Coin360 Weekly Dispatch | Crypto Market Updates & Highlights | February 16 - 22, 2025

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Crypto Weekly Recap

Bitcoin:

• Weekly performance: -1.29%
• US Spot Bitcoin ETFs: -$559.41M
• BTC remained quiet over the weekend as gold hit a new all-time high near $2,950 per ounce, outperforming Bitcoin by 13.92% in 2025.
• Crypto investment products saw $415M in net outflows last week, ending a five-week inflow streak. CoinShares attributed this to Powell’s hawkish comments and higher-than-expected inflation. Meanwhile, private firms increased BTC holdings by 374,000 BTC in 2024.
• BTC slumped Tuesday, rebounded Wednesday, but failed to reclaim weekend levels despite FTX repaying creditors $1.2B. The market remained skeptical, as half of the $800M first tranche went to TradFi debt buyers with concerns of little crypto interest.
• BTC surged from Wednesday, surpassing $99K on Friday after Coinbase secured a legal victory against the SEC, leading to the dismissal of an enforcement case.
• The rally halted after Bybit’s $1.4B exploit sparked FUD, coinciding with thicker BTC/USDT liquidity, triggering liquidations and pushing BTC down to $95K. It has since recovered to $96.6K.

Ethereum:

• Weekly performance: +0.98%
• US Spot Ethereum ETFs: +$1.61M
• Traders were optimistic about ETH’s recovery ahead of the April Pectra upgrade, but the Bybit exploit dampened sentiment.
• ETH briefly broke $2,800 on Friday before dropping to $2,630 amid hack panic, later recovering to $2,735.
• Ethereum sentiment shifted this week, contrasting with Solana, which faced reputational damage from recent memecoin rug pulls. The Ethereum Foundation’s search for a social media manager added to the narrative of rebuilding community trust.
• Ethereum mainnet saw $1.1B in stablecoin issuance (USDT, USDC) last week, while Solana experienced headwinds including a $772M stablecoin burn, decreased DEX volume, lower user activity, and fallen price.
• ETH reserves on exchanges hit a nine-year low, signaling reduced supply that could fuel a price rally.
• ETH fees dropped to a four-year low of ~$0.41 this week, down from a $15.21 peak in the past two years. Analysts remain split on whether low fees will attract users or signal reduced trading activity, though some see it as a long-term bullish factor.
• CryptoQuant CEO Ki Young Ju believes the start of alt season is here but noted key shifts from past cycles. Altcoin trading volume is now 2.7x higher than Bitcoin, with stablecoin holders increasingly favoring alts. Trading volume, not BTC dominance, is now the key altcoin investment metric.

Altcoins:

• Weekly ETF report: Institutional flows surge in Bitcoin & Ethereum
• TradFi firms expand crypto services: This week’s highlights
• Real-world assets top $20B as tokenization gains momentum
• Institutional crypto surge: Firms increase holdings this week
• Stablecoins, Bitcoin & SEC: Biggest legal developments of the week
• Binance co-founder denies sale rumors, blames competitor misinformation
• MakerDAO faces governance crisis over attack prevention proposal
• Cardex wallet exploit exposes Abstract’s security flaws
• Changpeng Zhao’s $100K donation triggers unexpected crypto response
• Dave Portnoy’s meme coin scandals raise manipulation allegations
• Linea updates Sybil list, removes 3.5K false positives after appeals
• Robinhood expands to Singapore via Bitstamp acquisition
• Blockaid secures $50M Series B to boost AI security
• Grayscale expands offerings with new Pyth Trust
• Fake Saudi Arabia memecoin launched by prince impersonators
• Tether eyes South America’s renewable energy firm Adecoagro
• Trump endorses Ripple on Truth Social, highlights US expansion
• Coinbase launches CFTC-approved futures for Solana & Hedera
• Binance halts US plans, awaits regulatory clarity despite leadership reset
• Tether co-founder unveils yield-bearing stablecoin to rival USDT
• Exodus adds Venmo for crypto purchases, reaching 60M users
• Arweave’s AR.IO launches mainnet & token generation event
• eToro secures MiCA license for European crypto expansion
• BitGo & Copper enable off-exchange trading on Deribit
• Polymarket to launch real-world event oracle for verified betting
• World Chain & Flashbots combat bots with human-first blockspace
• ECB developing blockchain-based payment system
• Sonic (prev. FTM) rallies as TVL hits record high
• Kanye West to launch YZY token, holding 70% stake
• BNB Chain plans mid-March hard fork for smart contract wallets
• Kraken considers stablecoin launch amid European pressure on Tether
• KAITO token climbs despite post-airdrop sell pressure

SEC Launches New Crypto Unit, Coinbase Triumphs in Legal Battle, and YLDS Yield-Bearing Stablecoin Approved

The SEC has launched the Cyber and Emerging Technologies Unit, shifting to a more innovation-friendly stance in cryptocurrency regulation under Acting Chairman Mark T. Uyeda, following an aggressive enforcement era led by Gary Gensler. Coinbase won a significant case, leading to a dismissal of charges without penalties, boosting Bitcoin prices to $99,000. The SEC also approved Figure Markets' yield-bearing stablecoin (YLDS), offering a 3.85% annual yield, marking a pivotal regulatory shift. This approval may encourage more stablecoin issuers to seek regulation, as legislative efforts for clearer frameworks are underway, signaling evolution in oversight for digital assets.

Bybit Hacked for $1.4 Billion in One of Crypto’s Largest Breaches

Bybit, a leading cryptocurrency exchange, suffered a severe hack on February 21, 2025, losing over $1.4 billion in liquid-staked Ether and ERC-20 tokens. The attack exploited its ETH cold wallet through a manipulated smart contract transaction, allowing the thief to siphon funds into 39 addresses. Despite the breach, Bybit’s CEO Ben Zhou assured customers of the exchange's solvency and security of other cold wallets. The incident raised significant concerns in the crypto market, causing an immediate 3% drop in Ethereum prices. Industry leaders like Justin Sun and Coinbase executives rallied support for Bybit’s recovery efforts amid increasing cyber threats.

FTX Begins $1.2 Billion Creditor Repayments Post-Collapse

FTX has commenced creditor repayments on February 18, 2025, marking a significant milestone three years post-collapse, distributing $1.2 billion to about 162,000 claimants, prioritizing claims of $50,000 or less. Approximately $800 million is being disbursed initially, with half of the funds withheld for disputed claims. Creditors from the Bahamas lead the payouts, while discontent persists over claim valuations. Bitcoin briefly dipped below $95,000, and Solana fell amid liquidation concerns. Future distributions are scheduled for May 30, and creditors must verify claims by April 11. FTX's downfall was marked by severe financial mismanagement and legal consequences for founder Sam Bankman-Fried.

LIBRA Scandal Hits Solana: $4B Token Collapse Sparks Political Crisis and Regulatory Calls

The LIBRA scandal has shaken the Solana ecosystem, stemming from a memecoin promoted as Argentina's "official token" by President Javier Milei. After a rapid market cap surge to $4 billion, it plummeted over 90%, leading to widespread investor losses and a political crisis. Insider manipulation involved 82% of LIBRA’s supply controlled by a few wallets. The fallout has prompted Argentina's Anti-Corruption Office to investigate, further damaging Solana's reputation. DEX trading volume has dropped 60% amidst increasing regulatory calls, as Ethereum benefits from Solana’s turmoil, attracting $1.1 billion in stablecoin inflows while Solana lost $772 million in liquidity.

Crypto ETF Landscape Shifts: Ether Staking, BTC/ETH, XRP, and Litecoin

Recent developments in the crypto ETF landscape include the NYSE's proposal to allow Ether staking in Grayscale's Ethereum ETFs, aiming for enhanced efficiency and potential 2.06% staking rewards. Hashdex launched the first U.S. multi-asset crypto ETF, NCIQ, covering Bitcoin (BTC) and Ethereum (ETH), with a combined market value over $2.3 trillion. Osprey Funds seeks SEC approval to convert its Bitcoin Trust (OBTC) into an ETF for lower fees. Meanwhile, the SEC acknowledged filings for XRP and Litecoin ETFs from CoinShares and Bitwise, while Hashdex prepares Brazil's first XRP spot ETF. Key cryptos involved are BTC, ETH, XRP, and Litecoin.

Binance.US Resumes USD Transactions After 18-Month Regulatory Suspension

Binance.US has reinstated USD transactions after an 18-month hiatus due to regulatory issues, allowing U.S. users to make bank transfers and trade ten cryptocurrencies, including Bitcoin and Ethereum. This development follows a lawsuit from the SEC in June 2023, which caused significant operational changes. A recent 60-day pause in legal proceedings may facilitate settlement discussions. CEO Richard Teng emphasizes a cautious approach amid evolving regulations and a $4.3 billion settlement over compliance violations. Despite exploring headquarters options, Binance remains undecided on its global base. Binance Labs, now rebranding, aims to expand investments in various sectors, including DeFi and AI.

Mysterious Ethereum User Burns 603 ETH, Donates $2M to WikiLeaks Claiming Mind Control

A mysterious Ethereum user, known as "Hu Lezhi," has burned a total of 603.38 ETH ($1.67 million) while sending bizarre onchain messages accusing hedge fund executives of employing "brain-machine weapons" for mind control. The user also donated 711.52 ETH ($1.97 million) to WikiLeaks, claiming to have been monitored and manipulated since birth. Recent contributions included warnings about military deployment of brain-machine chips. Overall, the user has distributed over 1,238 ETH ($3.4 million) across various addresses, creating intrigue within the crypto community regarding their motives, whether they be paranoia, activism, or an elaborate scheme.

Dave Portnoy Faces Market Manipulation Allegations Amid Meme Coin Controversies

Dave Portnoy, founder of Barstool Sports, faces allegations of market manipulation after his meme coin investments caused major market crashes, including a 99% drop of the GREED token's market cap from $12.88 million to $123,950 in seconds. Portnoy controlled 35.79% of GREED's supply, profiting $258,000 despite investor losses. His swift launch of GREED2, which crashed by 90%, raised further concerns. Analysis linked him to LIBRA, which collapsed, leading to fraud charges against an associated politician. Speculation about potential criminal charges and SEC investigations is growing, reflecting distrust among traders and calls for Kraken, his sponsor, to reconsider their partnership.

Pi Network's Mainnet Launch Leads to 65% Pi Coin Crash Amid Investor Discontent

Pi Network's Mainnet launch on February 20, 2025, resulted in chaos as Pi Coin's price crashed by 65%, dropping to $0.66 from a peak of $2. Analysts cited low trading volumes and weak liquidity, with over 10.7 million of its 60 million users actively participating. The launch sparked dissatisfaction among early adopters, many of whom felt undervalued. Accusations of unfair token distribution surfaced, while Bybit's CEO labeled the project a scam amid prior regulatory warnings. Despite claims of over 19 million completing KYC, skepticism surrounds the project's viability and true economic utility, with further depreciation risks looming.

Top Weekly Altcoin Gainers and Losers

Gainers:

Story IP (+150.12%)

Sonic S (+63.87%)

Maker MKR (+52.15%)

Celestia TIA (+19.94%)

Sei SEI (+16.13%)

Losers:

Official Trump TRUMP (-22.85%)

Raydium RAY (-17.82%)

Movement MOVE (-15.21%)

XDC Network XDC (-14.36%)

Bonk BONK (-13.76%)