Zebec Protocol

Byron Gilliam

This is a segment from The Breakdown newsletter. To read more editions, <a href="https://blockworks.co/brand/the-breakdown">subscribe</a>



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<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
&#8220;What&#8217;s in a name? That which we call a rose / By any other name would smell as sweet.&#8221; — William Shakespeare, Romeo and Juliet
</blockquote>



The thing about pancakes is that they’re really just cake: flour, eggs, sugar, and butter, topped with more sugar.&nbsp;



But because they’re flat and branded as breakfast, it’s socially acceptable to eat them in the morning.



This is kind of weird: Even your anything-goes dad wouldn’t serve you leftover birthday cake for breakfast, but he wouldn’t think twice about making you pancakes.



Lawyers and accountants recognize this as a question of substance vs. form: The form of pancakes is breakfast food, but the substance is dessert.



In the Roman Storm trial, for example, the prosecution asked jurors to ignore the form of Tornado Cash — non-custodial, immutable smart contract code — and instead focus on the substance of what it enabled: money laundering.



The economic reality and true intent of an arrangement, they essentially argued, matter more than the technical form it takes.



In short, prosecutors accused Storm of using a technical innovation to cleverly sidestep the law.



This is what the rest of crypto is often accused of, too.



In substance, skeptics say, tokens are stocks, protocols are companies, labs entities are c-suites, staking yields are dividends, token burns are buybacks, airdrops are sometimes IPOs, DAOs are general partnerships, and stablecoins are bank accounts.



It’s often hard to argue with.



Crypto people commonly talk about their tokens as if they’re shares in for-profit companies, for example, and expect those profits to be returned to them in staking yields or token burns.&nbsp;



But they don’t want their tokens regulated like stocks…because they’re tokens.



Lab entities first get their tokens onto exchanges via an airdrop, but don’t want to file an S-1 with the SEC.



Many DAOs choose not to incorporate, but they all want the corporate benefit of limited liability.



Stablecoins are celebrated as a means for anyone, anywhere to have a US bank account, but we don’t want them subject to KYC checks.



This begs the questions: Is the form of crypto just a way to do the same, old finance things but without the rules?



Or is crypto something substantively new?



There’s no one answer, of course.



BTC, ETH, SOL, DOGE, AAVE and UNI, for example, are genuinely something new: tokens that accrue value from networks that are not controlled by anyone.



The VC firm a16z crypto helpfully <a href="https://a16zcrypto.com/posts/article/defining-tokens/#section--4">categorizes</a> these as “network tokens,” and contrasts them with “company-backed tokens,” which “derive value from an offchain application, product, or service operated by a company.”



These, it notes, “have historically mostly been used in the US to unlawfully circumvent securities laws.”



In other words, some tokens really are unregistered securities.



a16z’s distinction supports the substance-over-form view: Just because something takes the form of a token doesn’t make it exempt from securities or banking laws.



A further crypto category they list — “security tokens” — makes this point even more distinct: A tokenized security is still a security, even when it takes the form of a token.



By that logic, tokens that are substantively stocks should be regulated as such, stablecoins should be regulated like bank deposits, some airdrops should register with the SEC, and — most importantly — pancakes should only be served for dessert.



Pancakes remain cake, whatever name you call them by and whatever form you serve them in.&nbsp;



But when it comes to the law, sometimes form is substance.



Roman Storm’s many defenders argue that Tornado Cash’s form is what really matters: Because the code was autonomous and permissionless, Storm wasn’t “transmitting” anything and had no practical ability to stop or redirect transactions.



His attorneys would likely say the government mischaracterized the substance of Tornado Cash by shoehorning a peer-to-peer protocol into the legal definition of a financial middleman.



The defense might even have argued that the government implicitly conceded this point when it chose to prosecute Storm not for writing code, but for operating the Tornado Cash protocol.



Storm said the jury’s partial verdict was “a big win” for him, and that he expects his conviction of operating a money transmitter to be overturned.



But the guilty verdict might serve as a warning that crypto will ultimately be judged by the substance, and not just the form, of what it creates.



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The Breakdown Newsletter

Will crypto be judged on substance or form?

Ben Strack

This is a segment from the Forward Guidance newsletter. To read full editions, <a href="https://blockworks.co/newsletter/forward-guidance" target="_blank" rel="noreferrer noopener">subscribe</a>.



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Those who got into the crypto space via bitcoin are likely having trouble ignoring all the other crypto token names they come across.&nbsp;



Bitcoin’s digital gold narrative has resonated with retail investors and institutions alike. Though BTC’s price has dropped of late (trading below $110,000 on Tuesday, down nearly 7% over the past month), it’s up ~70% from a year ago.



Altcoin rallies typically follow strong bitcoin performance as investors assess the potential of other projects, notes zondacrypto CEO Przemyslaw Kral. That’s one reason why he’s expecting an “altcoin autumn.”



“Diverse opportunities emerge alongside macroeconomic tailwinds,” Kral added. “However, they must acknowledge that the days of broad altcoin rallies, driven purely by hype or vibes, may be behind us.&#8221;



Speaking of macro tailwinds, perhaps you saw my <a href="https://blockworks.co/news/crypto-markets-post-jackson-hole">post-Jackson Hole market check-in</a>. Globe 3 Capital CIO Matt Lason told me yesterday that expected rate cuts spurred the firm to hold more smaller cap altcoins “as we are seeing early signs of the long-awaited altcoin season.”



Lason declined to share which specific tokens the firm is moving into. But he noted that it targets “boring, deep-stack infrastructure plays that represent the future railroads and toll roads of Web3.” And protocols set to help usher in the next wave of users.



Regulatory developments also highlight the opportunity that exists beyond BTC. Enter SEC Chair Paul Atkins, who last month unveiled what he called “<a href="https://blockworks.co/news/sec-chair-atkins-project-crypto">Project Crypto</a>” — the agency’s plan to enable US financial markets to move onchain.&nbsp;



Bitwise CIO Matt Hougan <a href="https://experts.bitwiseinvestments.com/cio-memos/project-crypto-three-investments-poised-to-benefit-from-the-secs-vision">addressed</a> Atkins’ comments earlier this month. “It doesn’t take a genius to see it: If substantially all assets are going to move onto public blockchains, you want exposure to those blockchains.”



For one, ether has turned heads by surging 95% over the past six months. The ETH/BTC ratio is up ~60% so far this quarter, Compass Point analysts note — its highest level in a year.&nbsp;



Hougan also mentioned solana, cardano, avalanche, XRP, aptos, SUI and NEAR. He recommends exposure to these via an index fund, like the ones his firm and Grayscale are looking to convert into ETFs.&nbsp;&nbsp;



But Bitwise and others have flooded the SEC’s desk with single-asset ETF proposals too.&nbsp;



Though the agency again recently delayed its decision on spot solana ETFs, many expect those and others to launch in the coming months as the SEC finalizes general listing standards for crypto ETPs.&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">Bunch of XRP ETF filings being updated by issuers today. Almost certainly due to feedback from SEC. Good sign, but also mostly expected <a href="https://t.co/GiSL1kc6lt">pic.twitter.com/GiSL1kc6lt</a>&mdash; James Seyffart (@JSeyff) <a href="https://twitter.com/JSeyff/status/1959004033596743695?ref_src=twsrc%5Etfw">August 22, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
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And every day, it seems, we see more product proposals to give investors exposure to other tokens.&nbsp;



Just this morning, <a href="https://blockworks.co/news/bitwise-files-for-first-chainlink-etf-with-sec">Bitwise proposed</a> a Chainlink ETF. The decentralized blockchain oracle network’s native token, LINK, is on Ethereum. Also today, Canary revealed plans to launch an ETF that would hold the Trump memecoin.&nbsp;



Bitfinex analysts don’t expect a rising-tide-lifts-all-boats scenario for crypto until later this year. Meaning they think only when we get new investment vehicles for altcoins will we see capital meaningfully migrate there.



“These products are likely to generate sustained, price-agnostic demand, creating the conditions for a broader re-rating across the digital asset complex,” the analysts explained.



Then there’re all the public companies implementing different <a href="https://blockworks.co/news/crypto-treasury-companies-alt-season">crypto treasury strategies</a> (aka DATs). You already know about Strategy with bitcoin and <a href="https://blockworks.co/news/eth-treasury-companies-growth">BitMine Immersion with ETH</a>.&nbsp;



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXeS5CTFt18ASNd8Bp_3n0kmxasphrBQysytlwRCdcVjI1LqvT5OaayM_BQTMXuwr0xUICIU_wMDdruHQPHUPgrI6F29gkNPC9OG7iqAJo0GpV-J3ww43LKXEc9pujX5Jtpre3BD?key=h0VXlvra3z54CFCBiWYW5Q" alt=""/><figcaption class="wp-element-caption"><a href="https://blockworks.co/analytics/treasury-companies/crypto-treasury-companies-overview/crypto-treasury-companies-overview-2/">Source</a></figcaption></figure>



<a href=""></a>My colleague Donovan today <a href="https://blockworks.co/news/sol-digital-asset-treasuries-are-coming-in-size">wrote</a> about solana DATs. And Mill City Ventures just rebranded to SUI Group after closing its $450 million private placement to initiate SUI token purchases.



We also have Trump Media &amp; Technology Group set to establish a treasury company focused on buying CRO, the native token of the Cronos ecosystem. Majority-owned by Trump Media, Yorkville Acquisition Corp. and Crypto.com, the company expects to raise $1 billion for the treasury.



“It’s a large sandbox to sift through, but over time, the future winners of this amazing technology begin to reveal themselves,” Lason said of altcoin opportunities. “The key is to stay patient.”



I’ve indeed heard patience is a virtue. Until an AI bot takes over this newsletter, I’m not going anywhere.&nbsp;&nbsp;



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altcoins

Conditions are setting up a possible ‘altcoin autumn’

This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="https://blockworks.co/author/jeffrey-albus" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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Commerce Secretary Howard Lutnick announced during a Cabinet meeting on Aug. 26 that the Department of Commerce will begin issuing its statistical data — including Gross Domestic Product (GDP) — on the blockchain, describing President Trump as “the crypto president.”



Lutnick <a href="https://x.com/atrupar/status/1960408149778653543">framed</a> the initiative as a move to enhance data distribution by leveraging the inherent transparency, accessibility and immutability of the blockchain.



He said the plan will begin with GDP data but is intended to expand to additional government agencies.



“The Department of Commerce is going to start issuing its statistics on the blockchain because you are the crypto president,” Lutnick said.&nbsp;



The plan focuses on releasing GDP figures onchain to enable people to “use the blockchain for data distribution,” Lutnick said. “We’re going to make that available to the entire government so all of you can do it.”



He noted that officials are “just ironing out all the details” to implement the program.



If carried out, the program would represent one of the first major implementations of blockchain technology for US government economic reporting.



By publishing GDP figures onchain, the Commerce Department aims to make official statistics more accessible, verifiable and resistant to manipulation.



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Donald Trump

Commerce Secretary Lutnick says US will publish GDP data on blockchain

Kate Irwin

This is a segment from The Drop newsletter. To read full editions, <a href="https://blockworks.co/newsletter/the-drop" target="_blank" rel="noreferrer noopener">subscribe</a>.



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Zora cofounder Jacob Horne <a href="https://x.com/js_horne/status/1959987899346153716">said</a> yesterday that “process changes” are happening internally as a result of a public <a href="https://x.com/crystaltaixyz/status/1959628118810890509">controversy</a> around a supposed “@TysonFury” Zora account being created to represent the British heavyweight boxer on the crypto social app.&nbsp;



Horne seemingly promoted the celebrity’s account in an X post (which, like all Zora accounts, has a coin tied to it). But both Horne’s post and the Zora account in question have since been deleted.



Artemis engineer Crystal Tai flagged the issue after reportedly seeing her Fury creator coin tokens and trade history disappear from her Zora wallet after the celebrity account was taken down.



Blockchain analyst ZachXBT said that the short-lived @TysonFury Zora account was a “celeb coin rug” brought forward by a trader known as “<a href="https://www.youtube.com/watch?v=WYJAbrpwHVw">Sahil</a>.”



The analyst shared a screenshot showing a thread of emails from Sahil’s inbox around scheduling a meeting between Sahil and the Zora team, which Base’s Jesse Pollak <a href="https://x.com/jessepollak/status/1960002545172254770">said</a> was ultimately cancelled.



<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’m usually a big fan of <a href="https://twitter.com/zora?ref_src=twsrc%5Etfw">@zora</a>, but this is not ok. &#8211; a “verified” <a href="https://twitter.com/Tyson_Fury?ref_src=twsrc%5Etfw">@Tyson_Fury</a> account launched on zora &#8211; tweeted by <a href="https://twitter.com/js_horne?ref_src=twsrc%5Etfw">@js_horne</a> &#8211; then the zora account was deleted &#8211; jacob’s tweet deleted &#8211; the token + trade history wiped from my zora wallet there’s now no way to sell. sure, i… <a href="https://t.co/3BeWSjwMMm">pic.twitter.com/3BeWSjwMMm</a>&mdash; Crystal Tai (@crystaltaixyz) <a href="https://twitter.com/crystaltaixyz/status/1959628118810890509?ref_src=twsrc%5Etfw">August 24, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Sahil has been previously tied to celebrity coins and openly <a href="https://www.youtube.com/watch?v=d_oLziAyN_o">advises</a> traders to “just rug and rug again.”&nbsp;



“Keep extracting and keep rugging,” Sahil said in a video clip shared by Coffeezilla as part of an exposé published in June called “I got this celebrity scammer to confess.”



Despite Sahil’s reputation, Pollak said he was “willing to hear him out.”



“Sahil reached out and said he was interested in onboarding people to Zora,” Pollak <a href="https://x.com/jessepollak/status/1960002545172254770">wrote</a>. “I told him he had a bad rap, bad actors aren’t tolerated on Base, and he’d need to demonstrate positive impact.”



But that didn’t last long.



“Less than an hour later Sahil revealed that he was in fact lying and a bad actor and Zora removed the profile,” Pollak <a href="https://x.com/jessepollak/status/1960002545172254770">continued</a>.



Horne appears to have jumped the gun on posting about the Fury account. It’s unclear to what extent Fury himself is aware of the account’s brief existence, and neither his Instagram nor X account have posted about the issue.



I’ve reached out to Fury’s reps for comment, but have not yet heard a response.



Horne noted that Zora has been facing “an increased rate of accounts connecting legitimate socials and then removing them quickly,” and <a href="https://x.com/js_horne/status/1959983968389869632">said</a> the team is “working on mitigating this issue generally” to prevent future incidents.



“Zora needs to better distinguish between verified and unverified accounts,” Delphi Digital research analyst Jordan Yeakley <a href="https://x.com/yeak__/status/1960033867395686736">observed</a> in a post about the incident.



Last night, Zora announced that it’s updating its app to hide coins that break rules, and is making it easier for holders to sell or transfer hidden coins.



<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">Update: + Coins that break community guidelines are hidden on Zora + Hidden coins are now only visible in your wallet holdings with a warning + You can trade, sell, or transfer your hidden coins We are committed to making Zora the most trusted place to launch and trade creator… <a href="https://t.co/Ds0TDU1G8U">pic.twitter.com/Ds0TDU1G8U</a>&mdash; $zora (@zora) <a href="https://twitter.com/zora/status/1960172958389076131?ref_src=twsrc%5Etfw">August 26, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



More broadly, “creator coins” and “<a href="https://blockworks.co/news/zora-latest-content-coin-fad">content coins</a>” might sound like a fun purchase — until the account you bought from gets banned and your bags go to zero.



As an obvious reminder: Buying any micro-cap token like those on Zora is a big risk if your goal is to make a profit.&nbsp;



Zora’s content coin approach has led some artists to criticize it for offering little more than “<a href="https://blockworks.co/news/zora-app-accounts-debate">memetic speculation</a>,” while fans of the platform see it as a new creative outlet and a natural next step for the future of social crypto tools.



For what it’s worth, Fury himself posted a video on Instagram of himself jogging outdoors on Monday, encouraging his 6.7 million followers to, as they say in crypto, go out and touch grass.



“You’ll feel much better,” the boxer said.



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The Drop newsletter

Zora updates app after ‘Tyson Fury’ account sparks rugpull concerns

Donovan Choy

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



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I wrote <a href="https://lightspeed-4bed7b.beehiiv.com/p/solana-in-6-charts">two weeks back</a> that SOL does not enjoy the same institutional buy pressure that BTC and ETH do from digital asset treasuries (DATs).



That state of affairs is changing.



The healthcare device company Sharps Technology (STSS) <a href="https://www.prnewswire.com/news-releases/sharps-technology-inc-announces-over-400-million-private-placement-seeking-to-establish-the-largest-solana-digital-asset-treasury-strategy-302537587.html">announced</a> on Sunday that it secured a $400 million private investment structured as a public equity transaction (PIPE) offering to establish a SOL treasury.



That makes Sharps Technology officially the largest Solana DAT to date by announced raise size.



Alice Zhang, co-founder of the <a href="https://blockworks.co/news/jambo-onchain-mobile-network">Jambo</a> Web3 phone, is Sharp’s newly appointed chief investment officer. Her co-founder James Zhang will serve as a strategic advisor.



Then, news broke yesterday that Pantera Capital is planning a $1.25 billion raise for a Solana DAT. It’ll be called “Solana Co.”, <a href="https://www.theinformation.com/articles/crypto-fund-pantera-seeks-raise-1-25-billion-solana-deal">per</a> The Information. The fundraising strategy comprises an initial $500 million equity raise, followed by $750 million in warrants.&nbsp;



Pantera is also an investor in Sharps Technology, and has <a href="https://panteracapital.com/blockchain-letter/dat-value-creation/">deployed</a> more than $300 million on DATs spanning across eight tokens: BTC, ETH, SOL, BNB, TON, HYPE, SUI and ENA.



Bloomberg <a href="https://www.bloomberg.com/news/articles/2025-08-25/galaxy-jump-multicoin-seek-1-billion-for-buying-solana-token?embedded-checkout=true">reported</a> yesterday that the trio of Galaxy Digital, Multicoin Capital and Jump Crypto are also planning to raise approximately $1 billion for a SOL DAT, with Cantor Fitzgerald LP serving as the lead banker for the transaction.



Put together, that’s $2.65 billion in total SOL, or 14,095,744 SOL at today’s price of $188.



Before you get too excited, note that this does not necessarily translate to equivalent spot demand for SOL on open markets. That all depends on how DATs are accumulating SOL.



Are DATs buying SOL off the market, are they purchasing locked SOL in-kind with equity, or are they buying it at a discount? The Sharps <a href="https://www.prnewswire.com/news-releases/sharps-technology-inc-announces-over-400-million-private-placement-seeking-to-establish-the-largest-solana-digital-asset-treasury-strategy-302537587.html">press release</a>, for instance, indicates an arrangement with the Solana Foundation to buy “$50 million of SOL at a 15% discount to a 30-day time-weighted average price.”



On the other hand, purchasing SOL in-kind effectively converts locked SOL holdings into tradable liquidity, and can even potentially contribute to future sell pressure when the resulting equity overhang is sold or redeemed.



The devil’s in the details.



Regardless, $2.65 billion in SOL is fairly significant; that’s about 4.1x more than the SOL holdings (3,431,861) of existing DATs like Upexi (UPXI), DeFi Development Corp (DFDV) and SOL Strategies (CYFRD).



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXceRXw0_phBcCpFYn7Y5zgJK3Dv724mYOPtsKoDbW_d8DLP_mEWVhl8HPLCk_dW-Jm6-xJlWokXRe4-6LcWqlZE35eJHvMkBIxeHp7GR00AcUXaq4cOWFGyTk7NE0CZUrjbAP7pbw?key=NhPrKRh6neYrBS2yjJD26A" alt=""/></figure>



“Solana dats are going to be monstrous and first principles tuned to what makes solana great,” Solana co-founder Raj Gokal <a href="https://x.com/rajgokal/status/1960158597490302998?s=19">tweeted</a>.



Contextualizing the news further, $2.65 billion in SOL is still relatively small compared to the $14.3 billion in ETH that has been stacked by ETH DATs.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdtNLEoDZtDVelTdIZjJnPg4cAViij3tiK4cXU1U70RSzqM9Q8hGhHBjDPcD0HVUJobGw9S6iGL8uuvf9aGDBlshUt69nqikLu24yufEEw4pXXf9VupM_UGMesq86htY7NZOZt5gA?key=NhPrKRh6neYrBS2yjJD26A" alt=""/></figure>



And even smaller compared to the accumulated $80 billion in BTC by BTC DATs:



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXe-nRbPBg0v6-K7EacRFdWhdNz4WHKuHolm7enKYUrGt1qh60sKR-0rwQZLULrvlokLz-G6RqMTxikTItkBXiyB4ukVsrOBR7JlivuqN4tj3gGG2LRL0sqI8yAe5CI3wYgdmGH76Q?key=NhPrKRh6neYrBS2yjJD26A" alt=""/></figure>



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<li><a href="https://blockworks.co/newsletter/empire">Empire</a>: Crypto news and analysis to start your day.</li>



<li><a href="https://blockworks.co/newsletter/forward-guidance">Forward Guidance</a>: The intersection of crypto, macro and policy.</li>



<li><a href="https://blockworks.co/newsletter/thedrop">The Drop</a>: Apps, games, memes and more.</li>



<li><a href="https://blockworks.co/newsletter/lightspeed">Lightspeed</a>: All things Solana.</li>



<li><a href="https://blockworks.co/newsletter/supply-shock">Supply Shock</a>: Bitcoin, bitcoin, bitcoin.</li>
</ul>

Lightspeed Newsletter

SOL digital asset treasuries are coming in size

Macauley Peterson

Offchain Labs is making a zero-knowledge play for Arbitrum.&nbsp;



Its venture studio Tandem has entered a one-year exclusive partnership with Succinct to build a zkVM tailored to the <a href="https://blockworks.co/tag/arbitrum">Arbitrum</a> ecosystem.



The agreement, announced Tuesday, binds both companies to collaborate solely with each other on this effort. “For one year, Tandem by Offchain Labs has an exclusive commercial agreement with Succinct to create zkVM for Arbitrum chains,” an <a href="https://blockworks.co/tag/offchain-labs">Offchain Labs</a> spokesperson told Blockworks.&nbsp;



The team declined to comment on whether the partnership represents an all-cash deal, or includes token swaps. The Succinct Foundation, <a href="https://x.com/SuccinctFND/status/1952762687466975570">launched</a> its PROVE token earlier this month.



This partnership accelerates Offchain Labs&#8217; broader strategy around zero-knowledge proving. CEO Steven Goldfeder <a href="https://blockworks.co/news/zk-proofs-escape-velocity-eth">previously described</a> ZK technology as not yet competitive with optimistic proving “in terms of speed cost and maturity.”



But this is starting to change, Goldfeder said in an <a href="https://x.com/BanklessHQ/status/1960331536403759241">interview</a> with Bankless. “It&#8217;s not available quite yet, but particularly for those building on the Orbit stack, they should be aware that they will soon be able to choose to add ZK proofs to their chain.”



Succinct brings to the table its Rust‑based SP1 zkVM and the Succinct Prover Network — now live on mainnet — designed to make zero-knowledge proofs both accessible and performant for developers. Its technology already underpins dozens of deployments across the industry, including <a href="https://blockworks.co/tag/celestia">Celestia</a>, <a href="https://blockworks.co/news/uniswap-across-cross-chain-swaps">Across</a>, <a href="https://blockworks.co/tag/avail">Avail</a>, <a href="https://blockworks.co/news/eigenlayer-restaking-mantle-zksync">Mantle</a> and <a href="https://blockworks.co/tag/polygon">Polygon</a>.&nbsp;



“We’re convinced that every rollup will use ZK,” said Succinct CEO Uma Roy. “Serving Arbitrum chains is a top priority.”



Rather than converting Arbitrum One into a zk-rollup outright, the partnership is focused on giving the Arbitrum DAO — as well as Orbit chains — a credible ZK upgrade path. “We’re building the scaffolding,” Goldfeder said. “It’s up to deployers or the DAO to adopt it.”



Tandem’s Head, Ira Auerbach, emphasized how modular ZK proving can dramatically shrink settlement times — from days to minutes — enhancing capital efficiency, UX, and operational complexity.&nbsp;



“[Succinct’s] approach is directly aligned with our vision of how Arbitrum and the broader blockchain ecosystem can evolve,” Auerbach said.



This integration is only one piece of Offchain Labs’ modular stack push, having already signaled interest in hybrid proving models combining ZK fast paths with optimistic fallback as well as native ZK settlement.&nbsp;



Together with the <a href="https://blockworks.co/news/arbitrums-zerodev-bet">recent the ZeroDev acquisition</a>, the Succinct pact reflect Offchain Labs&#8217; expanding quest to unify developer tooling and cryptographic infrastructure across its stack. For Succinct, the deal grants direct access to the largest <a href="https://blockworks.co/tag/rollups">rollup</a> ecosystem on <a href="https://blockworks.co/tag/ethereum">Ethereum</a> and an opportunity to standardize its modular ZK infrastructure across Orbit chains.



Tandem previously backed infrastructure teams like Espresso Systems, Fhenix and Xai. The partnership focuses on both engineering and distribution: Succinct will lead development of high-performance proving infrastructure and a decentralized prover network, while Tandem provides ecosystem alignment, funding, and go-to-market support.



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Arbitrum

Succinct ties up with Tandem

David Canellis

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



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It’s certainly possible to be in crypto for the tech.&nbsp;



In fact, being in it for the tech — I mean, really in it for the tech; digital nation states on blockchain rails, smart cities, and the tokenization of all things — is the most effective path to alpha bull status.



John McAfee: big tech guy. Michael Saylor: huge on the tech. Same with Tim Draper, Marc Andreessen, Brian Armstrong and Balaji Srinivasan. And who’s been more bullish than them?



Fundstrat’s Tom Lee. That’s who.



<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">Mark ⁦<a href="https://twitter.com/MarkNewtonCMT?ref_src=twsrc%5Etfw">@MarkNewtonCMT</a>⁩ again at it. ➡️Calling ETH bottom to happen in next few hours ⁦<a href="https://twitter.com/fs_insight?ref_src=twsrc%5Etfw">@fs_insight</a>⁩ ⁦<a href="https://twitter.com/FundstratCap?ref_src=twsrc%5Etfw">@FundstratCap</a>⁩ Tickers: <a href="https://twitter.com/search?q=%24BMNR&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BMNR</a> <a href="https://twitter.com/search?q=%24GRNY&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$GRNY</a> <a href="https://t.co/038efU7cZH">pic.twitter.com/038efU7cZH</a>&mdash; Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) <a href="https://twitter.com/fundstrat/status/1960147287491154132?ref_src=twsrc%5Etfw">August 26, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div><figcaption class="wp-element-caption">Lee has, as of 9:08 p.m. yesterday, called the ETH bottom — to happen right about now.</figcaption></figure>



Lee has actually been bullish longer than almost anyone still active today.



As far as I can tell, his first public predictions for crypto came in mid-2017. Bitcoin’s price had more than doubled in the first six months of the year, to $2,500, leading Lee to call bitcoin’s future price on at least 10 different occasions in the 10 months ending May 2018.&nbsp;



His first prediction actually came true. “Cryptocurrencies are cannibalizing demand for gold,” Lee <a href="https://www.businessinsider.com/bitcoin-price-ethereum-cannibalizing-gold-2017-7">wrote</a> to Fundstrat clients eight years ago, in 2017, when bitcoin was at $2,607. &#8220;Bitcoin is arguably becoming a scarcer store of value. Investors need to identify strategies to leverage this potential rise in cryptocurrencies.&#8221;



Base case: bitcoin would reach $20,000 by 2022. Nearly 10x.&nbsp;



Bull case: $55,000 by 2022. A 22x in five years.&nbsp;



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXd7vSXENdtL86bYIniWmAwc11OjQBVCy7UqTTWf_b8-5h_ZGkjfm8QHAtdVrKs2xdZ8TUYaW_vMMxziQX3y8tnwCSFHczpA80kYvHo_u8za6_IbXOyerUJWCOtKnnxUHlPsvmcb?key=En_UORTZOH0v8ML2nnDsbg" alt=""/><figcaption class="wp-element-caption">This handy graphic of bitcoin scarcity was included in Lee’s note.</figcaption></figure>



Lee was exactly right. Bitcoin crossed $55,000 for the first time in February 2021, a little earlier than expected, and topped out nine months later beyond $69,000.



What makes things complicated is that Lee kept making predictions after that first banger.&nbsp;



Some were ultimately correct, but too low or too early; others didn’t eventuate in the way he envisioned (like the rally around CoinDesk’s Consensus 2018 conference that <a href="https://www.bloomberg.com/news/articles/2018-05-18/crypto-bull-tom-lee-owns-up-after-bitcoin-prediction-goes-awry">never came</a>, or that bitcoin never reached $25,000 in 2018, as <a href="https://cointelegraph.com/news/tom-lee-holds-to-25000-bitcoin-price-prediction-cites-three-supporting-factors">predicted</a> multiple times in the first half of the year).



<figure class="wp-block-image is-resized"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcT1NkrAQrhcpn7xR5W0gM7s8dUG0cwdMLst9FkWGUmg1aSl7Zxq4VqqDGHCXzcNaWXnxyxoFWvjYwDyDwLc-iImsWcaPdV8vTZ-G_23BivqOvL_uy4SaOmQ0Oio4w3QXSBwIQy?key=En_UORTZOH0v8ML2nnDsbg" alt="" style="width:642px;height:auto"/></figure>



Still, there were a few other gems. In January 2018, he <a href="https://www.bloomberg.com/news/articles/2018-01-18/bitcoin-bull-tom-lee-goes-hyperbolic-on-latest-price-forecast">said</a> that bitcoin could reach $125,000 by 2022 (which it did, only three years after the fact).



At the end of 2020, he <a href="https://x.com/CNBCFastMoney/status/1344407640873562119">foretold</a> bitcoin trading between $100,000 and $150,000 by the start of 2025, which, all things considered, wasn&#8217;t too far off.



But if the worst criticism of Lee’s calls are that they’re too early, then you’ll dig his most recent ones: $200,000 to $250,000 <a href="https://cointelegraph.com/news/bitcoin-price-prediction-250k-still-possible-fundstrat-tom-lee">possible</a> in 2025 (from three weeks ago) and more than $1 million in the next few years.&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">Absolutely unprecedented. Tom Lee has acquired almost $10 billion ETH over the past 50 days. Over 1.7m ETH. 1.4% of all ETH supply. If Tom gets to his 5% target and ETH goes above $12k Bitmine would be larger than Microstrategy. <a href="https://t.co/DpIZv55DBC">pic.twitter.com/DpIZv55DBC</a>&mdash; RYAN SΞAN ADAMS &#8211; rsa.eth 🦄 (@RyanSAdams) <a href="https://twitter.com/RyanSAdams/status/1960030779267760133?ref_src=twsrc%5Etfw">August 25, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Not bullish enough? You might recall that Lee recently made his first publicly-reported ETH prediction, apparently ever, only about a month after he was <a href="https://blockworks.co/news/eth-treasury-companies-growth">appointed</a> chairman of BitMine, which has its own Ethereum-focused treasury acquisition plan.&nbsp;



Lee’s call: Between $15,000 and $16,000 per ETH is possible by the end of the year, which would be a 3x from here.



So, maybe add on a few more years from that, just to be safe.



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Bitcoin

The worst and best part of Tom Lee’s predictions: they’re too early

This article was generated with the assistance of AI and reviewed by editor <a href="https://blockworks.co/author/jeffrey-albus" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a> before publication.



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MetaMask, the self-custodial crypto wallet developed by Consensys, introduced a new “social login” feature that allows users to create, back up and restore wallets using Google or Apple accounts. The service is powered by Web3Auth, a third-party authentication provider. MetaMask said support for additional login options will follow.



The <a href="https://metamask.io/news/introducing-metamask-social-login">update</a> eliminates the need to manually manage a 12-word secret recovery phrase, long considered a major barrier for new users entering crypto. Instead, users can authenticate with a familiar login and password to access their assets across devices.



MetaMask emphasized that users can set up both methods, retaining the option of a recovery phrase alongside social login.



According to MetaMask, the feature is already <a href="https://x.com/MetaMask/status/1960355478833094794">available</a> on the browser extension (version 13.0.0 and above), with mobile support expected soon. MetaMask said the move aims to “remove friction for onboarding” and give users “a safer, simpler way to start their Web3 journey.”



Wallets linked to Google or Apple accounts automatically sync networks, tokens and accounts across devices, reducing friction for onboarding. Still, the system introduces trade-offs.



While social logins may feel easier, they create dependencies on third-party providers and raise new questions about privacy, security and centralization. If users lose access to their connected social accounts, wallet recovery could be difficult — though retaining a recovery phrase as backup mitigates the risk.



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</ul>

Apple

MetaMask adds Google and Apple logins to streamline wallet setup

This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Bitwise Asset Management filed an S-1 registration statement with the US Securities and Exchange Commission on Aug. 26, 2025, seeking approval to launch the first US spot Chainlink (LINK) exchange-traded fund.



The fund is <a href="https://www.sec.gov/Archives/edgar/data/2082889/000121390025080461/ea0254517-s1_bitwise.htm">designed</a> to track the CME CF Chainlink–Dollar Reference Rate, a benchmark price for LINK, and would give investors regulated access to the token without requiring direct custody.



Coinbase Custody Trust Company is named as the proposed custodian for the ETF, according to the SEC filing.



The filing comes as asset managers expand beyond Bitcoin and Ethereum ETFs, which won approval in 2024 following years of legal disputes and regulatory hesitation. Bitwise has previously submitted applications for funds tied to Solana, NEAR Protocol, and other tokens, reflecting a broader push to bring alternative crypto assets into the ETF market.



According to Blockworks Research, Bitcoin ETFs have <a href="https://app.blockworksresearch.com/analytics/crypto-etfs">amassed</a> roughly $77.9 billion in cumulative flows, compared to about $23.2 billion for Ethereum ETFs and just $162 million for Solana ETFs. 



<figure class="wp-block-image size-full is-resized"><img loading="lazy" decoding="async" width="734" height="642" src="https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-5.png" alt="" class="wp-image-106619" style="width:629px;height:auto" srcset="https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-5.png?w=734 734w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-5.png?w=300 300w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-5.png?w=294 294w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-5.png?w=298 298w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-5.png?w=250 250w, https://blockworks-co.imgix.net/wp-content/uploads/2025/08/image-5.png?w=80 80w" sizes="auto, (max-width: 734px) 100vw, 734px" /></figure>



The scale of these products has emboldened asset managers to expand into alternative tokens like Chainlink.



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</ul>

Bitwise

Bitwise files for first Chainlink ETF with SEC

Carlos

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



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Hyperliquid&#8217;s spot volumes have seen a significant rise, particularly when compared to CEXs. Over the weekend, an unknown entity deposited and sold ~22.1k BTC to rotate into ~555k ETH, valued at over $2.4 billion. This surge in spot volumes positioned Hyperliquid as the second-highest exchange by BTC spot trading volume on Aug. 24, with a 12% market share, behind only Binance (38%). This is a substantial increase from Hyperliquid’s 30-day average daily market share of ~1%.&nbsp;



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXdsk-ZAc7HsJHIz0pRska_YD8_kAqICQPFfzrt6uCcVUx0ITaim5198QmbwzN7R6yux7Jcw4L7_QwrDHMMg4sOBdJ8mHDcGEVPnFPSXd2Go8ZKIJbwVMGKwUSXPnWkaAQElQj18NQ?key=jez8q95NO0rdPaI3OWQE3w" alt=""/></figure>



Stepping back, we can compare Hyperliquid&#8217;s monthly spot trading volumes against various CEXs (including all assets, not just BTC). We observe a consistent rise in Hyperliquid&#8217;s share of spot volumes year to date. This month, Hyperliquid accounted for 38% of Kraken&#8217;s spot volumes, 16% of Coinbase, 15% of OKX, 14% of Bybit, and 2.4% of Binance. Although all figures represent a significant rise from the beginning of the year, they also show that Hyperliquid still has a long way to go to flip some of the largest CEXs.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXd7r0MBZfnxDz2VWXbc-c_nu1VPzA70bS92X2gho4a6CUsBPU_cJJ682VNOhqoQGQWOLXECy3IZtgcsASZDPcre0N4aRgox-WLJGC0xHrMrXHXlG4q0MwZZzmqIJNFn4p1mrG2WJw?key=jez8q95NO0rdPaI3OWQE3w" alt=""/></figure>



Regarding perpetual futures volumes, Hyperliquid has been growing significantly faster than its centralized counterparts. The chart below shows that the ratio between Hyperliquid&#8217;s perp volumes and that of the three largest CEXs has increased by more than 6x over the past year. Hyperliquid&#8217;s monthly perps volumes now represent almost 14% of Binance&#8217;s futures volumes, up from just 2.2% a year ago.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXeZiT1Nv8S8UYoU8_qrbrTazNkavr7Swv46wKiHM97KurI3sFHvmc9zeeqbvESHTU4Q3fj7PeX5RL3wVjTq-S9NUMk6cg7TekS6IOOpCwDphZkCHNU1GaahPXjz9UqfEwX1CWddtA?key=jez8q95NO0rdPaI3OWQE3w" alt=""/></figure>



Growth in volumes is impressive. But what about revenue, especially as it compares to other chains? Hyperliquid (HyperCore + HyperEVM) has registered about $28 million in weekly revenue for two consecutive weeks, and $98 million in the past 30 days. These figures translate to an annualized revenue run rate of $1.2-$1.4 billion. Below, we see that Hyperliquid has been the top chain by weekly revenue in the last two weeks, achieving a new all-time high market share of 36%.&nbsp;



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXfS0M5yEQO62_WT60qckG5hoBoM1n9bJxYyz3zFaI3V8ZncYIyk_kAIDsE1epjilv6gPJ9SmnylYwqbhvAs_hSUstcFql-DOset2WGVmLD1LMMjNlBc-A9qsstPgsgPy-Xe2Ax5Ag?key=jez8q95NO0rdPaI3OWQE3w" alt=""/></figure>



The chart below shows that HYPE is the cheapest asset among the leading chains on a price-to-sales basis, with its P/S of 12 representing a 90% discount to the cohort. Even on an FDV/sales basis, HYPE is also the cheapest L1. While we can do mental gymnastics all day long about whether L1s merit a premium or not, or if they should be valued based on revenue or not, the fact remains that HYPE today looks more attractively priced than all other L1s, based purely on this metric.



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXcgHvLcDocsd9-sYVCCgDyEODO98Dbfv_t_QZUntUXTNBBbT476HFz7rxLXOTr7yJ12xSWKuJT0KWLB4NjUKnE3QPL0z5oFcYKgjHVc2-rjKxzGze4zaFMtMf6HCb2-mbf9ax7E4g?key=jez8q95NO0rdPaI3OWQE3w" alt=""/></figure>



Ask yourself, what happens if the so-called &#8220;L1 premiums&#8221; wear off? What happens when buying pressure from DATCOs subsides? Is it the case that HYPE is undervalued, or simply that other L1s have incredibly elevated valuations that are becoming increasingly harder to justify? We can&#8217;t know for sure, but these are certainly questions worth thinking about.



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0xResearch Newsletter

Either HYPE is still cheap or most L1s are overvalued

This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Donald Trump Jr.’s venture capital firm, 1789 Capital, has made a significant investment &#8220;in the tens of millions of dollars&#8221; into Polymarket, according to initial reporting by Axios.



The investment <a href="https://www.axios.com/2025/08/26/trump-jr-vc-fund-polymarket">aligns</a> with both growing regulatory clarity and expectations that the market for event-based trading may legally reopen to US users. Trump Jr., who joined 1789 Capital as a partner in late 2024, is also set to join Polymarket’s advisory board — even while maintaining a strategic advising role at its rival, Kalshi.



Trump Jr. is not an investment committee member at 1789 Capital, limiting his direct role in allocation decisions.



Polymarket, founded in 2020 by Shayne Coplan, is a cryptocurrency-based prediction market platform that allows users to trade on outcomes of real-world events using USDC on the Polygon blockchain. The company barred US users in 2022 following enforcement actions and a settlement with the Commodity Futures Trading Commission (CFTC).



The July 2025 closure of the Department of Justice (DOJ) and CFTC investigations into Polymarket without new charges cleared a major hurdle for its US return. Soon after, the firm acquired QCEX, a CFTC-licensed derivatives exchange, for $112 million. The acquisition, Polymarket <a href="https://www.prnewswire.com/news-releases/polymarket-receives-strategic-investment-from-1789-capital-and-welcomes-donald-trump-jr-to-advisory-board-302538997.html">said</a> in a separate statement, paves the way for a regulated re-entry into the US market.



In announcing the deal, Coplan said 1789 Capital’s stake would help reinforce Polymarket’s position as a “trusted source of free, transparent and accurate market information.” Trump Jr. added that prediction markets “cut through media spin and so-called ‘expert’ opinion” by letting people bet on their actual expectations of world events. Omeed Malik, 1789 Capital’s founder, described Polymarket as standing “at the intersection of free expression and financial innovation.”



Alongside the investment, Polymarket highlighted a recent partnership with X (formerly Twitter) as its official prediction market partner, as well as significant platform growth. The company said users made roughly $6 billion in predictions during the first half of 2025 alone.



Trump Jr.’s position on both Polymarket and Kalshi further underscores his growing influence in the prediction‑market space, especially as pro sports leagues such as the NFL have <a href="https://www.axios.com/2025/08/25/nfl-sports-betting-prediction-markets">raised</a> concerns about the implications of betting platforms.



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Donald Trump Jr.’s 1789 Capital invests millions in Polymarket

This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



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Trump Media &amp; Technology Group (TMTG) announced on August 26, 2025, that it entered into a strategic partnership with Crypto.com through parallel cooperation and purchase agreements.



As part of the deal, Trump Media will <a href="https://www.globenewswire.com/news-release/2025/08/26/3139282/0/en/Trump-Media-Crypto-com-Announce-Strategic-Partnership.html">adopt</a> Crypto.com’s wallet system to power an updated in-app rewards program. Users will be able to exchange earned “gems” for Cronos (CRO), the token tied to Crypto.com, and apply CRO balances toward subscription fees. Opening a Crypto.com account will also grant access to free or discounted Truth+ subscriptions.



The transaction also includes cross-holdings between the companies.



Trump Media purchased approximately $105 million in CRO, equivalent to about 685 million tokens, which it will custody and stake through Crypto.com. In return, Crypto.com invested $50 million in Trump Media common stock. Both positions are subject to lock-up periods.



A new entity, Trump Media Group CRO Strategy, Inc., will also be formed to manage token treasury operations and pursue a planned business combination with Yorkville Acquisition Corp., a special-purpose acquisition company.



The partnership follows Trump Media’s recent ETF filings with the Securities and Exchange Commission that named Crypto.com as custodian, including for a proposed Truth Social Bitcoin ETF. Some analysts have noted that the company’s overlapping business arrangements could draw scrutiny over potential conflicts of interest.



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Crypto.com

Trump Media and Crypto.com sign $155M strategic deal

This is a segment from The Breakdown newsletter. To read more editions, <a href="https://blockworks.co/brand/the-breakdown">subscribe</a>



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<blockquote class="wp-block-quote is-layout-flow wp-block-quote-is-layout-flow">
“If you want to know the real secret of Walt’s success, it’s that he never tried to make money.”



— Ward Kimball, Disney animator
</blockquote>



Andrew Keys is an Ethereum OG whose credentials include attending the first-ever Ethereum meetup in 2014 and making ETH worth more than a dollar.



“The first time Ethereum crossed $1 was because I put a permissioned version of the Java client of Ethereum on top of Azure,” he said on the <a href="https://youtu.be/KHGEZf0TnzY?si=gAPhDSRdZcyTTx6u&amp;t=3326">Empire</a> podcast, “and we put out a 100-word press release in the Wall Street Journal with Paul Vigna creating a concept of blockchain-as-a-service.”



Reading Vigna’s <a href="https://www.wsj.com/articles/BL-MBB-42980">write-up</a> from 2015 is a reminder of how little has changed in the 10 years since.



The narrative justifying $1 ETH was that Microsoft’s Azure would use Ethereum to “improve operations from accounting to logistics to cross-border payments and settlement.”



It never really happened, but we’re now racing toward $5,000 ETH largely on the same idea that Ethereum will be the corporate blockchain of choice.&nbsp;&nbsp;



This remains speculative.



Ethereum generated $1.4 million of REV yesterday — more than it did in 2015, of course, but not a lot relative to its $4,400 token price and $531 billion market capitalization.



Keys, however, thinks that valuation is low because Ethereum is underpricing its services.



“At the expense of near-term profitability, the Ethereum Foundation decided to make L1 blob space dirt cheap,” he explained. “I think in time, the Ethereum community is going to say, ‘Well, this is too cheap,’ and you can raise that pricing.”



Consider this the Uber theory of Ethereum’s value: “Once Uber became ubiquitous, they tripled prices,” Keys notes.



He expects Ethereum to do the same: “As blockspace becomes more competitive, you can raise prices.”



Uber is an extreme example of a standard playbook for profit-maximizing corporations, so I see why he cites it.&nbsp;



But layer-one blockchains are not corporations — and I’m not sure they’re meant to be profit-maximizing.



Instead, I thought the idea was to make blockspace as cheap as possible (without sacrificing decentralization), so we can get as much stuff onchain as possible.&nbsp;



If token holders make money in the process because the blocks fill up and transactions get expensive, that’s great.



But making transactions expensive just so token holders make a profit seems…not very crypto?



Layer-one crypto tokens do have to have value, mostly to deter spam and provide security.&nbsp;



But, ideally, any additional value would come from higher usage, not higher prices.&nbsp;



And even if profitability were the primary goal, higher prices might not be the way to achieve it.



As a future source of profits, Keys cites “blobspace” — a cheap, dedicated lane on Ethereum for temporarily making large amounts of data available for anyone to validate.



But does blobspace have a moat?



“Making data available” doesn’t sound like the kind of differentiated service that would have pricing power — how hard can it be to store some data? I’m guessing Keys would argue that Ethereum will have pricing power because of its security guarantees, brand and market capitalization.&nbsp;



But that remains speculative at this point and I’d counter that it’s easier to start a new blockchain than it is a new riding-sharing service.



So I’m not sure Uber’s is the best business model for Ethereum to emulate.&nbsp;



<h2 class="wp-block-heading">The Walt Disney way</h2>



Ward Kimball attributed Walt Disney’s riches to never trying to become rich: “If you want to know the real secret of Walt’s success, it’s that he never tried to make money. He was always trying to make something he could be proud of.”&nbsp;



Disney told his staff never to mention costs to him — if something made a film or his parks better, he wanted it in, whatever the price.



He built a zoo on the studio lot so animators could study animals while making Bambi. He insisted that the gargoyles on Disney World castles, too high up for anyone to see, be sculpted in full detail.



For Disney, animation and theme parks were passion projects that he pursued against all financial advice, often to the brink of bankruptcy.



It worked out in the end, of course — which proves that sometimes, the most profit-maximizing thing is to not maximize profits.



In other cases, the most profit-maximizing thing is to not make profits at all.



Linus Torvalds, for example, made his fortune by offering the Linux operating system for free. Forever.



It’s easy to imagine Torvalds would now be even wealthier if he charged even a few cents for the use of Linux — billions of devices run on the software he invented, from which he collects exactly $0.



But Linux became a global phenomenon precisely because it was free to use and free to build on — a freedom that turned users into contributors.



Torvalds developed Linux with the help of thousands of enthusiasts eager to contribute to the open-source project simply because they believed in it.



With access to the source code, users didn’t just report bugs to Torvalds — they often sent him the fix, too.



In the early days of its development, this allowed Torvalds to release updated Linux kernels as often as every day.&nbsp;



It’s impossible to imagine Microsoft releasing new versions of Windows every day.&nbsp;



It’s equally impossible to imagine that Linux could have been built any other way.&nbsp;&nbsp;



Today, Torvalds is variously estimated to be worth between $50 and $150 million — a big number, for sure. But also a tiny slice of the unmeasurable value Linux has created for the world.&nbsp;



Still, a tiny slice of a giant number is generally better than a giant slice of a small one.&nbsp;



If Torvalds had charged for Linux, his slice might have been 100% of nothing.



Unlike Linux, Ethereum can’t be free — the chain won’t work unless there’s a cost to using it.



But it doesn’t have to maximize profits, either.&nbsp;



And perhaps it shouldn’t?



By pricing their products and services as commodities, companies like Walmart, Costco, Southwest Airlines and Vanguard became giants by prioritizing growth and revenue over profit margins.



If blockspace is similarly a commodity product, the best way to maximize profits may be not to.



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Should Ethereum maximize profits?

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



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A couple days after Fed Chair Jerome Powell’s widely watched Jackson Hole speech feels like a great time for a high-level update — particularly as macro’s effect on crypto markets has increased over time.



We still don’t know what the Fed will do at its Sept. 17 meeting. But to many, Powell’s comments<a href="https://blockworks.co/news/powell-jackson-hole-speech"> had a dovish tilt</a>, leaving the door open for an interest rate cut next month.&nbsp;



If we look at CME Group’s FedWatch tool — based on 30-Day fed funds futures prices, as of midday Monday — many think a 25-basis point cut is in the cards. The bottom section shows that expectation much higher than a month ago:



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXe5msJkgjwcgQzk35Zy54JcJpip_H08kmBGj0YVLnbuJa9JXHS6pm_iBF-5J3vvZoPtxflo7yL18ahyB7rq9avlATiGlJAUBUKNadGIi70_PQ5-RlTN-dMFmiT4o_GDUP0oCwYWtw?key=kC-qTijup8gbsaLTwUIxQQ" alt=""/></figure>



While an interest rate cut is generally good for risk assets like bitcoin, it’s a bit more nuanced than that. BTC surged above $117,000 on Friday before reversing course to below $111,000. The asset was trading for around $112,600 at 1:30 pm ET.



The broader trajectory of where crypto markets are headed will still depend on the macro backdrop, argued YouHodler markets chief Ruslan Lienkha.



“If inflationary pressures persist, the Fed may be forced into another prolonged pause, limiting the sustained impact of a single cut,” he told me. “Moreover, if a rate reduction is perceived as an emergency response to a recession, it could weigh on crypto alongside other risk assets.”



The best scenario? A cut that is part of a successful Fed effort to engineer a soft landing. “In that environment, bitcoin is likely to capture the bulk of institutional inflows, given its position as the most established digital asset,” Lienkha said. “Select altcoins could outperform in percentage terms due to their higher volatility and lower liquidity, amplifying upside moves when capital flows broaden beyond bitcoin.”



Speaking of institutional flows, crypto investment products saw more than $1.4 billion leave their coffers last week, <a href="https://coinshares.com/us/insights/research-data/fund-flows-25-08-25/">according</a> to CoinShares — the highest weekly outflow total since March. Within that data, we saw early-week pessimism around the Fed’s stance appearing to drive the outflows, before a recovery later on (mostly with ether products) around Powell’s remarks.



While $625 million flowed into US ETH ETFs on Thursday and Friday combined, $217 million exited BTC funds on those two days. Month-to-date net inflows for ETH and BTC ETFs are at +$2.5 billion and -$1 billion, respectively, “marking a notable change in investor sentiment toward the two assets,” noted CoinShares’ James Butterfill.&nbsp;



<figure class="wp-block-image"><img decoding="async" src="https://lh7-rt.googleusercontent.com/docsz/AD_4nXczLfoFS0xWkjQ0VJyMSKiq57KR0UvHhJAvfpTjHbo3KLwkcEkm0Tys9Vf6ZXrZed91pdNPCm9Ni0jPESDVk3BHH6C758XDuCITCGy2P9SMuD-yJ_CbEYX8ixca2T2ewtiHdTg-?key=kC-qTijup8gbsaLTwUIxQQ" alt=""/></figure>



What did asset allocators take away from Friday?&nbsp;



CK Zheng, co-founder of crypto hedge fund ZX Squared Capital, called Powell’s pivot to possibly start cutting rates “significant” for risky asset classes.



His year-end target for bitcoin is between $125,000 and $150,000. He expects ETH to finish the year between $6,000 and $7,000. (It hovered around $4,600 Monday afternoon).



Globe 3 Capital CIO Matt Lason said that any rate cut signal confirms the hedge fund’s bullish positioning given how important more liquidity is in crypto. He expects the intensity of the ongoing crypto bull market to be strongest in Q4.&nbsp;&nbsp;



The expected rate cuts spurred Globe 3 Capital to rotate more of its holdings into smaller cap tokens “as we are seeing early signs of the long-awaited alt coin season,” Lason added.



What should we expect beyond Q4? 50T Funds founder Dan Tapiero weighed in this weekend on X, citing Morgan Stanley research:



<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">This bull mkt does not end with 82% of those surveyed by Morgan Stanley saying they do not own cryptocurrency. Tiny long exposure in btc and eth vs &#39;22. All of these metrics will make new highs in price and ownership during this cycle. 2026 will be a boom year. <a href="https://t.co/P5QaGFfd5E">pic.twitter.com/P5QaGFfd5E</a>&mdash; Dan Tapiero (@DTAPCAP) <a href="https://twitter.com/DTAPCAP/status/1959477135011094716?ref_src=twsrc%5Etfw">August 24, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Zheng said he foresees bitcoin dominance continuing to drop after the <a href="https://blockworks.co/news/genius-act-passes-house">GENIUS Act signing</a>, estimating the stablecoin market to 10x (from ~$270 billion) in the next few years. Coinbase’s latest simulations suggest the stablecoin market cap could reach $1.2 trillion by the end of 2028.&nbsp;



We know crypto markets move fast, but I think these “where-we-stand” snapshots are worth it. Even if it all changes in a few weeks, days or hours.



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Checking in on crypto markets as the Jackson Hole dust settles

This is a segment from The Drop newsletter. To read full editions, <a href="https://blockworks.co/newsletter/the-drop" target="_blank" rel="noreferrer noopener">subscribe</a>.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



Crypto gaming has seen plenty of multimillion-dollar raises, but in many cases, that funding and hype hasn’t amounted to much. It’s not a guarantee of future success, by any means.&nbsp;



Funding in the crypto gaming sector is also <a href="https://dappradar.com/blog/state-of-blockchain-gaming-in-q2-2025">down 93%</a> year-over-year, meaning there isn’t as much of an appetite for funding large dev teams or splashy marketing budgets right now.



But builders are still finding ways to ship projects with lean teams, turning visions from the GameFi trenches into reality.



Jakpot Games, which is building out its Solana-based site with just three people in its core team, is one of those projects. Their arcade-like platform launched last week, letting players spend the platform’s JAKPOT token to try their hand at getting a high score in one of a few different browser-based games.&nbsp;



Rex Runner and Speed Racer, which both involve speeding through pixelated environments, are the two titles currently on offer.&nbsp;



Currently, each Jakpot tournament has a countdown — meaning players have anywhere from 12-24 hours to try to reach the top of a game’s leaderboard in order to win some tokens.



<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">To cap off the weekend, we extended our tournament over 440,000 <a href="https://twitter.com/search?q=%24JAKPOT&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$JAKPOT</a> on the line pure skill, pure competition less than $1 to enter <a href="https://t.co/TKc0bvNImK">pic.twitter.com/TKc0bvNImK</a>&mdash; Jakpot Games (@JakpotGames) <a href="https://twitter.com/JakpotGames/status/1959766461842612605?ref_src=twsrc%5Etfw">August 24, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



Users connect to the site via crypto wallet tool Privy, and buy the platform’s token using SOL.



85% of every pot is split among the top scorers. 10% goes to the team’s vault for marketing and development, and 5% rolls over into the next round’s pot, Jakpot cofounder Gannon Breslin, who previously authored The Drop, explained to me in an interview.&nbsp;



Like many gaming upstarts, Jakpot has already had to fend off an onslaught of cheaters who sought to unfairly exploit the platform for financial gain.



“They cheated in ways we didn’t even imagine possible,” Breslin said, adding that continuously monitoring and expanding upon their existing anticheat is a top priority.&nbsp;



Since its launch last week, Jakpot has seen 7,316 games played, 16.1 million game credits transferred, and 26.7 million JAKPOT paid out in total.&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">footballdotfun is awesome, and i&#39;m glad its leading the charge for gamefi seaon however, the game is still speculation which is more betting then not outright skill<a href="https://twitter.com/JakpotGames?ref_src=twsrc%5Etfw">@JakpotGames</a> is pure skill with $ on the line 19 hours left with 255,000 in the pot <a href="https://t.co/n9TOZHRnAd">pic.twitter.com/n9TOZHRnAd</a>&mdash; Gannon Breslin (@gannonbreslin) <a href="https://twitter.com/gannonbreslin/status/1959909285292593307?ref_src=twsrc%5Etfw">August 25, 2025</a></blockquote><script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</div></figure>



As often happens with low-cap tokens, JAKPOT’s <a href="https://dexscreener.com/solana/bpehdmdgf92pd4h6bqscaagrzdfpat8tpbas9s2bmti8">price</a> has fallen significantly from its all-time high. 26.7 million JAKPOT was worth over $53,000 just a few days ago, but would now be worth about $15,000.



“We’re 10,000 times more focused on people playing the game than the market cap,” Breslin said of the token.&nbsp;



The team is planning to add a “Degen” mode soon with higher token buy-ins per play to raise the stakes for those who want it.



They’re also building out custom game lobbies and are actively exploring which games they might add to their platform next (I suggested DOOM).&nbsp;



As the Jakpot team continues to build, they’ll have to compete for Crypto Twitter’s attention with the likes of the latest trend-of-the-moment Football.Fun, plus the Abstract gaming ecosystem and existing gaming platforms like Remix.



It’s never easy in the trenches.&nbsp;



Disclosure: Gannon Breslin is the prior owner and writer of The Drop newsletter, which was acquired by Blockworks.



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Gaming

Solana-based Jakpot Games launches pay-to-play arcade

This article was generated with the assistance of AI and reviewed by editor&nbsp;<a href="mailto:jeffrey@blockworks.co" target="_blank" rel="noreferrer noopener">Jeffrey Albus</a>&nbsp;before publication.



<hr class="wp-block-separator has-alpha-channel-opacity"/>



A coalition of the world’s leading stock exchanges has urged regulators to crack down on tokenized stocks, warning that blockchain-based assets could threaten investor protection and market stability.



In a letter sent on August 22 to the U.S. Securities and Exchange Commission’s Crypto Task Force, the European Securities and Markets Authority, and the International Organization of Securities Commissions’ Fintech Task Force, the World Federation of Exchanges (WFE) said tokenized equities mimic shares without conferring legal ownership or shareholder rights.



Reuters, which reviewed the letter, <a href="https://www.reuters.com/sustainability/boards-policy-regulation/stock-exchanges-urge-regulators-crack-down-tokenised-stocks-2025-08-25/">reported</a> that the WFE described the tokens as imitations of listed equities that could mislead investors and expose issuing companies to reputational fallout if the products collapse. The trade group said some issuers have already voiced concerns about their shares being replicated without consent.



Tokenized equities allow investors to buy digital tokens that track the value of a company’s shares, but unlike traditional stockholders, token buyers do not gain voting rights or protections under securities law.



As Jamie Alcock <a href="https://www.ft.com/content/c8379d47-7f80-4ee6-8e9d-69b379cea027">argued</a> in the Financial Times earlier this month, these instruments provide only “synthetic exposure” to underlying assets rather than enforceable ownership. Proponents argue the tokens could lower trading costs and enable around-the-clock markets, but regulators have repeatedly stressed that securities laws still apply.



Platforms such as Robinhood and Coinbase have begun experimenting with these offerings, with Robinhood launching tokenized equities for European customers earlier this year and Coinbase seeking U.S. regulatory approval.



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Zebec ProtocolZBC

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