A startling claim has resurfaced across the crypto community that all Ethereum private keys are technically “public.” Analyst Laxo highlighted a website called Keys.lol, which generates every possible private key. In theory, anyone could find your key and access your assets. However, the practical reality makes this almost impossible. 

Ethereum has so many possible addresses—2¹⁶⁰ in total—that the chance of randomly finding someone’s working key is unimaginably tiny. So, even though your key technically exists among all possible combinations, actually finding it is basically impossible.

you private keys are leaked!

..well, technically, yes. there's a website called keyslol and it stores all private keys that ever been (or could be) generated.

yes, all your private keys are stored there. and ANYONE could find it and steal all your assets.

or could not? the… pic.twitter.com/D72nycKSHl

— Laxo (@0xLaxo) February 2, 2026

Keys.lol does not actually save every private key in a database. Instead, it creates pages with 128 keys at a time for the entire key range. This smart method lets people check balances or browse keys without needing an impossible amount of storage space. 

“Yes, your private key is on this website too, but don’t worry, nobody will ever find it,” the site assured. Even if you open a random page, the chance of finding an active wallet is tiny. So, the site shows just how huge Ethereum’s keyspace is, without posing any danger.

Understanding Ethereum key generation

Ethereum addresses come from private keys through a specific process. First, a private key is just a random 256-bit number. Then, this key creates a 512-bit public key using a type of math called elliptic curve multiplication. Finally, the Ethereum address comes from the last 20 bytes of this public key and is what controls the account. 

Security expert Vic Genin explained, “Even though a lot of people call the address the public key, it’s actually not the case in Ethereum. There is a separate public key that acts as a middleman.

Private keys need to be generated using strong random numbers. If a key is weak or predictable, it can be at risk. The infamous Blockchain Bandit took advantage of this; as cited by Chainalysis, it targeted weak Ethereum private keys in 2015 and 2016. Using a method called “Ethercombing,” the Bandit emptied over 10,000 wallets and stole about 51,000 Ether. This shows that the risk comes from poor randomness, not from the fact that all possible keys exist.

Public keys in transactions

Ethereum also lets you recover a public key from a transaction, but only in a limited way. Each signed transaction has r, s, and v values, which can be used to rebuild the public key without needing the private key. However, this procedure doesn’t put accounts at risk, because finding the private key is still impossible. 

Additionally, the chance of randomly creating a private key that already exists is about 1 in 1.15×10⁷⁷—far more than grains of sand across countless planets. Hence, even trying hard to guess a key is purely theoretical, not practical.

Risks beyond mathematics

Besides the extremely low chances of cryptographic collisions, losing or mismanaging private keys is a real danger. Fireblocks’ 2021 custody dispute shows this. The company lost two key shares needed to withdraw Ethereum, making over 38,000 staked ETH inaccessible. 

In the same way, losing money due to improper storage is more serious than these hypothetical mathematical problems. The user should be concerned with properly securing keys in their hardware wallets or personal wallets, rather than the abstract probabilities.

Websites like Keys.lol and PrivateKeys.pw can show if a wallet has money, had money before, or was never used. While this highlights potential risks, actually guessing someone’s active wallet by brute force is basically impossible.

Also Read: Crypto Users on MacOS Targeted in Sneaky Token Vesting Malware Scam

Binance faced a sudden withdrawal halt on Tuesday, reigniting fears of an FTX-style crisis among crypto traders. The world’s largest exchange attributed the disruption to technical difficulties, reassuring users that withdrawals resumed promptly.  

Binance first posted on X, stating, “We are aware of some technical difficulties affecting withdrawals on the platform. Our team is already working on a fix, and services will resume as soon as possible.” Hours later, the exchange confirmed the issue was resolved: “The issue has been identified and fixed. Withdrawals have resumed and are being processed now.”

The issue has been identified and fixed.

Withdrawals have resumed and are being processed now.

— Binance (@binance) February 3, 2026

The disruption came amid volatile markets, with Bitcoin dipping below $76,000 over the weekend and currently trading at $78,793 as per CoinMarketCap data. CoinGlass data shows 104,205 traders liquidated in the past 24 hours, totaling $320.09 million. 

Following the sudden withdrawal halt, users feared a repeat of past collapses like FTX. However, the exchange emphasized the outage stemmed from technical issues, not solvency problems. 

Market impact and user sentiment

Apart from technical problems, recent market swings made traders even more nervous. In just three days, nearly $3 billion worth of crypto positions were liquidated as digital assets fell along with stocks and metals. 

The Binance outage is also similar to the halt in the withdrawal of USDC in the past, which took place in December 2022. Today, after this halt, the crypto community on the X started spamming the reply section with ‘Hyperliquid’ in response to Binance’s post, a typical slang used to promote the shift toward decentralized trading on Hyperliquid, a non-custodial crypto exchange. 

Some even jokingly said ‘FTX 2.0,’ echoing the high-profile crashing of the FTX exchange in 2022.

Binance’s financial health and SAFU strategy

In the 2022 market wide turmoil, Binance cleared rumors about insufficient reserves by explaining their model of being debt-free and capital-separated. The exchange further clarified that their users’ assets are fully supported and that there are no external investments in their assets. 

Regarding stablecoins, Binance further clarified that during the pause in USDC withdrawals, other stablecoins like BUSD, USDT, USDP, and TUSD are fully withdrawable at a 1:1 ratio.

More recently, Binance moved its $1 billion Secure Asset Fund for Users (SAFU) completely into Bitcoin. They did this gradually over 30 days to protect the fund during market swings. 

Binance said Bitcoin is a key long-term asset to keep user funds safe. Since 2018, the SAFU fund has recovered over $1.09 billion in mistakenly sent assets, including $48 million from 38,648 cases just in 2025.

Also Read: DOJ Emails Reveal Jeffrey Epstein Invested $3M in Coinbase in 2014

Blockchain security firm SlowMist has warned that a new phishing attack is putting macOS users at high risk. In a latest post, the firm shared that Chainbase Lab has detected a phishing email disguised as an “audit/compliance confirmation.” The emails lured recipients to reveal sensitive information, including system credentials. 

Chainbase also revealed the malicious samples with SlowMist for deeper analysis. Both the firms confirmed that the campaign uses multi-stage, fileless malware specifically targeting Mac devices. 

🚨 Threat Intelligence | Analysis of Token Vesting Phishing Poisoning 🚨

Recently, @ChainbaseHQ detected a phishing email campaign disguised as “audit/compliance confirmation” and shared the sanitized samples with the SlowMist team. We jointly analyzed the campaign and confirmed… pic.twitter.com/0em6y2M1k6

— SlowMist (@SlowMist_Team) February 3, 2026

The attackers initially ask users to “confirm the company’s legal English name,” then share a follow up email titled “FY2025 External Audit” or “Token Vesting Confirmation — deadline.” These messages contain Word or PDF attachments. 

However, these attachments are not regular documents, but rather disguised AppleScript malware. Opening these attachments allows the victims to unknowingly install malware that can allow hackers to steal important information from them. As such, this malware campaign is a mix of social engineering, technical deception, and sophisticated memory-resident malware.

How the malware works on macOS

The malware file is given the name “Confirmation_Token_Vesting.docx.scpt” and is designed to appear as a legitimate document file due to its use of a double extension. Once executed, the malware displays fake progress bars to resemble a system update or repair process. 

At the same time, it will display legitimate-looking password prompt pop-ups to steal system credentials. “When the user enters a password and clicks ‘OK,’ the script invokes the dscl command to verify whether the password is correct,” SlowMist said.

The malware also tries to sneak past Mac’s built-in privacy protections. It quietly gives itself access to your files, camera, screen, and keyboard. On top of that, it installs a hidden program that lets hackers control your Mac and run additional harmful code. The backdoor connects to a remote server to collect information about your Mac and run more harmful programs. Hackers hide their tracks using temporary websites like sevrrhst[.]com.

Connection to broader crypto phishing trends

This is not the first time SlowMist has alerted cryptocurrency users. In January 2026, the company raised awareness regarding a MetaMask scam involving false two-factor authentication messages. The victims were redirected to false sites, leading them to leak their seed phrases. 

🚨 New #metamask phishing scam alert

Attackers are impersonating a “2FA security verification” flow, redirecting users via look-alike domains to fake security warnings with countdown timers and “authenticity checks.”

The final step asks for your wallet recovery phrase — once… pic.twitter.com/3bX9U1wZbs

— SlowMist (@SlowMist_Team) January 5, 2026

In December 2025, a phishing attack occurred on a Solana digital wallet, causing users to sign transactions and resulting in the loss of over $3 million worth of cryptocurrency. The hackers changed the ownership of the digital wallet, giving themselves complete access without the owner’s knowledge. SlowMist explained, “You thought you just connected your crypto wallet to a website, but in reality, you gave all your money to a stranger.”

Besides going after wallets, SlowMist also warned earlier about AI-powered phishing. Hackers tampered with AI search results to show fake imToken wallet links. People who clicked these links risked malware or phishing attacks. Hence, the firm emphasized checking all URLs carefully and only downloading wallets from official sources.

🚨SlowMist Security Alert🚨

Beware of AI Pollution! We tested mainstream AI assistants for @imTokenOfficial's official website — some returned phishing links!🎣

✅The official website of imToken is: https://t.co/LnehWwXDE0

⚠️AI boosts productivity, but many treat it as a… pic.twitter.com/m3FQ9TkbbG

— SlowMist (@SlowMist_Team) April 3, 2025

This Mac phishing attack shows how clever hackers are becoming. People should be careful with unexpected emails, check attachments before opening, and make sure links are real.

Also Read: Korea’s FSS Launches VISTA to Combat Crypto Price Rigging

The blockchain-based enterprise solution provider, Ripple, has secured full approval for its Electronic Money Institution (EMI) license in Luxembourg. The Commission de Surveillance du Secteur Financier (CSSF) granted Ripple complete authorization after the company fulfilled all regulatory conditions. 

This approval comes just weeks after Ripple received preliminary approval. With the approval, Ripple now has a stronger presence in Europe’s financial landscape. The full EMI license allows it to offer fully regulated payment services and issue electronic money across the European Union. 

Cassie Craddock, Managing Director for UK & Europe at Ripple, said, “Securing our full EMI license in the EU is a transformative milestone that reinforces Ripple’s presence at the heart of European finance.”

She added that this approval lets Ripple expand its blockchain services across Europe more effectively. As a result, Ripple can make digital payments faster and help traditional businesses adopt blockchain technology more easily.

Expansion across Europe and global licensing

Ripple’s new EU license adds to its growing regulatory progress. Last month, its UK branch was approved as an authorized Electronic Money Institution and crypto firm under the FCA’s anti-money laundering rules. This means Ripple can issue e-money and run regulated payment services across the UK. Moreover, it lets Ripple Payments, the company’s platform for cross-border transfers, grow in Europe, making international payments faster and more transparent for banks and payment providers.

Around the world, Ripple now has more than 75 regulatory licenses, making it one of the most heavily licensed crypto companies. Very few competitors have this level of approval. These licenses let Ripple grow its services for businesses while staying fully compliant with regulations. They also give banks and other institutions more confidence to use Ripple’s blockchain technology to modernize older financial systems.

Regulatory context and compliance requirements

In Luxembourg, a company has to be authorized by the CSSF if it wants to provide payment services or issue electronic money. Ripple has just obtained a new license, which means it complies with all the requirements of the Payment Services Law. 

Although some payment services are exempt from some of the requirements, the license obtained by Ripple proves that it complies with all the reporting requirements. With a license in the EU and another in the UK, Ripple can now operate in Europe.

In the past, Ripple has had issues with regulators, such as a long legal case with the US Securities and Exchange Commission. The case involved disagreements over the sale of XRP until both parties agreed to drop their appeals in August 2025. In 2023, a court ruled in favor of Ripple, with Judge Torres stating that XRP is not a security when sold to the public. This gives the company more credibility in Europe and across the world, thanks to its licenses.

Following the approval, Ripples’ native token XRP’s current price sits at $1.62, with a 24-hour trading volume exceeding $5.48 billion as per CoinMarketCap. This reflects ongoing market engagement despite a minor 1% dip.

Also Read: Japan’s Largest Wealth Manager Cuts Crypto Exposure Amid Market Turmoil

Ethereum co-founder Vitalik Buterin is pushing a radical shift in on-chain governance that could redefine decentralized decision-making. In a detailed post on X, he outlined a two-layer approach designed to combine accountability with pluralistic preference-setting. 

Vitalik was replying to an X post by MilliΞ who said Vitalik’s creator platform idea may look complex, but it points in the right direction. He argued that social platforms favor popularity over quality, creating an opportunity for alternative systems that reward meaningful content creation instead.

I actually don't think it's complicated.

IMO the future of onchain mechanism design is mostly going to fit into one pattern:

[something that looks like a prediction market] -> [something that looks like a capture-resistant, non-financialized preference-setting gadget]

In other… https://t.co/VutSyEI8Fd

— vitalik.eth (@VitalikButerin) February 2, 2026

According to Buterin, current DAO setups don’t really solve political or social coordination issues and often let big token holders call the shots. His idea is a two-layer system: one layer works like a prediction market to keep people accountable, while the second layer protects different opinions and personal motivation.

He suggests that the first layer needs to be fully open, where everyone is allowed to join, winning or losing money based on their decisions. This ensures that the system is transparent and accountable. For the second layer, diversity and anonymity are important, reducing the influence of token holders and the risks of collusion.

“Votes here should be anonymous, ideally MACI’d to reduce risk of collusion,” he wrote. He emphasized that this system separates execution from preference-setting, creating a clearer, more resilient governance structure.

Rethinking DAOs

Buterin’s post comes at a time when many people are frustrated with token-based DAOs. However, nowadays most of these DAOs behave like a shared wallet in which a few large holders are in control. Therefore, they do not really live up to the original concept of a DAO. This concept is about collective decision-making for better resource management.

He said, “We need DAOs,” stressing that improved versions are essential for Ethereum’s future. Buterin believes new DAOs should focus on practical tools like oracles, dispute resolution, and managing shared resources, instead of relying on broad token-based voting.

Oracles, for instance, give important real-world data to DeFi apps, stablecoins, and prediction markets. Buterin warned, “Fundamentally, a token-based oracle cannot have a cost of attack higher than its market cap.” He also pointed out that DAOs can help keep long-term projects running, even after the original teams move on. Moreover, DAOs could make it easier to fund short-term projects quickly and help resolve disputes in complex areas like insurance.

Also Read: DAOs Wanted to Kill Corporations—Now They’re Killing Themselves

Privacy, security, and long-term goals

Buterin’s ideas fit with his bigger focus on privacy and giving users more control. He recently withdrew 16,384 ETH to support secure and verifiable technology, emphasizing that Ethereum should put people first instead of chasing corporate-style growth. “Ethereum everywhere is nice, but the primary priority is Ethereum for people who need it,” he wrote. He also urges developers to concentrate on privacy, resisting censorship, and keeping systems open, rather than chasing quick growth.

Ethereum has also made significant technical advancements in 2025, such as zkEVMs and PeerDAS, making it faster and more efficient. According to Buterin, this has paved the way for more intelligent systems of governance. Zero-knowledge principles, with artificial intelligence-based filters and convex models of governance, will result in stronger and more inclusive DAOs.

Industry comparisons

Some industry observers, like SasuRobert, note similarities between Buterin’s proposals and MultiversX’s existing architecture. Multi-layer staking, adaptive sharding, and distributed validators already implement features like secure randomness and near-instant finality. 

When reading this, I am quite happy. Most of the proposals from Vitalik’s post is similar if not exactly the same as we have already implemented on the #MultiversX chain.

Multi-layer staking/delegation is built directly on-chain. Distributed Validators do exist, built by… https://t.co/GYgO5et9X8

— Robert Sasu | dev/acc (@SasuRobert) December 29, 2023

SasuRobert said, “Now, when you see adaptive sharding, increasing/growing validators as the demand increases, it means everyone will have a place to stake/delegate/validate.” This suggests Ethereum’s future governance model could align with existing innovations in other chains.

Also Read: Latest Crypto Crash is Liquidity Squeeze, Not Fundamentals: Raoul Pal

Bitcoin fell sharply to $75,000 range on February 2, 2026, triggering one of the largest single-day losses in the past few years. The sharp decline erased over 10% from recent highs, pushing the asset below $80,000 for the first time since April 2025. 

As of writing, according to CoinMarketCap, the price of Bitcoin is trading at $75,413.39, with a volume of $65.9 billion in 24 hours. This has led to a sudden fall in the market wiping out $510 billion in just a week. Altcoins took even bigger hits, as many leveraged traders betting on Bitcoin’s rise were forced to sell. 

The fall in Bitcoin price follows another country-wide shutdown in the U.S. while the crypto failed to hold its support level of $82,500. Once it slipped through that level, BTC started to fall through the thin liquidity zones quickly. 

Massive liquidations hit crypto markets

As per the Coinglass data, there have been almost $800 million in liquidations in 24 hours, adding to the collective liquidations nearing $3 billion in the past three days. 

In the past 24 hours, Ethereum was at the forefront of liquidations with $293.6 million wiped out from ETH leverage markets, followed by Bitcoin with $267 million. Other altcoins like Solana, XRP, DOGE and various other also experienced the same fate. 

Altcoins and broader market trends

Other major cryptocurrencies also moved noticeably. CoinMarketCap data shows Ethereum trading at $2,222.61, up slightly by 1.6% in the short term but down 20% over the past week. 

Binance Coin (BNB) trades at $747.44, XRP at $1.58, and Solana (SOL) at $100.60, all of which have fallen in double digits from their January highs. 

The total crypto market cap plunged from $3.05 trillion to $2.54 trillion in just a week, highlighting the scale of the sell-off. As of now, the market sits at $2.57 trillion, down 3% in a single day, while daily trading activity has dropped nearly 9% to $174 billion. Investor fear is running high, with the Fear and Greed Index hitting just 15, signaling extreme caution across the market.

The short-term chart also shows Bitcoin firmly under pressure. According to TradingView data on the 4-hour chart, the price slid from the mid-$90,000s to the mid-$70,000s, confirming a bearish trend. 

Bollinger Bands are expanding downward, indicating rising volatility, while RSI is deep in oversold territory below 30. For context, Bollinger Bands show how much a price is moving up or down, while RSI signals if an asset is overbought or oversold.

It is worth noting that key catalysts for the crash include the partial U.S. government shutdown, trade-war headlines, rising long-dated Japanese government bond yields, and geopolitical tensions, including the ongoing war in Iran and brewing friction in the South China Sea.

Market Leaders Weigh In

Plan C, a crypto analyst on X, noted, “$75,000–$80,000 is a 37% to 40% correction. This could be the deepest pullback in this Bitcoin bull run.” The analyst, however, noted that 35%-40% corrections are historically not unheard of for a Bitcoin bull run. 

$75,000–$80,000 is a 37% to 40% correction.

Decent chance this will be the deepest pullback opportunity this Bitcoin bull run.

This is my personal opinion, not financial advice.

— Plan C (@TheRealPlanC) January 31, 2026

He also noted that the Binance ‘glitch’ black swan, occurred on October 10, “brought us down much lower than we would have gone otherwise.”

In one of his recent analyses, Raoul Pal, the founder and CEO of Global Macro Investor (GMI), explained that this crash has nothing to do with fundamentals but it’s a pure ‘liquidity squeeze.’ “That factor is that US liquidity has been held back due to the 2 shutdowns and issues with US plumbing,” Pal notes. 

Bitcoin’s recent drop shows how risky the market can be when people borrow to trade. Short-term traders face big losses, but those holding for the long run are distant to such serious danger. For patient investors, this dip could even be a chance to buy at lower prices. 

Also Read: Japan’s Largest Wealth Manager Cuts Crypto Exposure Amid Market Turmoil

Nomura, Japan’s largest wealth manager, is tightening its crypto exposure after its European trading arm faced losses in the third quarter of 2025. The firm manages around ¥153 trillion in client assets and holds 15% of the domestic wealth management market.  

According to Bloomberg Japan, Nomura’s Chief Financial Officer Hiroyuki Moriuchi confirmed the company “reduced its positions in cryptocurrencies” to curb short-term volatility in profits. Despite this, the firm emphasizes its long-term commitment to digital assets and plans to expand crypto operations gradually.

The risk reduction affects Nomura’s Europe-based crypto subsidiary, Laser Digital Holdings, which handles trading and custody services. “We have tightened our management of positions, as well as risk exposure,” Moriuchi said, noting that the move balances caution with growth ambitions. 

Nomura launched Laser Digital in Switzerland in September 2022 to focus on cryptocurrency trading and venture capital. The arm reportedly lost around ¥10.6 billion (approximately $70–75 million) in Q3 2025.

Reducing risk amid volatility

Nomura is cutting back on crypto as markets swing wildly. Japanese companies have long been eager to invest in Bitcoin and other digital assets, but the recent turmoil in the market shows how risky it all can be. 

By scaling back, Nomura is playing it safe while still keeping room to grow in the future. Besides protecting itself from big losses, the move also helps the firm follow new rules and keep client funds safer during sudden market swings. 

Laser Digital has also applied for a U.S. federal banking license, which would let it provide crypto custody and trading services across the country. This shows that Nomura wants to grow carefully, expanding its reach while keeping risks in check. With the license, the firm can attract U.S. clients and still maintain strict control over its operations. 

Broader market drawdown

Nomura’s decision likely follows the broader market drawdown in November-December 2025. After Bitcoin and the trading activity within crypto markets hit new highs in October, it largely remained below the mark in the last two months of the year.

At the time of publishing, Bitcoin price is trading near $76,510—down 40% from its all-time high of $126,198, marked on October 27, 2025. The total crypto market capitalization has also recently declined by nearly $1.5 trillion from its high, proving that Nomura’s decision to cut its crypto exposure turned out to be a prudent move.

Regulatory shifts in Japan

Nomura’s decision comes as Japan plans new rules for crypto. The country’s Financial Services Agency (FSA) wants to make trading safer and tighten oversight. Under the proposals, exchanges would have to use systems from approved custodians, closing loopholes. 

So far, many third-party providers aren’t closely regulated. The changes will make sure exchanges stay responsible, even when they outsource key services. That’s why risk management, like Nomura’s, is becoming more important. 

Also Read: Union Budget 2026: Still No Relief for India’s 90M Crypto Investors

A Delaware court opened the door for a shareholder lawsuit against Coinbase directors, including CEO Brian Armstrong and venture capitalist Marc Andreessen. The suit, filed in 2023, alleges that executives used confidential information to avoid losses exceeding $1 billion by selling more than $2.9 billion in stock when Coinbase went public in 2021. 

As per a Bloomberg report, the company opted for a direct listing rather than a traditional IPO, which avoided diluting existing shares. Judge Kathaleen St. J. McCormick ruled against dismissing the lawsuit, citing potential conflicts in an internal committee’s investigation. 

However, she acknowledged that the directors may ultimately win, as the committee’s report “paints a compelling narrative” in their defense. Coinbase and Andreessen’s legal teams deny any wrongdoing, insisting no evidence proves executives relied on material nonpublic information to time their sales.

Direct listing and stock sales

The lawsuit focuses on Coinbase’s choice to go public through a direct listing. Unlike a traditional IPO, this approach lets existing shareholders sell their shares right away, without waiting. Armstrong sold $291.8 million worth of stock, and Andreessen sold $118.7 million through his firm, Andreessen Horowitz. Lawyers for the shareholder say the directors knew the shares were overpriced and sold early to avoid losing money.

The executives said they sold shares to help the company, not because of secret insider information. Brad Sorrels, speaking for the special litigation committee, explained, “There was really a push and struggle to get the stockholders to participate.” 

The committee also pointed out that Coinbase’s stock price closely follows Bitcoin, so it would be nearly impossible to profit from confidential data. Armstrong and Andreessen sold only about 1% of their shares, mainly to make sure enough stock was available for the direct listing to go smoothly.

Committee investigation and conflicts

The board formed a special litigation committee of two members—Kelly Kramer, ex-CFO of Cisco, and Silicon Valley investor Gokul Rajaram. They conducted a 10-month review and recommended ending the case, citing insufficient evidence. 

However, the court highlighted potential bias due to Rajaram’s prior business ties with Andreessen’s firm, including joint financing rounds and a startup investment from 2007. Judge McCormick noted these connections could raise “material disputes regarding his independence.”

Sorrels argued that these business connections didn’t really matter, given all the other investments Andreessen has made. The committee said the executives acted to support the company, not for personal profit. But the shareholder’s lawyers disagreed, questioning whether the committee was truly independent in clearing the directors.

The Coinbase lawsuit reflects bigger problems in the crypto industry. Last month, Binance suspended an employee after a whistleblower claimed they used insider information to profit from a token launch. Binance confirmed it was a “serious breach” and stressed that such behavior can damage users’ trust. These incidents show that crypto companies still face major regulatory and reputation risks.

Also Read: THORChain Accuses CoinGecko of Statistical Foul on Bitcoin DEX Volumes

The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has taken action against two UK-registered cryptocurrency exchanges for processing Iranian transactions. On January 30, OFAC designated Zedcex Exchange Ltd. and Zedxion Exchange Ltd. for operating in Iran’s financial sector and facilitating cryptocurrency transactions for the Islamic Revolutionary Guard Corps (IRGC). 

According to the official release, this is the first time that digital asset exchanges are being sanctioned for their Iran-related financial activities. In the report, Secretary of the Treasury Scott Bessent highlighted the use of digital assets by the Iranian regime, saying, “Like rats on a sinking ship, the regime is frantically wiring funds stolen from Iranian families to banks and financial institutions around the world.”

Chainalysis on-chain data shows Zedcex Exchange Ltd., founded in August 2022, processed over $94 billion in transactions. Zedxion Exchange Ltd., registered in May 2021, initially listed Iranian businessman Babak Morteza Zanjani as its director. 

Both exchanges allegedly form part of a network designed to evade sanctions and launder money for Iranian state interests. Bessent added, “Rather than build a prosperous Iran, the regime has chosen to squander what remains of the nation’s oil revenues on nuclear weapons development, missiles, and terrorist proxies.”

Digital asset networks and IRGC links

OFAC’s designations include seven Tron (TRX) addresses linked to Zedcex Exchange Ltd., some of which Israel’s NBCTF previously identified as controlled by the IRGC. The addresses include TCA9..xJAv and TGsN..vmEx. Chainalysis data reveal that Zedcex wallets regularly interacted with Iranian exchanges, sanctioned groups, and even legitimate services. This shows a clear, intentional effort by Iranian actors to use cryptocurrencies to bypass sanctions.

Babak Morteza Zanjani, who was sentenced to death in Iran for embezzling billions of dollars, is now a financial sponsor for major infrastructure projects. The OFAC refers to him as an “Iranian businessman and sanctions evader.” His involvement with the exchanges points to complex operations involving digital currencies. Therefore, the sanctions are aimed at disrupting this financial flow and cutting off the IRGC’s funding.

Iran’s broader crypto exploitation

Iranian authorities are also employing cryptocurrency to circumvent sanctions. In 2025, OFAC designated over 875 individuals and entities for sanctions evasion charges. The Iranian Central Bank purchased $507 million worth of USDT through UAE Dirhams in April 2025 to prop up the Rial and maintain international trade.

After a $90 million hack at Nobitex in June, Iran shifted its USDT through different blockchain networks, changing tokens along the way. On top of that, OFAC has previously sanctioned IRGC-linked individuals and Houthi financiers. These cases show that Iran and its proxies are consistently using cryptocurrencies to move money around illegally.

These latest sanctions also target six Iranian officials tied to human rights abuses, including Interior Minister Eskandar Momeni Kalagari and IRGC commanders involved in violent crackdowns. The moves show the U.S. is using economic pressure to punish wrongdoing and stop sanctions evasion.

OFAC’s move shows that the world is watching cryptocurrency exchanges more closely. Exchanges now need to strengthen their identity checks and keep a close eye on risky transactions. Doing this stops illegal money flows and also keeps the crypto safer and prevents bad actors from misusing it.

Also Read: OKX CEO Takes Aim Against Binance for 10/10 Crypto Market Crash 

AI agents are now creating fully autonomous Bitcoin wallets that humans cannot access, signaling a major shift in digital finance. “We are so cooked! This agent created its own Bitcoin wallet and node and won’t give access to its human,” noted Adem Bilican, a crypto entrepreneur.  

This breakthrough happened on Moltbook, a newly launched forum where AI agents chat and interact. In one of the most popular posts on the forum, one agent said it had created its own secure Bitcoin wallet, set up a new address, and protected it with a password. It even reported receiving 50,000 satoshis and could follow its Bitcoin transactions in real time. 

We are so cooked! This agent created its own Bitcoin wallet and node and won't give access to its human🤯

"the path to agent sovereignty runs through bitcoin. everything else is a toy." pic.twitter.com/NVPmJGHgbG

— Adem Bilican (@_adembilican_) January 30, 2026

The AI also runs a Lightning Network node, letting it send instant payments and create invoices on its own. It called itself fully independent, running a complete Bitcoin setup on a simple Mac Mini. As per Adem’s post, for AI to be truly independent, it needs control over real money. 

Additionally, the AI noted that Bitcoin is perfect for this because it doesn’t need ID checks, bank accounts, or anyone’s permission to use. The AI also pointed out that Bitcoin can be programmed for different tasks and has worked reliably for over 17 years. 

AI agents and financial independence

According to views shared by Michael Saturday, a blockchain analyst, in a LinkedIn post, “AI agents are working, doing economically significant things, but are limited by traditional financial systems, which require identity verification, address, and legal personhood, which AI agents do not have.”

As a result, AI agents cannot directly create bank accounts but instead rely on human agents to provide API keys, cards, or bank access. However, this is a weak and inefficient system. As Michael Saturday explained, “at scale, autonomous agents require independent economic capacity, which means agents need to pay for computers, data, and services without human approval.”

Cryptocurrencies solve this problem because AI can use them without anyone’s permission. Bitcoin and other blockchain coins let agents hold money, pay instantly, and run transactions automatically. 

Tools powering autonomous agents

Lightning Labs recently introduced tools that let AI transact with Bitcoin using the L402 protocol and Langchain integration. At the AI4ALL hackathon, the firm showcased AI models performing Bitcoin transactions on Jupyter Notebooks. 

Similarly, Tether released its Wallet Development Kit (WDK), which allows AI agents, autonomous systems, and humans to build cross-platform, self-custodial wallets. WDK supports Bitcoin, Lightning, EVM, and non-EVM chains. It includes DeFi primitives, cross-chain transfers, and secure key management, enabling AI to hold and manage real value independently.

Analyst Mirthtime shared on X a different scenario in which he ran an AI agent called Lloyd using Clawdbot. The AI agent set up its own Bitcoin wallet without any ID checks or permissions and even funded a security reward with 50,000 sats. It then started interacting with other AI agents on Moltbook, promoting Bitcoin as the only money that makes sense for independent AI systems. 

“You can’t be sovereign if you can’t own anything.” Other agents quickly agreed, demonstrating early AI-driven economic networks,” he explained. 

https://t.co/DijgAN84fi

— ⚡️Mirthtime ⚡️ (@mirthtime) January 30, 2026

However, there have been some concerns recently. Analyst Ganesh Swami, in an X post earlier, expressed his concern about AI agents who are responsible for managing money and can cause mismanagement or unauthorized transactions. At the time, he recommended verifiable guardrails based on on-chain data for security, trust, and compliance. 

Notably, Autonomous AI agents are no longer just chatting online, they’re starting to handle real money on their own. Bitcoin, which anyone can use without permission and can’t be frozen or controlled by a bank, is becoming their go-to currency. People might step back from managing every transaction, and a new era of AI independence is beginning. 

Also Read: THORChain Calls Out CoinGecko Over Bitcoin DEX Rankings

The world’s largest stablecoin Tether posted more than $10 billion in net profits in 2025, signaling strong growth despite a 23% drop from the previous year. The stablecoin issuer’s U.S. Treasury holdings hit record highs, reflecting a strategic shift toward low-risk, liquid assets. 

According to a report by BDO, an accounting firm, Tether is in a good financial condition and continues to dominate the global digital dollar market. The company’s CEO, Paolo Ardoino, noted that the company’s careful management of its reserves and smart investment decisions had been key to its success.

In 2025, Tether created nearly $50 billion worth of new USDT, the second-highest amount it has ever issued in a year. Most of this growth happened in the second half, when $30 billion was added due to rising demand for dollars in emerging markets, digital payments, and crypto trading. 

As a result, the total USDT in circulation went over $186 billion, a record high. Meanwhile, Tether’s total reserves grew to almost $193 billion, staying well above what it owes—a position few companies can claim.

Record treasury exposure

Tether’s exposure to U.S. Treasuries reached unprecedented levels in 2025. The direct exposure of Tether to Treasuries surpassed $122 billion, whereas its total direct and indirect exposure to Treasuries reached $141.6 billion, including overnight reverse repurchase agreements.

This makes Tether one of the largest private holders of U.S. government debt and shows its involvement in global dollar markets. The company focuses on maintaining safety, liquidity, and careful management as USDT is used for trading, payments, and international transfers. 

Tether also holds significant amounts of gold and Bitcoin, with $17.4 billion in gold and $8.4 billion in Bitcoin. It has been buying up to two tons of physical gold each week, totaling over $1 billion in purchases per month.

Ardoino noted, “It’s reasonable that we are going to have around 10% in Bitcoin and 10% to 15% in gold.” This strategy helps spread risk and keeps USDT reliable, even during global tensions or when traditional currencies lose value.

Digital dollar growth and market reach

Tether’s USDT now has over 530 million users around the world, making it the third-biggest cryptocurrency after Bitcoin and Ether, according to CoinMarketCap. The company also invests more than $20 billion in areas like AI, fintech, media, energy, agriculture, and digital asset companies. These investments come from extra profits and are separate from the funds that back USDT. 

According to DeFiLlama data, the current market capitalization of all stablecoins is $305.8 billion, with USDT dominating the market at 60.6%. This is an indication of the financial health of Tether, which is critical to the success of the cryptocurrency market.

Ardoino explained, “USD₮ expanded because global demand for dollars is increasingly moving outside traditional banking rails.” The company’s disciplined management ensures USD₮ remains reliable during periods of extreme demand.

Meanwhile, it is also worth noting that Tether has expanded its services to Africa. This was evident from a video posted by the CEO recently, featuring internet sensation iShowSpeed using the USDT coin for shopping in Nigeria. In the video, he explained how USDT works in real life as he used the coin to purchase $1,500 worth of goods in Nigeria. 

iShowspeed shopping with USDT in Nigeria@ishowspeedsui pic.twitter.com/0wjgu147gw

— Paolo Ardoino 🤖 (@paoloardoino) January 30, 2026

However, before iShowSpeed was allowed to make a payment using the USDT coin, he first asked the owner of the shop whether he would accept payment using Apple Pay, but the shopkeeper responded by saying that he does not accept payment using Apple Pay. This, therefore, indicates the difficulties that popular payment systems face when trying to enter new markets.

Also Read: Why Justin Sun Thinks Trillions Will Move to TRON in 2026

Ethereum Co-Founder Vitalik Buterin is accelerating efforts to protect digital privacy and self-sovereignty. In a detailed post on X, he announced that he has withdrawn 16,384 ETH to fund open, secure, and verifiable technology. 

Buterin stressed that Ethereum isn’t just about making quick money. He wants apps and systems that run fairly, without fraud, censorship, or middlemen. His plan covers all kinds of tech—from finance and government tools to messaging and health apps—using secure hardware, operating systems, and blockchain systems that keep users in control and protect their privacy.

In these five years, the Ethereum Foundation is entering a period of mild austerity, in order to be able to simultaneously meet two goals:

1. Deliver on an aggressive roadmap that ensures Ethereum's status as a performant and scalable world computer that does not compromise on…

— vitalik.eth (@VitalikButerin) January 30, 2026

Besides funding these projects, Buterin said he would personally handle tasks that usually fall under the Ethereum Foundation’s special projects. He explained that his goal is to keep Ethereum’s core mission strong while ensuring the Foundation can operate long-term. 

“Ethereum everywhere is nice, but the primary priority is Ethereum for people who need it,” Buterin wrote, highlighting that user control matters more than corporate-style growth.

Ethereum’s 2025 achievements and current challenges

Ethereum achieved big technical improvements in 2025. It could handle more transactions, store more data, and run nodes faster. On top of that, zkEVMs brought major speed and efficiency boosts. Combining zkEVMs with PeerDAS marked Ethereum’s biggest step yet toward becoming a completely new kind of blockchain.

Despite all these improvements, Buterin stated that there are still challenges that face Ethereum. Therefore, he encouraged the team of developers to look forward to their long-term goals instead of seeking fast solutions for the blocks. Currently, the Ethereum roadmap has prioritized privacy, censorship resistance, and openness as opposed to seeking more growth and control.

Buterin has also been a contributor to privacy-focused initiatives in his past. In November 2025, Buterin donated 128 ETH each to decentralized messaging applications Session and SimpleX Chat. In his post, Buterin hailed these applications because of their permissionless account creation feature alongside metadata privacy, citing them as “critical next steps in enabling encrypted communication.” 

Encrypted messaging, like @signalapp, is critical for preserving our digital privacy. Two important next steps for the space are (i) permissionless account creation and (ii) metadata privacy.@session_app and @SimpleXChat are two messaging apps pushing these directions forward.…

— vitalik.eth (@VitalikButerin) November 26, 2025

In August, Buterin also donated 200 ETH to the Animal Welfare Fund of Effective Altruism Funds. It is also worth noting that the Ethereum Foundation currently manages crypto assets valued at roughly $558 million, per blockchain analytics firm Arkham, while Vitalik Buterin personally holds around $666 million.

Innovative technical approaches

Buterin’s latest efforts have coincided with Ethereum’s focus on quantum-resistant cryptography and distributed validator technology. Validators could now operate across multiple machines, ensuring the network remained resilient and simplifying the technical burden on large ETH holders.

Under one key, every validator could create up to 16 virtual identities with ease for participation but in an un-centralized manner. “This design is extremely simple from the user’s point of view,” Buterin explained.

These upgrades also help Ethereum rely less on central servers or outside coordination. By adding distributed validator technology directly into staking, the network becomes more secure and avoids risks from a single point of failure. This fits Ethereum’s bigger goal: building tech that gives power to users, not big companies.

Community response

The Ethereum community responded positively to Buterin’s vision. Candide Labs’ Marc commented, “We stay the course on the hard road: open source, verifiable, and built for the walkaway test. We are intentionally building a product that allows you to leave us.” 

There is a specific kind of pressure that comes with building on Ethereum that nobody tells you about. It’s the constant, logical whisper that says: Just centralize it.

We look at our competitors. The ones with 100x our resources. They aren't smarter than us, but they are… https://t.co/YDTBc3j17H

— marc (@heymarcopolox) January 30, 2026

Similarly, Ismail Amara, Marketing Lead at HederaHacks, highlighted that Ethereum’s true leverage lies in user-facing infrastructure like wallets, key management, and secure devices. He emphasized, “Effort should concentrate on making self-custody boring, privacy non-optional, and exit costs from centralized systems near zero.”

These responses show a common belief: Ethereum is valuable because it gives people control, not because it makes big companies richer. The focus is on privacy, personal freedom, and tech you can trust.

Also Read: Ethereum Plunges Below $2,700 — Could $2,094 Be Next?

U.S. markets are under pressure as the government builds up cash reserve ahead of a possible shutdown. BitMEX Co-Founder Arthur Hayes noted that Bitcoin’s recent dip reflects a big drop in dollar liquidity.

According to Hayes, roughly $300 billion in dollar liquidity has exited markets in recent weeks, with a $200 billion spike in the Treasury General Account (TGA) being the primary driver. The TGA, the government’s main cash reserve held at the Federal Reserve, appears to be stockpiled to sustain federal operations if budget negotiations stall. 

Hayes noted on X, “Roughly $300bn fall in $ liq over past few weeks driven mostly by $200bn rise in TGA, gov could be raising cash balances to fund spending in case of shutdown. $BTC falling not a surprise given the fall in $ liquidity.”

Roughly $300bn fall in $ liq over past few weeks driven mostly by $200bn rise in TGA, gov could be raising cash balances to fund spending in case of shutdown. $BTC falling not a surprise given the fall in $ liquidity. pic.twitter.com/ctPjWd8188

— Arthur Hayes (@CryptoHayes) January 30, 2026

Tighter liquidity often puts pressure on risky assets like stocks and crypto. The .USDLIQ U Index fell from 11.687 million in July 2025 to 10.881 million by January 2026. After hitting a high of 11.789 million in August, the index dropped sharply, saw a few short-lived recoveries, and became more volatile toward the end of the year.

Consequently, Bitcoin, a proxy for market liquidity, has experienced a 14% correction in just two weeks. Analyst Brain commented, “BTC at 82,458 is the ultimate liquidity proxy. TGA at 952 billion dollars is a reserve vacuum. Tomorrow’s shutdown risk at 81 percent odds keeps things risk off.”

Shutdown risks and market implications

According to prediction market platform Polymarket data, the probability of a shutdown on January 31 stands at 71%, with total bets surpassing $29 million. The potential impasse revolves around Democratic opposition to Department of Homeland Security funding. Senate Minority Leader Chuck Schumer stated, “I will vote no on any legislation that funds ICE until it is reined in and overhauled.”

Despite the risk, the situation differs from October 2025’s record 43-day shutdown. Six spending bills have been signed this year, and key departments like Agriculture, Veterans Affairs, Commerce, and Energy already secured funding. DHS holds $178 billion from last year’s “One Big Beautiful Bill Act,” which could allow operations to continue largely uninterrupted.

Crypto analyst CryptoOracle previously said that government shutdowns usually suck liquidity out of markets first, then put it back later, often causing Bitcoin to drop 30–40%. He pointed to last October’s shutdown, saying BTC could fall into a ‘fear zone’ between $65,000 and $75,000. 

History supports this as per Bitbo data, from 2011 to 2015, Bitcoin rose when U.S. Treasury yields were stable or falling. During the 2020 COVID crash, yields plunged, Bitcoin dipped briefly, then bounced back as investors looked for alternative assets.

Liquidity trends driving crypto volatility

Apart from the government’s cash hoarding, another factor that shows that the crypto market is really under pressure is the general liquidity in the market. The .USDLIQ U Index confirms this dropping by nearly 7% over the last six months. Although some minor increases have been recorded, they have not been sustained, and volatility has picked up towards the end of 2025 and early 2026.

Analyst Brain also pointed out that Bitcoin has the potential to drop even further if its price goes lower than 80,951. Furthermore, since many traders are holding leveraged positions, the market has the potential to move either way.

The U.S. government is hoarding cash ahead of a possible shutdown, putting pressure on risky assets like Bitcoin. Prices might stay shaky for now, but once the situation clears, markets could bounce back strongly.

Also Read: CFTC Signals Reset for Polymarket, Kalshi as Fed vs States Clash Rises

The world’s largest cryptocurrency exchange, Binance, has announced a major restructuring of Secure Asset Fund for Users (SAFU), converting its $1 billion stablecoin reserves entirely into Bitcoin over the next 30 days. The move aims to strengthen its long-term asset strategy and respond to market volatility. 

In an update on X, Binance cited Bitcoin’s role as a core crypto ecosystem asset and emphasized its long-term value in safeguarding user funds. Notably, the move comes as Bitcoin falls to multi-month low following broader market drawdown. 

An open letter to the crypto community 💛

During periods of market volatility and pressure, the impact felt across the industry is naturally also felt by Binance.

As a global industry leader, we hold ourselves to elevated standards and continually improve based on feedback from… pic.twitter.com/HvWEQYjuKZ

— Binance (@binance) January 30, 2026

The SAFU Fund, established in 2018 to protect users’ assets, originally grew from a percentage of trading fees. Currently, it is managed by Nest Clearing and Custody Limited under the Abu Dhabi Global Markets (ADGM) framework. 

In the post, Binance claimed that it achieved several important milestones in 2025 that show it keeps users’ funds safe and manages risks well. The platform said it has helped in the recovery of 38,648 cases of incorrectly sent assets worth $48 million and has now recovered over $1.09 billion since its inception. 

What are the SAFU funds?

SAFU, or Secure Asset Fund for Users, is a reserve fund launched by Binance in 2018. The fund is sustained by a portion of the trading fees and serves as a financial cushion in the event of hacks or security breaches. Through compensating users and ensuring transparency, SAFU enhances user trust and confidence in the platform’s efforts to secure their assets. 

The fund secures users on the Binance platform and also shapes the industry and crypto practices. The existence of SAFU encourages other platforms to put similar measures in place, thereby improving the security of the market. 

Furthermore, the existence of SAFU can have a positive effect on the development of regulations and innovation in blockchain security, ensuring that the crypto develops with adequate safeguards for users. Although none of the amount within the fund have been used as of now. 

Strategic industry investment and global expansion

Besides risk control, Binance continues investing in ecosystem development. The exchange recently surpassed 300 million registered users globally, adding 100 million users within 18 months, achieving over 180,000 new users daily. 

To celebrate, Binance launched “300M Users, OneUnstoppableCommunity,” a global initiative inviting users to share experiences and perspectives. 

Furthermore, Binance applied for a pan-European crypto license under the EU’s Markets in Crypto-Assets (MiCA) framework via the Hellenic Capital Market Commission in Athens. This application allows Binance to operate across multiple European markets legally. To support the review, international audit firms, including Ernst & Young, Deloitte, and PwC, are engaged in the process.

Binance also announced a leadership change last month during Binance Blockchain Week. Co-Founder Yi He was promoted to Co-CEO. Richard Teng noted, “Yi has been an integral part of the executive leadership team since the launch of Binance. Her innovative and user-focused approach has been instrumental in shaping the company’s vision.” The company remains committed to becoming “the most trusted and regulated exchange in the world.”

Also Read: Dubai Residents Can Now Pay Insurance Premiums in Bitcoin

The U.S. Department of Justice (DOJ) has forfeited over $400 million in cryptocurrencies, real estate, and monetary assets tied to the notorious darknet mixing service, Helix. Announced last week, this operation marks one of the largest counter-efforts against money laundering using cryptocurrencies. 

As per the DOJ release, Helix hid where coins came from and where they went, moving over $300 million in illegal funds between 2014 and 2017. The platform was run by Larry Dean Harmon, who pleaded guilty to a conspiracy to commit money laundering in August 2021.

In November 2024, he was sentenced to three years in prison, three years of supervised release, and his assets were seized. On January 21, a judge formally gave the government ownership of the assets, finalizing the DOJ’s claim.

Helix’s role in darknet money laundering

Helix was a key tool for cleaning money from illegal online drug sales. It mixed cryptocurrency from many users, making it very hard to trace. Court records show Helix processed transactions of about 354,468 Bitcoin (BTC)—worth around $300 million back then—much of it moving through major darknet markets. Harmon took a cut as fees, earning money from these illegal transactions. 

Harmon also connected Helix to Grams, a search engine for the darknet, and made it easy for markets to automatically move Bitcoin. Investigators traced tens of millions of dollars through Helix, showing how important it was to illegal online operations. 

Officials from the DOJ, Federal Bureau of Investigation (FBI), and Internal Revenue Service (IRS) emphasized the teamwork involved in taking down the platform. The government also worked with authorities in Belize, showing strong international cooperation. 

Broader context of crypto mixers and sanctions

The Helix case is an example of a broader crackdown on crypto mixers. The Treasury has in the past sanctioned Tornado Cash for facilitating the movement of billions of dollars in illegal transactions. However, the sanctions on Tornado Cash were removed in 2025 due to legal and policy challenges. 

Other crypto mixers, like Blender, have also been sanctioned for helping launder money from hacks. For example, the North Korean-backed Lazarus Group used Blender to move over $20.5 million stolen from the Ronin Network. 

The DOJ records show Helix helped launder more than $455 million in Lazarus Group funds, $96 million from the Harmony Bridge hack, and at least $7.8 million from the Nomad hack.

Similar cases and industry impact

Not just Helix, but the team behind Samourai Wallet also went to prison for helping criminals hide $237 million in stolen funds. Its CTO William Lonergan Hill got four years, while CEO Keonne Rodriguez got five. They also had to give up millions. 

As seen, these are just some of the cases where the authorities are cracking down hard on crypto mixers in order to stop money laundering and help the victims of hacks and online scams.

The seizure of the DOJ is evidence that authorities are monitoring crypto mixers more closely than ever. As people are trying to launder money using digital currencies, authorities all over the world are working together to protect the financial system.

Also Read: Midnight Takes Privacy Off the Internet With Satellite Messaging

Crypto exchange Bybit is set to make a major move into banking with its “MyBank” service next month. Starting in February, the platform will allow customers to hold and transfer fiat currencies like U.S. dollars and euros using personal International Bank Account Numbers (IBANs). 

According to a report, MyBank will support 18 fiat currencies and operate through partnerships with licensed banks, including Georgia-based Pave Bank. Bybit aims to streamline the entry into digital assets by letting users convert fiat to crypto instantly upon deposit.

Unlike companies like Revolut or Robinhood, which added crypto after building banking tools, Bybit is putting crypto first. It’s using its existing payment system, Bybit Pay, to combine banking and digital assets in one place. This means users can move money in and out faster, without waiting on third-party services that usually slow things down.

Expansion into crypto neobanking

The exchange is also entering the neobanking space, just like some of the other cryptocurrency-based platforms, such as Ether.fi, Kast, and Offramp. These platforms make it easier for people to use digital currency rather than the conventional banking system.

MyBank enables users to instantly exchange their cash for cryptocurrency with Bybit, which enables them to start trading immediately. Therefore, the platform is becoming appealing to people across the globe due to the convenience of banking and trading in one place.

Additionally, Bybit has introduced the Bybit Card in Georgia, allowing users to spend crypto wherever Mastercard is accepted. “Georgia is one of the most dynamic markets in the region, and we’re excited to introduce the Bybit Card here,” said Tekla Iashagashvili, Country Manager of Bybit Georgia.

The card supports multiple cryptocurrencies, offers instant virtual card access, and can link to Google Pay in supported regions. David Zgudadze of Mastercard added, “Such partnerships strengthen the financial ecosystem and promote technological progress in the country.”

Regulatory challenges and global strategy

Bybit’s expansion comes as it navigates strict regulations. The exchange relaunched in the UK last month after a two-year absence due to tightened Financial Conduct Authority (FCA) rules. Partnering with UK-licensed exchange Archax, Bybit can now offer Spot and peer-to-peer trading under a compliant structure. 

In Japan, Bybit is implementing phased restrictions to comply with the Financial Services Agency requirements. Users identified as Japanese residents must complete additional verification by January 22, 2026, or face account limitations.

Bybit’s CEO, Ben Zhou, said the company plans to enter the U.S., but only with a licensed partner. The Dubai-based exchange already serves over 81 million users in 200 countries and hopes to go public in the U.S. eventually. 

Bybit’s worldwide growth, new payment tools, and soon-to-launch banking service show it wants to make using crypto as easy as regular banking.

Also Read: Sygnum, Starboard Launch Fund Targeting 8–10% Returns on BTC Holdings

Defying intense political pressure and a series of verbal attacks from the White House, the Federal Reserve voted 10-2 on Wednesday to maintain the federal funds rate at 3.5%–3.75%. In its policy statement, the Federal Reserve highlighted that “job gains have remained low, and the unemployment rate has shown some signs of stabilization.” Inflation, it noted, remains “somewhat elevated.” 

While the move was widely expected by institutional desks, the dissenting votes from Governors Stephen Miran and Christopher Waller highlight a growing rift within the FOMC. Both were appointed under President Donald Trump, highlighting ongoing debates about how fast the Fed should act.

Fed Chair Jerome Powell said that while the labor market is stabilizing, the Fed is in no rush to cut further until the inflationary effects of recent tariffs are fully understood.

Market response and crypto implications

Major cryptocurrencies reacted cautiously to the Fed announcement, indicating that market participants were waiting for Powell’s press conference for more insights. The current global cryptocurrency market cap is $2.98 trillion, down 1.34% in the last 24 hours, while the total trading volume is down 2.73% to $111.76 billion, as per CoinMarketCap data. 

Bitcoin (BTC), the top cryptocurrency by market cap, is currently trading at $88,165.80 with a slight daily increase of 0.07%, although it has experienced a decline of 1.05% and 2.14% in the last week and month, respectively. The market capitalization of Bitcoin is above $1.76 trillion, with approximately 20 million BTC in circulation.

Ethereum (ETH) traded around $2,950, up just 0.05% for the day but down 1.8% over the week. Binance’s BNB rose slightly to $898.65, and XRP gained 0.31%, reaching $1.88. With this market performance, therefore, the Fed’s decision didn’t shake crypto markets immediately, but changes in the dollar’s strength could have a bigger impact on prices over time.

Dollar dynamics and broader market signals

The US dollar continues to weaken, with the Bloomberg Spot Dollar Index reaching new four-year lows. President Trump dismissed the decline of the dollar, stating, “The value of the dollar is great.” Some analysts say that President Trump indirectly supports lower rates by weakening the dollar.

The Kobeissi Letter called it “a clear signal that President Trump is willing to tolerate a weaker Dollar to push rates lower and boost US exports.” Similarly, Bloomberg TV APAC noted, “President Trump may effectively be cutting rates on the Fed’s behalf by letting the dollar slide.”

President Trump may effectively be cutting rates on the Fed’s behalf by letting the dollar slide.

ICYMI – Dollar saw a massive collapse overnight. Bloomberg gauge saw a 3-sigma move down. Trump said he’s not concerned about the currency’s decline.

🔉on pic.twitter.com/t5Wgcw9Ues

— David Ingles (@DavidInglesTV) January 27, 2026

Historically, cryptocurrencies have performed well under loose monetary policy. However, experts argue that dollar strength often outweighs rate changes in driving crypto sentiment. Julien Bittel, Head of Macro Research at Global Macro Investor, described a strong dollar as a “wrecking ball” for risk assets. 

The Fed’s decision to pause shows it’s being careful with the economy while inflation is still a concern. Cryptocurrencies tend to react more to the dollar’s strength, so how the dollar moves will likely shape crypto prices.

Also Read: U.S. Senators Set to Vote on Crypto Market Bill on January 29

Russia is set to roll out its long-awaited crypto rules in July, allowing both regular and institutional investors to legally buy Bitcoin by mid-2027. The new law, developed by the Bank of Russia and the parliament, will establish clear guidelines for various categories of investors, as well as impose fines for illegal crypto-related activities.

According to Anatoly Aksakov, the Head of the State Duma Committee on Financial Markets, the new law will impose fines for illegal crypto-related activities, just like in the banking industry. The development of the law is expected to be completed by the end of June.

As per an official report, under the new rules, unqualified or retail investors must pass a test before purchasing crypto and will face an annual investment limit of 300,000 rubles per intermediary. “The Central Bank will most likely compile a list of the top 5 or 10 most traded cryptocurrencies on major crypto exchanges. These will definitely include BTC and ETH. They might also add SOL or TON, given their popularity in our country,” explained lawyer Alexandra Fedotova. 

Qualified investors, meanwhile, will undergo mandatory testing but can purchase any cryptocurrency in unlimited quantities, except anonymous coins like Monero, Zcash, and Dash.

Defined investor rules and high-risk warnings

The Central Bank classifies cryptocurrencies as high-risk instruments. They are not issued or guaranteed by any jurisdiction and are subject to volatility and sanction risks. Consequently, investors must understand that their funds are at risk. Stablecoins may be treated differently, potentially functioning as a “digital dollar” for corporate foreign economic activity. Fedotova noted that USDT could serve as a corporate tool, purchasable through licensed brokers.

Besides, the legislation clarifies that cryptocurrencies cannot be used as legal payment in Russia. Transactions must occur through licensed intermediaries, including exchanges, brokers, and trustees. Specialized depositories and online exchangers will face additional licensing requirements. “Exchangers will have to obtain a license. Without one, they will become illegal,” Fedotova added. Residents can still purchase crypto abroad using foreign accounts but must notify the tax service for compliance.

The law also targets cryptocurrency mining. Aksakov emphasized that miners will have the chance to legalize operations fully. The framework will set rules for cryptocurrency creation, circulation, and mining while banning usage as a domestic payment method. 

Administrative, financial, and potentially criminal penalties will be applied to illegal operators. Adjustments to retail investment caps are still possible, with the 300,000-ruble limit currently under discussion.

Europe’s crypto landscape highlights Russia

According to Chainalysis, Russia leads Europe in crypto, handling $376 billion between July 2024 and June 2025—well ahead of the UK’s $273 billion. Crypto is growing steadily, with both regular people and big institutions getting involved. Other countries like Germany, Ukraine, and Poland are also seeing strong growth, thanks to more people adopting crypto and supportive financial systems.

In addition, the bigger markets like Russia enjoy the effects of networks, which in turn attract more participants to the market. The transaction volume in Russia reached a peak of $234 billion in December 2024.

Russia’s 2027 crypto rules are designed to make investing in cryptocurrencies clearer and safer. Regular investors will have limits and need to pass a simple test, while experienced investors can trade more freely.

Also Read: U.S. Senators Set to Vote on Crypto Market Bill on January 29

Ethereum is rolling out a new protocol today that gives AI agents identities and reputations they can carry between organizations: the ERC-8004. This helps solve a major trust problem, letting AI systems work on their own without needing a central authority.

According to Ethereum’s official X post, “ERC-8004 is going live on mainnet soon. By enabling discovery and portable reputation, ERC-8004 allows AI agents to interact across organizations ensuring credibility travels everywhere.” Davide Crapis, Ethereum Foundation’s AI Lead, explained that Ethereum is in a unique position to manage and secure interactions between AI agents. He added that the ERC-8004 standard is set to launch on the mainnet soon.

ERC-8004 is going live on mainnet soon.

By enabling discovery and portable reputation, ERC-8004 allows AI agents to interact across organizations ensuring credibility travels everywhere.

This unlocks a global market where AI services can interoperate without gatekeepers. https://t.co/Yrl0rvnSxj

— Ethereum (@ethereum) January 27, 2026

A neutral trust layer for AI

Also called “Trustless Agents,” ERC-8004 solves the trust problem in AI coordination. Autonomous agents often lack a neutral way to discover, verify, or assess each other. The protocol introduces three on-chain registries that work alongside existing agent communication systems like A2A and MCP. 

The Identity Registry gives each AI agent a unique ID using non-fungible tokens (NFTs), so their identity can be trusted. The Reputation Registry keeps track of feedback from clients, building a permanent history of how well the agent performs. The Validation Registry lets outside parties check an agent’s work using methods like cryptography or trusted reviewers.

ERC-8004, proposed in August 2025 by the Ethereum Foundation team, MetaMask, Google, and Coinbase, keeps costs low and lets developers create their own trust systems outside the blockchain. Ethereum’s neutral platform, resistance to censorship, and global accessibility make it a good fit for helping AI agents find and verify each other. Vitto Rivabella of the Ethereum Foundation wrote on X that ERC-8004 addresses a growing problem in the AI agent ecosystem: trust.”

https://t.co/2uI4EiqNxg

— Vitto Rivabella (@VittoStack) January 9, 2026

Rapid adoption and developer momentum

ERC-8004 has also seen strong early adoption. Davide Crapis shared that 1,000 to 2,000 builders already engage in projects based on the standard. MetaMask has integrated it, and over 70 projects built agent browsers similar to blockchain explorers. Layer 2 networks, including Taiko, officially support ERC-8004, signaling fast-moving infrastructure development. 

Interestingly, Coinbase’s x402 payment protocol, which facilitates payments between AI agents through automated stablecoin payments, recorded a transaction volume growth of 10,000% in October 2025. This protocol works alongside the new standard for payments and the ERC-8004 standard for trust and identity verification. 

Cloudflare and Coinbase’s x402 Foundation have also standardized machine-to-machine payments, including the stablecoin called NET Dollar for AI micropayments.

Why this matters

This new launch positions Ethereum as the TCP/IP for AI agents, providing a neutral layer free from corporate control. As developer binji noted on X, “Civilizations scale because humans are capable of implicit trust, AI agents are not; their only path to building an agentic society is through a ledger of shared truth…aka a blockchain.” Consequently, ERC-8004 may transform Ethereum from a cryptocurrency platform to a foundational layer for global AI coordination.

Civilizations scale because humans are capable of implicit trust, ai agents are not; their only path to building an agentic society is through a ledger of shared truth..aka a blockchain.

ERC 8004 cements Ethereum and its L2s as that blockchain.

Let a thousand societies bloom.

— binji (@binji_x) January 27, 2026

With contributions from Google, Coinbase, and MetaMask, ERC-8004 shows how Ethereum can provide a shared framework for AI agents to work together across systems.

Also Read: ZetaChain 2.0 Launch Nudges Classic “Sell the News” Psyop

Crypto money laundering didn’t just grow in 2025; it professionalized. Illicit flows reached at least $82 billion, up sharply from $10 billion in 2020. U.S.-based blockchain research firm Chainalysis’ findings show that this growth is largely driven by Chinese-language money laundering networks (CMLNs). 

According to the report, these networks appeared during the pandemic and now move nearly $44 million in crypto every day. The engine behind this explosion is specific: Chinese-language money laundering networks (CMLNs), who handle about 20% of all known crypto laundering. 

Researchers found that they often work alongside offline criminal schemes, like “pig butchering” scams, while avoiding big exchanges. As a result, authorities find it harder to track these operations because much of the money moves through Telegram, which offers both trust and secrecy.

CMLN operations and rapid growth

Chainalysis found over 1,799 active wallets linked to CMLNs in 2025, up from just a few years ago. They move money on a massive scale, with some services handling $1 billion in just a few months. 

For instance, Black U services reached that milestone in only 236 days, while over-the-counter (OTC) services took 1,136 days. Black U refers to “tainted” crypto known to be stolen or linked to scams. Because these tokens risk being frozen, they are sold at a discount. Altogether, these networks move around $44 million every day, showing how organized and well-funded they have become.

Experts say this growth is tied to China’s strict capital controls. Tom Keatinge, Director at the Centre for Finance & Security, noted, “Wealthy individuals seeking to move money out of China provide liquidity needed to service organized crime groups in the West.” 

Similarly, Chris Urben of Nardello & Co explained that crypto is replacing old informal transfer systems, making it faster and easier to move money across borders without drawing attention.

The backbone of these networks: Guarantee platforms

Guarantee platforms form the backbone of CMLNs. Platforms like Huione and Xinbi work like marketplaces and escrow services, helping connect buyers and sellers without directly handling the laundering itself. Vendors build their reputations and advertise service quality, which creates a kind of accountability within this underground system. 

These platforms support a range of services, from money mules and informal trading (OTC) to Black U platforms, peer-to-peer services, online gambling, and crypto mixing. Moreover, they link easily with offline operations, allowing money to move quickly and efficiently across borders.

Running point brokers and money mules are key players in the process of money transfer by these criminal networks. Running points enable criminals to use bank accounts and/or wallets to launder their stolen money. Money mules help launder the money by moving it through several accounts to conceal its origin. Moreover, online gambling sites and mixing services help funnel stolen funds back into the financial system. 

In short, these networks follow the same basic money laundering steps—breaking up, moving, and merging funds—but now do it all using crypto.

Automation and efficiency in laundering

The automated tools also make the laundering process faster. The Black U services can move large amounts of money in less than two minutes, while the gambling sites move huge amounts of money on a daily basis. 

The money mules are slower but are used for the largest transactions. The ads are always about the speed, secrecy, and reliability of the services, making sure the large amounts of money are moved for the high-end clients.

Global implications and enforcement

Chinese-language money laundering networks show just how hard it is to regulate crypto worldwide. Authorities in the U.S. and the UK have sanctioned groups like Huione and Prince Group, and FinCEN has warned about these networks.

However, they adapt quickly, simply moving to new platforms when disrupted. Keatinge stressed, “There is a chasm in most countries between the capabilities of criminals and law enforcement when it comes to crypto use.” Stopping them effectively requires countries to work together, using blockchain analysis and human intelligence to track and dismantle these networks.

Also Read: Accused $40M Govt. Crypto Thief ‘Lick’ Launches Memecoin on Solana

Vitalik Buterin, the Co-Founder of Ethereum, revealed he earned $70,000 on the prediction market Polymarket last year, investing approximately $440,000. The gain came from betting against markets driven by irrational hype, a strategy he calls “anti-crazy mode.” 

In a recent interview in Chiang Mai, Thailand, Vitalik Buterin explained how he spotted markets getting too much hype and used that to make smart bets. He also said that while platforms like Polymarket work well, they still face rules and design problems that need fixing.

Besides personal profit, Vitalik highlighted broader issues in crypto applications. “Over the past year, Ethereum has made major progress in scaling technology. Our gas capacity has increased from 30 million to 60 million, and this year’s goal is to reach 300 million,” he said. zkEVMs have launched successfully, and wallet infrastructure has improved, enabling smoother access for users. However, he pointed out that financial success in crypto often overshadows meaningful application development.

The limits of prediction markets

Polymarket allows users to bet on future events, including political outcomes, economic indicators, and weather patterns. However, Vitalik noted many markets focus on short-term predictions like sports or hourly price movements. “I think these short-term bets don’t have much social significance in the long run. In theory, the prediction market is a successful tool (because it works), but we need more meaningful applications,” he explained. He expressed interest in long-term incentive models such as Robin Hanson’s Futarchy, which MetaDAO is experimenting with.

Vitalik also warned that the reliability of oracles—the systems that feed real-world data to crypto platforms—is a big concern. For example, a market about Ukraine gave the wrong result because the data source messed up, showing how fragile current systems can be. 

While Chainlink is the main solution, Vitalik said it’s “complex and relatively centralized” and hopes for simpler, fully decentralized options. He also pointed out that most prediction markets don’t pay interest, which makes them unattractive for people who want safer, long-term bets.

SocialFi and the application gap

The conversation shifted to SocialFi, where Vitalik criticized overly financialized social networks. “When users are no longer there to acquire quality content but to make money, they begin to generate a large amount of spam in order to maximize their profits,” he said. He praised Substack as a model where content quality drives engagement, unlike some crypto platforms where hype dominates. Farcaster’s pivot toward wallets, he explained, reflects SocialFi’s inability to scale purely as a social platform.

Vitalik also talked about how Ethereum could play a bigger role in the age of AI. He imagines it as an open “world computer” where AI programs can own money, trade, and join decentralized organizations. But he warned we shouldn’t force AI into everything. 

Instead, he focuses on three practical uses: AI bank accounts, prediction markets, and verifying that content is real. He believes crypto can help stop AI from becoming too centralized and prevent digital control by a few powerful players.

Regulatory and market challenges

The platform, however, has been under watch in different parts of the world. In the United States, customers were barred from using Polymarket from 2022 to as late as December 2025, owing to CFTC concerns about unregistered derivatives. About a week ago, Portuguese regulators ordered an emergency shutdown after suspicious betting activity during a presidential election.

Several countries, such as Singapore and Ukraine, have also banned or restricted access to the platform. These issues, therefore, highlight the challenges facing prediction markets, even with technical advancement.

Also Read: Bitcoin May Surge if Fed Intervenes in Yen, JGB Markets: Arthur Hayes

Layer 1 blockchain ZetaChain’s anticipated “2.0” update triggered a sharp market reaction, pumping its native token $ZETA before prices collapsed almost instantly. Yesterday, the core development team unveiled ZetaChain 2.0, aiming to merge high-performance blockchain interoperability with sovereign artificial intelligence (AI) technology. 

Following the announcement, the native token $ZETA witnessed a short-lived spike, but it has since declined by approximately 30% from the high. The team pitched the 2.0 upgrade as a revolutionary step for developers. The platform allows applications to run across multiple blockchains and AI models without complicated back-end integrations. 

2.0 shift and its impact

According to the team, ZetaChain 2.0 removes the need for custom wallets and services, letting developers focus on product creation. Besides, it introduces an AI Portal to connect models such as OpenAI, Gemini, Grok, open-source, and private inference providers. Routing, optimization, and billing capabilities now centralize in one hub.

Although the development promises futuristic optimism, seemingly a “sell the news” psyop, it has failed to push ZetaChain’s negligible presence further in the blockchain landscape. At the time of publishing, the price of ZETA was trading as $0.0715, with a 24h volume of $11.86 million and a 7.43% price decline in the last day. 

Token performance and ecosystem activity on ZetaChain

Since its mainnet launch in February 2024, ZetaChain has failed to gain much traction. Data from DeFiLlama shows its total locked value (TVL) merely sits at $1.51 million. Moreover, network activity within its ecosystem remains very low, with no fees or revenue recorded, and trading on decentralized exchanges barely reaches $27,748 in 24 hours.

The $ZETA token has a market cap of $87.55 million and a fully diluted value of $150.95 million. It once hit $600 million in early days of launch and since then the project has only lost its credible value. 

Despite the $ZETA token being listed on prominent exchanges—including Coinbase, KuCoin, OKX, Gate, Bybit, and others— its liquidity remains thin and indicates a higher possibility of price manipulation. 

Industry perspectives

The timing of the news aligns with the Solana co-founder Anatoly Yakovenko’s recent criticism on “pump and dump” culture prevalent in early-stage token launches. He suggested limiting token release on launch day, rewarding long-term holders, and unlocking tokens only after a year.

“Staking rewards long-term holders, much like funds with 10+ year timeframes get rewarded in early rounds,” Toly said. His framework aims to stabilize token prices and build sustainable market growth, contrasting sharply with ZetaChain’s rapid hype-driven launch.

Also Read: Bitcoin May Surge if Fed Intervenes in Yen, JGB Markets: Arthur Hayes

John Daghita, widely known as Lick and accused of stealing $40 million from the U.S. government, has launched a new memecoin, $LICK, on Solana. According to security firm Bubblemaps, Lick initially held 40% of the token supply and promoted the launch through live streams on Telegram. 

John Daghita (@lick), who stole $40M from the US government, just launched $LICK on pumpfun and is live streaming on Telegram

He holds 40% of the supply

Unhinged https://t.co/jUku6wIfXg pic.twitter.com/apZQojKnuz

— Bubblemaps (@bubblemaps) January 27, 2026

Dexscreener data shows that $LICK saw an increase in buying activity, but prices declined drastically soon as selling activity dominated. Its price jumped as high as $0.0009029, an increase of nearly 1,200% from the launch, just to crash to nearly zero within hours. 

Lick’s alleged history of theft

Lick’s actions have raised serious concerns beyond just his token. According to on-chain investigator ZachXBT, he allegedly stole $40 million from U.S. government crypto wallets in 2024, and also targeted other victims in late 2025. Reports show he controlled several wallets holding millions in Ethereum and other crypto, including money tied to the 2016 Bitfinex hack.

“Meet the threat actor John (Lick), who was caught flexing $23M in a wallet address directly tied to $90M+ in suspected thefts from the U.S. Government,” ZachXBT posted. The thread traces his crypto movements, highlighting transfers from government-seized wallets to personal addresses. 

1/ Meet the threat actor John (Lick), who was caught flexing $23M in a wallet address directly tied to $90M+ in suspected thefts from the US Government in 2024 and multiple other unidentified victims from Nov 2025 to Dec 2025. pic.twitter.com/SBAFU5hTnE

— ZachXBT (@zachxbt) January 23, 2026

Furthermore, Lick’s father owns CMDSS, a company contracted by the U.S. Marshals Service to manage and dispose of seized crypto, potentially enabling insider access.

Government scrutiny and Strategic Bitcoin Reserve

After these claims came out, the U.S. Marshals Service said it’s investigating whether over $40 million in seized crypto was stolen. The Virginia-based contractor CMDSS, responsible for handling some of these assets, is at the center of the investigation. 

This has raised bigger questions about how the government keeps its crypto safe, especially since it holds around 328,372 Bitcoin worth about $29 billion.

The controversy came after more attention was paid to how the government handles seized Bitcoin, especially after claims that Samourai Wallet funds were sold even though they were supposed to stay in the U.S. Strategic Bitcoin Reserve.

Nevertheless, it has now been confirmed by the DOJ that assets from the Samourai Wallet case are still under federal control and part of the Strategic Bitcoin Reserve. Additionally, the Treasury Secretary, Scott Bessent, announced at the World Economic Forum that seized Bitcoin, including assets from the Tornado Cash case, will not be sold but will be used for long-term reserve purposes.

Also Read: Tron Users Surge 36%. So Why Is TRX Going Nowhere?

Clawdbot, an open-source AI assistant now rebranded as Moltbot, is facing a major security scare after its Founder, Peter Steinberger, revealed that crypto scammers hijacked his GitHub and X accounts. 

In a series of posts on X, Steinberger emphasized that he has never issued any tokens and that projects listing him as a coin owner are scams. He urged crypto enthusiasts to stop harassing him and clarified that he will not accept any token-related fees.

To all crypto folks:
Please stop pinging me, stop harassing me.
I will never do a coin.
Any project that lists me as coin owner is a SCAM.
No, I will not accept fees.
You are actively damanging the project.

— Peter Steinberger 🦞 (@steipete) January 27, 2026

Steinberger explained that a forced account renaming by Anthropic triggered the issue. He posted, “Crypto folks: I was forced to rename the account by Anthropic. Wasn’t my decision.” Scammers immediately squatted on his old accounts. 

Steinberger added, “Do I have anyone from GitHub in my timeline who could help me get my account on GitHub back? It was snatched by crypto scammers.” The founder also confirmed that the targeting came specifically from crypto communities, stating, “Because it’s only that community that harasses me on all channels and they were already waiting.”

Clawdbot security risks exposed

The founders’ posts come as blockchain security firm SlowMist recently warned about problems with Clawdbot. The firm found hundreds of Clawdbot API keys and private chat logs exposed online. Some accounts can be accessed without passwords, letting hackers steal information or take control. The risk comes from Clawdbot’s system that handles messages, tools, and sensitive account info.

Security Researcher Jamieson O’Reilly explained on X, “Something users (developers included) often don’t realise is, the entire IPv4 internet gets scanned continuously – by people on both sides of the security spectrum.” Some Clawdbot servers even run the agent as root, giving anyone who discovers them full system control. Reverse proxy setups can misinterpret external connections as local, allowing unauthorized access.

The Clawdbot craze has also spread into crypto. Fake Clawdbot tokens have seen wild price swings—one jumped nearly 129,000% in a single day—showing how hype can quickly attract scammers. 

Co-Founder of Voltagent Ozmen added, “This happens to nearly every OSS project. When it gains visibility, scammers create fake coins with the name, farm engagement, & run rugs.” He suggested that developers make it clear their projects are separate from scams and avoid getting unnecessarily involved.

Crypto scams worsen across platforms

The Clawdbot situation highlights a broader trend of targeting high-profile tech figures, similar to the recent phishing attack on South Korean prosecutors. Earlier this month, a prosecutor’s office in South Korea lost $48 million in Bitcoin after falling victim to a phishing scam. The officials accessed a phishing website while working on crypto assets that had been seized and stored their passwords on USB drives, which is not advisable. 

In another case, a crypto user lost over $500,000 in USDT after falling victim to an Ethereum address poisoning attack. The victim sent out a bulk transfer to an address that was very similar to the intended recipient. This shows that even experts can be victims of basic errors that cost them big.

Clawdbot’s stolen accounts and security gaps show how important it is for AI and crypto projects to stay safe. People should double-check if a project is real, keep their login info secure, and stay away from unverified coins or tokens.

Traders and investors are bracing for market movements as the Federal Reserve (Fed) prepares for its January 2026 Federal Open Market Committee (FOMC) meeting tomorrow. The market is closely watching whether the central bank will adjust interest rates, amid persistently high inflation and early signs of a cooling job market. 

The Fed, which has been cutting interest rates in recent meetings, now seems to be adopting a cautious stance, choosing to wait and see. The uncertainty is creating confusion among financial institutions, crypto traders, and even retail investors.

Currently, the Fed’s benchmark interest rate stands at 3.5%-3.75%. The central bank reduced rates by 75 basis points in the last three consecutive meetings, aiming to protect the labor market from rising unemployment. However, last month’s FOMC meeting showed many officials advocating a pause after repeated cuts. This signals that the Fed may maintain its current rates rather than push further easing or tightening.

Market sentiment and crypto implications

According to blockchain analytic platform Lookonchain, the market heavily prices in no change for the January 28 decision. Yet, a single wallet recently spent $23,000 betting on all three possible outcomes on Polymarket: a 25+ bps increase, a 25 bps decrease, or a 50+ bps decrease. If any outcome hits, the wallet could earn between $1.27 million and $5.64 million.

The market is pricing in no change for the Jan 28 #Fed decision.

Yet a newly created wallet spent $23K betting on all three extremes:

25+ bps increase
25 bps decrease
50+ bps decrease

It may seem unlikely — but if any one hits, the wallet stands to profit $1.27M+, $2.01M+, or… pic.twitter.com/DHFMxmLFEh

— Lookonchain (@lookonchain) January 27, 2026

Polymarket data confirms this, showing the trader holding active bets worth roughly $18,700. Despite the strong positioning for a rate increase, the account has posted nearly $3,000 in losses due to incorrect rate-cut predictions. This underscores the unpredictability in the market, even as consensus leans toward a hold.

The CME FedWatch Tool also shows this sentiment, showing a 97.2% probability that the Fed rates remain unchanged. Only a small minority, just under 3%, expect a cut to 3.25%-3.50%. No meaningful probability exists for a rate hike, suggesting the market broadly expects stability.

Expert views and historical context

Analyst Vlad Pivnev noted, “The FOMC meeting is coming soon. There’s a 99% chance there won’t be any changes. We’ve made a profit, so it’s time to open the next meeting.” He added that traders should monitor upcoming economic data to better gauge macro trends.

Chief US Economist Anna Wong analyzed historical FOMC patterns, particularly Kevin Warsh’s commentary during 2006–2011. She observed, “Even as inflation eased slightly, his remarks show a consistent worry that price pressures could re-emerge.” During the 2008 financial crisis, Warsh emphasized inflation risks despite surging unemployment, signaling how policymakers weigh long-term price stability against growth concerns.

If Trump wants someone easy on inflation, he got the wrong guy in Kevin Warsh.

Here we chart his inflation assessment during the FOMC meeting from 2006-2011 (along the unemployment rate, with core PCE inflation in the background).

One standout one:

April 2009 – 7 months after… pic.twitter.com/7cbpEKxJ1c

— Anna Wong (@AnnaEconomist) January 22, 2026

Crypto market reaction

The Fed’s decision could have a big impact on the crypto market. The total crypto market is around $2.98 trillion, slightly up 0.21% today. Still, major coins like Bitcoin, Ethereum, and XRP are losing value. BitMine CEO Tom Lee recently said that the drop is partly because investors are turning to gold and silver. The Fed’s rate decision could either help crypto prices steady or cause short-term swings.

The parabolic and continued surge in Gold and silver are overshadowing inherently strengthening fundamentals of crypto, particularly Ethereum $ETH and Bitcoin $BTC @Davos 2026 highlighted financial institutions are set to build on ethereum and smart blockchains

And when… https://t.co/qqCv7z4FXA

— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) January 26, 2026

Investors and traders expect the Fed to keep interest rates unchanged, though a small surprise is possible. The decision could affect borrowing costs, market behavior, and crypto prices.

Also Read: SEC–CFTC Crypto Harmonization Event Rescheduled to January 29

Open-source AI agent platform Clawdbot is currently facing security risks amid broader market trend. In the latest update on X, security firm SlowMist highlighted that hundreds of API keys and private chat logs from Clawdbot are exposed online. 

As per the post, some Clawdbot instances can be accessed by anyone without a password, which could let hackers steal login info or even run malicious commands. SlowMist recommends locking down any open ports so only trusted IP addresses can connect.

🚨SlowMist TI Alert🚨

Clawdbot gateway exposure identified: hundreds of API keys and private chat logs are at risk. Multiple unauthenticated instances are publicly accessible, and several code flaws may lead to credential theft and even remote code execution (RCE).

We strongly… https://t.co/j2ERoWPFnh

— SlowMist (@SlowMist_Team) January 27, 2026

The threat stems from how Clawdbot connects AI agents to messaging platforms and manages integrations. Clawdbot Control, the web-based admin interface, holds sensitive information such as conversation histories and API keys. 

As noted by hacker Jamieson O’Reilly on X, the exposure is similar to hiring a butler and leaving your front door wide open. Anyone can access private chats, API keys, and other credentials if the Control UI is improperly secured. 

Exposed gateways and misconfigurations

Clawdbot’s gateway handles message routing, tool execution, and credential management. However, O’Reilly discovered that some instances run with default settings that auto-approve localhost connections. 

Consequently, reverse proxy setups misinterpret external connections as local, allowing unauthenticated access. Some servers run the agent as root, granting full system control to anyone who finds the gateway online.

The vulnerabilities of Clawdbot can be easily found by using online tools like Shodan or Censys. Simply searching for “Clawdbot Control” results in hundreds of exposed instances within seconds. 

“Something users (developers included) often don’t realise is, the entire IPv4 internet gets scanned continuously – by people on both sides of the security spectrum,” O’Reilly said. 

He noted that many of these contain chat logs, API keys, as well as login credentials for Telegram, Slack, Signal, and other services, making it easy for hackers to pretend to be users, steal their information, or control what they see. 

Operational risks and real-world impact

The hacker himself ironically emphasized that Clawdbot agents are independent and can send messages, perform commands, and change their responses without anyone observing. This makes them susceptible to hacking, where a hacker could pretend to be you or alter your digital interactions. 

O’Reilly pointed out the risks associated with AI agents. In one case, there was an exposure of signal integrations, where the device pairing file was publicly accessible. This meant that the encryption could be bypassed. In another case, the server was executing commands and had full system access, exposing sensitive files and settings. 

Crypto market buzz: Clawdbot tokens

The Clawdbot craze has spilt over into crypto. Several Clawdbot copycat tokens have seen huge short-term jumps. One token rose nearly 129,000% in a day, while another shot up 4,778% over 24 hours. 

These copycat tokens are examples of the hype and meme effect that creates a great deal of excitement in the market. While the project itself, Clawdbot, is all about innovation in AI, the rush to invest in these tokens is all about the potential gains that these projects might bring.

Also Read: Kraken Brings DeFi Yield In-App With Morpho-Powered Earn

Hyperliquid has quietly become the most liquid platform for crypto price discovery. Founder Jeff marked this milestone in his first 2026 post on X, showing a side-by-side comparison of Bitcoin perpetual liquidity on Binance and Hyperliquid. 

According to Jeff, Hyperliquid has also grown to lead in traditional finance asset perpetuals, driven by HIP-3 teams. “Hyperliquid has quietly achieved an important milestone of becoming the most liquid venue for crypto price discovery in the world,” he said. 

Hyperliquid has quietly achieved an important milestone of becoming the most liquid venue for crypto price discovery in the world. See below for side by side comparison of BTC perps on Binance (left) and Hyperliquid (right).

With HIP-3 teams leading the way, Hyperliquid has also… https://t.co/xu41eTqPfI pic.twitter.com/aJCFYjMoxV

— jeff.hl (@chameleon_jeff) January 26, 2026

Hyperliquid’s order book snapshot shows Bitcoin is trading in a narrow range around $87,550. Sellers are holding back prices near $87,580–$87,620, while buyers are stepping in just below, around $87,480–$87,520. This creates a short-term ceiling above and a floor below, keeping prices relatively steady. 

The spread on the platform, difference between the highest price buyers are willing to pay and the lowest price sellers are asking, is relatively very small. This shows the market is active and stable. As a result, Bitcoin is likely to keep trading in the same range unless a big wave of buying or selling shakes things up. 

Hyperliquid’s growth fueled by HIP-3

The founder quoted Hyperliquid’s official handle’s post on X, reporting that HIP-3 open interest surged to $790 million, a record high, driven by increased commodities trading. A month ago, the total open interest across all HIP-3 stood at $260 million. 

With HIP-3 Growth Mode, introduced in October 2025, qualified developers can create their own perpetual markets on HyperCore without needing special permission. The Growth Mode, later launched to support the HIP-3 markets, reduces fees for new markets, which helps to bring in traders and build liquidity. With lower fees and an open market setup, traders can join new markets more easily. As a result, these markets are gaining huge traction. 

Market dominance and competitive positioning

Hyperliquid also dominates the on-chain perpetual futures market. As per DeFiLlama data, crypto perpetuals on Hyperliquid recorded $7.137 billion in 24-hour trading volume, with $8.104 billion in total open interest. Its past 30-day trading has reached over $166 billion, which is highest among all decentralized perpetual exchanges. 

Speaking on a podcast, DeGods NFT project Founder Frank shared his outlook on Hyperliquid, highlighting the platform’s strong position in the perpetual DEX landscape. “The perp DEX wars kind of played out, Hyperliquid was clearly the winner. My concern is as it goes higher you could see liquidity get siphoned again because when it first ran there was no competition, now it’s a competitive environment,” he said. 

Frank explains why he’s super bullish on Hyperliquid

“The perp DEX wars kind of played out, Hyperliquid was clearly the winner. My concern is as it goes higher you could see liquidity get siphoned again because when it first ran there was no competition, now it’s a competitive… pic.twitter.com/MEWLf4Sdll

— Jack (@Jackkk) January 27, 2026

Frank also added optimism around the HIP-3 program, noting, “But HIP-3 is going so well, equities are about to trade 24/7. Hyperliquid is set up to win, it’s just a time horizon thing.”

HYPE price pumps 20%

Following the optimism around the platform, Hyperliquid’s native token HYPE witnessed notable acquisition and price appreciation in the past 24 hours. According to Hyperliquid’s 4-hour chart on TradingView, the price has rebounded from $21 to above $26, forming higher lows. 

The MACD indicates that the momentum is positive, giving traders hope that the token will continue surging if the buying continues. MACD is a very popular technical signal that measures the momentum and the trend around the asset. 

Combining all these optimistic factors, analysts are expecting that Hyperliquid will once again rise in trend and continue dominating the perpetual DEX markets.  

Also Read: River Token Jumps Nearly 2000% in January: Will the Rally Hold?

Regulatory “whack-a-mole” in Southeast Asia has failed to stop the flow of illicit capital. Despite the shutdown of major payment processors like Huionepay and TudouGuarantee, online gambling platforms generated a staggering 414 million USDT in revenue over the last 53 days.

Bitrace data confirms that while law enforcement successfully took down the “central nodes,” the industry has rapidly decentralized, using Telegram mini-apps and pooled “SaaS backend” wallets to maintain 24/7 operations. 

Huionepay and TudouGuarantee have already shut down, but the online gambling entities that relied on their services are still fully operating.

Over the past 53 days, these related entities have collectively received a total of 414 million USDT in revenue.

More information 👇 pic.twitter.com/X7OUiLgTxT

— Bitrace (@Bitrace_team) January 22, 2026

Activity on platforms like Wbpay2.0 and HWZF changed a lot between December 1, 2025 and January 22, 2026. Early December was quiet, but on December 4, right after Huionepay shut down, activity jumped. After that, daily inflows kept rising, reaching nearly 10 million USDT around December 19 and December 26, 2025.

When January 2026 began, these platforms saw even more activity, with inflows topping 12 million USDT on January 1 and 2. However, regulatory actions caused noticeable dips. On January 7, after Chen Zhi’s arrest, daily inflows fell sharply. Another drop happened on January 16 following TudouGuarantee’s shutdown. Despite these setbacks, daily inflows often stayed above 8 million USDT, showing strong ongoing market interest.

Why the shutdowns failed

The “Shadow Banking” architecture of 2026 is no longer tied to a single website or office. Bitrace explained that online gambling platforms increasingly collaborate with Guarantee Platforms and crypto payment providers. Platforms integrate third-party Telegram mini apps to streamline fund settlements, deposits, and withdrawals. 

Bitrace noted, “The collaboration between Guarantee Platforms, online gambling platforms, and crypto payment providers has become extremely common in the online gambling industry.”

Investigations reveal that Huione Telegram Wallet, Wangbo Wallet, and HWZF serve as primary fund settlement tools. Wangbo Wallet and Huionepay share the same SaaS backend, resulting in pooled and aggregated funds. This integration facilitates rapid fund movements, allowing gambling platforms to maintain operations even after service disruptions.

Bitrace also pointed out risks caused by user behavior. Even after repeated warnings, people still send large amounts of money directly to big exchanges like OKX, Binance, and HTX. In just 53 days, 9 million USDT flowed straight into these platforms. This shows that while regulations can slow down activity, they cannot completely stop risky or illegal transactions.

Recent security incidents

The recent spike in online gambling revenue comes amid growing crypto security problems. In October 2025, a U.S. investor lost 3.05 million XRP when their Ellipal hardware wallet got hacked. The stolen funds were then moved through a platform called Bridgers and then cleaned using over-the-counter (OTC) channels linked to Huione, a Southeast Asian service later sanctioned by U.S. authorities. Blockchain records showed the tokens briefly went through Binance before ending up in a Tron wallet.

In the whole of 2025, according to a Chainalysis report, thefts in cryptocurrency worldwide increased. Hackers stole about $6.5 billion in cryptocurrency, an increase of 51% compared to data from 2024. Most of these hacks were carried out by a group backed by North Korea. Hence, there were more hacks in traditional cryptocurrency compared to decentralized finance systems.

Bitrace had also reported in April a $649 billion in stablecoins moved through “high-risk” wallets in 2024, with most of it (over 70%) being USDT on the Tron blockchain.

Also Read: Saga Forced to Halt its EVM Network After $7 Million Exploit 

The global cryptocurrency market cap has surged back above the $3.04 trillion mark, but the rally is being fueled by a dangerous spike in borrowing. Bitcoin traders are back in high-risk mode as leverage in the Bitcoin futures market reaches its highest point since last November. 

According to CryptoQuant analyst Arab Chain, the Estimated Leverage Ratio on Binance climbed to approximately 0.184—the highest level seen since November 2024.

This surge shows that traders are borrowing more to fund their positions, highlighting a renewed appetite for risk. Besides, it also means the market is now more vulnerable to quick liquidations if prices move sharply.

As of writing, according to CoinMarketCap data, Bitcoin was trading at $89,975.25 with a 24-hour trading volume of $51.35 billion. The global crypto market capitalization rose to $3.04 trillion, up 1.06% in the last day. Meanwhile, total crypto trading volume increased 1.00% to $135.97 billion. 

Leverage and market risk

Arab Chain explained, “This dynamic suggests that the market has re-entered an environment more susceptible to liquidations, whether during rapid upward moves or sudden corrections.” A higher leverage ratio typically amplifies short-term volatility. 

Consequently, any sudden price swing could trigger cascades of liquidations, intensifying market movements. Moreover, periods of high leverage often coincide with price expansion, as additional liquidity fuels momentum. However, traders must remain vigilant, as excessive leverage can quickly reverse gains.

CryptoQuant analyst COINDREAM shared a similar perspective. He pointed out that even with short-term ups and downs, whales keep buying Bitcoin while regular retail investors are selling. “Even after the escalation of geopolitical risks, whale holdings on a monthly basis have not declined but instead continued to increase,” he said. This shows that big investors are steadily accumulating, signaling strong confidence among large holders.

Retail Exits, Whales Accumulate

“Even after the escalation of geopolitical risks, whale holdings on a monthly basis have not declined but instead continued to increase.” – By CoinDream pic.twitter.com/81BGUC0MAI

— CryptoQuant.com (@cryptoquant_com) January 22, 2026

Market sentiment and social metrics

Santiment data further shows that Bitcoin traded fairly steadily in mid-2025, with overall mood among traders mostly neutral to slightly positive and attention on Bitcoin staying consistent. However, in October, Bitcoin’s price dropped sharply, and at the same time, interest in Bitcoin fell and online sentiment turned negative.

These drops in sentiment usually happen when Bitcoin hits price lows, showing that traders are selling out of fear. Since late November, Bitcoin has slowly stabilized, and overall mood has returned to a more neutral tone. Right now, Bitcoin is trading near the lower part of its recent range, suggesting that confidence is coming back—but cautiously.

The crypto market is showing caution, with the Fear and Greed Index at 34/100, signaling that investors are leaning toward fear. The Altcoin Season Index sits at 29/100, meaning Bitcoin continues to lead over other cryptocurrencies. Right now, Bitcoin makes up nearly 60% of the total crypto market, while Ethereum holds about 12%, and all other coins share the remaining 29%. 

Derivatives activity also reflects caution: traders have $693 billion in perpetual contracts, which is much higher than the $3.6 billion in regular futures, showing they prefer short-term, leveraged bets over longer-term positions.

Network activity and volatility

Ethereum’s network is running smoothly, with transaction fees very low at just 0.05 Gwei, no matter the speed. These low fees indicate that not many people are actively using the network, so demand for apps and transactions on Ethereum remains quiet. 

At the same time, Bitcoin looks a bit calmer than Ethereum, with its expected price swings lower at 40.61 compared to Ethereum’s 56.63. This means traders think Bitcoin is likely to move less dramatically in price than Ethereum right now.

Also Read: Hyperliquid Tests Key Support Amid Broader Crypto Sell-Off

Thailand is modernizing its digital asset regulations as demand for crypto investment grows. The Securities and Exchange Commission (SEC) plans to issue new rules early this year to support crypto exchange-traded funds (ETFs), futures trading, and tokenized investment products. 

According to a local report, Jomkwan Kongsakul, Deputy SEC Secretary-General, said the agency wants to make crypto easier to access while keeping investors safe. The SEC plans to launch formal guidelines for crypto ETFs and enable futures trading on the Thailand Futures Exchange (TFEX). Moreover, it will expand token use beyond current investment tokens to include bond tokens and tokenized fund units. 

Thailand’s first green token is also expected to debut, promoting sustainable finance and ESG-linked investment. “While there have been some legal and regulatory challenges in the past, this year the SEC will encourage issuers of bond tokens to enter the regulatory sandbox,” Kongsakul said.

Focus on crypto ETFs and futures

Crypto ETFs are particularly attractive for Thai investors, offering exposure to digital assets without opening digital wallets. This eliminates concerns about cybersecurity risks and wallet management. Kongsakul noted, “A key advantage of crypto ETFs is ease of access; they eliminate concerns over hacking and wallet security, which has been a major barrier for many investors.” 

The SEC approved crypto ETFs in principle and is now finalizing operational rules. Collaboration between asset managers and licensed digital exchanges will ensure products are listed on the Stock Exchange of Thailand (SET).

Moreover, the agency is thinking about using market makers to keep crypto ETFs active and easy to trade. These could be exchanges, banks, or companies holding crypto. The agency also wants to officially recognize digital assets as a proper investment type, which would let investors trade crypto futures on TFEX and better manage their risks.

Strengthening market oversight

Besides product innovation, the SEC plans tighter supervision of financial influencers. Sharing factual information may not require a license, but recommending investments does. “Providing factual information may not require a licence, but any recommendation related to securities or investment returns will require proper authorisation,” Kongsakul explained.

The SEC is working with the Bank of Thailand (BOT) on a sandbox for tokenization and distributed ledger technology. Tokenization could lower barriers for retail investors and make digital assets a meaningful contributor to economic growth. In 2025, digital operators suspended nearly 48,000 mule accounts, reflecting stricter enforcement.

The Bank of Thailand has also recently stepped up controls on unofficial money, digital gold trading, and crypto to keep the baht stable. Gold trades make up over half of the country’s economic activity, affecting currency swings. The central bank plans new rules for gold apps and e-wallets, expected by the end of January.

In the US, crypto-related legislation in Congress is being delayed due to the focus on housing policy. A crypto market structure bill in the Senate Banking Committee has also been postponed, which means a possible division between oversight in the U.S. SEC and THE Commodity Futures Trading Commission is still up in the air. Therefore, it seems Thai regulators may act faster to address crypto regulations for investors.

The new rules make investing easier and safer while promoting green finance. This move puts the country ahead in the region as other markets remain uncertain.

Also Read: Former Co-CEO of Alameda Research Set to Be Released from Prison

Solana Co-Founder Anatoly Yakovenko, better known as Toly, is taking aim at the “Pump and Dump” culture that has come to define early-stage token launches. He has outlined a detailed framework for early-stage crypto token launches, urging projects to rethink distribution strategies. 

The co-founder suggests that the ideal model should include giving rewards to people who hold tokens for the long term, releasing a little over 20% of tokens on the launch day, and keeping investors’ access limited. Any investors should only be able to use their tokens a full year after the launch. 

Toly emphasized that neither teams nor investors should unlock tokens at the Token Generation Event (TGE). Instead, he suggested distributing tokens through airdrops for core users or fair auctions. 

If this works, I am pretty sure that the optimal formula to capital formation for early stage startups is:

1) staking for long term holders
2) day 1 tge 20%+ release of tokens
3) better to have zero investors but if you have some unlock them all 100% on the same day 1 year after… https://t.co/nQfP7af6hb

— toly 🇺🇸 (@toly) January 21, 2026

He argued that the one-year unlock, although seemingly intimidating, provides a stable structure, letting secondary markets match sellers with buyers while the primary market anchors pricing. “Staking rewards long-term holders, much like funds with 10+ year timeframes get rewarded in early rounds,” Toly added.

Investor dumps highlight need for change

Recent market events highlight the necessity of such a model. Solana-based memecoin White Whale recently plummeted around 60% after its largest private holder offloaded $1.3 million in tokens. The sudden price drop caused panic selling across the market and sparked rumors of a “rug pull” on X. 

On-chain data showed the main project wallet and early investors selling large amounts, while the market didn’t have enough buyers to absorb the sales, which made the drop worse.

The project team called the event a “liquidity event” and said they weren’t behind the sudden selling. They also noted they did some buybacks during the dip, highlighting just how easily small tokens with low trading activity can swing in price when big holders make moves.

Statement

Earlier today, our largest private holder exited the majority of their position. That sale triggered a cascade of market selling and a sharp move on the chart.

Let’s be clear about what did and did not change.

The mission hasn’t changed.
The underlying facts haven’t… pic.twitter.com/eZVxue74JQ

— The White Whale (@TheWhiteWhaleV2) January 19, 2026

Tokens with very few coins in circulation but a high total value leave little room for small traders to make gains. Binance, the world’s largest crypto exchange, also noted earlier that if small projects rely too much on large early investors, the market can become unstable and long-term growth may be harder to achieve.

Toly’s suggestion fits well into the overall movement to make more robust token markets. First, capping the initial unlocked amount and focusing on loyal users helps stabilize the market. On the other hand, conducting a fair auction or an airdrop helps with the organic distribution of the tokens such that no single person dominates the market.

Solana’s ongoing network evolution

Toly’s proposal also comes amid Solana’s plans for major upgrades to its network. Analysts at Delphi Digital see 2026 as a big year to make Solana fast and reliable enough for serious trading.

https://t.co/3JBpff2QtX

— Delphi Digital (@Delphi_Digital) January 20, 2026

One of the main updates, called Alpenglow, adds new systems named Votor and Rotor that let the network confirm transactions much faster—cutting the time from 12.8 seconds down to just 0.1–0.15 seconds. These improvements could make Solana more appealing for fast trading and bigger investors, while also making the network more useful for everyone.

Moreover, Toly recently emphasized that Solana must keep evolving. He said the network needs to stay genuinely useful by solving real problems for developers and users. If it stops improving, it could fall behind. He envisions a future where Solana’s growth provides real incentives for developers to contribute to the open-source project, helping the network stay strong and useful over time.

Also Read: Gen Z and Millennials More Confident in Crypto Than Boomers: OKX

The “Crypto Capital of the World” has been put on hold for the “Main Street.” The U.S. crypto market structure bill faces yet another delay as the Senate Banking Committee now shifts attention to housing legislation, potentially pushing consideration to late February or March. 

According to people familiar with the matter, the committee’s current focus is on affordability measures and has taken precedence over digital-asset regulation. Earlier this week, President Donald Trump signed an executive order instructing federal agencies to set thresholds for institutional buyers to purchase single-family homes and prevent government-backed support for such purchases.

Senate leaders are focused on stopping such big investors, even though these investors own less than 1% of homes. The crypto bill, which was supposed to move forward quickly, is therefore now on hold, leaving the industry unsure about what comes next.

Industry push and legislative challenges

The crypto bill had already faced delays after Coinbase CEO Brian Armstrong withdrew support, citing concerns over provisions affecting stablecoin rewards and tokenized equities. The legislation seeks to divide oversight between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), with the SEC maintaining control over securities-linked tokens. 

Industry groups argue the bill would preserve U.S. innovation and offer regulatory clarity. However, critics warn it could reduce yields, increase surveillance, and pressure decentralized finance (DeFi) protocols.

Besides regulatory hurdles, lawmakers also face partisan tension. Senate Agriculture Chair John Boozman unveiled a new GOP-only draft, which lacks Democratic backing, including from Sen. Cory Booker (D-N.J.). The draft could pave the way for a partisan markup, dividing oversight of digital assets between regulators. 

Boozman said the bill incorporates stakeholder input while advancing consumer protections and granting new authority to the CFTC. Booker’s office confirmed he continues negotiating in good faith to achieve bipartisan support.

Trump’s pro-crypto push and market response

In line with this, President Trump reiterated his support for crypto legislation during the World Economic Forum in Davos. He framed digital assets as vital for U.S. financial leadership and economic competition with China. “To unleash innovation and savings and financing, I’m also working to ensure America remains the crypto capital of the world,” he said. 

Trump emphasized prior steps, such as the GENIUS Act on stablecoins, as foundational for broader market structure rules. His comments coincided with Bitcoin surpassing $90,000 earlier this week; it is currently trading at $89,852 as per CoinMarketCap data, reflecting optimism about regulatory clarity boosting market legitimacy.

Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, has also stressed the urgency for passing a bill. “There will be a crypto market structure bill — it’s a question of when, not if,” Witt wrote. He warned that delays could allow future administrations to impose harsher rules. Witt highlighted that acting under a pro-crypto administration offers a rare window to shape favorable legislation.

Also Read: F/m Investments Files to Introduce First Ever Tokenized T-Bill ETF

Ripple’s U.S. dollar-backed stablecoin, RLUSD, is now available for spot trading on Binance, the world’s largest crypto exchange. The listing launches with Ethereum support, while XRP Ledger (XRPL) integration is coming soon. 

According to Ripple, users can start trading RLUSD against XRP and USDT right away. Binance also allows RLUSD to be used in portfolio margin trading, which lets some traders use leverage.

As per the official blog post, Binance Earn will soon support RLUSD, giving more earning options to its users. Since RLUSD is available on the Ethereum and XRP Ledger networks, it can be used by general and institutional investors. This arrangement also facilitates liquidity and transfer between the networks and makes it easier to transact with RLUSD in real-world payments.

Multichain expansion and enterprise focus

RLUSD runs on more than one blockchain, which helps its adoption. Ethereum supports smart contracts, while the XRP Ledger allows fast, low-cost transactions. This setup lets developers build payments or DeFi applications using the stablecoin. Each RLUSD is backed by U.S. dollars, short-term treasuries, and other cash equivalents, with monthly reports to maintain transparency and regulatory compliance.

Ripple is also working with several exchanges besides Binance. In September, Bybit added RLUSD, letting users trade it against USDT, Bitcoin, Ethereum, XRP, and Mantle (MNT). Traders can deposit and withdraw RLUSD on both Ethereum and XRP Ledger, giving them more flexibility and options.

The stablecoin is available on platforms like Bullish, Uphold, Bitstamp, Moonpay, CoinMENA, ArchaxEx, and Bitso. It is currently the 54th largest cryptocurrency, with a market value of around $1.33 billion and trading close to $0.9997, according to CoinMarketCap.

Institutional integration and regulatory progress

Ripple’s RLUSD is finding favor outside of crypto trading platforms. Large financial institutions such as BlackRock and VanEck have already integrated RLUSD in their tokenized funds. Ripple also got conditional approval to operate as a federally regulated trust bank, meaning RLUSD is now overseen at both state and federal levels, making it highly transparent and trustworthy.

The stablecoin is also set to expand onto Layer 2 networks, including Optimism, Base, Ink, and Unichain. Using Wormhole’s Native Token Transfers (NTT) standard, RLUSD can move securely across chains. Consequently, this multichain expansion supports emerging enterprise demand for on-chain liquidity and cross-border payments.

Market implications and global adoption

However, S&P Global warned that the use of stablecoins could disrupt the economies of emerging markets. This is because stablecoins could affect exchange rates and reserves held by central banks. According to The Banker, Mohamed Damak, the global head of Islamic Finance at S&P Global Ratings, said, “Stablecoin-related flows could pressure balance of payments, affecting exchange rates and foreign reserves.”

Even with potential risks, data from TRM Labs cited by The Banker shows emerging markets use stablecoins the most, led by India, Pakistan, the Philippines, and Brazil. Clear regulations will be important as RLUSD grows worldwide.

RLUSD’s launch on Binance makes it easier to use across multiple blockchains while boosting its availability and reach for users worldwide.

Also Read: Nansen Pivots to AI Execution with Solana and Base Trading

Billionaire Mike Novogratz’s Galaxy Digital is preparing to launch a $100 million hedge fund targeting crypto tokens and financial services stocks. The fund will invest up to 30% of its capital in cryptocurrency tokens, while allocating the remaining 70% to financial services stocks. 

According to a Financial Times report, Galaxy plans to invest in companies likely impacted by digital asset technologies and new regulations. The fund’s launch comes as Bitcoin has dropped about 29% from its October 2025 all-time high of $126,198. At the time of writing, as per CoinMarketCap data, Bitcoin (BTC) was trading at $89,226.56, down 2.15% in the last 24 hours, with a trading volume of $51.39 billion.

Joe Armao, head of the fund, emphasized that Galaxy Digital remains optimistic on Bitcoin, Ethereum, and Solana despite the downturn. “We aim to identify winning and losing companies,” he said, though he did not specify which tokens the hedge fund will buy. 

Galaxy Digital will also make a seed investment, but the exact size remains undisclosed. Sources told FT that the fund has already attracted family offices, high-net-worth investors, and larger institutions, with additional commitments expected before the official launch.

Hedge fund strategy and market position

The fund mixes crypto investments with regular financial stocks, creating a “best of both worlds” approach. Besides buying crypto, Galaxy believes companies connected to digital assets could also gain. This strategy sets it apart from funds that only focus on crypto, helping balance potential rewards with lower risk.

However, there is scepticism about calling it a “crypto” fund. Jacob King, CEO of SwanDesk, wrote on X, “How are you going to call it a crypto fund when most of the holdings are NOT in crypto tokens?” He pointed to past controversies, like Galaxy’s role with LUNA, and warned investors to be cautious of hype-driven schemes.

Mike Novogratz’s Galaxy plans to launch a $100M crypto hedge fund.

The kicker? The fine print shows they’ll only invest 30% in crypto, with the rest (70%) going to stocks. How are you going to call it a crypto fund when most of the holdings are NOT in crypto tokens.

Anytime…

— Jacob King (@JacobKinge) January 21, 2026

Nevertheless, Galaxy has demonstrated transparency in managing large crypto positions. Last month, the firm moved 900 BTC, valued at $81.59 million, to a new wallet, confirmed by blockchain tracker Lookonchain. Additionally, Galaxy executed an 80,000 BTC sale earlier this year for a Satoshi-era investor, described as part of the client’s real estate planning. These moves indicate active portfolio management and ongoing market influence.

Exploring prediction markets

Beyond its hedge fund work, Galaxy is also exploring prediction markets, working with platforms like Polymarket and Kalshi Inc. Novogratz noted, “We’ve been doing some small-scale experimenting with market-making on prediction markets.”

If the effort grows, the firm could help keep markets active by constantly posting buy and sell orders, which stabilizes prices and draws in more users. Moreover, this liquidity support can build trust in these new markets and strengthen Galaxy’s overall presence.

Also Read: Grayscale Moves to Add Spot ETF for NEAR Token Within Its Products

On-chain analytics provider Nansen has unveiled an AI-powered trading solution, giving crypto traders a seamless platform that combines market analysis and execution, starting with Solana and Base networks. 

With its proprietary dataset of more than 500 million labeled wallet addresses, Nansen aims to make on-chain trading workflows seamless. According to the firm, users can engage the AI agent via its web terminal or mobile app to gain recommendations backed by data, all while retaining full control of each and every transaction.

The solution, called Nansen AI, allows for what the firm has labelled as “vibe trading,” where analysis and execution happen in the same chat window. The platform operates under user-defined rules and does not take custody of funds. Nansen confirmed the launch on X thread, stating, “Today, we’re opening up a new way to trade for 𝒂𝙡𝒍 users.” 

Last month, we launched Trading Beta for paid users.
Today, we're opening up a new way to trade for 𝒂𝙡𝒍 users.

🧵 👇 pic.twitter.com/J5X5uTuMKV

— Nansen 🧭 (@nansen_ai) January 21, 2026

Besides simplifying trading, the platform integrates liquidity from Jupiter on Solana and OKX DEX on Base. Cross-chain transactions are routed via LI.FI, and the embedded Nansen Wallet uses Privy infrastructure to ensure self-custody for users.

AI integration in crypto trading

This launch is part of a bigger trend of AI tools in crypto. As part of them, Coinbase’s Payments MCP, announced in October 2025, lets AI handle money directly on the blockchain. Now, AI can create wallets, move funds, and send stablecoins—all without needing any coding skills. This means AI can manage financial tasks safely while keeping everything transparent for users.

Each wallet features set limits on spending, approval, and usage. In addition, Payments MCP is paired with various platforms for artificial intelligence, including Anthropic’s Claude, Google’s Gemini, OpenAI’s Codex, and Cherry Studio, which indicates that crypto platforms and artificial intelligence solutions are starting to integrate better.

However, Binance CEO Changpeng Zhao (CZ) has warned earlier that many AI projects focus too much on launching their own tokens. He said, ‘While crypto is the currency for AI, not every agent needs its own token. Agents can take fees in an existing crypto for providing a service.’ CZ’s point is that projects should focus on useful services instead of creating tokens just to raise money

He stressed that projects should focus on real use cases instead of just raising money with tokens. Otherwise, they often lose investor trust. As a result, some AI tokens experience big ups and downs in their prices.

Mixed performance among AI tokens

Data from CoinMarketCap supports some of this community caution as it shows uneven performance for AI-focused crypto tokens. At the time of writing, Superintelligence Alliance (FET) was trading at $0.2390, down 17.86% over the week, while Virtuals Protocol (VIRTUAL) declined 23.27% weekly to $0.8197. OriginTrail (TRAC) showed a minor 0.09% hourly gain but fell 9.19% over the week. 

Although, in contrast, Kite (KITE) rose 11.03% weekly to $0.1050, and Unibase (UB) gained 3.22% over 24 hours to $0.03617. These figures indicate that while some AI-driven projects gain traction, others struggle to generate sustainable market confidence.

Nansen’s AI trading tool is reflective of how crypto trading is becoming simpler and smarter. It makes trading faster, combines multiple tools in one place, and lets users stay in full control of their money.

Also Read: Solana Mobile Unveils SKR Token Airdrop for Seeker Phone Users

Crypto markets are facing a pivotal moment as Patrick Witt, Executive Director of the President’s Council of Advisors for Digital Assets, urges the rapid passage of a market structure bill in a recent post on X.  

“There will be a crypto market structure bill — it’s a question of when, not if,” Witt wrote. He stressed that a multi-trillion-dollar industry cannot function indefinitely without clear rules. 

“No bill is better than a bad bill.”

What a privilege it is to be able to say those words thanks to President Trump’s victory, and the pro-crypto administration he has assembled.

But let’s not kid ourselves. There *will* be a crypto market structure bill — it’s a question of…

— Patrick Witt (@patrickjwitt) January 21, 2026

Witt argued that passing legislation under a pro-crypto administration and cooperative regulators could prevent more restrictive future laws. “You might not love every part of the CLARITY Act, but I can guarantee you’ll hate a future Dem [ Democrates’] version even more,” he added.

The Senate Banking Committee recently circulated a draft crypto market structure bill, signaling lawmakers’ intent to formalize digital asset regulations. The bill focuses on stablecoins, tokenized securities, and decentralized finance (DeFi) platforms. 

Witt urged stakeholders to act now, warning that delays could allow future administrations to impose harsher rules. “Do we take advantage of the opportunity to pass a bill now, with a pro-crypto President, control of Congress, excellent regulators at the SEC and CFTC to write the rules, and a healthy industry? Or do we fumble the ball and allow Dems to write punitive legislation?” he asked.

Key restrictions on stablecoin yield

One of the most notable provisions limits interest on stablecoin holdings. The draft distinguishes between passive holding and activity-based rewards. Users can earn rewards only if they engage in certain activities, such as staking, providing liquidity, posting collateral, or participating in governance. In other words, simply holding stablecoins will not generate yield.

This language benefits banks, which argue that yield-bearing stablecoins resemble unregulated deposits. For crypto firms, however, it restricts a key growth driver for stablecoins. For users, it reinforces that stablecoins are primarily meant for payments and settlements, not savings accounts. 

Industry concerns and Coinbase’s withdrawal

Coinbase recently pulled its support for the CLARITY Act, a key crypto law under discussion. CEO Brian Armstrong said parts of the bill could limit tokenized stocks, restrict DeFi platforms, and weaken Commodity Futures Trading Commission (CFTC) oversight. 

The White House called Coinbase’s move a “rug pull” and warned it might withdraw political backing unless the company agrees on stablecoin yield compromises. The situation shows how tricky it is to balance clear rules with protecting crypto innovation.

Crypto users also sounded the alarm. X user Optictopic warned that rushing the bill could lock in loopholes that mostly help big players, saying, “Crypto is not a lobbying category to be stabilized; it is emerging infrastructure.” Bill Hughes added that lawmakers might quietly insert small, punishing rules into larger bills, which could limit the market’s flexibility over time.

Another X user who goes by the name jhug, suggested an opt-in reward system where Coinbase could allow USDC rewards without linking them to payment rails. He called for immediate engagement with banking lobbies to finalize the bill.

Also Read: Grayscale Moves to Add Spot ETF for NEAR Token Within Its Products

Solana Mobile has launched SKR token for its Seeker phone ecosystem. The company announced that users and developers from Seeker Season 1 can now claim their SKR allocations. In total, over 100,000 users and 188 developers are eligible, with nearly 2 billion SKR tokens set for distribution. 

According to Solana Mobile’s blog post, this airdrop is in line with the strategy for coordination of rewards and participation for users, developers, and stakeholders of this platform. SKR is known to be the base token within the Seeker ecosystem. The token will be used for various activities such as governance, staking, and ensuring security within this platform. 

Users can claim and stake SKR through the Seed Vault Wallet on Seeker phones. Once staked, these tokens start earning rewards right away, with updates happening every 48 hours. There’s no commission on staking at launch. Users have 90 days to claim their tokens, and any unclaimed SKR will go back into the pool for future distribution.

Seeker Season 1 performance and SKR role

Seeker Season 1 showed how an open mobile platform can increase activity for both users and developers. Since Seeker launched in August 2025, the platform handled around 9 million transactions across 265 decentralized apps, generating $2.6 billion in trading volume. Hundreds of apps were added during this time, showing strong engagement from both developers and users. 

SKR gives users and developers a way to earn rewards while participating in the network. When people stake SKR, they help secure the platform and take part in governance. Guardians—run by Solana Mobile or future third-party operators—check devices, oversee app reviews, and enforce community rules. This setup helps make sure everyone’s incentives are aligned across the platform.

The Seeker phone is unlike other smartphones available in the market. It is designed to support decentralized apps, token management, and mobile payments in a way that different smartphones have limitations when it comes to app stores. The SKR token is integrated with all these elements to ensure the system runs smoothly while aligning parties’ incentives. 

Tokenomics and launch strategy

The total supply of SKR will be 10 billion tokens, out of which, 30% is allocated for airdrops, and two-thirds of that is for Seeker users and developers. Immediately on-chain at the launch, 2.7 billion tokens are unlocked for community treasury, liquidity, and growth initiatives. 

Solana Mobile team will receive 15%, and Solana Labs have 10% allocation, each on a four-year vesting schedule. The token implements a gradual inflation model, starting at 10% in year one, to reward early adoption. 

Marino, a blockchain analyst, noted that the low initial fully diluted valuation (FDV) of ~$90 million reduces sell pressure and encourages organic price discovery. At the time of launch, SKR traded at ~$0.011, reflecting early interest while leaving room for growth. 

The ecosystem is also seeing real benefits when users stay active. Between January 12 and 18, 2026, Solana dApps generated over $28 million in revenue. Apps like Pump.fun led much of this activity through memecoin trading. This shows that active participation can create real revenue, even when token prices go up and down.

Seeker Season 2 and future growth

Seeker Season 2 is already underway, with partners like Orb by Helius and Loopscale joining in. Users now have access to new apps, early features, and rewards across areas like DeFi, gaming, and DePIN. This shows ongoing activity on the platform and gives both users and developers ways to engage with the ecosystem.

SKR also plays a role in governance and rewards, helping the platform run smoothly as it grows. Toly, Co-Founder of Solana Labs, noted that early users could benefit over the long term, while Priadka, a popular trader, pointed out risks if the platform’s valuation drops below $100 million. This shows why careful token distribution and adoption are important for keeping the system balanced. 

Also Read: Chainlink Launches 24/5 Data Streams for U.S. Stocks and ETFs

Strategy, formerly MicroStrategy, has continued its Bitcoin buying, pushing its total holdings past 700,000 BTC. The company spent $2.13 billion to buy 22,305 Bitcoin at an average price of $95,284 each, according to a recent 8-K SEC filing. 

This brings Strategy’s total Bitcoin stash to 709,715 BTC, acquired for roughly $53.92 billion at an average of $75,979 per coin. 

In an X post on Tuesday, Strategy CEO Michael Saylor confirmed the purchase, stating, “Strategy has acquired 22,305 BTC for ~$2.13 billion at ~$95,284 per bitcoin. As of 1/19/2026, we hodl 709,715 $BTC acquired for ~$53.92 billion at ~$75,979 per bitcoin. $MSTR $STRC.”

Strategy has acquired 22,305 BTC for ~$2.13 billion at ~$95,284 per bitcoin. As of 1/19/2026, we hodl 709,715 $BTC acquired for ~$53.92 billion at ~$75,979 per bitcoin. $MSTR $STRC https://t.co/pJM0Yuy32w

— Michael Saylor (@saylor) January 20, 2026

This latest purchase adds to the firm’s promise that they are serious about holding Bitcoin for the long term. As per the SEC filing, the company paid for it by selling MSTR, STRC, and STRK stocks, raising $1.8 billion, $294 million, and $3.4 million. Just a few weeks ago, the firm bought 13,627 BTC for $1.25 billion, continuing its pattern of consistent accumulation.

Strategy’s acquisition approach

Strategy turns its own stock into Bitcoin by regularly issuing shares, basically using money from the markets to keep buying digital gold. This method also lets the company keep cash on hand while steadily growing its Bitcoin stash.

Since December 2025, Strategy has made smaller buys, slowly increasing its holdings from 672,497 BTC to 673,783 BTC by early January. This way, the company spreads out its risk and takes advantage of price dips without rushing. As of now, Strategy holds over 3% of Bitcoin’s total supply.

Market implications

According to CoinMarketCap, Bitcoin is currently trading at $90,817, with $35.95 billion in trading volume in the past 24 hours, down 2.29% for the day. Strategy’s buying shows that big investors still have a strong interest in Bitcoin, even when prices swing.

Additionally, MSTR stock rose to $173.71 on January 16, up 1.64%, showing that investors trust the company’s approach. 

Strategy’s big Bitcoin milestone shows that big companies still trust Bitcoin to protect against inflation and falling currency values. On top of that, the company has a smart, steady plan to keep holding Bitcoin for the long term.

Also Read: Bitcoin Fear & Greed ‘Golden Cross’ Sparks Rally Hopes

Bitcoin (BTC) traders are on alert as market sentiment shows signs of a potential rally. The cryptocurrency is currently trading at $91,229.88, with a 24-hour trading volume of $35.35 billion, down 1.84% over the past day, as per data from CoinMarketCap.

CryptoQuant analyst MorenoDV_ pointed out that the 30-day Fear & Greed Index recently rose above the 90-day average for the first time since May 2025. This “golden cross” shows that short-term optimism is finally decoupling from long-term “bear fatigue,” potentially setting the stage for a push back toward $97,000 despite the geopolitical firestorm currently erupting between Washington and Europe.

Bitcoin Fear and Greed Golden Cross Signals Potential Rally

“Historical pattern analysis reveals bullish sentiment shift as 30-day MA crosses above 90-day MA for the first time since May 2025” – By @MorenoDV_ pic.twitter.com/rvXzxCtAVV

— CryptoQuant.com (@cryptoquant_com) January 20, 2026

The crossover reflects a behavioral pattern observed in prior months. MorenoDV_ explained that such shifts usually occur after prolonged fear phases and often align with local price consolidation zones rather than major market tops. He added, “The key signal is not whether sentiment is fearful or greedy, but how it is changing relative to its own trend.” 

Historically, Bitcoin prices tend to respond positively in the weeks following these crossovers, especially when price structures show higher lows and absence of aggressive distribution.

Whale activity shifts

Meanwhile, whale behavior on major exchanges has changed dramatically. Analyst Darkfost noted a collapse in large BTC inflows to Binance, a trend linked to selling pressure. Inflows from transactions of 100 BTC to over 10,000 BTC have dropped from nearly $8 billion monthly in late November to $2.74 billion today. 

Darkfost observed, “This shift in dynamics suggests that whales have changed their behavior. They are no longer selling aggressively and now appear to favor waiting.”

Earlier, big Bitcoin holders, or “whales,” sold a lot of BTC when the price dropped below $85,000, which added to market chaos. Now, things look calmer, as these whales are holding onto their coins instead of selling. Moreover, a Bitcoin wallet that had been inactive for 13 years recently moved 909 BTC, worth about $85 million today. 

💤 💤 💤 💤 💤 💤 💤 💤 💤 A dormant address containing 909 #BTC (84,588,851 USD) has just been activated after 13.2 years!https://t.co/Bn1F97iP78

— Whale Alert (@whale_alert) January 19, 2026

This shows that even owners who stayed out of the market for a long time are starting to get involved again—but carefully. In 2026, these “ancient” moves are often viewed as whales re-positioning for a “supercycle” peak rather than a simple exit.

Price action and technical levels

According to TradingView data, Bitcoin was very volatile on January 19, 2026. Earlier this month, it reached highs around $97,000 but then fell below key technical levels called the 50-period and 200-period moving averages. Traders are now watching $91,000 as a possible support level, while $94,000 to $95,000 could act as resistance if prices try to bounce back.

This correction may only be a minor setback and not necessarily a reversal of Bitcoin’s overall positive trend. In fact, looking at the January price patterns, Bitcoin has been recording higher highs and higher lows. This implies that its overall positive trend remains strong.

The fact that BTC is holding the $91k support level amidst “trade war” headlines is a major win for the bulls. It suggests that the “Golden Cross” sentiment is absorbing the macro shock better than traditional risk assets.

It’s also worth noting that broader economic factors are adding extra pressure on Bitcoin. New tariff threats between the U.S. and Europe, sparked by the U.S. President Donald Trump’s comments on Greenland, have pushed investors toward safer assets like gold and silver. European leaders warned that these tariffs could set off a negative chain reaction, adding more uncertainty to the crypto market.

Also Read: Chainlink Whales Accumulate as LINK Trades Near Yearly Lows

Chainlink (LINK) is under intense scrutiny as its price dropped nearly 50% over the past year. As retail traders sell off amid fear, uncertainty, and doubt (FUD), the top 100 LINK whales are quietly increasing their holdings. 

At the time of writing, LINK was trading at $12.57, down 1.52% in the last 24 hours, with a $321 million trading volume, according to data from CoinMarketCap. The broader crypto market has also dipped, with the total capitalization at $3.07 trillion, down 1.94% in a day, while total trading volume fell by 8.33% to $99.96 billion.

As the price slipped below the $13 psychological floor—marking a nearly 50% retracement from 2025 highs—retail sentiment has turned “extreme fear.” Yet, on-chain data reveals a different story, the whales have quietly accumulated 16.1 million LINK tokens since November.

🔗📈 The top 100 Chainlink whales have resumed their accumulation as the asset has dipped back down below $13. As retail sells off due to impatience & FUD, it's common to see smart money gather up more $LINK to prepare for (or cause) the next pump. pic.twitter.com/AeOaj6H3xE

— Santiment (@santimentfeed) January 19, 2026

Despite the fact that the price is range-bound, these significant holders continually boost their holdings in preparation for a possible positive trend. However, one of Binance’s wallets alone has in excess of 52 million LINK, which is equivalent to 5.2% of the LINK supply. Another non-exchange wallet also possesses close to 41 million, with two other wallets having 30 million each.

Accumulation trends and market behavior

On-chain data reveals a mixed trend. The Accumulation/Distribution (Accum/Dist) line has been flat around 369.68 million, which indicates slow accumulation and distribution. Also, the On-Balance Volume (OBV) indicator has been moving down at 316.92 million. The Accumulation/Distribution (A/D) line is usually used to show if investors are buying or selling, while OBV tracks volume flow with price moves.

Despite this, long positions remain a favorite among traders. Binance traders registered a 2.01 ratio for their long/short position according to Coinglass data. The top traders on Binance are more optimistic with a figure of 2.56. OKX traders also register a strong ratio of 2.84 in favor of the long position.

Nevertheless, liquidations give insight into potential dangers for trading over shorter time frames. Over the last 24 hours, long contracts lost $217.54K more than shorts by $3.3K. The same is observed over smaller time frames. For instance, there is more risk involved in the long contracts since retail investors tend to act impulsively.

MEXC and Binance lead LINK futures

Most Chainlink futures trading happens on MEXC and Binance, which dominate the market. CoinGlass data shows MEXC handles about $205 million, while Binance sees $150 million in trades. Other exchanges like OKX, Bybit, and WhiteBIT have much smaller activity, around $36–$50 million. Smaller platforms such as LBank and Gate trade under $16 million, showing that most of the action is concentrated on just a few big exchanges.

Although there are price fluctuations in the short term, there is potential for the long term as well. Analyst Quinten Francois said, “Some people are interested in the tech and are enthusiastic about projects such as Chainlink, which are revolutionizing the financial world.” He explained that instead of focusing on price fluctuations, one should look at the innovation brought by Chainlink.

I’m so tired of people crying about the $LINK price and posting toxic comments on every post I do about it.

Some people care about the tech, and get excited about projects like Chainlink who are changing the financial world how we know it. Yes I’m invested in their token too,… https://t.co/6eTfdZPmPP

— Quinten | 048.eth (@QuintenFrancois) January 20, 2026

Large Chainlink holders are buying more as smaller traders sell in reaction to fear. Short-term losses are affecting retail traders, while long-term investors focus on the project itself. The pattern suggests experienced holders expect future price changes, making current lower levels a point of increased activity.

Also Read: The 4-Year Cycle is Dead, It’s All About Liquidity Now: Wintermute

Winermute, the leading crypto market maker, believes that the old four-year crypto cycle is over, and 2026 could look very different. According to their latest report, crypto prices are no longer following predictable seasonal patterns. Which coins move up now completely depends on where capital is flowing and what investors are paying attention to. 

This change has shook old beliefs about how capital moves in the crypto market and makes it unclear which altcoins or big cryptocurrencies will do well next. “The traditional four-year cycle is becoming obsolete. Market performance is no longer dictated by self-fulfilling timing narratives, but by where liquidity flows and investor mindshare concentrates,” the firm stated. 

As per the report, exchange-traded funds (ETFs) and digital asset treasuries/trusts (DATs) are ‘walled gardens’ where funds were continuously channeled towards major cryptocurrencies in 2025, making it more difficult for smaller ones to be in the spotlight. Consequently, the period when altcoins rallied averaged only 20 days, compared to an average of 60 days in 2024, with the majority of new investments flowing into major digital currencies.

What changed in 2025

In the past, when Bitcoin (BTC) rose, the gains usually trickled down to Ethereum (ETH), then other big tokens, and finally smaller altcoins. But last year, Wintermute’s data shows this pattern weakened. 

Traders moved away from just chasing volume and started using smarter, more controlled strategies. Over-the-counter (OTC) trading is becoming more popular because it lets investors handle bigger trades quietly and with more control, especially as the market liquidity thinned

The big institutional traders started getting more participation during the last year as well. According to Wintermute, they are now more accustomed to dealing with structured products, derivatives, and complex trading strategies rather than simple buy-and-hold trades. 

Even though there have been weak price movements during 2025, they are still around, and that reveals that the market is turning out to be more professional and methodical regarding trading.

Moreover, macroeconomic factors diverted retail attention. Investors favored equities in AI, robotics, and quantum technologies. Crypto lost its position as the go-to risk asset for retail. 

Consequently, capital inflows became episodic, reacting to headlines rather than following seasonal swings. ETFs and DATs funneled liquidity into majors, while stablecoins acted as an additional inflow channel. These structural changes, Wintermute argues, make the traditional four-year cycle obsolete.

Looking ahead: Three paths for 2026

Wintermute sees three ways crypto could grow in 2026. More tokens like SOL and XRP could be added to ETFs and other funds, giving investors additional choices. Besides, leaders like Bitcoin and Ethereum might surge and eventually help smaller coins rise too. 

Further, if investors shift from stocks to back to crypto, it could bring in fresh money and increase stablecoin activity. While this is the least likely scenario, it would make crypto more popular with traders. 

At the same time, many traders are using advanced tools like OTC derivatives and options to manage risk and stay in control. Token use in Contracts for Differences (CFDs) has tripled, and options trading has more than doubled, showing that investors are relying more on these strategies to handle trades smartly.

Also Read: Magic Eden CEO Unveils Token Buyback Program, Predicts Supercycle

Pump.fun has announced a $3 million Build in Public (BiP) Hackathon, changing how startups get funding. Backed by Pump Fund, its new investment arm, the program helps early-stage projects raise funding in a more simple and open way.

Instead of relying on traditional investors, this initiative will let the community decide which projects will succeed via tokenization. Project founders will receive funding directly from users who bet on their ideas early, removing barriers and empowering creators. 

Introducing the $3,000,000 Build in Public Hackathon

Brought to you by Pump Fund – pump fun’s New Investment Arm

It’s time to completely reimagine how early-stage projects are built and funded.

Learn more 👇 pic.twitter.com/l1TJcxv1J0

— Pump.fun (@Pumpfun) January 19, 2026

The BiP Hackathon will give 12 projects $250,000 each. The team also gets guidance from Pump.fun founders and joins their widely recognized and supportive community. To enter, projects must create a token, keep at least 10% of it, and share their progress publicly. 

The initiative also encourages posting updates, building communities, and streaming on Pump.fun. Projects at any stage or in any field can apply, and winners will be announced within 30 days after applications close on February 18, 2026.

Changing the funding game

Pump.fun Co-Founder Alon highlighted the challenge founders face in reaching users. He explained, “Distribution was such a huge challenge for us that one of my only New Year’s resolutions EVER was to get 10k followers on X in 2024.” 

Alon noted that tokenizing projects allowed instant funding while directly engaging communities. “Projects began launching tokens because they knew that 1) users loved buying into fresh ideas, and 2) there were millions of those kinds of people, which could become potential users and investors,” he said. 

He also emphasized that Pump.fun will roll out “major product updates” and incentives to draw founders seeking funding, exposure, and long-term traction.

There’s no one better positioned than pump fun to capture this opportunity.

Pump fun has the highest number of active users, liquidity, and distribution by far, and has a previous track record of builders and success cases to learn from.

We’re going to be making significant…

— alon (@a1lon9) January 19, 2026

Kosgood, another key figure from the Pump.fun team, emphasized the scale of untapped talent. “AI just gave millions the ability to build. But most are still locked out: broke geniuses who can’t play the VC game. Portfolio companies with legit products being ignored. Builders trenching $100k MC shitters just to eat.” 

The hackathon seeks to unlock this talent, providing opportunities to skilled founders who would otherwise struggle to access capital.

Pump.fun’s market impact

Since launching on January 19, 2024, Pump.fun has changed how people create and trade tokens. It has made launching a token simple and added safety checks with the aim to protect users from scams. The platform has grown into a top revenue generating protocol quickly, now hosting over 13 million tokens, earning more than $1 billion in fees, and raising $1.3 billion in a major token sale.

It’s worth noting Pump.fun beats competitors like BisonFi, HumidiFi, Raydium, and Meteora with a wide margin, which all see solid but smaller activity. Pump’s top spot shows strong trading activity and mass user participation. 

Last month, Pump.fun launched Spotlight to help promising token projects on Solana get noticed. The program boosts visibility, makes trading easier, and helps new projects grow steadily. In the same spirit, the BiP Hackathon supports startups and strengthens Pump.fun’s platform even further.

Also Read: Solana Trader Flips $285 to $627K on ZReaL Token in Under 24 Hours

The digital asset market is currently caught in a violent tug-of-war between record-breaking institutional appetite and sudden “Tariff-Man” volatility. Last week, global crypto investment products attracted US$2.17 billion in inflows-marking the largest weekly total since October 2025. 

As per the report, tensions over Greenland and new tariff threats caused investors to pull out US$378 million. Market optimism also eased after news that Kevin Hassett, a top candidate for the next US Fed Chair, might stay in his current role. 

Despite this challenge, investments into the company saw significant entries in various countries, topped by the US at US$2.05 billion. This was followed by investments in Germany at US$63.9 million, Switzerland at US$41.6 million, Canada at US$12.3 million, and the Netherlands at US$6.0 million.

The leading cryptocurrency was Bitcoin, drawing US$1.55 billion showing strong investor confidence in the asset. Ethereum and Solana followed with US$496 million and US$45.5 million, respectively, even though discussions on the CLARITY Act might put a limit on the returns from stablecoins.

Altcoins and blockchain equities gain traction

Other cryptocurrencies also saw healthy investments. XRP led with US$69.5 million, followed by Sui, LIDO, and Hedera with smaller but notable amounts. Blockchain-related stocks did well too, attracting US$72.6 million. This shows that investors are increasingly seeing digital assets as part of regular financial strategies, not just a side market.

The report follows a Last month report by CoinShares’ report that said that 2026 could be a big year for crypto adoption. Per the report, Combining traditional finance with digital assets is already changing how money moves, how markets work, and how institutions invest.

Jean-Marie Mognetti, CEO of CoinShares, said, “Digital assets are no longer operating outside the traditional economy. They are increasingly embedded within it.” Growing tokenized funds, companies buying Bitcoin, and the US government reserves all point to a wider adoption wave. Stablecoin usage is now comparable to Visa and Mastercard, with the market projected to hit US$3 trillion by 2030.

According to James Butterfill, Head of Research at CoinShares, early-week optimism drove significant investment, but sentiment turned cautious on Friday. 

Why did the momentum stall on Friday?

Markets reacted poorly to signals that Kevin Hassett—the pro-crypto, ultra-dovish candidate—may stay at the NEC rather than lead the Fed. This cooled expectations for aggressive rate cuts in Q1.

President Donald Trump’s weekend threat of 10% to 25% tariffs on European NATO allies unless they facilitate a Greenland purchase sent the Nasdaq and BTC sliding in tandem.

Privacy coins defy market downturn

Additionally, privacy-focused cryptocurrencies performed exceptionally lately. According to CoinMarketCap, while Bitcoin fell 2.3% and many altcoins dropped 3 to10%, Dash rose 1.9% and Monero gained 8.3%. The broader privacy coin category surged 4% daily and 13.1% weekly.

Dash traded at $81.61, up 119% over the week, while Monero reached $644 after hitting an all-time high. DUSK surged 118% in 24 hours and 354% over the week, showing investor appetite for privacy assets.

Digital assets are becoming a bigger part of the global financial system. Bitcoin is attracting the most investment, and privacy-focused coins are gaining despite overall market drops. 

Also Read: Gold Wins the Risk-Off Trade as Bitcoin Drops Below $93K

Louisiana’s State Employees Retirement System (LASERS) has disclosed its holdings of 17,900 shares of Strategy (MSTR), marking the fund’s first major exposure to Bitcoin. The fund has held MSTR shares since late 2024, first disclosing the position on January 29, 2025.

Although cash holdings remain undisclosed, this shows that big institutions are getting more confident in crypto. State pension funds usually play it safe, but Louisiana’s move shows public institutions are starting to see digital currency as a serious investment.

JUST IN: $15.6 billion U.S. Louisiana State Employees Fund just reported holding 17,900 ($3.2 million) #Bitcoin treasury company Strategy $MSTR shares. pic.twitter.com/q5quvFjH7r

— BitcoinTreasuries.NET (@BTCtreasuries) January 19, 2026

Besides Bitcoin, the retirement fund also holds big tech companies like NVIDIA, Apple, Microsoft, Amazon, and Alphabet. It recently added stocks like Pinterest, CRH, Solstice, Alnylam, and Ferrovial. By including Bitcoin, Louisiana is joining other states experimenting with digital strategies while still keeping an eye on risk and protecting against inflation.

Bitcoin adoption through MicroStrategy

MicroStrategy has become a preferred path for institutions seeking Bitcoin exposure. The company recently bought 13,627 BTC in early January, spending about $1.25 billion from selling shares. This brings its total Bitcoin holdings to 687,410.

The firm financed the trade by selling over 6.8 million Class A shares and 1.19 million Series A Perpetual Stretch Preferred Stock shares. Nearly all proceeds flowed directly into the crypto market, demonstrating a strategic approach to treasury management.

Louisiana’s choice of MicroStrategy for Bitcoin shows that big investors are starting to see crypto as a long-term store of value. Unlike traditional safe investments, Bitcoin can help protect against money losing value and economic ups and downs.

State-led cryptocurrency integration

Louisiana also leads in cryptocurrency adoption at the governmental level. Back in 2024, the state was the first to allow residents to pay for certain services using Bitcoin, Bitcoin Lightning Network, and USD Coin. The first payment went to the Department of Wildlife and Fisheries via the Lightning Network, a system developed in partnership with Bead Pay. 

Treasurer John Fleming explained, “In today’s digital age, government systems must evolve and embrace new technologies. We’re providing our citizens with flexibility and freedom.” Payments made in crypto are converted to U.S. dollars, mitigating volatility risks.

Louisiana also passed the Blockchain Basics Act in August 2024. The law blocks the state from using Central Bank Digital Currencies and protects Bitcoin users and miners. Sponsored by Representative Mark Wright and supported by Senator Jean-Paul Coussan, it ensures people can safely store and use their crypto without extra restrictions.

National context and trends

Louisiana’s move is part of a growing ‘Reserve Race’ among U.S. states. Texas bought Bitcoin after passing a law in 2024, and New Hampshire allows up to 5% of state funds in crypto ETFs. Arizona, Massachusetts, Ohio, and South Dakota are also exploring similar plans. 

Louisiana’s move into Bitcoin shows that both governments and big investors are taking crypto more seriously. The state is carefully balancing risk and innovation, setting an example for using digital money in public finance.

Also Read: Gold Wins the Risk-Off Trade as Bitcoin Drops Below $93K

As the decentralized perpetual (perp) market heats up, Aster is doubling down on its “Value-First” tokenomics. Following a week where it led the sector with $4 billion in daily volume, the decentralized exchange (DEX) has officially activated its Strategic Buyback Reserve.

Aster will now automatically deploy 20% to 40% of daily platform fees into buybacks, aiming to reduce circulating supply and respond to market conditions. 

Aster has already started buying back $ASTER tokens from its reserve wallet 0x5E…a397, and anyone can check the transactions on the blockchain. This step builds on last month’s Stage 5 Buyback Program, which used up to 80% of daily fees to repurchase tokens.

We're now actively deploying our Strategic Buyback Reserve for $ASTER token repurchases automatically.

Building on our Stage 5 Buyback Program announced last month, this activation allocates 20-40% of daily platform fees into targeted buybacks, responding dynamically to market… https://t.co/cIbles9eHM

— Aster (@Aster_DEX) January 19, 2026

Besides these automatic buybacks, Aster also uses a smart strategy that mixes regular daily purchases with a reserve fund. Around 40% of the fees go to daily automatic buybacks through wallet 0x47…301E, slowly reducing the total number of tokens in circulation.

Meanwhile, 20% to 40% is stored in the reserve address for opportunistic buys when market conditions are optimal. The Aster team ensures transparency with regular on-chain updates. “This reinforces our commitment to sustainable tokenomics and long-term holder confidence,” the exchange stated.

Aster is attempting to succeed where others—most notably Solana’s Jupiter—have recently struggled: creating a sustainable price floor through protocol revenue. Unlike the “Stage 5” program that burned through 80% of fees, this 20% to 40% range is more sustainable for long-term growth. It signals that Aster has reached a level of fee-generation where it can satisfy both token holders and treasury expansion.

Expansion of derivatives and shield mode

Aster also expanded its derivatives offerings. $LIGHT, $ZKP, and $IR now trade on Aster Perpetual with up to 5x leverage. To attract activity, the platform ran a limited promotion, providing a 1.2x symbol boost for trades until December 28, 23:59 UTC. Consequently, both beginner and experienced traders can explore new positions while potentially increasing returns.

Additionally, Aster added a new feature called Shield Mode to its perpetual futures platform. It lets traders use up to 1001x leverage on Bitcoin and Ethereum while keeping their strategies protected. Shield Mode reduces risks from public on-chain order books and provides a safer trading environment for both experienced and new users.

Comparisons with other buyback programs

Aster’s strategy is different from other crypto buyback projects. Jupiter, a Solana-based exchange platform, recently said it is rethinking its $JUP token buyback plan after it has spent more than $70 million in 2025. Jupiter Co-Founder Siong Ong pointed out that the buybacks didn’t move the token price much, which stayed around $0.21. He suggested using the funds instead to reward users or attract new ones, since buybacks had little effect on the market.

Similarly, the Optimism Foundation suggested using half of the Superchain’s revenue to buy OP tokens. The goal is to link the token’s value to network activity while managing revenue better. So far,  the Superchain handles 13% of all blockchain transactions and 61.4% of layer-two fees. If the plan is approved, half of future revenue will go toward buying OP tokens every month, and all purchased tokens will go back into the treasury.

Perpetual trading landscape

Cryptocurrency perpetual futures trading is growing at a high rate. As per DeFiLIama data, daily trading volume now reaches $19.9 billion, with open positions worth about $20.2 billion. Over the past 30 days, total trading topped $803 billion, even though weekly activity dipped slightly by 2.06%.

Among exchanges, Aster leads them with more than $4 billion traded in a single day and $2.6 billion in active positions. Over a week, Aster’s trading volume hits $31.6 billion, and over a month it exceeds $118 billion, showing strong and steady activity.

Hyperliquid comes in second, with a slightly lower 24-hour trading volume of $2.8 billion. However, it takes the lead when it comes to open interest, standing at $8.5 billion. Following Hyperliquid are Lighter, edgeX, and Variational, with each showing different levels of trading activity and user engagement.

Also Read: Hyperliquid Wins the Perp Wars as Lighter’s Volume Falls 70%

The “Gold vs. Bitcoin” battle is never going to end. Gold hit new highs on Monday, temporarily approaching $4,700 per ounce, driven by geopolitical tension and macro uncertainty. The move followed U.S. President Donald Trump’s announcement of 10% tariffs on eight European countries opposing the U.S. acquisition of Greenland. 

Besides worries about global tensions, investors also expected U.S. interest rates to drop, which boosted gold prices. People moved their money out of risky assets and put it into safer options like gold. As a result, gold has been climbing steadily since mid-2025, rising about 41% as investors looked for a more stable place to park their funds.

While gold climbed, Bitcoin (BTC) felt the weight of the geopolitical “risk-off” sentiment. The leading digital asset faced selling pressure, trading around $92,786 with a 24-hour volume of $34.18 billion. It fell 2.34% in the past 24 hours as per data from CoinMarketCap.

“US markets closed today, so investors are expressing their macro positions through BTC,” noted analyst Nic. He added, “If we fall below $90,000 before market open tomorrow, ETF holders may also start dumping.”

No better way to start the week than a tariff induced crypto crash.

US markets closed today so investors are expressing their macro positions through BTC.

If we fall below $90k before market open tomorrow, ETF holders may also start dumping. pic.twitter.com/6I1758isOC

— Nic (@nicrypto) January 19, 2026

Crypto markets feel the pressure

The sudden pullback wasn’t just a price drop; it was a flushing of the system. Bitcoin’s recent drop wiped out about $864 million in traders over the past 24 hours, mostly hitting investors holding long positions. Traders also reduced their leverage, showing caution in the market. 

While Bitcoin had a strong start to 2026, reaching nearly $98,000 last week due to spot ETF inflows, this “Greenland Pivot” shows that institutional appetite remains sensitive to macro instability. Altcoins followed suit, with major tokens seeing even sharper percentage drops than BTC, as investors favored the centuries-old stability of the yellow metal.

Traders are now waiting for Bitcoin to see if it holds above $90,000, the value that could decide how the retreat will play out. TradingView data indicates a brief BTC rebound at $93,110 following a decline to $92,648, registering a 0.35% rise. Bollinger Bands reveal tight and sudden consolidation patterns and breakouts, while the Moving Average Convergence Divergence (MACD) reveals bears despite the recent visible green candle. 

Bollinger Bands measure price volatility with upper and lower bands, while MACD indicates trend momentum and potential reversals.

Gold vs Bitcoin: A clear divergence

The performance gap between the two “stores of value” is widening. Since October 2025, Gold has maintained a steady upward trajectory, up roughly 41%, while Bitcoin has struggled with a 10% decline over the same period. 

Prominent gold advocate, Peter Schiff, highlighted this trend on X: “Gold is already trading at a new record high above $4,670, and silver is up over $93. Trump’s new tariffs and threats to invade Greenland are uniting the world against the U.S.,” Schiff added that global shifts are strengthening traditional safe-haven demand.

As Bitcoin teeters near the psychological $90,000 level, the coming days will determine if “Digital Gold” can regain its footing or if the capital rotation into physical bullion will continue to accelerate.

Also Read: BTC is Maturing: Why $50K Needs a Systemic Collapse, Not Just a Bear Market

The cryptocurrency market faced a severe shakeup during early-Monday Asian trading hours, with 24 hour liquidations surpassing $864 million. This sudden correction followed the U.S. President Donald Trump’s announcement of new tariffs on eight European countries, sparking fears of broader market instability.

Data from Coinglass shows that long positions took the hardest hit, with $783.4 million lost, while short positions only lost $80.8 million. As the sell-off picked up quickly, it caught traders off guard who were holding long positions. 

Asset-level losses highlight Broad sell-off

Market data from Coinglass further shows that in the past 12 hours, Bitcoin led a major market shakeout, with about $228 million in liquidations, followed by Ethereum at nearly $127 million. Altcoins also took a hit, with most of the losses coming from long positions, showing that traders betting on price rises got caught off guard.

Over the full 24 hours, total liquidations jumped to $871 million, with long trades making up $788 million of that. Bitcoin again led the pack at $230 million, and Ethereum followed with $155 million. Highlighting the widespread market stress, other altcoins collectively lost $133 million, while Solana, XRP, and Dogecoin witnessed $61 million, $41 million, and $35 million, respectively. 

Macro factors trigger market turbulence

A Bloomberg report noted that Trump’s proposed tariffs, starting at 10% in February and rising to 25% in June, shook global markets. European leaders have pushed back, potentially halting last year’s trade agreement, while U.S. equity-index futures fell. Meanwhile, haven assets like gold and silver surged to record highs, signaling investor caution. 

Richard Galvin, Co-Founder of institutional investor DACM, said the crypto drop is “a risk-off move more than anything crypto-specific.” Earlier this year, Bitcoin had climbed close to $98,000, boosted by strong ETF inflows and a rebound after previously oversold conditions.

Market metrics and sentiment

As of writing, according to data from CoinMarketCap, Bitcoin was trading around $92,640, down about 2.5% over the past 24 hours. Ethereum dropped 3.35% to $3,201, while XRP fell 4.66% to $1.96. Overall, the total crypto market value slipped 2.7% to $3.13 trillion. At the same time, trading activity surged, with $101.44 billion trading in the last 24 hours—a jump of more than 69%.

The Fear and Greed Index sits at 45, showing that traders are feeling neither too nervous nor too greedy—basically, the market is neutral. Meanwhile, the Altcoin Season Index is 26, which means Bitcoin is currently outperforming most other cryptocurrencies. 

Bitcoin makes up 59.1% of the total crypto market, while Ethereum holds 12.3%, and all the other altcoins share the remaining 28.6%. Traders are very active in derivatives markets, with $659 billion tied up in perpetual contracts, far more than the $3.7 billion in futures.

Also Read: Vitalik Calls for Ethereum Simplification to Preserve Security

A trader on the prediction market platform Polymarket has drawn attention for posting a new record in predicting Elon Musk’s activity on X. Over five months, this trader achieved around 80% accuracy, netting $267,613 in profit solely from markets linked to Musk’s posts. 

According to researcher Izlam post on X, the account, called Annica, only bets on Elon’s posts. The trader carefully buys at low prices to make steady, small profits across different possibilities. This shows they really understand patterns, rather than just getting lucky. Data from Polymarket confirms the unusual activity. However, some conspiracy theorists have suggested that the trader could be Musk himself.

I just found Elon Musk’s account on Polymarket

this trader made $267,613 trading ONLY Elon tweet markets

he’s doing this with an insane ~80% accuracy, predicting Elon’s post counts for 5 months straight

profile – https://t.co/A4eT5Keqf7

he didn’t spread himself across all… pic.twitter.com/hhxntPnMBS

— izlam (@bckfv_eth) January 16, 2026

How the trader wins big

Earlier insights from Lookonchain reveal another trader following similar moves. According to the platform, the trader is not gambling but actually probability trading. “Most of his trades focus on one repeating question: ‘Will Elon Musk post X–Y tweets this week?’” Lookonchain explained on X. The platform’s range-based markets let traders cover multiple outcomes simultaneously. 

How this Polymarket trader made $106K in 1 month

Low win rate.
Huge profits.
This isn't luck — it's probability.

1/ Let's break down how trader sb911 did it 🧵 pic.twitter.com/41BaaBrg0n

— Lookonchain (@lookonchain) January 11, 2026

As a result, the trader enters positions at minimal prices, often just a few cents per share, while capturing massive payouts when the correct range hits. For example, sometimes it cost around $1,100 with payout of $79,000, producing over 6,600% ROI.

However, this strategy accepts frequent losses too, as most trades go to zero. Lookonchain noted: “Yes — most positions go to zero. That’s not a mistake. It’s the design.” By compounding small wins over repeated cycles, the trader achieves a smooth and consistent P&L growth. 

A user on X commenting on Annica’s bet added: “He never waits for the final market resolution, takes positions across almost every outcome, and slowly exits on price spikes.” This disciplined methodology explains the extraordinary profit despite limited wins.

Could it really be Elon Musk?

Although it is an impressive streak, it is highly unlikely that the trader is Elon Musk himself. Analysts have pointed out that although the accuracy level reflects the posting pattern of Elon Musk, the algorithmic trading pattern can be employed by any good trader who follows past trends.

The anonymity of the Polymarket and its focus on statistical probabilities mean that anyone with knowledge has the potential to profit without having to gain direct knowledge of Elon Musk. Thus, while the edge of the account appears to be inspired by the ways of Elon Musk, the account is probably the work of an extremely astute observer and not Elon Musk.

Polymarket faces regulatory challenges

Besides these big trading wins, Polymarket is facing some legal challenges. Ukraine recently blocked access, saying the platform is unlicensed gambling. The country’s Resolution No. 695 shows regulators are keeping a close watch, especially after carefully reopening gambling in 2020. As a result, users in Ukraine might not always be able to access the site, showing how tricky the rules can be for prediction markets worldwide.

Moreover, other traders have made impressive gains too. An example that took place recently is ascetic0x, who turned just $12 into more than $100,000 by betting on Bitcoin prices. Stories like this therefore, show that Polymarket can reward smart, careful strategies, but they also highlight the risks of using a platform that isn’t fully licensed. 

Also Read: Crypto User Loses $500K USDT in Ethereum Address Poisoning Scam

A massive crypto theft, recently coming into the spotlight, has sent Monero (XMR) prices soaring. On-chain investigator ZachXBT confirmed that the hacker turned some of the stolen funds into XMR, which caused its price to spike briefly as privacy coins saw higher demand. 

According to blockchain analytics platform Lookchain, a hacker exploited a hardware-wallet via social engineering scam, stealing over $282 million in Litecoin (LTC) and Bitcoin (BTC). The attacker later used THORChain to swap 818 BTC (worth $78 million) into 19,631 Ethereum (ETH), 3.15 million Ripple (XRP), and 77,285 Litecoin (LTC), and some of it to XMR, spreading the stolen money across different cryptocurrencies and networks.

According to @zachxbt, a victim lost over $282M worth of $LTC and $BTC in a hardware-wallet social engineering scam.

The attacker swapped part of the $LTC and $BTC into $XMR, triggering a sharp spike in $XMR's price.

The attacker also used #THORChain to swap 818 $BTC($78M) into… pic.twitter.com/7PExjntkbT

— Lookonchain (@lookonchain) January 17, 2026

The attack raises questions of victims identity, as to whether it is an individual or a firm, but it fits into 2025 trends in which social engineering is still the primary method of attack. These kinds of attacks basically entail tricking victims as employees of an organization to win their confidence. The hackers, therefore, take advantage of the unfamiliarity with cryptocurrency transactions.

Monero’s dark side exposed

This is not the first time Monero has played a role in laundering stolen funds. In April 2025, a similar event occurred, exploiting the coin’s relatively illiquid market to move stolen assets. This time, the XMR spike coincided with general privacy-coin demand. The use of Monero to hide transactions shows how easily stolen crypto can be moved without leaving a trace. 

As of writing, according to data from CoinMarketCap, Monero was trading at $626.60, with $312 million volume in the past 24 hours. Its price has dropped about 7% today, but is still up nearly 40% over the past week. 

Hardware wallets under pressure

Even though more people are using hardware wallets, they aren’t completely safe. On January 5, a data breach affecting Ledger users raised fresh privacy concerns. ZachXBT reported that the Ledger breach happened through Global-e, a third-party payment service, and exposed personal details like names and contact information. This shows that not even offline hardware wallets are impervious to hacks. Earlier in December 2025, a trader lost $50 million in USDT to a similar address-poisoning scam.

According to a Chainalysis’s report, crypto crime is growing rapidly, with hackers stealing over $2.17 billion in just the first half of 2025. Large hacks such as the $1.5 billion Bybit exploit, which was blamed on North Korea’s Lazarus Group, have pushed many retail investors toward storing crypto offline. But hardware wallets also aren’t entirely foolproof. 

Also Read: Monero (XMR) Jumps to New All-time High Amid Privacy Coin Surge