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News Stories

Crypto Twitter (X) Rundown

• Internet Capital Markets [Ryan Watkins] The launch of a $70 billion memecoin by the U.S. President on Solana signals a paradigm shift—if politicians can issue memecoins, so can celebrities, communities, and startups, potentially reshaping the concept of SocialFi. Trump’s memecoin is not just a speculative asset but a strategic move to bootstrap utility, mirroring historical attempts by leaders to create their own money. The SocialFi false start in 2024 may give way to a full-fledged breakout in 2025, as projects like Abstract, Tribe, and CloutMe lay the groundwork for monetizing attention markets. Meanwhile, businesses and startups may soon enter this space, turning blockchains—especially Solana—into a global, open-access financial market. If this trend continues, the current wave of memecoins may be just the first step toward a new internet capital market. The recent launches of VINE from Vine co-founder Rus Yusupov and JELLY JELLY from a Venmo co-founder and notable investor Sam Lessin are examples of this trend.

• Crypto Crime Season is Over [Vance Spencer] The era of unchecked crypto crime appears to be coming to a close, according to industry sentiment. Three key factors support this shift: (1) diminishing returns on crypto-related fraud, as the market now favors utility-driven projects over blatant exploits; (2) impending market structure regulation, which will require stricter disclosures for token launches, making unregulated schemes increasingly difficult; and (3) the rise of legitimate on-chain businesses, offering asymmetric rewards to builders focused on sustainable, transparent projects. While memecoins are unlikely to disappear, greater scrutiny on ownership transparency, MEV exploitation, and liquidity manipulation is expected to clean up the space, ensuring retail investors are no longer disadvantaged by predatory trading tactics. Vine/Jelly first of many startup tokens - "startups" are a euphemism for utility tokens vs memes.

• Why I quit in 2022 [Andre Cronje] Yearn Finance creator Andre Cronje revealed that regulatory pressure from the SEC forced him to step away from public DeFi development in 2022. Despite structuring projects like Yearn and Keep3r to avoid securities violations—raising no funds, selling no tokens, and earning no profits—Cronje received multiple SEC inquiries that drained two years of his time, money, and energy. The investigation shifted from fundraising concerns to classifying Yearn vaults as "investment vehicles," despite Cronje receiving no financial benefit. Faced with endless legal battles, he chose to step back, though he continued building in DeFi privately. Now, with the SEC's evolving stance, he has shared his experience publicly, reaffirming his belief in decentralized finance and signaling his return with new DeFi primitives.

  His new project, a fully integrated DeFi ecosystem that builds upon his previous work while aligning with a regulated U.S. framework. Learning from past missteps with Yearn, Keep3r, and Solidly, he designed a system that incorporates perpetual liquidity, lending markets, leveraged trading, and on-chain options pricing. His AMM will dynamically adjust to volatility, optimize forex trading, and enable spot leverage similar to perpetual contracts. Governance and token emissions will follow his ve(3,3) model, with fees automatically funding insurance and buybacks. Cronje has incorporated in the U.S. and secured regulatory approval, marking a shift from his previous decentralized launches. With direct fiat on-ramps and institutional-grade features, the project is open to accredited U.S. investors, signaling a return to public leadership in DeFi under a new, compliant structure.

News Stories

• DeepSeek AI Shakes Markets, Bitcoin Drops 6% Amid Broader Sell-Off [CoinTelegraph] Bitcoin fell 6% on Monday as U.S. markets reacted to the debut of DeepSeek, a low-cost, open-source Chinese AI model. DeepSeek’s unexpected efficiency spooked tech investors, leading to sharp losses for Nvidia, Apple, and other major companies, while energy stocks dropped as expectations for AI-driven power consumption shifted. Crypto followed suit, with BTC and ETH sliding alongside traditional risk assets. While some analysts see this as proof of Bitcoin’s increasing correlation with equities, others argue that the quick stabilization signals resilience, with institutional crypto adoption unlikely to be affected by cheaper AI models.
  

• Bitcoin rallies to $104.7K after Fed FOMC ‘nothing burger’ lines up with market expectations [CoinTelegraph] Bitcoin rallied to ~$105,000 after the Federal Reserve kept interest rates unchanged at 4.25%-4.5%, aligning with market expectations. Fed Chair Jerome Powell acknowledged inflation remains "somewhat elevated" but took a wait-and-see approach, offering no hawkish surprises. The move was largely driven by futures liquidations, with $15 million in short positions wiped out. Analysts labeled the FOMC meeting a "nothing burger," as Powell struck a neutral tone, giving bulls an opportunity to squeeze aggressive shorts.

  Federal Reserve Chair Jerome Powell also called on Congress to establish a stronger regulatory framework for crypto, stating that banks can serve crypto customers as long as they manage associated risks. Powell emphasized that the Fed is not against innovation and has worked closely with Congress on financial oversight for crypto.
  

• Pudgy Penguins Solana Token, Ethereum NFTs Plunge Alongside Abstract Network Launch [Decrypt] Pudgy Penguins NFTs and PENGU, the Solana-based ecosystem token, have sharply declined following the launch of Abstract, a consumer-focused Ethereum Layer-2 network by their parent company. PENGU dropped 24% in 24 hours and 49% in the past month, hitting $0.0173, its lowest level since December. Meanwhile, Pudgy Penguins NFTs on Ethereum fell nearly 20% in a day and 39% over the week to 11.94 ETH. Analysts attribute the selloff to unmet expectations for a token generation event, instead receiving only XP multipliers on Abstract. The decline has triggered NFT liquidations on Blur’s Blend platform, further intensifying the price drop. Pudgy Penguins has reassured holders that additional rewards and integrations for PENGU are forthcoming, but for now, NFT and token holders can claim XP multipliers through the Abstract Global Wallet.

• Venice Launches VVV Token on Ethereum’s Base Network, Airdrops 50 Million Tokens to Users and AI Projects [CoinMarketCap] Venice, a privacy-focused AI platform on Base founded by Erik Voorhees, has launched its VVV token earlier this week, distributing 50 million tokens to users and AI projects. The token powers Venice’s decentralized AI model, allowing users to stake VVV for API access without traditional banking reliance. VVV surged to a $1 billion market cap before crashing 50% as insider trading concerns rattled investors. Reports revealed that two Aerodrome Finance contributors allegedly bought VVV tokens before public announcements, turning $50,000 into $1 million within an hour. In response to community backlash, Aerodrome suspended the individuals and launched an internal investigation. The controversy dampened sentiment despite Venice AI’s appeal as a private, uncensored AI platform and its rare first-day listing on Coinbase

• Trump’s Crypto Project Bought MOVE Tokens as DOGE News Leaked [Decrypt] The Movement blockchain’s MOVE token surged 20% Tuesday after reports suggested its developers were in talks with Elon Musk’s Department of Government Efficiency (DOGE) about blockchain integration. A wallet linked to Trump’s World Liberty Finance project purchased $2 million in MOVE just prior to the announcement, fueling speculation of insider buying. Movement’s co-founder denied knowledge of the discussions or the token purchase, while blockchain data showed the transactions occurred just before DBNews leaked the potential DOGE collaboration. MOVE remains a minor part of World Liberty Financial’s $391.8 million portfolio, which is largely composed of ETH, DeFi tokens, and stablecoins.,

• SEC Approves Bitwise Spot Bitcoin and Ethereum ETF [CoinDesk] The U.S. Securities and Exchange Commission (SEC) has granted accelerated approval for Bitwise’s Bitcoin and Ethereum ETF, allowing investors to gain exposure to both assets in a single regulated product. This follows recent approvals of similar offerings from Hashdex and Franklin Templeton. Bitwise's ETF, launched in partnership with the New York Stock Exchange, is weighted by market capitalization and joins a growing wave of crypto-related ETF applications. The approval reflects a shift in regulatory sentiment under the new Trump administration, with firms now filing for ETFs tied to memecoins like Dogecoin (DOGE) and other assets such as Solana (SOL).

• Ross Ulbricht-Linked Wallets Lose $12M in Liquidity Mishap on Raydium [The Block] Crypto wallets tied to recently pardoned Silk Road founder Ross Ulbricht reportedly lost $12 million while attempting to provide liquidity for a Pump.fun-created token on Raydium, according to Arkham Intelligence. The mishap occurred when Ulbricht—or someone with access to his wallets—set the liquidity pool at the wrong price, allowing a MEV bot to extract $1.5 million worth of tokens initially and another $10.5 million in a second attempt. The bot later sold the tokens for over $600,000, crashing the price by 90%. Despite the losses, Ulbricht’s wallet still holds 10% of the token supply.

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