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Summary

Editors' Note: Just four days after Bitcoin set a new historical high, the crypto market was hit by an unprecedented "10/10 Flash Crash." Not only did major cryptocurrencies crash, and numerous altcoins zero out, but exchanges also faced a liquidation crisis. Simultaneously, the implosion of highly leveraged yield funds like Stream Finance exposed the fragile nature of the "trust-me-bro" style bubble. Optimism on social platforms rapidly turned to panic, severely damaging market confidence.

This article reviews the sequence of these events, attempting to answer a key question: Why has crypto market sentiment suddenly turned so bearish? Amidst the intertwining bubble burst and trust crisis, we might be standing at a new cyclical inflection point.

The following is the original text:

On Monday, October 6, 2025, Bitcoin reached a new all-time high, breaking through the $126,000 mark for the first time. From the trenches of Crypto Twitter to the newsrooms of CNBC, holders were immersed in a pervasive "fog of hope."

Although the fundamentals have changed little in the month since, just four days later, on October 10, the crypto market faced a crisis—the "10/10 Flash Crash" is now considered the largest liquidation event in crypto history.

During this disastrous plunge, major cryptocurrencies fell by double-digit percentages, many altcoins went straight to zero, and several exchanges neared insolvency (almost all major perpetual futures platforms triggered automatic deleveraging mechanisms due to an inability to cover profits for short positions).

Despite Trump's election victory being viewed as a positive for the crypto industry—from plans to establish a strategic Bitcoin reserve to appointing seemingly pro-crypto regulatory officials—crypto asset prices have remained sluggish.

Aside from a brief rally following Trump's initial election last November, the ratio of the total crypto market capitalization (TOTAL) to the S&P 500 has been flat for nearly a year. In fact, since Trump's formal inauguration on January 20, this ratio has shown a surprising negative trend.

As the market continues to digest the aftermath of the 10/10 liquidations, more problems are beginning to surface.

Just this past Monday, Stream Finance declared insolvency. It was a $200 million "trust-me-bro" style crypto yield fund that used leverage to provide depositors with above-market returns. Its "external fund manager" lost approximately $93 million in assets during operations.

While details are not yet fully disclosed, Stream is likely the first publicly known "delta-neutral" strategy fund to implode due to the 10/10 automatic deleveraging. Although its structure had long raised questions, its collapse still caught many lenders off guard—they had chosen to sacrifice safety for higher returns in the absence of clear risk signals.

Following Stream's implosion, panic quickly spread throughout the DeFi ecosystem, prompting investors to collectively flee similar high-risk yield strategies.

Although, for now, the ripple effects from Stream haven't fully propagated, this event exposed the risks of the increasingly popular "recursive stablecoin farming" strategy in DeFi—using deposit certificates from already risky strategies to take on further leverage for higher yields.

Stream's disclosed losses also reveal the potential massive damage delta-neutral funds could have suffered during the 10/10 deleveraging: short hedges were forcibly removed by the system, while spot long positions instantly went to zero.

Even though headlines have moved on, it's certain that the losses on October 10 were catastrophic.

Whether operating openly in DeFi or covertly in CeFi, there are billions of dollars in leverage within crypto yield funds. Whether the market has sufficient liquidity to handle a potential future wave of liquidations remains unknown.

It's currently unclear who is "swimming naked," but it's certain that someone in the crypto casino has lost their trunks. If the market declines again, especially amidst lawsuits alleging major exchanges were insolvent during the 10/10 liquidations, the question is no longer "if something will happen," but "can the entire industry withstand it?"

Switching Growth Engines: As Layer-2 (L2) scaling solutions mature, Ethereum has largely addressed its performance issues. However, it now faces competition from public chains like Solana and the entry of traditional finance (TradFi) giants. The new growth is coming from outside Web3, particularly from the Real World Asset (RWA) tokenization wave and the AI industry's need for a trusted settlement layer.

A Multi-Pronged New Roadmap:

* zkVM (Zero-Knowledge Virtual Machine) is pushing the mainnet to upgrade into a "computational settlement layer," using zero-knowledge proofs to enhance throughput and security.

The Ethereum Foundation has formed an AI team, "*dAI**," to proactively build a decentralized AI ecosystem, advancing new standards like ERC-8004 and x402, positioning Ethereum as the trust and settlement layer for decentralized AI.

* Privacy and Compliance solutions are being layered on, catering to institutional and individual user needs, including compliant privacy tech on L2/L3 and account abstraction.

The Impact of the Second Curve: If this transition succeeds, Ethereum will evolve from a Web3 application platform into a global computational and financial infrastructure—a "Global Value Settlement Layer." This will attract high-value deployments, push L2 ecosystems to evolve into collaborative networks, and support nascent ecosystems like institutional RWA and AI model markets.

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On September 3rd, Etherealize, which describes itself as an "institutional-grade product, BD, and marketing arm for the Ethereum ecosystem," disclosed a $40 million funding round. Beyond the lead investors Electric Capital and Paradigm, it was particularly notable for the direct participation of Ethereum co-founder Vitalik Buterin and the Ethereum Foundation.

To some extent, this investment symbolizes the Ethereum community's firm support for a more professionalized, institutional development path. It also sends a clear signal: Ethereum's growth logic is shifting from "scaling" to the spillover and integration of the "application layer."

Looking back, from the DeFi summer of 2020-2021, to subsequent CeDeFi experiments, and now the accelerated integration with TradFi—Ethereum's method of innovating within traditional finance has constantly been adapting to survive.

Ethereum's development is moving from its "infrastructure phase" into a period of "application explosion and ecosystem reshaping." A trillion-dollar "second curve" is taking shape.

01. After Scaling: A New Growth Engine is Switching Gears

It's well known that Ethereum's primary focus has long been "Scaling."

With the maturation of L2 Rollup solutions like Arbitrum and Optimism in recent years, and the gradual implementation of foundational protocols like Danksharding and EIP-4844, Ethereum's basic computational capacity and throughput have significantly improved. The L2 ecosystem, in particular, has built a solid "execution layer" foundation.

It's fair to say that after years of exploration, Ethereum has largely solved the problem of being "usable." But the harder task is answering the next question: Who will use it, and how?

After all, the challenges facing Ethereum have never been more severe:

* On one hand, high-performance public chains like Solana and Sui are encroaching on the on-chain market with their "faster, cheaper" positioning.

* On the other hand, traditional Web2 giants like Visa, Stripe, PayPal, Robinhood, and even Fidelity are launching their own blockchains or integrating decentralized clearing/settlement systems to solidify their Crypto/TradFi strategies.

Over the past five years, at the application layer, Ethereum has undoubtedly been a hotbed of innovation—arguably the best "composable on-chain financial lab." It has supported the entire Web3 experimental wave, from DeFi and NFTs to DAOs, GameFi, and SocialFi.

However, the innovation in this phase primarily served Web3 native users and was essentially confined to a "self-circulation of on-chain capital." In other words, capital flowed on-chain, and protocols were stacked on-chain, but real-world assets, institutions, and users largely remained on the sidelines.

Web3 was logically self-consistent but struggled to connect with the needs of the real financial world. In this competitive landscape, Ethereum's "technical lead" is no longer a sufficient moat. To continue growing, it must answer a more profound question: How can it break through Web3's own boundaries to become the true underlying settlement layer for global assets?

The new growth is coming from outside Web3—simultaneously propelled by AI's computational demands and traditional finance's settlement needs into a new cycle:

The most typical example is the *RWA (Real World Asset) tokenization wave**. Traditional financial institutions like banks, brokerages, and fund companies are actively exploring moving assets such as bonds, stocks, and fund shares onto the blockchain for on-chain clearing and real-time settlement.

Concurrently, as AI model and data monopolies intensify, the *AI industry craves a neutral, trusted settlement layer** to address core pain points: model and data provenance, decentralized computation verification, and resistance to centralized risks. In short, AI needs a globally verifiable computation layer to price trust, and blockchain is naturally suited for this AI requirement.

Of course, to bear the weight of TradFi and AI demands, Ethereum must upgrade comprehensively in performance, privacy, and modularity.

02. The New Roadmap: Parallel Progress on zkVM, AI, and Privacy

In response to these new demands, key strategies are already being advanced within the Ethereum community and the Ethereum Foundation. Below are the currently public and widely discussed strategic directions.

First is zkVM (Zero-Knowledge Virtual Machine). This isn't merely a technical extension of L2 scaling; it's a transformative reshaping of the Ethereum mainnet's function. For instance, the Ethereum Foundation is currently advancing a mainnet-level zkVM architecture. This would replace the re-execution of transactions with zero-knowledge proof (ZKP) verification, drastically increasing throughput and security.

The core logic of zkVM lies in changing the trust model. Traditional Ethereum relies on all nodes re-executing transactions to reach consensus. The key advantage of zkVM is that it enables validating nodes to skip re-executing all transactions, needing only to verify the ZK proof, significantly reducing synchronization and execution costs.

Under this new architecture, the Ethereum mainnet is poised to become a pure "computational settlement layer," focused on verifying ZK proofs and anchoring the final state, while L2s become highly efficient "execution layers." This would evolve Ethereum from a blockchain into a global verifiable computation layer.

Last month, Vitalik Buterin retweeted and praised a minimal zkVM proposal from Ethereum developers: optimized for XMSS aggregation and recursion, leanVM minimizes commitment costs compared to Cairo via a four-instruction ISA, multilinear STARKs, and logup lookups.

Another clear signal was the Ethereum Foundation's establishment of the artificial intelligence team "**dAI**" on September 15th, dedicated to building a decentralized AI ecosystem. This marks Ethereum's shift from passively "being used by AI" to actively "integrating with AI."

The dAI team's core mission is to dedicate resources to defining the standards, incentives, and governance structures for AI models on the blockchain. This includes:

* Model Trustworthiness: How to ensure transparency in AI model training data and how to use ZK technology to prove the integrity of model inferences.

* New Standards: To better serve the AI ecosystem, the community is advancing new standards like ERC-8004 and x402:

* ERC-8004: Aims to establish a "composable, accessible" decentralized AI infrastructure layer, allowing developers to easily build and integrate AI model services.

* x402: Aims to define a unified standard for on-chain payments and settlement, ensuring efficient, atomic micro-payments when users access AI models, store data, or use decentralized computation services on-chain.

Through these efforts, Ethereum is attempting to define the underlying protocol and settlement mechanism for decentralized AI, positioning itself as the "value clearing and trust layer for decentralized AI."

Furthermore, to welcome TradFi's trillions of dollars in assets, Ethereum must resolve the paradox of privacy and compliance. Its privacy roadmap has begun to stratify to meet the needs of different groups:

* Institutional Privacy & Compliance (Core TradFi Demand): Focuses on exploring compliant privacy solutions on L2/L3. This means institutions can conduct encrypted transactions and settlements on-chain while providing auditable, verifiable transaction records to specific regulators (like auditors, oversight bodies) via ZKPs or permissioned control mechanisms, meeting regulatory requirements while protecting business secrets.

* Individual Privacy (Web3 User Protection): Leverages technologies like Account Abstraction (AA) and privacy-enhancing tech on L2 (e.g., private transactions) to address issues like MEV (Maximal Extractable Value) attacks and the leakage of personal transaction data at the protocol level, ensuring user on-chain activities are protected.

These three paths—Generality (zkVM), Application Boundaries (dAI/New Standards), and Compliance (Privacy)—collectively form the core strategy of Ethereum's "second curve" aimed at meeting AI and TradFi demands.

03. What If the "Second Curve" Leap Succeeds?

As seen from the 2020-2021 DeFi boom, subsequent CeDeFi practices, and the latest strides in actively integrating with TradFi, Ethereum's approach to innovating global finance has consistently followed the principle of "adapt or perish."

Therefore, the current "hyper-evolution" of Ethereum is no easy task. But if this leap is successful, its ecosystem and status will be thoroughly reshaped.

First, Ethereum will transition from an "application platform" for Web3 native users to a "computation & financial infrastructure platform" for the global mainstream economy. Its position within the global financial system will become more entrenched, becoming the de facto *"Global Value Settlement Layer."**

* Consequently, more high-value businesses (like institutional RWA, AI model verification, decentralized data markets) will choose to deploy directly on Ethereum or its zk-native structures, forming massive liquidity pools and trust anchors.

Then, the L2 / Rollups ecosystem will evolve into a *"collaborative network."** They will no longer be siloed "independent chains" but will be more deeply connected to the mainnet's zk-layer, specializing in providing different execution environments (EVM, ZKVM, customized privacy, etc.). Ultimately, sub-ecosystems for stablecoins, privacy protocols, data oracles, and AI model markets are expected to rise, providing the necessary "middleware" for institutions and AI.

In summary, the emerging "second curve" for Ethereum marks its leap from a "cryptocurrency computation layer" to a "global trust and settlement layer"—no longer just a speculator's playground, but rapidly transforming into an indispensable financial primitive within global economic infrastructure.

After all, the AI industry needs its credible neutrality, and traditional finance needs its efficiency and compliance. zkVM, the AI team, and the privacy roadmap are the combination punch Ethereum is throwing to meet these two trillion-dollar demands.

Believe it, the best is yet to come.

The SEC has accelerated its review process, shortening the timeline to under 75 days through new universal listing standards, and has withdrawn 19b-4 filings from some issuers.

Key decision dates include: Canary's LTC ETF (October 2), Grayscale's Solana and LTC trust conversions (October 10), and WisdomTree's XRP fund (October 24).

Market expectations are high for Litecoin and SOL ETF approvals: Polymarket data shows a 93% probability for LTC, while Bloomberg analysts see near-certain approval for SOL.

If approved, these ETFs could bring capital inflows to altcoins, though institutional investors may prefer multi-crypto portfolio products over single-token ETFs—potentially altering altcoin price appreciation patterns.

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Summary

Author: 1912212.eth, Foresight News

In October 2025, the U.S. SEC will deliver final rulings on at least 16 spot cryptocurrency ETF applications covering tokens beyond Bitcoin and Ethereum, such as SOL, XRP, LTC, DOGE, ADA, and HBAR. Recent developments show the SEC withdrawing multiple delay notices and accelerating the approval process via new universal listing standards, compressing review timelines to under 75 days.

According to crypto reporter Eleanor Terrett, the SEC has requested issuers of LTC, XRP, SOL, ADA, and DOGE ETFs to withdraw their 19b-4 filings, as these are no longer necessary following the adoption of universal listing standards.

Since their approval, Bitcoin and Ethereum spot ETFs have seen significant capital inflows, substantially boosting their prices. The key questions now are whether these new altcoin ETFs will be approved and if they will similarly drive price appreciation.

Multiple Altcoin ETF Final Deadlines Fall in October

Data compiled by Twitter user Jseyff shows that final deadlines for several altcoin spot ETFs are scattered throughout October. The first pending decision is Canary's LTC ETF, with a deadline of October 2.

Next are Grayscale's Solana and LTC trust conversions on October 10, followed by WisdomTree's XRP fund on October 24.

According to a list of upcoming approvals created by Bloomberg ETF analyst James Seyffart, decisions could be announced any time before the final deadlines.

Applications have been submitted by institutions including Grayscale, 21Shares, Bitwise, Canary Capital, WisdomTree, and Franklin Templeton. Notably, BlackRock and Fidelity are absent from this round, but this doesn't diminish the potential impact—approvals could pave the way for larger-scale products in the future.

Since the BTC and ETH spot ETFs, no other cryptocurrencies have received SEC approval, with the SEC repeatedly delaying decisions as in the past. However, the impending final rulings must deliver a clear "Yes" or "No" to the market.

The market awaits with bated breath.

The approval or rejection of the first-mover Litecoin and SOL ETFs will likely set expectations for subsequent applications.

Probability of Approval

In late July, the SEC's new listing standards primarily focused on eligibility requirements and operational mechanisms for crypto ETPs. Firstly, in-kind creation and redemption were formally permitted, meaning authorized participants can exchange ETP shares using actual crypto assets rather than cash.

The SEC also announced listing standards for spot ETFs. These new standards are expected to take effect in October 2025, aiming to streamline the ETF listing process. The "universal listing standard" requires crypto assets to have been listed on futures markets of major exchanges like Coinbase for at least six months. This rule ensures sufficient liquidity and market depth to prevent manipulation.

Litecoin, known as a long-established altcoin, stands as a prime candidate for initial approval due to its maturity and non-security status. Litecoin founder Charlie Lee stated in a recent interview that he expects a spot LTC ETF to launch soon. This view is based on the SEC's approval of universal listing standards for crypto ETFs and LTC's inclusion among the ten qualifying assets.

Charlie Lee discussed LTC's prospects within the evolving regulatory framework. He noted that the SEC's recent approval of universal crypto ETF listing standards was a key catalyst, emphasizing that Litecoin meets the conditions for expedited approval.

Currently, Polymarket betting shows the probability of a Litecoin spot ETF approval this year has risen to 93%.

Regarding the SOL spot ETF, Bloomberg ETF analyst Eric Balchunas stated, "To be honest, the success rate for a SOL spot ETF approval is now close to 100%. The universal listing standard makes the 19b-4 filings and their deadlines meaningless. Now it's just about the S-1 forms. The baby could arrive any day now—be ready."

Notably, ADA is the last asset awaiting a decision at the end of October, with Polymarket odds for its ETF approval also at 93%.

Clearly, the SEC's decisions in early October will set the tone.

Previously, the SEC approved the Hashdex Crypto Index ETF. Recently, the Hashdex Nasdaq Crypto Index US ETF (NCIQ) added support for XRP, SOL, and XLM, enabling the product to provide US investors with exposure to five crypto assets—BTC, ETH, XRP, SOL, and XLM—through a single investment vehicle.

The SEC also previously approved the conversion of the Bitwise 10 Crypto Index Fund into an ETF, covering assets including BTC, ETH, XRP, SOL, ADA, SUI, LINK, AVAX, LTC, and DOT.

Will Approval Boost Prices?

Bitfinex analysts previously predicted that crypto ETF approvals could trigger a new altcoin season or rally, providing traditional investors with more avenues for crypto exposure.

However, not all analysts agree.

Bloomberg ETF analyst James Seyffart noted that the current market dynamic represents an "altcoin season" shaped by Digital Asset Trust Company (DATCO) structures rather than traditional token price increases. Seyffart pointed out that institutional investors prefer multi-crypto portfolio products over single altcoin ETFs. He emphasized that institutional capital favors gaining crypto exposure through regulated products rather than direct token ownership—a structural shift that could permanently alter altcoin appreciation patterns.

Key objectives include:

• Opening U.S. crypto markets to foreign trading platforms, introducing perpetual contracts, and exploring 24/7 trading.

• Clarifying regulatory rules and coordinating exemptions to reduce compliance costs, improve enforcement efficiency, and attract global liquidity and capital回流.

• Encouraging DeFi and derivatives innovation while strengthening investor protection and risk control to reduce market manipulation.

• This move may propel crypto derivatives, prediction markets, and DeFi into the next wave of U.S. innovation growth, providing pathways for traditional fund institutions to enter the crypto market.

• The two agencies will hold a joint roundtable on September 29 to further discuss regulatory coordination and innovation exemptions.

Summary

Author: Wenser, Odaily

On September 5, the U.S. SEC and CFTC jointly issued two statements.

One statement emphasized increased collaboration to support developments in crypto assets, DeFi, prediction markets, perpetual contracts, and portfolio margining. Future efforts will include coordinating regulatory rules, narrowing regulatory gaps, extending trading hours, and utilizing innovative exemptions to enhance U.S. market competitiveness. The other statement announced a joint roundtable on September 29 to discuss topics such as "coordinating definitions of products and venues, simplifying reporting and data standards, adjusting capital and profit frameworks, and leveraging each agency’s existing exemption authorities to establish coordinated innovation exemptions."

As two critical regulatory bodies in the U.S. economic system, this move by the SEC and CFTC signals impending new actions in U.S. crypto regulation. Odaily provides a brief analysis of this event and its potential impacts.

Core Goal of Joint SEC & CFTC Regulation: Make American Capital Great Again
Both statements highlighted "ensuring U.S. leadership in global capital markets," indicating that the core objective of this joint effort aligns with the Trump administration’s "America First" policy. Specific impacts include:

1. Opening U.S. Markets to Crypto Trading Platforms
   Based on previous information and the joint statement, the CFTC plans to issue guidance clarifying registration rules for foreign trading platforms. Prediction market Polymarket has already received CFTC approval to return to the U.S. market. The SEC and CFTC will also study introducing perpetual contracts to U.S. markets, enabling traders to participate in products previously available primarily overseas. Additionally, they plan to explore 24/7 trading, prediction markets, portfolio margining optimizations, and DeFi innovation exemptions.

   Clearly, under the Trump administration, the U.S. government is reversing its previous "closed-door" stance on crypto, aiming to fully open U.S. markets and attract crypto trading platforms to participate in building the U.S. crypto economy.

2. Further Attracting Global Capital Liquidity
   The CFTC’s plan to clarify registration rules for foreign boards of trade (FBOTs) will not only attract trading platforms and other infrastructure to the U.S. but also facilitate large-scale inflows of funds, capital, and liquidity from U.S. and global crypto users. U.S. crypto market participants like Gemini, Kraken, and Coinbase will also gain access to more users and liquidity worldwide.

   As CFTC Acting Chair Caroline D. Pham stated, "This is a way to 're-shore' crypto activity that had gone offshore due to the enforcement-based regulation of the Biden era, while reaffirming a regulatory framework that has been in place since the 1990s. For U.S. traders, this means legal access to more global liquidity; for the crypto industry, this is another step toward regulatory clarity and part of the Trump administration’s 'crypto sprint strategy.'"

3. Reducing Regulatory Costs and Improving Enforcement Efficiency
   Under U.S. law, the SEC and CFTC are both financial regulators but derive authority from different sources: the SEC primarily enforces the Securities Act of 1933 and the Securities Exchange Act of 1934, while the CFTC operates under the Commodity Exchange Act (CEA). In other words, the SEC focuses on securities markets with an emphasis on investor protection and disclosure, while the CFTC oversees commodity futures and derivatives markets, focusing on risk management and anti-manipulation. Joint regulation will clarify jurisdictional boundaries, reduce compliance burdens for crypto platforms (e.g., margin capital lock-ups), lower regulatory costs, and improve enforcement efficiency—ensuring "God’s things to God, Caesar’s things to Caesar."

4. Encouraging Innovation While Strengthening Risk Control
   The potential policies and benefits will further encourage innovation among U.S. crypto businesses, particularly in 24/7 trading, portfolio margining, and DeFi innovation exemptions, injecting new momentum into DeFi’s development within the U.S. financial sector. Additionally, both agencies emphasized "meeting investor and customer protection standards," suggesting future policies to strengthen risk control and reduce market manipulation. Long-term, this could effectively curb the无序 chaos of price manipulation and speculation in crypto markets.

After Crypto IPOs, Crypto Derivatives May Become the Next U.S. Innovation Frontier
Following landmark IPOs like Galaxy Digital, Circle, and Bullish, the joint SEC-CFTC statement positions crypto derivatives and DeFi as the next frontier for U.S. crypto innovation.

Previously, due to stringent U.S. regulations, many crypto exchanges and projects avoided the U.S. market. This joint statement signals a shift in regulatory风向: encouraging rapid development to繁荣 the U.S. crypto financial market, introducing innovative products that meet exemption criteria while ensuring risk control and investor protection.

On one hand, U.S.-based crypto projects like WLFI, Uniswap, Solana, and Moonpay may benefit from expansion opportunities and favorable policies.

On the other hand, Coinbase, Gemini, Kraken, Kalshi, Polymarket, Bitcoin spot ETFs, Ethereum spot ETFs, and other crypto index funds will attract more active traders and new liquidity.

Notably, this joint regulation opens想象空间 for traditional financial markets to activate liquidity through the crypto economy. Traditional index funds, state pension funds, and university endowments may increase their crypto asset allocations.

Given Nasdaq’s recent move to tighten regulations on listed companies establishing crypto reserves, shell companies relying solely on "hoarding strategies" for stock-crypto synergies will face greater challenges. Instead, hope lies in more standardized and innovative crypto financial products and liquidity引入.

Additionally, while MicroStrategy (the "BTC hoarding stock") met all hard requirements for S&P 500 inclusion but was not selected, CFTC Acting Chair Caroline Pham likened this to "Bitcoin’s 'Uberization' process"—where digital assets integrate into the U.S. economy to an inextricable extent—highlighting the CFTC’s attention to crypto-concept stocks.

Unlike the internet economy, which permeates all aspects of daily life, the crypto industry remains largely confined to financial investments. However, with developments in PayFi, DeFi, prediction markets, and tokenized U.S. stock markets, the crypto economy will advance further into the mainstream beyond ETFs.

Additional Timeline for CFTC Regulatory Actions

• August 21: CFTC Acting Chair Caroline D. Pham announced the next phase of the crypto sprint plan to implement recommendations from the President’s Working Group on Financial Markets. The plan focuses on federal-level digital asset spot trading and synergizes with the SEC’s "Crypto Project," echoing President Trump’s call for U.S. leadership in crypto.

• September 5: Joint SEC-CFTC statement on advancing crypto and derivatives regulation.

• September 29: Joint roundtable in Washington, D.C., open to the public both in-person and via webcast on the SEC website. Recordings will be posted on the SEC site, with agenda and participant details available here.

• According to Acting Chair Pham, the CFTC will solicit stakeholder input on leverage, margin, and retail trading issues, with a public comment period open until October 20.

The Incumbents—From Web 1 Brokers to Web 2 Apps
Before the internet, opening a US-stock account meant paper forms, branch visits and 1 % ticket charges. Futu (China, 2011) and Robinhood (US, 2013) moved the flow online, scrapped commissions and onboarded 26 M and 23 M users respectively. Their trick was to ride the smartphone wave and absorb the regulatory burden for retail investors. Crypto brokers want to go one step further: remove identity friction completely, let tokens circulate 24/7 and list pre-IPO names no traditional venue can touch.

Three New Super-Powers

1. Permission-less onboarding—a wallet address is the only ID required.

2. Inter-platform portability—send your tokenised AAPL from Bitget Wallet to Phantom the same way you send USDC.

3. Expanded universe—SpaceX, OpenAI or ByteDance “shadow shares” can be bundled into synthetics and listed next to public stocks, plus perpetual futures and structured products.

Inside the Ecosystem—Ondo & xStocks Lead the Pack

• Ondo Global Markets (launched 3 Sep) already lists 40 blue-chips, settled in USDe and backed 1:1 by actual shares held in a Delaware statutory trust. Eight exchanges—including Bitget Wallet, Trust Wallet, Gate, MEXC—plugged in on day one.

• xStocks (live since June) is integrated into Kraken, Bybit, Moonshot, Phantom and ten others; cumulative volume US $3.78 B, 95 % traded on CEX order-books.

• Smaller suites (Multiply, MyStonks, StableStock) are racing to add derivatives, margin and DAO-governed rebalancing.

Regulatory Arbitrage or Regulatory Doom?
Issuers insist each token is fully collateralised by a corresponding share held in an SPV or qualified custodian. Investors receive dividend equivalents via airdrop and can redeem into the underlying—if they pass KYC at that point. Critics argue the model simply front-runs securities law: the same friction the SEC demands is hidden behind an optional redemption gate. The SEC has yet to comment on the newest crop of products, but staff letters on “stock tokens” in 2021 made clear that price-tracking crypto receipts are investment contracts unless exempt. For now, venues rely on offshore SPVs and reverse-solicitation clauses; how long that shield lasts is unknown.

Will Anyone Care If the Token “Is” the Stock?
USDC does not claim to be the dollar—it just trades like it. Tokenized equities may reach the same mental shortcut: as long as the delta is zero, liquidity is deep and redemption is possible (even with friction), retail users treat the wrapper as the real thing. If redemption ever breaks, the legal gap becomes existential; until then, crypto brokers are betting that convenience trumps title.

Bottom Line—The Next Robinhood or the Next Crack-Down?
Crypto brokers solved three pain-points legacy platforms cannot: global access without docs, cross-venue portability and a single wallet for public plus private equities. That unlocks an addressable base of five billion internet users who have never touched a US 10-K. Whether the model scales or collapses depends on the same variable that decided Robinhood’s fate—regulatory tolerance. If watchdogs look the other way, the Nasdaq may become just another trading pair next to DOGE; if not, the tokens could be delisted faster than you can say “Howey Test”.

In contrast, Bitcoin operates as a decentralized digital currency powered by blockchain technology, offering global accessibility, openness, and verifiability. Generated through a "mining" mechanism, it has gradually built value consensus. The author argues that Bitcoin not only surpasses gold in portability, divisibility, and digital utility but also presents a generational opportunity for epic wealth creation and transfer.

Summary
Author: Bill Qian

This article is a companion piece to "How to Protect Wealth in Wartime."

We explore three questions: First, what truly constitutes a store of value? Second, why did gold emerge as the modern winner? Third, why is Bitcoin a better "gold" for the 21st century and beyond?

Over the past 5,000 years, competition for the "best store of value" has persisted, but gold gradually dominated due to its scarcity and millennia-forged value consensus. Simultaneously, Bitcoin is slowly eroding and challenging gold’s market position, creating an epic wealth creation and transfer opportunity for our generation.

「The History of Money」
To compare gold and Bitcoin, we must first discuss the broader category: money itself.

Money serves three core functions: medium of exchange, unit of account, and store of value. From shells and copper coins to modern fiat currencies (e.g., the U.S. dollar, euro), mediums of exchange and units of account have continuously evolved. Meanwhile, gold, silver, land, and blue-chip stocks have long served as primary stores of value.

In monetary history, the U.S. dollar during the Bretton Woods System was one of the few currencies that simultaneously fulfilled all three roles—but this was an exception, not the norm. Moreover, this trifecta collapsed after Nixon’s 1971 televised address. Some might ask: Why do many in emerging markets still prefer using and saving in U.S. dollars, even as data shows the dollar continuously depreciates? The answer, I believe, is that they lack better alternatives; their local currencies are worse. This topic relates to stablecoins, which we’ll explore next time.

「How Did Gold Become Today’s 'Gold'?」
A strong store of value must meet five criteria: scarcity, durability, portability, divisibility, and social consensus. Silver, land, and diamonds all struggle to outperform gold across these metrics.

Thus, over tens of thousands of years, gold finally won humanity’s consensus and mindshare, becoming the nearly exclusive asset for wealth preservation.

「What Are Gold’s Limitations?」

1. Storage requires expensive vaults, insurance, and sometimes transportation costs, with expenses scaling alongside volume. During World War II, gold in Parisian bank safes was directly looted by German forces. This taught me a stark lesson: The safe in the bank is not safe at all.

2. Liquidation costs are high in extreme times. During WWII, whether in Shanghai, Paris, or Amsterdam, gold transactions often faced steep discounts—30-50% below spot prices, with even deeper discounts in high-risk environments. Worse, trading gold in conflict zones carried severe personal risks: once others knew you held gold bars, robbery and violence became imminent threats.

3. Governments can undermine gold’s reliability through confiscation and price controls. In 1933, the U.S. required citizens to surrender most gold at below-market fixed prices under threat of severe penalties. Note: The government mandated surrender at $20.67 per troy ounce. Then, the 1934 Gold Reserve Act revalued gold officially to $35 per troy ounce—effectively "devaluing" citizens’ gold by ~41% within a year. The U.S. confiscated over 2,600 tons of gold, directly altering monetary policy and paving the way for the complete end of the gold standard in 1971. All this occurred in the 20th-century U.S., arguably the world’s beacon of private property rights.

4. Gold lacks digital utility in today’s economy. For example, you cannot send one kilogram of gold to a friend or another address via an electronic wallet.

「In 2009, Bitcoin Emerged! What Is It Exactly?」
Launched in 2009 by the pseudonymous Satoshi Nakamoto, Bitcoin is the first decentralized digital currency. It operates on a global, public, open computer network (commonly called a blockchain—a term I’ve always found esoteric)—a shared digital ledger anyone can participate in and verify. New Bitcoin is generated through "mining": computers solve complex mathematical puzzles to bundle transactions into new "blocks" added to the blockchain, with "miners" rewarded in newly minted Bitcoin. This process ensures the system’s security and smooth operation.

Core Scenario Logic

Initial Background

• Entities: 10 Bitcoin treasury companies, with Bitcoin initially priced at $120,000.

• Company Differences: Their mNAV ratios range from 1.0x to 5.0x, and their quality depends on treasury size and management conviction (e.g., MicroStrategy is considered high-quality, while small and mid-sized companies may lack long-term belief).

• Market Environment: Institutional investors currently control about 17%-31% of Bitcoin's circulating supply, including ETFs, publicly traded companies, and government holdings, totaling over $428 billion.

Trigger Mechanism

1. Low-Quality Companies Sell First:

   • When mNAV falls below 1.0x, low-quality companies (e.g., small and mid-sized firms under financial pressure) start selling Bitcoin to repurchase shares and stabilize their stock prices.

   • Example: Japanese company Value Creation liquidated 22.36 BTC after holding for less than six months, profiting 52 million yen, citing "improving asset efficiency."

   • This selling pressure drops Bitcoin's price from $120,000 to $115,000.

2. Vicious Cycle Begins:

   • The price decline drags down other companies' mNAV, forcing 4-5 mid-quality companies to join the selling (at $115,000).

   • Market panic intensifies, with investors anticipating collective selling of 30%-50% of holdings, leading to Bitcoin's repricing to $100,000.

   • On-Chain Data Support: 310,000 BTC recently moved from exchanges to self-custody wallets, the highest since November 2022, suggesting whales are hedging risks early.

Total Collapse

• Mid-Quality Companies Capitulate: Under shareholder pressure, weekly selling reaches $500 million to $1 billion, and Bitcoin falls to $90,000.

• High-Quality Companies Breach:

  • Companies like MicroStrategy (MSTR) see mNAV fall below 1.0x, and rumors circulate about potential dividend suspensions.

  • Some companies sell Bitcoin to cover operational costs (e.g., MARA, RIOT), pushing the price to $80,000.

• Final Stage: Selling spreads to high-quality companies, with weekly pressure expanding to $1.5 billion to $3 billion. If MSTR joins, Bitcoin could drop to $70,000.

  • Scale Basis: Excluding MSTR, treasury companies collectively hold 350,000 BTC (about $40 billion), making sustained selling highly feasible.

Outcome Analysis

1. Low-Quality Companies: Early selling avoids greater losses but damages their reputation, reducing future capital inflows (e.g., Value Creation was criticized for "short-sightedness").

2. Long-Term Believers: Companies like MicroStrategy's Saylor may hold firm; if Bitcoin's annual growth rate remains 30%-40%, they could ultimately survive and benefit.

3. Middle-Ground Companies (e.g., MARA, RIOT): Sell at the worst stage, averaging around $75,000, suffering the heaviest losses.

4. Exception for ETH Treasuries: BMNR and SBET hold 75% of treasury ETH, and their concentration might facilitate coordination to avoid selling, though success probability remains low.

5. Historical Analogy: Similar to Archegos' meltdown in traditional finance, aggressive liquidators (e.g., Goldman Sachs) fared better than slow exiters (e.g., Credit Suisse).

Real-World Context and Data Support

• Institutional Holding Risks: Bitcoin holdings are highly concentrated among publicly traded companies, with MicroStrategy alone holding about 597,000 BTC; the top five companies account for over 80%.

• Recent Selling Pressure: In August 2025, Wall Street institutions (e.g., BlackRock, Fidelity) began reducing BTC and ETH holdings, selling hundreds of millions weekly.

• Macro Pressures: The Fed's high-interest rate policy (4.25%-4.75%), sticky inflation (core PCE above 2.8%), and tightening regulations (EU's MiCA 2.0, U.S. anti-money laundering bills) exacerbate market fragility.

Editor's Perspective

This scenario is not a prediction but highlights reflexive risks in an institution-dominated market:

• Bitcoin's Double-Edged Sword: Institutional participation enhances liquidity but also amplifies systemic risks due to concentration.

• Investor Insights:

  • Short-term: Monitor mNAV metrics and corporate earnings, avoid high leverage.

  • Long-term: Rely on Bitcoin's fundamentals (halving scarcity, sovereign fund adoption trends), but watch security model debates (e.g., declining block rewards may weaken network security).

Note: Prices in this article are for scenario analysis only and not actual targets. Market dynamics are complex and require consideration of macro, regulatory, and technical factors.

Original Author | Cheshire Capital
Compiled by | Odaily Planet Daily
Translator | DingDang

PANews Editor's Note: This article is based on hypothetical scenarios aimed at analyzing potential risks and does not constitute investment advice. Corporate treasury strategies must balance short-term efficiency with long-term value. Investors should think independently and monitor on-chain data and macro trends.

Recent U.S. economic data paints a paradoxical picture: Q2 GDP rebounded to 3.0% annualized growth (from -0.5% in Q1), yet July nonfarm payrolls added just 73K jobs—the weakest since June 2020. For crypto investors, these aren’t just headlines; they’re signals that the Fed’s monetary policy, the "invisible hand" guiding crypto markets, is shifting.

1. The U.S. Economy: Braking Hard Beneath the Surface

GDP’s Illusory Strength

The Q2 GDP bounce was largely fueled by a 30.3% plunge in imports—a side effect of tariff-induced inventory hoarding now unwinding as demand cools. The real indicator of economic health, private domestic final sales (consumption + investment), slowed to 1.2%, the lowest since 2022. Service-sector spending growth also dipped below 2%, reflecting consumer caution.

Labor Market Red Flags

• Nonfarm payrolls for July were revised down by 258K over the prior two months.

• The 3-month average job gain fell to 35K, matching pandemic-era lows.

• Labor participation (62.2%) and unemployment (4.2%) reveal a stagnant market: few hiring, fewer job seekers, and minimal layoffs outside healthcare/education.

2. The Fed’s Pivot: Rate Cuts Incoming, 2026 Could Be Even Softer

Powell’s Dovish Turn

Post-July FOMC, Chair Powell emphasized "downside risks to employment", signaling a shift from restrictive to neutral policy—a clear prelude to rate cuts. Markets now price in a September cut, contrasting sharply with 2018’s hiking cycle. For crypto, this liquidity injection is bullish.

2026’s Fed: A More Dovish Cohort

• Kevin Hassett (White House CEA): Longtime dove advocating stimulus.

• Scott Bessent (Treasury Secretary): Favors pro-growth monetary policy.

• Kevin Warsh (Ex-Fed Governor): Former hawk now backing cuts.
  Even "moderate hawk" Christopher Waller leans pragmatic. This lineup suggests prolonged accommodation—rocket fuel for crypto.

3. Key Data to Watch (Mid-August)

• Aug 12, 20:30 ET: Core CPI (Expected: +0.2% MoM) → Hotter inflation delays cuts.

• Aug 14, 20:30 ET: Jobless claims (Expected: 226K) → Rising claims accelerate cuts.

• Aug 15, 20:30 ET: Retail sales (Expected: +0.6% MoM) → Weak spending = dovish pressure.

• Aug 15, 22:00 ET: U. Mich. consumer sentiment (Expected: 61.7) → Lower confidence = stronger easing bets.

4. Crypto Takeaway: Liquidity Tsunami Ahead

The equation is simple: Cooling economy + Fed easing = improved liquidity. While short-term volatility persists, the policy shift’s direction matters more than any single data point. In crypto, "more money" is the ultimate catalyst.

Translation Note:

• Retained conversational tone (e.g., "rocket fuel for crypto") while formalizing economic terms.

• Simplified Chinese idioms (e.g., "隐形大手" → "invisible hand").

• Structured timelines for clarity.

• Highlighted contrasts (GDP vs. jobs, 2018 vs. 2025 Fed policy).

TL;DR

DeFi claims to be open to all, but its complexity deters average investors. From preparing gas fees to navigating intricate protocols, many users abandon promising opportunities due to convoluted processes.

Wayfinder is an on-chain AI agent system designed to solve these accessibility issues. Without needing technical expertise, users can execute professional-grade investment strategies—from cross-chain swaps to basis trading—through simple conversations with AI agents.

Future expansions include API services, positioning Wayfinder as a foundational solution for simplifying on-chain complexity across Web3 projects. Its API could revolutionize crypto UX, making "accessible financial services for all" a reality.

1. Is DeFi Truly Open to Everyone?

DeFi aims to create an open financial ecosystem, yet it demands advanced technical and financial knowledge, creating a gap between ideal and reality.

Chain Abstraction and Account Abstraction emerged to bridge this gap, improving UX but lacking standardization. Limited protocol support persists, and the core issue—learning complexity—remains unresolved. Users must still grasp DeFi-native concepts like AMMs, liquidity pools, and impermanent loss, making DeFi more exclusionary than traditional finance.

Mature LP Participation in Leading Protocols (Source: BIS)
The Bank for International Settlements (BIS) highlights this disparity: In Uniswap V3, just 7% of liquidity providers control ~80% of TVL, earning 20% higher returns than average users. Even Uniswap, with its relatively user-friendly design, reflects broader DeFi accessibility challenges.

The Consequences
DeFi’s complexity fuels decision fatigue for existing users and deters newcomers, undermining its original vision of democratized finance. High barriers and poor usability restrict mass adoption.

2. Can AI Solve DeFi’s High Barriers?

Recent AI advancements, particularly Agentic AI, offer solutions. These systems go beyond intelligence—they execute tasks autonomously, potentially unlocking DeFi’s mass adoption.

Example Scenario
A user requests: “Bridge my ETH from Base to Solana and buy Memecoin BONK.” An AI agent analyzes bridge options in real-time, presenting clear choices:

• Wormhole: $2.50 fee, 3 min, high security

• LayerZero: $1.80 fee, 5 min, gas volatility risk

Users skip technical jargon, relying on AI-curated insights. No manual wallet connections or complex transactions—just seamless execution, like a 24/7 asset manager.

Challenges
Current AI lacks direct blockchain integration (e.g., checking wallet balances) and struggles to interpret thousands of smart contracts securely. A dedicated on-chain agent system is needed—enter Wayfinder.

3. Wayfinder: The On-Chain AI Agent System

Source: Wayfinder
Wayfinder’s AI agents are tailored for blockchain, integrating directly with DeFi protocols. Unlike generic models, they’re fine-tuned for efficiency, enabling non-technical users to navigate DeFi effortlessly.

Origins: Colony AI
Wayfinder’s roots trace to Colony, an AI-driven survival game by Parallel Studios. Its autonomous agents—trading resources and strategizing without player input—inspired Wayfinder’s expansion into DeFi.

Core Components

1. Wayfinder Shell: A user interface for interacting with specialized agents.

2. Wayfinder Graph: A navigation system optimizing multi-chain paths.

3.1. Wayfinder Shell: Your DeFi Private Banker

Source: Wayfinder
The Shell hosts role-specific agents that collaborate to execute strategies across Ethereum, Solana, Base, and Avalanche. Key features:

• Direct On-Chain Execution: Agents use embedded Web3 wallets. For example, a user requests: “Diversify $100 USDC into trending Solana tokens.” The agent screens data, builds a portfolio, and executes—no technical know-how needed.

Agent Types

• Transaction Agent: Handles swaps, bridges, and staking.

• Perpetual Agent: Integrates with Hyperliquid for leveraged trading.

• Contract Agent: Manages smart contract deployment/analysis.

• Autonomous Agent: Coordinates multi-step strategies (e.g., cross-chain yield farming).

Future additions include Yield Finder Agents for optimization. All agents simulate transactions in a Virtual Network (VNet) to prevent errors, with critical actions requiring user approval.

3.2. Wayfinder Graph: DeFi’s Google Maps

Source: Wayfinder
This system maps DeFi protocols, contracts, and assets, guiding agents via optimized routes.

Wayfinding Paths
Like Google Maps’ step-by-step directions, these paths define tasks (e.g., “Swap ETH for USDC on Uniswap”), including contract addresses, methods, fees, and risks. Agents use pre-verified paths for speed and safety.

Community-Driven Scalability
New protocols? Community members submit interaction paths, staking PROMPT tokens as collateral. Validators approve submissions, and creators earn fees when paths are used. Incorrect paths trigger slashing, ensuring quality control. This model mirrors Google Maps’ crowdsourced updates, adapting swiftly to DeFi’s evolution.

Conclusion
Wayfinder’s AI agents and community-powered infrastructure could finally realize DeFi’s promise: financial services for everyone, no expertise required.

Regulatory Tailwinds and Capital Backing Fuel Relaunch

On July 18, Bullish filed for an IPO with the U.S. SEC, aiming to list on the NYSE under the ticker "BLSH." Top-tier banks, including JPMorgan, Citigroup, and Deutsche Bank, are leading the underwriting.

CEO Tom Farley (ex-NYSE president) emphasized the timing: "We believe digital assets are at an inflection point, with institutional adoption accelerating. Transparency and compliance align us with public markets, offering credibility, capital access, and strategic flexibility."

This isn’t Bullish’s first IPO attempt. In 2021, it pursued a $9B SPAC merger (via Far Peak Acquisition) with backing from Peter Thiel’s Founders Fund, Nomura, and Galaxy Digital. The plan collapsed during the 2022 crypto winter, but Bullish now rides renewed optimism post-Circle’s successful IPO and Bitcoin ETF inflows.

Key advantages:

• Global compliance: Licenses in Hong Kong (SFC), Singapore, and Gibraltar.

• Elite backers: Thiel’s Founders Fund and Thiel Capital remain anchor investors.

• Leadership: Farley’s capital markets expertise and Block.one’s deep reserves (16.4K BTC initially).

Financials: Volatile Profits but Robust Reserves

Despite operational headwinds, Bullish’s balance sheet shines:

• Assets: $1.96B in liquid holdings, including 20,960 BTC ($1.735B), stablecoins, and ETH.

• Trading volume: $1.25T cumulative (2024 spot avg.: $1.5B/day), ranking among top 10 crypto exchanges.

• Losses: $3.48B net loss in Q1 2025 vs. $105M profit a year earlier, driven by market swings.

Risks:

• Client concentration: Top 5 users account for 69% of spot volume and 83% of trading revenue.

• BTC drawdown: Holdings dropped by 2/3 since 2022 (66,720 to 20,960 BTC), diverted to lending and investments.

Ownership: Insiders Dominate

Bullish’s control is tightly held:

• Block.one CEO Brendan Blumer: 36.3% of Class A shares (35.5% voting power).

• Other execs: Collectively own >60% of Class A shares.

• External stakeholders: Galaxy Digital (1.1%), Pu Luo Chung VC (12.6% post-IPO).

The Road Ahead

Bullish’s IPO hinges on capitalizing on crypto’s institutional wave, but sustainability questions linger. Can it balance regulatory compliance, client diversification, and profit stability? With Thiel’s backing and Farley’s market savvy, the stage is set—but Wall Street’s appetite for crypto volatility remains untested.

—Author: Nancy, PANews

(All figures as of 2025/03/31 unless noted.)

Key Takeaways:
✅ IPO Relaunch: Targeting NYSE amid regulatory clarity and institutional demand.
💰 Bitbonus: 20K BTC reserves ($1.7B+) anchor balance sheet.
⚠ Caution: High client reliance and recent losses underscore risks.
🔗 Backing: Peter Thiel and Wall Street giants provide credibility.

Team Background and Funding: Backed by Tech Titans

Yupp aims to solve the long-standing evaluation challenges in the AI field by building a "trustless" AI feedback market. By leveraging blockchain and crypto-economic incentives, Yupp enables diverse user feedback to flow freely, creating a scalable, fair, and transparent model evaluation layer. Through incentivized distribution of high-quality human-labeled data, Yupp can capture real user needs and preferences in various scenarios, helping AI developers iteratively optimize model performance.

Founded in June 2024 by Pankaj Gupta (Co-founder and CEO) and Gilad Mishne (Co-founder and AI Lead), with Chief Scientist Jimmy Lin (a professor at the University of Waterloo) as part of the core team, Yupp's founders have extensive experience in building and optimizing large-scale recommendation and search systems at Twitter, Google, and Coinbase.

Due to its vision of decentralization and transparent data value, which aligns with AI vendors' needs for trustworthy evaluation and user engagement, Yupp has garnered significant recognition from well-known figures in the tech industry and top-tier venture capital firms. Last week, Yupp announced the completion of a $33 million seed funding round led by a16z partner Chris Dixon. Other investors include Google Chief Scientist Jeff Dean, Twitter co-founder Biz Stone, Pinterest co-founder Evan Sharp, Perplexity CEO Aravind Srinivas, Stanford University professors Dan Boneh, Chris Re, Nick McKeown, and Balaji Prabhakar, as well as Coinbase Ventures.

Core Functions and User Experience: Building an "AI Parliament"

As a centralized AI evaluation platform, Yupp adheres to the philosophy of "Every AI for everyone," allowing users to easily discover, compare, and use the latest AI models. Unlike traditional single-response systems, Yupp returns two (or more) model answers for each prompt, forming an "AI Parliament." This design not only meets users' needs for diverse choices but also effectively identifies potential model "hallucinations," helping users make wiser decisions through comparison. As Yupp CEO Pankaj Gupta said, side-by-side outputs are particularly beneficial for users focused on identifying errors, as they can cross-verify results.

The platform currently supports over 500 AI models, covering text and image generation, including well-known models like ChatGPT, Claude, Gemini, DeepSeek, Grok, Llama, and many emerging ones. To further enhance the user experience, Yupp has introduced the "QuickTake" feature, which condenses lengthy responses into a concise tweet.

Moreover, Yupp places a high emphasis on user privacy: all chat records are private by default, and users can control what and how much they share. Even when sharing publicly, no personal information is disclosed.

Economic Model and Incentive Mechanism: Monetizing Data Labor

Yupp combines free usage with user feedback through its "Yupp Points" system to measure model usage. New users receive 5,000 points upon registration and can earn more by rating model responses, choosing preferences, and providing reasons. The higher the quality of feedback, the greater the reward, ensuring users can sustainably use high-end models like Claude Opus 4 or OpenAI o3 for free. The platform promises that points will only increase, and all models are currently available for free trial.

After each question, users receive two model responses and earn "digital scratch cards" with rewards ranging from 0 to 250 Yupp Points. Every 1,000 points can be exchanged for $1, with a daily withdrawal limit of $10 and a monthly limit of $50. Points can be exchanged for over 20 currencies, including USD and EUR, with partners like Stripe, PayPal, and Coinbase. The platform also integrates Base Ethereum L2 and Solana stablecoins to provide instant, fee-free rewards globally.

As Pankaj Gupta noted, the high-quality feedback generated by users is far more valuable for AI companies' model fine-tuning and reinforcement learning than the rewards themselves. Although users' monthly earnings may only be equivalent to a few cups of coffee, this paid-labeled data is crucial for AI iteration.

To encourage more participation, Yupp also offers referral rewards: referrers receive 5,000 points, and referees receive 1,000 points. Currently, new registrants receive 5,000 points, with an additional 2,500 points for referees.

Yupp VIBE Score: A New Paradigm for AI Evaluation

Addressing the issues of transparency, fairness, and uneven data access in existing leaderboards, Yupp has launched a test version of its AI leaderboard and the "Yupp VIBE (Vibe Intelligence Benchmark) Score" evaluation system. This system aggregates global user preferences generated through natural interactions to provide robust and trustworthy evaluation results.

Yupp's evaluation principles include:

• Robustness: Ensuring representativeness (covering diverse scenarios), authenticity (reflecting user concerns), and anti-cheating capabilities.

• Trustworthiness: Being fair and neutral (unbiased towards models), transparent (detailed disclosure of ranking algorithms), and rigorous (adhering to evaluation standards).

The platform not only collects binary preferences but also encourages users to point out the strengths and weaknesses of responses (such as "on-point," "fast," "good style," etc.) and analyzes preferences across different demographic groups based on users' age, education, and occupation.

Technical Aspects

On the technical front, Yupp is exploring the use of blockchain, cryptographic primitives, and zero-knowledge proofs to ensure the fairness, transparency, and verifiability of the evaluation process. The platform has also partnered with professional AI data providers to calibrate scorers through profile verification and multi-layer quality checks to eliminate malicious data.

The latest leaderboard update showcases the VIBE scores, win rates, dislike rates, speed, latency, context window, and cost metrics of models such as GPT-4.5 Preview, Claude Opus 4, and Claude Sonnet 4.

Development and Future Outlook

Yupp officially launched on June 13, 2025, after a six-month internal test. Since its launch, the product has continuously iterated:

• Multimodal Support: Integration with models like Dall-E, Flux, Stable Diffusion, Luma Photon, and Google Imagen 4, and support for user-uploaded images/PDFs.

• Expanded Interaction: Added voice input and voice reading functions.

• Model Updates: Introduction of models such as DeepSeek R1/V3, Mistral Small 3, OpenAI o3-pro, Hermes 3, Amazon Nova Pro v1, Microsoft Phi series, and the "MAX Model" category.

• Real-time Information: Routing online query requests to Perplexity and Google Gemini Live with hyperlinked citations.

• Payment Upgrades: Added support for PayPal and Venmo withdrawals in the US, and PayPal support for 24 currencies.

• Sharing and Exporting: Support for copying with format retention, and exporting in PDF, text, and Markdown formats, allowing users to share individual replies or entire conversations as needed.

• Community Engagement: Hosting "AI Prompt Challenges" with prizes up to tens of thousands of points; added personal profile pages and AI-generated chat names.

Yupp's mission is "Empowering humans to shape the future of AI." Pankaj Gupta believes that the development of AI requires the participation and contribution of everyone. Through multi-perspective AI responses and user feedback, Yupp not only helps users make better decisions but also provides continuous momentum for AI evolution.

It is worth noting that one of Yupp's main competitors is the open AI model evaluation platform LMArena (https://lmarena.ai/), which is very popular among AI insiders but is currently in the commercialization exploration stage and does not offer direct material rewards or points-based incentives for user participation through blockchain technology.

Overall, Yupp's crowdsourcing model, incentive mechanisms, and evaluation system driven by real user preferences have blazed a new trail in AI evaluation. It not only provides users with free and diverse AI interaction experiences but also transforms user feedback into high-value training data, driving continuous model optimization. With its experienced team and top-tier capital backing, Yupp is poised to play a key role in the future AI ecosystem, realizing the vision of "AI for everyone, shaped by everyone."

However, for the newly launched Yupp, how to ensure data quality and resist potential cheating behaviors under large-scale user participation, as well as strike a balance between commercialization and user incentives, will remain directions that Yupp needs to continuously explore and optimize in the future.

News of Pump.fun's planned $1B funding round at a $4B valuation has polarized the Solana community.

• Solana Establishment View:
  "Pump.fun is a parasite on Solana's ecosystem—the team profits by dumping SOL, doesn't stake, and shows no loyalty. Now they're squeezing the last drops of liquidity with this exit play. Shameless."

• Grassroots Supporters:
  "Pump.fun revolutionized asset issuance, liberating retail from VC-dominated hellscapes. It minted countless 'A7-A10' degens. The .fun model elevates Solana's asset creation to new heights."

The Truth Lies in Between

ABC Alpha's take:

• Pros: Pump.fun pioneered a new ICM (Internet Capital Market) paradigm, enabling retail participation.

• Cons: The team's relentless SOL dumping and inflated $4B valuation (feasible in 2024's bull run, not now) reek of an exit strategy amid fading meme coin mania.

The real question: If Pump.fun raises $1B and its token crashes post-listing, will Solana survive? Is the .fun model doomed like ICOs/NFTs/inscriptions?

ICM vs. VCM: Crypto's Two Asset Issuance Models

Since 2017, crypto has seen two dominant frameworks:

1. VCM (Venture Capital Market):

   • VC-funded projects → product development → token launch.

   • A traditional finance import, not native to crypto.

2. ICM (Internet Capital Market):

   • Community-driven asset creation (e.g., Bitcoin, Ethereum ICOs).

   • True crypto-native issuance, where early adopters (not VCs) shape ecosystems.

Why VCM Fails in Crypto:
Traditional markets restrict issuance to elite players (regulatory gatekeeping). Crypto flips this: Anyone can launch assets permissionlessly.

Why Past ICM Models (ICO/NFT/Inscriptions) Failed

• ICOs: Needed CEX approvals for trading (centralized bottlenecks).

• NFTs/Inscriptions: Poor liquidity, illiquid "floor prices."

Pump.fun's Innovation: Seamless Issuance + Liquidity

The .fun model merges:

• Trench Market: Permissionless token creation.

• Open Market: Instant on-chain liquidity via bonding curves.

This synergy democratizes access for retail and builders alike—fueling Solana's 2024 meme coin explosion.

Sustainability Concerns: Rug Pulls and Fatigue

While 80% of .fun tokens are rugs, the model evolves:

• Quality projects now emerge (e.g., teams blending VCM funding with ICM distribution).

• VCs can participate without disrupting retail fairness (locked allocations mirroring public vesting).

Verdict: Solana Won't Collapse

• Short-term liquidity drain? Yes.

• ICM extinction? No.

The .fun paradigm is here to stay—just as Bitcoin survived Mt. Gox, and DeFi weathered countless hacks. ICM is crypto's true native model, and Solana's infrastructure ensures its longevity.

As for VCM? Hybrid approaches will emerge, but the future belongs to permissionless, community-powered issuance.

Data: Pump.fun, SolanaFM | Image: TradingView, Dune Analytics

(For deeper ICM analysis, see ABC Alpha's thread: https://x.com/ABCAlphaDAOCN/status/1927673650419020089)

Since Trump took office as the President of the United States, it has been a period of chaos for various industries. As he celebrates the first 100 days of his second term, supporters of digital assets have also begun to assess what his administration has brought to the industry.

Mateusz Kara, CEO of cryptocurrency firm Ari10, told DL News that the question is whether "we overestimated what Trump could do?"

During last year's U.S. presidential election, the cryptocurrency industry supported Trump, hoping that he would end the Biden administration's crackdown on cryptocurrencies, implement rules favorable to the industry, and usher in a bull market.

Although some regulations have been relaxed, the White House's trade war has caused the global cryptocurrency market value to shrink by nearly 21% since its peak in December last year, which is about $800 billion.

Bitcoin has fallen by more than 10% compared to the level on the day before Trump's inauguration on January 20, when it reached a record high of $109,225.

According to Dow Jones market data, earlier this month, Bitcoin was hit along with other risky assets due to tariff concerns, falling below $74,500 on April 7. As of the time of writing this article, it has rebounded to around $94,500.

Trump's 100-Day Crypto Policy Report Card: Why Can't Promises Stop Bitcoin's "Roller Coaster"?

So, what promises has Trump fulfilled so far, and where is the industry headed?

The "Crypto War" of the Biden Era

Former U.S. President Joe Biden had harshly criticized cryptocurrencies, pushing for strict regulation of the industry and supporting the crypto crackdown initiated by then-SEC Chairman Gary Gensler.

During the campaign, Trump promised to end Biden's "crypto war."

After taking office, Trump replaced Gensler with the crypto-friendly new chairman Paul Atkins, who promised to bring clarity to crypto regulation.

This year, the SEC withdrew lawsuits against cryptocurrency companies such as Coinbase, Ripple, and Kraken.

Trump also appointed industry supporters, such as financial tycoon Howard Lutnick, who supports Tether, as Secretary of Commerce, and David Sacks as Crypto Czar.

In his first 100 days in office, Trump issued a series of comprehensive orders banning the creation of a digital dollar, protecting self-custody, establishing a regulatory crypto advisory group, and setting up a strategic Bitcoin reserve.

He also pardoned Ross Ulbricht, the founder of the Silk Road, and held the first White House Crypto Summit.

This year, federal regulators withdrew several crypto guidelines from the Biden era, paving the way for financial institutions to enter the crypto service market.

Symbolism > Substantive Benefits?

In short, it seems that Trump has fulfilled most of his cryptocurrency promises. So, why are some market observers dissatisfied?

Jonathan Dixon, an executive at regulatory tech firm eflow Global, told DL News: "So far, many campaign promises seem more symbolic than substantive."

"The Bitcoin reserve is essentially a rebranding exercise— these assets have already been held by the government and are not a sign of active market participation."

Dixon said that although Trump's actions mark a "rhetorical shift from the previous administration," "rhetoric alone does not translate into regulatory certainty."

The Trump administration has not yet pushed through new laws, but some are advancing on Capitol Hill.

Republican Senator Tim Scott of South Carolina said in early April: "We are making good progress."

Eric Rose, Head of Digital Assets at StoneX Digital, pointed out: "These are all very positive factors for the field, but they need time to prove themselves... Just because banks are allowed to enter the digital asset field does not mean they can do so tomorrow, right? They need time to formulate strategies, decide on the direction they want to develop, how to implement those strategies, and hire the relevant personnel."

Eric Rose told Market Watch that it could take up to two years of preparation.

The Chaos Brought by the Trade War

Mateusz Kara, CEO of Ari10, said: "The market may be disappointed with Trump's administration because we have not seen the market go up. This is the result of the delayed interest rate cuts and the chaos that Trump has brought to the market."

Trump has so far failed to fulfill his promise to cut interest rates, which are seen as a catalyst for risky assets such as cryptocurrencies and stocks.

This is one of the reasons why Bitcoin soared when the central bank cut interest rates in September and November.

The problem is that the Federal Reserve operates independently of the White House, and Federal Reserve Chairman Jerome Powell is unwilling to cut interest rates, especially after Trump imposed comprehensive tariffs on nearly 100 countries (including an island nation whose residents are mostly "penguins") and made the financial future of the United States more uncertain.

After Trump stopped these tariffs, the overall cryptocurrency market slightly recovered, but any hostile actions could offset this effect.

Anthony Young, Chief Business Officer of cryptocurrency risk management company CoinCover, said: "The U.S. government's trade war will inevitably affect the cryptocurrency industry, and the focus is on whether cryptocurrencies can continue to act as a hedge against global market behavior."

Some people believe that Trump's trade war may be beneficial to cryptocurrencies.

Papuna Lezhava, CEO and co-founder of fintech startup Keepz and former advisor to the International Monetary Fund, said: "Trump's foreign trade policy may actually make cryptocurrencies more attractive to those who wish to avoid the traditional financial system or government-controlled currencies."

In the dead of night, a luxury hotel in Dubai buzzes with activity as a multimillion - dollar trade agreement is inked. The buyer: an Iranian oil merchant. The seller: a Chinese entity. Oddly enough, the transaction sidesteps the US dollar and completely bypasses traditional banking networks.

Within minutes, a sum equivalent in USDT (Tether) transfers from the buyer's crypto - wallet to the seller's account, sealing the deal. The entire process is silent—no SWIFT messages, no bank scrutiny, not even汇率 fluctuation risks.

This scene is replaying across the globe—from Venezuelan coffee exporters to Nigerian families relying on cross - border remittances. Increasingly, people are abandoning traditional financial systems for a digital currency called "stablecoins."

On the surface, they're payment tools born of blockchain technology. Yet, beneath this facade lies a grander game: stablecoins are morphing into new - age financial weapons in the great - power struggle.

Digital - Era "Petrodollar"

Back in the 1970s, the US anchored the dollar to oil, cementing its global financial hegemony.

Today, a similar narrative unfolds on blockchains—only the protagonists are now USDT and USDC. These privately - issued stablecoins, pegged 1:1 to the US dollar, dominate 80% of the crypto - trading volume. They circulate like "digital dollars," free from Fed oversight and border restrictions.

But here's the catch: whoever controls these stablecoins indirectly steers global capital flows.

When Circle (USDC's issuer) froze Russian - linked addresses at the US government's behest, and when Tether (USDT's issuer) quietly amended its terms to claim the right to "freeze any account," reality dawned: beneath the decentralized utopia fantasy, stablecoins remain pawns of centralized power.

Hong Kong's Breakthrough and US Countermeasures

In 2024, China's Hong Kong launched a "stablecoin sandbox initiative," aiming to challenge the dollar体系 with a new stablecoin backed by the Hong Kong dollar.

But this breakthrough faces an uphill battle. User habits, network effects, and even code - layer dependencies (like the smart - contract templates of US - dollar stablecoins) form invisible barriers. More perilously, should Hong Kong stablecoins threaten the dollar's dominance, the US could simply pressure Apple and Google to delist related wallet apps, severing user access.

The Future Is Now: We Stand at a Crossroads

The endgame of this struggle might be a fractured blockchain world: a US - dollar stablecoin camp, a Chinese - yuan stablecoin camp, and a "neutral protocol" striving to survive in between.

As ordinary people effortlessly buy USDT on exchanges, they're unwittingly partaking in a silent currency war.

As a Wall Street analyst notes, "Every stablecoin transfer is a micro - geopolitical vote." The sole question looming is: as great - power financial warfare spills onto blockchains, will we be mere pawns, or can we carve out a third way?

Consultancy: Real - World - Assets

Digital Dollar Hegemony: The "Invisible Colonialism" of USDT/USDC

Stablecoins: The Blockchain Extension of US Dollar Hegemony

In 2023, the global stablecoin market cap surpassed 160 billion USD, with USDT (Tether) and USDC (USD Coin) reigning supreme.

On the surface, they're mere "digital dollars" providing liquidity to the crypto - markets. In reality, their operational models have propelled the US dollar's influence beyond traditional financial confines.

In conventional cross - border payments, the dollar relies on the SWIFT network and banking systems. Stablecoins, however, achieve "permissionless" global circulation via blockchain.

From African cross - border remittances and South American foreign trade settlements to Southeast Asian DeFi lending, USDT and USDC have become the de facto "blockchain dollars."

This means that even as some nations attempt to "de - dollarize," as long as their enterprises and individuals continue to use stablecoins, the dollar's influence remains unshaken.

Compliance as a Weapon: US Government's "Precision Financial Sanctions"

After the 2022 Russia - Ukraine conflict erupted, the US Department of the Treasury instructed Circle (USDC's issuer) to freeze wallet addresses linked to Russia, involving tens of millions of USD. This incident unveiled a critical truth: stablecoins are not fully decentralized; their issuers are still subject to US laws.

In contrast, Tether (USDT's issuer), registered in the Cayman Islands, has also cooperated with law enforcement to freeze suspicious addresses.

More critically, the reserves of USDT and USDC are predominantly held within the US banking system (e.g., at Signature Bank and Silvergate). This means the US government could随时 cut off their lifeline at any time.

This "blockchain - based sanctions" approach is more efficient than traditional financial sanctions—it requires no bank account freezes; merely tagging specific addresses on the blockchain can instantly immobilize funds.

The "Dollarization Trap" for Developing Nations

In countries grappling with high inflation like Argentina, Nigeria, and Turkey, citizens and businesses are massively adopting USDT as a savings and payment instrument. On the surface, this helps them evade local currency devaluation. However, in the long run, it renders these nations' economies more dependent on the US dollar framework.

For instance, in Argentina, the black - market USDT premium soars to 30%, as people prefer to bear the risks of crypto - currency volatility over holding pesos. In Africa, USDT has become the primary channel for cross - border remittances, supplanting traditional services like Western Union.

This "voluntary dollarization" enables the US to expand its monetary influence without lifting a finger. But here's the question—what would happen if the US government decides to restrict these nations' use of stablecoins one day?

Corporate "Boiling Frog" Syndrome

It's not just individual users; multinational corporations are quietly embracing stablecoins too. Some companies have begun using USDC to pay salaries, particularly in overseas branches of foreign - funded enterprises in high - inflation countries.

Furthermore, in global trade, USDT is evolving into the "default settlement currency." Against the backdrop of intensifying China - US trade frictions, some Chinese exporters now prefer USDT over dollar remittances to avoid bank scrutiny.

However, beneath this convenience lies a risk—if the US decides to impose stablecoin restrictions on a particular industry or nation, the affected enterprises could face an instantaneous断裂 of their capital chains.

Chapter - Core Conclusion

USDT and USDC are more than just technological products; they are the digital tentacles of US dollar hegemony. They enable the US to promote its financial policies and implement precise sanctions at a lower cost and with higher efficiency. For developing nations and multinational corporations, relying on stablecoins may mean enjoying convenience while simultaneously surrendering financial autonomy.

China's Breakthrough: Can the Stablecoin Sandbox "Seize the Tiger's Food" from Its Jaws?

Hong Kong's Ambition: Crafting a "Digital Hong Kong Dollar" Alternative

At the beginning of 2024, the Hong Kong Monetary Authority (HKMA) introduced the "stablecoin issuer sandbox initiative," permitting compliant institutions to pilot Hong Kong - dollar - pegged stablecoins. This policy is regarded as another crucial move by China in the digital currency arena—attempting to carve out a niche in the US - dollar - stablecoin - dominated market.

Hong Kong's competitive edges lie in:

Backed by RMB liquidity: The sandbox mandates a 1:1 Hong Kong - dollar reserve, but in the future, it may allow partial RMB collateral, forming a "dual - currency peg."

Regulatory flexibility: Compared to the mainland's strict crypto - policies, Hong Kong offers an "experimental space," luring global compliant issuers.

Geopolitical bridge role: Targeting "intermediate markets" like Southeast Asia and the Middle East, it provides an alternative to US - dollar stablecoins.

Yet, challenges loom large—currently, in global stablecoin trading, Hong Kong - dollar stablecoins account for less than 0.1%. Building user habits and liquidity networks demands time.

Sandbox Real - War: Survival Experiment of First - Round Participants

The first sandbox entrants include:

Traditional banking: such as HSBC's "HSBC Coin," focusing on corporate cross - border settlements;

Crypto - natives: like the Hong Kong Exchanges - backed "HKD Token," targeting retail payments;

Chinese - backed projects: a subsidiary of a central SOE trial - launching the "CNH Stable," exploring RMB - Hong Kong dollar hybrid collateral models.

Initial data suggests higher corporate adoption than individual users. For instance, a Greater Bay Area trade company used HSBC Coin to pay Malaysian cargo fees, saving 50% on fees and time. However, ordinary consumers still favor USDT— "Can the yield of Hong Kong - dollar stablecoins surpass USD products?" becomes the pivotal question.

US's Invisible Sniper: Technological, Liquidity, and Ecosystem Suppression

The moat of USD stablecoins lies not only in monetary credit but also in the full - chain infrastructure:

Exchange hegemony: Binance, Coinbase, and other platforms prioritize USDT trading pairs; Hong Kong - dollar stablecoins face higher listing fees.

DeFi protocol dependency: 90% of Ethereum's stablecoin liquidity pools are based on USDC/USDT; new coins require massive subsidies to attract market makers.

"Supply - cutoff" risk: Should Hong Kong stablecoins threaten the USD's status, the US might pressure AWS, Google Cloud, etc., to terminate technical services for related projects.

In March 2024, a Hong Kong - dollar stablecoin issuer suddenly encountered a USD settlement channel shutdown, forcing a one - week redemption suspension—a move widely seen as a "stress test" for the sandbox.

Long - Term Struggle: Strategic Depth Beyond the Sandbox

Hong Kong's ultimate goal is not to directly defeat USDT but to build an "alternative ecosystem":

Bound to digital RMB: Attracting "Belt and Road" nations via a "digital Hong Kong dollar - digital RMB" quick - conversion channel.

Regulatory arbitrage edge: Offering compliant fund - access channels for sanctioned regions (e.g., Iran and Russia).

Financial weaponization countermeasure: Should the US freeze Hong Kong USDT addresses, Hong Kong - dollar stablecoins could serve as an emergency liquidity source.

But all of this hinges on whether mainland China can tolerate Hong Kong becoming a "crypto free port." Recent crackdowns on mainland OTC trading have already sent chills through some sandbox participants.

Chapter - Core Conclusion

Hong Kong's stablecoin sandbox is a bold breakthrough attempt. Still, the network effects and technological hegemony of the USD system remain insurmountable barriers. In the short term, the sandbox may only serve niche markets. The long - term outcome depends on the speed of China - US financial decoupling and whether RMB internationalization can provide sufficient support.

Extreme Scenario Simulation—When the US Sanctions a Nation's USDT Addresses

Sanctions "Technical Feasibility": Blockchain ≠ Land of Liberty

In 2023, Tether (USDT issuer) voluntarily froze over 600 addresses involving billions of USD, citing "compliance with law enforcement demands." This action shattered the illusion of "unregulatable cryptocurrencies." As long as stablecoins are issued by centralized institutions, they will inevitably be subject to political power.

In theory, the US government could impose blockchain - based sanctions via the following means:

Direct pressure on Tether/Circle: Require freezing of all addresses in specific jurisdictions (e.g., Iran, Russia).

Bank - end strangulation: Cut off the USD reserve accounts of issuers, paralyzing the redemption function.

Exchange encirclement: Compel Coinbase, Binance, and other platforms to delist USDT trading pairs for target - nation users.

More dauntingly, blockchain analysis firms like Chainalysis can track capital flows via big data. Even mixers offer no full anonymity.

Economic Nuclear Explosion: On - Chain Financial Shock in Sanctioned Nations

Assuming the US suddenly sanctions a nation's USDT circulation, the following chain reactions might unfold:

Black - market premiums soar: For instance, Iran's OTC USDT price could spike by 50%, causing import - goods price失控.

Corporate payment paralysis: Foreign - trade firms reliant on USDT settlements face cash - flow breaks and are forced to turn to higher - risk Bitcoin or local stablecoins.

Public asset freezes: Ordinary people's USDT savings become "dead money," sparking street protests.

History has already previewed this: After Tether froze addresses linked to Tornado Cash (a US - sanctioned mixing protocol) in 2022, numerous innocent users' funds were mistakenly sealed, triggering crypto - community panic.

National Countermeasures: From "Blockchain Firewall" to Digital Currency Alliances

Sanctioned nations might adopt the following countermeasures:

Legislate mandatory local - exchange "USDT isolation": For example, Russia mandates domestic platforms to support only RUB - pegged stablecoins.

Foster local alternatives: Iran launches the "Digital Rial," but its liquidity is limited by international recognition.

Form alliances to resist: Nations like China and Russia may jointly build a "non - USD stablecoin clearing network," backed by gold or energy.

Yet, this is filled with irony—to counter "centralized USD stablecoins," nations must establish another centralized system.

Ordinary People's Survival Game: How to Protect Yourself Amid Sanctions?

As national - level confrontations escalate, individual users can only "hedge their bets":

Diversified holdings: Hold USDT, USDC, DAI, and other stablecoins of different backgrounds.

Cold storage in hardware wallets: Avoid keeping large assets in exchange - based wallets that may be frozen.

Physical hedging: During tense situations, exchange part of stablecoins for gold or Bitcoin.

A Moscow - based crypto broker candidly states: "We now resemble black - market traders in the Cold War era—always ready for Plan B."

Chapter - Core Conclusion

The US's ability to sanction USDT addresses marks the arrival of "Financial War 2.0"—more precise and harder to defend against than SWIFT. For small nations and ordinary people, the cruelty lies in this dilemma: embracing or resisting USD - backed stablecoins both come at a steep price.

Future Warfare—The "Three - Body" Game of Stablecoins

A Tripolar World: The Formation of Digital Currency Camps

The global stablecoin market is fragmenting into three major blocs:

USD - bloc (USDT/USDC): Controls over 80% of on - chain USD liquidity, relying on existing financial and technological might.

RMB - bloc (Digital RMB + Hong Kong stablecoins): Penetrating via trade settlements and the "Belt and Road" network but constrained by capital controls and Western tech dependency.

"Neutral" - bloc (DAI, algorithmic stablecoins): Aims to replace politics with code, yet the 2022 Terra collapse proved the dubious stability of full decentralization.

This resembles a digital - age "Three - Body Problem"—none can annihilate the others, but any imbalance risks systemic crisis.

Black Swan Alerts: Financial Doomsday Scenarios

Scenario one: Tether crisis

If USDT's reserves prove insufficient (akin to the 2021 controversy), it could trigger an on - chain "bank run," causing a global crypto - market crash of over 40% in a single day.

Scenario two: HKD stablecoin breakthrough

Should the HKD - backed stablecoin bind to ASEAN trade, forming a "Digital ASEAN Yuan Zone" with a transaction volume exceeding 1 trillion USD annually, it would directly challenge the SWIFT system.

Scenario three: US crypto "internet disconnection"

By controlling AWS, Apple App Store, and similar infrastructure, the US could vanish adversarial nations' stablecoin apps from the internet instantaneously—a move deadlier than financial sanctions.

New Order Survival Guide

For nations:

Establish "on - chain foreign - exchange reserves": Hold multiple stablecoins to hedge against single - currency risks.

Develop autonomous infrastructure: Achieve full - scale de - Americanization from cloud computing to blockchain nodes.

For enterprises:

Multi - currency settlement systems: Simultaneously connect to settlement channels like USDC and digital RMB.

Smart - contract insurance: Automatically transfer frozen assets via DeFi protocols.

For individuals:

Master cross - chain technology: Rapidly transfer value across different blockchain networks.

Beware of "patriotic coin" traps: Locally - endorsed stablecoins by governments may carry inflation risks.

The Ultimate Paradox

The irony of this struggle is that people use blockchain technology to escape centralized power, yet ultimately rely on stronger centralized forces for protection.

When a nation's central bank abruptly declares in 2025 that "all unauthorized stablecoin transactions are illegal," tech - libertarian critics of government incompetence may be the first to beg for state protection.

Stablecoin Warfare: Are We Losing the Future?

Every time you click "Buy USDT" on an exchange, are you aware that you're becoming a pawn in great - power financial games?

Stablecoins, once touted as "tools for financial freedom," have veered into the opposite direction.

The rise of USDT and USDC is essentially the digital transformation of US dollar hegemony—they allow the US to control global capital flows at a lower cost and with higher efficiency.

People from developing nations adopt USDT to evade inflation, yet this deepens their economies' dollar trap. Corporations using USDC settlements for convenience risk their lifelines to third parties that could turn against them at any time.

Hong Kong's stablecoin sandbox is a brave challenge, yet breaking through the network effects and technological hegemony of the USD system is fraught with thorns. The US's ability to sanction USDT addresses has stripped bare the hypocrisy of "decentralization"—before power, code remains fragile.

More worryingly, the future may see "financial fragmentation." As nations build their own blockchain - currency barriers and individuals disperse assets to evade risks like spies, we won't gain a freer financial system but a more fractured and unstable world.

In this struggle, there are no innocents. The US government weaponizes stablecoins, Chinese enterprises attempt Hong Kong - based breakthroughs, and ordinary users waver between convenience and risk—everyone is fueling a system that may ultimately harm them.

Perhaps the only way out is to reject binary choices: neither blindly follow USDC nor trust government - backed new stablecoins. Instead, insist on genuine decentralized alternatives. But this path is doomed to be tough, for human nature always craves convenience over freedom.

The stablecoin war has no gun smoke, yet its stakes are higher than real war—it determines the global wealth distribution for the coming decades. With every transfer, we're casting votes for this future.

Today, Monad’s official team announced on social media platform X: “Monad is about to become even more stable!” This statement hints at an upcoming Token Generation Event (TGE), signaling a robust momentum for future development! Stay tuned for official community updates in the near future.

Introduction to the Monad Project

Monad is building a revolutionary Layer 1 public blockchain designed to enhance blockchain performance by 100–1,000x through groundbreaking technology, resolving throughput and efficiency bottlenecks faced by existing networks (e.g., Ethereum). Its core mission is to accelerate the mass adoption of decentralized applications by supporting more complex DApps (e.g., high-concurrency DeFi, on-chain gaming) and driving large-scale utilization.

The Monad Team

• Keone Hon: A MIT prodigy and high-frequency trading legend, formerly a core member of Jump Trading. He applies microsecond-level optimization strategies to build a blockchain capable of handling 10,000 transactions per second.

• James Hunsaker: An Iowa University geek and distributed systems expert with eight years of experience at Jump Trading. He invented an optimistic parallel execution engine to overcome EVM performance limitations.

• Eunice Giarta: A cross-disciplinary MIT elite and traditional fintech veteran, previously in charge of payments at Shutterstock. She leverages Wall Street resources to weave a decentralized financial network.

Monad’s Funding Journey

• In February 2023, Monad secured $19 million in Series A funding led by Dragonfly Capital to develop parallel EVM technology and build a high-performance blockchain infrastructure.

• In April 2024, it raised 225millioninaSeriesBroundledby∗∗Paradigm∗∗,reachinga3 billion valuation. Funds will expedite mainnet launch and create an Ethereum-compatible high-performance public chain.

• In May 2024, Monad completed another funding round led by OKX Ventures, with undisclosed details.

Key Features of Monad

• Parallel EVM Execution: Breaks Ethereum’s sequential processing constraints by enabling parallel transaction execution, achieving a theoretical throughput increase of 100–1,000x and over 10,000 TPS.

• Full EVM Compatibility: Supports 100% of Ethereum development tools and smart contracts, allowing developers to migrate existing DApps seamlessly with zero learning curve.

• MonadBFT Consensus Mechanism: Combines a HotStuff variant with optimistic execution to achieve millisecond-level transaction confirmations while maintaining decentralization.

• High Performance, Low Cost: Optimizes state storage and reduces node requirements, significantly lowering gas fees and supporting high-frequency DeFi/GameFi applications.

• Developer-First Ecosystem: Retains Ethereum RPC interfaces, integrates with mainstream tools like MetaMask, and offers migration subsidies and developer incentive programs.

Future Outlook for Monad

Monad is poised to become a benchmark for next-generation high-performance EVM public chains. By leveraging parallel technology to overcome Ethereum’s performance bottlenecks, it aims to achieve 10,000+ TPS and millisecond-level confirmations. Its full compatibility with the Ethereum ecosystem will attract developers and DApps to migrate. If the mainnet launches as planned, it could reshape the Layer 1 competitive landscape, becoming the preferred infrastructure for high-frequency applications like DeFi and GameFi, and driving mass adoption of Web3.

Introduction to Grass
Grass is a data aggregation network that combines AI and the Decentralized Physical Infrastructure Network (DePIN) and is built on the Solana network. It allows people to make full use of the unused Internet or share idle Internet bandwidth, use the unused Internet bandwidth to collect information from the public network, and then use this information to train large language models (LLMs). At the same time, it establishes a transparent data market and provides passive incentives for all participants.
Founded in 2023, through two major components, the Grass node and the sovereign data aggregation, Grass converts unstructured network data into structured data sets. This network has more than 2 million users running nodes, processes more than 100TB of data every day, and has more than 2.5 million nodes in 190 countries around the world, crawling a large amount of data for AI models.

Composition of the Grass Architecture
The core technical architecture of the Grass network consists of multiple important parts, including Grass nodes, sovereign data Rollup, zero-knowledge proof, Web request proof generation, etc.:

Grass Nodes: These refer to the user devices with the Grass client installed, and they are also the core components of the Grass network. Each node has a unique identifier. Through browser extensions, desktop applications, Android mobile applications, etc., they provide the unused bandwidth of the Internet connection to obtain information from network servers and transfer it to the router.

Sovereign Data Rollup: This refers to the validator (responsible for issuing data collection instructions), the router (responsible for distributing Web requests), and the nodes (providing computing power and bandwidth). The ZK processor ensures that every network operation is transparently recorded, thus achieving comprehensive traceability of the AI training data.

The Grass Team
What makes Grass different from others is that the team has won the respect of users through emphasizing the community and adopting a fair and transparent approach. Most of the members remain anonymous, and the main body is the Andrena team, which was launched by Wynd Labs in June 2023. Only Andrej Radonjic, the co-founder of Wynd Network, has a public identity:
As one of the co-founders of Grass, Andrej Radonjic holds a master's degree in mathematics and statistics from York University and a bachelor's degree in engineering physics from McMaster University. His goal is to provide individuals with the opportunity to obtain incentives in the development of AI. As early as 2023, when he was running his own residential proxy service provider, he realized the deficiencies of traditional service platforms.

Financing of Grass
Since its establishment, Grass has experienced two relatively large fundraisings, and its valuation has reached nearly one billion US dollars:
In July 2023, Grass announced the completion of a $1 million Pre-seed round, led by No Limit Holdings!
In December 2023, Grass obtained a $3.5 million seed round, led by Polychain and Tribe Capital!
In September 2024, the Grass Network completed a fundraising with an undisclosed amount, led by Hack VC, and participated by Polychain Capital, Delphi Digital, Lattice, and Brevan Howard Digital, etc. This round made the valuation of Grass reach nearly one billion US dollars.

Summary of Grass
Although Grass has achieved remarkable results, and this event is approaching the deadline. It not only reflects the enthusiasm for the DePIN track but also marks a breakthrough of the Solana ecosystem in the field of decentralized physical infrastructure. Grass aims to establish a fair, open, and decentralized data layer, which stands in sharp contrast to centralized AI data providers. With its innovative architecture and focus on Web3, Grass has the potential to build a fair and open data layer for AI protocols and companies.

Editor's Note: This article explores the process by which Web3 has gradually been eroded by capitalism from its decentralized ideal: initially established by pioneers seeking freedom, Web3 attracted capitalists with scarce block space like Bitcoin. Subsequently, the expansion of new territories like Ethereum and Layer-2 technologies led to a flood of block space, reducing its value. Despite the emergence of new lands, Web2 users hesitate to migrate due to complexity and risks, while major players like exchanges and market makers profit by manipulating the market. Ultimately, Web3 has deviated from its original intent, becoming a speculative playground dominated by capital.

Web3 is quite novel—it was initially established by pioneers who believed in decentralization, freedom, and autonomy. In its early days, it was a wild, unexplored land with no rulers, only builders.

But then, bridges were built between Web2 and Web3. At first, only a few capitalists from Web2 arrived, attracted by the raw potential of this new world. They stood by, observing, analyzing the terrain, understanding the rules, and identifying the most valuable territories.

The first large-scale colonization began with Bitcoin—the most precious country on the Web3 island. It was a scarce land with clear ownership, where power belonged to those who understood its fundamental principles.

But once the first settlers took control and accumulated wealth, they began to expand. They discovered that Web3 was more than just Bitcoin. There were vast, undeveloped lands waiting to be shaped. Soon, they moved beyond Bitcoin to establish new territories—Ethereum, Solana, Polkadot, and countless other domains.

As more lands were discovered, the race to carve up new countries intensified. Initially, block space was scarce. The earliest blockchains operated under strict limitations—each transaction required space, and space was not abundant. This scarcity gave block space immense value. Owning a small piece of block space meant having a seat in the new digital economy. But as competition grew, so did innovation.

More efficient ways of creating block space emerged. Layer-2 solutions, rollups, alternative chains—each brought a flood of new land to the Web3 planet. What was once scarce became abundant.

Builders no longer fought over limited space; instead, they created endless new lands to meet the growing demand for settlement. But the flood of block space had unintended consequences.

What was once precious became cheap. The cost of storing transactions—once a key economic force—plummeted dramatically. The promise was that cheap block space would attract millions of new settlers from Web2, but that was not the reality.

They had heard stories of adventurers entering Web3, lured by the promise of wealth, only to be devoured by predators. Some residents of Web2 did take the plunge, attracted by tales of overnight riches.

They entered Web3, hoping to secure a place in the new economy. Many started by buying small plots of land—various tokens, each promising future value. They traded, speculated, and started businesses, believing they were at the forefront of the next great revolution.

But they failed to realize that Web3 had long been structured by the earliest settlers and the most powerful capitalists. The rules of the game were not written down, but those who controlled the land knew them well. As more people from Web2 migrated, they unknowingly fell into traps. The complexity of Web3 was daunting.

Too many new countries, each with its own rules, and scams disguised as opportunities abounded. Major players controlled the flow of information, manipulated the market, inflated values, and pulled the rug out from under unsuspecting settlers.

The Web3 planet became a playground for those who knew how to extract wealth from the ignorant. Even though block space was cheaper than ever, adoption remained slow. The dream of mass migration from Web2 to Web3 was crumbling.

The new lands promised seamless user experiences but never reached the familiarity and convenience offered by Web2. The promise of quick incentives was not enough to win people over—people from Web2 had seen too many of their peers get burned.

They watched entire countries in Web3 rise and collapse overnight, with fortunes gained and lost in the blink of an eye. Ordinary people hesitated, unable to see through the chaos. Yet, in the turmoil, a thriving market for trading emerged.

Real estate in Web3—tokens—became the lifeblood of its economy. Everything was for sale. Each country had its own assets, unique value, and promises for the future. The trading floor never closed, operating around the clock, driven by speculation, manipulation, and greed.

Some countries prospered temporarily, only to decline as attention shifted. New lands were minted daily, sold to the highest bidder, with the promise of doubling one's money in the short term. The cycle was endless. And while settlers struggled, the true beneficiaries of Web3 thrived.

Bridge operators—exchanges—became the gatekeepers, controlling the flow of assets between Web2 and Web3.

They made a profit every time someone entered or left. Market makers—the hidden force managing liquidity—ensured that every trade was watched and took a cut. Developers kept building, not necessarily for innovation, but to create more land to sell. And marketers? They wove stories, crafted narratives, and sold dreams to the next wave of hopeful settlers.

The dark side of Web3 is that it is no longer truly decentralized. The ideal of the early, free, and open digital frontier has been replaced by the harsh reality of capital.

The same forces that dominated Web2 have infiltrated Web3. They did not just settle; they reshaped the planet to meet their needs. Thus, the Web3 planet continues to expand, becoming an endless frontier of digital land, speculation, and fleeting opportunities.

The dream of true decentralization still exists. Settlers keep arriving, hoping to strike it rich, but in the end, most leave poorer than when they came.

Meanwhile, those who control the system continue to extract, build, and dominate, ensuring that the planet remains shaped by them.

In this season that should be full of blooming flowers and vitality, the crypto market is instead mired in a downward trend, with continuous declines. Most cryptocurrency investors are worried all day long, tossing and turning at night, finding it hard to sleep. Not only are their bodies being dragged down, but their invested capital is also significantly reduced. This is the true picture of most people in the crypto market at present.

Now, the most common question everyone asks is: Will the bull market come back? Is the bull market over completely? Which altcoins are worth bottom-fishing?

To be honest, most newcomers to the crypto market have heard of the legendary stories of overnight wealth in the crypto market, and they come in with the dream of making a fortune with a small bet in a short period, reaping tenfold or even a hundredfold returns.

Under the influence of the current social and economic environment, people have become generally impatient, and this kind of thinking is understandable. In the past, the spread of information was very limited. What you knew was just the trivial matters between neighbors or a few dynamics in the village. But now it's very different. You can see the bride who spent millions to marry someone else by spending just 10 yuan to open a membership, and dance in front of the camera. Coupled with the pressure from society and family, the desire for money and the expectation to cross classes have become increasingly strong.

Qing Tian is one of the earlier batch of people to join the crypto market and has experienced several rounds of bull and bear cycles. I have to admit that the crypto market did create a group of rich people in its early days. I have many friends who started with thousands of Bitcoins and have held on to now. The initial investment of hundreds of thousands has now turned into hundreds of millions or even billions of huge wealth. Is this just luck?

Of course not, it depends on unique vision and even deeper cognition. If you are a newcomer in front of the screen, still thinking about making a big profit in the crypto market by luck, I suggest you might as well buy lottery tickets, maybe the chances of winning are even higher.

In today's era, wealth is realized through cognition. Of course, if you have extensive connections and great energy, you can also profit from information differences, but in the ruthless and ruthless market of the crypto, you must have a pair of eyes that can see through the appearance, otherwise, you may be calculated without knowing it, maybe even helping others count the money.

At present, the liquidity in the crypto market is almost exhausted, and the tragedy of the last major bear market seems to be repeating itself. Recently, chaos has arisen in the crypto market. An exchange on a certain chain, fearing being shorted by bears, actually forcibly liquidated players' contracts and then directly delisted the related cryptocurrency, declaring defeat.

Some exchanges have started an meme coin craze, creating a lot of momentum, and a group of followers flocked to it, launching voting activities, with various unspeakable operations behind the scenes. As a result, four coins were listed at the same time, among which the one with the largest purchase volume by retail investors, "a piece of cloth on the head," plummeted as soon as it was listed, draining the funds of retail investors, such a really ugly way to eat.

It is unclear whether there is an internal management issue or if it has always been like this, in short, the reputation of the exchange and its related persons has been completely wiped out and has been met with a lot of criticism. Subsequently, a series of coins such as act have plummeted more than 50% from the bottom, igniting the fuse of the market crash. The next day, many projects and coins joined this downward melee, and the entire crypto market turned green. Those unscrupulous market makers played games with each other, manipulating a large number of coins that lack buy orders in the mouse warehouse, and the market makers engaged in hedging operations, just throwing out a million or two million funds, which could cause contracts worth tens of millions of dollars in the market to explode.

What I worry about is that the current market liquidity has dropped to the freezing point, and the project side does not have a good outlook on the future market, so they choose to harvest retail investors in advance.

What's worse, more and more projects and coins join in a follow-up, all afraid that they will not get more benefits if they are a step late. As a result, this directly leads to the overall market collapse, and some coins and projects that lack appeal and value support will face a significant reduction until they return to zero.

I clearly remember that when the market collapsed in the market last time, many small institutions and capital could not escape, and were eliminated. Therefore, in the future, you must not casually trade those so-called new projects and small coins, do not harbor illusions, thinking you can pick up the lowest price, you should know, in this market, if you want how much, the other party can sell you how much, you must always remember this point.

At present, everyone is generally worried about the economic prospects of Western countries. With the formal implementation of the tariff policy, it seems that the era of Trade War 2. The United States' intention is very clear: reduce the trade deficit, bring manufacturing back to the local area, and incidentally increase fiscal revenue.

Many ordinary people do not have a clear concept of the impact of tariffs. Once tariffs are imposed, it means that export costs will increase, and the expenditure of American consumers will also rise accordingly, and inflationary pressure will naturally follow. The global stock market has started a selling wave, and the price of gold has soared all the way, geopolitical conflicts continue to intensify, affected by this, the price of Bitcoin also fell by nearly 10%.

If the EU, Canada, and China choose to respond forcefully, and the trade war further escalates, the global economy and the cryptocurrency market will inevitably fluctuate significantly. As ordinary investors, all we can do is to be cautious.

You should know that the total amount of wealth will not disappear out of thin air, but just flow between different people. Later, if inflation really intensifies, whether the Federal Reserve will raise interest rates, and how much it will raise, will become key factors affecting the trend of Bitcoin.

Recently, the U.S. House of Representatives narrowly passed a temporary funding bill with a slim margin of 217 votes in favor vs. 213 against, barely averting a government shutdown crisis. The bill extends government funding at current levels until September 30th and has been sent to the Senate for review.

The current federal funding is set to expire at 11:59 PM on March 14th. What does this mean?👇

Today, let's dig into the truth behind this!

🔥 What Exactly Is a Government Shutdown?

A U.S. government "shutdown" is no joke! Simply put, if Congress fails to pass a funding bill and the government runs out of money, certain departments will be forced to suspend operations.

👉 Who Will Be Affected?

❌ Government employees may face furloughs or unpaid leave.

❌ National parks, passport processing, and some administrative services may be suspended.

❌ The economy and financial markets may experience short-term volatility.

⚠ But don't panic—essential departments like the military, police, and healthcare will continue to operate, though their staff may not receive paychecks!

🚨 What's the Truth Behind This Crisis?

1⃣ It's just a "temporary reprieve" without solving the root problem!

The funding bill passed by the House only extends the current funding levels to September 30th, essentially kicking the can down the road without establishing a new budget. This means:

⚠ There will be another fiscal crisis this year!

⚠ The U.S. national debt has already exceeded $34 trillion, with deficits growing larger!

2⃣ Why Do Crises Always Happen on Weekends?

Have you noticed that the "deadlines" for U.S. government shutdowns often fall on Fridays or weekends? This is a political tactic!

✔ Reduce market impact: If the government does shut down, there's still time to find a solution before the markets open on Monday.

✔ Create political pressure: Force opponents to compromise, only offering a "lifeline" at the last minute.

3⃣ The U.S. Fiscal Situation Is Seriously Troubled!

🔺 Soaring interest payments on the national debt: Just paying interest is expected to exceed $1 trillion in 2024!

🔺 Declining dollar credibility: International markets are increasingly worried about the possibility of U.S. debt default.

🔺 Worsening partisan disputes: Neither party wants to budge, always dragging things out until the last moment to find a solution.

💰 What Does This Mean for the Global Markets?

1⃣ Short-term stability in U.S. stocks, but increased long-term risks.

2⃣ Rising U.S. bond yields, leading to higher financing costs.

3⃣ Gradual erosion of dollar credibility, with international capital potentially seeking other safe-haven assets.

In the long run, the U.S. government's fiscal health is deteriorating. Each government shutdown crisis is a test of the dollar's credibility!

StakeStone is a liquid staking derivative basket (LSDb) token backed by ETH staking rewards. It integrates mainstream staking pools, Re-Stake, and LSD blue-chip DeFi strategies to provide a highly adaptable staking reward asset for all protocols. StakeStone aims to provide liquidity for LSD and meet the needs of decentralized finance (DeFi) ecosystems.
Tags: DeFi, LSD
Ecosystem: Ethereum, Manta
Founded: 2023
Location: Singapore
Website: https://stakestone.io/
Twitter: https://x.com/Stake_Stone

Team Members:

• Charles K: Co-founder of StakeStone.

• Rose Li: CSO of StakeStone, graduated from the University of Sydney, Australia.

• Ivan K: Chief Marketing Officer of StakeStone.

• Chris Core: Contributor to StakeStone.

Funding Journey:

• March 25, 2024: OKX Ventures announced an investment in StakeStone, a full-chain LST protocol, and established a strategic partnership.

• November 11, 2024: StakeStone completed a $22 million funding round led by Polychain Capital. The round also included strategic investments from Binance Labs and OKX Ventures. The seed round was led by SevenX, with participation from Nomad Capital, HashKey Capital, HashKey Cloud, Amber Group, Coinsummer, Bankless Ventures, DAO5, Symbolic Capital, Arcane Group, Quantstamp, and others. This funding will drive StakeStone's accelerated growth, expand its product services, and strengthen its influence in key markets.

Advantages of StakeStone:

StakeStone aims to provide innovative liquid staking solutions for the DeFi ecosystem. By introducing the concept of yield-bearing ETH, StakeStone allows users to enjoy staking rewards while maintaining asset liquidity. Its cross-chain compatibility and automatic yield optimization mechanism (OPAP) further enhance its potential in a multi-chain ecosystem, offering users an efficient, flexible, and yield-maximizing staking platform.

StakeStone's core strengths lie in its innovative technical architecture and user-centric design philosophy. By providing non-custodial and transparent liquid staking services, StakeStone ensures the security of user funds and the transparency of rewards. Its STONE token, built on LayerZero, achieves cross-chain liquidity, allowing assets to flow freely between different blockchain networks. This not only opens up broader market opportunities for users but also simplifies the integration process for Layer2 developers.

In terms of operation, StakeStone allows users to stake ETH or other supported assets into its protocol. These assets are then converted into corresponding yield-bearing ETH or other forms of LSTs, representing users' staked assets and their rights to rewards. Through the OPAP mechanism, StakeStone can automatically adjust and optimize the underlying asset allocation in response to market changes and staking pool performance, ensuring users receive the best possible staking rewards. The reward distribution mechanism ensures that staking rewards (including transaction fees, governance rewards, etc.) are regularly distributed to STONE holders, either through direct token allocation or by increasing the value of STONE.

In summary, StakeStone's innovative solutions and technical advantages not only address the issue of asset liquidity loss during crypto asset staking but also provide an efficient solution for cross-chain asset management, significantly advancing the development of DeFi and cross-chain liquidity.

StakeStone's Whitepaper Release:

StakeStone has officially released its whitepaper, which states that StakeStone is a decentralized adaptive full-chain liquidity infrastructure. The protocol introduces STONE (yield-bearing ETH), SBTC, and STONEBTC (full-chain liquidity BTC and yield-bearing BTC), as well as LiquidityPad, enabling users to unlock full-chain liquidity while earning optimized and sustainable returns.

StakeStone's governance token, STO, is responsible for coordinating all value flows across the chain and achieving decentralized governance of the protocol. StakeStone adopts a voting token model (veSTO) as the foundation of its governance system. By locking STO tokens, holders can obtain veSTO. Additionally, StakeStone will implement a multi-burn mechanism.

How Does StakeStone Stand Out in the Competitive Liquidity Field?

LRTs are a staking pool protocol primarily offering core staking services. In contrast, StakeStone positions itself as a liquidity asset protocol, focusing on issuing liquidity assets from day one—a significant difference.

For StakeStone, staking services are a means to help users cover Ethereum's risk-free yields. We collaborate with staking service providers like InfStones and StakeFish, but StakeStone itself is not a staking service provider. I believe that even LRs have weaker staking capabilities compared to specialized staking service providers.

As a liquidity asset protocol, several conditions must be met: First, assets must be transparent to encourage users to deposit. Second, assets must have real liquidity, allowing users to deposit or withdraw at any time.

Overall, StakeStone has significant advantages in asset transparency, liquidity, and composability. Every asset in its pool is highly transparent. StakeStone ensures that assets have real liquidity, enabling users to deposit or withdraw at any time. Additionally, composability allows STONE to be easily integrated into various DeFi protocols, offering users more diversified application choices.

What Other Utilities Does StakeStone's Token Have Besides Governance?

We allow changes to the underlying assets, but the process is entirely decentralized and requires the consent of LPs. We cannot arbitrarily change the underlying assets. STONE holders can participate in this decentralized governance mechanism.

Regarding the underlying assets, StakeStone will, under controllable risk or risk-free conditions, strive to allocate more competitive underlying assets. STONE continuously captures and adjusts the underlying assets based on yield, with the frequency of adjustments related to the emergence of new underlying assets. Currently, major underlying assets typically appear once every quarter to half a year. I believe StakeStone is more akin to a yield-bearing ETH version of MakerDAO.

Project Summary:

The LRT project, through its carefully designed high-reward incentive strategy, successfully attracted a large amount of arbitrage capital to purchase PT products on the Pendle platform. This artificially created boom is about to face a significant turning point. These incentives led some users to sell their rights tokens at a discount in exchange for more YT shares, thereby increasing the annualized yield of PTs.

However, while this short-term capital aggregation may seem attractive, it is not sustainable and poses risks for long-term development. In contrast, StakeStone's prudent strategy—such as supporting instant withdrawals and introducing external market makers to meet exit demands—demonstrates a healthier and more sustainable development model. Looking to the future, StakeStone aims to become a leader in the liquidity asset field.