Token Chronicle - Week 3 March 2025

Top cryptos

Meme of the week

Market Sentiment:

Market update: Low volatility for BTC this week with a slight improvement, reaching $85K this morning. Jerome Powell’s (FED) speech reassured the market somewhat, confirming interest rate cuts for the year and maintaining the current strategy. Additionally, speculation about a potential pro-crypto tax reform in the U.S. has further fueled investor interest, though the trend remains to be confirmed.

The Federal Reserve (Fed) decided not to raise interest rates, keeping them at 4.5%. However, Powell's remarks were perceived as encouraging by the markets, reflecting confidence in their stability. He also announced a slowdown in the Fed’s balance sheet reduction, lowering the monthly cap on Treasury securities buybacks from $25 billion to $5 billion—an accommodative measure.

Meanwhile, the EU is concerned about U.S. policies (tariffs, military decisions, and crypto regulations) and has revised its growth forecasts downward.

Main points this week:

International News:

1. OECD Lowers Growth Forecasts Due to U.S. Economic Policy:
   The Organization for Economic Cooperation and Development (OECD) has released an update on its global growth forecasts, predicting a slower-than-expected expansion, particularly in the United States. Last December, the OECD projected global growth at around 3.3%, but it has now lowered its estimates, expecting only 3.1% growth by the end of 2025. The economic policies of President Donald Trump have led the institution to revise its forecasts downward, both for the U.S. and other global economies. The OECD also highlights geopolitical uncertainties.

2. $9.5 Trillion: U.S. Chamber of Commerce Sounds Alarm on Trade War with Europe:
   The economic policies of President Donald Trump pose a significant threat to the U.S., according to a report from the American Chamber of Commerce in Europe (AmCham EU). Representing 160 members, including major companies like Apple, Visa, and ExxonMobil, the report criticizes Trump's approach, warning that the U.S. risks facing “firm and proportionate countermeasures,” similar to those recently imposed by the European Union. While tariffs on steel and aluminum may seem beneficial initially, the report warns that they could ultimately raise costs for American consumers, as many U.S. products depend on these materials.

3. North Korea Becomes One of the Largest Bitcoin Holders in the World:
   North Korea has surpassed countries like Bhutan and El Salvador in Bitcoin holdings, primarily due to cybercrime activities by the Lazarus hacker group. Lazarus, supported by the Pyongyang regime, has been behind several major cyberattacks, including:

   • $308 million stolen from Japanese firm DMM Bitcoin in 2024.

   • $615 million stolen from the Ronin network in 2022.

   • Over $1.34 billion in cryptocurrency thefts in 2024, accounting for 61% of all stolen crypto assets that year.

4. Europe’s Firm Stance Against Russia and German Military Investment Boost European Stock Markets:
   European stock markets (CAC 40, DAX, etc.) rebounded after Emmanuel Macron and Olaf Scholz firmly rejected Russia’s demands, reaffirming their commitment to supporting Ukraine. The two leaders stated: “Ukraine can count on us, on Europe, and we will not abandon it.” Additionally, Germany is moving toward unprecedented military funding.

5. NATO Urges Europe and Canada to Increase Military Capacity by 30%:
   In response to a growing Russian threat and U.S. pressure, NATO is calling for a historic military buildup among its European and Canadian allies to strengthen the alliance’s deterrence capabilities.

6. Brazil Proposes BRICS+ Use Blockchain for International Payments:
   Rather than creating a common currency, BRICS+ nations aim to leverage blockchain to streamline transactions and reduce reliance on the U.S. dollar. The Brazilian government emphasizes that this move is not intended as a challenge to the dollar but as a practical measure to improve efficiency and reduce trade costs. However, Donald Trump has warned that tariffs could be imposed if BRICS+ moves away from the dollar.

7. A U.S. Congressman Claims the U.S. Will Buy 1 Million Bitcoins Soon:
   Congressman and longtime crypto advocate Tom Emmer made headlines at the Digital Asset Summit, asserting that the U.S. will purchase 1 million Bitcoins over the next five years. To align with Donald Trump’s directive of not using taxpayer money, the purchase would be financed through Federal Reserve surpluses and the revaluation of U.S. Treasury gold certificates.

8. The Bank of Korea rejected the idea of a bitcoin reserve, citing high volatility and non-compliance with IMF guidelines. The central bank emphasized liquidity and risk control in foreign exchange reserves. This contrasts with President Trump’s push for a U.S. bitcoin reserve and the Czech central bank’s exploration of bitcoin investments. The response came from a National Assembly finance committee inquiry.

9. Dubai Financial Services Authority (DFSA) has launched the Tokenization Regulatory Sandbox, allowing firms to test and develop tokenized investment products in the Dubai International Financial Centre (DIFC). Companies can apply until April 24, 2025, under DFSA’s Investment Token Framework. In another milestone, DFSA granted Ripple a license to offer regulated crypto payments, marking it as the first blockchain-enabled payments provider in DIFC. His Excellency Arif Amiri highlighted Ripple’s role in Dubai’s digital economy and its growth potential. Dubai continues to strengthen its position as a global leader in digital assets through regulatory innovation and licensing initiatives.

10. Japan, once the world’s largest crypto market, is making a comeback after losing dominance due to major exchange hacks and strict regulations. Policymakers are pushing for tax reforms that could lower crypto tax rates from 55% to 20%, aiming to attract investors. A new stablecoin bill under review may expand collateral options and ease brokerage regulations, enhancing market liquidity. These changes signal renewed confidence from both institutional and retail investors. With strong policy support, Japan is positioning itself as a leader in Bitcoin Layer 2 adoption and broader crypto innovation across Asia.

11. Trump administration officials are considering a proposal to rebrand USAID and integrate blockchain technology into its procurement processes for increased transparency and security. The plan, reportedly circulating within the State Department, suggests using blockchain to trace aid distributions but lacks details on the specific technology type. It remains unclear whether Secretary of State Marco Rubio or senior officials have approved the proposal, which may require congressional approval. The initiative follows Elon Musk's DOGE unit exploring blockchain adoption for federal systems and recommending USAID budget cuts.

Regulation, Compliance & Legal Affairs:

1. Class-Action Lawsuit Filed Against Libra’s Founders in the U.S.:
   The Libra scandal has led to a class-action lawsuit against the cryptocurrency’s creators, including Hayden Davis. According to legal filings by Burwick Law, the lawsuit accuses Kelsier Ventures (Davis’s company), KIP Protocol, and Meteora of fraudulently inflating Libra’s price through a liquidity pool before siphoning funds, causing a 94% crash within hours.

2. SEC Drops Lawsuit Against Ripple; XRP Surges Past $2.5:
   After years of legal battles, the U.S. Securities and Exchange Commission (SEC) has reportedly ended its case against Ripple, according to CEO Brad Garlinghouse. The news has led to a significant surge in XRP’s value, exceeding $2.5.

3. Acting SEC Chair Mark Uyeda has ordered a review of a proposed rule tightening crypto custody requirements for investment advisers. The rule, introduced under the Biden administration, mandates storing crypto with qualified custodians. Uyeda’s move reflects a policy shift under the Trump administration. Last week, he also called for a review of a rule that could impact decentralized crypto projects.

4. OKX has temporarily suspended its decentralized exchange aggregator amid EU regulatory scrutiny over alleged laundering of Bybit hack funds. OKX executives deny the claims, calling them misleading, and reaffirm their commitment to financial security. The exchange is implementing new tagging and security upgrades to enhance transparency and safety.

5. New Zealand Police's updated National Risk Assessment (NRA) identifies Virtual Asset Service Providers (VASPs) as a high-risk sector for financial crime, alongside banks and money transfer services. Since 2018, authorities have restrained NZD 33.8 million ($20.6M) in crypto assets, with fraud, drug trade, and transnational money laundering being key concerns. Compliance gaps include weak customer due diligence and account monitoring, with only 5 out of 25 registered VASPs filing Suspicious Activity Reports (SARs). The NRA also warns of risks from crypto ATMs and unlicensed peer-to-peer traders, calling for urgent regulatory action.

6. The U.S. Treasury has lifted sanctions on crypto mixer Tornado Cash after an appeals court ruled that OFAC overstepped its authority in November 2024. A Texas District Court later ordered the reversal of the sanctions in January. Originally sanctioned in 2022, Tornado Cash was accused of facilitating illicit transactions, including laundering funds for North Korea’s Lazarus Group. Despite ongoing concerns over cyber threats, Tornado Cash and its wallet addresses have been removed from the OFAC SDN list. Treasury Secretary Scott Bessent emphasized the need to balance financial innovation with security against illicit activities.

7. The U.S. Securities and Exchange Commission (SEC) is actively working with the crypto industry to develop a policy for overseeing digital assets transactions, according to Commissioner Hester Peirce, head of the agency's crypto task force. The SEC is considering whether certain areas of the crypto sector could be defined as securities, despite recent policy statements suggesting otherwise. A panel discussion at the SEC's first crypto-focused roundtable included securities attorneys from the crypto sector discussing the challenges they face in advising companies.

Traditional Finance:

1. Goldman Sachs’ Stance on Crypto:
   In its annual shareholder letter, Goldman Sachs addressed cryptocurrencies, acknowledging the rise of blockchain technology and the growing crypto market. However, the bank also highlighted concerns about the industry’s vulnerability to cyberattacks and regulatory risks.

2. Bank of France Governor Warns of U.S. Crypto Deregulation:
   François Villeroy de Galhau, the Governor of the Bank of France, expressed concerns about Donald Trump’s deregulation of the crypto industry. However, he believes the European bloc is strong enough to withstand potential financial disruptions.

3. Solana Futures Trading Launches on the World’s Largest Derivatives Exchange:
   On Monday, Solana (SOL) futures trading officially debuted on the Chicago Mercantile Exchange (CME), marking a major milestone for the cryptocurrency’s integration into traditional finance. CME now offers two contract sizes: one for 25 SOL and another for 500 SOL.

4. Tesla’s Market Collapse: “No Brand Has Lost Value This Fast,” Says JPMorgan:
   Tesla is facing an unprecedented crisis, with its stock (TSLA) losing over 40% of its value since the beginning of 2025. JPMorgan analyst Ryan Brinkman attributes this to declining consumer demand, partly due to CEO Elon Musk’s tarnished reputation.

5. 83% of Institutional Investors Plan to Increase Crypto Holdings in 2025:
   A study by Coinbase and EY-Parthenon reveals that 83% of institutional investors intend to increase their cryptocurrency allocations this year, driven by Bitcoin ETFs, stablecoins, and DeFi growth. However, concerns remain over evolving regulations (52%), volatility (47%), and security risks (33%).

6. Trump Allies Plan to Launch a Publicly Traded Crypto Company:
   Executives from Trump Media & Technology Group (TMTG) are preparing to take a crypto company public via Renatus Tactical Acquisition Corp I, a SPAC (Special-Purpose Acquisition Company). The SEC filing indicates they aim to raise $179 million to acquire a crypto firm.

7. Standard Chartered cut its 2025 ether price target from $10,000 to $4,000, citing Layer 2 dominance, especially Base. Analyst Geoffrey Kendrick claims Base has removed $50 billion from Ethereum’s market cap by diverting fees from Layer 1. He suggests taxing Layer 2 "super-profits" but sees it as unlikely. Kendrick argues upgrades like The Merge and Dencun have hurt Ethereum’s value. He predicts ether could reach $7,500 by 2028-2029 but expects ETH/BTC to keep declining.

8. Canary Capital has filed with the SEC to launch a Sui (SUI) ETF, adding to its recent applications for DOGE, SOL, and XRP ETFs. Meanwhile, Trump-affiliated DeFi platform World Liberty Financial announced plans to include Sui assets in its token reserve.

9. Hashdex is looking to add LTC, XRP, ADA, LINK, AVAX, UNI and SOL to its U.S.-based crypto ETF. The amendment would diversify the fund beyond its current bitcoin-heavy portfolio. A similar Hashdex ETF in Bermuda already tracks a broader basket of cryptocurrencies.

10. Bernstein analysts believe the crypto market is still in its early stages and has significant growth potential, contrary to claims that it has already peaked. They predict bitcoin could reach $200,000 by the end of 2025, though macroeconomic uncertainties and potential disruptions from Trump's policies could extend the bull cycle into 2026. The analysts also initiated coverage of Coinbase with an "outperform" rating, setting a $310 price target, representing a 69% upside. Their bullish outlook is supported by a more favorable U.S. regulatory environment for crypto.

Tech News:

1. MegaETH Layer 2 Launches Testnet, Could Be a Game-Changer for Ethereum:
   A highly anticipated Ethereum Layer 2 solution, MegaETH, has launched its testnet. Unlike existing Layer 2s, MegaETH claims to process 20,000 transactions per second with sub-10ms finality.

2. Crypto.com shocked the market by increasing its $CRO token supply from 30 billion to 100 billion, reversing a previous token burn. Initially, the majority of voters opposed the change, but whales intervened at the last minute with 3.2 billion CRO, flipping the vote to 61.18% in favor. The expansion creates a $5.6 billion "Cronos Strategic Reserve" aimed at funding development and tackling the U.S. crypto market. However, traders reacted negatively, dumping CRO and causing an 11.27% price drop overnight. Critics slammed the move as a centralization play, arguing it undermines the scarcity-based value of the token. The decision has fueled distrust within the community, with many questioning Cronos' long-term commitment to decentralization.

3. Ethereum developers launched a new test network, Hoodi, this week that will be used to carry out the blockchain's upcoming “Pectra” upgrade. Pectra will go live on Hoodi on March 26, and if all goes well, the long-awaited upgrade will proceed to Ethereum's mainnet roughly 30 days later, according to the network's core developers. Hoodi was created following faulty Pectra tests on Ethereum’s other testnets, Holesky and Sepolia, which failed to finalize properly due to problems with how they were configured. Test networks like Holesky, Sepolia, and Hoodi aim to mimic the main Ethereum network — allowing developers the opportunity to test out code changes or major upgrades like Pectra in a low-stakes environment before deploying them to the mainnet.

Crypto Adoption:

1. $300 Million in Bitcoin Bought in 24 Hours by Strategy, Metaplanet, ETFs, and El Salvador:
   A massive $300 million Bitcoin purchase by institutional players could signal the start of a new bullish phase in the crypto market.

2. Crypto Firms Seek Banking Licenses Under Trump Administration:
   With Donald Trump’s regulatory policies creating an opportunity, several fintech and crypto firms are looking to obtain banking charters, which would enhance their legitimacy and reduce financing costs. Key players include:

   • Kraken: Holds a special Wyoming banking charter since 2020.

   • Anchorage Digital Bank: First crypto firm to obtain a national banking charter in 2021.

   • Nexo: Acquired a stake in a federal bank-holding company in 2022.

   • Paxos & Protego: Currently applying for charters.

   Despite favorable political conditions, these firms must still meet strict anti-money laundering (AML) and Bank Secrecy Act compliance requirements.

3. North Carolina Proposes Investing 10% of Public Funds in Bitcoin:
   The SB327 bill, introduced in the North Carolina Senate on March 19, 2025, would allow the state to allocate up to 10% of its $9.5 billion general fund into Bitcoin, amounting to a potential $950 million investment. Supporters argue this would diversify state finances beyond traditional bonds and tax revenues.

4. Strategy has upsized its STRF perpetual preferred stock offering from $500 million to $722.5 million to acquire more bitcoin. The firm will sell 8.5 million STRF shares at $85 each, with the sale closing on March 25 and expected net proceeds of $711.2 million. This follows its broader plan to raise up to $21 billion through STRK stock and $42 billion in other securities. Strategy currently holds 499,226 BTC, worth over $41 billion, at an average price of $66,360 per bitcoin. Some investors remain wary of the company’s premium-to-NAV valuation and aggressive bitcoin acquisition strategy.

Funding & Partnerships:

1. Web3 workflow protocol developer Halliday secured $20 million in a Series A round led by a16z crypto, with participation from Avalanche Blizzard Fund, Credibly Neutral, and others. This brings its total funding to $26 million. Halliday focuses on simplifying smart contract creation by enabling developers to delegate workflows to autonomous systems. The new funding will support team expansion beyond its current 17 employees and further development of its workflow protocol and Halliday Payments application. The company aims to enhance efficiency in decentralized applications by streamlining complex blockchain interactions.

2. Artificial intelligence (AI)-focused blockchain protocol Halliday said it raised $20 million to help fund development of its Agentic Workflow Protocol (AWP), which aims to speed development of decentralized finance (DeFi) applications and avoid the need for programmers to write smart contracts. The Series A funding round was led by venture capital giant Andreessen Horowitz's (a16z) crypto arm. "Our mission is to pioneer the software era of blockchain, enabling developers to build applications in hours, not years," Halliday said in an emailed announcement.

3. Top venture capital firms, including Sequoia Capital, Ribbit, and Benchmark, have invested over $400 million in Toncoin, the native cryptocurrency of the TON blockchain. Other backers include Vy Capital, Draper Associates, and CoinFund, highlighting growing institutional confidence in TON’s ecosystem. The blockchain is gaining traction, especially within Telegram, which boasts 1 billion users and hosts mini-app games powered by Toncoin. Pantera Capital and Animoca Brands have also shown strong interest, with multiple investments in the past year. TON now claims over 40 million active users and 121 million unique Toncoin holders, signaling rapid adoption and expansion.

4. Kraken is acquiring CFTC-registered futures platform NinjaTrader for $1.5 billion, marking the biggest crypto-traditional finance deal to date. This move supports Kraken’s expansion into multi-asset trading, including equities and payments. Co-CEO Arjun Sethi calls it the first step toward an institutional-grade platform where "any asset can be traded, anytime." The acquisition, expected to close in the first half of 2025, will give Kraken access to U.S. crypto futures while enabling NinjaTrader’s expansion into the U.K., EU, and Australia.

5. Coinbase is in advanced discussions with leading global crypto derivatives exchange Deribit, reports Bloomberg. Deribit earlier this year was reported to be valued in the $4 billion to $5 billion range. CoinDesk earlier reported that Kraken was kicking the tires on Deribit.

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.