Mid-Week Roundup (Jan 27th – Jan 29th)

Trump Media Launches Fintech Brand with Bitcoin and Crypto Focus

Background

Trump Media and Technology Group (TMTG) is expanding into the financial services sector with the launch of its new fintech brand, Truth.Fi, which could soon invest in Bitcoin and other cryptocurrencies. This move is part of a broader strategy to diversify and offer financial products to American patriots who are concerned about censorship, debanking, and privacy violations.

Key Points

•  Truth.Fi's Bitcoin Investment Plans – The new Truth.Fi brand will hold $250 million in cash and may invest in Bitcoin, cryptocurrencies, and crypto-related securities. The cash will be custodied by Charles Schwab, which, unlike regular customers, allows limited exposure to crypto assets.
• Charles Schwab’s Crypto Limitations – While Charles Schwab offers crypto exchange-traded products and futures contracts, it does not allow direct buying or selling of individual cryptocurrencies such as Bitcoin or Ethereum for its general customers.
• TMTG’s Vision – Devin Nunes, CEO of TMTG, emphasized that Truth.Fi’s goal is to create American-first investment vehicles to protect against censorship, debanking, and privacy issues often associated with big tech and woke corporations.
• Trump's Past Crypto Promises – Trump has voiced support for the crypto industry, previously suggesting the establishment of a Bitcoin reserve and aiming to reduce regulations around digital assets. His media arm’s push into fintech aligns with his ongoing efforts to engage with digital asset owners.

Key Takeaway

Truth.Fi’s launch marks a significant expansion of Trump Media’s influence into financial services, with a clear focus on Bitcoin and cryptocurrencies. This move could further solidify Trump’s connection with the crypto community and provide alternative investment options for those wary of traditional financial systems.
 

OpenSea’s OS2 XP Rewards Program Sparks Airdrop Speculation

Background

OpenSea, one of the largest NFT marketplaces, has launched a beta version of its new platform, OS2, built from the ground up. However, access is restricted to Gemesis NFT holders, leaving many long-time users frustrated.

Key Points

• Limited Access Causes Backlash – The OS2 beta is available only to approximately 50,000 Gemesis NFT holders, excluding other traders, including those with high trading volumes. This has led to frustration among veteran users who feel sidelined.
• New XP Rewards System Introduced – OpenSea has integrated a loyalty program called XP (experience points), designed to reward users for listing NFTs exclusively on OpenSea, incentivizing platform engagement.
• Airdrop Speculation Grows – While OpenSea has not officially announced a token, the company recently registered a foundation in the Cayman Islands, fueling speculation of a future airdrop, a strategy previously used by competitors Blur and Magic Eden.
• No Retroactive XP for Past Users – The XP system currently only applies to new activities during the beta phase, meaning no points were granted retroactively to past OpenSea users. However, CEO Devin Finzer reassured the community that early adopters will not be overlooked.

Key Takeaway

OpenSea’s OS2 XP system is driving speculation about a potential token airdrop, but limited beta access has sparked backlash. The NFT community is closely watching how OpenSea will address concerns and whether an airdrop will materialize.

AI DAO ai16z Rebrands to ElizaOS to Avoid Andreessen Horowitz Confusion

Background

AI decentralized autonomous organization (DAO) ai16z has rebranded to ElizaOS following concerns that its name was too similar to tech venture capital firm Andreessen Horowitz (a16z). The decision aims to eliminate any brand confusion and position the project for future growth.

Key Points

•  Rebrand Announced by Founder – On Jan. 28, Eliza Labs founder Shaw Walters confirmed the name change, citing the project’s expansion into new markets and development of core technology.
• Origin and Growth of ai16z – Originally launched in October 2024, ai16z began as a “playful reference” and aimed to raise $75,000 to build an autonomous investor. However, it rapidly grew into one of the largest AI-focused DAOs in the space.
• Addressing Confusion with a16z – The similarity between ai16z and Andreessen Horowitz (a16z) led to misunderstandings, prompting a formal request from a16z’s Chris Dixon for a name change.
• Future Development with ElizaOS – The DAO remains focused on AI-powered venture capital and has launched ElizaOS, an open-source platform on Solana for AI agents and simulations. Walters also teased Eliza v2, calling it “the most feature-rich agent framework ever created.”
• Token Decline Amid AI Market Downturn – Despite the rebrand, the ai16z token fell over 12% in 24 hours, dropping to $0.56. The broader AI crypto market has also suffered, shrinking 3.5% to a total valuation of $37 billion, driven by investor concerns over DeepSeek’s AI advancements.

Key Takeaway

The ElizaOS rebrand marks a new chapter for the AI DAO, distancing it from Andreessen Horowitz while focusing on AI-powered VC innovations. However, its token struggles amid a broader AI crypto market downturn.

Binance Founder CZ’s YZi Labs Invests $16M in Token Distribution Platform Sign

Background

YZi Labs, formerly Binance Labs, has made its first investment since rebranding, leading a $16 million funding round for Sign, a blockchain-based token distribution infrastructure provider. The move aligns with YZi Labs’ expanded vision beyond crypto into AI and biotech.

Key Points

•  $16M Investment in Sign – YZi Labs led the funding round for Sign, alongside Altos Ventures, HackVC, and Amber Ventures. The platform focuses on transparent token distribution for both users and AI agents.
• Sign’s Product Ecosystem – Sign operates EthSign (for blockchain-based contract signing), TokenTable (for token management), and Sign Protocol (for verification on-chain).
• CZ’s Role in YZi Labs – Former Binance CEO Changpeng Zhao (CZ) remains heavily involved in YZi Labs' investment decisions, despite stepping down from Binance’s centralized exchange.
• YZi Labs’ Expanding Focus – The firm has over 250 investments, including Sky Mavis, LayerZero, Aptos Labs, and Polygon, and manages $10 billion in assets. Its rebranding signals a shift towards Web3, AI, and biotech innovation.

Key Takeaway

YZi Labs’ $16 million investment in Sign marks its first major move post-rebrand, reinforcing its commitment to on-chain token distribution and expanding Web3 adoption.

Movement Labs Founder Denies Insider Trading Allegations Over Trump-Backed Token Purchases

Background

Movement Labs co-founder Rushi Manche has denied allegations of insider trading following reports that Trump-backed World Liberty Financial (WLFI) purchased $2 million worth of MOVE tokens just two hours before the official developer mainnet announcement. The timing of the transactions has raised concerns within the crypto community.

Key Points

• WLFI’s MOVE Token Purchases Raise Questions – On-chain data shows that WLFI acquired MOVE tokens via CoW Swap at 14:00 UTC, two hours before Movement Labs' mainnet announcement, leading to speculation about possible advance knowledge of the event.
• Manche Denies Coordination – Manche stated that Movement Labs had no direct contact with WLFI and that the purchase was unexpected. He emphasized that the team was fully focused on the mainnet launch and had not coordinated with external entities.
• Unusual Trading Activity Before Announcement – Prior to the news, MOVE token open interest surged from $25 million to $100 million on Binance, and 30% on Coinbase, indicating that some traders may have anticipated the announcement.
• SEC Insider Trading Implications – While it remains unclear whether WLFI had privileged access to information, the SEC prohibits trading based on non-public data. Manche noted that the mainnet launch was not previously detailed in the project’s roadmap, though hints of a major announcement were shared.
• No Ties to Musk or DOGE – Manche also dismissed rumors of Movement Labs engaging with Elon Musk’s DOGE team, stating that no such conversations had taken place despite recent speculation.

Key Takeaway

Movement Labs is under scrutiny following WLFI’s timely MOVE token purchases, but Rushi Manche denies any coordination or insider knowledge. The incident adds to ongoing concerns about on-chain transparency in crypto markets.

Bitwise Files With SEC for Spot Dogecoin ETF

Background

Bitwise has officially filed with the U.S. Securities and Exchange Commission (SEC) to launch a spot Dogecoin ETF, marking a significant step toward making the popular memecoin more accessible to traditional investors. This follows the firm's earlier registration of a Dogecoin trust in Delaware on Jan. 22.

Key Points

• Official SEC Filing for Spot Dogecoin ETF – Bitwise’s S-1 filing with the SEC confirms its intent to launch a Dogecoin ETF, which would directly hold DOGE and track its price movements.
• Crypto ETF Trend Expands to Memecoins – The move aligns with a growing trend of memecoin-focused ETFs, with Osprey Funds, REX Shares, and Tuttle Capital also proposing ETFs for DOGE and Trump’s Official Trump (TRUMP) token.
• Custodian and Approval Process – The filing lists Coinbase Custody as the proposed custodian, though details such as the ETF’s fee structure, ticker, and listing exchange remain undisclosed. The next step requires a 19b-4 filing to formally initiate the SEC approval process.
• Bitwise’s Expanding ETF Offerings – Beyond Dogecoin, Bitwise has recently filed for spot Solana (SOL) and XRP (XRP) ETFs, alongside its Bitwise 10 Crypto Index Fund, which tracks top cryptocurrencies by market cap.

Key Takeaway

Bitwise’s Dogecoin ETF filing signals increasing institutional interest in memecoins, but SEC approval remains uncertain as regulators continue to assess the limits of crypto ETF expansion.

Binance Denies France’s Allegations as Global Legal Challenges Escalate

Background

Binance, the world’s largest cryptocurrency exchange, is facing new legal scrutiny in France over allegations of money laundering and tax fraud. French authorities launched an investigation spanning 2019-2024, reportedly tied to drug trafficking, while legal challenges against Binance continue to mount worldwide.

Key Points

• France Investigates Binance for Financial Crimes – French authorities are probing Binance’s compliance with Anti-Money Laundering (AML) and tax regulations, with the inquiry extending across the European Union.
• Binance Rejects Allegations – A Binance spokesperson labeled the investigation a continuation of a long-standing legal probe and stated that the exchange fully denies the allegations and will vigorously fight any charges.
• Legal Challenges Across 10+ Countries – Since 2021, Binance has faced regulatory scrutiny in at least 10 countries, including the U.S., Canada, Australia, Belgium, India, and Nigeria, for violations ranging from unregistered operations to AML breaches. In 2023, Binance paid $4.3 billion to U.S. authorities to settle an investigation.
• Strengthening Compliance Measures – Binance CEO Richard Teng acknowledged past compliance gaps due to rapid growth but emphasized that Binance now has 645 compliance employees, reflecting a 34% increase in headcount to meet regulatory requirements.

Key Takeaway

Despite Binance’s efforts to enhance compliance, regulatory scrutiny continues to intensify globally. The outcome of France’s investigation could further impact the exchange’s operations within the European Union.

Ondo Finance’s Tokenized US Treasury to Launch on XRP Ledger

Background

Ondo Finance is expanding its tokenized US Treasury fund, OUSG, to the XRP Ledger, offering investors access to short-term government bonds that can be redeemed using Ripple’s RLUSD stablecoin. The integration highlights the growing momentum behind real-world asset (RWA) tokenization in the crypto space.

Key Points

• OUSG to Join XRP Ledger – Ondo Finance’s Short-Term US Government Treasuries (OUSG) fund will be deployed on XRP Ledger within six months, with Ondo and Ripple seeding liquidity upon launch.
• Backed by BlackRock’s BUIDL Fund – OUSG provides exposure to short-term US Treasuries with an APY of 4.16% and $184 million in TVL, backed by BlackRock’s USD Institutional Digital Liquidity Fund (BUIDL).
• Stablecoin Redemption via RLUSD – Once live, OUSG tokens can be redeemed via Ripple Labs’ RLUSD stablecoin, which launched in December with a market cap of $72.4 million.
• Booming RWA Market – The tokenized US Treasury market is now valued at $3.43 billion, while the broader real-world asset (RWA) tokenization sector has surpassed $16.8 billion. Analysts project bond tokenization could reach $300 billion by 2030, supported by calls from BlackRock CEO Larry Fink for regulatory approval of tokenized stocks and bonds.

Key Takeaway

Ondo Finance’s XRP Ledger integration reinforces the rapid growth of RWA tokenization, as institutions seek blockchain-powered access to traditional financial assets like bonds and Treasuries.

Erik Voorhees’ Venice AI Launches VVV Token with $1.6B Valuation

Background

Venice AI, founded by Erik Voorhees, has officially launched its VVV token, which aims to drive decentralized AI solutions. The token, which launched on Ethereum's Layer 2 Base network, quickly gained traction, securing a Coinbase listing on launch day and achieving a $1.6 billion valuation.

Key Points

•  VVV Token Launch and Airdrop – Venice AI introduced the VVV token with an initial airdrop distributing 25% of its 100 million supply to wallets holding AI agents and various tokens on the Base blockchain, and another 25% to over 100,000 early Venice users.
• Strong Market Reception – As of launch, VVV is trading at $16, with a fully diluted valuation of $1.6 billion. Coinbase listed VVV within hours of its debut, highlighting significant market interest.
• Data Privacy vs. DeepSeek – Venice AI positions itself as a privacy-first AI platform, contrasting with China’s DeepSeek model, which has raised concerns over data privacy and user data being shared with the Chinese government. Venice AI claims that user data stays private on its platform.
• Venice AI’s Decentralized Mission – Launched in May 2024, Venice AI offers decentralized access to open-source AI models for text, image, and code generation, with no account required for basic use. VVV can also be staked for free inferences and yield.

Key Takeaway

Venice AI’s VVV token launch marks a significant step toward a decentralized approach to AI, with strong early demand, a Coinbase listing, and a focus on data privacy, distinguishing itself from competitors like DeepSeek.

Getgems Bets on Telegram to Boost NFT Adoption in 2025

Background

Despite a challenging year for NFTs, Getgems, an NFT marketplace based on The Open Network (TON), remains optimistic about the future of NFT adoption. The platform is focusing on leveraging Telegram’s 950 million active users and TON blockchain to drive the utility of NFTs in 2025.

Key Points

• Telegram as Key to Growth – Getgems believes that Telegram’s massive user base offers a unique opportunity for NFT integration, with the platform focusing on utility-driven digital collectibles rather than speculative or gambling-focused NFTs.
• Utility-Focused NFTs – Getgems points to Telegram Usernames and Anonymous Telegram Numbers as examples of NFTs that provide real-world ownership rights for digital identities and accounts. These collections have seen significant volume, with Usernames generating 72 million TON and Anonymous Numbers 24 million TON.
• Telegram Gifts Integration – In October 2024, Telegram launched Gifts, which users can now convert into NFTs. The integration into the TON blockchain is a significant step toward making Telegram-based NFTs more accessible and appealing to a broader audience. Telegram’s Gifts have already gained over 20 million users, signaling growing demand.
• Strong Early Traction – Even before NFTs went on-chain, pre-mint trading volume for Telegram-based NFTs reached $1 million, and the collection achieved a market cap of $10 million.

Key Takeaway

Getgems is betting on the long-term utility of NFTs within Telegram’s ecosystem, confident that mass adoption through Telegram’s user base and tools will drive NFT growth, despite the broader market downturn in 2024.

Wintermute Eases Trading of the 'U.S. National Digital Asset Stockpile' Narrative

Background

Wintermute Asia, the Singapore-based derivatives arm of Wintermute, has introduced a Contract for Difference (CFD) tied to the GMUSA index, which tracks the performance of top U.S.-based crypto projects. This move provides traders with a more efficient way to engage with the U.S. strategic crypto reserve narrative, which has gained traction, particularly with discussions around creating a national digital asset stockpile in the U.S.

Key Points

•  CFD Tied to GMUSA Index – The GMUSA index is composed of major U.S.-based crypto projects, including XRP, Solana (SOL), and DOGE, with a focus on circulating supply. This index gives traders structured exposure to U.S.-centric assets.
• Index Performance and Growth – The GMUSA index has surged over 160% since Donald Trump’s election victory in November 2024, reflecting growing investor interest in U.S.-focused cryptocurrencies.
• Flexible Trading with CFDs – Wintermute’s CFD offering enables traders to buy or sell the index, profiting from price fluctuations without owning individual tokens. This simplifies the process and allows for more fluid trading, especially in the context of shifting market narratives.
• U.S. Strategic Reserve Discussions – The launch comes amid speculation about a U.S. national digital asset stockpile, with Ripple CEO Brad Garlinghouse advocating for a diversified token approach that could include multiple coins, not just Bitcoin (BTC).

Key Takeaway

Wintermute’s CFD on the GMUSA index provides an easy way for traders to gain exposure to the growing narrative of the U.S. strategic crypto reserve. This innovative product allows market participants to quickly shift between narratives while avoiding the complexity of trading each underlying asset individually.

KuCoin Pleads Guilty to US Charges, Agrees to Pay $300M

Background

KuCoin, one of the largest cryptocurrency exchanges, has pleaded guilty to operating an unlicensed money-transmitting business and has agreed to a $300 million settlement with the U.S. Department of Justice. The settlement includes a $184.5 million forfeiture and a $112.9 million fine, marking a significant regulatory setback for the exchange.

Key Points

• Guilty Plea and Financial Penalties – KuCoin has admitted to violations of Anti-Money Laundering (AML) and Know Your Customer (KYC) regulations. The settlement requires the exchange to pay $300 million and forfeit $2.7 million from its founders, who will also be forced to resign.
• Exit from the US Market – As part of the agreement, KuCoin will exit the U.S. market for two years.
• Founder Resignations – Michael Gan and Eric Tang, the exchange’s founders, will no longer hold roles in KuCoin's management. The company’s chief legal officer, BC Wong, will take over as CEO.
• Failure in KYC and AML Practices – KuCoin was accused of operating without adequate KYC and AML procedures, and of allowing U.S. users to trade without providing identifying information until July 2024.

Key Takeaway

KuCoin’s guilty plea highlights the growing scrutiny on crypto exchanges in the U.S. and underscores the importance of compliance with regulatory requirements. The settlement offers clarity for the platform’s future operations and paves the way for improved compliance.

DeepSeek Sparks Sell-Off in Crypto and Tech Markets

Background

The rise of DeepSeek, a Chinese AI startup that outperforms OpenAI's ChatGPT across several benchmarks, has caused widespread concern, leading to a sell-off in both digital assets and global tech equities. DeepSeek’s ability to achieve high performance at a fraction of the cost of American AI models has sparked fears about the future of AI development and its impact on markets.

Key Points

•  Crypto Market Impact – The announcement of DeepSeek’s success led to a brief drop in Bitcoin below $100K, with whales liquidating overleveraged positions. Additionally, GPU-heavy tokens saw declines of up to 40%, as investors speculated that DeepSeek’s efficiency could disrupt hardware-intensive AI investments.
• Tech Market Sell-Off – The tech sector also suffered, with Nasdaq futures tumbling by 700 points and major AI stocks, including Nvidia, dropping 10% in pre-market trading due to fears about competition from DeepSeek.
• DeepSeek’s Advancements – DeepSeek’s outperformance of ChatGPT and its ability to do so at lower costs raised questions about the efficiency of American AI training, adding to geopolitical tensions between the U.S. and China.

Key Takeaway

While DeepSeek represents a major advancement in AI technology, its potential to disrupt the industry has sparked market uncertainty, with both crypto and tech markets reacting negatively. However, it also opens the door for decentralized AI solutions, which could benefit the crypto sector in the long run.

Jupiter Spikes 40% as Founder Announces $3B Token Burn and Buybacks

Background

Jupiter, a Solana-based DEX aggregator, saw its JUP token spike 40% following major announcements from its pseudonymous founder, Meow, at the Catstanbul 2025 event. The key highlights included a planned $3 billion token burn and the allocation of 50% of platform fees for JUP token buybacks, setting the stage for a major shift in the token’s value and utility.

Key Points

• $3B Token Burn – Jupiter’s founder confirmed plans to burn 3 billion JUP tokens, worth approximately $3.6 billion. This move aims to reduce emissions, increase certainty, and reduce fully diluted valuation (FDV), boosting the token's scarcity.
• Buyback Plan – 50% of Jupiter’s protocol fee revenue will be used for JUP token buybacks to support the token's price and hold them in the "long-term litterbox," while the remaining 50% will fund growth, strategy, and operational stability.
• Market Reaction – Following the announcements, JUP’s price surged by 40%, rising from $0.90 to $1.27, as investors reacted positively to the future token supply reduction and buyback commitment.
• Major Strategic Moves – The event also saw Jupiter acquire a majority stake in Moonshot, a memecoin launchpad, launch the Jupnet omnichain network (currently in beta), debut V2 platform upgrades, and introduce a $10 million AI fund in collaboration with Eliza Labs.

Key Takeaway

Jupiter’s bold moves, including $3 billion in token burns and buybacks, have positioned JUP for potential long-term value growth. The announcements underline Jupiter's commitment to sustainability and community alignment, with a focus on strengthening its position in the AI and memecoin space.

Phantom Wallet Adds Support for Layer 1 Sui in Latest Multi-Chain Push

Background

Phantom Wallet has expanded its multi-chain support by adding the Sui blockchain, marking another step in its evolution from a Solana-based wallet to a multi-chain platform. The integration opens access to Sui’s native tokens and decentralized applications (dApps) for Phantom’s 15 million monthly active users.

Key Points

• Sui Blockchain Integration – Phantom Wallet now supports Sui, a Move-based Layer 1 blockchain, allowing users to manage SUI, BLUE, SEND, and interact with dApps such as Suilend, Navi, and Bluefin.
• Move Programming Language – Sui is the first Move-based blockchain to be fully supported by Phantom. Its unique object-centric architecture and ability to process parallel transactions differentiate it from traditional blockchains.
• Phantom’s Multi-Chain Strategy – After starting with Solana, Phantom expanded to support Ethereum, Polygon, Bitcoin, Base, and now Sui. The wallet is also expected to support Monad upon its launch.
• Sui’s Growth – Over the past year, Sui has seen a 500% increase in market cap, reaching an $11 billion valuation and becoming one of the top 10 blockchains by total value locked.

Key Takeaway

Phantom Wallet's expansion into Sui and other blockchains aligns with its vision of a multi-chain crypto ecosystem. By integrating scalable and user-friendly platforms like Sui, Phantom continues to enhance its appeal, providing users with seamless access to a broader range of crypto assets and applications.

Arthur Hayes Forecasts Bitcoin Collapsing to $70,000

Background

Arthur Hayes, former CEO of BitMEX, has drastically changed his outlook on Bitcoin, shifting from early-year bullishness to predicting a potential drop to $70,000. In a recent blog post, Hayes expressed concerns over macro factors and memecoin market activity, suggesting a significant market pullback before any major rally.

Key Points

•  Shift from Bullish to Bearish – After initially advocating for a bullish stance at the start of 2025, Hayes now anticipates that Bitcoin could drop to $70,000-$75,000, citing mounting macro banking issues and the unpredictable behavior of the TRUMP memecoin.
• Macro Concerns – Hayes pointed to the relationship between US Treasury bonds, stocks, and Bitcoin prices, along with the TRUMP memecoin's volatility, as indicators of market instability reminiscent of late 2021, when the crypto market experienced a significant downturn.
• Market Outlook – While Hayes acknowledges that Bitcoin's bull cycle may not be over, he expects a major pullback before any substantial growth. His projection is that Bitcoin could eventually reach $250,000 by the end of 2025, following a decline to the $70,000 range.
• Investment Strategy – Hayes’ family office has increased its holdings in Ethena USDe stablecoins and is liquidating several altcoins at a profit to prepare for potential buying opportunities in Bitcoin and quality altcoins after a market dip.

Key Takeaway

Arthur Hayes predicts a Bitcoin dip to the $70,000 range before a larger rally, driven by concerns over macroeconomic factors and excessive market bullishness. This outlook suggests a volatile market ahead, with potential buying opportunities following a correction.