Token Chronicle - Week 1 March 2025

Top cryptos

Meme of the week

Market update: A highly volatile market fluctuating based on macroeconomic uncertainties and overall market sentiment, despite bullish news in the sector (such as strategic reserves being established and increasing adoption by traditional finance players).

BTC is trading within a $79K-$86K range, while ETH dropped below $2K this morning.

Among the key uncertainties impacting the market are concerns about the trade war, the resolution of the Ukraine conflict (and the state of the U.S.-EU alliance given Donald Trump's stance on the matter), and, more recently, U.S. employment and inflation figures that came in slightly below expectations.

Main points this week:

International News:

1. Tariff Hikes: China Ready to Retaliate “Until the End” as Stock Markets Plunge
   Donald Trump’s decision to increase U.S. tariffs on Chinese goods has triggered another wave of market tensions. In response to these new tariffs, China’s Ministry of Foreign Affairs stated it is prepared to engage in a trade war “until the end.” Global stock markets and cryptocurrencies have seen sharp declines. Meanwhile, the U.S. has also imposed new tariffs on Canadian and Mexican imports starting today. Adding to the shock, Trump unexpectedly raised the tariff hike for China from 10% to 20%. In response, Beijing has applied new tariffs on U.S. products like wheat, corn, and poultry. China’s Ministry of Finance has firmly condemned the U.S. decision.

2. El Salvador: IMF Requests Ban on Government Bitcoin Purchases
   The International Monetary Fund (IMF) has issued a new set of requests regarding the Salvadoran government’s Bitcoin (BTC) purchases. The country, which had already amended its “Bitcoin Law,” may no longer be able to purchase as much cryptocurrency as it wishes. The IMF is currently negotiating a $1.4 billion loan for El Salvador, but in return, it is demanding financial stability measures—including restrictions on Bitcoin. The IMF specifically asks El Salvador to refrain from “voluntary accumulation of BTC by the public sector.” Only Bitcoin seized through legal procedures would be allowed in the state treasury. However, President Nayib Bukele has stated he will continue buying.

3. Belarusian President Plans to Mine Cryptocurrency for the State
   Belarusian President Alexander Lukashenko has shown strong interest in cryptocurrency mining this week. He plans to use the country's surplus energy to mine crypto assets. However, his priority is first to modernize the national power grid. Given that Belarus has some of the lowest electricity prices in Europe, redirecting part of the grid to Bitcoin mining could prove highly profitable.

4. Thales, Dassault… Defense Companies’ Stocks Soar Amid Diplomatic Crisis
   Ongoing geopolitical tensions have led European nations to call for increased military spending. As a result, defense company stocks are soaring in France and beyond. This trend may continue as the European Union plans to inject hundreds of billions of dollars into defense. The EU has just announced an $800 billion plan to support Ukraine, following a diplomatic clash between Donald Trump and Volodymyr Zelensky and the U.S. cutting aid. Since their heated exchange on February 28, defense stocks have risen by an average of 20%. In France, Thales and Dassault have seen their shares jump 19–20% in just five days, while Norway’s Kongsberg and Germany’s Rheinmetall gained 20% and 19%, respectively.

5. Trump’s Strategic Bitcoin Reserve Disappoints: Too Little, Too Late?
   Donald Trump has signed an executive order establishing a strategic Bitcoin reserve. While this places the U.S. alongside nations like El Salvador and Bhutan, the crypto community found the details underwhelming:

   • The reserve will consist only of BTC seized through legal proceedings by the U.S. Treasury Department.

   • No BTC sales are planned; they will be held as a “store of value.”

   • Treasury and Commerce officials may develop “budget-neutral strategies” to acquire additional BTC without using taxpayer funds.

   • Other cryptocurrencies may be added to the reserve but can still be sold, unlike Bitcoin.

   This decision has divided the crypto community: Bitcoin maximalists hoped for government purchases to strengthen the reserve, while broader crypto enthusiasts wanted their favorite coins to surge from institutional buying.

6. Texas May Launch Its Own Bitcoin Reserve Following Federal Initiative
   A Texas bill proposing the creation of a state-level strategic Bitcoin reserve is progressing through the Senate. A final vote in the House of Representatives could soon authorize Texas to acquire Bitcoin for its reserves. If passed, Texas—whose $2.4 trillion GDP rivals France’s $3 trillion—would send a powerful message to the world about Bitcoin adoption.

7. EU Plans €800 Billion in Defense Spending for Ukraine, Ignoring Hungary’s Veto
   At the extraordinary EU summit on March 6, 2025, European leaders agreed to increase the continent’s defense capabilities. Hungary, however, strongly opposed military aid to Ukraine. Of the €800 billion, €150 billion in loans will go toward the joint acquisition of European defense equipment.

8. Japan Fintech Week 2025 brought major announcements from Tokyo. SBI VCトレード secured Japan’s first electronic payments provider license under the stablecoin framework, allowing it to offer USDC in partnership with Circle. Meanwhile, the ruling Liberal Democratic Party’s Web3 working group proposed regulating crypto assets under the Financial Instruments and Exchange Act (FIEA) as a standalone asset class. The reforms could also lead to lower crypto taxes, addressing long-standing industry concerns about Japan’s competitive disadvantage in global markets.

Compliance/regulation/justice:

1. Ethereum Foundation commits $1.25 million to support Tornado Cash developer:
   The Ethereum Foundation recently announced a $1.25 million donation to support Alexey Pertsev, developer of Tornado Cash, in his appeal against a money laundering conviction.

2. U.S. Congress seeks to ban presidential memecoins: MEME Act approaching:
   The House of Representatives, led by Representative Sam Liccardo, aims to put an end to the exploitation of memecoins by high-ranking U.S. officials. At the center of the controversy: Donald Trump and his famous “Trump memecoin.” The "Modern Emoluments and Malfeasance Enforcement Act" (MEME Act) was introduced by Democratic Representative Sam Liccardo on February 27, 2025. Its goal? To prohibit high-ranking political figures—such as the president, vice president, members of Congress, and senior officials—as well as their families from launching or promoting speculative digital assets. The U.S. president’s family is clearly targeted by the MEME Act.

3. Bybit: Hackers laundered the entire 499,000 ETH stolen:
   The North Korea-affiliated hacker group Lazarus successfully laundered all 499,000 ETH (approximately $1.39 billion) stolen from the Bybit platform in just 10 days using THORChain. This situation has sparked intense criticism. Unlike other protocols that took action to block stolen funds, THORChain did not respond significantly. Pluto, a core community member, resigned in protest after a proposal to suspend Ether transactions was rejected. Bybit CEO Ben Zhou confirmed that 77% of the stolen funds remain traceable, 20% have become untraceable, and 3% have been frozen. Data shows that 83% of the laundered assets were converted into Bitcoin and dispersed across 6,954 wallets.

4. SEC halts actions against Yuga Labs and Kraken:
   The U.S. Securities and Exchange Commission (SEC) has dropped legal proceedings against two more crypto companies. Yuga Labs and Kraken will no longer have to battle with the U.S. financial watchdog.

5. Terra: Do Kwon’s U.S. hearing postponed after discovery of new evidence:
   The legal case involving Do Kwon, co-founder of Terraform Labs, has taken a new turn. U.S. prosecutors recently presented a massive amount of new evidence, leading to the postponement of the initially scheduled hearing. A total of 4 terabytes of new evidence must be analyzed, including data from four mobile phones, various online accounts, and third-party entities. This adds to the 600 gigabytes of evidence already submitted on February 27, 2025, including Do Kwon’s emails and cryptocurrency transactions.

6. Non-compliant stablecoins under MiCA: Crypto platforms can still offer custody services:
   While crypto exchanges can no longer allow European clients to trade non-compliant stablecoins under MiCA, custody remains an option. "Under MiCA, custody and transfer services do not themselves constitute a 'public offering' or a 'request for admission to trading' of asset-referenced tokens or non-compliant electronic money tokens. These services are therefore not explicitly prohibited by Articles III and IV of MiCA."

Traditional Finance:

1. BlackRock adds Bitcoin to its model portfolios:
   BlackRock, the world’s largest asset manager, has announced the integration of its Bitcoin ETF, iShares Bitcoin Trust (IBIT), into its model portfolios. A significant step in institutional crypto adoption amid market volatility.

2. Dogecoin (DOGE): New York Stock Exchange files for Bitwise’s DOGE ETF listing:
   NYSE Arca has filed a request with the U.S. Securities and Exchange Commission (SEC) to list Bitwise’s Dogecoin (DOGE) ETF. Coinbase has been designated as the custodian for the ETF’s assets, which will be backed by spot DOGE rather than futures contracts.

3. Grayscale files a new ETF request based on Hedera (HBAR):
   Grayscale has submitted its sixth ETF application based on an altcoin—HBAR. Hedera’s cryptocurrency joins a growing list of digital assets sought by institutional investors in the U.S. Hedera is a unique cryptocurrency project based on hashgraph technology, distinguishing it from other blockchain protocols. Grayscale’s ETF application for HBAR was filed with Nasdaq over the weekend.

4. 24/7 stock trading? Nasdaq unveils revolutionary project:
   On Friday, Nasdaq President Tal Cohen revealed plans for a 24-hour stock market. Among the key arguments for this change, Cohen emphasized the significant presence of U.S. stocks in foreign portfolios. Last summer, this amounted to $17 trillion—an increase of over 97% since 2019.

5. Bitwise has officially filed with the SEC to launch an exchange-traded fund (ETF) tracking Aptos (APT), a layer-1 blockchain token. The move follows its recent creation of a Delaware trust for the proposed ETF. To proceed, Bitwise must also submit a 19b-4 filing, which would trigger a regulatory review with a set deadline. Aptos is known for its scalability and use of the Move programming language.

6. Chicago-based trading giant Jump is ramping up its cryptocurrency operations in the U.S. after scaling back due to regulatory pressures. While it continued crypto trading globally, Jump is now hiring engineers and preparing for policy roles in the U.S. The firm previously faced scrutiny following the Terra Luna and FTX collapses, leading to workforce cuts and the spin-out of its Wormhole project. With shifting U.S. regulations under Trump, Jump may also explore opportunities in the crypto ETF space.

Tech News:

1. Base promises to be twice as fast as Solana with this update:
   Base currently dominates the Layer 2 sector in terms of activity. Coinbase’s Layer 2 blockchain is set to become 10x faster with the introduction of “Flashblocks.” These will allow Base to pre-confirm blocks in just 200 milliseconds, making it the fastest EVM-compatible blockchain to date. Additionally, Base has introduced Smart Wallet Sub Accounts to enhance the on-chain user experience, addressing issues with pop-ups and permission requests.

2. Aave expands to Sonic, its first Layer 1 of the year:
   Aave is expanding to the Sonic Layer 1 blockchain, marking its first such deployment in 2025. This move integrates Aave into a new ecosystem with an innovative revenue-sharing model.

3. Reddit founder wants to buy TikTok US and put it on blockchain:
   Alexis Ohanian, co-founder of Reddit, has a plan for TikTok. He wants to buy the company and operate it using blockchain technology. The project, dubbed “The People’s Bid,” aims to return control of user data to TikTok users.

4. Aave DAO prepares for one of the biggest changes in its history:
   Aave is on the verge of becoming a decentralized finance (DeFi) giant with its latest DAO proposal. Changes include a revamped staking reward system, enhanced security measures, and the provision of services to other DeFi protocols.

5. Coinbase wants to revolutionize stock trading by tokenizing its COIN shares:
   Coinbase is making another push toward asset tokenization. After shelving a similar project in 2020 due to regulatory barriers, the exchange is now reviving its ambition to offer digitized financial securities on blockchain in a more favorable regulatory environment.

6. A coup in the making on Solana (SOL)?
   The SIMD-0228 proposal could dramatically transform the Solana blockchain. According to its developers—linked to an investment fund—the update aims to enhance security. SIMD-0228 proposes a dynamic inflation model for SOL tokens, adjusting based on the percentage of SOL staked. Currently, the inflation rate is 4.6%, set to decrease by 15% annually until stabilizing at 1.5%. However, developers and supporters of the change want inflation to vary based on staking levels: if less than 33% of SOL is staked, inflation increases; if a high proportion is staked, inflation decreases. At the current 65% staking level, inflation would drop below 1%. The only significant opposition comes from Solana Foundation President Lily Liu, who warned that this change could have major and potentially dangerous implications for the network.

7. Ethereum developers activated the Pectra upgrade on the Sepolia testnet, the final test before the mainnet launch. While Sepolia reached finality, a deposit contract issue caused empty blocks for hours before developers identified and fixed it. This follows earlier challenges on the Holesky testnet in February. Pectra introduces key upgrades like account abstraction (EIP-7702), increased validator stake limits (EIP-7251), and enhanced rollup scalability (EIP-7691).

8. MetaMask announced plans to enhance its wallet by integrating smart contract capabilities, improving security and user experience. Currently an Externally Owned Account (EOA), MetaMask aims to introduce Contract Accounts (CAs) with recovery mechanisms and security checks. A key upgrade includes ERC-5792, enabling batched transactions like "approve + swap" in a single click, reducing gas fees and streamlining processes. The update was shared during ETHDenver, highlighting MetaMask’s focus on making self-custody more user-friendly.

Adoption:

1. Metaplanet adds $14 million in Bitcoin to its treasury:
   Metaplanet continues its Bitcoin accumulation strategy by adding 156 BTC worth $14.4 million to its treasury. The Japanese company now holds 2,391 BTC, valued at over $220 million, with an ambition to reach 10,000 BTC by the end of 2025.

2. Nasdaq-listed company launches first public corporate Ethereum treasury:
   BioNexus Gene Lab has approved an unprecedented strategy by establishing a corporate treasury dedicated to Ethereum (ETH). The company’s whitepaper highlights Ethereum’s staking yield and its central role in global finance as key reasons for the decision.

3. Mexican billionaire bets everything on Bitcoin:
   Ricardo Salinas Pliego, one of Mexico’s richest men, has significantly increased his crypto holdings. 70% of his portfolio is now in cryptocurrencies, with the remaining 30% in gold and gold mining companies. In 2020, he had already invested 10% of his cash in Bitcoin, calling it a safeguard against government asset seizures.

Funding & Partnerships:

1. Flowdesk raised a $52 million Series B extension, bringing total Series B funding to $102 million. The round included an 80/20 equity-to-debt split, with HV Capital leading the equity portion and BlackRock managing the debt financing. The funds will support Flowdesk’s expansion, including a new crypto credit desk, improved trading infrastructure, and MiCA regulatory compliance. The company also plans to nearly double its 140-person workforce and open a new UAE office.

2. Across Protocol raised $41 million in an ACX token sale led by Paradigm, with backing from Bain Capital Crypto, Coinbase Ventures, and Multicoin Capital. The protocol enables fast, intents-based cross-chain transfers, completing most Layer 2 transactions in under five seconds using the ERC-7683 standard. Across has processed $19 billion in volume and recently integrated with Uniswap’s in-app bridging. The funding will help drive ERC-7683 adoption and support Ethereum’s rollup-centric strategy by unifying fragmented Layer 2 networks.

3. Bitcoin layer-2 network BOB has integrated with crypto custody firm Fireblocks, expanding access to its DeFi ecosystem. Over 2,000 entities using Fireblocks can now interact with BOB’s network, which holds around $250 million in total value locked (TVL). The integration enables users to earn yield on their BTC holdings, further positioning Bitcoin within the DeFi space.

4. DoubleZero Foundation, a startup focused on improving blockchain performance, raised $28 million at a $400 million valuation, with Dragonfly and Multicoin Capital leading the round. The company aims to optimize blockchain data transmission using a private fiber optic network, with plans to expand its testnet to Solana validators and other chains. Its infrastructure, backed by Jump Crypto and other firms, played a hidden role in Solana's high-speed Firedancer demo. DoubleZero is now seeking additional strategic investment at a $600 million valuation.

5. -Ethena Foundation, the organization behind the decentralized synthetic dollar USDe, raised $100 million from a private sale of its ENA governance tokens. Investors in the round included Franklin Templeton, Polychain, Pantera, Dragonfly and Fidelity's venture arm, F-Prime.

6. Bitwise, a crypto asset manager, raised $70 million in an equity funding round led by Electric Capital. Other investors included MassMutual, Highland Capital, MIT Investment Management Company, Haun Ventures, ParaFi Capital and Khosla Ventures.

7. Raise, a crypto platform for gift cards, nabbed $63 million in a funding round led by Haun Ventures. Other participants included Amber Group, Anagram, Blackpine, Borderless Capital, GSR and Paper Ventures.

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.