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‘We’re bullish on stablecoins,’ next-gen DeFi — Coinbase Ventures head

Crypto and blockchain-focused venture capital is unfazed by recent market volatility and is using the opportunity to uncover hidden gems in an industry that’s only “one decade into a 30-year paradigm shift,” according to Hoolie Tejwani, the head of VC firm Coinbase Ventures. Coinbase Ventures will “continue to invest steadily through market conditions” because it sees the “big picture,” Tejwani told Cointelegraph in an interview. “What we’re seeing as investors is an exponential technology change curve that is transforming the way people interact, how value flows, and how economies are run. And it’s being shaped by the people who are building on crypto infrastructure,” said Tejwani.Coinbase Ventures’ portfolio of investments includes Arbitrum, Dune, EigenLayer, Etherscan, OpenSea, Optimism and Uniswap, among others. Its mandate is to invest in project founders who share the namesake crypto exchange’s vision of creating more economic freedom through blockchain and Web3 applications.The company is especially “bullish on stablecoins,” thanks in part to recent crypto-friendly moves in the US Congress and by President Donald Trump, Tejwani said. The Senate Banking Committee forwarding a bill to regulate [stablecoins] “is a huge step for crypto,” he said, referring to the GENIUS Act, which stands for Guiding and Establishing National Innovation for US Stablecoins.The GENIUS Act is on its way to the full Senate after clearing the banking committee in an 18-6 vote. Source: Bill HagertyAlthough there was some partisan opposition, California Representative Ro Khanna recently said at least 70 of his fellow Democrats now understand the importance of stablecoins in maintaining the US dollar’s role as a global reserve currency. Khanna, like others, expects stablecoin legislation to cross the finish line this year.The dollar-denominated stablecoin market now exceeds $220 billion, representing roughly 1.1% of the US M2 money supply. Source: RWA.xyzRelated: US stablecoin bill likely in ‘next 2 months’ — Trump’s crypto council headDeFi, consumer applications remain in focusIn addition to stablecoins, Tejwani identified “next-generation” decentralized finance (DeFi) protocols, onchain consumer applications across social, gaming and creator markets, and intersection points between crypto and AI as major investment themes in 2025.Some of these themes were also identified by Jeffrey Hu, the head of investment research at Hong Kong-based HashKey Capital, although HashKey is placing a bigger emphasis on tokenizing real-world assets and decentralized physical infrastructure networks, also known as DePINs. Nevertheless, Tejwani and Hu agree that institutional adoption and real-world use cases represent the major focus areas for venture capital firms. “We expect 2025 to be a banner year for crypto startup activity and VC investment, fueled by clearer regulations, institutional adoption, and the continued growth of real-world use cases,” said Tejwani.Business service providers, DeFi, security services and payments attracted the largest VC capital in February. Source: The TIETejwani’s outlook on 2025 is consistent with recent inflows into crypto-based startups. As Cointelegraph reported, crypto and blockchain projects received a combined $1.1 billion in funding in February alone.Magazine: How crypto laws are changing across the world in 2025

Hyperliquid delists JELLY perps, citing "suspicious" activity

Hyperliquid, a popular cryptocurrency exchange, has recently announced that it will be delisting perpetual futures tied to the JELLY token due to suspicious market activity. The exchange, known for its high liquidity and advanced trading features, has identified evidence of market manipulation involving these trading instruments.

In response to this incident, the Hyper Foundation, the ecosystem nonprofit of Hyperliquid, has announced that it will reimburse most users for any losses incurred. This move showcases the exchange’s commitment to its users and their trust in the platform.

According to Hyperliquid, all users except for those with flagged addresses will be automatically reimbursed by the Hyper Foundation in the coming days. This is a positive step towards restoring the trust of its users and ensuring the integrity of the platform.

Despite this setback, Hyperliquid’s primary liquidity pool, HLP, has reported a net income of approximately $700,000 in the past 24 hours. This is a testament to the exchange’s strong performance and resilience in the face of challenges.

This is not the first time Hyperliquid has faced difficulties. In March, the exchange had to increase margin requirements for traders after its liquidity pool suffered significant losses during a massive Ether liquidation. However, the exchange has shown its ability to bounce back and continue to provide a reliable and secure trading environment for its users.

In related news, Hyperliquid has also been featured in a recent article by Cointelegraph, which raises concerns about potential conflicts of interest and insider trading involving President Trump’s cryptocurrency ventures. This further highlights the importance of transparency and ethical practices in the cryptocurrency industry.

As this is a developing story, Hyperliquid will continue to provide updates and information as it becomes available. In the meantime, the exchange remains committed to its users and their satisfaction, making it a top choice for traders looking for a trustworthy and efficient platform.

Bitcoin price just ditched a 3-month downtrend as 'key shift' begins

Bitcoin has been making headlines recently as its price continues to rise and fall. The cryptocurrency saw a significant drop in value on March 26, coinciding with the Wall Street open. This was seen as a key shift in market structure, with US selling pressure returning to the market.

The drop in Bitcoin’s price was mirrored by a lack of momentum in US stocks, with the S&P 500 and Nasdaq Composite Index also heading lower. At the same time, the US dollar index (DXY) reached three-week highs, further adding to the downward pressure on Bitcoin.

The uncertainty surrounding US trade policy and the upcoming deadline for new tariffs has also been a cause for concern in the market. This has led to sideways volatility, with traders unsure of the potential impact on the market.

However, there are still positive signs for Bitcoin. The decision by video game retailer GameStop to add BTC to its corporate treasury has been seen as a bullish move, potentially sparking renewed interest from retail investors.

In addition, popular trader Titan of Crypto has revealed that Bitcoin has broken out of a three-month downtrend, signaling a key shift in market structure. This is supported by other indicators, such as the relative strength index (RSI) and the Hash Ribbon metric, which are both giving preemptive upside signals.

While there is always risk involved in investing and trading, these positive indicators suggest that Bitcoin could continue to outperform in the near future. As always, it is important for individuals to conduct their own research and make informed decisions when it comes to investing in cryptocurrency.

What are exit liquidity traps — and how to detect them before it is too late

Key takeawaysExit liquidity traps occur when new investors unknowingly provide liquidity for insiders to cash out, leaving them with devalued assets.​FOMO drives impulsive trades, often leading to costly mistakes and becoming exit liquidity for early movers.Beware of projects with exaggerated claims, low liquidity, anonymous teams or sudden price surges.Investing in high-market-cap coins, avoiding hype-driven projects and using reputable exchanges reduce the risk.Are you concerned about having bought a cryptocurrency only to later realize that your investment facilitated someone else’s profitable exit? This scenario is called an exit liquidity trap, a deceptive market dynamic where unsuspecting traders provide liquidity for insiders or seasoned investors to offload their holdings at inflated prices.By the time you recognize you have been trapped, the price crashes, leaving you with devalued tokens. But how do you spot these traps before it is too late? This guide breaks down exit liquidity traps, their warning signs and strategies to protect your crypto investments.What is exit liquidity?In traditional finance, the term refers to buyers who acquire shares from early investors or founders during liquidity events such as acquisitions, mergers or initial public offerings (IPOs). However, in the cryptocurrency market, it has taken on a more negative connotation.In the cryptocurrency market, exit liquidity refers to unsuspecting investors who purchase tokens with little or no real value, thereby providing liquidity to sellers aiming to offload their holdings.This situation often arises when traders buy digital assets that later become difficult to resell due to low demand or loss of value. Understanding exit liquidity is crucial for crypto traders to avoid being caught in schemes where their investments primarily benefit those looking to exit the market.The sheer number of tokens launched every month suggests the scale of exit liquidity traps crypto traders face. In early 2024, over 540,000 new crypto tokens were created, averaging approximately 5,300 new tokens launched daily.Did you know? In 2024, over 2 million tokens were launched. Of these, roughly 870,000 tokens, representing 42.35%, were available for trading on decentralized exchanges (DEXs).How can you end up becoming an exit liquidity for others’ profit?Unforeseen circumstances can sometimes turn your investments against you, making you an exit liquidity victim. Here are some common scenarios where this might happen:Pump-and-dump schemesPump-and-dump schemes happen when a group of individuals artificially inflates the price of a cryptocurrency by aggressively creating a buzz around it. New investors are drawn in as the price surges, believing they are riding a profitable opportunity. However, the manipulators dump their holdings, causing a sharp crash in cryptocurrency, primarily memecoins. Those who bought late end up with significant losses and illiquid assets. Project failures and scandalsA major security breach, financial mismanagement or controversy involving a crypto project can lead to a rapid decline in its token value. When panic selling begins, investors who exit early minimize their losses, while those who hold on too long become exit liquidity victims as the price crashes. Regulatory crackdownsGovernment actions against specific cryptocurrencies can suddenly shift market dynamics. If a cryptocurrency is declared illegal or subjected to strict regulations, its trading volume and liquidity can collapse, leaving investors struggling to sell.Exchange delistingsWhen a cryptocurrency is removed from major exchanges, its liquidity can dry up quickly. Finding buyers for the token becomes increasingly difficult without access to a large trading platform. Novice investors may become an exit liquidity medium for those offloading their holdings ahead of the delisting. Market manipulationCertain deceptive trading practices, such as wash trading or spoofing, can mislead investors into believing there is a strong demand for cryptocurrency. Manipulators create an illusion of price growth, encouraging new investors to buy in. Once the price reaches their target, they sell their holdings, leaving others with depreciating assets.ICOs and token sale fraudsSome initial coin offerings (ICOs) and token sales are designed to deceive investors. Project founders may sell large amounts of tokens under the promise of delivering a groundbreaking project but later abandon it or fail to fulfill commitments, leading to a steep decline in token value.Did you know? As per Chainalysis, the number of tokens launched in 2024 was 2,063,519. Among these, the number of suspected pump-and-dump tokens was 74,037.FOMO — The core reason for exit liquidity trapsFOMO, or fear of missing out, is a key factor behind crypto traders becoming exit liquidity victims. It is an emotional reaction where traders rush into perceived market opportunities, fearing they will miss potential gains. This leads to trades executed without thorough analysis, increasing the risk of losses.Trend-chasing: FOMO-driven traders enter positions based on hype rather than fundamentals, making them vulnerable to market downturns.Neglect of risk management: These traders frequently neglect risk management strategies like diversification or stop-loss orders. This leaves them exposed to sudden price drops.Focus on short-term gains: FOMO-driven traders prioritize short-term gains over sustainable investment strategies, leading to frequent, costly trades that erode overall returns. Impulsive decision-making: The traders’ heavy reliance on social media, news and peer influence further drives poor decision-making, as they react to market hype instead of conducting independent research.Factors behind FOMOSeveral factors trigger FOMO in crypto trading: Market rallies: Sharp price surges create a sense of urgency. Traders rush to buy assets without analyzing fundamentals, fearing they will miss out on quick profits. Social media hype: Social media influencers and online communities often create hype, leading traders into making risky, emotionally driven decisions. Peer pressure: Peer pressure is another factor, as seeing friends or colleagues profit from trades can push individuals to follow suit. Chasing trends: The tendency to chase trends pushes traders to neglect personal financial strategies. The fear of missed profits drives impulsive trades, which drives the trend. Regret: Watching asset prices rise creates regret in traders if they don’t hold the cryptocurrency themselves, prompting traders to act without proper analysis.News-induced anxiety: Overexposure to market news produces anxiety. Constant updates and financial reports create a sense of urgency, prompting traders to react hastily rather than sticking to a well-thought-out plan. Did you know? According to Glosten et al.’s (1993) GJR-GARCH model, neither Baur and Dimpfl (2018) nor Cheikh et al. (2020) found the FOMO effect for Bitcoin or Ether during 2013–2018. But Wang et al. (2021) discovered a FOMO effect in the Bitcoin market between 2014 and 2019.How to detect exit liquidity traps in cryptoDetecting exit liquidity traps requires diligent analysis on your part. Consider the project’s development activity, the team behind it and community engagement. Here are the red flags to spot potential exit liquidity traps:Coins without solid fundamentals and exaggerated claimsSteer clear of projects that artificially inflate the price of a coin, luring in unsuspecting investors before insiders dump their holdings for profit. Known as pump-and-dump scams, these often involve exaggerated claims, assured returns and aggressive marketing. Examine if the project has a lopsided token distribution — a high concentration of tokens among a few wallets signals manipulation.Bundled buys and developer activityBundled transactions can be used to manipulate token distributions, making a project seem more legitimate than it is. Developers may execute multiple transactions immediately after liquidity is added, securing tokens at the lowest price and later selling at a premium. For example, to identify bundled buys on Solana, use GeckoTerminal. When you search for your desired token, the right sidebar displays its GT Score. The Soul Scanner section enables you to view the “Bundled Buy %,” which reveals the number of tokens acquired through bundled buys tactics. This metric provides insight into the bulk buying activity of a specific token.Over-hyped coinsAggressively promoted coins with weak fundamentals and a low number of use cases are likely to crash eventually. Such coins often experience short-term price surges driven by influencers. Developers who actively create the buzz around these coins, allocate tokens to themselves and dump their holdings after prices shoot up. Launched in 2016, Bitconnect was marketed as a high-yield investment platform, promising substantial returns through a proprietary trading algorithm. Its multilevel marketing structure and unrealistic returns led to suspicions of it being a Ponzi scheme. In January 2018, Bitconnect abruptly shut down its lending and exchange services, causing the token’s price to plummet from an all-time high of nearly $525 to below $1, resulting in significant investor losses.Invisible teamCryptocurrency projects lacking identifiable team members present significant risks. The inability to verify developer identities prevents accountability. This anonymity enables developers to disappear with invested capital. The absence of transparency creates problems in evaluating a project’s legitimacy and progress. Moreover, the lack of visible leadership undermines trust, which is essential for any successful enterprise. Regulatory issuesIf a project faces regulatory issues regarding compliance or money laundering, consider it a red flag. Additionally, legal frameworks vary across jurisdictions, adding complexity and potential risks. Noncompliance could lead to hefty penalties or even the project’s shutdown.How to avoid exit liquidity traps in cryptoIf you are a crypto investor, you must understand how to avoid exit liquidity traps. Thankfully, there are strategies to help you avoid this situation and protect your investments. Here is a breakdown of such methods: Invest in coins with high market capitalization: Coins with high market capitalization are typically more stable and liquid. These assets attract a large number of buyers and sellers, making it easier to enter and exit positions without major price fluctuations. Low-cap coins, on the other hand, can be highly volatile and often lack sufficient liquidity, increasing the risk of being stuck with unsellable assets. Always check a coin’s market cap and trading volume before investing. Choose coins with active trading communities: A strong, engaged trading community is a key indicator of a coin’s liquidity. Coins with active investors and consistent trading activity tend to have stabler demand, reducing the risk of getting trapped in an illiquid market. Look for projects with active discussions on social media, consistent developer updates and healthy buy-sell activity on exchanges. Avoid pump-and-dump scams: Be cautious of coins that gain sudden attention without any solid fundamentals. Conduct thorough research and avoid assets that appear too good to be true. You should consider vesting periods. Sudden developer sell-offs can crash prices and leave investors with worthless assets. Use reputable exchanges: Trading on well-established exchanges like Binance and Coinbase ensures better liquidity and smoother transactions. Trustworthy platforms do their due diligence before listing projects so you can feel safer with the coins on offer. While regulatory hurdles — such as the removal of Tether’s USDt (USDT) in the European Union — or unforeseen events like the Terra ecosystem collapse in May 2022 can lead to delistings, reputable exchanges typically do not remove coins without significant reasons.Focus on the coin’s long-term viability: If you feel a coin is overly promoted, especially in the memecoin space, take it as a warning sign. Instead of following social media trends, focus on a coin’s fundamentals and community strength. Your goal should be the long-term viability of the coin and not a short-term gain.Stay informed about changing regulations: Staying informed about evolving cryptocurrency regulations is crucial for investors. Legal frameworks significantly impact market dynamics, asset valuation and investment strategies. Changes can introduce new compliance requirements, tax implications or even outright bans, affecting the stability of your portfolio.Fundamental analysis of cryptocurrencies: A robust tool to deal with exit liquidity traps Fundamental analysis is a crucial tool for investors looking to avoid exit liquidity traps. Unlike traditional assets such as stocks, cryptocurrencies lack standard valuation metrics like price-to-book ratios. But assessing a crypto asset’s actual value beyond its price movements can help identify solid investments and reduce liquidity risks. When evaluating a cryptocurrency, one of the key questions is: Will businesses adopt it? While individual and institutional investors may drive demand by holding assets, long-term value is best determined by utility rather than scarcity alone. A cryptocurrency with real-world applications and industry adoption is more likely to sustain liquidity over time. For instance, Ethereum introduced smart contract functionality, enabling decentralized applications (DApps). Despite its technological significance, issues like network congestion and high fees limited its public adoption. This highlights the importance of evaluating both innovation and practical usability when conducting fundamental analysis. Other factors to consider include developer activity, transaction volume and network security. A strong development team, consistent upgrades and a growing user base signal a cryptocurrency’s potential for long-term viability. By focusing on these elements, investors can make informed decisions, reducing the chances of being trapped in illiquid assets.Leveraging behavioral finance to avoid exit liquidity traps“The investor’s chief problem — and even his worst enemy — is likely to be himself.” — Benjamin GrahamAs Graham insightfully points out, investors often become their own worst enemy, making decisions driven by emotion rather than logic. To avoid exit liquidity traps, you need as much knowledge of behavioral finance as you do about crypto trading fundamentals. Understanding how human behavior influences financial decisions can help you recognize and mitigate irrational choices. Humans are not always rational in our decision-making — emotions such as greed, fear and hope, along with cognitive biases, often drive trading behavior. Recognizing these psychological tendencies is crucial to making informed, objective investment decisions.While honing hard skills like financial analysis and conducting due diligence on project teams is essential, it is equally important to develop behavioral skills. Practicing patience, managing FOMO and making balanced decisions can help you avoid impulsive trades and minimize risks in volatile markets.

BlackRock ‘BUIDL’ tokenized fund triples in 3 weeks as Bitcoin stalls

Update March 26, 2:36 pm UTC: This article has been updated to include quotes from Brickken CEO Edwin Mata.BlackRock’s Ethereum-native tokenized money market fund has more than tripled in value over the past three weeks, nearing the $2 billion mark amid rising demand for safe-haven digital assets.BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL) saw an over three-fold increase over the past three weeks, from $615 million to $1.87 billion, according to Token Terminal data shared by Leon Waidmann, head of research at Onchain Foundation, a Web3 intelligence platform.BlackRock BUIDL capital deployed by chain. Source: Token Terminal, Leon Waidmann“BUIDL fund TVL exploded from $615M → $1.87B in just 3 weeks. The tokenization wave is hitting faster than most realize,” the researcher wrote in a March 26 X post.BlackRock’s BUIDL fund is part of the wider real-world asset (RWA) tokenization sector, which refers to financial products and tangible assets such as real estate and fine art minted on the blockchain, increasing investor accessibility to and trading opportunities for these assets.The surge in BlackRock’s fund reflects a growing institutional appetite for tokenized RWAs due to more regulatory clarity, according to Edwin Mata, co-founder and CEO of Brickken, a European RWA platform.“The US is witnessing a notable shift toward a more crypto-friendly regulatory environment,” the CEO told Cointelegraph, adding:“The SEC has recently concluded several investigations without enforcement actions, including those involving Immutable, Coinbase and Kraken. This trend suggests a move toward clearer regulatory frameworks that support innovation in the digital asset space.”Related: Crypto markets will be pressured by trade wars until April: AnalystBlackRock launched BUIDL in March 2024 in partnership with tokenization platform Securitize. In a recent Fortune report, Securitize chief operating officer Michael Sonnenshein said the fund aims to make offchain assets “unboring.” RWAs reached a new cumulative all-time high of over $17 billion on Feb. 3, following Bitcoin’s (BTC) decline below $100,000.Related: Redemption arcs of 2024: Ripple’s victory, memecoins’ rise, RWA growthRWAs near $20B record high amid Bitcoin’s lack of momentumThe total value of onchain RWAs is less than 0.5% away from surpassing the $20 billion mark, with a total cumulative value of $19.57 billion, according to data from RWA.xyz.RWA global market dashboard. Source: RWA.xyzRWAs will likely rise to new all-time highs in 2025 as they attract investor interest amid Bitcoin’s lack of momentum, according to Alexander Loktev, chief revenue officer at P2P.org, an institutional staking and crypto infrastructure provider.“Given the recent moves we’ve seen from major financial institutions, particularly BlackRock and JPMorgan’s growing involvement in tokenization, I believe we could hit $50 billion in TVL,” Loktev told Cointelegraph.Traditional finance (TradFi) institutions are “starting to view tokenized assets as a serious bridge to DeFi,” driven by institutions looking for digital asset investments with “predictable yields,” added Loktev.Magazine: Ripple says SEC lawsuit ‘over,’ Trump at DAS, and more: Hodler’s Digest, March 16 – 22

Trump’s USD1 stablecoin deepens concerns over conflicts of interest

World Liberty Financial (WLFI), the Trump family’s crypto project, is planning to release a stablecoin, raising concern over the US president’s exposure to the digital asset industry.The project released a memecoin immediately prior to President Donald Trump’s inauguration, the price of which skyrocketed and crashed soon after, causing many to accuse WLFI of a pump-and-dump scheme. WLFI has also made multimillion-dollar purchases of crypto tokens immediately prior to important crypto-related events the president has attended or announcements influencing the industry. WLFI purchased $20 million of various tokens ahead of the March 7 White House Crypto Summit. As World Liberty Financial’s portfolio grows and regulator oversight disappears from the crypto industry, observers and legal scholars are becoming increasingly concerned over conflicts of interest within the Trump administration. Son Eric Trump pumps his father’s memecoin ahead of the inauguration. Source: Eric TrumpTrump’s stablecoin USD1 riddled with liabilities WLFI announced on March 25 that it will launch the new stablecoin USD1, “100% backed by short-term US government treasuries, US dollar deposits, and other cash equivalents.”WLFI co-founder Zach Witkoff said in the announcement that the coin can be used for “seamless, secure cross-border transactions.” News of USD1’s forthcoming release came just days after WLFI secured more than $500 million through the sale of its own $WLFI tokens. Observers have already begun to raise the alarm about the possible security risks posed by a stablecoin connected to the president. There are also concerns over the possibility of market manipulation and violations of the emoluments clause of the US Constitution — a section of the document that protects against undue influence over American leaders. As regards the latter, cyber and digital media attorney Andrew Rossow told Cointelegraph that the stablecoin is “a direct affront to constitutional safeguards meant to prevent conflicts of interest.”“With Trump and his family controlling 60% of World Liberty’s equity interests, the USD1 stablecoin could facilitate indirect financial gains or undue foreign influence over US policy, particularly if foreign entities invest in or use the stablecoin.”WLFI makes up a sizeable chuck of Trump’s estimated net worth. Source: FortuneCorey Frayer, who worked on crypto policy at the SEC under former President Joe Biden, said that the project’s emphasis on cross-border payments was particularly worrisome and that foreign entities may invest as a way to gain favor with Trump.“There’s a lot of opacity around this marketplace, and prior relationships with illicit finance,” Frayer told The New York Times. US policymakers have already noted the possibility for foreign influence following the launch of Trump’s eponymous memecoin in January.At the time, Democratic Representative Maxine Waters — a top Democrat on the House Financial Services Committee — wrote that “Anyone globally, even individuals who have been sanctioned by the U.S. or banned from our capital markets, can now trade and profit off of $TRUMP through various unregulated platforms.”Related: Congress repealed the IRS broker rule, but can it regulate DeFi?In addition to potential foreign influence, observers are concerned that Trump’s crypto ventures could threaten market stability and integrity, and open up global markets to manipulation. Referencing USD1, Heath Mayo — the founder of the Trump-alternative conservative movement Principles First — said that a sitting president issuing an instrument backed by public debt should be illegal, adding that the project had “terrible incentives and corrupt use of US taxpayer credit.”Rossow said that the president’s role in a stablecoin project while at the same time working to craft stablecoin legislation in the form of the GENIUS Act is “a constitutional violation that could destabilize regulatory integrity.”Trump’s influence over the industry and ability to drop enforcement actions against crypto executives who support him creates “an uneven playing field, disadvantaging competitors and violating principles of equal protection under the law.”What options do regulators have regarding Trump’s crypto conflicts of interestTrump, who has long stated an affinity with former President Andrew Jackson, seems to be holding to the latter’s strategy of acknowledging judicial rulings — and then doing what he wants regardless. The presidential administration has already shown that it is willing to defy orders from federal judges when, earlier this month, it ignored a verbal order from a federal judge to turn around two planes full of alleged gang members bound for the Terrorism Confinement Center in El Salvador. Regarding crypto, Senator Elizabeth Warren has already called for an ethics probe into Trump’s crypto activities. She said that the president’s memecoin “massively enriched Trump personally, enabled a mechanism for the crypto industry to funnel cash to him, and created a volatile financial asset that allows anyone in the world to financially speculate on Trump’s political fortunes.”Warren, a long-time crypto critic, has taken aim at WLFI. Source: Senate Banking CommitteeThe probe, if it had a chance to begin with, doesn’t appear to have gone anywhere, and Congressional Republicans are busy working on the GENIUS Act, which even has the support of a handful of Democrats. What, if anything, can be done?Rossow said that, despite changes in SEC leadership, other agencies like the Financial Crime Enforcement Network could still pursue investigations. He also noted that state-level action from local regulators and Attorneys General is “not just possible but imperative, especially in states with robust consumer protection laws.He added that international regulatory bodies could exert pressure, stating that the “global nature” of crypto means that foreign governments could work for better oversight and more robust regulations. Related: Who’s running in Trump’s race to make US a ‘Bitcoin superpower?’In any case, he said that the current situation demands multi-faceted action as there is currently a need to “safeguard the principles of fair governance and maintain the US’s credibility in the global financial system.”Some in the crypto industry see no problem at all and believe the president’s involvement is just another sign of how the industry is reaching mainstream appeal. Chris Barrett, senior director of communications at Chainlink, congratulated the project, stating that “The global financial world runs on the U.S. dollar, and stablecoins are about to make that even harder to change.”Arnoud Star Busman, CEO of European stablecoin issuer Quantoz Payments, told Cointelegraph that USD1 is reflective of “increasing validation from world-leading brands that stablecoins are carving the path for the mainstream financial industry to access crypto assets and tokenized real-world assets.”The Blockchain Association — an industry lobby group — declined Cointelegraph’s request for comment. Magazine: Arbitrum co-founder skeptical of move to based and native rollups: Steven Goldfeder

Bear markets are temporary — airdrops are forever

Opinion by: Paul Delio, chief business officer at CARVMarket movements come and go, naturally taking up a lot of crypto oxygen, but something far more remarkable has been happening beneath the surface in recent cycles. The past few years have generally been great for new tokens, and with their launches come significant opportunities for wealth creation, such as airdrops.I recently sat down with Animoca Brands co-founder and executive chairman Yat Siu at Consensus Hong Kong. He mentioned a figure that instantly cured any market anxiety: $49 billion worth of airdrops were distributed directly to Web3 communities from 2021 to 2024. “I can’t think of a larger private wealth generation event than that,” Siu noted.He’s entirely correct. Airdrops get users in at the ground floor and reward them for early support in ways traditional markets simply can’t or don’t. We can all share in one of the most significant wealth redistributions in recent history through this unique mechanism. While current sentiment might make some think twice, there’s still great user and network value building in the background. Bear markets are temporary, but airdrops — and the ownership and community models they enable in crypto — are forever.Airdrops transform ownership Airdrops are much more than free tokens — they’re a relationship reimagining between platforms and users. The value they bring to protocols goes beyond inherent pricing.In the traditional tech world, users have unfortunately gotten used to creating value and receiving nothing in return. This is the business model of many of today’s most prominent companies: feasting on information, extracting its value and selling to the highest bidder. When users don’t own their data, tech corporations weaponize it for revenue and influence.Airdrops challenge this status quo. The model honors participation with ownership stakes and real-world value. If you use a project, airdrops posit that you should share in it. Passive users become active stakeholders who champion the ecosystem and bring it to new heights. Recent: Kaito AI token defies influencer selling pressure with 50% price rallyThe data and decision-making have-nots are in the driver’s seat for once. From layer 2s offering governance tokens to early users or projects rewarding backers, airdrops rewrite the ownership rulebook and create lasting protocol-user stickiness. This ownership unlocks engagement that often persists regardless of market conditions.Airdrops create ecosystemsCommunity makes or breaks projects in Web3. As Siu pointed out, network effects are one of the most valuable assets in digital economies. Airdrops have become a crypto cornerstone precisely because they bootstrap these effects.Airdrops seed those with skin in the game and fund thousands of microeconomies. Value flows between participants rather than being extracted by centralized entities, creating a flywheel of innovation that self-reinforces. Tokenholders become evangelists, developers, participants and builders — moving projects from speculation to sustainability in bull and bear markets.Some people try to game airdrops, while others are only motivated by profit. Teams are working on both counts to weed out bad actors and give preference to genuine supporters. Nonetheless, it’s hard to see the virtuous cycles of airdrops as anything but transformative. And, like we saw with Axie Infinity in the Philippines, they successfully onboard new crypto audiences.Airdrops deliver enduring valueWeb3 wants active users who engage with protocols and actively benefit from them. If we grow, you grow. This ethos is what crypto is all about. It is also seen with node sales rewarding network decentralization and AI agents tracking data on the blockchain and paying users when used in training.These functions unlock user and network value despite market ups and downs. Of course, there’s a financial upside, but governance rights, community belonging and genuine buy-in also exist. Then, if and when markets rebound, users are already strapped in for the ride and benefit from their loyalty.What is the best advice in these rocky recent weeks? Forget about market movements and look at what airdrops deliver. $49 billion is nothing to sneeze at, nor are the very real and lasting connections and communities.Opinion by: Paul Delio, chief business officer at CARV.This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.