Every chain is an island: crypto’s liquidity crisis
Opinion by: Jin Kwon, co-founder and chief strategy officer at SagaCrypto has come a long way in boosting transaction throughput. New layer 1s (L1s) and side networks offer faster, cheaper transactions than ever before. Yet, a core challenge has come into focus: liquidity fragmentation — the scattering of capital and users across an ever-growing maze of blockchains.Vitalik Buterin, in a recent blog post, highlighted how scaling successes have led to unforeseen coordination challenges. With so many chains and so much value splintered among them, participants face a daily tangle of bridging, swapping and wallet-switching. While these issues affect Ethereum, they also affect nearly every ecosystem. No matter how advanced, new blockchains risk becoming liquidity “islands” that struggle to connect with one another.The real costs of fragmentationLiquidity fragmentation means there is no single “pool” of assets for traders, investors or decentralized finance (DeFi) applications to tap into. Instead, each blockchain or side network hosts its own siloed liquidity. For a user who wants to buy a token or access a specific lending platform, this siloing introduces multiple headaches. Switching networks, opening specialized wallets and paying multiple transaction fees are far from seamless, especially for those less tech-savvy. Liquidity is also thinner in each isolated pool, leading to price disparities and higher slippage on trades. Many users resort to bridges to move capital across chains, yet these have been frequent targets for exploits, raising fear and mistrust. If it’s too cumbersome or risky to move liquidity around, DeFi fails to gain mainstream momentum. Meanwhile, projects scramble to deploy across multiple networks or risk being left behind.Some observers worry that fragmentation could drive people back to a few dominant chains or centralized exchanges, undermining the decentralized ideals that fueled blockchain’s rise.Familiar fixes, with persisting gapsSolutions have emerged to tackle this tangle. Bridges and wrapped assets enable basic interoperability, but the user experience remains cumbersome. Crosschain aggregators can route tokens through a chain of swaps, yet they generally don’t merge the underlying liquidity. They only help users navigate it. Meanwhile, ecosystems like Cosmos and Polkadot bring interoperability within their frameworks, though they are separate realms in the broader crypto landscape.The problem is fundamental: Each chain views itself as distinct. Any new chain or sub-network must be “plugged in” at the ground level to truly unify liquidity. Otherwise, it adds another liquidity island that users must discover and bridge into. This challenge is compounded by chains, bridges and aggregators seeing one another as competition, leading to intentional siloing and making fragmentation even more pronounced.Integrating liquidity at the base layerIntegration at the base layer addresses liquidity fragmentation by embedding bridging and routing functions directly into a chain’s core infrastructure. This approach appears in certain layer-1 protocols and specialized frameworks, where interoperability is treated as a foundational element rather than an optional add-on. Recent: What are exit liquidity traps — and how to detect them before it is too lateValidator nodes automatically handle crosschain connections, so new chains or side networks can launch with immediate access to the broader ecosystem’s liquidity. This reduces reliance on third-party bridges that often introduce security risks and user friction.Ethereum’s own challenges with heterogeneous layer-2 (L2) solutions underscore why integration is essential. Different participants — Ethereum as a settlement layer, L2s focusing on execution, and various bridging services — have their own motivations, resulting in fragmented liquidity. Buterin’s references to this issue highlight the need for more cohesive designs. An integrated base-layer model brings these components together at launch, ensuring that capital can flow freely without forcing users to navigate multiple wallets, bridge solutions, or rollups.An integrated routing mechanism also consolidates asset transfers, mimicking a unified liquidity pool behind the scenes. By capturing a fraction of the overall liquidity flow rather than charging users for every transaction, such protocols reduce friction and encourage capital mobility across the network. Developers deploying new blockchains gain instant access to a shared liquidity base while end-users avoid juggling multiple tools or encountering unexpected fees. This emphasis on integration helps maintain a seamless experience, even as more networks come online.Not just an Ethereum issueWhile Buterin’s blog post focuses on Ethereum’s rollups, fragmentation is ecosystem-agnostic. Whether a project builds on an Ethereum Virtual Machine-compatible chain, a WebAssembly-based platform, or something else, the fragmentation trap arises if liquidity is fenced off. As more protocols explore base-layer solutions — embedding automatic interoperability into their chain design — there’s hope that future networks won’t splinter capital further but instead help unify it.A clear principle emerges: Throughput means little without connectivity.Users shouldn’t need to think about L1s, L2s or sidechains. They just want seamless access to decentralized applications (DApps), games and financial services. Adopting will follow if stepping onto a new chain feels identical to operating on a familiar network.Toward a unified and liquid futureThe crypto community’s focus on transaction throughput has revealed an unexpected paradox: The more chains we create for speed, the more we fragment our ecosystem’s strength, which lies in its shared liquidity. Each new chain intended to boost capacity creates another isolated pool of capital.Building interoperability directly into blockchain infrastructure offers a clear path through this challenge. When protocols handle crosschain connections automatically and route assets efficiently, developers can expand without splintering their user base or capital. Success in this model comes from measuring and improving how smoothly value moves throughout the ecosystem.The technical foundations for this approach exist today. We must implement them thoughtfully, with attention to security and user experience.Opinion by: Jin Kwon, co-founder and chief strategy officer at Saga. 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.
Bitcoin can reach $138K in 3 months as macro odds see BTC price upside
Bitcoin (BTC) faces “unprecedented” US dollar correlation as new BTC price research gives a $75,000 floor.In one of his latest analyses on April 18, network economist Timothy Peterson calculated that BTC/USD may rise as high as $138,000 within the next three months.BTC price probabilities give bulls the upper handBitcoin is navigating highly unusual macroeconomic conditions as a result of the ongoing US trade war, but history still offers clues as to where BTC price action may head next.For Peterson, the US High Yield Index Effective Yield, currently at over 8%, holds the key.“This has happened 38 times since 2010 (monthly data),” he summarized. “3 months later: Bitcoin was up 71% of the time. The median gain was +31%. If it went lower, the worst loss was -16%.”US High Yield Index Effective Yield. Source: Timothy Peterson/XWith BTC/USD performance thus skewed to the upside, Peterson gave hope to those waiting for a rematch of all-time highs from January.“This likely puts Bitcoin between $75k and $138k within 90 days,” he concluded.Bitcoin would need to deliver 62% gains within that period to achieve that maximum level.As Cointelegraph reported, Peterson has been a frequent contributor to BTC price forecasts in 2025, with one of his proprietary tools, Lowest Price Forward, giving 95% odds of a $69,000 floor in March.Bitcoin DXY correlation will flip negativeTurning his attention to the dramatic drop in the US dollar index (DXY) thanks to US trade tariffs, he predicted that its unusual positive correlation with BTC would ultimately end.Related: Bitcoin price volatility ‘imminent’ as speculators move 170K BTC — CryptoQuant“This level of BTC-USD correlation is unprecedented. The relationship is not causal, but reflective of underlying conditions affecting both,” he explained. “Historically inverse, the relationship flipped in 2024 as both assets began responding to the same macro stressors: tightening liquidity, high real rates, and global risk aversion. BTC will decouple and rise when real yields drop + liquidity returns.”BTC/USD vs. US dollar index (DXY). Source: Timothy Peterson/XDXY continued to stay below the key 100 mark on April 18, per data from Cointelegraph Markets Pro and TradingView, reflecting some of its lowest levels in the past three years.Earlier, separate analysis nonetheless saw the potential for Bitcoin to directly benefit from dollar weakness in a manner similar to the early innings of the bull run in 2023.US dollar index (DXY) 1-week chart. Source: Cointelegraph/TradingViewThis article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Crypto, DeFi may widen wealth gap, destabilize finance: BIS report
The growing adoption of cryptocurrencies may pose risks to the traditional financial system and exacerbate wealth inequality, according to the Bank for International Settlements (BIS).In an April 15 report, the BIS warned that the number of investors and amount of capital in crypto and decentralized finance (DeFi) have “reached a critical mass,” with investor protection becoming a “significant concern for regulators.”The size of the crypto market signals that authorities should be worried about the “stability of crypto over and above the role it may have for TradFi and the real economy,” the report states, highlighting the role of stablecoins, which the BIS said have “become the means through which participants transfer value within crypto.”BIS report on crypto and DeFi’s functions and financial stability implications. Source: BISThe report calls for targeted stablecoin regulation on stability and reserve asset requirements that will guarantee the redemption of stablecoins for US dollars during “stressed market conditions.”Related: Spar supermarket in Switzerland starts accepting Bitcoin paymentsThe report comes two weeks after the US House Financial Services Committee passed the Stablecoin Transparency and Accountability for a Better Ledger Economy, or STABLE Act, with a 32–17 vote on April 2.Source: Financial Services GOPThe STABLE Act aims to create a clear regulatory framework for dollar-denominated payment stablecoins, emphasizing transparency and consumer protection.On March 13, the GENIUS Act, short for Guiding and Establishing National Innovation for US Stablecoins, passed the Senate Banking Committee by a vote of 18–6. The act aims to establish collateralization guidelines and require full compliance with Anti-Money Laundering laws from stablecoin issuers.Related: $400M Web3 investment fund ABCDE halts new investments, fundraisingCrypto may exacerbate wealth gapThe BIS also raised concerns about how crypto markets may worsen income inequality by enabling larger investors to capitalize on the emotions of less sophisticated retail participants, as seen during the FTX collapse in 2022.Whale vs retail activity after FTX collapse. Source: BIS“As prices tumbled in 2022, users actually traded more,” the BIS report noted. “Most disturbingly, large bitcoin holders (“whales”) were selling as ordinary retail investors (“krill”) were buying.” It added:“This implies that the crypto market, which is often presented as an opportunity for inclusive growth and financial stability, can be a means for redistributing wealth from the poorer to the wealthier.”The report concludes that DeFi and TradFi have similar underlying economic drivers, but DeFi’s “distinctive features,” like “smart contract and composability,” present new challenges that need proactive regulatory interventions to “safeguard financial stability, while fostering innovation.”Magazine: Uni students crypto ‘grooming’ scandal, 67K scammed by fake women: Asia Express
$400M Web3 investment fund ABCDE halts new investments, fundraising
Web3 and blockchain-focused investment fund ABCDE is halting new investments, but the $400 million fund remains committed to supporting its existing projects.In an April 19 X post, ABCDE co-founder and Huobi exchange founder Du Jun said the $400 million fund will no longer invest in new projects or raise capital for the second phase of the fund.However, Jun said the fund will continue to “post-investment support and exit arrangements of existing projects” to ensure the firm’s commitment to entrepreneurs and liquidity providers (LPs).“My personal work focus will also gradually shift from financial investment in the primary market to strategic investment-led and deep incubation-based, focusing more on industrial synergy and long-term value creation,” Jun added.Source: Du JunThe announcement comes nearly three months after ABCDE’s last investment into an Ethereum layer-2 (L2) solution, Soon (Solana Optimistic Network), which raised $22 million through a non-fungible token sale to mark the launch of its mainnet, Cointelegraph reported on Jan. 22.SOON block times, compared to other blockchains. Source: SOONThe Soon mainnet claims to outperform Solana in speed and efficiency, delivering average block times of 50 milliseconds compared to Solana’s 400 milliseconds.ABCDE is a $400 million fund, with 28% of its investments in Bitcoin (BTC) scaling technology, 16% in Ethereum liquid staking derivatives finance (LSDFi) infrastructure, and an additional 12% invested in L2s, restaking and smart contract platforms, Cryptorank data shows.ABCDE investments focus area, average round size. Source: CryptorankABCDE has invested over $40 million worth of capital into over 30 projects over the past three years, with an internal rate of return (IRR) “still at the global leading level,” despite the current market environment, Jun said.Related: Trump family memecoins may trigger increased SEC scrutiny on cryptoNew incubator brand Vernal announcedABCDE’s suspension of fundraising efforts was announced a month after the fund’s co-founder launched a new incubator brand, Vernal.Source: Du JunThe new incubator is set to announce its shareholders and incubation rules for the first batch of projects in May, along with its first investments.Jun said that the decision to halt ABCDE’s fundraising efforts was not made due to financial constraints or lack of funds but because of a fundamental concern for the current development trajectory of the crypto industry.Related: Crypto, stocks enter ‘new phase of trade war’ as US-China tensions rise.“Frankly speaking, I am increasingly unable to agree with the current ecological atmosphere of the primary market,” Jun said in an April 19 X post, adding:“Many projects are extremely short-sighted and only think about how to get listed on the exchange as soon as possible, and what is left behind is often a mess.”“What is more worrying is that some primary funds not only have no reflection on this, but also hype up their ‘listed projects’ and short-term market value performance, but never mention the value creation of the projects themselves,” he added.Cardano founder Charles Hoskinson has urged fourth-generation cryptocurrency projects to embrace more collaborative tokenomics to compete with major centralized tech companies entering the crypto industry.Charles Hoskinson. Source: Cointelegraph“The problem right now, with the way we’ve done things in the cryptocurrency space, is the tokenomics and the market structure are intrinsically adversarial. It’s sum 0,” Hoskinson said at Paris Blockchain Week on April 9. “Instead of picking a fight, what you have to do is you have to find tokenomics and market structure that allows you to be in a cooperative equilibrium.”“You can’t build a global ecosystem this way, and you can’t win this way,” he added. “Because here’s the thing. The incumbents are much larger.”Magazine: Your AI ‘digital twin’ can take meetings and comfort your loved ones
Tariffs, explained: How they work and why they matter
What are tariffs? Tariffs are taxes placed on imported goods by a government or a supranational union. Occasionally, tariffs can be applied to exports as well. They generate government revenue and serve as a trade regulation tool, often to shield domestic industries.Four main categories of tariffs are:Ad valorem tariffs: These are calculated as a percentage of the good’s value. For instance, a 20% tax might be placed on $100 of goods.Specific tariffs: These are fixed fees based on the quantity of goods. For example, there might be a tariff of $5 per imported kilogram of sugar.Compound tariffs: These combine a specific duty and an ad valorem duty applied to the same imported goods. Both tariffs are calculated together to determine the total tax. For example, a country might place a tariff on imported wine at $5 per liter plus 10% of the wine’s value.Mixed tariffs: Mixed tariffs apply either a specific duty or an ad valorem duty, based on predefined conditions. For instance, for imported trucks, a country might charge either $5,000 per vehicle or 15% of the car’s value, whichever is greater.The objective of such policy is to influence international trade flows, protect domestic industries, and respond to unfair practices by foreign countries. When a tariff is applied to an imported good, it raises its cost, making domestically produced alternatives more lucrative for customers regarding price.In the US, the Trump administration uses reciprocal tariffs as a key instrument in influencing the trade policies of other countries. Reciprocal tariffs are trade duties a country imposes in retaliation to tariffs or barriers set by another country. This policy seeks to correct trade imbalances and safeguard domestic industries.Tariffs are generally collected by the customs departments of a country at ports of entry based on the declared value and classification of goods.Did you know? Some countries use tariff-rate quotas, allowing a set quantity of a product to be imported at a lower tariff. Once the quota is exceeded, a higher tariff kicks in. This system balances domestic protection with access to global markets, especially in sectors like agriculture and textiles. Trump administration’s reciprocal tariff policy US President Donald Trump signed an executive order on April 2, 2025, a day he called Liberation Day, citing his authority under the International Emergency Economic Powers Act (IEEPA). The order placed a minimum 10% tariff on all US imports effective April 5, 2025. Reciprocal tariffs went into effect on April 9, 2025. Trump stated that the US would apply reciprocal tariffs at roughly half the rate imposed by other countries. For instance, the US imposed a 34% tariff in response to China’s 67%. A 25% tariff on all automobile imports was also announced.The Trump administration’s reciprocal tariff policy is rooted in the belief that the US faced long-standing trade imbalances and unfair treatment by global trading partners. To address this, his administration pushed for what it called reciprocal tariffs, aiming at setting a tariff structure that matched or at least was close to tariffs that foreign nations imposed on American exports.Under this approach, the administration used tariff policies to pressure countries to lower their trade barriers or renegotiate trade deals. The policy drew support from domestic manufacturers and labor groups for attempting to rebalance trade and support the US industry. But it also sparked criticism from economists and international allies who viewed it as protectionist and destabilizing the prevalent economic system in the world. The reciprocal tariffs policy has reshaped US trade relations and marked a departure from decades of multilateral, open global trade policy.Did you know? Tariffs can reshape supply chains. To avoid high import taxes, companies often relocate manufacturing to countries with favorable trade agreements. This shift doesn’t always benefit consumers, as savings are not always passed down, and logistics become more complex. The US–China tariff war: A defining economic conflict The US–China tariff war, which began in 2018 under the first Trump administration, marked a significant shift in global economic relations. The conflict between the world’s two largest economies had broad implications for global supply chains, inflation and geopolitical dynamics.The trade conflict between the US and China wasn’t just a bilateral spat. It signaled a structural rethinking of trade policy in a multipolar world. The trade war began after the US imposed sweeping tariffs under Section 301 of the Trade Act of 1974, citing unfair trade practices, intellectual property theft and forced technology transfers by China. Over time, the US levied tariffs on more than $360 billion worth of Chinese goods. China retaliated with tariffs on $110 billion of US exports, targeting key sectors like agriculture and manufacturing.The conflict disrupted major supply chains and raised costs for American businesses and consumers. American farmers were hit hard by retaliatory Chinese tariffs on soybeans, leading the US government to provide billions in subsidies to offset losses.While the Phase One Agreement in 2020 eased tensions and required China to increase purchases of US goods and enforce intellectual property protections, many tariffs remained in place. The Biden administration retained most of the economic measures imposed by the first Trump administration, signaling bipartisan concern over China’s trade practices.As of April 10, 2025, Trump had imposed 125% tariffs on China, while for 75 countries, he had paused the imposition of tariffs for 90 days.Compared to disputes with allies like the European Union or Canada, the stakes are higher in the US–China conflict, and the consequences are more far-reaching. Here are the responses of various governments to Trump’s tariffs:Canadian Prime Minister Mark Carney implemented a 25% tariff on US-made cars and trucks.China will impose a 34% tariff on all US imports, effective April 10.The French prime minister described the tariffs as an economic catastrophe.Italian Prime Minister Giorgia Meloni criticized the tariffs as wrong.European Commission chief Ursula von der Leyen pledged a unified response and prepared countermeasures.Taiwan’s government denounced the tariffs as unreasonable. How do tariffs work? When a tariff is applied — for example, a 30% tax on imported steel — it raises the price of that good for importers. They, in turn, pass these added costs to downstream businesses, which further transfer these costs to consumers.For importers, tariffs mean higher purchase costs. If a US company imports machinery from abroad and faces a tariff, its total cost increases. This possibly reduces its profit margins or forces it to search for alternatives. Exporters in other countries may suffer if US buyers reduce orders due to higher prices, hurting their competitiveness.Domestic producers may benefit initially from a high tariff regime. Tariffs can shield them from cheaper foreign competition, allowing them to increase sales and potentially make profits. But if their operations rely on imported components subject to tariffs, their input costs may rise, offsetting gains.Consumers often bear the brunt. Tariffs can lead to price hikes on everyday goods — from electronics to apparel. In the long term, high tariffs contribute to inflation and reduce purchasing power.Tariffs also disrupt global supply chains. Many products are assembled using components from multiple countries. High tariffs on one component can cause delays, prompt redesigns, or force companies to relocate manufacturing, increasing complexity and costs.Overall, while tariffs aim to protect domestic industries, their impact is felt across the economy through altering prices, trade flows and business strategies. One way or another, tariffs influence everyone — from factory owners to workers and everyday shoppers.Trump excluded various tech products, such as smartphones, chips, computers and certain electronics, from reciprocal tariffs, providing the tech sector with crucial relief from tariff pressure. This step of Trump eased pressure on tech stocks. Trump’s tariff announcement on April 2 triggered a sharp sell-off in both equities and Bitcoin (BTC), with BTC plunging 10.5% in a week. Once seen as a non-correlated asset, Bitcoin now trades in sync with tech stocks during macro shocks. According to analysts, institutional investors increasingly treat BTC as a risk-on asset closely tied to policy shifts. While some view Bitcoin as digital gold, recent behavior shows it reacting more like Nasdaq stocks — falling during global uncertainty and rallying on positive sentiment.Did you know? Tariff exemptions can be highly strategic. Governments may exclude specific industries or companies, allowing them to import goods tariff-free while competitors pay more. This creates an uneven playing field and can spark domestic controversy. Why do tariffs matter for global markets? Tariffs are a robust tool in the hands of governments to shape a nation’s economic and trade strategy. They are not merely taxes on imports but a tool that influences domestic production, consumer behavior and global trade relationships.For the US, tariffs have historically been used to assert economic power on the global stage, protect emerging industries, and respond to unfair trade practices. When countries with large economies are involved, tariff decisions can impact global supply chains, shift manufacturing hubs, and alter the price of goods worldwide. Even for the smaller countries, in an interconnected world, tariffs matter because their impact goes far beyond national borders. Domestically, tariffs could boost local industries by making foreign goods more expensive. This can create jobs and support economic resilience in the short term. Governments getting larger revenue via tariffs will enable them to reduce direct taxes as Trump proposed. But they can also raise prices for consumers, hurt exporters, and trigger retaliation from trade partners.As geopolitical tensions rise and nations reevaluate their economic dependencies, tariffs have reemerged as a central element of US trade policy. Whether used defensively or offensively, they shape the balance between protectionism and global engagement. This makes tariffs a matter not just of economics, but of national strategy and global influence. Who sets tariff policy in the US? In the US, tariff policy is shaped by a combination of legislative authority, executive power and administrative enforcement. Various agencies also help in the execution of tariff policy.Congress holds the constitutional authority to regulate trade and impose tariffs. Over time, Congress has given the president significant power to change tariffs for national security, economic threats or trade violations.The Office of the US Trade Representative plays a central role in formulating and negotiating US trade policy. It leads trade talks, manages disputes, and recommends tariff actions, often in coordination with the president and Congress.US Customs and Border Protection (CBP) is responsible for enforcing tariffs at ports of entry. CBP collects duties based on the classification and value of imported goods according to the Harmonized Tariff Schedule.Several major trade laws have shaped tariff policy in the US. The Smoot-Hawley Tariff Act of 1930, aimed at protecting US farmers during the Great Depression, led to retaliatory tariffs and worsened global trade. Later, the Trade Act of 1974 gave the president tools like Section 301, which was used extensively during the US–China trade war to impose retaliatory tariffs on unfair foreign practices.Together, these actors and laws form the foundation of US tariff policy. Criticism of Trump’s tariff policy Criticism of Trump’s tariff policy surfaced following the announcement of reciprocal tariffs. Critics say this move bypasses Congress and sets a dangerous precedent for unchecked executive power in economic matters.Detractors argue that these tariffs hurt American businesses more than their intended foreign targets. A Vox article argued that low-income people would be hit more by Trump’s tariffs than by the already reeling Wall Street. Former Treasury Secretary Lawrence Summers fears that America may slip into recession due to tariffs, probably costing 2 million jobs nationwide.Legal challenges have also emerged regarding Trump’s tariff policy. The New Civil Liberties Alliance (NCLA), a conservative legal group, has filed a lawsuit on behalf of Simplified, a small business based in Florida that sells planners and sources goods from China. The lawsuit claims that the president overstepped his authority under the International Emergency Economic Powers Act (IEEPA) when imposing tariffs in a non-emergency trade context.Small and mid-sized businesses, many of which rely on global supply chains, will have to deal with rising import costs due to tariffs. This may lead to inflation and reduced competitiveness of such businesses. While the tariffs might hit China financially in the short term, the action could result in higher prices for US consumers and disrupt operations for American firms if the tariff policy continues for a long time.
Base creator admits sharing ‘Base is for pimping’ art was a mistake
The creator of Ethereum layer 2 blockchain Base, Jesse Pollak, has apologized following backlash over posting digital artwork that controversially played on Base’s tagline, “Base is for everyone.”Several social media users found the artwork offensive and inappropriate.“It was a single phrase among many, but I’ll own this was a mistake and apologize,” Pollak said in an April 18 X post referring to his decision to reshare a GIF image that featured the phrase “Base is for…” followed by a rotating sequence of words, including both controversial terms like “pimping” and “squirting,” as well as more neutral ones like “art,” “minting,” and “ideas.”Pollak says he appreciates “provocative art”Pollak emphasized that the artwork was made by a creator, not him, and specifically apologized for the image featuring the phrase “Base is for pimping.”Pollak said that while he wants to support artists building on Base and admits he appreciates “provocative art,” he recognizes the need to be mindful of his shared messages, especially when they appear to come directly from him.Source: Jesse PollakIt comes after criticism from several crypto industry participants who took to social media to voice their disappointment over Pollak’s endorsement of the image, calling out the use of the word “pimping.”Crypto commentator “Kristel” said in an April 18 X post, “so we’re just casually platforming pimping now?” “I get pushing boundaries, but this isn’t it,” she said.“This isn’t provocative and ‘edgy,” she added. Kanto Labs founder said it is an “absolute PR nightmare.”Meanwhile, crypto commentator David Z. Morris said this “doesn’t just hurt Base, it hurts crypto.” Morris added:“The specific allusion to sex trafficking (not “sex work,” pimping is pretty fundamentally exploitation) is specifically bad for a sector that needs to advance the narrative that open finance is a net social positive.”However, many praised Pollak for the apology and his continued efforts to push boundaries in the crypto industry. “Love the honesty. We all make mistakes, but it’s about how we grow from them,” crypto commentator Zuri said.Bankless co-founder David Hoffman said, “I respect the leadership here.” Milk Road co-founder Kyle Reidhead said, “Do and share whatever you want without apology.”Base was at the center of controversy only days ago when the official X account shared a post promoting a memecoin with its marketing tagline, “Base is for everyone.” Related: Base creator Jesse Pollak to join Coinbase exec team and lead wallet chargeIt also shared a link to a token of the same name on Zora, a social network where users can make posts into tokens for others to speculate on.In just over an hour after it was created, the Base is for everyone token hit a peak market capitalization of $17.1 million — then dropped by nearly 90% over the next 20 minutes to a market value of $1.9 million, according to DEX Screener data.A Coinbase spokeswoman distanced Base from the token, telling Cointelegraph on April 17, “Base did not launch a token.” “This is not an official Base token, and Base did not sell this token. Base posted on Zora, which automatically tokenizes content,” the spokeswoman said.Magazine: Make Ethereum feel like Ethereum again: Based rollups explained
Trump firing Powell would be a ‘very bad precedent to set’ — Pompliano
Crypto entrepreneur Anthony Pompliano says that US President Donald Trump shouldn’t follow through on his recent threat to fire the head of the US Federal Reserve, saying it would set a dangerous precedent — especially considering the true motive behind it.“I do not believe that the President of the United States should come in and unilaterally fire the Fed President,” Pompliano said in a video posted on X on April 18.Firing over disagreement is a slippery slope, says PomplianoPompliano said, “Where you have a disagreement and then the firing, I think that’s not really the area that we want to go into.”“The idea of firing the Fed chairman is a very bad precedent to set this way.”It comes after Trump took to his social media platform Truth Social to accuse Fed chair Jerome Powell of being too slow to cut interest rates. “Powell’s termination cannot come fast enough!” Trump said on April 17.Anthony Pompliano made the remarks on his online show “From The Desk of Anthony Pompliano.” Source: Anthony Pompliano Pompliano explained that while the Fed is meant to operate independently, he agrees with critics who argue it’s not truly independent. “The Fed, I think, is highly politicized, even though they pretend not to be,” he said.Pompliano acknowledged his own criticism of the Fed, saying he’s not exactly a fan, but emphasized that even if the Fed has made mistakes, responding in kind isn’t the right approach.“I still think that just because somebody else is doing something wrong doesn’t mean that you should do something wrong,” Pompliano said.US Senator Elizabeth Warren recently warned that if Trump eventually moves to fire Powell, it could undermine investor confidence in the integrity of US capital markets and trigger a financial crash. “A big part of our economy strong, and a big part of the world economy strong, is the idea that the big pieces move independently of politics,” Warren said during an appearance on CNBC.Related: Fed’s Powell reasserts support for stablecoin legislationLower interest rates often lead to increased liquidity, which has historically led to higher prices of perceived riskier assets like Bitcoin and other cryptocurrencies.It comes not long after Powell said establishing a stablecoins legal framework was a “good idea.” In an April 16 panel at the Economic Club of Chicago, Powell said, “The climate is changing, and you’re moving into more mainstreaming of that whole sector, so Congress is again looking […] at a legal framework for stablecoins.”Magazine: Your AI’ digital twin’ can take meetings and comfort your loved ones
Lyn Alden lowers Bitcoin forecast after ‘tariff kerfuffle,’ eyes liquidity
Macroeconomist Lyn Alden expects Bitcoin to finish 2025 higher than its current price of around $85,000, though she says it would have been much higher if not for US President Donald Trump’s tariff announcement in February.“Before all this tariff kerfuffle, I would have had a higher price target,” Alden told Natalie Brunell on the April 17 episode of Coin Stories. “My guess is that we end up higher at the end of the year than we are now, at least,” she added.Bitcoin’s 24/7 trading bolsters volatility when TradFi “freaking out”However, she said that a “massive liquidity unlock” could be the catalyst needed for Bitcoin (BTC) to reach more optimistic targets, similar to those before the tariffs were introduced.For example, if the US bond market “broke” and the US Federal Reserve had to step in with measures like yield curve control or quantitative easing (QE), Alden explained.Lyn Alden spoke to Coin Stories’ host Natalie Brunell on April 17. Source: Natalie BrunellWhile Alden said that there is a “good chance” Bitcoin reclaims the $100,000 price level before the end of the year, she emphasized that market “down days” will remain a challenge for the asset, especially since Bitcoin trades 24/7, unlike traditional stock markets with trading hours.“Because it trades 24/7, if people are worried about how things are going to open on Monday, some pools of capital can sell their Bitcoin on a Sunday and prepare,” she said. Alden explained that crypto’s round-the-clock trading contributes to its “volatile pricing,” particularly when traditional financial markets are “freaking out.”Bitcoin is down 0.95% over the past 30 days. Source: CoinMarketCapAt the time of publication, Bitcoin is trading at $84,950, according to CoinMarketCap data.However, Alden said Bitcoin can “disconnect” from the Nasdaq 100, especially in situations that “hurt Nasdaq margins” without affecting global liquidity. As an example, she pointed to a potential repeat of the five years leading up to the 2008 Global Financial Crisis, which she believes could be favorable for Bitcoin.Related: Bitcoin whales absorb 300% of newly mined BTC supply — Is $100K next?She pointed to the 2003–2007 period, where there was a weaker US dollar cycle, and while there wasn’t a mass exodus of capital, it did flow into “emerging markets,” commodities, gold, and other assets — with US stocks not “really being the place to be.”“If we encounter a five-year period like that again, that could be a period where Bitcoin does pretty well, even as the US stock market doesn’t do particularly well.”Alden wrote in a September research report that Bitcoin moves in the direction of global M2 83% of the time in a given 12-month period. The research termed “Bitcoin a Global Liquidity Barometer” compared Bitcoin to other major asset classes such as SPX, gold and VT, and BTC topped the correlation index concerning global liquidity.Magazine: Uni students crypto ‘grooming’ scandal, 67K scammed by fake women: Asia Express