin price has dropped sharply over the last month, dragging down ethereum and other major cryptocurrenices.
Forbes Digital Assets
"We don’t need to panic, but we need to get serious," Alex Pruden, the chief executive of quantum computing risk company Project 11 posted to X, adding that “quantum computers at sufficient scale will break crypto at the most fundamental level imaginable.”
Meanwhile, bitcoin developers have also been warned they need to prepare for the post-quantum world that could become a reality by 2030.
“You should have a few good years ahead of you but I wouldn’t hold my bitcoin,” Théau Peronnin, the chief executive of Alice & Bob, told Fortune during the Web Summit conference in Lisbon, Portugal.
“They need to fork [move to a stronger blockchain] by 2030, basically," Peronnin said. "Quantum computers will be ready to be a threat a bit later than that."
11/20 update below. This post was originally published on November 19
Bitcoin, ethereum and smaller cryptocurrencies have plunged over the last month as crash fears suddenly sweep through the market.
Sign up now for CryptoCodex—A free crypto newsletter that will get you ahead of the market
The bitcoin price has dropped under $100,000 per bitcoin, giving up the psychological level and dragging ethereum and other major cryptocurrencies lower even as analysts claim the liquidity “flood gates” have been opened.
Now, as traders brace for a potential $1 trillion bitcoin and crypto market crash, the threat to crypto from quantum computers has led to ethereum cofounder and the project’s spiritual leader Vitalik Buterin warning elliptic curve cryptography could break before the next U.S. presidential election in 2028.
Sign up now for the free CryptoCodex—A daily five-minute newsletter for traders, investors and the crypto-curious that will get you up to date and keep you ahead of the bitcoin and crypto market bull run
Forbes‘Flood Gates Are Now Being Opened’—Bitcoin Braced For Trump ‘Tsunami’ As He Promises 2026 Price Game-ChangerBy Billy Bambrough
MORE FOR YOU
Vitalik Buterin, a cofounder of ethereum, the second-largest cryptocurrency after bitcoin, has issued a stark warning over ethereum's future.
AFP via Getty Images
“Elliptic curves are going to die,” Buterin warned, referring to one of the foundational pillars of bitcoin, ethereum and crypto encryption, during the Buenos Aires Devconnect conference in comments reported by DL News.
11/20 update: Ethereum cofounder Vitalik Buterin has also warned that the growing influence of Wall Street giant BlackRock over cryptocurrencies including bitcoin and ethereum could cause problems for the networks.
“How do you avoid capture by big behemoths like BlackRock?” Buterin was asked on stage, according to a DL News report, referring to a surge of institutional interest after the launch of BlackRock’s bitcoin and ethereum exchange-traded funds (ETFs) in early 2024.
Buterin warned that if BlackRock and other large institutions keep expanding their ethereum holdings, the network faces the possibility that those focused on decentralization get crowded out and base-layer choices are optimized for institutions, making it harder for regular users to run nodes, and in turn driving centralization.
“It easily drives other people away,” Buterin said. “We need to focus on the things that would otherwise be in short supply: global, permissionless, and censorship-resistant protocol."
This week, BlackRock registered a staked ethereum fund in Delaware, signaling its intent to enter the staked ether ETF market, while its flagship ethereum ETF now holds $10 billion worth of ethereum.
Last month, Google claimed a breakthrough in quantum computing, following in Microsoft’s footsteps after it unveiled a new quantum-enabling chip in February.
These and similar developments have catapulted quantum computing’s risk to bitcoin, ethereum and crypto up the agenda.
“Given the current staggering rate of hardware progress, I now think it’s a live possibility that we’ll have a fault-tolerant quantum computer running Shor’s algorithm before the next U.S. presidential election,” quantum computer researcher Scott Aaronson wrote in blog post this month, referring to how a quantum computer could break the encryption that underpins cryptocurrencies like bitcoin and ethereum.
The “magnitude of the threat that quantum poses to all blockchains,” has given crypto investor Nic Carter “an urgent sensation like I have to act on it now with as much intensity as I can muster,” he posted to X.
Sign up now for CryptoCodex—A free crypto newsletter that will get you ahead of the market
ForbesJPMorgan Just Called The Bitcoin Price Bottom—Predicts Massive $28.3 Trillion Gold Challenge In 2026By Billy Bambrough
The bitcoin price has dropped sharply over the last month, dragging down ethereum and other major cryptocurrenices.
Forbes Digital Assets
"We don’t need to panic, but we need to get serious," Alex Pruden, the chief executive of quantum computing risk company Project 11 posted to X, adding that “quantum computers at sufficient scale will break crypto at the most fundamental level imaginable.”
Meanwhile, bitcoin developers have also been warned they need to prepare for the post-quantum world that could become a reality by 2030.
“You should have a few good years ahead of you but I wouldn’t hold my bitcoin,” Théau Peronnin, the chief executive of Alice & Bob, told Fortune during the Web Summit conference in Lisbon, Portugal.
“They need to fork [move to a stronger blockchain] by 2030, basically," Peronnin said. "Quantum computers will be ready to be a threat a bit later than that."
Strategy, formerly known as MicroStrategy, the largest public holder of Bitcoin (BTC), finds itself at the center of a stormy controversy involving JPMorgan as Bitcoin prices continue to struggle.
With signs of a potential bear market emerging, fresh rumors suggest that one of the world’s largest banks allegedly holds a significant short position on Strategy’s stock (MSTR), which has plunged 69% from its record high of $543 per share last year.
Strategy Faces Potential MSCI Exclusion The turmoil escalated last week when JPMorgan issued a warning that Strategy might soon be removed from major equity indices, specifically the MSCI USA Index.
JPMorgan’s analysts noted that the issues facing Strategy extend beyond the recent downturn in cryptocurrency prices, which have seen Bitcoin fall more than 30% from its all-time highs.
As of this writing, Bitcoin is trading around $86,000, while the broader crypto market has experienced a staggering $1 trillion decline in total market capitalization over the past month.
JPMorgan’s analysts indicated that MSCI is considering whether companies with over 50% of their total assets in digital currencies should qualify for inclusion in traditional equity indices. Given that Strategy’s balance sheet is heavily weighted with Bitcoin, it is at significant risk of exclusion.
The analysts stated that “MicroStrategy [is] at risk of exclusion from major equity indices as the January 15th MSCI decision approaches.” They speculated that removal from the MSCI could trigger approximately $2.8 billion in outflows, and if other index providers follow MSCI’s lead, the total could reach as high as $8.8 billion.
The situation is complicated by market dynamics, particularly the timing of JPMorgan’s bearish note, which coincided with Bitcoin’s weakness and MSTR’s decline, all while liquidity was thin and overall sentiment fragile.
JPMorgan Faces Account Closures Surge According to analysts at the Bull Theory, JPMorgan has been noted for timing its market reports—bearing down when prices are already weak and striking a more bullish tone near market peaks.
The analysts have highlighted that share lending for MSTR has reportedly increased, allowing brokers to lend shares to short sellers, which can exacerbate downward pressure on the stock price.
Additionally, there are escalating reports of widespread account closures at JPMorgan, with thousands claiming to have exited due to perceived manipulation of both MSTR and Bitcoin.
Amid these developments, the fear of a potential short squeeze is growing. The analysts believe that if Strategy’s stock were to rally around 40% to 50%, it could trigger a short squeeze in the bank’s position and spell major financial troubles.
In response, Michael Saylor, the CEO of Strategy, has sought to clarify the company’s identity, emphasizing that it is not just a passive Bitcoin holder. He pointed out that Strategy operates as a software business with an active financial strategy, countering the narrative circulating around MSCI’s concerns.
As the situation unfolds, several key points emerge. The October 10th crash appeared to align with the MSCI announcement, coinciding with an already fragile market state. JP Morgan’s strategic timing of its bearish insights has amplified existing fears, creating further uncertainty as MSCI’s final decision looms.
The daily chart shows MSTR’s valuation trending downwards, trading below $170. Source: MSTR on TradingView.com Featured image from DALL-E, chart from TradingView.com
Trader Notes: On-chain analytics platform Santiment reports that Shiba Inu may be heading into a period of significant volatility, driven by a spike in large whale transactions.
SHIB recorded 406 transactions over $100,000 today, a massive jump from fewer than 50 on June 6, 2025.
This rise coincides with a surge in SHIB moving onto centralized exchanges.
Over the past 24 hours, exchange reserves increased by 1.06 trillion SHIB, bringing total holdings on exchanges to 136.95 trillion SHIB.
The inflows suggest large holders are positioning for major trades, typically a precursor to volatile price swings.
Statistics: According to Shibburn, SHIB's burn rate spiked 248% in the last 24 hours, permanently removing 14.3 million SHIB from circulation. Rising burn activity reduces supply over time, a factor that can support bullish momentum.
Read Next:
Can DOGE & SHIB Still Hit $10? One Can — Here’s The Simple Answer Why Image: Shutterstock
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The Bitcoin price has climbed by a fraction of a percentage to $87,500 as of 11 p.m. EST, showing limited upward momentum as markets digest Peter Schiff’s latest warning following silver’s explosive rally.
Veteran economist Schiff cautioned that Bitcoin could face the opposite outcome of silver’s surge, arguing that market downturns often unfold faster than rallies once selling pressure sets in. His comments followed a dramatic intraday jump of more than 10%, which briefly pushed prices above $79 per ounce for the first time.
What is happening with silver may soon be happening with Bitcoin, only in reverse. But since markets tend to melt down faster than they melt up, the time frame for the move should be condensed.
— Peter Schiff (@PeterSchiff) December 27, 2025
Market data showed silver rising from $78 to $79 in roughly ninety minutes, a move that caught global attention. TradingView charts revealed a near-vertical breakout, confirming that the metal remains in a strong multi-month uptrend and has entered uncharted territory.
Silver’s momentum has strengthened the broader market narrative favoring commodities and alternative assets. This shift is also reflected in the growth of crypto-based tokenized commodities, whose combined market valuation has risen toward $4 billion, signaling increasing investor demand for diversified exposure.
BREAKING: Silver prices extend gains to over +10% on the day, now above $79/oz for the first time in history.
It took just 90 minutes to go from $78 to $79. pic.twitter.com/jISKFkQHCC
— The Kobeissi Letter (@KobeissiLetter) December 26, 2025
Further data from CompaniesMarketCap showed silver narrowing the gap with NVIDIA in total market capitalization, pointing to rising institutional interest in metals. Despite silver’s strength, questions remain about sustainability.
A new chart shows silver’s monthly RSI at its highest level in 45 years, indicating extreme momentum. Another long-term comparison chart highlights Bitcoin losing relative strength against silver, giving back gains accumulated since 2017, underscoring how quickly silver has outperformed BTC in the latest rally.
Bitcoin Price Signals Deeper Downside Risk Bitcoin is trading near $87,500, showing weak price action after failing to hold key support levels. The broader chart structure suggests that bullish momentum has faded, with price now leaning toward a bearish continuation scenario.
A major technical feature is the rounded top formation that developed over several months. This pattern often signals the exhaustion of distribution and trend following a strong rally. Bitcoin has already broken below the neckline support, which was previously holding the price above the $80,000 zone. This breakdown confirms a shift from a bullish to a bearish market structure.
After losing neckline support, Bitcoin attempted a recovery but failed to reclaim that level. The rejected retest turned former support into resistance, reinforcing bearish pressure. Currently, the price is consolidating below this resistance, which limits upside potential in the near term.
BTCUSDT Chart Analysis by Tradingview
On the right side of the chart, price action shows an inverted cup and handle pattern. The small consolidation near current levels represents the “handle,” where buying momentum continues to weaken. A decisive breakdown from this structure would likely accelerate selling pressure.
Based on the measured move from the rounded top and inverted cup pattern, the next major downside target is projected between $50,000 and $55,000. This area also aligns with previous consolidation zones and liquidity levels, making it a realistic technical objective if the bearish setup plays out.
The RSI (14) is currently around 43, remaining below the neutral 50 level, indicating that the bearish momentum is still in control. Importantly, the RSI is not oversold, meaning there is room for further downside before buyers are forced to step in aggressively.
Bitcoin remains technically weak below the $90,000–$92,000 resistance zone. As long as the price stays below this area, downside risk remains elevated. A strong daily close back above the neckline would be required to invalidate the bearish structure. Until then, the technical bias favors continued consolidation or further decline.
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Bitcoin has entered a consolidation phase after a sharp sell-off in November last year. While the broader trend remains under pressure, short-term price action is compressing within a tightening structure. With flashing signs of weakened demand from U.S. spot buyers and prices stuck below major moving averages, BTC traders need to keep a close eye on support levels and whether buyers can regain momentum from here.
Bitcoin Price Analysis: The Daily Chart On the daily timeframe, BTC is forming a clear rising wedge pattern after its recent rebound stalled just below the $95K resistance zone. The pattern is getting tighter, with both the higher and lower boundaries being tested multiple times, hinting that a breakout is nearing. Both the 100-day and 200-day moving averages also remain above the current price, acting as dynamic resistance near $98K and $105K marks, respectively.
Bitcoin’s price was recently rejected from $95K supply zone, which coincides with the wedge pattern’s upper boundary. The RSI has also cooled off from overbought levels and is now hovering around 50, indicating a lack of bullish momentum but also room for a potential push if buyers return.
In this situation, if the wedge breaks to the downside, the next key support lies around the $80K area. A bullish breakout, on the other hand, would need to reclaim $95K and push above the mentioned moving averages before it can be taken as a serious sign of a new rally.
BTC/USDT 4-Hour Chart Zooming into the 4-hour chart, the same rising wedge structure is more visible. The price continues to respect the rising trendline from November’s low, but multiple attempts to break above $95K have failed.
Momentum on lower timeframes is choppy, with no clear follow-through from either side. Buyers defended the mid-range and the rising trendline several times, but the lack of strength near resistance is concerning.
A breakdown below the lower boundary near $88K would likely trigger a retest of the high-volume node near $86K and possibly push BTC toward the major green demand zone around $80K. On the flip side, if buyers manage to reclaim the $92K high and break above the key $95K resistance zone, an aggressive move toward the critical $100K level could be expected.
Sentiment Analysis The Coinbase Premium Index, which tracks the price difference between Coinbase and global exchanges, has been printing significant negative values and still remains in the red. Historically, strong positive premiums have accompanied major uptrends, especially when driven by U.S.-based spot buyers.
The current negative premium suggests reduced demand from U.S. institutional and retail players, a potential warning sign that the recent bounce might not be sustainable. This metric has often preceded deeper pullbacks during correction phases. Until the premium shifts back to positive territory, any bullish move should be treated with caution.
Claims that a Satoshi-era Bitcoin whale suddenly returned to the market with a multi-billion-dollar purchase have injected tension into an already fragile Bitcoin price action. The claims gained traction after social media posts on X revealed that an address dormant since 2011 had accumulated roughly 26,900 BTC, a move framed by some as a powerful bullish signal.
However, a few others saw something very different. One warning revealed that the timing and context of the transfer pointed toward a setup that could lead to a large-scale distribution.
Why Some Traders See A Major Red Flag Claims that a Satoshi-Era Bitcoin address might be actually buying billions of dollars’ worth of BTC took many investors by surprise. According to a crypto participant known as 0xNobler on the social media platform X, the whale address became active for the first time since 2011 and went all in on Bitcoin again. Such a purchase goes against the trend of Satoshi-era whales becoming active after many years to sell their holdings.
The claim of purchase is very bullish on the outside, but there are also bearish interpretations of the move. The bearish interpretation is based on market psychology and the historical behavior of early Bitcoin holders.
A wallet allegedly active since the Satoshi era would have acquired BTC at negligible prices, often well below $1. From that perspective, the idea that such an entity waited more than a decade only to buy aggressively near all-time highs appears illogical.
A critic argued that sudden movements involving billions of dollars at the current price action indicate preparation. According to the critic, the entity behind the whale address is preparing to distribute. Large transfers into newly active wallets can be part of liquidity staging, designed to allow gradual distribution without causing immediate panic.
Satoshi-Era Whale Story Appears To Be A Misunderstanding Closer inspection of the on-chain data indicates that the dramatic narrative surrounding this event rests on questionable assumptions. A few other crypto market participants pointed out that the circulated image claiming a Satoshi-era whale went all in on Bitcoin is edited and misleading, and that the receiving address labeled ‘3FsDiW’ may not belong to an early individual holder at all.
Interestingly, blockchain trackers link the address to Twenty One Capital, with records showing that it was created only a few days ago and the first transaction was first received on January 10, 2026. Transaction history shows a small test transfer of 1 BTC to Bitfinex, after which the remaining funds were consolidated into the new address ‘3FsDiW’ from another wallet already associated with Twenty One Capital.
Twenty One Capital is a publicly traded Bitcoin-focused company that reportedly holds more than 43,000 BTC on its balance sheet. This distinction matters, as it removes the existential fear implied by the original claims of a Bitcoin whale buying billions worth of Bitcoin.
BTC trading at $90,800 on the 1D chart | Source: BTCUSDT on Tradingview.com Featured image from Pngtree, chart from Tradingview.com
As the January 15 markup of the crypto market structure bill—known as the CLARITY Act—draws closer, reports indicate that Coinbase (COIN) is reconsidering its support for the legislation.
A Monday report from Bloomberg suggests this shift in position is contingent on whether the anticipated bill includes provisions beyond enhanced disclosure requirements tied to stablecoin rewards.
High Stakes For Coinbase The CLARITY Act is expected to be marked up in at least one Senate committee this Thursday, and Coinbase’s potential withdrawal could have significant implications for the bill.
A source familiar with Coinbase’s stance told Bloomberg that the exchange would re-evaluate its support if the legislation veers too far from its interests, particularly regarding stablecoin incentives.
Some insiders suggest the bill might restrict the ability to provide rewards to regulated financial institutions, a move that aligns with the banking sector’s concerns about losing deposits to crypto platforms.
Coinbase currently holds applications for a national trust charter that could permit it to offer those kinds of rewards under regulatory rules. However, many crypto-native firms are pushing back against potential restrictions, arguing that such measures could disrupt competition in the market.
The stakes for Coinbase are high, as rewards programs play a crucial role in its business model. The exchange allows users to earn 3.5% rewards on Circle’s USDC holdings.
Should the market-structure bill include bans on these incentives, fewer users might choose to hold stablecoins on the platform. This could jeopardize an anticipated revenue stream projected at $1.3 billion in 2025, according to Bloomberg.
Banking Vs. Crypto The GENIUS Act, passed into law in July of last year, prohibits stablecoin issuers from offering interest on token holdings, and does not prevent third-party partners like Coinbase from providing rewards tied to customer balances.
The banking industry, however, argues that allowing exchanges to pay such rewards could negatively impact bank deposits and, consequently, community lending.
As reported by Bitcoinist over the past month, the American Bankers Association (ABA) has voiced concerns that this situation could displace “billions” from local lending, allegedly harming small businesses and households.
In contrast, Faryar Shirzad, Coinbase’s chief policy officer, has argued that maintaining rewards tied to stablecoins is crucial for preserving the dollar’s dominance, especially in light of China’s announcement to start offering interest on its digital yuan.
Banking Lobby Fights Back A potential compromise being discussed would permit only licensed banking entities or financial institutions to provide rewards on stablecoin balances.
Recently, five crypto firms, including Ripple, Circle, and Paxos, received conditional approvals from the US Office of the Comptroller of the Currency (OCC) to become national trust banks, a move met with opposition from the banking lobby.
If restrictions are indeed imposed, the report suggests that this could lead to creative workarounds as crypto firms seek alternative ways to reward customers.
The 1-D chart shows the exchange’s stock, COIN, surging 4% on Monday towards $245. Source: COIN on TradingView.com Featured image from DALL-E, chart from TradingView.com
The Ethereum (ETH) price is trading with a bullish bias, holding well above the support provided by a longstanding ascending trendline.
While a critical resistance holds on the 4-hour timeframe, positive ETH ETF flows on Monday inspire hope.
Over $5 Million Ethereum ETF Inflows on Monday Fuels ETH Price SurgeThe Ethereum price continues to show strength, at least on the 4-hour timeframe, drawing tailwinds from over $5 million in ETF inflows on Monday.
Data on SoSoValue shows that on January 12, spot Ethereum ETFs reported a total net inflow of $5.042 million. With this, they effectively ended a 3-day net outflow streak.
Ethereum ETF Flows. Source: SoSoValueAmidst the positive flows, however, BlackRock’s ETHA ETF bled $79.9 million, marking the only outflows on Monday as Fidelity, Bitwise, VanEck, Invesco, and Franklin Templeton posted zero flows.
Conversely, 21Shares recorded $5 million in positive flows, alongside Grayscale’s $50.7 million and $29.3 million inflows from its ETHE and ETH investment products, respectively.
As of January 12, the cumulative total net inflows into Ethereum ETFs was $12.44 billion, with up to $940.66 million in total value traded and $18.88 billion in total net assets. Notably, the total net assets account for over 5% of Ethereum’s market capitalization.
Elsewhere, Bitcoin spot ETFs saw a total net inflow of $117 million, marking a shift from four consecutive days of net outflows. Meanwhile, Solana spot ETFs recorded a total net inflow of $10.67 million, while XRP spot ETFs saw a total net inflow of $15.04 million.
Ethereum Price Outlook After $5.04 Million Monday InflowsWith the Ethereum price holding well above the multi-week support offered by the ascending trendline, the dominant trend remains bullish.
With the RSI (Relative Strength Index) rising, momentum is increasing, and if sustained, the ETH price could potentially realize further gains. However, the RSI position around the 50 level leaves a lot on the balance, with price action susceptible to bearish takeover.
However, its overall trajectory and position above 50 means the bulls have the upper hand, a sentiment that could be enhanced if Tuesday’s flows also come in positive for ETH ETFs.
Traders looking to take long positions for the Ethereum price, therefore, should wait for a decisive candlestick close above the $3,150 resistance level. This can be confirmed by a successful retest of that level, where price breaks above it, retests it, and manages to still hold above it on the 4-hour timeframe.
Such a move could see the Ethereum price target the $3,223 to $3,296 supply zone next, a bearish order block that stands in Ethereum’s path toward reclaiming its peak prices.
Ethereum (ETH) Price Performance. Source: TradingViewConversely, with the Ethereum price confronting immediate resistance at $3,150, the volume profiles show significant opposing forces at current price levels around $3,134. This is evident in the large nodes of bullish (green horizontal bars) and bearish (red) volume profiles on the chart.
However, with more bearish nodes and bullish nodes, the Ethereum price could pull back, which would be accentuated by negative ETH ETF flows on Tuesday.
In the event of a correction, the bullish thesis for the Ethereum price would be invalidated if the support due to the ascending trendline breaks, which could see ETH retest the $3,058 levels last seen on January 9.
Bitcoin’s price has shown strength over the past 48 hours and is now trading in the mid-$90,000s after days of consolidating around $90,000. Technical analyst Jackis presented a fair assessment of potential paths for Bitcoin’s next significant rise in the context of near-term consolidation and attempted breakouts above $95,000, outlining distinct scenarios for both bulls and bears.
Both Outlooks Have A Case, But Price Has To Confirm Bitcoin is now back to trading above $95,000 after a 3.1% increase in the past 24 hours. Price action in the past 24 hours alone shows that the outlook might be bullish. However, as it stands, Bitcoin’s price action has reached a point where traders should let the chart tell them what’s next.
According to a technical analysis from a crypto analyst known as Jackis on the social media platform X, arguments alone are not enough here because there are both good bullish & bearish arguments out there for Bitcoin. In his words, he has watched similar-looking price action resolve in opposite directions across different cycles.
Source: Chart from Jackis on X The chart below shows how Bitcoin price action is currently forming an ascending triangle pattern on the 8-hour candlestick timeframe chart. However, examples show how this same formation led to an upward reversal for Bitcoin in the past and then also a bearish continuation for Ethereum in the past.
Based on his read, he currently sees more reasons for downward continuation, and until the market proves otherwise, the active trend is bearish. Both bullish and bearish outlooks have a case, but price action has to confirm.
Bullish And Bearish Scenarios For Bitcoin Once price breaks out in either direction, the follow-through can be fast, which means being stubborn on the wrong side can be costly.
On the bullish side, Jackis highlighted that a breakout toward $96,000 is the kind of move that would confirm a bullish continuation. He added that a push through $96,000 at this point could open the path to $107,000 or higher.
On the other hand, Jackis’ bearish trigger is tied to the rising support line. Price action can look constructive right up until the trendline snaps, and that’s the point where downside continuation becomes the higher-probability route in this framework.
If Bitcoin were to lose the lower trendline of the ascending trend, then it would likely drift back to the April 24 lows. The April lows refer to how Bitcoin rejected above $106,100 in January 2025 and entered into a multi-month correction that eventually bottomed at a low around $76,000.
This means that a clean breakdown could change the conversation away from range chop in the mid-$90,000s to a reset.
BTC trading at $95,023 on the 1D chart | Source: BTCUSDT on Tradingview.com Featured image from Pixabay, chart from Tradingview.com
Crypto looks like it is shrinking. Prices are down from the highs, headlines have cooled and the social hype machine that once amplified every move is much quieter. To a casual observer, it can feel as if the industry is fading out instead of breaking through.
Zoom out, and the picture changes. What looks like stagnation is better described as consolidation. Crypto is working through the same kind of reset that other asset classes have faced after long speculative climbs. These periods are uncomfortable, but they often set the stage for the next wave of utility-driven growth.
Four-Year Run Was Always Going To End In ResetThe last major crypto cycle effectively ran from 2021 through 2025. For roughly four years, and especially over the last three, prices consistently moved higher, new tokens launched constantly and capital poured into anything that offered exposure to upside. That surge was not abnormal. It was the crypto version of previous speculative waves.
After the late 1990s, the Nasdaq crashed and investors spent years separating real internet businesses from companies that only had a website and a ticker. After the housing bubble burst in 2008, credit markets went through a painful period of deleveraging and stricter underwriting. In both cases, a long period of rapid expansion was followed by a quieter period in which fundamentals finally caught up.
Crypto is now in its own quieter period. Volumes are lower, funding is more selective, and the most extreme forms of speculation have lost their grip on the narrative. That does not mean the industry is dying. It means the terms of competition have changed. Projects are no longer judged only on potential. They are being judged on whether they solve real problems.
...
From Memecoins To Markets With Clear JobsYou can see this shift most clearly by looking at what continues to gain traction. The projects that are still growing in the current environment are those that have a clear job inside an existing workflow.
Tokenized securities and other real-world assets are one example. These products do not cater to speculative investors; they are pragmatic tools that reduce operational friction for banks and asset managers by enabling faster settlement, easier collateral movements and better reporting. Interest in tokenized securities hasn’t faltered amid crypto’s recent market downturn, and investment is likely to remain steady across market cycles.
Stablecoins sit in a similar category. They address a basic but stubborn problem: slow and expensive digital payments. Dollar-pegged assets are now used for cross-border payouts, B2B settlement and increasingly for payroll. They move value quickly and predictably, and they interface well with exchanges and on-chain applications. Like tokenized securities, they are unlikely to be perturbed by a broader market downturn.
These products stand in sharp contrast to the last cycle’s darlings, such as memecoins and NFTs, which offered huge speculative upside but near-zero utility.
DATs Are Being Forced To Grow UpDigital Asset Treasuries, many of which were rushed to market in a speculative frenzy, are going through the same kind of adjustment.
During the market highs of mid-2025, a common assumption was that rising token prices would cover strategic mistakes. Treasury strategies leaned heavily on appreciation and light balance sheet discipline. That approach worked in a bull market environment, but it does not work in a flat or choppy one.
The DATs that look viable today are changing course. They are diversifying into complementary business lines that produce actual revenue. They are establishing cash reserves so they can keep operating if token prices stagnate. In cases where their stock or token trades far below market net asset value, they are buying back shares. These are pragmatic choices that extend the runway and protect holders.
DATs are starting to behave more like operating companies and less like perpetual trades. Over time, that will produce higher-quality offerings and fewer balance sheets that are one market shock away from distress.
Some Crypto Projects Are Still Quietly BoomingWhile attention and funding have largely shifted away from speculative-use cases, there are still some crypto projects that have identified a clear market head and are forging ahead at full speed.
Prediction markets are one of them. Platforms that allow users to trade on elections, macro events or sports have seen significant growth in volume. In an era of extreme political instability and division, prediction markets have emerged as a popular way to force vague opinions into concrete, tradable odds.
Decentralized exchanges are another. DEX volumes have continued to grow and, in many pairs, now compete directly with centralized exchanges. Users who care about transparency and self-custody are choosing to trade on systems where they can see the rules in code and hold their own assets. Consolidation is giving DEX teams time to harden their infrastructure and improve the basic user experience.
On the institutional side, demand for slower-moving products continues to build. ETPs and ETFs tied to digital assets are being launched and refined. Regulated products for IRAs and other retirement accounts are moving through approval processes. Licensing regimes and fiat on ramps are expanding so that banks, payment companies and fintechs can plug into crypto without improvising compliance.
Shakeout Is Painful And NecessaryConsolidation also means that some parts of the ecosystem are shrinking, and that is healthy.
Speculative products that relied solely on leverage and momentum are seeing lower interest. Many NFT projects have faded. Memecoin volumes have cooled. The novelty premium has worn off.
System as a Service (SaaS) tools with no clear product market fit beyond bull market activity are finding that their customer base evaporates when trading slows. Token launches that exist only because “everything has a token” are not getting sustained demand.
The net effect is a reallocation of capital and talent toward projects that show signs of durability. This phase gives the industry a chance to focus on work that will matter when the next wave of attention arrives. That includes opening more institutional doors through ETPs, ETFs, regulated products, IRAs and asset management channels. It also includes rethinking user experience so that everyday people can use crypto-powered products without needing to understand private keys or gas fees.
The quiet spell will not last forever. What comes next will depend on what gets built now.
Spencer Yang is a Managing Partner of BlockSpaceForce (BSF), a crypto-native advisory firm building and backing the inevitable convergence of crypto and public markets.
The recent heated debate in the cryptocurrency world about whether quantum computers will end Bitcoin has divided experts.
While some analysts see this as an imminent risk, engineers argue that the threat is exaggerated and that solutions are already in place.
Quantum computing, one of the biggest theoretical threats to Bitcoin’s technological infrastructure, has once again become a hot topic in financial markets. The steps taken by tech giants like Google, IBM, and Microsoft in quantum hardware have raised the question: “Can the mathematical protection of Bitcoin wallets be broken?”
On one side of the debate are figures like Nick Carter, who claims that quantum computers could solve Bitcoin’s Elliptic Curve Cryptography (ECDSA) as early as 2028. According to Carter, the developers’ slow pace in this area worries institutional investors (BlackRock, Fidelity, etc.), and this could lead to institutional intervention in the network in the future.
On the other hand, experts like Blockstream CEO Adam Back and software engineer Brandon Black argue that the threat is at least 20 to 40 years away. Black claims that today’s most advanced quantum machines have about 1,000 “noisy physical qubits,” but it would take approximately 13 million error-free logical qubits to crack a Bitcoin key in a single day.
One of the most critical details highlighted in the report is that not every Bitcoin wallet carries the same level of risk. According to Brandon Black, if a user adheres to “address purification” rules and hasn’t publicly shared their public key on the network, quantum computers cannot directly attack that wallet.
Those at greatest risk are legacy addresses, like Satoshi Nakamoto’s old wallets, whose public keys are publicly visible on the blockchain.
Experts, reminding us that Bitcoin is not a static structure, point out that the network has successfully undergone major updates before (SegWit, Taproot). Quantum-resistant address formats (such as BIP 360) are already being discussed within the community.
Furthermore, the fact that institutions with massive Bitcoin reserves, such as Michael Saylor’s company MicroStrategy, are launching quantum security programs demonstrates just how strong the financial incentives are for protecting the network.
*This is not investment advice.
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Stock Market Warning SignsThe stock market has seen some concerning signs over the past few weeks that are worth paying attention to.
So far, over the past two months:
Consumer Staples have outperformed the S&P 500 by 14% Utilities have outperformed the S&P 500 by 11% These two sectors are what is called "defensive", meaning it is what the equity market rotates into ahead of recessions. Now, in the larger context, both of these are still in a larger downtrend against the broader market, but these recent signals in the equity market aren't the only warning shot.
We've seen AI-driven fears permeate all varieties of US equities. Everything from cybersecurity stocks to wealth management, to SaaS- every day, we're seeing new concerns being expressed.
There has been violent rotation underneath the surface of the equity market for months now- rotation that is not visible if you look at the major indices. That rotation, out of the high-growth tech (that had been driving the stock market higher for 3 years now), and into defensive sectors like consumer staples, utilities, and healthcare.
Here's the striking, strong negative correlation that defensives/tech has to Bitcoin:
Bond Market Warning SignsNot only are we seeing signs of defensive positioning in the equity market, but we are also seeing concerning signals in the bond market.
February saw a significant decline in US Treasury yields:
-2yr US Treasury yield (largely a bet on Fed policy) has declined by 14bps
-10yr US Treasury yield has declined by 29bps
-30yr US Treasury yield has declined by 25bps
If you see economic growth deteriorating, bonds are the first thing capital will flock to. Imagine a world where AI has caused 5% deflation rate – everything is getting 5% cheaper each year.
In this hypothetical, a 10yr US treasury bond yielding 4% would give you a +9% real return. This is why bonds will get purchased (therefore driving yields down), ahead of an economic slowdown.
Not only that, but Friday saw a red hot PPI print, and bonds still got bid, with the 10yr treasury yield a whopping 6bps. Inflation came in hot, and bonds got bought.
As if that wasn't significant enough, we know that US Treasuries had ceased to benefit from the ‘safe haven bid' during risk-off moments. The past 12+ months have shown this surprising reversal of decades of typical capital flows. Instead of the dollar and bonds getting bought, they'd get sold.
Well, on Friday we saw silver, oil, and gold soaring on geopolitical concerns. So, over the past 12 months, we'd expect that Treasuries would probably be getting sold, but the opposite was true.
Hot inflation print AND geopolitical risk, and bonds were bid.
Bitcoin = UntestedGoing off the data that we do have, it appears bitcoin's "high-beta tech stock" correlation might cause it to sell off significantly.
BUT:
To put it simply, they'd have to print an enormous amount of dollars.
So, while the initial move in bitcoin could be lower (even significantly so), the next move would likely take bitcoin to mid-six digits, at least.
Thanks for reading! Catch you in the next one! For more updates throughout the week, follow @WOLF_Bitcoin
Benzinga Disclaimer: This article is from an unpaid external contributor. It does not represent Benzinga’s reporting and has not been edited for content or accuracy.
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TLDRRedemption Gates Hit Major FundsSoftware Loans Draw ScrutinyGet 3 Free Stock Ebooks Major investment firms including BlackRock, Morgan Stanley, and Cliffwater have restricted investor redemptions in early 2026 PIK (Paid in Kind) interest arrangements — where companies pile on debt rather than making cash payments — have surged from 5% to 11% of the private credit market between 2022 and 2025 Loans converted mid-term from cash payments to PIK terms (“bad PIK”) jumped from 2% to 6.4% of total private credit by late 2025 Major business development corporations (BDCs) including Ares Capital and Blue Owl are trading significantly below their net asset values JPMorgan has marked down certain software-sector private credit positions, citing potential AI-driven disruption risks The private credit industry, which ballooned to $2 trillion as traditional banks retreated from mid-sized business lending, is facing its first major stress test. Several prominent asset management firms have implemented withdrawal restrictions, while a critical distress indicator — Paid in Kind interest — has reached concerning levels.
40% of private credit borrowers have negative free cash flow.
True default rate near 5%.
Morgan Stanley honored only 5% of redemption requests.
This isn't a footnote. It's the next crisis hiding in plain sight. pic.twitter.com/XQcQrTw6Fq
— Michael A. Gayed, CFA (@leadlagreport) March 13, 2026
PIK interest represents a payment arrangement where struggling borrowers defer cash interest payments by adding them to their principal balance. Lenders record this deferred interest as revenue despite receiving no actual cash flow.
⚠️US banks have nearly ~$300 billion in exposure to private credit:
Wells Fargo leads with $59.7 billion in loans to private credit funds, BDCs, and CLOs.
BDCs are publicly traded funds that give retail investors exposure to private lending, while CLOs are bundles of leveraged… pic.twitter.com/kbnR8EKQOI
— Global Markets Investor (@GlobalMktObserv) March 13, 2026
Lincoln International, responsible for valuing approximately one-third of U.S. private credit portfolios, reports that PIK-structured loans have more than doubled from 5% in early 2022 to 11% by the end of 2025. Even more troubling is the explosion of “bad PIK” arrangements — existing cash-pay loans converted to payment-in-kind terms — which skyrocketed from 2% to 6.4% during the same timeframe.
“This is certainly a sign of stress,” said Ron Kahn, who runs Lincoln International’s valuation unit.
Redemption Gates Hit Major Funds BlackRock’s HLEND fund imposed withdrawal limitations for the first time after redemption requests exceeded its 5% quarterly threshold. The fund attracted $840 million in fresh capital during Q1 2026, falling significantly short of the $1.2 billion investors attempted to withdraw. Morgan Stanley capped redemptions at one of its private credit vehicles to roughly half of investor requests, following withdrawal demands reaching 10.9%. Cliffwater similarly restricted redemptions in its $33 billion fund to 7%, despite investor requests totaling 14%.
These investment vehicles were promoted to individual investors as offering “semi-liquid” terms — allowing quarterly redemptions subject to established caps. When redemption demand outpaces available liquidity, these protective mechanisms activate, potentially trapping investor capital for extended periods exceeding twelve months.
At Ares Capital, approximately 15% of net investment income last year originated from PIK arrangements. Blue Owl Capital disclosed that PIK represented 16% of net investment income throughout 2025. Blue Owl’s shares have declined to below 80% of stated net asset value. Blue Owl Technology Finance, with concentrated exposure to software companies, has plummeted below 60% of book value.
Software Loans Draw Scrutiny JPMorgan has written down valuations on select private credit exposures to software enterprises, expressing concerns regarding artificial intelligence’s potential to undermine existing business models. The institution has not disclosed specific affected portfolio companies.
PIMCO president Christian Stracke attributed the emerging crisis to inadequate underwriting standards and insufficient transparency throughout the industry. PIMCO projects default rates in the mid-single digits persisting for multiple years, potentially compressing average private credit returns from approximately 10% down to the 6–8% range.
Blackstone president Jonathan Gray called current concerns “a ton of noise.” KKR’s CFO Robert Lewin acknowledged pressure at the firm’s publicly traded fund but said most of KKR’s capital sits outside that structure.
Companies utilizing bad PIK arrangements have experienced leverage ratios climbing to 76% of total assets by year-end 2025, a substantial increase from 40% in 2022, per Lincoln International data.
While Ethereum (ETH) and XRP Exchange-Traded Funds (ETFs) ended March in negative territory, Bitcoin (BTC) funds recorded their best monthly performance of the year despite weak market sentiment and geopolitical tensions.
Bitcoin ETFs End Negative Spell Bitcoin ended the first quarter of 2026 by breaking out of a five-month negative streak, closing with a positive performance for the first time since September 2025. The flagship crypto has been in a downtrend over the past six months, retracing over 50% from its October all-time high of $126,000.
As its price closes the month in green, US spot BTC-based ETFs have also ended a multi-month negative spell on Tuesday. According to SoSoValue data, the funds pulled in $1.32 billion in March, registering their first monthly gain in 2026.
Bitcoin ETFs end five-month outflows streak. Source: SoSoValue The category has been registering outflows since November, with cumulative outflows of around $6.3 billion until February. Nate Geraci, co-founder of the ETF Institute, previously highlighted that spot Bitcoin ETF investors have “largely displayed diamond hands” despite the ongoing market correction and negative sentiment.
As reported by NewsBTC, Geraci argued that the funds’ cumulative outflows since the October 10 crash were insignificant compared to the $56 billion in cumulative total net inflows the category has experienced since its January 2024 debut.
Despite the positive monthly close, BTC ETFs ended a four-week inflow streak after investors pulled out $296.18 million from the investment products. Additionally, the funds ended Q1 on a negative note, as March inflows couldn’t offset the $1.81 billion redemptions from January and February.
Therefore, spot Bitcoin ETFs closed the first quarter of 2026 with $496 million in outflows, their second-worst quarterly performance after Q4 2025’s $1.15 billion cumulative outflows.
Solana Leads Altcoin ETFs Performance Similar to Bitcoin, Solana (SOL) ETFs closed March on a positive note and led altcoin-based funds, with inflows worth $45.44 million. This performance brought SOL investment products’ quarterly inflows to $213.1 million.
Notably, the category has not seen monthly outflows since its launch in October 2025, printing six consecutive months of inflows. Following this performance, Solana ETFs are near the $1 billion milestone, currently having cumulative net inflows of $979.3 million.
Nonetheless, Ethereum funds tell a different story, closing the month with $46 million in outflows. Unlike Bitcoin, the second-largest cryptocurrency extended its negative streak to five months, recording total outflows worth $3.21 billion since November.
In addition, ETH investment products saw $769 million outflows in Q1. CoinShares recent report noted that Ethereum led all assets in outflows last week, shedding over $200 million for the second straight week, which may signal that institutional demand for the second-largest cryptocurrency has been slowing.
Meanwhile, XRP funds recorded their first monthly outflows after investors pulled $31.3 million from the ETFs. The category has recorded a remarkable performance since launching in November, with over $1.24 billion in inflows in the first four months.
It’s worth noting that despite the March setback, XRP ETFs saw positive net flows worth $42.52 million during the first quarter of 2026, only behind Solana funds.
Bitcoin trades at $68,523 on the one-week chart. Source: BTCCUSDT on TradingView Featured Image from Unsplash.com, Chart from TradingView.com
Cover image via U.Today Disclaimer: The opinions expressed by our writers are their own and do not represent the views of U.Today. The financial and market information provided on U.Today is intended for informational purposes only. U.Today is not liable for any financial losses incurred while trading cryptocurrencies. Conduct your own research by contacting financial experts before making any investment decisions. We believe that all content is accurate as of the date of publication, but certain offers mentioned may no longer be available.
An important ideological and operational shift is beginning to take shape in the Strategy ecosystem as Michael Saylor, whose name for years was synonymous with the "HODL forever" slogan, has now pivoted to a more pragmatic formula he made public via a new X post - "Buy more Bitcoin than you sell".
This U-turn marks a transition toward a more flexible capital management model amid Saylor's market-shaking statement that Strategy may begin selling BTC to pay dividends on its preferred shares made during the Q1 2026 earnings call earlier this week.
Buy more bitcoin than you sell.
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— Michael Saylor (@saylor) May 7, 2026 Strategy's "money printer" hits the reality of $100 parityNot only did the company report a net loss of $12.54 billion, or $38.25 per share, due to the decline in the value of its Bitcoin holdings, but the situation is also being complicated by a temporary breakdown in the company's "money printer" - STRC. Since April 15, the preferred share issuance mechanism has stopped funding Bitcoin purchases after the securities fell below their $100 parity value.
To avoid halting expansion in April, Saylor had to pivot toward selling common MSTR shares through the company's ATM program. However, there were no Bitcoin purchases at all over the past week.
Adding fuel to the fire, Strategy CEO Phong Le published 6 new capital management principles, with the final point officially permitting the company to "sell BTC when it is beneficial for the business".
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Despite the rhetorical shift, Saylor continues his media offensive, calling the Strategy model "the most important chart in finance". He positions the company as a machine that converts digital capital (BTC) into digital credit (STRC) and equity capital (MSTR), and it seems like the strategy is no longer about buying forever, but about using Bitcoin efficiently to support the company's credit and equity structure.
Annualized asset performance since Strategy adopted a Bitcoin standard on Aug. 10, 2020, Source: StrategyIn this context, the "Buy more than you sell" formula appears to be an attempt to preserve Saylor's status as Bitcoin's leading optimist while simultaneously reassuring regulators and shareholders expecting dividends during a period of financial turbulence.
Switzerland-based dYdX Foundation, the supporting entity behind the decentralized crypto exchange dYdX, has requested $30 million from the project’s decentralized autonomous organization (DAO). The requested funds are intended to be allocated for the next three years. This proposal aims to bolster the development and expansion of dYdX into what the Foundation envisions as “the exchange layer of the internet.”
Foundation’s vision and budget breakdown The dYdX Foundation, which provides crucial support in legal, research and development, marketing, and technical assistance for the dYdX crypto trading project, has put forth an ambitious vision for the future.
Their ultimate goal is to transform dYdX into a pivotal component of the digital exchange landscape. If approved by the DAO’s tokenholders, the funding request would allocate 4% of the current treasury to the Foundation over three years.
Payroll: Approximately 50% of the requested budget would be dedicated to payroll expenses. This funding would ensure the continued growth of the dYdX team, enabling them to drive innovation and maintain the platform’s operational excellence.
Marketing and Growth: A significant portion, 18%, of the funds would be channeled towards marketing and growth initiatives. This allocation underscores the Foundation’s commitment to expanding the user base and enhancing the platform’s reach.
Legal Disbursements: Legal matters account for 14% of the proposed budget. This includes expenses related to compliance, regulatory issues, and any necessary legal support.
Contractors: Around 5.5% of the requested funds would be allocated to contractors, who play a crucial role in the project’s development and operation.
Commitment to responsible money management In a forum post addressing the proposal, the dYdX Foundation emphasized its commitment to responsible financial management, highlighting its focus on “capital preservation” strategies to mitigate risk. To this end, the Foundation diversified its holdings from USDC to treasury bonds in response to the stablecoin de-pegging during a banking crisis in March. While transitioning away from cryptocurrency assets, this move contributed to reduced risk exposure and yielded substantial returns.
Additionally, the Foundation plans to diversify some of the requested funds into fiat currency and stablecoins. Furthermore, they intend to invest in expanding their staking operations, which currently generate staking yield on 2.5 million dYdX tokens.
The injection of $30 million into their operational budget would comprise 10.5 million DYDX tokens and extend their financial runway beyond 18 months.
Future financial planning and reporting The dYdX Foundation is keen on maintaining transparency and accountability. The Foundation plans to provide regular financial updates to its stakeholders in lieu of annual budget votes.
This includes issuing an annual report and a semi-annual report detailing the utilization of the funds. Their next budget request is anticipated to come into consideration when they approach the 18-month runway mark, likely in mid to late 2026 based on current projections.
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The stablecoin issued by decentralized platform Abracadabra.money (MIM), suffered a flash crash to $0.76 after reports of a $6.5 million exploit.
Blockchain security firm PeckShield published initial details of the exploit at 11:35 UTC Tuesday, adding that the attacker was funded from Tornado Cash, a sanctioned privacy protocol.
Cetrik said that "early indications point to a rounding error being the root cause."
MIM developers said that the Abracadabra DAO will be buying back the stablecoin, which is designed to trade at $1, from the market to preserve the peg. It was trading around $0.94 at press time, per CoinMarketCap.
"We are aware of an exploit involving certain cauldrons on Ethereum," MIM wrote on X. "Our engineering team is triaging and investigating the situation. To the best of its Ability, the DAO treasury will be buying back MIM from the market to then burn. More updates are coming."
The stablecoin also fluctuated in 2022 during the collapse of FTX, as a third of MIM's collateral was in FTT, FTX's native token. As FTT crumbled, MIM fell to $0.95 before trading back to parity.
The dYdX Foundation, which supports decentralized crypto exchange dYdX, has requested a budget of $30 million from the decentralized autonomous organization (DAO) managing the project.
dYdX Foundation Requests a Budget of 30 Million Dollars The funds, planned to be used over the next three years, aim to provide an operational work area at least until mid-2026.
Headquartered in Switzerland, the dYdX Foundation offers legal, R&D, marketing and technical support to the crypto trading project.
The project involves a perpetual futures contract exchange and a private blockchain in the Cosmos and Ethereum ecosystems. The aim of the foundation is to make dYdX the exchange layer of the internet.
While the budget request is significant, if approved by dYdX token holders, the DAO's voters, it would give the Foundation 4% of the DAO's current treasury.
The three-year duration of the budget will also exempt the dYdX Foundation from submitting annual budgets for review and approval, a common practice among other DAOs and foundations.
Approximately half of the requested budget was allocated to payroll, while 18% was allocated to marketing and growth, 14% to various legal payments, and 5.5% to contractors, among other expenses.
The foundation plans to diversify some of the funds raised into fiat and stablecoins and invest in expanding its staking operation, which currently generates staking returns on 2.5 million dYdX tokens.
The $30 million budget, consisting of 10.5 million DYDX tokens, will extend the Foundation's operating period beyond 18 months.
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After almost two years, the DAO Maker has shown a little spike, surging around 150% within a month. As the market situation is improving from this bearish trend a few days ago, many cryptocurrencies have succeeded in making a comeback, including DAO Maker.
Bitcoin price has recovered from the fall to the $61K mark, whereas Ethereum bailed on falling below $3200. The crypto market is still trying to make a complete recovery.
Before that, Let’s discuss what’s happening with DAO Maker. Is it making a comeback?
DAO Maker Price Analysis DAO Maker price has surged more than 50% earlier, bringing the top hike of the day to $2.8484. It is currently trading at $2.41 with a market cap of $357,706,249 after a 34% hike. The trading volume of DAO Maker has surged to $70,399,28, with an insane surge of 505% in just a day.
Despite the price jump, the token is still 71% away from its all-time high of $8.75, achieved three years ago. There is a long way for DAO Maker to reach anywhere near the ATH, but if the market situation continues to push the token ahead, there is a chance of that happening. The current DAO Maker price is at the best it has been in the two years. The last time it surged to this high was in May 2022, when the trading volume was around $7.15 Million.
Top Reason Why DAO Maker Price Surged DAO Maker is known to provide technology and solutions to crypto projects to gain funding and support from venture capitalists and the community. DAO Maker price has recently surged and continuing the spike because of the upcoming fair launch of the meme token PUNDU.
Also Read: Altcoins to Buy Today Under $1 with 100% Potentials
DAO Maker is launching PUNDU, with the sales going live on the 23rd of March. The hard cap of the token on Solana is 33,333 SOL, whereas, for DAO Maker, it is set at $3.1 Million. Out of the total supply, 40% of tokens are for distribution among liquidity providers, 40% will be utilized in presale, 5% for airdrops, and the last 5% for centralized exchange holding.
Conclusion DAO Maker price is continuously surging, and the possibility of a better hike is upon us. With the current 150% spike, many have looked to buy the crypto token, leading to a price surge. If the market’s bullish nature recovers to what it was a week or two ago, there are chances for DAO Maker to go above and beyond the all-time high value.
The market is trying to recover from the recent bearish attack, which caused all the major cryptocurrencies and meme coins to lose their price surge over the months. Let’s see how the market will continue and how all these cryptocurrencies will perform.
Pundu, the first meme coin to undergo a fair launch on DAO Maker, has raised over $100 million in just 37 hours.
Of particular significance is the unprecedented $37.6 million raise achieved on Solana, establishing a milestone as the largest on-chain raise in the network’s history. Concurrently, a $60 million influx was observed on the Binance Smart Chain (BSC), solidifying Pundu’s status with the second-largest raise ever witnessed on BSC.
$PUNDU Final Deposits: $97.6M ????
On BSC: $60M deposits ($51M $USDT, 8M $DAO )
On Solana: $37,6M (212,404 $SOL)
Starting refunds: BE PATIENT
Solana can only send SOL to 20 wallets per TX and we have over 20k contributions ????
It will take time for our team to process all pic.twitter.com/2GVIwyPnCZ
— DAO Maker (@daomaker) March 23, 2024
Pundu’s journey to this milestone has been nothing short of extraordinary. Born out of a vision to redefine the meme coin narrative, Pundu is the brainchild of visionary developers led by 0xWaynee, with invaluable insights from esteemed advisors, including experts from Gotbit and renowned meme-focused KOLs.
Unlike traditional meme coins, Pundu distinguishes itself as the first meme coin to undergo a fair launch on DAO Maker, embracing transparency and community-driven principles from its inception. As the saying goes, “Pandas are sloths, just better,” encapsulating Pundu’s ethos of combining the playful spirit of meme culture with a commitment to legitimacy and innovation.
At its core, Pundu is more than just a token; it’s a bold experiment to challenge conventional notions of value and legitimacy in the crypto space. With an approximate Liquidity Pool of $15 million USD at launch, Pundu aims to set a new standard for fair launch projects, demonstrating that the true essence of crypto extends beyond mere speculation to meaningful utility and community engagement.
As we celebrate this monumental achievement, Pundu invites the entire Web3 community to join us on this journey of exploration and innovation. With a focus on transparency, innovation, and community engagement, Pundu seeks to demonstrate the true potential of decentralized finance in driving positive change.
Contact: DAO Maker Email: [email protected] Disclaimer: This is a Press Release provided by a third party who is responsible for the content. Please conduct your own research before taking any action based on the content.
Oliver Dale
Editor-in-Chief of Blockonomi and founder of Kooc Media, A UK-Based Online Media Company. Believer in Open-Source Software, Blockchain Technology & a Free and Fair Internet for all. His writing has been quoted by Nasdaq, Dow Jones, Investopedia, The New Yorker, Forbes, Techcrunch & More. Contact [email protected]
In an age where data is the new oil, monetizing this invaluable resource in a secure and efficient manner has been a challenge that many have attempted to tackle, yet few have mastered.
Enter PrivateAI, the world’s pioneering Data-as-a-Service Platform, poised to revolutionize the way data owners and producers showcase and monetize their complex datasets and intellectual property.
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Leveraging the power of knowledge graphs, PrivateAI provides a secure environment for this exchange, ensuring that data’s value can be fully realized while protecting its integrity.
In an exciting development for both data enthusiasts and the crypto community, PrivateAI has announced its launch on DAO Maker through a Strong Holder Offering (SHO), marking a significant milestone in data monetization strategies.
Join the Revolution: SHO Details To further democratize access and participation in its ecosystem, PrivateAI has announced its Strong Holder Offering (SHO) details on DAOmaker, making it an opportune moment for investors and enthusiasts to be part of this revolutionary platform.
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PrivateAI SHO Launch announcement by DAO Maker on X. A Strong Foundation Built on Proven Leadership The driving force behind PrivateAI is a seasoned team of innovators and leaders, comprising former co-founders and executives from blockchain stalwarts like Fantom ($FTM), Syscoin ($SYS), Dogecoin ($DOGE), and SingularityNET ($AGIX).
This rich heritage of blockchain excellence is a testament to PrivateAI’s robust foundation and its ambitious vision.
Notably, the platform’s innovative approach and potential have already garnered recognition from tech giant Microsoft, securing its place within the prestigious Microsoft Founders Hub.
PrivateAI is pioneering the intersection of AI and decentralized science (DeSci) by offering a platform where data owners and producers can securely upload, showcase, and monetize their data. Democratizing Data Monetization PrivateAI is not just about leveraging technology; it’s about democratizing access to data monetization.
By enabling data owners and producers to showcase their complex datasets and IP in a secure environment, PrivateAI is opening new avenues for data monetization that were previously untapped or underutilized.
This is particularly significant in an era where data is increasingly recognized as a valuable asset but often remains locked away due to security concerns or lack of the right platform.
For a firsthand experience of how PrivateAI is set to transform the landscape of decentralized science and data monetization, check out their live demo. It’s an insightful peek into the future of AI-driven research and collaboration.
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Final Thoughts on the Launch of PrivateAI on DAO Maker As PrivateAI embarks on this journey to revolutionize data monetization through its unique DaaS platform, it sets a new standard in the industry.
By harnessing the power of knowledge graphs in a secure environment, PrivateAI is not just transforming data monetization; it’s reshaping the future of how data is valued and exchanged in the digital age. With a leadership team that boasts a proven track record in the blockchain, PrivateAI is well-positioned to lead this charge.
Maker bulls exert significant effort to counter the dampening sentiment in the cryptocurrency market, resulting in a 5% price increase for MKR to $2,850.
Bitcoin and most altcoins plunged into negative territory after Monday’s strong performance, which saw Bitcoin climb to $70,000.
A 3% decline in total market capitalization to $2.5 trillion underscores the growing selling pressure.
Maker Begins LitePSM Upgrade Rollout Maker Governance has voted to approve the implementation of LitePSM, a high-efficiency upgrade to the PSM.
PSM is a tool to maintain DAI’s peg to the US dollar. It allows users to swap DAI for supported stablecoins like USDC at a 1:1 ratio. This arbitrage mechanism helps stabilize DAI’s price by preventing significant deviations from its target value.
Maker Governance has approved the latest Executive Vote.
→ https://t.co/un2Ux3Cv8b
The changes described below will be available for execution within the Maker Protocol on July 30th, at 20:29 UTC.
🖥️ LITE-PSM-USDC-A Phase 1 Actions
The first phase of the migration from… pic.twitter.com/gSGVv1Ma8X
— Sky (@SkyEcosystem) July 29, 2024
According to Dewiz, a DeFi Engineering Services provider, PSM came to life “during DeFi Summer to tame $ Dai’s rollercoaster.” Critics faulted the system for hogging Dai supply amid massive spikes in gas.
The introduction of LitePSM will see users of the stablecoin Dai slash gas fees, access smoother Dai swaps, and yield more. LitePSM’s main objectives are maintaining the Dai peg the US dollar by minimizing volatility, providing liquidity, and managing the stablecoin’s systemic risk.
Dai is a stablecoin in the MKR ecosystem. It is pegged to the US dollar, allowing investors to access DeFi platforms to facilitate swaps and asset trading. Dai boasts a $5.3 market cap and is the 19th largest cryptocurrency.
MKR Price Targets $3,000 Following Breakout After MKR price topped out at $3,118 last week, it assumed a downtrend between two slanting trend lines, forming a falling wedge pattern.
With every step taken downwards, volume decreased, suggesting that sellers lost their grip and allowed the bulls to turn things around.
Support at $2,600 allowed fresh liquidity collection, arming MKR price for a strong trend reversal. Traders increased exposure to MKR longs upon breaching the upper trend line, with the stop loss slightly below it.
A 10% increase in price is anticipated, bringing MKR near the $3,000 level. A golden cross pattern formed with the 20-day EMA crossing above the 50-day EMA affirms the ongoing uptrend. The MACD buy signal is another bullish factor when trading MKR this week.
MKR price chart | Tradingview MKR needs to find support above the previous day’s open of $2,825; otherwise, sliding under it could spook traders, who may move quickly to close positions and shift to short the token.
Such an occurrence may accelerate the correction toward the initial support at $2,700 with the possibility of an extended decline to $2,600.
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To further diversify its crypto investment portfolio, asset manager and ETF issuer Grayscale has unveiled the launch of the Grayscale MakerDAO Trust. This latest addition to Grayscale’s product suite allows investors to gain exposure to MKR, the utility and governance token underpinning the Ethereum-based MakerDAO ecosystem.
Grayscale Expands Crypto Portfolio MakerDAO is an autonomous organization operating a decentralized finance (DeFi) protocol, providing users access to a permissionless, open stablecoin system and various other on-chain financial services.
According to Tuesday’s announcement by the firm, through the Grayscale MakerDAO Trust, investors can now participate in the growth and development of the protocol’s MKR ecosystem.
“As demand for crypto exposure continues to grow, Grayscale is committed to expanding our suite of products and providing innovative investment opportunities,” said Rayhaneh Sharif-Askary, Grayscale’s Head of Product & Research.
“The launch of the Grayscale MakerDAO Trust allows investors to experience the growth of the entire MakerDAO ecosystem, aiming to remove DeFi’s dependency on traditional finance infrastructure by providing a permissionless, decentralized, and open stablecoin system,” Sharif-Askary also stated.
The new trust functions similarly to Grayscale’s other single-asset investment vehicles, with the fund solely invested in MKR tokens. The trust is now open for daily subscription by eligible individual and institutional accredited investors, providing them a convenient way to gain exposure to the MakerDAO protocol.
This announcement comes on the heels of Grayscale’s recent launches of the Grayscale Bittensor Trust, dedicated to the TAO token supporting the Bittensor Protocol, and the Grayscale Sui Trust, focused on the SUI token underpinning the Sui Layer 1 blockchain.
MKR Price Action Grayscale’s news sparked a spike in the MKR token, which hit an 8-month low of $1.7 on August 5 amid the broader market crash and global economic uncertainties that led to an increased sell-off.
MKR is trading at $2.10, up nearly 6% in the last few hours, coupled with a 16% increase in trading volume in the 24-hour time frame, amounting to $124 million, indicating investor interest in the token’s prospects.
MKR must consolidate above the $2.06 level to further capitalize on this latest surge, as it has acted as a resistance wall for the token over the past few days before Tuesday’s bullish news on the MKR/USDT daily chart. This would be key for MKR’s future advances and the potential to surpass its next resistance barrier at $2.16.
However, if there is a resurgence of demand and buying pressure for the token and the broader market, which can also contribute to MKR’s 10% surge last week, it would position MakerDAO’s native token to tackle its next resistance at $2.31, $2.42 and $2.73 on its way to reclaiming the $3 mark.
The daily chart shows MKR’s price surge on Tuesday. Source: MKRUSDT on TradingView.com Featured image from DALL-E, chart from TradingView.com
In the evolving landscape of blockchain technology, Decentralized Autonomous Organizations (DAOs) have emerged as innovative entities that operate without centralized control. DAOs leverage smart contracts on blockchain networks, enabling members to collaborate and govern collectively. This article provides a comprehensive overview of DAOs, their structure, benefits, challenges, and future implications.
What Are DAOs? A DAO is essentially an organization represented by rules encoded as a computer program, which is transparent, controlled by organization members, and not influenced by a central authority. The core idea behind a DAO is to create a decentralized framework where participants can make decisions collaboratively and autonomously.
It typically operate on blockchain networks, most commonly Ethereum, where smart contracts facilitate and automate governance processes.
DAOs vs. Traditional Organizations DAOs operate on decentralized governance through blockchain technology. It enables collective decision-making without a central authority. Meanwhile, traditional organizations rely on hierarchical structures with defined leadership and centralized control. This fundamental difference fosters transparency and inclusivity in DAOs, contrasting with the often opaque and top-down decision-making processes of conventional entities.
Traditional Organisations Vs DAOs What Are DAOs Used For? Members of a DAO usually hold governance tokens, which provide them with voting rights on various proposals, such as funding decisions or protocol changes. This token-based governance structure enables a democratic decision-making process, where the power is distributed among all members rather than concentrated in a central figure or board.
The structure of a DAO can vary significantly, but most of them consist of the following components:
1. Smart Contracts: These are self-executing contracts with the terms of the agreement directly written into code. They automate processes and enforce rules without the need for intermediaries.
2. Governance Tokens: Tokens that grant holders the ability to participate in governance decisions. The number of tokens held often correlates with the weight of a member’s vote.
3. Community: The members who participate in the DAO, contributing to decision-making, funding proposals, and governance activities.
4. Treasury: The DAO holds financial resources, usually in cryptocurrencies, which members allocate based on collective decisions.
Benefits of DAOs DAOs offer several advantages that enhance collaboration and innovation in various sectors:
1. Decentralization: One of the primary benefits of DAOs is the elimination of central authorities, allowing for distributed decision-making and reducing the risk of corruption or mismanagement.
2. Transparency: All transactions and decisions made within a DAO are recorded on the blockchain, ensuring transparency and accountability. Members can track how funds are spent and how decisions are made.
3. Global Participation: It allow individuals from around the world to participate in governance, breaking down geographical barriers. This inclusivity promotes diverse perspectives and ideas, enhancing creativity and innovation.
4. Incentivization: Members can be rewarded for their contributions through governance tokens or other incentives. This creates a motivation for active participation, fostering a strong sense of community and ownership.
Challenges Despite their potential, DAOs encounter significant challenges that they must address for continued growth and success.
1. Regulatory Uncertainty: The legal status of DAOs remains ambiguous in many jurisdictions, creating challenges for compliance and regulatory oversight. This uncertainty can hinder mainstream adoption and may expose members to legal risks.
2. Security Vulnerabilities: Smart contracts, while innovative, are susceptible to bugs and vulnerabilities that can lead to significant financial losses. The infamous DAO hack in 2016 highlighted these risks, prompting the need for rigorous security audits and best practices.
3. Governance Issues: While decentralization is a key benefit, it can also lead to governance challenges, such as decision-making paralysis or the emergence of power dynamics that mimic traditional hierarchies. Striking a balance between effective governance and decentralization is crucial.
4. Community Engagement: Maintaining active participation within it can be challenging, as members may become disengaged or overwhelmed by the governance process. Effective communication and incentive structures are essential to keep members involved.
The Future The future of DAOs is promising, with potential applications spanning various industries, including finance, supply chain, entertainment, and social impact. As blockchain technology matures, DAOs have the potential to revolutionize the structure and governance of organizations, paving the way for more inclusive and participatory models.
Emerging trends such as the integration of decentralized finance (DeFi) and non-fungible tokens (NFTs) within DAO frameworks may further enhance their capabilities and appeal. Additionally, as regulatory clarity improves, it could gain legitimacy and attract more participants.
In conclusion, DAOs represent a groundbreaking shift in organizational governance, offering a decentralized and transparent approach to collaboration. While challenges remain, the continued development and adoption of it could redefine the way we think about organizations and decision-making in the digital age.
Sky’s move to revert to its previous brand name Maker was rejected in a governance vote dominated by four whales.
In a Nov. 8 announcement, Sky said its governance proposal to rebrand back to Maker was rejected it will continue using the Sky brand as “the primary backend protocol of the ecosystem.”
According to data from the Sky governance forum, only 18.5% of votes, backed by a single whale pledging 14,800 MKR tokens, supported the change to recenter the Maker brand with a limited refresh, while a little over 2.2% of users voted in favor of fully restoring the “Maker” brand to its original form.
Notably, just four other whales controlled the majority of the voting power, contributing a combined 62,452 MKR tokens — or 98% of the total votes — in favor of retaining the Sky brand.
Sky governance voting weight | Source: Sky governance One community member poked fun at the vote results, suggesting that influence within the “community” is concentrated among a few.
According to Sky, the result aligns with the original plan to transition from MKR to SKY as the core brand of the ecosystem.
The push to rebrand back to Maker came just a month after the Sky rebranding in August which replaced Maker’s governance token MKR with SKY, while the protocol’s stablecoin DAI was renamed to Sky Dollar with the USDS ticker.
The Nov. 4 proposal responded to community concerns and confusion stemming from the rebranding, as Maker co-founder Rune Christensen noted that many users were unclear about the utility of the Sky token.
Previously, some community members had also raised concerns about USDS’s decentralization due to a potential freeze function that would allow its issuer to freeze the token.
On the other hand, those supporting the Sky branding have urged the community to focus on the protocol’s Endgame roadmap proposed by Christensen in 2022 and the broader vision behind the rebrand.
People totally misunderstand the Maker > Sky rebrand and why it is a big success
2 most important things were achieved
1) USDS can now be blacklisted so Maker/Sky can't be seen as a shady mixer in the eyes of regulators
2) Sky probably got an extra $1B+ of liquidity. How?… pic.twitter.com/Es8mSHmXZd
— DMH | Devcon (@DeFi_Made_Here) October 16, 2024 In a Nov. 4 post, Framework Ventures co-founder Vance Spencer said that Sky’s rebrand will support the protocol’s growth with new offerings that include plans to launch decentralized and regulatory-compliant stablecoins, integrate with platforms like Aave, and roll out new features on Solana and Ethereum Layer 2.
Spencer added that the project’s timing and limited exchange support have hindered a full-scale launch but expressed confidence in its long-term vision as he believes “there is a ton of value to be unearthed by following the Endgame roadmap.”
Nevertheless, the community seems to have responded positively to the news as both MKR and SKY were up over 3% when writing.
Flayer and NFTX are experiencing a remarkable surge in price as both meme coins are up over 234% at last check Saturday.
NFTX, the decentralized protocol aiming to create liquidity for non-fungible tokens (NFTs), has drawn attention across the crypto and NFT spaces.
And while not much is known about Flayer, we do know that today marks the first that the coin is listed on LBank, a global cryptocurrency exchange.
Flay At the time of writing, Flayer (FLAY) was up about 240%.
Source: CoinGecko FLAY supports protocols built by Flayer Labs, a technology company that specializes in blockchain, decentralized finance (DeFi), and Web3 development.
The Flaunch protocol is a meme coin launcher based on Base architecture and supported by Uniswap V4, the latest version of the decentralized exchange (DEX) protocol.
Notably, FLAY holders can flip a fee switch to receive 10% of the transaction fee for the protocol. Holders also have access to the FLAY on-chain governance, according to LBank.
NFTX The primary driver behind NFTX’s (NFTX) price surge appears to be an uptick in the non-fungible token (NFT) market.
In recent weeks, the NFT market has seen a resurgence in demand for high-profile collections, and NFTX’s unique offering—allowing users to pool and trade tokenized versions of NFTs—has gained increased adoption.
The recent market movement has attracted both institutional and retail investors looking for ways to gain exposure to NFTs without needing to purchase individual tokens, which can often be illiquid or prohibitively expensive.
Here’s how NFTX is currently trading:
Source:CoinGecko Additionally, NFTX has made strides in expanding its DeFi partnerships, integrating its liquidity pools with major platforms like Uniswap and Sushiswap, further enhancing its utility.
NFTX’s price jump also aligns with the broader trend of institutional players moving into the NFT space. With large players like hedge funds and VC firms beginning to take NFTs more seriously, the market for NFT liquidity is seemingly maturing.
A portion of the struggling crypto custodian Qredo has been placed into administration after its partial acquisition by 10T Holdings and 1RoundTable Partners, growth equity firms led by veteran investor Dan Tapiero.
10T and 1RT said Friday they have acquired "substantial" assets of Qredo through their new U.K.-based entity, Fusion Laboratories. The acquisition comes after the two firms led Qredo's bridge financing round and reorganized the company late last year, they said — confirming The Block's previous reporting.
As part of the deal, 10T and 1RT will relaunch Qredo's acquired assets through Fusion Labs — focusing solely on Fusionchain, an upgraded version of Qredo Network on Cosmos. The QRDO token will move to the Cosmos ecosystem with Fusionchain's launch.
"The token migration will increase utility under revamped tokenomics," said 10T and 1RT. "Additional information regarding the launch of Fusionchain, the token migration, tokenomics, and strategic plans for Fusion Labs will be communicated in the near future."
Qredo placed into administration Qredo appointed Ian James Corfield and Philip David Reynolds of FRP Advisory as its joint administrators on Feb. 1.
Company administration is a process aimed at rescuing struggling business segments or maximizing returns for creditors before dissolution. An insolvency practitioner takes control of the company during administration.
Qredo's joint administrators will communicate with the company's suppliers, creditors, and employees regarding the next steps in the coming days, said 10T and 1RT.
Meanwhile, the Qredo custody platform will remain "fully operational" until further notice, ensuring customers remain unaffected by these changes for the time being, according to a Qredo spokesperson.
Qredo fires more people Qredo has cut 44 more jobs, halted salary payments, and transferred the remaining 23 employees to Fusion Labs, a source with knowledge of the matter told The Block.
A Fusion Labs spokesperson confirmed that 23 people from Qredo have been brought to Fusion Labs. However, they did not comment on the number of employees laid off from Qredo.
"As the Company is no longer in a position to make payments for services rendered by you under your contracts, you should regard your service as terminated effective immediately," Qredo CEO Duncan Payne-Shelley wrote to the team in an email today that was obtained by The Block.
"Please be advised any amounts outstanding to you at the date of the Administrators appointment will be a claim against the company. The Administrators will be writing to you and all other known creditors of the company with details of how to submit your claim in due course," Payne-Shelley added, who has now moved to Fusion Labs as CFO.
Payne-Shelley did not immediately respond to The Block's request for comment.
Fusion Labs has a new CEO and board Randy Little, a partner of 10T and 1RT, has been appointed as the new CEO of Fusion Labs.
Little, alongside Payne-Shelley, moved Qredo's chief technology officer, Jason Losh, its chief cryptographer, Kealan McCusker, and some other Qredo employees to Fusion Labs.
Some of Qredo's previous employees — including former chief operating officer Josh Goodbody and former vice president of marketing and operations Luis Vaello — moved to the QRDO Foundation, as The Block reported previously. Fusion Labs and Warden Protocol will both play important roles in the QRDO ecosystem, which is led by the QRDO Foundation, Vaello told The Block.
"The QRDO Foundation is thrilled about Qredo Ltd's acquisition by Fusion Labs, effectively dispelling any prior concerns in the community," Vaello said. "This week's announcement of Warden Protocol and Fusionchain's continued support for the QRDO token highlights an optimistic future. We are entering an exciting era of growth and innovation for the QRDO community," he added.
Tapiero will now serve as the chairman of Fusion's board, joined by Little, Tad Smith, a 10T and 1RT partner, and two undisclosed independent directors.
The Block extensively reported on Qredo's problems and 10T's rescue efforts for months. Today's news officially confirms the company's issues and reveals the roles of 10T and 1RT in its rescue.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
Qredo is transitioning to Fusionchain due to its acquisition by Dan Tapiero’s firms, 10T and 1RoundTable Partners. This move is a defining moment for the company and its users, as it comes with improved functionality and centering on self-custody in blockchain technology.
Qredo’s Acquisition and Relaunch The investment made by Tapiero’s investment entities through Fusion Laboratories, a newly established U.K.-based venture, has absorbed large amounts of assets from Qredo. This progression comes after a phase of financial struggles for Qredo, which led to some business divisions being placed under administration.
The Fusionchain will come into being from this transition, highlighting an upgraded version of the Qredo Network that is now part of the Cosmos ecosystem.
Focus on Fusionchain and Cosmos Integration By implementing Cosmos as a framework, Fusionchain is designed to revolutionize blockchain technology, moving conventional ledger applications forward in scalability and interoperability.
The integration points to a shift in strategic approach towards a more solid and multi-purpose platform. As a result, users can benefit from the increased utility of tokens and join a network of blockchain applications. There is excitement among the stakeholders as the announcement paves the way for more details on the launch and strategic direction to be released in due course.
Moreover, the QRDO token has migrated to the Cosmos network, which can lead to increased utility and integration of this token in a wider blockchain environment. This migration represents a technical change and reorientation that seeks to enhance the valuation of the token, providing holders with better functionality and increased involvement in a more interdependent blockchain.
Continuity and Transition However, despite the organizational restructuring, Qredo guarantees users uninterrupted service. The custodial platform continues to operate, preserving customer assets and prioritizing the integrity of ongoing transactions. This commitment to service continuity shows the company’s devotion to its users, even during transformational changes.
Consequently, the transformation has unavoidably resulted in workforce reorganization, affecting Qredo and the transfer of selected employees to Fusion Laboratories. This action is consistent with the global strategy of business orientation towards Fusionchain and the general goals of the investment firms belonging to Tapiero.
The new team at Fusion Labs is ready to provide a direction for developing and accepting Fusionchain, opening a new era in the QRDO community.
As a result of the guidance of Randy Little, the newly appointed CEO of Fusion Labs, and a new leadership-driven board with Tapiero as chairman, the leadership is determined to see the direction in which Fusion Labs will move towards realizing its vision. The strategic focus on Fusionchain and its integration with the Cosmos ecosystem highlights the commitment to innovation and user empowerment in digital asset custodial services.
Read Also: Binance Raises Compliance Budget by 35%, Prepares for Zhao’s Fate
In a bold move set to reshape the landscape of digital asset custody services, Qredo is undergoing a significant transformation, spearheaded by the visionary investor Dan Tapiero. The transformative phase marks the birth of a new platform, Fusionchain, emerging from the assets of Qredo after its partial acquisition.
As the digital asset custody domain braces for the innovative change, Fusionchain is poised to set new benchmarks while ensuring a seamless transition for Qredo’s existing clientele.
Qredo’s evolution and the birth of Fusionchain The partial acquisition of Qredo by a firm associated with Dan Tapiero is paving the way for the inception of Fusionchain. To infuse new vigor into the digital asset custody service, Fusionchain is anticipated to bring forth a fresh perspective while drawing from Qredo’s established strengths. Despite these significant shifts, Qredo’s operational framework will maintain its continuity, reassuring its current customer base that its services will remain unaffected during the transition.
In an intriguing move, the QRDO token, an integral part of Qredo’s ecosystem, is set to migrate to the Cosmos blockchain coinciding with the launch of Fusionchain. The strategic migration underscores the collaborative spirit of the blockchain community and highlights Cosmos’ robust capabilities, especially considering its successful Inter-Blockchain Communication Protocol bridge that seamlessly connects multiple blockchains.
Strategic reorganization and visionary leadership The acquisition and subsequent transformation of Qredo into Fusionchain are not merely a change of ownership but a strategic reorganization aimed at unlocking new potential in the digital asset custody space. The reorganization, led by the influential investment firms 10T Holdings and 1RoundTable Partners, reflects a deep commitment to nurturing late-stage crypto firms and propelling them toward greater heights.
As part of the strategic shift, former Qredo CEO Duncan Payne-Shelly is set to take on the role of chief financial officer at Fusion Labs, ensuring a continuity of leadership and a wealth of experience in steering the new venture. Moreover, Qredo’s talented engineering team is set to join forces with Fusionchain, promising an amalgamation of expertise and innovation.
Navigating the future: Challenges and opportunities While the path ahead for Fusionchain is laden with challenges and opportunities alike, the strategic foresight of Dan Tapiero and the collective strength of 10T Holdings and 1RoundTable Partners instill confidence in the bold venture. Tapiero’s acknowledgment of the unexpected yet crucial role in the operational aspects of their portfolio companies underscores the dynamic nature of the digital asset landscape.
The shared leadership between the two investment companies and their diverse portfolio, which includes prominent players in the crypto and Web3 space, positions Fusionchain favorably in the evolving digital asset custody domain. As Tapiero, a seasoned entrepreneur known for his ventures like Gold Bullion International, leads the transformation, the digital asset community watches with anticipation, ready to embrace the new era marked by Fusionchain’s emergence.
Conclusion The transformation of Qredo into Fusionchain marks a significant evolution in digital asset custody, led by investor Dan Tapiero. The strategic move promises to blend innovation with continuity, setting a new standard for the industry while ensuring stability for existing customers. With seasoned leadership and a focus on technological advancement, Fusionchain is poised to redefine the future of digital asset management.
