Token Chronicle - Week 1 April 2025

Top cryptos

Meme of the week

Market Sentiment:

Market update: The market finally reacted yesterday to Donald Trump’s tariff announcements (from last Wednesday) and followed the overall market trend: BTC dropped to $74K before bouncing back to $79K, while ETH is hovering around $1,500, triggering a wave of liquidations.

Despite this, I believe the crypto market is holding up well and could absorb the news relatively quickly before resuming its upward trajectory. The drop was purely driven by macroeconomic trends, whereas the crypto ecosystem itself remains strong and continues to progress: a major Ethereum update is coming in May, new U.S. crypto regulations are being implemented, Bitcoin reserves are increasing at both governmental and corporate levels, and traditional finance is further embracing crypto adoption.

It will be interesting to see if the market can decouple from traditional equities. While it will still be influenced by stock markets (especially due to TradFi’s growing presence), it will also react to upcoming Fed announcements regarding rate cuts. There’s a lot of uncertainty ahead, but I don’t think we’re looking at the start of a recession.

Main points this week:

International News:

1. The United States Ready to Buy 200 Billion Dollars in Bitcoin: The Largest Operation in History?
   In March 2025, Donald Trump signed a decree to create a strategic Bitcoin reserve. During the last Bitcoin Policy Institute (BPI) meeting, Andrew Hohns presented the concept of "BitBonds": U.S. Treasury bonds backed by Bitcoin—bonds yielding 1%, with 10% used to purchase BTC.

2. Gazprom, the World’s Largest Natural Gas Producer, Ventures into Tokenization:
   The Russian energy group Gazprom announced that it has started issuing tokenized financial assets through its subsidiary Gazprombank. This move adds to recent initiatives aimed at structuring and expanding the DFA market in Russia, supported by financial authorities and now adopted by major industrial players. This operation, carried out on the Moscow Exchange platform, follows the regulatory framework set by the Central Bank of Russia. On March 31, Gazprombank issued 2 million tokens, each valued at 1,000 rubles, for a total of 2 billion rubles (about 22 million euros). These tokens will offer an annual return of 21%, with a maturity date set for May 13, 2025. On this date, each token will be worth 1,024.74 rubles, a 2.47% gain over the principal.

3. Pakistan Aims to Turn Its Energy Surplus into Bitcoin:
   Pakistan aims to position itself as a leader in emerging technologies, particularly by exploiting its energy surplus for Bitcoin mining. This new dynamic unfolds in a context marked by historical reluctance. In May 2023, former Finance Minister Aisha Ghaus Pasha stated that cryptocurrencies would never be legalized due to the Financial Action Task Force (FATF) requirements for combating money laundering. Simultaneously, Pakistan faces a major challenge in managing and efficiently distributing its energy resources nationwide. Despite the country’s significant energy potential, with developing hydroelectric, solar, and thermal infrastructures, millions of households still face regular power outages.

4. Trade War: Emmanuel Macron Calls for Suspension of Investments in the U.S.:
   In response to Donald Trump’s trade war declaration, Emmanuel Macron called for a temporary halt to investments in the United States. According to him, the American economy will be the first victim of these new tariffs.

5. Donald Trump Launches the "Trump Gold Card" at $5 Million to Attract the Ultra-Wealthy:
   Donald Trump unveiled a controversial initiative, the "Trump Gold Card." Offered at a price of $5 million, this golden card promises wealthy foreigners privileged access to permanent residency in the U.S., replacing the traditional EB-5 investor visa. Featuring the president's face, the initiative aims to redefine economic immigration while raising significant ethical and political concerns.

6. Donald Trump Ready to Cut Tariffs in Exchange for “Phenomenal” Offers:
   Donald Trump once again shook the global economy with a shocking announcement: the U.S. president has left the door open for tariff reductions in exchange for “phenomenal” proposals. Behind these remarks, markets foresee a potential calm.

7. North Korea Deploys AI-Based Hacking Unit to Attack Western Systems:
   North Korea seems to be strengthening its cyberattack capabilities with the creation of the 227 Research Center, focused on artificial intelligence. According to a report from Daily NK, the Kim Jong Un regime launched a new hacking unit at the end of February. This unit, named “227 Research Center,” aims to develop advanced cyberattack technologies, particularly AI-based. According to an anonymous source within the regime cited by Daily NK, the 227 Research Center will not only focus on traditional intelligence gathering but will primarily concentrate on creating methods to infiltrate Western IT systems.

8. “Sometimes, You Need Medicine to Get Better” – Donald Trump Vague as Market Decline Continues:
   The President of the United States imposed new tariffs last week, causing a global market crash. However, on Sunday, Donald Trump was vague, admitting he did not know if the decline would continue. The Dow Jones experienced a monumental 9.3% drop over two days, and the S&P500 plummeted by 9.1% for the week. The Nasdaq also experienced a similar drop, losing 10% since March 31. During the night, the Nikkei lost 8% in an hour, while the Hang Seng, closed on Friday, caught up with a 9.5% drop overnight. As for the SSE Composite Index, it fell 7.3% this morning. The stock market crash was accompanied by a decline in cryptocurrencies: Bitcoin (BTC) is now worth only $74,700, a drop of 8.6% for the week. As for Ether (ETH), it had one of the worst weeks in its recent history, with a 20% drop in the last 24 hours. In one day, crypto markets lost an average of 12.5%.

9. After Causing Chaos in Markets, Donald Trump Puts Pressure on the Central Bank:
   As Wall Street and major global markets collapse under the weight of the trade war launched by the United States, Donald Trump is now seeking to impose his economic vision on the Federal Reserve. A risky double game that could lead the U.S. economy into a recession. In the face of widespread panic, attention turns to the Federal Reserve. And Donald Trump makes no secret of his views. In a post on Truth Social on Friday, he directly addressed the Fed’s Chairman, Jerome Powell: “Lower interest rates, Jerome, and stop playing politics.” The Fed Chairman, however, is not intimidated. He stated that the central bank “probably does not need to rush” to adjust its monetary policy. A prudent stance: employment figures remain strong, and inflation could rebound due to the tariffs. The dilemma is significant: stimulate the economy or contain inflation?

10. “Economic Bazooka”: Europe Prepares Its Response to Donald Trump:
    In the face of Donald Trump’s tariff tsunami, Europe is preparing its counterattack. According to European Commissioner Stéphane Séjourné, the European Union may deploy its “anti-coercion shield.” This mechanism allows Europe to respond in case a country tries to exert pressure on its economy. Originally conceived for China, the shield could eventually be applied to the United States. In practical terms, the U.S. digital sector—which is currently unavoidable—could be the most impacted by new European taxes. Import-export licenses could also be created for U.S. companies, further tightening trade with the European Union.

Compliance / Regulation / Justice:

1. BlackRock Registers Its Crypto Services in the UK:
   The company has secured registration for its crypto services in the UK with the Financial Conduct Authority (FCA). This regulatory step will allow the finance giant to launch new crypto ETPs in the UK.

2. Binance and Kraken Delist Tether’s USDT in Europe Amid Regulatory Pressures:
   The exchanges are complying with MiCA, the new European regulation that strictly governs stablecoins. Tether has historically opposed this framework and has now been delisted from European platforms subject to MiCA. Since this week, European Binance users can no longer trade USDT on the spot market, but they can still hold USDT and use it in perpetual futures contracts. On Kraken, users are now only allowed to sell any remaining USDT they hold.

3. Will FDUSD Be the Next to Disappear?
   Yesterday, the FDUSD stablecoin, pegged to the U.S. dollar, temporarily lost its peg, dropping as low as $0.91. This "depeg" incident was triggered by public insolvency allegations made by Justin Sun, the founder of the Tron blockchain. The issuer of the stablecoin, First Digital Trust, firmly denied these claims, calling it a competitive destabilization attempt. Sun did not limit himself to just criticizing; he openly urged investors to withdraw their funds and warned authorities of a systemic risk. According to him, First Digital Trust diverted funds allocated for the TrueUSD (TUSD) stablecoin, managed on behalf of Techteryx, to an unauthorized entity based in Dubai.

4. Elon Musk's X has urged the U.S. Supreme Court to block the Internal Revenue Service from accessing Coinbase user data without a warrant. The social media platform, along with seven other researchers and advocacy groups, argues that the IRS violated privacy rights with the use of so-called "suspicionless" subpoenas to obtain three years of transaction records from over 14,000 Coinbase users. The Supreme Court subsequently requested a response from the federal government following X's petition. Meanwhile, Politico reported on Wednesday President Trump told his inner circle that Musk will step back from his Department of Government Efficiency role in the coming weeks.

5. Singapore’s central bank, MAS, has issued a consultation paper on implementing BCBS standards for banks’ crypto asset exposures, set to take effect by January 2026. The framework classifies crypto into three groups: tokenized traditional assets (Group 1a), qualifying stablecoins (Group 1b), and all others (Group 2). Group 2 assets face the strictest treatment, with full capital deduction and exposure limits below 2%. MAS is also seeking input on reserve asset scope and due diligence for stablecoins, including a risk test evaluating price stability. The consultation closes on April 28, 2025.

6. A new bill is making waves in Washington - one that could stop central bank digital currencies (CBDCs) in their tracks. The Anti-CBDC Surveillance State Act, passed by the House Financial Services Committee, aims to prevent federal banks from issuing or using CBDCs over concerns they could be used for government surveillance and financial control. Supporters argue it protects privacy and freedom, while critics warn it could put the U.S. behind in the digital currency race, weakening the dollar’s dominance.

Traditional Finance:

1. Fidelity has launched a no-fee crypto IRA that allows U.S. adults to invest in bitcoin, ether and litecoin. The retirement product comes amid growing demand from clients for tax-advantaged crypto investment options. Financial advisors are showing increased interest in crypto ETFs, with most leaning toward crypto equity exposure, according to a survey by TMX Vetta Fi.

2. Avalanche (AVAX) Expected to Surge 1,300% by 2029, Says Standard Chartered:
   While AVAX crypto shows several recovery signals following its last corrective phase, Standard Chartered is optimistic. According to their analysts, the recent Etna update, which reduced the cost of creating a Layer 1 on Avalanche's blockchain, could propel the cryptocurrency to new heights.

3. The market of tokenized assets, including stablecoins, is projected to reach $18.9 trillion by 2033, according to Ripple and BCG. The report highlighted tokenization of money markets, private credit and carbon emissions as use cases offering operational efficiencies. Unclear regulations, lack of standardization and market fragmentation are among barriers for broader adoption, the report said.

Tech News:

1. Bittensor (TAO) Unveils Its First Bridge to Ethereum and Its Stablecoin, taoUSD:
   Through an integration with the interoperability platform Hyperlane, Bittensor (TAO) is now connected to the Ethereum ecosystem. The project, which works to merge blockchain and artificial intelligence, also revealed its first stablecoin: taoUSD. Historically, the Bittensor network was isolated from the broader blockchain ecosystem. Its main layer, Subtensor, was built on an architecture that had neither a native bridge nor full EVM compatibility until October 2024. The integration with Hyperlane, a modular open-source protocol, is now key. Unlike traditional bridges, Hyperlane allows developers to freely adapt their interchain infrastructure. In the case of TaoFi, the team built a custom route to lock USDC on Ethereum to mint taoUSD on Subtensor.

2. Crypto Payments as Easy as SMS: Mastercard Partners with Kraken!
   Major financial institutions are succumbing to the allure of cryptocurrencies. By partnering with Kraken, Mastercard strengthens its presence in this booming ecosystem. The goal is clear: “Enable millions of Kraken users to spend their crypto at over 150 million merchants worldwide who accept Mastercard.”

3. Vana, an EVM-compatible Layer 1 blockchain focused on monetizing personal data, has introduced the VRC-20 standard for data-backed tokens. Similar to Ethereum’s ERC-20, VRC-20 ensures compatibility and transparency for tokenized data assets. The standard includes fixed supply, governance, and liquidity rules while tying tokens to real data utility. Vana launched its mainnet in December with its native VANA token and has since onboarded over 12 million data points through DataDAOs—decentralized marketplaces where data is tokenized for AI training. The initiative aims to financialize data while maintaining market stability.

4. Hashgraph, the firm behind the Hedera (HBAR) network, is developing HashSphere, a private, permissioned blockchain set to launch in Q3 2025. Designed for regulated industries, HashSphere will bridge private and public ledgers, ensuring compliance while enabling secure cross-border transactions with stablecoins. Targeting asset managers, banks, and payment providers, it addresses KYC and AML challenges by restricting access to verified participants. The network supports tokenized assets and AI-driven services while integrating Hedera’s Token and Consensus Services. EVM compatibility allows developers to deploy decentralized applications using Solidity and other Ethereum-based tools.

5. Ethereum developers set May 7 as the target date for the long-awaited Pectra upgrade, beginning the countdown for the blockchain's biggest changes since March 2024. The decision to schedule Pectra was made during a call between Ethereum's core developers – just over a week after the upgrade went live on the Hoodi testnet without any hiccups.

Adoption:

1. Tether Buys 8,888 Bitcoins and Becomes the 6th Largest BTC Holder Worldwide:
   Amid the turmoil in the crypto markets, Tether continues its strategy and massively accumulates Bitcoin. The issuer of the USDT stablecoin has just acquired an additional 8,888 BTC, now ranking as the 6th largest holder worldwide with a single address. This new purchase brings Tether's total reserves to 92,646 BTC, which is worth approximately $7.8 billion at the current market price.

2. Up to $10,000 per Month in Bitcoin Tax-Free? Rhode Island Could Lead the Way:
   The state of Rhode Island is considering a law that would allow residents to sell up to $10,000 worth of Bitcoin per month without paying state taxes. This proposal, led by Senator Peter Appollonio, marks another step toward Bitcoin adoption in the United States.

3. PayPal has expanded its crypto offering in the U.S. to support buying, selling, holding and transferring Solana and Chainlink's native cryptocurrencies for the first time. Previously, customers could only use PayPal as a payment method to buy SOL or LINK via the crypto onramp MoonPay. The payments giant has offered crypto services since October 2020 but previously only supported Bitcoin, Ethereum, Litecoin and Bitcoin Cash directly, as well as its own stablecoin, PayPal USD.

Funding/Partnerships:

1. $300 Billion: Record Valuation for OpenAI After Huge Investment from SoftBank:
   OpenAI secured a significant investment from SoftBank, pushing its valuation beyond $300 billion. This investment will only be unlocked in full if OpenAI becomes a for-profit company. As a reminder, the company started with a non-profit model, but it is transitioning to a more traditional commercial model. SoftBank is therefore supporting this shift, which is the condition for its $40 billion contribution. If this transition does not happen, the investment will drop to "only" $10 billion, the amount invested this month. If all goes as planned, the remaining $30 billion will be released in December 2025.

2. March 2025: Historic Record for Crypto Industry Fundraising:
   Every month, numerous companies in the crypto ecosystem manage to attract investor interest and secure funding. March 2025 was no exception, as over $5.33 billion was raised by companies in the sector.

3. Codex, a blockchain startup focused on enterprise stablecoin solutions, raised $15.8 million in seed funding led by Dragonfly Capital with participation from major crypto firms including Coinbase, Circle and Wintermute. Built as an Ethereum Layer 2 using Optimism's tech stack, Codex aims to solve issues like UX friction, workflow incompatibility and regulatory uncertainty for businesses adopting crypto. The platform emphasizes privacy, low transaction fees and fiat conversion options to meet institutional needs.

4. Cap has raised $11 million from investors including Franklin Templeton and Triton Capital to develop its stablecoin engine. The funding will support Cap's system, which allows users to earn passive interest on stablecoins. Cap's approach includes leveraging traditional financial expertise to generate yield beyond crypto-native sources.

Disclaimer: The information disclosed here does not constitute an investment advice ; it is for informational purposes only and does not constitute investment advice. You should do your own research while investing in crypto and only invest money you are ready to lose.