RabbitX

Ben Strack

This is a segment from the Forward Guidance newsletter. To read full editions, <a href="https://blockworks.co/newsletter/forwardguidance">subscribe</a>.



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Digital assets are not quite like any others. That’s part of what makes them appealing to many — but it can also spur confusion.



Trying to quantify the relationship between BTC, for example, and other asset classes is becoming more prevalent as more investors seek diversification and hedging opportunities.&nbsp;



A clear finding in a recent FTSE Russell report: The rolling correlations of bitcoin and ether returns sharply increased with risk-on assets since 2020.



If we look at BTC in particular, the Russell 1000 index — comprising US large-cap stocks — has a 0.58 correlation to the asset. That relationship is nearly as strong for BTC and US financial stocks and US tech stocks — at 0.53 and 0.52, respectively.&nbsp;



The correlation, since Covid, between BTC and US high-yield credit (the most “risk-on” fixed income asset class) stands at 0.49.



Prior to the Covid-19 outbreak (spurring inflation and <a href="https://blockworks.co/news/fed-chair-powell-economy-depends-on-covid-path">monetary tightening</a>), all these correlations were much closer to zero.&nbsp;



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXffBeeFASUb7uuFqgOXUWMOhxoAU8XPo8mLPDlq4o0Eg82Ho_FRCDJ7_hsGqedA3_VBxUQZBBkzma36znxCYk6XD9RpRUh6qSkvq-xycZp2br9U4c5iwYaJ-cQwpYa0M-WQfWY4?key=JKn2IKvppGoCAezKSe7GPSkT" alt=""/></figure>



7–10 year US Treasurys were rather unique in not seeing a meaningfully higher correlation to BTC after Covid. And the US dollar is the only asset showing negative correlation to BTC and ETH over those years.



Despite bitcoin often being compared to gold, the BTC-gold correlation in the post-Covid era is only 0.15.



BTC’s high volatility (and the varying importance of <a href="https://blockworks.co/news/alliancebernstein-gold-bitcoin-returns">safe haven</a> and <a href="https://blockworks.co/news/goldman-sachs-ceo-btc-store-of-value">store-of-value </a>characteristics in financial markets) may obscure the “true correlation” between these assets’ returns, the report notes.



It adds: “But the true correlation may simply be low, reflecting the fact that bitcoin and ETH are predominantly risk-on assets, whereas gold has a long-established trading history as a ‘safe haven’ asset, even if they do share some store of value characteristics.”



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BTC’s evolving correlation to more traditional asset classes  

Kate Irwin

This is a preview of upcoming newsletter The Drop. To read full editions after launch,&nbsp;<a href="https://thedrop.beehiiv.com/subscribe" target="_blank" rel="noreferrer noopener">subscribe</a>.



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There’s been a lot of buzz around Berachain, which <a href="https://x.com/berachain/status/1887485522492203155">launched</a> on Thursday and has already seen over <a href="https://berascan.com/">2 million</a> transactions.&nbsp;



It’s the latest launch by the makers of the Bong Bears NFTs, a collection of 100 smoking bears on the Ethereum blockchain launched back in the 2021 crypto boom.&nbsp;



Berachain, by contrast, is an ambitious Web3 blockchain using “Proof of Liquidity,” with the idea that pooled-up funds will lead to a sustainable ecosystem long-term.&nbsp;



Some, however, are not so sure. An exec with ties to a gaming-focused chain tells me: “[Berachain] bothers me deeply.” They don’t like how the project accumulated a pile of NFT money first and then built a whole chain somewhat randomly years later.



Yet as the pseudonymous Berachain founder Smokey <a href="https://youtu.be/u_eDYZYN9B4?feature=shared&amp;t=80">puts it</a>, Berachain was a series of “happy accidents.”&nbsp;



But there’s another new chain in town. Abstract — which launched last month from the Pudgy Penguins team — continues to hold attention on Crypto Twitter right now, leading some to compare it with Berachain.&nbsp;



One <a href="https://x.com/cnig69/status/1886957776171364813">post</a> that got over 600 likes in less than 24 hours praised Berachain for incentivizing whales and attacked Abstract Chain for catering to “normies and streamers” because Abstract’s platform centers games and livestreaming.&nbsp;



Right now, only about 750 approved accounts can livestream on Abstract (in the past few days, I’ve seen anyone from 57 to 75 streamers live at any given time). Maybe it’ll get more traction than Theta and DLive crypto streaming — or maybe not.



There are already over 35 gaming-related projects on Berachain’s website, suggesting it’s a gaming-friendly chain, too. It got<a href="https://blockworks.co/news/berachain-pre-launch-liquidity"> over $1.6 billion</a> in pre-launch liquidity, while Abstract has just <a href="https://defillama.com/chain/Abstract">$8.49 million</a> in total value locked (TVL) as of Thursday morning.&nbsp;



The bear-themed blockchain has <a href="https://x.com/berachain/status/1887178672995537236">unveiled</a> its token airdrop, too. Berachain is <a href="https://x.com/berachain/status/1887178677810553117">allocating</a> half its token supply to investors (34.3%) and “initial core contributors” (16.8%).&nbsp;



Some early testnet users are <a href="https://x.com/mark_krov/status/1887193558815285305">pissed</a>, as they’re only being allocated a tiny fraction (<a href="https://blog.berachain.com/blog/berachain-airdrop-overview">1.65%</a>) of the airdropped tokens in total.&nbsp;



Another big catch, of course, is that they’re blocking US residents from a number of online sites, including those for the project’s BeraHub, its HONEY stablecoin, and its token and NFT bridges. Will you be able to get around this? I’m currently working from South Africa, so the hub’s site loads for me until I turn on my VPN and choose a US-based IP address. Then, access denied.



Blockchains will inevitably get compared — but it doesn’t make much sense to compare Berachain and Abstract, Abstract Marketing Lead Phineas Totten tells me. “Our product is so distinctly different.”



“We just want to have fun on-chain again,” he adds.



Sony’s Soneium blockchain has also arrived. It launched three weeks ago as a rollup on Optimism. It’s being managed by Sony Block Solutions Labs, separate from Sony Interactive Entertainment and PlayStation.&nbsp;



But that doesn’t mean games on Soneium are 100% out of the picture.&nbsp;



Sam Barberie — head of strategy and partnerships at blockchain gaming infra firm Horizon — tells me he’s been working with Sony on some of their blockchain solutions. Sony’s move into crypto is exciting because they’re, as he puts it, “willing to experiment.” If this experiment works out, he posits, even more big fish could jump into the crypto pond.



“When companies get to see that [success], and the sky doesn’t fall, then it starts to open up more conversations,” Barberie says.



Soneium is a big deal for Web3 — if it can make a splash with US companies or consumers.



<h2 class="wp-block-heading">PENGU fire fizzles&nbsp;</h2>



PENGU, the Pudgy Penguins’ NFT token, burned big this week.&nbsp;



The team set over <a href="https://x.com/pudgypenguins/status/1887164609133429246">12.1 billion</a> Pengu tokens on figurative fire in a token burn amounting to roughly $150 million, or about 14% of the total supply. That’s keeping their <a href="https://x.com/pudgypenguins/status/1885027033794621514">promise</a> that after the Pengu claim ended, remaining tokens would be burnt. That’s good news.



That burn hasn’t sent the token climbing, though. Pengu is down 5.5% in the past day, and down roughly 73% in the past month. 



<h2 class="wp-block-heading">Raised by wolves</h2>



Yet another gaming-adjacent token may be on the horizon.&nbsp;



WolvesDAO, an invite-only group of Web3 gaming enthusiasts, may be releasing a token. The WolvesDAO hosts Twitter Spaces, but they also have a robust, exclusive Discord server that frequently purges inactive members.&nbsp;



WolvesDAO cofounder Sam Steffanina tells me via DM: “Something along those lines” of a token is in the works following a <a href="https://x.com/WolvesDAO/status/1887181047718203505">few</a> mysterious <a href="https://x.com/WolvesDAO/status/1886842509948580040">posts</a> to the group’s X page.&nbsp;



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Berachain and Abstract are buzzing, but face criticism

This is a segment from the Forward Guidance newsletter. To read full editions, <a href="https://blockworks.co/newsletter/forwardguidance">subscribe</a>.



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First, MicroStrategy rebranded to, well, just Strategy. Then it detailed its plans for 2025.



If you weren’t yet convinced the company formerly known as MicroStrategy was all in on bitcoin, perhaps yesterday changed that.



<a href="https://x.com/strack_ben/status/1887201721728049298">Strategy’s orange logo</a> features a bitcoin “B.” Company leaders, after Wednesday’s market close, pledged to stick with its plan to raise, purchase, and repeat.



The self-proclaimed bitcoin treasury company (and now <a href="https://blockworks.co/news/mstr-and-bitcoin-standard-etf-filing">a Nasdaq 100 stock</a>) held 471,107 BTC, as of Feb. 2 — worth roughly $46 billion at that time. It acquired 258,320 for $22.1 billion in 2024 (avg. price of $85,447 per BTC).&nbsp;



On yesterday’s earnings call, Strategy CEO Phong Le reiterated the company’s <a href="https://blockworks.co/news/microstrategy-shares-audacious-plan-to-buy-more-bitcoin">21-21 plan</a> detailed in Q3 — raising $21 billion of equity and $21 billion from fixed income securities between 2025 and 2027. Strategy has made progress there faster than anticipated due to “favorable market dynamics,” he noted.&nbsp;



The capital-raising/BTC-buying ramp-up in Q4 was clear. Strategy raised $15 billion through equity issuances and $3 billion via convertible debt. It had raised $10 billion over the previous 17 quarters (dating back to first adopting BTC as its treasury reserve asset).



The company is shifting its focus in 2025 to fixed income issuances (i.e. convertible notes, preferred stock), Le said. Its long-term leverage target is 20-30% of its BTC holding value.



In a Thursday research note, Benchmark’s Mark Palmer pointed to Strategy upping its 2025 BTC yield target to at least 15% — up from the 6-10% figure it offered on the last earnings call.&nbsp;



Though Strategy <a href="https://blockworks.co/news/microstrategy-pauses-btc-buying-spree">paused its BTC-buying spree</a> last week, Palmer said the company’s $10 billion BTC dollar gain target (quantifying shareholder value created by its treasury operations) implies it will continue to “aggressively” raise capital to fuel BTC buys.



Palmer kept his price target for MSTR (the ticker remains) at $650. The stock was trading around $326 at 1:30 pm ET.



Oh, and Strategy wants you to know it’s launched a merchandise store for all your apparel needs. To each their own.



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After rebrand, ‘Strategy’ shares 2025 targets

Felix Jauvin

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With the recent confirmation of Scott Bessent as US Treasury Secretary, we’ve received the first quarterly refunding announcement under his leadership.



Much has been written in the past year about the potential politicization of the composition of debt being issued by Treasury and how that could impact markets.&nbsp;



As seen below, the proportion of bills that have been issued compared to coupons has skyrocketed. Historically, this type of maneuver has been kept for times of crisis when Treasury needs to raise a lot of money very quickly, with little impact to duration.&nbsp;



However, this has occurred in a regime of exceptional economic strength.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXd_pDkSjjrGXfckckzl37lEWZY3-oyKgEl7bXt7HZvxYt-fhURalcEHAXhRenzJZiej6zcZ4ytiC7sIp1G5aQwVg_rAlcvd0NDlaHm_gOV24ccKb7JxhFo7qqC7d1odLiCchK9e?key=JKn2IKvppGoCAezKSe7GPSkT" alt=""/></figure>



Before being nominated as secretary, Bessent was publicly critical of this strategy. He discussed his belief that it was essential for the composition of issued debt to get normalized —&nbsp;meaning an increase in proportion of longer-duration debt being issued.&nbsp;



Though admirable, this strategy would be very precarious due to the lack of structural demand for long-duration bonds without the Fed buying for QE, foreign central banks becoming net sellers of long-term debt, and concerns about fiscal deficits increasing.&nbsp;



With that context, all eyes were on this week’s QRA to see whether Bessent would change the composition of issuance back toward normalization.&nbsp;



As seen in the chart below of the estimate for borrowing for the next two quarters, Bessent has toed the line and kept the policy approach he criticized Yellen for:



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcPUSL7ykKXxH0LW6Mmzc1jsmo8Qbhc1uraLsGQQbwEnHyQTtRM67T2jTGU0rX5SX9CGuNax2sWO7sxszjlLTem2xBZXbldlzVKpB_Nr5Cu5upRz00j4Qc-VPvM_33UdBN58aQjGg?key=JKn2IKvppGoCAezKSe7GPSkT" alt=""/></figure>



What’s even more interesting is the commitment to the forward guidance of this issuance that was introduced last year, guidance the Treasury decided to keep despite recommendations from TBAC to remove it: “In discussing issuance recommendations, the committee uniformly encouraged Treasury to consider removing or modifying the forward guidance on nominal coupon and FRN auction sizes that has been in the refunding statement for the past four quarters. Some members preferred dropping the language altogether to reflect the uncertain outlook, though the majority preferred moderating the language at this meeting.”



Despite this recommendation, Treasury kept the following commitment:



“Based on current projected borrowing needs, Treasury anticipates maintaining nominal coupon and FRN auction sizes for at least the next several quarters.”



So what’s the takeaway? I’ll leave it with a meme:



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfqN2k7oKttgAnQBNilI6aqxxlQGmX04XnjUynR-5u2tyedZOKBjc8YADkP09CxYFKFdGEFC3_SWxXXrvxbE2fdeWHmaV1mAOVJV2HHqCx0SJ1KfsgjAveLECwBf-9UmBubUGFEig?key=JKn2IKvppGoCAezKSe7GPSkT" alt=""/></figure>



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Big takeaways from Bessent’s first quarterly refunding announcement

Donovan Choy

This is a segment from the 0xResearch newsletter. To read full editions, <a href="https://blockworks.co/newsletter/research">subscribe</a>.



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The world’s longest testnet is at an end. The Berachain L1 blockchain is officially launching its mainnet and BERA token today.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Henlo, and furthermore, your tokens are coming. <a href="https://t.co/b9isn5XhiU">pic.twitter.com/b9isn5XhiU</a>&mdash; Berachain Foundation 🐻⛓ (@berachain) <a href="https://twitter.com/berachain/status/1887178672995537236?ref_src=twsrc%5Etfw">February 5, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



People are very excited! But that was already obvious. Berachain has attracted a ridiculous <a href="https://boyco.berachain.com/">$3.1 billion</a> in liquidity on its pre-launch liquidity platform <a href="https://blog.berachain.com/blog/rfb-boyco">Boyco</a>, making Bera the 8th largest chain by TVL.



Bera’s <a href="https://blockworks.co/news/berachain-pre-launch-liquidity">early liquidity rush</a> is thanks to its somewhat complex “proof-of-liquidity” (PoL) consensus mechanism.&nbsp;



Here’s the gist of it:



Your average proof-of-stake (PoS) network has a general-purpose native token (e.g. ETH or SOL).&nbsp;



Berachain splits that token into a dual token model:



<ul class="wp-block-list">
<li>BERA serves as gas and a bond for validator staking. </li>



<li>BGT is an inflationary but non-transferrable governance token.</li>
</ul>



The Berachain protocol emits BGT, and validators decide which dapps receive BGT emissions. Users who interact with these dapps (e.g. providing liquidity) can earn BGT.



But why do users want to farm a non-transferrable token? Because BGT is a veTokenomics-style bribe token.&nbsp;



You delegate BGT to validators, and this gives validators the governance power to direct future BGT emissions to whichever liquidity providers they like (hopefully, to the dapp you’re staking your liquidity on).



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXeUlQjhH9YhRngVVrZ4vEGxymLr09zIVFiSeqAqB6NA2Tf63igRt-3Lvt1TpyQEfRqar4R0AFArl2ZAFvDgwQHaErXjtM2ko8I9OM_QA1mua6X5oU-eCrzXFS_IMny_A_rCKtALmg?key=lJ36fFIu1TYHKByklWs92zyi" alt=""/><figcaption class="wp-element-caption">Source: <a href="https://docs.berachain.com/learn/pol/">Berachain</a></figcaption></figure>



This, at its core, is what makes Berachain unique: the creation of a direct relationship between liquidity providers and block validators.



On traditional PoS chains, validators merely stake a bond (e.g. ETH/SOL) and secure the chain. On Berachain, validators are actively deciding which dapps/LPs should be rewarded with BGT for their capital provision.



Now here’s the kicker. Calling BGT “non-transferable” is a bit misleading because BGT can be <a href="https://docs.berachain.com/learn/pol/tokens/bgt">irreversibly burned</a> at a 1:1 ratio to BERA. This means market values inevitably show up in the BERA token.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfuZZvbHvuVtzOsDxSTIVTqY8HGaRJzg71lp4U8VGv3OAB2uVhi7gcNjAEwkflm-Fw_HGMMOL3K7oQiI30OfhlRcH9JqVsspgsvqVE83vlbp7zg-C5kb6UiakvpXlDKCGnpH1TD4g?key=lJ36fFIu1TYHKByklWs92zyi" alt=""/></figure>



In contrast to the multiyear lockups on other veTokenomics models, such as Curve’s or Aerodrome’s, Berachain lets you exit when you like. But the exit is permanent.



You can’t buy your way back in like with CRV (BGT is a soulbound token). You’d have to farm BGT all over again.



This may explain Berachain’s early liquidity rush. Bera’s tokenomics are excellent at solving the cold-start TVL problem, because validators — who are already committed participants in the ecosystem — are internalizing the risks of liquidity provision, as opposed to the traditional playbook of dapps using their own native tokens.&nbsp;



But it also produces a flywheel effect that heavily privileges early participants in the Berachain ecosystem over later ones.



It may also explain why Bera has made the unusual choice to enshrine native applications — like its AMM DEX (BEX), money market (Bend) and perps DEX (Berps) at launch — as opposed to most L1s which <a href="https://x.com/QwQiao/status/1886765042864996843">outsource</a> these efforts to third-party builders.



The earlier to this game you are, the bigger warchest of BGT you’ve already built, which in turns means the largest power you have to control future BGT emissions.



It’s the <a href="https://blockworks.co/news/podcast-understanding-the-curve-wars">Curve wars</a> all over again. Except now it’s taking place at the Berachain protocol level



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Berachain mainnet debuts as BERA token hits $1B market cap

David Canellis

This is a segment from the Empire newsletter. To read full editions, <a href="https://blockworks.co/newsletter/empire">subscribe</a>.



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They say crypto rapidly <a href="https://x.com/naiivememe/status/1789562418550669617/photo/1">ages</a> you. Look no further for proof than the ETH chart.



More specifically, the ETH chart in comparison to Intel stock. Their trajectories share an uncanny resemblance.



The chart below plots the price of ETH in pink against Intel stock in blue but with caveats:



<ul class="wp-block-list">
<li>INTC is set over the past 50 years (it went public in 1971) on weekly intervals.</li>



<li>ETH is set over the past seven years on daily intervals.</li>



<li>ETH is advanced by around two and a half years — so it starts in Jan 2018 rather than August 2015.</li>
</ul>



As you can see, ETH has done almost exactly what Intel stock has achieved, just seven times as quickly.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdbonS5VYspwoOqhFkZfcI91u2B9zuilZxDmk4wuK4YVLxsqDxj5gTeiOXBj38I_0S7vHl_5ovLcSgBtq6WgwowAtcI4Md02CIk0Cvpb_j31lnO_CfQbMv6TLmsubvgCPujqn7eew?key=JOAUs5lZRL4PgoRC0B8h7JAu" alt=""/><figcaption class="wp-element-caption">It’s not all bad news: Intel stock has recently tanked harder than ETH</figcaption></figure>



Comparing cryptocurrencies and stocks doesn’t make a lot of sense. Ethereum is not a <a href="https://www.vaneck.com/pl/en/blog/digital-assets/a-potential-valuation-methodology-for-ethereum/">business</a> in the same way that Intel is.&nbsp;



Ethereum is a decentralized network that sells blockspace to apps and other protocols that service users in some way — far from a chipmaker with factories, employees, board members and CEOs.



Still, I can’t help but draw similarities between Ethereum and Intel, at least in terms of narrative arcs.&nbsp;



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfB8rjmhX7HGrejCI8tRofdPPaAXVsgpcDkiflLmtfjIJYCqdz6gk2yGmFop-jjldNxhXotcUT8ssSLaHgmWtc6YAGm87EV1cJPmo8JO3TTrC_mnD72-yMuBIwBIQZ6Qdv8OV2Wtg?key=JOAUs5lZRL4PgoRC0B8h7JAu" alt=""/><figcaption class="wp-element-caption">ETH’s market cap is now about four times that of Intel stock</figcaption></figure>



Top brain Vitalik Buterin and the non-profit Ethereum Foundation (EF) he leads are still <a href="https://blockworks.co/news/steep-disconnect-ef-crypto-community">under fire</a> for supposedly misaligning themselves with the modern crypto community — prioritizing infrastructure over exciting new apps that properly accrue value to ETH.



That disconnect has contributed to massively increased market and mindshare for rival Solana and a ETH/BTC ratio at four-year lows.



Intel’s board meanwhile <a href="https://www.cnbc.com/2024/12/02/intel-ceo-pat-gelsinger-is-out.html">ousted</a> its CEO Pat Gelsinger in December over concerns that he&#8217;d failed to capitalize on the AI boom and could no longer stage a comeback against Nvidia.&nbsp;



Intel had long been the most valuable US chipmaker until Nvidia flipped its stock in mid-2020. Many tip SOL to potentially flip ETH somewhere down the line.



If the eerie correlation with Intel stock persists (and that’s a big if), perhaps it could happen sooner rather than later.



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ETH is speedrunning the 50-year Intel chart

Jack Kubinec

This is a segment from the Lightspeed newsletter. To read full editions, <a href="https://blockworks.co/newsletter/lightspeed">subscribe</a>.



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Solana’s validators are about to see a major income bump, but the protocol lacks a way for them to share the wealth with their stakers.&nbsp;



In May, Solana validators <a href="https://blockworks.co/news/solana-validators-tackle-side-deals">passed a proposal</a> to send 100% of priority fees — which are extra funds users can pay for a better chance of landing their transactions — to validators. The proposal’s implementation now seems imminent, but some are calling for Solana to pump the brakes until validators are able to share the extra fees with stakers.&nbsp;



Validators, who run Solana’s software and create blocks in the Solana blockchain, currently receive half of SOL-denominated priority fees, and the other half is burned, or effectively removed from circulation. This leads some validators to strike side deals with users, since a user paying 75% of the priority fee directly to the validator outside of the Solana protocol would benefit both parties, for instance.



Named SIMD-0096, the May proposal aims to end these side deals. But Solana lacks an in-protocol way for validators to share priority fees with stakers — who delegate their SOL to validators for a share of the validator rewards — so the increased SOL inflation would essentially benefit validators at the expense of everyone else.&nbsp;



Some Solana developers have <a href="https://x.com/trentdotsol/status/1887175400159428850">argued</a> that SIMD-0096 could incentivize priority fee spoofing, or validators artificially raising priority fees to take home more rewards. Still, the change is being implemented.



Solana priority fees totaled some $240 million in January, according to Blockworks Research. Implementing SIMD-0096 would have increased Solana’s real economic value, a Blockworks Research metric for blockchain value accrual, by roughly 22% last month.



A newer proposal, <a href="https://x.com/blockworksres/status/1865094406937944571">SIMD-0123</a>, would give validators the ability to directly share priority fees with stakers. As things stand, this proposal has little chance of being implemented by the time SIMD-0096 goes into effect, Solana Foundation validator relations lead Tim Garcia said on X.&nbsp;



Some are <a href="https://x.com/smyyguy/status/1880341498824388732">calling</a> for the network to only approve both proposals together so that stakers can share in the windfall. If these calls aren’t heeded, then stakers will have to rely on the goodwill of validators passing along extra rewards until SIMD-0123 is enabled.



“[V]alidators are only overcompensated if they do not share back the rewards ([H]elius will share back for example),” Mert Mumtaz, CEO of the largest Solana validator in Helius, said in a text. Solana infrastructure shop Jito also offers a way to distribute priority fees via <a href="https://substack.com/home/post/p-156136928?utm_campaign=post&amp;utm_medium=web">TipRouter</a>, a piece of software built for Jito’s restaking protocol that distributes validator rewards.



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Solana validator revenue is about to jump, but stakers might miss out

Katherine Ross

This is a segment from the Empire newsletter. To read full editions, <a href="https://blockworks.co/newsletter/empire">subscribe</a>.



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Today’s the day!



Berachain’s mainnet is finally launching.&nbsp;



Back in August, we looked at how both Berachain and Monad were able to<a href="https://blockworks.co/news/empire-newsletter-layer-1s-professor-coins"> carve their own paths</a> in a very crowded space, and David even <a href="https://empire-31ed59.beehiiv.com/p/eth-s-big-problem?_bhlid=c401c659d0bc1c1ccc2bea7bbefd1fe056fa5b09&amp;last_resource_guid=Post%3A40ad4880-04f7-4d97-912c-95b79fb8975f&amp;utm_campaign=eth-s-big-problem&amp;utm_medium=newsletter&amp;utm_source=empire-31ed59.beehiiv.com">referred</a> to them as potential Solana killers just the other day.



So it’s fair to say the hype train left the station a long time ago.&nbsp;



“Simply put, in a landscape where most blockchain apps and chains today survive or thrive irrespective of one another, Berachain is a philosophical challenge to the current chain-app model. We believe that the network’s novel Proof of Liquidity (PoL) consensus mechanism, which lets network validators direct block rewards to certain apps built on Berachain, could fundamentally reshape how the entire industry views the relationship between builders and blockchains,” Framework’s Michael Anderson explained.&nbsp;



Prior to mainnet launch, Berachain raised a fair amount of capital. In its Series B alone — which was co-led by Framework — it raised $100 million, and that’s not counting the $42 million Series A round.&nbsp;



“The Berachain community is also by far the most fanatical we’ve seen since our involvement in the early days of Chainlink, and we think that the combination of that raw enthusiasm with a real means to influence the direction of the network will be incredibly powerful,” Anderson continued.&nbsp;



Projects that raise as much capital as Berachain are few and far between. But raising more than $140 million before even launching your mainnet is no small sum, so it’s understandable that some might question why crypto projects are looking to raise a ton of money. And why VCs are willing to back such a project.&nbsp;



MV Global’s Tom Dunleavy doesn’t think that projects like Berachain should be raising as much capital. He’d prefer to see raises around $10 million, he wrote in a post on X.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">No project in crypto needs to raise over $10m. Full stop. I frankly think alot of these big projects (<a href="https://twitter.com/berachain?ref_src=twsrc%5Etfw">@berachain</a> , <a href="https://twitter.com/monad_xyz?ref_src=twsrc%5Etfw">@monad_xyz</a> , <a href="https://twitter.com/AbstractChain?ref_src=twsrc%5Etfw">@AbstractChain</a>, <a href="https://twitter.com/infinex_app?ref_src=twsrc%5Etfw">@infinex_app</a>, <a href="https://twitter.com/movementlabsxyz?ref_src=twsrc%5Etfw">@movementlabsxyz</a> etc) get their valuations strictly because of the need for BIG capital allocations from large VCs.…&mdash; Tom Dunleavy (@dunleavy89) <a href="https://twitter.com/dunleavy89/status/1887135982073376894?ref_src=twsrc%5Etfw">February 5, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



“The valuations associated with big capital intakes set the bar so high that they are priced for perfection for what their user and revenue metrics will be 10 years in the future,” he argued.&nbsp;



But putting a cap on the amount raised isn’t a solution. Mason Nystrom, a junior partner at Pantera, said that there are a variety of reasons for projects to receive funding above $10 million. That includes competition, talent, volatility and opportunity.



Talent is expensive, and Pantera’s own comp survey from last year pegged the average salary at $176,000 for US employees.&nbsp;



Competition and volatility go hand-in-hand. Obviously there’s a lot of competition in the space, especially as an L1. Then you add in the cyclical nature of crypto and, well, the money starts to add up.&nbsp;



Finally, it’s all about opportunity: “The nature of success is power-lawed. The blockchain networks that succeed will be centi-billion to trillion dollar networks. The sheer size of the opportunity presented by blockchain networks (e.g. L1s) enables them to take on more capital to compete to be the power law winners,” Nystrom said.&nbsp;



At this point, crypto funding isn’t out of control and big capital raises aren’t happening every day. If a project manages to close a multi-hundred million dollar round, I say let them cook.



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Why venture capital money is necessary in crypto

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About two weeks after the SEC formed a <a href="https://blockworks.co/news/new-sec-crypto-task-force">crypto task force</a>, unit leader Hester Peirce checked in.&nbsp;&nbsp;



The rough message: We’re working on a bunch of things, but please be patient.&nbsp;



Peirce (no surprise) criticized the previous path taken by the SEC. It “incessantly slammed on the enforcement brakes as it lurched along a meandering route with a destination not discernible to anyone.”



Further, its handling of crypto “has been marked by legal imprecision and commercial impracticality” (in case you didn’t already know how Peirce felt).&nbsp;



It’ll take time to “disentangle all these strands,” she noted several times — ongoing litigation included. Seemingly related, the SEC plans to scale back staff focused on crypto enforcement actions, the New York Times <a href="https://www.nytimes.com/2025/02/04/business/sec-crypto-task-force.html">reported</a>.&nbsp;



Among 10 listed priorities, Pierce notes the status of crypto assets under the securities laws as “fundamental to resolving many other questions.” This jibes with what Bitwise general counsel Katherine Dowling <a href="https://blockworks.co/news/sec-in-purgatorial-state">told me</a> about the “dolphins in the fish nets” — alluding to assets the SEC has previously <a href="https://blockworks.co/news/the-sec-says-these-crypto-assets-are-securities-their-reasoning-is-wrong#">labeled as securities</a>.



Another priority is to identify areas that fall outside the SEC’s jurisdiction — a signal the agency intends to stay in its lane.



Other focuses include creating a framework for custodying client assets; offering clarity on if and how crypto lending and staking programs are covered by securities laws; and creating some sort of cross-border sandbox for crypto projects.



On crypto ETFs, the task force will be clear about its approach when approving/disapproving planned products, Peirce promises. As issuers look to add staking and in-kind creations/redemptions to existing products, she added, the SEC may first need to make progress on custody (and other) issues.



The SEC is working toward these goals “in an orderly, practical and legally defensible way,” Peirce made clear.



And so, she reminds those eager for change: “It took us a long time to get into this mess, and it is going to take us some time to get out of it.”



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SEC’s Peirce points to priorities, asks for patience 

Casey Wagner

This is a segment from the Forward Guidance newsletter. To read full editions, <a href="https://blockworks.co/newsletter/forwardguidance">subscribe</a>.



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Congress has been busy (by its standards, at least) on the crypto front.



First, David Sacks — the country’s first <a href="https://blockworks.co/news/trump-picks-crypto-czar">AI and crypto “czar”</a>— hosted an inaugural press conference, during which he declared a commitment to keeping digital asset innovation in the US.&nbsp;



House and Senate Committee leadership also took this opportunity to unveil a new bicameral crypto working group. If this sounds like a committee of committees, it’s because that’s pretty much exactly what it is.&nbsp;



Meanwhile, Sen. Bill Hagerty introduced a new stablecoin bill. The language is pretty similar to text we saw last Congress, focusing on reserve requirements and audits. It also allows non-banks to issue stablecoins, and has at least some bipartisan support, thanks to longtime crypto advocate Democrat Sen. Kirsten Gillibrand.&nbsp;



Then, today, we got the first crypto-related hearing of the session. The Senate Banking Committee this morning gathered to discuss debanking and so-called “<a href="https://blockworks.co/news/operation-choke-point-2-0">Operation Chokepoint 2.0</a>.”&nbsp;



The hearing coincides with <a href="https://www.barrons.com/articles/bitcoin-trump-crypto-banks-d6de3352">reports</a> that the FDIC plans to adjust its crypto guidelines and allow banks to participate in some crypto activities.&nbsp;



It started out mellow enough. Chair Tim Scott talked about a life-changing loan he got from a community bank in the 90s. Ranking Member Elizabeth Warren said her office has identified more than 11,000 cases of individuals complaining of limited access to banking services.&nbsp;



It seems both parties emphatically agree that <a href="https://blockworks.co/news/solana-teams-analyze-debanking-narrative">debanking is happening</a>, and it’s a problem. But what’s causing it and how to stop it are points of contention. It didn’t take long for the party lines to show.&nbsp;



Being stripped of banking privileges for having a few bounced checks is unfair, said Warren, who focused most of her statements on individual customers vs. companies.



Not so fast, Sen. Thom Tillis countered. Banks shouldn’t be forced to service all customers.&nbsp;



“That&#8217;s called managing a risk,” he said.&nbsp;



Whether or not banks that refuse services to certain businesses and customers are doing so out of risk management or at the direction of federal regulators was also a point of contention.&nbsp;



“The CFPB is the one agency that is actively working to stop unfair debanking,” Warren said. “Right now, the agency has five different rules — either in place or in progress — that would help prevent debanking by addressing some of the root causes, from overdraft fee practices to religious discrimination.” The comment comes on the heels of the CFPB’s new acting chair, Treasury Secretary Scott Bessent ordering the agency to <a href="https://blockworks.co/news/bessent-locks-down-on-cfpb">halt virtually all</a> pending operations. 



Several Republicans argued the opposite. The issue of debanking is only exacerbated by federal agencies.&nbsp;



“Under the Biden administration, we&#8217;ve seen the rise of what many are calling Operation Chokepoint 2.0 where federal regulators exploited their power, pressuring banks to cut off services to individuals and businesses with conservative dispositions, or folks aligned with industries they just didn’t like,” Scott said.&nbsp;



Other Democrats took the hearing as an opportunity to voice concerns about DOGE, the new task force led by Elon Musk, and its access to the Treasury’s payments system.&nbsp;



“The DOGE crowd, there is one person [who] maybe has clearance, and the others, we have no freaking idea,” Sen. Mark Warner said. He declined to use his allotted time to ask witnesses any questions.&nbsp;



Like I said, politics is getting in the way. The victory lap the crypto industry has run since election night is bumping into some hurdles.



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The view from Capitol Hill

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After bitcoin’s ascent to $109,000 and a more recent decline below $93,000, the asset’s price has fluctuated between those levels.



While price predictions remain a normal part of industry fodder, Copper.co took a bit of a different approach.&nbsp;



The crypto custody firm blended technical indicators (like the <a href="https://www.investopedia.com/terms/r/rsi.asp#:~:text=The%20relative%20strength%20index%20(RSI,scale%20of%20zero%20to%20100.">Relative Strength Index</a>) with historical returns, volatility clustering and daily range behavior to forecast possible BTC price outcomes.



“Our main goal was not to pinpoint a specific final peak for bitcoin, but instead to identify price points at which traders might consider the market to be overextended,” Copper.co research head Fadi Aboualfa said in a statement.



The firm’s model indicated “concern levels” for BTC between $140,000 and $200,000 throughout 2025. High-accuracy (up to 91%) simulations paralleling last year’s calmer volatility profile signaled a potential breach near $165,000 in June.&nbsp;



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXefGI98wYy28Ob827piUkssIWdtBNPyFmgdPvOcGwREZ8E73gWX2uNE2EmKYFqhU7KwHH1voG6nyAXXRCbJ63O9QwAuw_VAv4plSZaJWMvb2yf7xQGaxLGIZsOJJks16YOv94lIRw?key=dUK85oCSsW1eFD9PF9OaHHNe" alt=""/></figure>



“To clarify, these are not levels bitcoin will necessarily reach, but if it does, the market might be suggesting a potential peak,” the study explains.&nbsp;



The report calls bitcoin’s declining 30-day rolling volatility an “often-overlooked factor” — noting that low volatility allows a longer, smoother price climb. The simulations found any BTC price dip is projected to be short-lived.&nbsp;



Targets can, of course, be negated by external catalysts, the report warns. “If bitcoin hits some of these upper limit projections and the next day the US does indeed announce a <a href="https://blockworks.co/news/empire-newsletter-strategic-bitcoin-reserve">strategic reserve</a>, are you shorting?” it poses. “Unlikely.”



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Copper lays out bitcoin price targets, with a twist

Macauley Peterson

Crypto is largely an attention game, with projects in a race to attract new and talented developers as well as users. Cosmos-based Hyperweb is betting big on JavaScript as the key to unlocking mainstream adoption, and <a href="https://hyperweb.io/whitepaper">released</a> its white paper Wednesday.



Officially introduced at Cosmoverse Dubai and supported by notable figures like Ethan Buchman, Hyperweb aims to create a universal JavaScript virtual machine (HVM) that enables seamless cross-chain smart contract execution.



The idea itself is of course nothing new, and even among JavaScript proponents, chains like Agoric have pioneered the concept of “<a href="https://agoric.com/blog/announcements/agoric-orchestration-api-live-on-mainnet-long-lived-smart-contracts-now">orchestrating</a>” actions across chains.



Agoric, a Cosmos OG project, developed “hardened JavaScript” which has been used in production, for instance, in <a href="https://blockworks.co/news/metamask-snaps-agoric-javascript">MetaMask Snaps</a>.



Unlike Agoric, which also leverages JavaScript with additional abstraction layers, Hyperweb aims to be a pure TypeScript ecosystem. Co-founder Dan Lynch describes the difference by way of analogy to modern vs. medieval spoken language.



&#8220;Agoric is kind of like old English — like the Shakespearean ‘where art thou’ — so it&#8217;s definitely something that we can decipher, but it&#8217;s not the way that we speak [today],” Lynch told Blockworks. “There’s too much nomenclature in Agoric…if you’re a programmer, you have to juggle all these things just to try to do what you’re doing,” he said.



<h2 class="wp-block-heading">A fragmented Web3 developer experience</h2>



Lynch describes the current state of Web3 development as unnecessarily complex and fragmented. Despite his 15 years as a chief technology officer and deep technical expertise, jumping into building on Cosmos in 2022 was a nightmare.



“It was one of the hardest things I ever tried to do,” Lynch said. This experience convinced him that the core issue in blockchain adoption isn’t just infrastructure — it’s the developer experience.



Plus, there just aren’t enough qualified Web3 developers. This dilemma has driven efforts to bring Web2 devs into Web3 from the <a href="https://blockworks.co/news/solving-web3s-developer-problem-web2">much larger JavaScript</a> and <a href="https://blockworks.co/news/algorand-adopts-python">Python</a> communities.



Hyperweb’s HVM (Hyperweb Virtual Machine) is a JavaScript-native execution environment that allows developers to write smart contracts in <a href="https://www.typescriptlang.org/">TypeScript</a>, doing an end-run around the learning curve of building in Solidity, Rust or Move.



The use of pure TypeScript — and minimal framework overhead — puts an emphasis on intuitive design. The team tested its system with a group of UC Berkeley students, providing only a boilerplate example contract with no documentation:



“Within a week, they had all 10 contracts written… they were like, ‘Oh my gosh, that was so fun and simple!’” Lynch said.



HVM will also be its own sovereign chain. Pitched as the Interchain JavaScript Hub, it will provide interpreters that tailor the same JavaScript code to different blockchain runtimes (EVM, CosmWasm, Solana VM, etc.). This makes it easier to deploy applications across chains without major rewrites, Lynch argues.



The project’s team previously was supported by a grant from the Interchain Foundation, but is on its own following the ICF’s <a href="https://blockworks.co/news/cosmos-ecosystem-changes-after-skip-acquisition">acquisition of Skip</a> to form Interchain Inc. Hyperweb’s forerunner, Cosmology — a tech suite enabling developers to build Web3 applications in the Cosmos ecosystem — announced the closure of a $5 million seed funding round last March — its only VC funding to date.



<h2 class="wp-block-heading">Tokenomics and incentives</h2>



Unlike most proof-of-stake Cosmos chains, Hyperweb is exploring a proof-of-authority (PoA) model, <a href="https://blockworks.co/news/noble-ditches-cosmos-interchain-security">like stablecoin distributor Noble</a>. It uses a smaller set of validators to reduce staking inflation and sell pressure.



“Cosmos chain tokenomics are broken,” Lynch said, positing that the predominant security model of staking inflation “is unsustainable.”



Fees on Hyperchain will be denominated in Noble USDC, and the native token will function instead as a revenue-sharing mechanism to limit reliance on inflationary rewards.



Long term, Hyperweb plans to integrate Ethereum, Solana and other non-Cosmos chains, enabling truly universal smart contract execution. But that’s a ways off. Details on the Hyperweb token are also still under wraps.



For now, if you’re looking to get in early on Hyperweb, the project has already launched a local net that allows developers to start experimenting with JavaScript-based smart contracts. A public testnet is coming soon, with opportunities for builders to be rewarded for their contributions — potentially in a way similar to <a href="https://tea.xyz/">Tea Protocol’s</a> retrospective incentives for GitHub activity.



The vision for Hyperweb is ambitious — a unified, developer-friendly blockchain ecosystem that eliminates the siloes between old and new.&nbsp;



As Lynch puts it: “Let’s end the war between Web2 and Web3. It’s all the web.”



With millions of users of Hyperweb’s developer tooling and contributions coming from giants like Google, Binance and Supabase, Hyperweb might just be the key to breaking the developer logjam.



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Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



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The JavaScript virtual machine that could change Web3

This is a segment from the Empire newsletter. To read full editions, <a href="https://blockworks.co/newsletter/empire">subscribe</a>.



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ETH’s not having a good time.&nbsp;



And it didn’t just start with this weekend’s selloff. We’ve got “<a href="https://blockworks.co/news/ethereum-tech-vs-money">wartime</a>” Vitalik Buterin, <a href="https://www.coindesk.com/opinion/2025/01/21/the-ethereum-foundation-has-lost-its-way">criticisms</a> of the Ethereum Foundation, not to mention price action (it’s down 10% over the past week).&nbsp;



On the positive side, at least Eric Trump still seems bullish and — in a now-edited post on X — initially encouraged folks to buy ETH, adding “you can thank me later.” But I’m not sure that’s the type of support anybody wants right now.&nbsp;



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">I guess “you can thank me later” sounded a bit too crypto KOL grifter even for Eric. <a href="https://t.co/sgo6rZ4hUp">pic.twitter.com/sgo6rZ4hUp</a>&mdash; Stats (@punk9059) <a href="https://twitter.com/punk9059/status/1886544330762150262?ref_src=twsrc%5Etfw">February 3, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



There’s a lot of discussion about what went wrong and how to right the ship. The recent sentiment is nothing new, Tribe Capital’s Evan Park told me.&nbsp;



“When I was at Devcon, I noticed a steep disconnect between the foundation focusing on infrastructure, while retail users and the broader crypto community were demanding exciting new applications. On the one hand, ETH L2s like Base, Ink, and MegaETH are positioned to onboard new applications and users. However, what Ethereum leaders need to realize is that they face accelerating competition from established L1s like Solana and new L1s like Berachain and Monad, which are poised to dominate mindshare over the next year,” he explained.&nbsp;



Even with Buterin signaling a “greater sense of urgency,” we’re in a ‘can’t stop, won’t stop’ moment in the market. Berachain, just yesterday, announced that its mainnet is launching tomorrow.



<figure class="wp-block-embed is-type-rich is-provider-twitter wp-block-embed-twitter"><div class="wp-block-embed__wrapper">
<blockquote class="twitter-tweet" data-width="550" data-dnt="true">Berachain&#39;s mainnet will launch on February 6th, 2025. Welcome to Q5.&mdash; Berachain Foundation 🐻⛓ (@berachain) <a href="https://twitter.com/berachain/status/1886777450480259265?ref_src=twsrc%5Etfw">February 4, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



In my conversation with Blockworks Research’s Ryan Connor, he explained that he and his team had initially been “excited” about Max Resnick’s potential cultural impact at ETH. But when that didn’t pan out, and <a href="https://blockworks.co/news/ethereum-researcher-joins-solana-anza">Resnick jumped to Solana</a>, the excitement dissipated.&nbsp;



The situation now is “pretty dire” post-Resnick but Connor told me that there are still ways to, well, make ETH great again.



“Bringing execution back to the base layer is the very simple way of putting it. How do you do that? You scale it technically. You compete with the L2s. You change the culture of the ETH organization, the people who are shipping the upgrades, and the app developers that live on that chain. [It’s] way easier said than done. You have to basically abandon these like very niche political, philosophical views that many people in that ecosystem hold [though] I think it&#8217;s clear over a multi-year period that they&#8217;re not willing to do,” he explained.



That includes leaving the “hardware requirements” focus at the door.&nbsp;



While there are technical things that can be done, it’s going to come down to changing the culture. And that, Connor acknowledged, is not going to be an easy battle to win.&nbsp;



Connor compared it to the Department of Motor Vehicles: It doesn’t matter who’s in charge of the department, they can’t just switch on “wartime” mode and change everything. It just, unfortunately, doesn’t work like that.&nbsp;



Whether or not Buterin and EF are politicked to the point of being similar to a government department remains to be seen.&nbsp;



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Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



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‘Steep disconnect’ between Ethereum Foundation and crypto community

This is a segment from the Empire newsletter. To read full editions, <a href="https://blockworks.co/newsletter/empire">subscribe</a>.



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The days of bullish exchange listings may be over.



I spent the morning reviewing price data for every coin listed on Binance and Coinbase since the start of last year. The results are rough.



In total, there were 84 new listings across both exchanges — 45 on Binance and 40 on Coinbase.



As of this morning, only 12 of those listings have increased in value from their initial trade price on either platform.



On the chart below, each circle represents a different coin listing, starting on the far left in January 2024 and ending on the right with the most recent new addition on Coinbase, VVV.



As you can see, VVV’s 40% collapse on its list price — despite its rally in its first few hours of trade — is not an outlier.&nbsp;



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdoizus-Xt4G4Wz8_wJLWbde4nnMfuVCSYS_5m3lMm5SbttObp5Mle3vYZZNPsCnHU2ZFumpo_bPlDU3tKSOSVSZW-h2yj7CiZKKLcfLKK0Hb6y66WGim2Ky6yL30r9ZeNVETr8?key=JOAUs5lZRL4PgoRC0B8h7JAu" alt=""/><figcaption class="wp-element-caption">Not shown: MOVE’s listing on Binance</figcaption></figure>



Since December, more than a dozen listings have suffered the same fate. MOODENG, MOG, MOVE, ACX, ORCA, GIGA, ME, TURBO, VELO, USUAL, AIXBT, CGPT, COOKIE, PNUT and TRUMP have all lose value since hitting either Coinbase or Binance —&nbsp;in many cases by more than two&#8211;thirds.



Of course, there have been winners. AERO, the native token for Base liquidity hub Aerodrome, is up 640% since it was listed on Coinbase in February last year.&nbsp;



DRIFT, the token for the Solana perps DEX, and ONDO, for the real-world asset platform, have also posted similarly great returns.



Granted, we already know that most cryptocurrencies probably won’t make it. So perhaps it’s all par for the course.&nbsp;



Coins, especially smaller-cap ones, are painfully tied to whatever happens to the price of bitcoin. Still, it’s obvious that it’s only a matter of time until the market realizes the paradigm has shifted. 



Historically, common sense has suggested that an exchange listing is a milestone for a coin — opening their markets up to wider investor bases and deeper liquidity.  It wouldn’t surprise me if we start to see the general public urging projects not to list their coins on major exchanges moving forward.

Why major exchange listings may soon be considered bearish

This is a segment from the Lightspeed newsletter. To read full editions, <a href="https://blockworks.co/newsletter/lightspeed">subscribe</a>.



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The crypto-powered cellular network Helium Mobile overhauled its pricing model for new subscribers — which formerly offered unlimited call, text and data for $20 per month.



Invite-only free plans come with 3 GB of data, 300 texts, and 100 minutes per month, $15 plans offer 10 GB of data with unlimited talk and text, and unlimited plans are now $30 per month. Legacy subscribers to the $20 per month plan can keep their existing price. It also introduced a points program to reward things like location sharing that users can redeem for gift cards.&nbsp;



The moves come amid a turbulent last several months that included layoffs and an SEC lawsuit at Helium Mobile’s parent company Nova Labs.



Helium Mobile is one of the most ambitious attempts at building a decentralized physical infrastructure network — DePIN for short — a popular concept among the “<a href="https://blockworks.co/news/crypto-lack-of-utility">crypto should do things</a>” crowd.&nbsp;



Helium Mobile comprises a network of individuals plugging in mobile hotspots to create a patchwork of what are essentially mini cell towers. Subscribers use Helium’s service where coverage is available and get T-Mobile service elsewhere. Helium Mobile rolled out its <a href="https://blockworks.co/news/helium-cell-plan-goes-nationwide">unlimited plan nationwide</a> in the US for $20 per month in late 2023.&nbsp;



$20 per month is a fraction of what legacy cell carriers charge for unlimited cellular plans, and combined with the fact that Helium Mobile must pay T-Mobile for some of the data subscribers use, it was never going to last forever. More price options are also nice for consumers — if you use less than 10 GB of data in a month, you no longer need to subsidize usage from data guzzlers.



Helium Mobile’s new free tier is a cool concept, but it’s not clear to me that it’ll find much demand — do you know anyone, particularly in the crypto world, who uses less than three gigs of data and 100 call minutes in a month? One possible target demographic could be <a href="https://blockworks.co/news/2025-solana-product-launches">Solana mobile phone</a> holders, who may own the devices as second phones and wouldn’t want to pay for a second cell plan.



Coco Tang, general manager of Helium Mobile subscribers, said the free plan could also be a good option for consumers wanting to try Helium before fully making the switch. Helium Mobile developer Nova Labs will hope the new pricing model can drive up revenue following what has been a turbulent year for the company. It laid off 36% of its staff in August, <a href="https://blockworks.co/news/helium-parent-company-layoffs">Lightspeed reported exclusively</a>. Then a couple weeks ago, <a href="https://blockworks.co/news/gary-gensler-resigning">outgoing SEC Chair</a> Gary Gensler made his last enforcement action a <a href="https://blockworks.co/news/sec-charges-nova-labs-with-fraud">lawsuit against Nova Labs</a> charging the company with fraud.



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Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



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Helium Mobile introduces free plan, hikes price for unlimited data

This is a segment from the Forward Guidance newsletter. To read full editions, <a href="https://blockworks.co/newsletter/forwardguidance">subscribe</a>.



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Newly-confirmed Treasury Secretary Scott Bessent now has an additional federal agency to oversee, and he’s hitting the ground running.&nbsp;



Bessent was named acting head of the Consumer Financial Protection Bureau yesterday after President Trump fired Rohit Chopra. Chopra, a Biden-era nominee, was known for his aggressive regulatory approach at the agency, which saw major fines against names including Wells Fargo and Citigroup.&nbsp;



Now, Bessent has essentially put the CFPB on lockdown.&nbsp;



Staffers are to halt any litigation, investigation or enforcement proceedings and refrain from issuing public statements. The effective dates for any previously approved rules will also be suspended, per a memo shared with Bloomberg.&nbsp;



The switch-up was seen as particularly positive for the crypto industry, which was also a target under Chopra. The CFPB last month proposed expanding the agency’s electronic funds oversight to include cryptocurrencies.&nbsp;



While the rule is unlikely to ever be finalized, we will note that even the existence of such a proposal could influence pending litigation matters. The language in the proposal could also be adopted by states, several of which already have almost identical electronic fund transfer regulations.&nbsp;



The Trump administration has not yet nominated anyone to head the CFPB. It’s also unclear whether Bessent will hold the acting role until a permanent head is tapped.



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Start your day with top crypto insights from David Canellis and Katherine Ross. <a href="https://blockworks.co/newsletter/empire">Subscribe to the Empire newsletter</a>.



Explore the growing intersection between crypto, macroeconomics, policy and finance with Ben Strack, Casey Wagner and Felix Jauvin. <a href="https://blockworks.co/newsletter/onthemargin">Subscribe to the Forward Guidance newsletter</a>.



Get alpha directly in your inbox with the <a href="https://blockworks.co/newsletter/research">0xResearch newsletter</a> — market highlights, charts, degen trade ideas, governance updates, and more.



The Lightspeed newsletter is all things Solana, in your inbox, every day. <a href="https://blockworks.co/newsletter/lightspeed">Subscribe to daily Solana news</a> from Jack Kubinec and Jeff Albus.

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