Token Chronicle - Week 2 February 2025

Author

Julien Bordas
February 16, 2025

Token Chronicle - Week 2 February 2025

Top cryptos

Extract from CoinMarketCap.com on February 16th 2025

Meme of the week

Market update: A fairly stable week with BTC ranging between $94K and $98K, with volatility driven by the latest US inflation figures (a new Fed rate cut might not happen until September). We'll see if a new rebound occurs in the coming weeks, as many news updates are quite bullish. Strong performance this week from BNB (notably with PancakeSwap) following new announcements from CZ, as well as from Mantra, and generally in AI and RWA.

Main points this week:

International Affairs:

  1. Europe Will "Retaliate" Against Tariffs Imposed by Donald Trump, Says French Foreign Minister:
    Donald Trump has confirmed that he will reintroduce a 25% tariff on steel and aluminum imports while also aiming to reduce imports of European pharmaceuticals. In response to this potential blow, Europe will "retaliate," according to French Foreign Minister Jean-Noël Barrot.

  2. De-dollarization: Russia and India Now Conduct 90% of Their Trade in Local Currencies:
    De-dollarization is underway. This was the message conveyed by Russia’s ambassador to India, confirming that 90% of transactions between the two countries are now conducted in national currencies. Additionally, the two nations plan to integrate their banking payment systems—Mir for Russia and RuPay for India. For context, Russia has had no access to the SWIFT system since the onset of the war in Ukraine. This global trend is causing concern in the United States, but it is accelerating. Just last week, it was revealed that Iran wants the BRICS+ nations to adopt a common currency. In response, President Donald Trump has threatened 100% tariffs.

  3. Jerome Powell Confirms the Fed Will Block the Creation of a Digital Dollar Under His Leadership:
    There will be no digital dollar in the United States as long as Jerome Powell is in charge of the Federal Reserve. He confirmed this yesterday before the Senate Banking Committee. In the U.S., Republicans have firmly opposed the digital dollar, viewing it as a means to monitor Americans' financial transactions and a threat to banks.

  4. Japan's Financial Services Agency (FSA) is considering classifying crypto assets as financial products similar to securities to enhance investor protection, Nikkei reported. The agency is conducting a closed study session with experts and plans to announce regulatory reforms by June, which could boost the appeal of spot cryptocurrency ETFs if approved.

  5. President Trump plans to nominate Brian Quintenz, head of global policy at a16z crypto and former CFTC commissioner, to chair the Commodity Futures Trading Commission, Bloomberg reported. Quintenz's nomination aligns with Trump's pro-crypto agenda, positioning the CFTC as a key regulator in the industry.

  6. The Czech Republic is embracing crypto with progressive policies from both its central bank and government. The Czech National Bank is actively supporting blockchain innovation and has even started accumulating bitcoin reserves. In a major pro-crypto move, the government announced plans to eliminate capital gains tax on long-term crypto holdings, making the country a prime destination for digital asset investors. This aligns with a broader trend of regulatory shifts in Europe aimed at fostering digital finance and blockchain adoption.

  7. Coinbase is in talks to return to India after exiting the market two years ago. According to a TechCrunch report, the exchange's representatives held talks with local authorities including the Financial Intelligence Unit (FIU) to secure regulatory approval for the exchange. The company joins other crypto exchanges such as Binance and Bybit in looking to establish, or reestablish, a presence in the world's most populous country. Coinbase will report fourth-quarter earnings later on Thursday after market close.

  8. Abu Dhabi’s Mubadala Investment Company bought $436.9 million of BlackRock’s spot Bitcoin ETF (IBIT) in Q4, per an SEC filing. The purchase came as BlackRock secured a commercial license in Abu Dhabi. IBIT leads the U.S. Bitcoin ETF market with $56 billion in assets under management. Since launching in January 2024, it has attracted over $41 billion in net inflows. This marks one of Abu Dhabi’s largest crypto investments to date. The government previously invested in Bitcoin mining infrastructure in 2023.

Compliance / Regulation / Justice:

  1. Memecoins Like TRUMP May Not Be Regulated, Says SEC Crypto Head:
    A boost for the U.S. President? Hester Peirce, the head of the cryptocurrency task force at the Securities and Exchange Commission (SEC), confirmed that the agency intends to take a lenient approach toward memecoins. This includes TRUMP, the humorous cryptocurrency launched by Donald Trump at the start of his term.
    "A lot of people are launching memecoins right now. We always have to assess the circumstances surrounding them, but most existing memecoins probably don’t fall within the SEC’s current regulatory framework."

  2. Gemini to Offer Leveraged Crypto Products Across Europe:
    After receiving preliminary approval from Malta’s financial regulator, Gemini will be able to offer perpetual crypto trading in Europe. This move is part of a broader strategy to establish Malta as Gemini’s European hub while ensuring compliance with MiCA regulations, which came into effect on December 30.

  3. SEC Requests to Pause Its Lawsuit Against Binance:
    The SEC has requested a pause in its lawsuit against Binance following leadership changes at the company. This signals a possible shift in the U.S. financial regulator's approach. The SEC originally sued Binance in 2023, alongside other regulators.
    Notably, actions by the CFTC and the Department of Justice led to the downfall of Changpeng Zhao and a record $4.3 billion fine for the exchange. The SEC’s lawsuit, which alleged Binance served U.S. customers through its international platform, is now expected to be paused for 60 days, according to a document filed by the SEC and Changpeng Zhao two days ago.

  4. Tether May Be Forced to Sell $9 Billion Worth of Bitcoin:
    With Donald Trump’s return to power, things are shifting in the U.S., including in the crypto space. Two legislative proposals target stablecoins, an asset class largely dominated by Tether, the company behind USDT.
    To comply with these proposed laws, Tether may need to liquidate $9 billion worth of Bitcoin. The bills introduce stricter reserve requirements for stablecoin issuers. Analysts at JPMorgan indicate that Tether (which controls the third-largest cryptocurrency by market cap) does not currently meet the reserve requirements outlined in the GENIUS Act and STABLE Act. Specifically, only 83% of Tether’s reserves comply with the GENIUS Act, while just 66% meet the STABLE Act’s standards. This means Tether would need to restructure its reserves, shifting towards more highly liquid assets such as U.S. Treasury bills.

  5. Washington moved quickly on crypto policy last week, with major regulatory changes, congressional hearings, and enforcement shifts. Acting CFTC Chair Caroline Pham restructured enforcement, prioritizing fraud over regulation-by-enforcement. The House investigated “Operation Choke Point 2.0,” as crypto firms struggle to maintain banking access. SEC Commissioner Hester Pierce launched a Crypto Task Force focused on clear guidance and fair enforcement. The Senate Banking Committee debated whether crypto firms face unfair debanking due to regulatory pressure. These developments suggest a growing push for clearer, more balanced crypto regulations in the U.S.

Traditional Finance:

  1. Grayscale Proposes a Cardano (ADA) ETF:
    Could Cardano (ADA) be the next cryptocurrency to have an ETF? Asset management firm Grayscale has submitted an application to the SEC. As with Grayscale’s other ETF projects, Coinbase Custody Trust Company will serve as the custodian, with BNY Mellon Asset Servicing as the administrator.

  2. $2 Billion: Goldman Sachs Continues Accumulating Crypto ETFs:
    Goldman Sachs continues to show a strong appetite for cryptocurrencies, increasing its crypto ETF holdings by 120% over the past quarter. Institutional investor interest in Bitcoin remains high, with Goldman Sachs’ ETF portfolio totaling $1.57 billion, the vast majority of which is invested in BlackRock’s Bitcoin ETF ($1.27 billion).

  3. Could Bitcoin See $23.5 Billion in New Inflows? VanEck Thinks So:
    As local Bitcoin reserves gain traction across the U.S., VanEck estimates that these initiatives could bring $23.5 billion in liquidity into the ecosystem.

  4. Barclays Invests $131 Million in BlackRock’s Bitcoin ETF:
    Institutional interest in Bitcoin continues to grow. British banking giant Barclays has entered the market by investing $131 million in BlackRock’s spot Bitcoin ETF. This move marks a significant milestone in institutional adoption and further legitimizes cryptocurrencies.

Tech News:

  1. Could Quantum Computers Unlock Satoshi Nakamoto’s Bitcoin? Paolo Ardoino Thinks So:
    Could quantum computing threaten Bitcoin? With its unprecedented computing power, it could potentially break cryptographic keys.
    While current quantum computers remain experimental and lack sufficient power, they could eventually challenge existing encryption methods, including Bitcoin addresses.
    According to Paolo Ardoino, even if quantum computing reaches this level, only lost addresses would be vulnerable. Active users could simply transfer their funds to quantum-resistant addresses to secure them. Older Bitcoin addresses would be most at risk, but newer ones, such as Taproot addresses, may already offer some protection.

  2. Unichain: Uniswap’s Layer 2 Mainnet Is Now Live:
    After unveiling its own Layer 2 network last fall, Uniswap (UNI) has officially launched the Unichain mainnet. With over 360,000 transactions recorded and 31,000+ wallets engaged, Unichain is off to a promising start.

  3. OpenSea Officially Launches Its SEA Token Airdrop and Opens Beta for Its V2 Platform:
    OpenSea has been working on a new platform for years, and now it has finally arrived with “OS2” and the SEA token.
    Key features of OS2:

    • Completely redesigned interface with advanced search tools

    • Integration of new blockchains to expand its ecosystem

    • Cross-chain purchasing, enabling asset trading across multiple blockchains without manual bridging

    • Marketplace aggregation for competitive pricing

    • Lower transaction fees to encourage adoption
      Currently, OpenSea supports 14 blockchains, including Apechain, Soneium, Berachain, and Flow.

  4. Cryptocurrency Payments Coming to X Before Year-End, Says Fireblocks:
    Crypto payments will be possible on X before the end of the year, according to Ran Goldi of Fireblocks.
    This aligns with Elon Musk’s vision for X Money, which is expected to launch in 2025 as part of the "Super App" initiative.

  5. Arbitrum achieved a decentralization milestone by enabling permissionless validation with its new fraud-proof protocol, BoLD (Bounded Liquidity Delay). Previously, only whitelisted validators could submit fraud proofs due to risks of delay attacks. As an optimistic rollup, Arbitrum uses fraud proofs to validate state transitions, but its old dispute process left it vulnerable to repeated delays. The BoLD upgrade allows parallel, time-bounded execution, ensuring dispute resolution in ~12 days. This mitigates delay attacks while creating strong economic disincentives for malicious validators.

Adoption:

  1. GameStop Could Create Its Own Bitcoin (BTC) Reserve:
    While GameStop has experimented with crypto in the past, the company is now considering creating a Bitcoin reserve. Whether this reserve will be substantial and long-term or just a marketing move remains to be seen. For now, the information is still speculative.

  2. Crypto Exchange Coinbase Has Doubled Its Revenue in 2024:
    Coinbase, one of the leading cryptocurrency exchanges, has announced record financial results for Q4 2024. Benefiting from a booming market and favorable macroeconomic conditions, the company saw a remarkable revenue increase, doubling its earnings year-over-year. This growth is mainly due to the surge in transaction revenues on its centralized exchange (CEX), which reached $1.6 billion for the quarter—up 172% from the previous period.

Partnerships / Investments:

  1. Tether Invests in Zengo Wallet to Boost USDT Adoption:
    Tether has invested in Zengo to expand USDT adoption and counter the growing influence of USDC. Zengo, a mobile wallet that simplifies crypto access by removing private key management, could become a vital tool for bringing USDT into millions of users' hands worldwide.

  2. Despite Price Decline, Strategy Buys Another $740 Million Worth of Bitcoin:
    Strategy continues its aggressive Bitcoin accumulation. Michael Saylor’s company has announced the purchase of an additional 7,633 BTC for a total of $740 million. This move reinforces Strategy’s position as the largest Bitcoin holder, bringing its reserves to 478,740 BTC.

  3. Ondo Partners With Trump’s WLFI Crypto Project to Democratize RWAs:
    World Liberty Financial (WLFI), the crypto project associated with the Trump family, has announced a partnership with Ondo, a major player in asset tokenization. WLFI plans to integrate tokenized real-world assets (RWAs) from Ondo’s future platform, aiming to democratize decentralized finance (DeFi)… and to protect the U.S. dollar’s status.
    In simple terms, Ondo seeks to allow people worldwide to invest in stocks, ETFs, and other assets using blockchain and tokenization, bringing interoperability and flexibility absent from traditional platforms. According to WLFI’s statement, “this initiative aims to facilitate borrowing, lending, and margin trading services for eligible users.”

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.