Token Chronicle - Week 3 February 2025

Top cryptos

Meme of the week

Market update: The market remains relatively stable this week, with BTC fluctuating between $94K and $99K, and some spikes on certain tokens (AI, Berachain, Story, etc.). However, overall, the market is awaiting developments in the economic and macro situation (trade wars, and the resolution of conflicts in Ukraine and Palestine, in particular). On one hand, BTC reserves are materializing, but FTX customers are beginning to receive refunds (in crypto), which could lead to resales and impact prices.

Main points this week:

International News:

1. Argentina opens investigation after the LIBRA memecoin scandal: After the collapse of LIBRA, the President of Argentina, Javier Milei, has ordered an investigation. The goal here is to shed light on the wrongdoings and possible crimes of each actor involved in the launch of the memecoin. This weekend, the LIBRA memecoin made headlines after its crash, with President Javier Milei briefly promoting it before deleting his tweet. Following this, speculations ran rampant regarding the extent of the President’s involvement, while it quickly became clear that a company named KIP Protocolo was behind this controversial launch.

2. One of Abu Dhabi’s sovereign wealth funds buys over $400 million in spot Bitcoin ETF: One of Abu Dhabi’s sovereign wealth funds has recently invested more than $400 million in a BlackRock Bitcoin spot ETF. This strategic purchase marks a new milestone in the adoption of Bitcoin by state institutions, confirming its emerging status as a global store of value.

3. Saudi Crown Prince's X account hacked to promote memecoins: The world of cryptocurrencies has once again been rocked by a scandal. On February 17, 2025, the official account of the Saudi Law Conference on X was compromised by hackers. They used the platform to promote fraudulent memecoins, allegedly associated with the Saudi government and Crown Prince Mohammed bin Salman. The hackers posted several tweets announcing the launch of cryptocurrencies purportedly backed by the Saudi government, including the Saudi Arabia Meme Coin (KSA) and the FALCON Meme Coin (FLCN).

4. Utah: A strategic Bitcoin reserve could be created before spring: While several U.S. states are considering strategic Bitcoin reserves, Utah is taking the lead. The bill H.B. 230, which has already been approved by the House, is now awaiting Senate review. If passed, Utah would become the first state to officially adopt Bitcoin as a strategic asset. If this bill is adopted, it would allow the state treasurer to invest up to 5% of public funds in digital assets like Bitcoin. The law would go into effect on May 7, 2025, making Utah the first U.S. state to adopt such a measure and the third public institution to do so, after El Salvador and Bhutan.

5. “The European Union has been very unfair to us” – Donald Trump prepares new tariffs on automobiles: Will European cars soon be taxed at 25%? That is Donald Trump’s plan, asserting that Europe must buy more from the U.S. or face soaring tariffs. This is another step in the global trade war initiated by the U.S. President upon taking office. Donald Trump announced on Tuesday that he would impose 25% tariffs on automobile imports but would wait until April to make a final decision. Just like the tariffs applied to Canada and Mexico, the delay is meant to force negotiations, particularly with the European Union. Beyond automobiles, the U.S. president also mentioned that semiconductors and pharmaceuticals will also be taxed, with tariffs of at least 25%. The exact date when these new tariffs will apply is still unknown.

6. $14 million in losses: illegal crypto mining costs Russia dearly: Cryptocurrency mining is regulated in Russia, but many illegal players have proliferated, using the national electricity grid. The energy company Rosseti claims that it has accounted for $14 million in losses solely from illegal mining activities for the year 2024. Last November, Russia completely banned cryptocurrency mining in certain territories due to electricity supply needs. However, this seemingly hasn’t dampened the enthusiasm of illegal miners, whose installations have been dismantled in recent weeks. According to Rosseti, over 130 cases of "illegal network connection" have been stopped, and 40 criminal proceedings are underway.

7. France could soon ban all cryptocurrency anonymity: France is considering banning cryptocurrency anonymity in an effort to combat money laundering. This proposed law, which has already been approved by the Senate, raises concerns about its impact on privacy. Users of Monero, Zcash, and mixing services could be automatically presumed guilty, disrupting blockchain usage. Adopted by the Senate earlier this month, the law will be voted on by the National Assembly on March 18, 2025. If it is passed as is, the law would result in the following changes: Users of anonymous cryptocurrencies like Monero or Zcash or mixing services like Tornado Cash would be automatically presumed guilty of money laundering; All transactions, deposits, withdrawals, transfers between digital asset service providers (PSAN), as well as purchases or sales of cryptocurrencies above €1,000, would be systematically reported to authorities.

8. Hashdex to launch the world’s first XRP ETF in Brazil: With approval from the local financial regulator, Hashdex will be able to launch the world’s first Ripple XRP ETF in Brazil. Regarding the potential approval of such an ETF in the United States, we revisited last week the predictions of Bloomberg analysts, who stated that a product on XRP would not be approved until the Securities and Exchange Commission (SEC) and Ripple have resolved their legal disputes.

9. The Czech National Bank sees the creation of a strategic Bitcoin reserve as a way to “strengthen”: Aleš Michl, Governor of the Czech National Bank, wants to diversify the country’s reserves by incorporating Bitcoin. Convinced of BTC’s potential, he believes this initiative could strengthen the financial stability of the Czech Republic.

10. South Korea’s Financial Services Commission (FSC) and Korea Financial Intelligence Unit (KFIU) have unveiled a roadmap for institutional crypto adoption, set to begin in 2025. The plan has two phases: first, allowing corporate crypto transactions for liquidation, and second, a pilot program for select institutions to trade crypto under strict regulations. Around 3,500 companies, excluding financial institutions, will qualify, requiring independent custodians, AML measures, and public disclosures. The FSC will later assess broader institutional access based on market conditions. This marks a policy shift from Korea’s restrictive stance since the 2017 crypto boom.

11. Italy’s central bank governor, Fabio Panetta, warned about rising risks in the crypto sector and the regulatory gap between the EU and the U.S. Speaking at the 31st Assiom Forex Congress, he called for stronger safeguards against financial crime, cybersecurity threats, and liquidity risks. The Banca d’Italia and Consob are working with crypto service providers to enhance protections. Panetta highlighted the EU’s unified MiCA framework, contrasting it with the U.S.’s fragmented approach. He cautioned that regulatory inconsistencies could enable arbitrage, posing risks to financial stability.

12. Altvest Capital (ALV) became the first listed company in Africa to adopt bitcoin (BTC) as a strategic treasury asset. The South African alternative investment firm bought one BTC, following the footsteps of Strategy and other, predominantly U.S.-listed, public firms to add the largest cryptocurrency to its balance sheet. The firm said the decision was "focused on preserving shareholder value, mitigating currency depreciation risks, and gaining exposure to a globally recognized store of value."

13. Hong Kong’s Securities and Futures Commission (SFC) unveiled a crypto regulation roadmap to strengthen its position as a global crypto hub while ensuring investor protections. The plan includes 12 initiatives under five pillars—Access, Safeguards, Product, Infrastructure, and Relationships (ASPIRe). Key measures include a new custody regime, potential OTC trading regulations, revised margin rules, and a framework for derivatives. The SFC is also considering allowing staking, lending, and borrowing services. The overarching goal is to boost liquidity, streamline compliance, and enhance financial infrastructure to attract global capital.

14. President Trump’s proposed audit of Fort Knox’s gold reserves could spark increased scrutiny of gold holdings, potentially shifting investor sentiment toward bitcoin, according to Copper’s Head of Research, Fadi Aboualfa. If gold ETFs fail to verify full backing, they may trade at a discount, triggering a liquidity drain and digital asset reallocations. Aboualfa noted that this push for transparency aligns with growing interest in a bitcoin strategic reserve. Recent concerns over gold supply intensified as large volumes moved from London to the U.S., amid speculation Trump may reprice U.S. gold reserves.

15. South Korea to Start Lifting Ban on Corporations Trading Crypto: South Korea's Financial Services Commission announced that professional investors and listed companies will be able to buy and sell crypto, and non-profit organizations can sell virtual assets they're holding, overturning a previous ban on both types of activity.

Compliance/Regulation/Justice/Hack:

1. FTX refunds start on February 18: what impact for the crypto market? After a relatively short period of just over 2 years, the refund process for the crypto exchange FTX begins. On the part of former clients, it is a mix of joy and bitterness: they are recovering their investment, but must give up on the profits they could have made. $9 billion are being poured into the markets as a result of the first wave of refunds following the FTX platform’s crash. What will the impact be on the market? Two possibilities exist. First, the $9 billion distributed in the coming hours via Kraken and Bitgo platforms could be immediately reinvested in the market. A process made easier since the money will already be on exchanges. It is likely that this represents a significant sum for these two exchanges, whose revenues largely depend on transaction fees. The second possibility is that the money from this first wave of refunds could permanently exit the world of cryptocurrencies. Indeed, losing several tens of thousands of dollars abruptly, especially when one is a small investor, leaves a bitter memory.

2. Mass crypto theft on the Abstract blockchain: what happened? The Abstract blockchain was recently launched with the promise of making decentralized applications more accessible. Today, Abstract Chain is being called out by many of its users, who found their wallets emptied of cryptocurrencies. A sad day for Abstract, the Layer 2 of Igloo Inc., the company behind the successful NFT collection Pudgy Penguins. Many users of this blockchain have complained that their crypto wallets were suddenly emptied, and this happened without having visited any suspicious sites or granted any unwarranted permissions.

3. Binance.US is back in the United States: is the SEC's crusade over? After nearly two years of isolation, Binance.US, the American subsidiary of the global crypto giant Binance, announced today that its services are fully restored in USD. Users can once again deposit and withdraw funds in USD via bank transfers, a critical move for a platform that, since 2023, had only operated in crypto mode, losing its market share as a result.

4. eToro receives MiCA approval and strengthens its presence in Europe: The broker eToro has just received its MiCA license, allowing it to offer its entire range of products within the European Union. The trading platform eToro received regulatory approval from the Cyprus Securities and Exchange Commission (CySEC) under the European MiCA regulation, which recently came into effect, allowing it to provide, among other things, crypto trading and custody services across the EU. This certification also grants it access to markets in Iceland, Liechtenstein, and Norway, even though these countries are not part of the EU. The MiCA regulation, fully enforced since the end of December, requires crypto businesses to obtain a Digital Asset Service Provider (CASP) license, ensuring a unified regulatory framework across the 27 member states.

5. The European Central Bank (ECB) wants a blockchain-based payment system: The ECB is taking a new step in the evolution of central bank digital currency (CBDC) interbank payments. In a recent announcement, it unveiled a project to enable the settlement of CBDC transactions on blockchain within a secure and regulated framework. Initially, the Eurosystem will develop and implement a platform interoperable with TARGET Services (the interbank settlement system used by the ECB and eurozone central banks) to ensure safe and efficient settlement of blockchain-based transactions. The precise timeline for this implementation will be communicated later. The ECB will then explore a long-term integrated solution, which will include international transaction settlements, particularly for foreign exchange operations.

6. Nigeria sues Binance for $81.5 billion in losses: The conflict between Nigeria and Binance has reached a new height with an unprecedented legal complaint. Accusing the platform of tax evasion, money laundering, and manipulation of the foreign exchange market, Nigerian authorities are demanding staggering compensation. This legal battle could reshape the regulatory landscape for cryptocurrencies in Africa and beyond. The central element of the accusation lies in the idea that Binance contributed to the devaluation of the naira, the local currency, causing economic losses estimated at $79.5 billion. In addition to these losses, Nigeria is also demanding $2 billion in back taxes. This is not the first time Binance has come under scrutiny in Nigeria. In 2024, the country had already accused the company of tax evasion and illegal currency manipulation.

7. Crypto exchange Bybit hacked for $1.46 billion, setting a sad record: This afternoon, the crypto exchange Bybit was hit by a $1.46 billion hack. The hack was confirmed by the exchange’s CEO. It is the largest hack in cryptocurrency history. According to 0xngmi, a developer from DefiLlama, either "the hacker installed a virus on the computer or the signers' browser, which replaced the transaction with a malicious version before sending it to the hardware wallet," or "the Safe interface was hacked, displaying a legitimate transaction but actually sending a different transaction to the wallet." Analyzing on-chain transfers, it appears that the stolen funds were mostly in mETH and sETH. These were all swapped for Ether on various decentralized exchanges, a process that leaves little doubt. Despite more than 350,000 withdrawal requests following the $1.46 billion hack, Bybit was able to process all the withdrawals. Unsurprisingly, the number of withdrawal requests skyrocketed after the hack. Bybit recorded over 350,000 requests, which caused congestion on the platform, raising fears of a liquidity crisis. However, that wasn’t the case. CEO Ben Zhou confirmed on X that all requests had been processed and the situation had returned to normal. According to DefiLlama data, the platform's funds dropped from $16.5 billion to $11.61 billion between yesterday and today.

8. The SEC will drop its lawsuit against Coinbase: After a year and a half of legal battles, Coinbase has informed that the U.S. Securities and Exchange Commission (SEC) is about to drop its lawsuit. This could mark a turning point in U.S. regulation. This news should still be taken with some caution, but this shift seems logical given the SEC’s radical change in posture since January 20. At that point, the SEC hinted that some lawsuits might be dropped, which also ties into the recent request to pause the lawsuit against Binance for 60 days.

9. The U.S. Senate confirmed Howard Lutnick as Secretary of Commerce with a 51-45 vote. Lutnick, former CEO of Cantor Fitzgerald and a vocal bitcoin supporter, has backed free global bitcoin trading. He also defended Tether during a Senate hearing on stablecoin reserves and illicit finance concerns. As Commerce Secretary, Lutnick will focus on job creation, economic growth, and trade policy under President Trump.

Traditional Finance:

1. Standard Chartered to launch a stablecoin with Animoca Brands and HKT: Standard Chartered has revealed plans to launch a new dollar-backed stablecoin. The partnership with Animoca Brands and HKT is currently in the regulatory approval phase, and it is expected that the new stablecoin will be operational in Hong Kong, adding to the existing USD-backed tokens in circulation.

2. Bitcoin financial services firm to list on the Nasdaq: Fold, a Bitcoin financial services company, will list on Nasdaq through a merger with FTAC Emerald Acquisition Corp, a special purpose acquisition company (SPAC). This represents another milestone in Bitcoin adoption by traditional finance.

3. SG-FORGE's EURCV stablecoin to launch on Stellar (XLM): SG-FORGE, the cryptocurrency arm of the Société Générale group, is planning to deploy its EURCV stablecoin on Stellar. The move is a strategic one for Stellar as it is highly adaptable, fast, and offers low transaction fees for cross-border transactions.

4. Analysts at Bernstein say the "next leg of the bitcoin bull market is loading," driven by policy shifts and institutional adoption. Key catalysts include a U.S. Crypto Task Force proposal for a National Bitcoin Reserve and potential sovereign wealth fund investments. A reserve could be funded by the Fed or Treasury but would need legislative approval, possibly backed by debt or gold sales. Bitcoin seized by the U.S. government, worth $20 billion, could also be included, sparking a global adoption race. Analysts see bitcoin as the "clear challenger to gold," with asymmetric upside potential.

5. The SEC acknowledged 19b-4 filings from Nasdaq for CoinShares' spot Litecoin and XRP ETFs, following similar proposals from 21Shares, Bitwise, Grayscale, and Canary Capital. A 21-day comment period is now open, initiating the approval process. Bloomberg ETF analysts estimate a 90% approval chance for Litecoin ETFs and 65% for XRP. Meanwhile, Nasdaq has proposed a new rule to facilitate the listing and trading of digital asset-based investment products.

6. Institutional investors increased their exposure to Strategy (formerly MicroStrategy) in Q4 2024, per 13F filings. The firm, often seen as a bitcoin proxy, now holds 478,740 BTC worth over $46 billion. Institutional ownership of MSTR stock stands at $34 billion, while options exposure has surged to $37 billion, more than doubling from the prior quarter. Vanguard leads with 16.3 million shares, followed by Capital International Investors (12.5M) and BlackRock (11.2M).

Tech News:

1. Tether co-founder launches Pi Protocol to rival USDT: The co-founder of Tether has announced the launch of Pi Protocol, which aims to rival the USDT stablecoin. It plans to launch in the second half of 2025 and will initially launch on the Ethereum and Solana networks.

2. Monad blockchain launches public testnet: Monad, a Layer 1 blockchain compatible with Ethereum Virtual Machine (EVM), has launched its public testnet. The blockchain can process up to 10,000 transactions per second (TPS).

3. Hyperliquid’s HyperEVM goes live: Hyperliquid has launched its HyperEVM on its Layer 1 blockchain, bringing Ethereum Virtual Machine (EVM) compatibility to the network, which allows for the transfer of its native HYPE token.

4. Elon Musk to raise $44 billion with X: Elon Musk aims to raise $44 billion for X (formerly known as Twitter), part of which will be used to pay down the platform's debt, while the rest will fund further AI integrations and payment systems development.

5. Michael Egorov, founder of Curve Finance, is launching a new project called Yield Basis, raising $5 million at a $50 million valuation. The project sold 10% of its "YB" token supply (100 million out of 1 billion) with a six-month cliff and two-year vesting. The remaining supply allocates 30% to community incentives, 25% to the team, and 15% for development. Investor interest was "huge," with the round oversubscribed by 15x. Yield Basis uses Curve's crvUSD stablecoin to help BTC and ETH holders earn optimized yield while reducing impermanent loss. Egorov is coding, with audits planned before launch.

6. Story Protocol launched its intellectual property-focused blockchain and $IP token last week, positioning itself as the "world's intellectual property network." The platform enables users to register IP, track its usage, and engage in governance via the $IP token. Developer PIP Labs raised $80 million in a Series B round led by a16z, bringing total funding to $140 million. Story aims to bridge blockchain and AI, ensuring fair compensation for data used in AI training. The mainnet launch coincided with the first token unlock, releasing 25% of the initial 1 billion $IP supply.

7. Ethereum developers have launched the Open Intents Framework (OIF) to simplify and standardize cross-chain token transfers. Backed by the Ethereum Foundation and 25 projects, including Arbitrum, Optimism, and ZKsync, OIF aims to scale “intents” across Ethereum. Intents let users specify transaction goals for intermediaries to fulfill. The framework builds on standards like ERC-7683, introduced by Uniswap and Across, to improve interoperability. OIF seeks to make intent-based transactions more efficient, permissionless, and widely accessible.

8. MANSA raised $10 million in funding, led by Tether, to enhance its cross-border payment services. The $3 million pre-seed round saw participation from Polymorphic Capital, Octerra Capital, Faculty Group, and Trive Digital. An additional $7 million in liquidity funding came from institutional investors. MANSA leverages USDT for onchain liquidity, aiming to improve accessibility and efficiency in global payments. With this capital, the company plans to expand into Latin America and Southeast Asia to address liquidity challenges.

Adoption:

1. Coinbase becomes the official sponsor of Aston Martin F1 team: Coinbase has entered into a strategic partnership with Aston Martin Formula 1 team, becoming the official sponsor of the team in a deal paid entirely in USDC.

2. Strategy to issue $2 billion in bonds to buy Bitcoin: The investment firm Strategy plans to issue $2 billion in bonds to fund the purchase of additional Bitcoin, strengthening its position in the cryptocurrency market.

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.