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Robinhood Shares Crash After Record Quarter — What’s Spooking Investors?

Robinhood Markets, Inc. (NASDAQ: HOOD) stunned Wall Street this week with a record-breaking quarter that saw its revenue double and profits soar. The retail trading platform posted its highest-ever earnings, buoyed by surging activity in equities, options, and crypto markets, alongside strong interest income. The company also set records in customer inflows and asset growth. But despite the blockbuster numbers, the market responded in an unexpected way: Robinhood shares plummeted nearly 8% following the earnings release. The sharp decline caught investors off guard, particularly after such a bullish report. With the stock up over 250% year-to-date prior to the announcement, expectations were sky-high—and even a stellar quarter wasn’t enough to sustain the rally. The sell-off highlights a deeper unease among investors about Robinhood’s rising expenses, the impending departure of its longtime CFO, and whether the fintech firm can continue its rapid growth without stumbling. In this article, we unpack Robinhood’s latest results, examine the market reaction, and explore what could be next for the stock. What Is Robinhood Markets, Inc. (HOOD)? Robinhood Markets, Inc. is a U.S.-based financial technology company best known for pioneering commission-free stock and crypto trading. Founded in 2013 by Vladimir Tenev and Baiju Bhatt, Robinhood quickly rose to prominence by lowering barriers to entry in retail investing—enabling users to buy and sell stocks, ETFs, options, and cryptocurrencies directly from a mobile app. The company’s mission to “democratize finance for all” struck a chord with a younger, tech-savvy generation of investors, helping it grow into a dominant force in the fintech sector. Headquartered in Menlo Park, California, Robinhood today serves over 27 million funded accounts and manages more than $300 billion in customer assets. In addition to trading services, the platform offers a suite of financial products including Robinhood Gold (a subscription for advanced tools), IRA accounts, cash sweep programs, and cryptocurrency wallets. The company is also expanding internationally and experimenting with new revenue streams such as prediction markets. Its meteoric rise and cultural relevance during the pandemic-era retail trading boom earned it a spot in the S&P 500 in 2024, further cementing its role as a major player in the U.S. financial landscape. A Record-Breaking Quarter for Robinhood Robinhood’s third-quarter results shattered expectations across nearly every key financial metric. The company reported revenue of $1.27 billion, a 100% year-over-year increase, driven by higher transaction-based revenue, rising interest income, and growing premium subscription uptake. Net income surged to $556 million, translating to earnings per share (EPS) of $0.61, well ahead of analyst estimates of $0.53. The results marked Robinhood’s most profitable quarter to date. Growth was broad-based across product lines. Equities trading revenue climbed 132%, options revenue rose 51%, and crypto trading revenue soared by 300%, reflecting a strong resurgence in digital asset activity. The company also saw record net deposits of $20.4 billion, lifting total assets under custody to $333 billion—up 119% from a year ago. Robinhood’s average revenue per user (ARPU) jumped 82% to $191, and its premium service, Robinhood Gold, added over a million members year-over-year to reach 3.9 million subscribers. CEO Vlad Tenev highlighted the results as evidence of “relentless product velocity,” noting new features like retirement accounts, prediction markets, and enhanced international access played a key role in user engagement. Why Did Robinhood’s Stock Crash on Great News? Despite delivering a record quarter, Robinhood’s stock dropped sharply—falling nearly 8% in the immediate aftermath of its earnings report. The reaction highlights growing market anxiety over issues that extend beyond current performance. Several key concerns appear to be driving the sell-off: 1. Rising Operating Costs Robinhood guided for full-year expenses to come in at the higher end of its previously stated range. Investors are interpreting this as a sign of mounting cost pressures, particularly as the company continues to invest heavily in product development, marketing, and geographic expansion. While elevated spending is not unusual during high-growth phases, it raises concerns about potential margin compression in future quarters. 2. CFO Exit Adds Uncertainty The company also announced that CFO Jason Warnick will step down in early 2026, ending a seven-year tenure that spanned Robinhood’s meteoric rise and public listing. Though successor Shiv Verma has been named, transitions in financial leadership often introduce uncertainty—especially for a fast-growing company navigating high expectations and a complex regulatory environment. 3. Crypto Revenue Fell Short of Lofty Expectations While crypto trading revenue surged ~300% year-over-year, it still fell short of some analysts’ bullish projections. Given how volatile and influential crypto markets are to Robinhood’s user base, any underperformance in this segment can weigh heavily on sentiment, even if growth remains strong in absolute terms. 4. Valuation Catch-Up and Profit Taking After rallying more than 250% year-to-date, Robinhood’s stock was trading at elevated valuation multiples—around 60x forward earnings. For many investors, the earnings event became a trigger for profit taking. With the bar set so high, even minor blemishes—like a leadership change or guidance concerns—can spark sharp corrections, especially in high-beta growth stocks. The market response suggests that investors are looking past the stellar numbers and focusing on the path forward—especially the company’s ability to sustain growth while managing expenses and maintaining strategic continuity. Wall Street Isn’t Panicking — Yet Despite the sharp sell-off, many Wall Street analysts remain optimistic about Robinhood’s long-term trajectory. While they acknowledge short-term headwinds—like rising costs and leadership changes—the prevailing sentiment is that the company’s growth fundamentals remain intact. Mizuho Securities boosted its price target from $145 to $172, reaffirming a “Buy” rating. Analysts praised Robinhood’s performance across emerging verticals, including prediction markets and premium subscriptions, calling the Q3 results “a testament to product expansion and deeper user monetization.” Compass Point also raised its target, to $161, noting strong user engagement and the platform’s ability to grow assets under custody at a rapid pace. The firm sees upside potential if Robinhood can balance innovation with operational discipline. That said, not all analysts are bullish. Goldman Sachs maintained a “Neutral” rating, cautioning that the strong quarter was already priced in. They highlighted concerns about margin pressure and the uncertainty surrounding the CFO transition. The average 12-month price target for HOOD currently sits in the $120–$130 range—right around its current trading level. For now, Wall Street appears to be giving Robinhood the benefit of the doubt, but sustained execution will be key to regaining upward momentum. Robinhood Stock Price Prediction: Can the Rally Resume? Robinhood Markets, Inc. (NASDAQ: HOOD) Price Source: Yahoo Finance With Robinhood shares now trading in the mid-$120s following a sharp post-earnings pullback, investors are debating whether this is a temporary dip or the start of a deeper correction. The stock had been one of 2025’s standout performers—up more than 250% year-to-date—making its valuation and future trajectory central to any price outlook. In the short term (3–6 months), analysts and technical traders are watching key support and resistance levels. Technically, the stock is hovering near its 50-day moving average (~$129), a zone that has previously attracted buying interest. If that level holds, Robinhood could stabilize and attempt to retest its recent highs around $140–$145. A break below $129, however, could trigger a slide toward the $120 support area, where further consolidation may occur. From a fundamentals standpoint, the bull case rests on continued momentum in revenue and user growth, especially in high-margin areas like Robinhood Gold, crypto trading, and international expansion. If management can keep costs in check and deliver a smooth CFO transition, many on Wall Street believe the stock could push higher—especially with price targets as high as $172. However, given its elevated valuation, the margin for error remains thin. Execution missteps, softer-than-expected trading activity, or broader tech-sector volatility could weigh on shares. As a result, most forecasts point to modest upside potential over the next several months, with high volatility likely to persist. Investors may need to brace for more choppiness as the market digests both the company’s growth and its growing pains. Conclusion Robinhood’s third-quarter performance was, by most measures, exceptional. The company delivered record revenue, expanding profits, and surging user engagement—demonstrating that it remains a major force in retail trading and fintech innovation. Yet the stock’s swift decline in response to the earnings report serves as a reminder that markets don’t just reward past performance—they price in the future. Investors appear to be recalibrating their expectations in light of rising expenses, leadership transitions, and the challenges of sustaining hypergrowth in a competitive and regulated environment. With the stock trading near historical highs and valuations stretched, even minor uncertainties are enough to rattle sentiment. Still, Robinhood has a strong foundation: a growing customer base, expanding product ecosystem, and a demonstrated ability to innovate quickly. If the company can maintain its growth trajectory while improving cost discipline and ensuring leadership stability, the recent dip may prove to be a buying opportunity rather than a red flag. In the months ahead, the focus will shift from celebrating big numbers to watching how well Robinhood navigates the complexities of scale. Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.

Can IREN Stock Price Hit New Highs? AI Cloud Surge Explained

What happens when one of the world’s major Bitcoin miners pivots away from its original sector and places a bold bet on the future of artificial intelligence? That’s the reality for Iris Energy Ltd. (NASDAQ: IREN), an Australia-based company known for its substantial operations in green Bitcoin mining. Founded in 2018, IREN has spent recent years rapidly rebranding itself as a next-generation operator in data centers tailored for AI and high-performance computing (HPC), leveraging vertical integration and renewable-energy-driven infrastructure. Investors are taking notice. With shares having surged over 500% in 2025 and analyst targets climbing as high as $82, IREN’s trajectory epitomizes the growing convergence of crypto-mining assets and AI infrastructure demand. This article offers an in-depth look at IREN’s strategic transformation, an analysis of its share performance following major business decisions like its Microsoft partnership, its current business model, Wall Street’s forecasts, and the broader context of the booming AI cloud sector. Source: Google Finance The Deal with Microsoft A landmark moment for IREN—and one that immediately rippled across markets—arrived when Microsoft signed a $9.7 billion, five-year agreement with Iris Energy. This deal gives Microsoft priority access to advanced Nvidia AI chips housed at IREN’s major data centers, most notably at Sweetwater, Texas, and through a $5.8 billion hardware partnership with Dell. The agreement’s direct impact was immediate and dramatic: IREN stock jumped as much as 24.7% to a record high during pre-market, and trading volume soared. The deal forms part of Microsoft’s broader AI infrastructure push—which has also included multi-billion-dollar contracts with other data center companies such as Lambda and Nebius. For IREN, being chosen by Microsoft is a clear validation of its pivot from Bitcoin mining to high-value, AI-centric cloud hosting. IREN Stock Price Performance After Strategic Moves IREN’s share price has closely tracked its strategic evolution, marking volatility and sharp rallies in response to each major decision: Microsoft Partnership: After the deal, IREN’s share price surged by more than 20% in pre-market action, settling near $73, up from $17 just a few months prior. This rally marked a staggering 530% gain over six months, with the company’s market cap exceeding $16.5 billion. AI Expansion Announcements: When announcing its $674 million GPU procurement—expanding its AI cloud to roughly 23,000 GPUs from Nvidia and AMD—Iren’s stock leapt 16.6% in one day, with annualized run-rate revenue from this segment guided above $500 million. Analyst Upgrades: Analyst enthusiasm has also driven price jumps. Bernstein tripled its price target to $75, while Arete Research set theirs at $78, both crediting IREN’s unique vertical integration and liquidity to rapidly scale AI cloud infrastructure. Mixed Wall Street Views: Not all reactions have been bullish. On news of rapid gains and capex commitments, JPMorgan downgraded IREN to “Underweight” with a $24 target, arguing the stock was pricing in an extremely optimistic infrastructure buildout that could expose IREN to execution risk and massive capital outlays. The stock’s rapid ascent underscores both Wall Street’s conviction in its new business model and the sector’s inherent volatility. IREN’s Business: From Bitcoin Mining to AI Cloud IREN built its reputation as a sustainability-focused Bitcoin miner, controlling its own land, renewable power contracts, and self-built data centers—a vertically integrated model rare in the sector. In FY2025, this structure helped the company deliver $501 million in revenue (up 168% YoY) and $86.9 million in net income, despite the sector-wide pressures caused by crypto market fluctuations and Bitcoin’s halving cycles. The real paradigm shift, however, is IREN’s aggressive entry into AI hosting: The company doubled down on GPUs, completing procurement of over 23,000 chips and developing a 75MW liquid-cooled hyperscale data center in Texas aimed directly at serving AI and high-performance computing loads. Revenue projections for AI cloud have now reached $500 million annualized, targeted for late 2025 or early 2026. With ownership of land, power, and digital infrastructure, IREN can “toggle” its resources between crypto and AI, maximizing per-megawatt economic yield. AI hosting brings in $10 million+ per MW, compared to $2 million for traditional colocation. The company’s focus on renewable energy aligns with trends in ESG investing and regulatory scrutiny, raising its appeal for AI clients under Europe’s Corporate Sustainability Reporting Directive. The transition addresses two key industry risks: the downturns in cryptocurrency pricing and the halving of mining rewards, while capitalizing on the global race for GPU-based computational power. IREN Stock Price Prediction by Wall Street Opinions among analysts are divided but generally optimistic: Bullish Targets: Bernstein raised its target to $75, forecasting exponential revenue growth from scaled AI cloud deployment. Arete Research initiated at $78. Roth Capital/MKM put the figure as high as $82 by projecting $2.7 billion in revenue and $1.2 billion EBITDA by FY2028. Moderate/Neutral: Compass Point took a midline with a $50 target, citing strong economics but also elevated capex requirements. Bearish Skepticism: JPMorgan notably downgraded IREN, warning that growth targets may be overheated and the stock already prices in a >1GW build—an investment that could run up to $10 billion in capital costs. Questions remain about the company achieving its own AI revenue guidance, given modest recent contributions ($2.7 million in Q2 FY25 from AI cloud). The consensus, per MarketBeat, stands at a moderate “Buy” with a 12-month average target of $47.73, but there are significant outliers predicated on execution risk and sector volatility. Why Is the AI Cloud Stock Sector Surging? Several converging trends explain why companies like IREN—and stocks in the broader AI cloud sector—are soaring: Booming AI Demand: AI workloads, generative models (such as ChatGPT), and advanced LLMs require exponentially more GPU-accelerated infrastructure than legacy workloads. Major tech firms often face compute shortages, limiting their ability to ramp AI services for customers and themselves. Big Tech Spending Boom: Microsoft, Amazon, and Google are pouring tens of billions into data center expansion and “neocloud” partnerships. Notably, Microsoft inked a combined $33 billion in new partnerships for AI capacity, including $19.4 billion with Nebius (100,000 NVidia GB300 GPUs) and a multi-billion-dollar arrangement with IREN. Capital Market Fervor: Analysts and institutional investors recognize that data center real estate, now tailored for AI, is potentially far more valuable than traditional colocation or even Bitcoin mining. Ownership of land, power, and next-generation GPUs is now considered a prime asset. Flexible Infrastructure: IREN and peers can direct resources between mining and AI based on current economics—a strategic flexibility not available to less vertically integrated competitors. Conclusion IREN’s strategic pivot—from renewable-powered Bitcoin mining to vertically integrated AI data centers—crystallizes the changing landscape of digital infrastructure. Its historic Microsoft deal cements its role as a cornerstone supplier of next-gen AI computing power. The share price has responded accordingly, soaring to historic highs alongside growing analyst enthusiasm. Yet, investors should note the risks: execution challenges, intense capital requirements, supply chain uncertainty for leading-edge GPUs, and fierce competition from established industry giants. In sum, IREN is now at the heart of two revolutions—crypto mining and AI cloud infrastructure. If IREN continues to deliver on its bold promises, today’s aggressive price targets may yet prove conservative. Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.

Numerai (NMR) Price Prediction 2025–2030: Will This AI Crypto Outperform?

Numerai (NMR) Price Prediction 2025, 2026–2030: Will This AI Crypto Outperform? Among recent developments in digital assets, Numerai (NMR) Crypto has attracted attention for its role as the foundation of a global hedge fund using crowdsourced intelligence. For those monitoring trends in AI and finance, staying informed about Numerai (NMR) price prediction can offer important insights into this project’s future potential. In this comprehensive article, we’ll cover everything you need to know about Numerai (NMR) Crypto: how it works, how staking operates, and the most up-to-date Numerai (NMR) price predictions through 2030. What is Numerai (NMR) Crypto? Numerai (NMR) Crypto is the native utility token of Numerai, a decentralized hedge fund powered by artificial intelligence and crowdsourced data science. Unlike typical investment funds, Numerai leverages global networks of data scientists who compete by submitting machine learning models to predict financial market movements. The best models are rewarded in NMR tokens, enriching the platform’s trading strategy and aligning incentives. With next-generation concepts like encrypted data sharing and privacy-preserving modeling, Numerai (NMR) Crypto stands at the cutting edge of the AI and blockchain sectors. Backed by growing institutional attention—including a $500M commitment from JPMorgan Asset Management—Numerai continues to gain momentum in both the crypto and traditional finance communities. How Does Numerai (NMR) Work? Numerai’s weekly tournaments allow data scientists to build and submit predictive models using provided, encrypted data sets. Contributors stake their Numerai (NMR) Crypto tokens on the performance of these models. Successful predictions are rewarded, while poorly performing models can lose staked tokens. This system incentivizes data quality, accuracy, and meaningful contribution—key reasons why Numerai (NMR) Price Prediction is a hot topic for investors tracking the evolution of decentralized AI hedge funds. How to Stake Numerai (NMR) Crypto Staking Numerai (NMR) Crypto involves locking up tokens to support your submitted prediction model in Numerai’s data science tournaments. Here’s how to participate: Model Submission: Create or select a predictive model for the Numerai tournament. Stake NMR: Use the Numerai platform dashboard to stake your NMR tokens on the model you believe will perform well. Performance Assessment: After each tournament round, models are evaluated. If your prediction is accurate, you’ll earn additional NMR. If not, a portion of your stake may be burned. Unstaking: You can withdraw your staked NMR at any time, although unstaking requests typically take a month to process. This staking mechanism underpins the value of Numerai (NMR) Crypto, creating continual demand and a feedback loop that benefits active participants. Numerai (NMR) Price Prediction 2025–2030 The future of Numerai (NMR) Crypto remains one of the most talked-about topics in the AI and blockchain sectors. Here’s a detailed, scenario-based Numerai (NMR) price prediction outlook from 2025 through 2030 based on current trends and expert insights. 2025 Numerai (NMR) Price Prediction The first year after significant growth or milestone events is often volatile for Numerai (NMR) Crypto, as both hype and real-world adoption collide. Bullish Scenario: NMR could rise to $50–$55 if Numerai forges new partnerships, AI trading gains momentum, and interest from both the crypto and institutional sectors surges. Bearish Scenario: NMR could fall to $13–$20 amid overall crypto market downturns, early investor selloffs, or lack of user adoption. Neutral Scenario: NMR may stabilize between $24–$32, reflecting steady platform usage and consistent, if unspectacular, development. 2026 Numerai (NMR) Price Prediction By 2026, Numerai (NMR) Crypto’s ecosystem maturity and increasing attention to AI-powered funds could boost its valuation—or challenge its staying power if progress slows. Bullish Scenario: NMR could hit $70–$82 with robust staking participation, successful institutional partnerships, and a thriving model-building community. Bearish Scenario: NMR could retrace to $23–$30 if adoption stalls, or if competing AI crypto platforms overtake Numerai’s innovation. Neutral Scenario: NMR might consolidate between $32–$38, suggesting healthy but measured growth within a maturing ecosystem. 2027 Numerai (NMR) Price Prediction With more time for the AI-crypto sector to expand, Numerai (NMR) Crypto could take on an even larger role in decentralized finance. Bullish Scenario: NMR could reach $100–$120 if it secures mainstream recognition and significant institutional holdings, especially as AI in finance gains legitimacy. Bearish Scenario: NMR may decline to $28–$45 if user growth stalls or new blockchain-based hedge funds draw investor attention. Neutral Scenario: NMR could find a middle ground at $50–$60, continuing its trend as a niche but respected AI-crypto asset. 2028 Numerai (NMR) Price Prediction As Numerai’s use cases solidify by 2028, NMR’s performance will likely reflect broader adoption of blockchain-based AI investment strategies. Bullish Scenario: NMR might climb to $145–$175 if it’s widely embraced for AI-powered quantitative trading across finance sectors. Bearish Scenario: NMR could dip to $27–$41 if the pace of innovation slows and other more advanced platforms emerge. Neutral Scenario: NMR may trade steadily in the $60–$67 range, reflecting a healthy but competitive market. 2029–2030 Numerai (NMR) Price Prediction Long-term, Numerai (NMR) Crypto’s value will likely depend on its position as a leading bridge between AI, blockchain, and real-world finance. Bullish Scenario: NMR could soar to $300–$360 by 2030 if Numerai dominates AI-based investment, maintains consistent ecosystem growth, and secures its place as a standard for decentralized hedge funds. Bearish Scenario: NMR could slide to $31–$54 if rivals overtake it technically or market sentiment turns decisively against smaller-cap AI tokens. Neutral Scenario: NMR may consolidate in the $75–$80 range, reflecting sustained—but not exponential—growth, and a stable product with ongoing community backing. Numerai (NMR) Price Prediction: Conclusion Numerai (NMR) Crypto is at the forefront of combining AI, blockchain, and financial markets into one innovative platform. Our scenario-based Numerai (NMR) price prediction acknowledges a wide range of possible outcomes, from explosive growth fueled by mainstream and institutional adoption, to more organic, moderate gains, or even competitive setbacks. Investors and analysts view Numerai (NMR) Crypto as one of the most intriguing assets in the decentralized AI space. If you’re considering an investment, keep in mind both the high potential rewards and the market risks associated with pioneering sectors. As always, do your own research, follow the latest Numerai (NMR) news, and stay up to date on developments to inform your investment decisions. FAQs 1. Is Numerai (NMR) Crypto a good investment?Numerai (NMR) Crypto offers unique value as an AI-powered token for hedge fund predictions. Its investment prospects depend on the project’s ongoing adoption, technical innovation, and evolving competition. 2. Where can I stake Numerai (NMR) Crypto?You can stake NMR tokens directly on the Numerai tournament platform by submitting and backing your predictive models. 3. What are the risks of investing in Numerai (NMR) Crypto?As with all cryptocurrencies, NMR is subject to volatility and technological risk. Its niche focus on AI and data science means success will depend heavily on continued adoption and real-world utility. Disclaimer: This article is for informational purposes only and does not constitute investment advice. Cryptocurrency investments are highly volatile and involve risk. Please conduct your own research before investing in any digital asset.

What Is BONK and Why Pump.fun Fueled the BONK Price Surge

BONK recorded an impressive 82% rally in the past two weeks, with prices now trading at $0.00003424 and daily volumes consistently topping $1 billion. This climb is not just a meme-driven jump: the structural shift in the meme coin landscape, particularly the stunning reversal against Pump.fun, has made BONK and the BonkFun ecosystem central to Solana’s renewed DeFi growth. This article explores what is bonk, why it flipped Pump.fun, the latest bonk price rally fundamentals, and future projections every prospective investor should know. Source: CoinMarketCap What is BONK, and Why It Flipped Pump.fun BONK originated in late 2022 as Solana’s first community-driven meme coin, launching with strong grassroots support and rapidly establishing itself as a Solana mainstay. However, what is bonk today goes far beyond its initial joke currency status. As the key asset of the letsbonk movement, BONK sits at the center of a growing ecosystem: products like BONKSwap and especially BonkFun have become powerhouses that boost bonk price and utility. In early 2025, the meme coin sector’s attention pivoted to pump.fun, a token factory dApp that enabled rapid meme coin launches on Solana. While the market feared that pump.fun’s imminent token generation event (TGE) would drain liquidity from major coins like bonk, the outcome proved different. BonkFun, an ecosystem product directly interlinked with letsbonk, not only resisted TGE outflows but decisively flipped the narrative, outshining pump.fun at its own game. Source: Dune BonkFun’s breakthrough fee model recycles 58% of all trading fees into buying and burning BONK, generating relentless buy pressure. Additionally, 15% of fees are staked in SOL on validator nodes, contributing to Solana’s network strength while easing SOL sell pressure. This “bonkwheel” or “bonkcycle” ensures the ecosystem feeds back into BONK’s price support, creating a positive cycle for investors and speculators alike. In comparison, pump.fun’s unclear tokenomics and so-called “predatory” SOL selling model have made BONK—and the letsbonk community—the clear favorites for value-driven meme coin exposure. As BonkFun continued its dominance throughout pump.fun’s own TGE, even industry analysts now refer to BONK as structurally undervalued, with the real upside play shifting to Bonk and the broader letsbonk ecosystem. How Pump.fun’s TGE Fueled Bonk Price and Letsbonk Growth The approach of the pump.fun TGE was expected to threaten bonk price by attracting speculative capital to the $PUMP launch. Instead, BonkFun’s robust ecosystem design led to increased attention and capital inflow into bonk. Thanks to its direct integration with letsbonk and the feedback loop from constantly buying and burning BONK, BonkFun created a self-reinforcing cycle that not only preserved, but amplified, bonk price and its community’s dominance. Pump.fun’s business model—marked by large-scale $SOL sales—was increasingly contrasted to BonkFun’s community-centric approach, making bonk price less vulnerable to major outflows. Instead, as BonkFun hit its stride, its ongoing buybacks and burns drove bonk to outperform, outperforming early pump.fun forecasts. Recent data shows BonkFun continues to command the majority of meme trading activity within Solana, making it a central value driver for bonk and the letsbonk trend alike. Bonk Price Catalysts: ETF Buzz, Technical Breakout, and Record Volumes One of the most significant drivers behind the recent bonk price rally is the ongoing buzz around a prospective Solana ETF, including speculation about a 2x leveraged ETF listing. This heightened institutional interest has been a clear tailwind for Solana ecosystem coins, and bonk directly benefits from this positive sentiment. As more traditional finance players eye Solana, the visibility and credibility of bonk and letsbonk only continues to increase, attracting new investors and sustaining bonk price momentum. Additionally, bonk broke through key resistance levels this week, igniting technical momentum across trading desks. The move has set up bonk price targets around $0.000041—levels not seen in months—and renewed trading enthusiasm within the letsbonk community. This technical breakout, coupled with the fundamental ecosystem expansion, signals strong potential for additional bonk upside. What’s more, bonk’s sustained above-average daily trading volume—consistently exceeding $1 billion—demonstrates robust organic demand and healthy market liquidity. This high-volume environment is a hallmark of both strong price support and investor confidence, key ingredients for continued bonk price appreciation over the coming weeks. Bonk Price Outlook and Investment Takeaways With the bonk price currently tracking strong technicals and enjoying structural buy pressure from letsbonk ecosystem products like BonkFun, short-term and medium-term prospects look promising. As Solana’s overall momentum is reinforced by ETF discussions and institutional flows, bonk remains the top meme coin story. However, investors should be mindful of rapid sentiment shifts typical in the meme sector. Proactive risk management is essential, as are frequent reviews of volume trends and ecosystem headlines tied to bonk, letsbonk, and pump.fun. Conclusion: Why BONK and Letsbonk Lead Post-Pump.fun BONK has become the face of Solana meme coins, not just through hype, but by building a sustainable and value-driven ecosystem. As pump.fun excitement fades and BonkFun’s flywheel spins faster, bonk price benefits from both organic demand and well-architected utility. For those seeking exposure to the next phase of Solana’s meme coin boom, following the letsbonk community—and monitoring bonk price and the evolution of the BonkFun ecosystem—may offer the best risk-reward in this rapidly evolving sector.

Bubblemaps (BMT): Blockchain Transparency Visualized

What is Bubblemaps (BMT)? Bubblemaps (BMT) is an innovative tool designed to bring transparency to blockchain data by turning data into interactive visual maps. Bubblemaps makes it easy for users to investigate wallets, reveal hidden connections, and spot potential scams. With colorful, interactive visuals, it simplifies supply auditing for both tokens and NFTs. Who Created Bubblemaps (BMT)? Bubblemaps was created by three visionaries who wanted to make blockchain data more accessible and understandable. ● Nicolas Vaiman (Co-founder & CEO): Before Bubblemaps, he was the CEO of Cryptonavia, another blockchain-focused company. ● Arnaud Droz (Co-founder & COO): His background is diverse, with experience in smart buildings, supply chain management for wine and spirits, and research in aircraft lighting. ● Léo Pons (Co-founder & CTO): An expert software engineer, he previously co-founded Cryptonavia. What VCs Back Bubblemaps (BMT)? Bubblemaps has gained the trust of some of the biggest names in venture capital and blockchain. The project is backed by firms like Consensys, INCE Capital, Momentum6, V3ntures, Polygon, Avalanche, Linea, Aptos, Fuel, Ledger, Sandbox, etc. How Bubblemaps (BMT) Works Making Blockchain Data Simple With Visual Map Bubblemaps takes a simple approach to blockchain analytics. Instead of overwhelming users with spreadsheets or raw data, it creates a visual map where each bubble represents a wallet. Here’s how it works: 1. Each Bubble is a Wallet: The size of the bubble reflects the wallet’s share of a token's total supply. 2. Connections Between Bubbles: If wallets have interacted (sent or received tokens), they are linked together. 3. Click and Explore: Users can click on any bubble to see its activity, helping them spot unusual patterns. Real-World Cases: Bubblemaps in Action Bubblemaps has already exposed some major issues in the crypto world: 1. LIBRA - A One-Sided Liquidity Exit LIBRA was marketed as a presidential meme coin, but Bubblemaps showed that 82% of the supply was held by a single cluster. Instead of selling outright, the team used a tricky strategy: adding liquidity without stablecoins, allowing them to cash out without triggering a panic. 2. HAWK - A Pre-Sale Dump Waiting to Happen Bubblemaps revealed that HAWK's team held 80% of the supply, while another 16% was secretly unlocked for presale buyers. When these buyers dumped their tokens, the price collapsed. 3. Uniswap - The Illusion of Democracy Uniswap is supposed to be governed by its community, but Bubblemaps found that Andreessen Horowitz (a16z) controls 11 wallets that together own more than 4% of UNI tokens, meaning they could pass proposals on their own. 4. Shiba Inu - The Hidden Founder Bubblemaps discovered a cluster of wallets holding over 10% of SHIB tokens. These wallets traced back to a single early purchase, likely made by SHIB’s founder. 5. Squiggles - NFT Wash Trading Bubblemaps exposed how the NFT project Squiggles used shadow wallets to buy and sell their own NFTs, making it seem like there was more demand than there actually was. Bubblemaps' Next Big Step: The Intel Desk & BMT Token Bubblemaps is now launching Intel Desk, a community-driven investigative platform. Along with this, they are introducing their own token, BMT, which will unlock premium features such as: ● Profit & Loss (P&L) Computation ● Cross-Chain Analytics ● Top 1,000 Holders Maps ● AI-Driven Cluster Interpretation Users can also submit cases for investigation, vote on which cases matter most, and allocate research resources. BMT Goes Live on Bitget Bubblemaps is changing the game in blockchain transparency. With its interactive, easy-to-use visuals, it helps users detect fraud, track large token holders, and analyze NFT projects in ways never before possible. Backed by top venture capital firms and led by a team of experts, Bubblemaps is set to become the go-to tool for blockchain investigations. If you believe in making blockchain more transparent, consider getting BMT on Bitget today! How to Trade BMT on Bitget Listing time: March 11, 2025 Step 1: Go to BMTUSDT spot trading page Step 2: Enter the amount and the type of order, then click Buy/Sell Trade BMT on Bitget now! Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading guidance. Qualified professionals should be consulted prior to making financial decisions.

Bitcoin Halving Cycles and Why Invest in Bitcoin Now?

With Bitcoin Halving 2024 just around the corner, Bitcoin investors and enthusiasts are buzzing with anticipation. This phenomenon, combined with several near-term factors, presents a compelling case for considering an investment in Bitcoin now. Let's delve into the details of Bitcoin halving cycles and explore why now might be the optimal time to grab your bitcoins. Understanding Bitcoin Halving Bitcoin Halving is a pre-programmed event that occurs roughly every four years. When it happens, the reward for mining new blocks is halved, meaning the transaction verifiers (miners) receive 50% fewer Bitcoins for verifying transactions. The upcoming halving in April 2024 will reduce the reward from 6.25 Bitcoins per block to 3.125 Bitcoins. The principle behind the halving is to decrease the rate at which new Bitcoins are generated, a rule established by Bitcoin's creator, Satoshi Nakamoto, to promote scarcity and control inflation. This scarcity is one of the fundamental reasons why Bitcoin is often likened to digital gold. Why Invest in Bitcoin Now? Predicted Price Surge JPMorgan analysts anticipate a potential dip in Bitcoin's price to $42,000 post-halving, citing market dynamics and supply-side factors. In contrast, Standard C hartered offers a more bullish outlook, forecasting a price target of $150,000 by the end of 2024 and $250,000 by the end of 2025, which are driven by reduced supply and increased institutional interest. Analysts at Bitget Academy predict a potential $95,000 for BTC this halving. Meanwhile, Pantera Capital predicts that Bitcoin’s price could soar to $35,448 in the lead-up to the April 2024 halving. They further project that following the halving, Bitcoin could continue its bull run, reaching an all-time high of $149,000. Source: Pantera Capital At the time of writing (April 16th, 2024), right before the halving date, Bitcoin is already trading at $62,523, thanks to the maturation of the market, the rise of Layer-2 solutions, as well as the launch of US spot Bitcoin ETFs. Historical Price Patterns Each halving has been a catalyst for a bull run in Bitcoin's price, largely due to the reduced supply and increased scarcity. Analysis of past events shows a significant price increase in the 6 months following a halving: ● Post-2012 Halving: Bitcoin saw an impressive over 900% increase. ● Post-2016 Halving: Bitcoin's price rose by 46% in the six months before the halving and further increased by 37% in the subsequent six months. ● Post-2020 Halving: Despite the global pandemic, Bitcoin still managed a significant 82% rise. Such patterns suggest a potential surge in Bitcoin's price post-April 2024, supporting the idea that we are still in the early stages of Bitcoin's growth trajectory, and now may be a critical time to invest. Trade BTC on Bitget now! While the potential for significant returns post-halving is attractive, investors should also consider the risks involved. While historical patterns are enticing, they are not guarantees of future performance. Conclusion This Bitcoin halving in April 2024 presents a unique investment opportunity, backed by historical price increases and a tightening supply. With predictions of substantial price rises and a more mature market, now might be a strategic time to consider adding Bitcoin to your investment portfolio. However, as always, it remains crucial to approach this with a balanced perspective, acknowledging both the opportunities and risks inherent in cryptocurrency investments. Recommended reads: What to Prepare for Bitcoin Halving 2024 as An Investor Bitcoin Halving: Will We Land on the Moon? Easy Steps to Purchase Bitcoin Before the Halving Rush Investment Tips To Ride The Halving Waves Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.

What to Expect and Prepare for Bitcoin Halving 2024 as An Investor

The next Bitcoin halving is just around the corner, expected to happen in less than a month, around April 20. This event is a big deal in the Bitcoin community and has everyone on the edge of their seats. The Bitcoin halving is more than just an important moment for Bitcoin itself; it has far-reaching implications for the entire cryptocurrency market and the broader financial market. This event, which effectively cuts the reward for mining Bitcoin in half, has historically triggered significant market activity and speculative interest. In this article, we will explore what factors will influence the 2024 Bitcoin halving, and what you, as an investor, can expect and how you should prepare for this event. Factors Shaping the 2024 Halving As Bitcoin approaches its next halving event in April 2024, the landscape of the cryptocurrency ecosystem is undergoing profound transformations. This pivotal moment in Bitcoin's journey is marked by a confluence of factors that have the potential to reshape its market dynamics and impact investors across the board. Miner Positioning The halving presents a significant challenge for Bitcoin miners, as it slashes their block rewards in half. To prepare for this event, miners have strategically raised funds through equity and debt issuances while liquidating reserves. These proactive measures indicate a concerted effort within the mining community to navigate the impending financial strains and maintain operational viability in the face of reduced revenue streams. Onchain Activity Growth The advent of ordinal inscriptions has injected new life into Bitcoin's onchain activity. These digital collectibles, akin to NFTs, have witnessed explosive growth, with millions inscribed on the Bitcoin blockchain. Notably, this surge in onchain activity has translated into substantial transaction fees for miners, highlighting the potential of ordinal inscriptions to boost miner revenue and sustain network security amidst dwindling block rewards. With over 59 million assets inscribed to date, generating upwards of $200 million in transaction fees, ordinals have emerged as a significant revenue stream for miners. However, scalability concerns loom large, underscoring the need for scaling solutions to accommodate increased transaction throughput and usage. Layer-2 Solutions In response to scalability challenges, the Bitcoin community is actively exploring Layer-2 solutions such as rollups to enhance network efficiency and usability. Additionally, the adoption of taproot-enabled wallets signals a collective effort to address Bitcoin's architectural limitations and enable greater programmability. These developments signify a collective push towards enhancing Bitcoin's scalability and expanding its utility beyond its traditional use cases. Market Impact of ETFs The approval of Bitcoin ETFs in the United States heralds a new era of mainstream adoption and investment in the cryptocurrency. These ETFs provide investors with convenient access to Bitcoin exposure, potentially reshaping the market structure by introducing a steady demand source. Initial net inflows into Bitcoin ETFs have been significant, hinting at their potential to mitigate post-halving sell pressure and stabilize Bitcoin prices in the long run. What Investors Can Expect from Past Trends The forthcoming halving will mark the fourth occurrence since Bitcoin's inception, with miners' rewards set to decrease from 6.25 BTC to 3.125 BTC per block. Despite the recent changes in external factors such as the introduction of Bitcoin ETF and Bitcoin Ordinals, to gain insights into what may lie ahead, it's still wise to examine the patterns and outcomes of previous halving events. By analyzing historical data, investors can better understand the potential impacts and make informed decisions regarding their Bitcoin holdings. Historical data of Bitcoin reveals a pattern of price appreciation leading up to and following halving events, though the magnitude of these movements varies. The First Halving In November 2012, Bitcoin experienced its inaugural halving, setting the stage for unprecedented price growth. Leading up to the event, Bitcoin surged by 139%, followed by a remarkable 923% increase in the six months post-halving. Also, following the first halving, Bitcoin reached a new all-time high (ATH) in just over a year. This extraordinary performance underscored the significance of supply reduction in driving bullish sentiment and investor demand. The Second Halving The second halving, occurring in July 2016, demonstrated more subdued but still notable price movements. Bitcoin's price rose by 46% in the six months leading up to the halving and further increased by 37% in the subsequent six months. This time, it took Bitcoin 527 days to reach a new ATH after halving. While the gains were less dramatic compared to the first halving, they reaffirmed the market's responsiveness to supply-side dynamics. The Third Halving In May 2020, amid the global uncertainties surrounding the COVID-19 pandemic, Bitcoin underwent its third halving. Despite a slight decline of 2% in the six months preceding the event, Bitcoin rallied by 82% in the following six months. Even though Bitcoin took 548 days to achieve a new ATH in this third halving, the resilience amid macroeconomic turbulence highlighted Bitcoin's growing adoption as a store of value and hedge against inflationary pressures. Price Projections As the countdown to the 2024 halving continues, various predictions and projections have emerged from analysts and industry experts. JPMorgan analysts anticipate a potential dip in Bitcoin's price to $42,000 post-halving, citing market dynamics and supply-side factors. In contrast, Standard Chartered offers a more bullish outlook, forecasting a price target of $150,000 by the end of 2024 and $250,000 by the end of 2025, which are driven by reduced supply and increased institutional interest. Binance CEO Richard Teng echoes optimism, envisioning Bitcoin surpassing $80,000 by the end of the year, aligning with his earlier projections. Meanwhile, analysts at Bitget Academy predicted a potential $95,000 for BTC this halving. Based on the trends of the three previous halvings, it's reasonable to anticipate a new BTC ATH between August and December 2025. This indicates that we are still in the early stages of Bitcoin's growth trajectory. To read more about Bitget Academy’s BTC price predictions for 2024 halving, please visit Bitcoin Halving: Will We Land on the Moon? How Investors Can Prepare for the 2024 Bitcoin Halving While historical trends and projections offer valuable insights, investors must approach predictions with caution and consider various factors influencing Bitcoin's price dynamics. Market sentiment, macroeconomic conditions, regulatory developments, and technological advancements all play significant roles in shaping Bitcoin's trajectory. Additionally, liquidity in the market can impact price swings, potentially leading to deviations from projected scenarios. With Bitcoin halvings historically triggering significant price volatility, it's essential for retail investors to adopt a strategic approach to navigate the ensuing market dynamics. Understanding the Halving Dynamics The Bitcoin halving, occurring roughly every four years, entails a reduction in the rewards for mining a block, effectively halving the rate at which new Bitcoins are created. This event has historically been accompanied by heightened price volatility, making it a focal point for investors seeking to capitalize on market movements. However, it's crucial for retail investors to manage their expectations and recognize that past performance does not guarantee future results. Managing Expectations and Educating Yourself One key strategy for retail investors is to adopt a long-term mindset and resist the temptation to engage in short-term speculation. Dollar-cost averaging, a method where investors regularly invest fixed amounts regardless of price fluctuations, can help mitigate the emotional impact of investing and promote disciplined decision-making. By adhering to a fixed schedule, investors can avoid the pitfalls of trying to time the market and instead focus on accumulating Bitcoin over time. Practicing Proper Risk Management In addition to managing expectations, retail investors should prioritize proper risk management and diversification. It's essential to conduct thorough research and understand the factors that can influence Bitcoin's price, including inflation, macroeconomic trends, technological developments, and changing regulations. By diversifying their portfolios and managing risks effectively, investors can mitigate downside exposure and position themselves for long-term success in the volatile cryptocurrency market. Going Beyond the Hype While Bitcoin halvings often generate significant hype and speculation, it's crucial for investors to look beyond the surface and focus on fundamentals. Educating oneself about the underlying technology and potential use cases of Bitcoin can help investors make informed decisions based on sound analysis rather than market sentiment. By remaining grounded in reality and avoiding surrendering to hype, investors can navigate the market with greater confidence and resilience. Understanding Macro Influences In addition to understanding the dynamics of Bitcoin halvings, investors should also be mindful of macroeconomic factors that can impact Bitcoin's price. Global trends such as inflation rates and interest rate movements can influence investor sentiment and market dynamics. By staying informed about broader economic trends and their potential implications for Bitcoin, investors can make more informed decisions and position themselves strategically in the market. Looking Towards the Future As retail investors prepare for the upcoming Bitcoin halving, it's essential to maintain a long-term perspective and focus on the broader implications of this event. While halvings may trigger short-term price volatility, they also underscore Bitcoin's core value proposition as a scarce, decentralized asset. By approaching the halving with caution, conducting thorough research, and practicing proper risk management, retail investors can take advantage of the potential of the upcoming Bitcoin halving as an opportunity to capitalize on the market fluctuations and accumulate Bitcoin for long-term wealth accumulation. Trade BTC on Bitget now! Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.

Bitget Study on BTC Halving: Expectations and Investment Decisions 

Introduction: Bitget, the world's leading cryptocurrency exchange and Web3 company, undertook a comprehensive study to unravel the financial objectives and anticipations of cryptocurrency investors. The study aims to pinpoint pivotal trends and opportunities by conducting external surveys, offering insights to refine the Bitget platform and services. Methodology: The study delves into Bitcoin Halving and its potential implications for investment decisions. It encompassed a representative sample from the general population of cryptocurrency investors and anonymized the data for analysis. A diverse range of demographics was covered, including participants from countries in West Europe, East Europe, South East Asia, East Asia, MENA, and Latin America regions, totaling 9748 participants during November and December in 2023. Bitget Study Highlights: ● 84% of participants anticipate BTC surpassing the previous bull market's all-time high of $69,000, and almost all other regions exceed 80%, except East Europe. ● Globally, more than half of the respondents predict Bitcoin prices during the halving to range between $30k and $60k, while 30% of them believe the price would break $60,000. ● Approximately 70% of respondents express plans to increase crypto investments with higher proportions in MENA and East Europe indicating a stronger inclination to increase investments. ● The data suggests a "short-term cautious, long-term optimistic" sentiment among Western European investors. Global Perspectives: The study reveals a widespread belief in the significant impact of Bitcoin halving on its price, with approximately 78% of investors expressing this sentiment globally. Optimism is notably high in Latin America, East Asia, and South East Asia markets, with 84%, 82%, and 81% foreseeing a substantial impact. Emerging economies in MENA also express a keen interest, with proportions around 80%. West Europe and East Europe exhibit relative caution, with proportions at 71%% and 73%, respectively. Price Expectations: The investor predictions for Bitcoin's price around the 4th halving in April 2024 vary across markets. Approximately 53% of investors globally anticipate the price fluctuating between $30,000 and $60,000, while 30% believe it would break $60,000. Latin America stands out as a particularly optimistic market, with 46% of investors expecting prices to exceed $60,000 and 49% thinking it will range between $30,000 and $60,000. Next Bull Market: Despite the majority of the investors expecting Bitcoin prices below $60,000 during the halving, a resounding 84% of participants anticipate BTC surpassing the previous bull market's all-time high of $69,000, and almost all other regions exceed 80%, except East Europe. Next Bull Market Price Predictions: The survey delves into investors' predictions for Bitcoin prices in the next bull market. 55% of investors predict the next bull market will fluctuate between $50,000 and $100,000, while 8% of investors expect prices to exceed $150,000. West Europe is more optimistic about the next price high, with 41% predicting it to exceed $100,000, even though investors in this region are relatively cautious about the BTC halving impact. It may indicate that these investors are 'short-term cautious, long-term optimistic,' as some Western European investors do not believe the Bitcoin halving will trigger a new bull market. Among the investors who anticipate Bitcoin to exceed $150,000 in value, the greatest percentage hails from Latin America and MENA, which are also optimistic about the Bitcoin price prediction around the Bitcoin 4th halving. Investment Intentions for 2024: Looking ahead to 2024, approximately 70% of investors express plans to increase their crypto investments. Higher proportions in MENA and East Europe indicate a stronger inclination to increase investments. Meanwhile, more investors in South East Asia and East Asia show a preference for maintaining their current investment positions. Conclusion: The Bitget Study on BTC Halving provides comprehensive insights into investors’ expectations and investment plans. With a significant majority anticipating Bitcoin's price surge and expressing intent to increase investments, these findings offer valuable input for Bitget's strategic enhancements. The data showcases varying perspectives across global regions, emphasizing the importance of considering these diverse expectations in shaping platform features and services.

Bitcoin Had A Brief But Sharp Dip to $40,400, $400 Million On Market Liquidated

As we count down to the Bitcoin halving event each day, the price of Bitcoin has been consistently going upwards, albeit with some hiccups. However, on early December 11, an unexpected surge in selling occurred, catching the market off guard. What caused this sudden and significant change? Let's explore some possible reasons behind this unexpected shift. "Why would it dip???": An Alert for Greedy Investors Perhaps this is currently one of the most frequently asked questions. Just a few days ago, Bitcoin's price shot up to over US$44,000 because of a strong uptrend, possibly boosted by news that BlackRock was making moves for a Bitcoin ETF. However, things changed on the morning of December 11, 2023. Bitcoin suddenly fell from US$42,000 to US$40,400, then quickly bounced back to US$42,190 when this article was written. Despite the rebound, the exceptionally turbulent period led to a substantial loss of leveraged positions, resulting in the liquidation of positions totaling nearly US$409 million. In particular, Bitcoin alone contributed US$104 million, comprising US$90.72 million in long positions and US$13.33 million in short positions, as reported by CoinGlass. This turbulence affected more than 119,000 traders (Source: https://www.coinglass.com/LiquidationData) The Affected Cryptocurrencies The sudden drop in Bitcoin and its quick bounce back had a ripple effect on other altcoins. Alongside Bitcoin, four other tokens—ETH, SOL, XRP, and DOGE—went through significant liquidation. Of these, ETH saw the highest liquidation at US$82 million, followed by US$23.44 million for SOL. Source: https://www.coinglass.com/LiquidationData As of now, this recent crash in the crypto market may not have a direct explanation, but it can be mainly attributed to 3 possibilities: Upcoming US Inflation Data and Federal Reserve Decision This week, the Federal Reserve will announce inflation data in the United States and make its final decision on policies for the year, with the probability of the Federal Reserve cutting interest rates next year being reduced. No matter the outcome, these announcements that are scheduled for Wednesday could affect aggressive bets that people have made on interest rate cuts. Interestingly, the price of Bitcoin was still considered "stable" a few days back when the unemployment rate was announced for November. The rate went down to 3.7%, which is an improvement from the 3.9% reported in October (Based on information from the Bureau of Labor Statistics). Market Deleveraging According to Richard Galvin, co-founder of Digital Asset Capital Management, the market downturn might not be tied to any specific news but could result from market deleveraging, since market leverage had risen materially. Bitcoin Chicago Mercantile Exchange (CME) Futures Gap A few days ago, analyst Willy Woo suggested that there's a gap in the Bitcoin Chicago Mercantile Exchange (CME) futures market that needs to be filled. As CME futures don't trade continuously, this leads to differences between closing and opening prices based on Bitcoin's price movement when the market is closed. With this volatility, Willy Woo speculates that Bitcoin's price might fluctuate between the price levels of US$39,000 and US$41,000. Source: X Keep Your Fingertips On The Heat of the News In this unpredictable market, it's important to be careful regarding information and predictions from the media and influential figures. The price of assets can be influenced by various factors, and it's crucial to recognize that it might not always reflect the true trends of the market. Hence, it's essential for you to do thorough research before making any investment decisions. Whether you're considering taking advantage of a Bitcoin price dip or simply keeping an eye on the current market situation, Bitget Academy is dedicated to providing you with more detailed information and the latest news. Explore the other trending news we have for you: SEC Delaying Franklin's BTC ETF and BTC Breaking $40k How Mint Cash Caused USTC To Soar 400% BRC-20 Tokens: A Step Back and Forward Disclaimer: The opinions expressed in this article are for informational purposes only. This article does not constitute an endorsement of any of the products and services discussed or investment, financial, or trading advice. Qualified professionals should be consulted prior to making financial decisions.

The Crypto Burrito (Volume II): Terra’s Fall From Grace

We talked about Ethereum Merge, the one good bit of news in 2022, in The Crypto Burrito’s first volume. Nonetheless, 2022 proved itself to be a year to forget, with giants’ season ending almost literally in the blink of an eye. The first event to turn the crypto market upside down is the Terra (LUNA) crash. The Crypto Burrito (Volume I): Ethereum Merge The Crypto Burrito (Volume II): Terra’s Fall From Grace The Crypto Burrito (Volume III): The Never-Ending Saga of FTX The Crypto Burrito (Volume IV): Understanding 2022’s Crypto Bankruptcy Filings How Terra (LUNA) worked Terra (LUNA) emerged in 2018 - 2019 as a Korean-based payment app. Created with a focus on decentralized stablecoins, Terra’s KRW-pegged stable was once accepted in CU (one of the biggest convenience store chains in South Korea) and CJ O Shopping (the so-called founder of the Korean home shopping industry). To issue physically backed stablecoins, the issuer is required to maintain the corresponding holding of cash and cash equivalents in the currency it’s pegged to, for example the US-Dollar (USDT and USDC). Algorithmic stablecoins (also referred to as algo stablecoins, algo stables or algos for short) are crypto-native assets whose value is maintained by an automated set of rules (algorithm). Usually, an algo stablecoin is linked to another crypto asset, in the case of Terra (LUNA), the smart contracts of Terra’s stable currencies constantly adjusted their supply to keep the price stable. The Faulty Design Terra (LUNA) adopts the Seigniorage mechanism, meaning that the burning (supply decrease) and minting (supply increase) of multicoins (in our case LUNA and another Terra stablecoin) are controlled by the algorithm. Simply put, if, for example, UST (now USTC) price is higher than US$1, more UST would be created by burning LUNA (now LUNC). Demand for UST would then be fulfilled, causing its price to return to the 1:1 peg. This is the ‘easy’ scenario because the UST surplus is allocated to the community treasury as rewards and the supply of the reference token (a.k.a. LUNA) is reduced, which would most likely affect its price in a positive way. A win-win situation for stakeholders in the ecosystems. The opposite would be tricky. If the stable price falls below the peg, a part of its supply will be burned to meet demand. More reference tokens will be minted through the process, and here’s the problem: In doubt of a losing peg, investors’ tendency is to swap the stablecoin into a safer asset, could be BTC or physically-backed stablecoins, leading to a bank run on the seigniorage algorithmic stablecoin. Selling pressure further lowers this stablecoin price, thus creating even more reference tokens, which at the same time is under scrutiny by the market. In the worst-case scenario, not only is the Seigniorage mechanism unable to save the stablecoin’s peg, but it also destroys the reference token. That is exactly what happened with LUNA and UST. UST raised to the Top 5 biggest stablecoins in 2021 by market capitalization as the Terra ecosystem flourished. Even at its prime, UST’s deviation from peg was still way higher than the physically backed stablecoins (USDT, USDC, BUSD) and the asset backed stablecoin (DAI), and note that DAI is only soft-pegged to the US-Dollar. There had been several warnings prior to the ultimate endgame in May 2022, such as the bets against LUNA by AlgodTrading and GiganticRebirth. They did predict that LUNA price would fall, albeit most couldn’t visualize how vicious the truth would be. Look at the chart below, which shows the percentage change of LUNA price and UST price versus the percentage change of LUNA supply: Historically speaking, any minimal decrease or increase in UST price results in quite a change in LUNA price. During the course of May, LUNA was destined to hit rock bottom. One week (May 07 to May 14) and UST lost 87.56% of its peg, LUNA lost 99.99% of its value and LUNA supply skyrocketed by 19,087 times. Yes you are reading it correctly. It took LUNA less than six months into the year 2022 to become a memecoin, and of course, talk about UST, it’s safe to say that many teams had to reassess the plan to rely on the Seigniorage economic model after seeing how things went wrong (at warp speed if we must say) for their predecessor. Conspiracy Theory versus What We Know Around the time LUNA/UST crashed, many on social media pointed fingers to some U.S. financial giants, in particular BlackRock and Citadel Securities, since the death spiral of Terra involved multiple transactions of great value. The question is, what is the reason for this move, assuming that it could be true? LUNA advocates and many who believed in the conspiracy theory provided four possible explanations. First of all, UST popularity increased way too fast, eating away the market share of physically backed stablecoins, one of which (USDC) backed by BlackRock and Fidelity. On April 18, 2022, UST became the third largest stablecoin by market cap at US$17 billion, behind USDT (US$82 billion) and USDC (US$49 billion) only. Another motive could be to acquire the Bitcoin reserves of LUNA Foundation Guard (LFG), a non-profit organization established in January 2022 solely to defend UST peg and support the Terra ecosystem. In February 2022, LFG raised US$1 billion through the LUNA sale, with Jump Crypto and Three Arrows Capital being the lead investors. Familiar names, right? You will see these names later. LFG continuously accumulated Bitcoin; as of May 07, 2022, LFG was in the Top 10 Bitcoin holders in the world. This is a breakdown of LFG reserves before everything happened: Social media users argued that LFG made itself the perfect target because (i) Jump Trading (the parent company of Jump Crypto) happened to suggest LFG to create a UST price floor with the help of their Bitcoin reserve, i.e. a ‘backstop short-term UST redemption’ (per Terra founder Do Kwon), (ii) LFG Bitcoin reserves had a lot BTC and (iii) Do Kwon was arrogant enough to imply his project is invincible and brag about LFG. An UST depeg would force LFG to sell Bitcoin at a discounted price to retail investors. Source: CoinDesk LFG indeed had to put their BTC reserve for sale at a much lower price compared to the average purchase price, and that was it. And of course, as the founder of Terra, Do Kwon had the access to manipulate LUNA price at his will, building a house of cards with the trumpery LUNA and the 19.5%-stable-yield decentralized bank Anchor ponzi. But this isn’t just a conspiracy theory; South Korean prosecutors have, in fact, accused Kwon of price manipulation after they obtained concrete evidence about the act. Previously, the Interpol issued a red notice for him at the request of Korean law enforcement authorities. Last but not least, well, some might say UST would sooner or later fall prey to authorities’ investigations, because it was decentralized. What we do know is that this was a complicated plot: Check out Chainalysis’ report here. The complex nature of the action and the transaction sizes are what buoyed up the conspiracy theory started on 4chan, which was then shared to the Twitter community by Cardano founder Charles Hoskinson. The tweet was later deleted. Source: Screenshot from Twitter BlackRock and Citadel Securities quickly put out an official statement denying their involvement in the notorious event. Gemini, which appeared in the story as the intermediary who gave two giants the loans to prompt the move, also denied the legitimacy of this theory. Community Attempt Before the chaos kicked in, Terra was a thriving ecosystem with more than US$21 billion in TVL as of May 2022 (about 10% of DeFi TVL and 90% of Cosmos TVL at that time), its own decentralized stablecoin (an impartial, low-volatility, crypto-native asset as the ecosystem’s central medium of exchange), Mirror - an exchange that allowed for synthetic asset trading (assets that tracked real-world assets such as securities) and home to nearly 100 dedicated projects. The storm swept away US$40 billion from the crypto market and triggered a chain of unfortunate events that sent the market into a grim winter, but that didn’t stop Terra community to continue to root for the chain. Do Kwon and Terraform Labs (TFL) already moved on with Terra (LUNA) 2.0, hence the dismissal of the original project. Disapproved of Kwon and TFL’s opinion, a team of LUNA (now becomes LUNC) diehard supporters created their own community called Terra Rebels, with core developers Edward Kim and Tobias Andersen, and published a roadmap for the revival of the once mighty Terra 1.0 on their official website. One of the key achievements was the implementation of the 1.2% tax burn for on-chain transactions of LUNC and USTC in September 2022, leading to a 250% jump in LUNC overnight. The idea was to encourage as much burn as possible so that LUNC price can recover in the shortest possible time, but apparently, it came with two downsides: • Even with the 1.2% tax burn, it still takes an extremely long time to bring LUNC supply to the amount before May 14; and • A high tax fee may very well dissuade people from trading LUNC and UST, leading to a reduction in daily volume. A new proposal that planned to lower the tax burn to 0.2% and devote 10% of tax revenue for builders passed the vote in October, hence the jump in LUNC volume as well as LUNC burn amount in November. Despite the efforts, LUNC return didn’t seem to improve. With Edward Kim and Tobias Andersen leaving Terra Rebels at the end of December 2022, chances that LUNC could recover become thinner than ever. The Next Dominoes To Fall Terra (LUNA) collapsed, triggering liquidations of both retail and institutional investors. Because of Terra, 2022 has become the year of bankruptcy - FTX victims are not included. At least three moguls - Three Arrows Capital (3AC), Voyager and Celsius - have gone, most likely forever, each dragging several key market participants down with them. Three Arrows Capital The first piece of the puzzle is 3AC. According to the Financial Times (FT), the Singapore-based hedge fund managed a total of over US$18 billion at its peak. However, the Monetary Authority of Singapore (MAS) reported on June 30, 2022 that 3AC provided false information regarding their asset under management (AUM), which was capped at US$179 million in 2020 and 2021, and their relocation to the British Virgin Islands (BVI) in 2021. During the time when LUNA and UST prices were depreciating, 3AC already received questions about their LUNA exposure, but the co-founder and CEO Su Zhu convinced stakeholders that everything is fine, only to tweet about being ‘in the process of communicating with relevant parties’ on June 15, 2022. Clearly, the soundness of their portfolio was no longer guaranteed, and within the span of a few days, counterparties began to liquidate 3AC’s assets and liquidations:• June 15, 2022: BlockFi liquidated 3AC loans • June 17, 2022: Genesis Trading, FTX, Deribit and BitMEX liquidated 3AC positions • June 29, 2022: BVI court ordered the liquidation of 3AC • July 01, 2022: Deribit, among other parties, initiated 3AC’s liquidation application in BVI court. Now, 3AC is a story about risky leveraging practices and poor communication with counterparties. Note that it could’ve been more fathomable (though still not justified) if 3AC had been a venture capital firm, yet it was a hedge fund. It was discovered that 3AC had long positions of approximately US$560 million in LUNA and UST at their peaks, which shrunk to only $600 in May. Their positions were highly leveraged using counterparty funds stored on Anchor Protocol. The last straw was the depeg of stETH on June 14, which forced 3AC into selling 60,000 stETH and sparked questions about the fund’s solvency. What made the situation worse was a lack of communication between 3AC execs (Su Zhu and Kyle Davies) and counterparties, who lended US$3.5 billion to the fund. Before the tweet on June 15, 3AC went radio silent on Twitter, Zhu even deleted his Instagram. Thereby the remaining 3AC assets in the U.S. were frozen by a district court on July 12, 2022. Communications were already limited during the ‘summertime sadness’, and became much harder after the founders’ flee, although they tweeted a lot and seemed to plot a comeback when FTX crumbled. Hardly has anyone reported about seeing Zhu and Davies ever since, though there are speculations that Zhu is currently in Dubai and Davies in Bali. That doesn’t stop liquidators from pursuing them. For the first time ever, a subpoena was served on Twitter - the addressee being Kyle Livingston Davies. Let us quote nic_carter: ‘Shouldn’t have tweeted so much eh Kyle?’ We’ll discuss the bankruptcy filings of 3AC, together with ‘prominent’ bankruptcy filings of 2022 in a later volume of The Crypto Burrito. Voyager, Celsius, And Others One’s down. Onto the next one: Crypto broker Voyager Digital Ltd., who used to be listed on the Toronto Stock Exchange (TSX). On June 22, 2022, Voyager announced their exposure to 3AC totalling US$662 million, for which they may issue a notice of default. And because of the liquidity needs arising from Terra’s crash and 3AC loans, Voyager borrowed US$200 million in cash, USDC revolver and a 15,000 BTC revolver from Alameda Ventures 15 days before they filed for Chapter 11 Bankruptcy. One of the most complex and expensive bankruptcy proceedings, Chapter 11 allows a company to restructure its debts and obligations while remaining in operation. While Voyager handled things in quite a swift, decisive manner, Celsius execs waited for over a month after pausing customer withdrawals and transfers to declare Chapter 11 Bankruptcy, and that was after they had paid back loans of US$900 million from MakerDAO, Aave and Compound Finance. Babel Finance, Vauld, BlockFi, Genesis were among the big players hit the hardest during this difficult period. Yet we want to highlight the trouble a major secondary victim of Terra (LUNA) had to go through, that is, Tether - issuer of USDT. There had been US$7.6 billion in USDT redeemed for fiat from May 07 to May 16, 2022, placing enormous pressure on the stablecoin’s peg. On May 12, USDT price fell to as low as US$0.95 on a few exchanges. Source: Cryptowatch Tether had to distance itself from 3AC, citing rumours about their lending exposure to 3AC ‘are categorically false’. With regards to Celsius’ loans, the announcement confirmed that ‘Celsius position has been liquidated with no losses to Tether’. With Tether being the backbone of crypto markets (40-50% dominance), speculation about Tether’s solvency did shake the whole industry to the core, especially when they hardly provided any official audits back then and kept a suspiciously large portion of their holdings in (Chinese) commercial papers, which appeared to be far riskier than the expected risk profile of a stablecoin issuer. Tether accelerated the reduction of commercial papers and declared ‘zero’ commercial paper reserves in October, 2022. Closing Thoughts Crypto investors entered the year 2022 with a rocky start - Bitcoin tumbling to US$40,000, Ether to US$3,200, the Federal Reserve (FED) expecting to turn hawkish to combat inflation and the tension in Ukraine escalating. Fear and uncertainty around the Terra contagion made BTC breach US$25,000, single-handedly defining a new crypto winter. More importantly, the UST failure raises doubts about the feasibility of a true decentralized stablecoin. We need to keep in mind that algo stablecoins have been in a constant state of evolution, and the faults in UST design can serve as valuable input for the development of future algorithmic stablecoins, in particular those with the Seigniorage model. A purging is needed to strengthen the whole industry, which, by the way, needs to move completely on-chain for better transparency. Meanwhile, in the case of Celsius, it should be emphasized that the first creditors to receive full loan repayments were DeFi lenders, allegedly telling us that DeFi is the only way forward. 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