Gemini Space Station, Inc. (NASDAQ:GEMI) announced a major regulatory victory on Wednesday, December 10, 2025, confirming that its affiliate, Gemini Titan, LLC (Titan), has received a Designated Contract Market (DCM) license from the U.S. Commodity Futures Trading Commission (CFTC). This approval is a pivotal moment for Gemini, marking the culmination of an arduous, nearly five-year licensing process that began when the exchange first applied for the DCM status in March 2020. The DCM license, a complex regulatory designation requiring robust governance, market surveillance, adequate financial resources, and strict compliance policies, demonstrates Gemini's continued commitment to operating within the highest levels of U.S. financial regulation, positioning it to compete directly with traditional derivatives exchanges. Opening the Door to Prediction Markets and Derivatives The immediate and primary use of the DCM license will be to allow Gemini to launch and operate prediction markets for U.S. customers. Gemini Titan plans to start by offering event contracts, which are based on simple yes-or-no questions about future events. Examples include questions on whether Bitcoin will end the year above a specific price threshold or the outcome of major global events. U.S. customers will soon be able to trade these event contracts on Gemini's web interface using their existing USD balances, with mobile app trading functionality expected to follow shortly. Crucially, the DCM license is not limited to prediction markets. The approval provides Gemini with the regulatory foundation to explore expanding its derivatives offerings for U.S. customers to include more complex instruments like crypto futures, options, and perpetual contracts. These products have traditionally seen massive trading volumes in non-U.S. markets, and their introduction by a regulated entity could significantly impact the U.S. derivatives landscape. Gemini's President, Cameron Winklevoss, highlighted the company's bold ambitions, stating that "Prediction markets have the potential to be as big or bigger than traditional capital markets." The approval immediately places Gemini in direct competition with other CFTC-regulated prediction market platforms, such as Kalshi and Polymarket, in a sector that has seen dramatic growth and high-profile trading during recent election cycles. Market Reaction and Political Context The news of the CFTC approval spurred a significant positive reaction in the market, with Gemini's stock (GEMI) experiencing a sharp increase in after-hours trading following the announcement. Investors recognized the strategic value of securing one of the most coveted regulatory statuses in the derivatives space, which opens up vast new revenue opportunities. CEO Tyler Winklevoss underscored the political significance of the timing, publicly thanking the current administration for reversing what he termed the previous administration's "War on Crypto" and praising the "pro crypto, pro innovation" stance of the current Acting CFTC Chairman. This sentiment reflects the industry's view that a more permissive regulatory environment is essential for the U.S. to lead in the rapidly evolving digital asset space. By achieving DCM status, Gemini cements its reputation as a compliance-first exchange, positioning itself as a trusted bridge for traditional financial institutions and large traders looking for highly regulated venues to manage their digital asset risk exposure. The move also signals a maturing of the U.S. regulatory ecosystem, which is increasingly providing regulated pathways for complex crypto products.

The crypto Exchange-Traded Fund (ETF) and Exchange-Traded Product (ETP) market experienced a day of significant rotation on Wednesday, December 10, 2025, as institutional investors intensified their "flight to quality" into select altcoins while Bitcoin saw minimal net inflows following a week of heavy selling. The divergent flow metrics highlight a sophisticated rebalancing of risk ahead of the Federal Reserve’s anticipated interest rate announcement later that day, suggesting capital is being moved to assets perceived to have a more favorable near-term risk-reward profile. Altcoin ETPs Lead the Charge Ethereum (ETH) and Solana (SOL) ETPs saw substantial capital influx, signaling strong conviction in their respective ecosystems. Ethereum (ETH) ETFs dominated inflows, attracting a massive estimated +$117.71 million in a single day. This daily flow accounted for approximately 62% of the total inflows Ethereum ETPs had seen over the preceding seven days, demonstrating a highly concentrated surge in demand. This activity suggests renewed institutional interest in Ethereum, potentially driven by falling exchange balances, positive technical price action, and speculation surrounding the asset's structural scarcity. Similarly, Solana (SOL) ETFs also recorded robust inflows, adding an estimated +$10.23 million. This marked the continuation of a multi-day buying trend for Solana products, which had accumulated approximately $50.42 million over the trailing seven days, confirming Solana's position as a favored high-growth altcoin exposure vehicle for institutions seeking high-beta exposure. Bitcoin Funds Stabilize but Remain Weak In contrast to the strong altcoin buying, Bitcoin (BTC) ETPs struggled to maintain positive momentum on a weekly basis, despite a small daily uptick. These products registered a modest daily net inflow of approximately +$40.87 million (equivalent to +445 BTC at the prevailing price). This positive daily reading provided a brief reprieve from the sustained selling pressure the asset has faced. However, when viewed in a broader context, Bitcoin ETFs still reflected a net weekly outflow of approximately -$182.9 million (or -1,992 BTC). This confirms the recent trend where investors have been using the high liquidity of spot Bitcoin ETFs to take profits or de-risk their positions, contributing to the asset's price consolidation around the $92,000 level. The overall flow picture on December 10th strongly supports the narrative of market rotation and recycled liquidity. Capital is being selectively reallocated from Bitcoin—where recent gains are being realized and short-term macro caution prevails—into major altcoins that are demonstrating technical strength and benefiting from increased institutional utility.

The Federal Reserve's Federal Open Market Committee (FOMC), led by Chair Jerome Powell, concluded its final meeting of 2025 on Wednesday, December 10, by delivering a widely anticipated 25-basis-point (0.25%) interest rate cut. This decision lowers the target range for the federal funds rate to 3.50%–3.75%, marking the third successive rate cut since September 2025 and the lowest level in nearly three years. The cut was heavily telegraphed to markets and signals the Fed's pivot from a stance of restrictive policy to one of accommodation, motivated by emerging signs of cooling in the U.S. economy. The Rationale for the Cut and Internal Division The FOMC stated that the decision was made "in support of its goals and in light of the shift in the balance of risks," with a clear focus on the cooling labor market. Indicators suggest that economic activity has been expanding at a moderate pace, but job gains have slowed this year and the unemployment rate has edged up to 4.4% as of September. Powell framed the decision around these labor concerns, noting that the gradual cooling of the job market was sufficient to justify the rate reduction. However, the decision was marked by an unusually high level of internal dissent. Three of the twelve voting members disagreed with the majority: two members argued against any rate cut at all due to lingering concerns over inflation, while one member voted for a more aggressive cut of 50 basis points. The division within the committee underscores the difficulty of balancing the Fed's dual mandate of achieving maximum employment and maintaining price stability in the current economic environment. Market Reaction and Forward Guidance: A "Hawkish Cut" While the 25-basis-point cut was highly priced in by markets—with a near 90% probability according to the CME FedWatch Tool—the market reaction was primarily driven by the forward guidance and the new Summary of Economic Projections (SEP), or "dot plot." U.S. stock indices, including the S&P 500 and Dow Jones, rallied modestly, and the U.S. dollar softened, reflecting expectations that lower rates would support economic activity. Bitcoin briefly traded above $94,500 following the announcement before stabilizing near $92,500. However, the Fed's updated dot plot signaled a higher-for-longer outlook than many investors had hoped for. The median policymaker projection suggests only one additional 25 basis point cut in 2026. This cautious projection, combined with language in the official statement emphasizing that future moves will be strictly data-dependent, led many analysts to characterize the outcome as a "hawkish cut." Chair Powell noted that the federal funds rate is now within the broad range of estimates for its neutral value, suggesting the bar for further easing next year has been raised. The FOMC statement maintained that inflation "has moved up since earlier in the year and remains somewhat elevated," sitting above the 2% long-term target, a dynamic that continues to fuel the debate within the committee. The December decision marks the final policy action of 2025 and sets the stage for a data-driven 2026, where the Fed will closely monitor the interplay between a softening labor market and sticky inflation.

The cryptocurrency market, led by Bitcoin (BTC) and Ethereum (ETH), experienced a significant price correction and dip in the hours immediately following the U.S. Federal Reserve's Federal Open Market Committee (FOMC) meeting on Wednesday, December 10, 2025. Although the Fed delivered the widely expected 25-basis-point interest rate cut, the accompanying guidance from Chair Jerome Powell was interpreted as cautious and less aggressive than bullish investors had priced in, leading to a swift "sell the news" reaction across risk assets. This downturn underscores the crypto market's intense sensitivity to real-time shifts in global macroeconomic policy and the outlook for central bank liquidity. The Hawkish Cut and Its Immediate Impact The Fed's decision to lower the target range for the federal funds rate to 3.50%–3.75% was largely anticipated, and Bitcoin initially showed a brief pop, trading near the $94,000 level. However, this relief rally quickly faded as the details of the central bank's forward outlook emerged. Following Powell's press conference, which indicated lingering concerns over elevated inflation and suggested a slower path for future rate cuts in 2026, Bitcoin retreated sharply. BTC price fell over 10% from its intraday peak, testing strong support around the $90,700–$91,000 range and ending the day near $89,900. This downturn erased most of the gains made in the preceding week, pushing the asset back into consolidation territory. Similarly, Ethereum (ETH) and major altcoins experienced an even more pronounced drop. ETH fell nearly 3.6% to trade around $3,188, continuing a wider market downtrend. The global cryptocurrency market cap saw an overall decline of approximately 11.8% in the 24 hours following the decision, according to CoinGecko data, confirming the broad-based "risk-off" mood. Furthermore, the bearish sentiment immediately translated into institutional flow. Thursday, December 11, saw the largest single-day outflows from U.S. spot Bitcoin Exchange-Traded Funds (ETFs) on record, with an estimated $680 million exiting the products, ending a 15-day streak of positive inflows. This exodus signals a rapid de-risking by institutional investors who use ETFs to adjust their macro exposure. The Market's Disappointment The primary catalyst for the crypto market dip was the Fed's cautious tone and the updated "dot plot," which projected only one additional 25 basis point rate cut in 2026. Traders had been aggressively pricing in a more dovish scenario, anticipating potentially two or more cuts next year. The revelation that the central bank remains highly concerned about persistent inflation and is raising the bar for future easing led to a tempering of expectations. This environment, where monetary policy is less accommodative than hoped, typically reduces appetite for speculative, high-volatility assets like cryptocurrencies, as risk-free returns in traditional instruments remain competitive. Despite the sharp correction, analysts noted that the sell-off appeared orderly, with no immediate signs of panic in trading volumes, suggesting that the dip may be a healthy correction after a prolonged outperformance period and that long-term bullish positioning, particularly in the options market for 2026, remains intact.

XRP, the cryptocurrency associated with Ripple, has experienced a sharp correction in the wake of the Federal Reserve's interest rate decision, sending its price tumbling back to the critical $2.00 psychological and technical support level on Thursday, December 11, 2025. Following the broader crypto market's sharp decline, which was triggered by the Fed's "hawkish cut" and cautious forward guidance, XRP is now in a precarious position, with analysts and traders holding their breath to see if this key floor can hold. Erasing Recent Gains and Testing the Floor Just days before the FOMC announcement, XRP had shown relative strength, staging a notable rebound above the $2.00 mark and demonstrating resilience compared to Bitcoin and Ethereum. However, the subsequent risk-off sentiment that swept across the market proved too powerful. As of Thursday morning, XRP was trading precisely at or just slightly above $2.00, representing a decline of over 3% in the past 24 hours and nearly 8.3% over the past week. This swift retracement has effectively nullified the token's recent bullish momentum, with technical analysis indicating a weakening momentum and the token trading below its key short-term Exponential Moving Averages (EMAs). The $2.00 level is considered highly significant. Historically, this price point has served as a major area of buyer interest and accumulation. A sustained break below this floor could trigger a cascade of selling, potentially driving the price toward the next major technical support zone around $1.85 to $1.94, levels not seen since the massive XRP rally earlier in the year. Conversely, if buyers can successfully defend this area, it could set the stage for another relief bounce toward the resistance cluster between $2.13 and $2.30. Institutional Conviction vs. Macro Headwinds The market is now focused on whether the strong institutional demand that has recently underpinned XRP can withstand the prevailing negative macro winds. Data from earlier in the week showed continued positive net inflows into XRP Exchange-Traded Products (ETPs), suggesting that institutional investors view the asset's regulatory clarity and utility in cross-border payments as a distinct advantage. However, the record $680 million single-day outflow from U.S. spot Bitcoin ETFs on Thursday underscores the extreme de-risking currently underway by large institutional players. The price action on XRP is essentially a tug-of-war: long-term, utility-driven buyers are battling short-term traders reacting to the less-accommodative-than-hoped-for environment set by the Federal Reserve. The outcome of the fight at the $2.00 level will likely determine XRP's price trajectory for the rest of December.

The high-performance Layer 1 blockchain Sei has announced a major, strategic partnership with global consumer electronics giant Xiaomi, the world's third-largest smartphone manufacturer. This unprecedented collaboration aims to bridge the gap between Web3 and mainstream consumers by having a next-generation crypto wallet and discovery application pre-installed on all new Xiaomi smartphones sold outside of mainland China and the United States. This move represents one of the most significant mass adoption plays in cryptocurrency history, leveraging Xiaomi's massive global footprint to onboard millions of new users to the digital asset ecosystem. A Direct Channel for Mass Crypto Adoption The central pillar of the partnership is the deep embedding of Sei’s technology directly into the mobile consumer experience. The pre-installed application will feature a seamless user onboarding process, allowing users to create or access their secure wallet using familiar credentials like their Google or Xiaomi IDs. It will utilize modern Multi-Party Computation (MPC) wallet security, which enhances key protection by splitting it across multiple parties, thereby reducing the risk of a single point of failure. The application will also provide curated access to top decentralized applications (dApps) running on the Sei network and facilitate simple peer-to-peer (P2P) transfers and consumer-to-business (C2B) transactions. Co-Founder of Sei Labs, Jeff Feng, called the collaboration a "watershed moment for blockchain adoption," noting that by embedding Sei's infrastructure directly into one of the world’s most popular smartphone ecosystems, they are fundamentally reimagining how billions of users will interact with digital assets. Stablecoin Payments and Global Retail Integration Beyond the initial wallet and discovery app integration, the collaboration has ambitious plans for real-world utility, specifically in the payment space. Sei and Xiaomi are working to roll out stablecoin payment functionality across Xiaomi's mobile ecosystem and its extensive global retail network, which includes more than 20,000 retail stores. Initial rollouts for this stablecoin payment system are targeted for Hong Kong and the European Union by the second quarter of 2026, with expansion to other regulatory-compliant jurisdictions to follow. This initiative aims to allow customers to purchase Xiaomi products, ranging from smartphones to electric vehicles, using stablecoins that are natively on the Sei blockchain, such as USDC. This direct integration of blockchain-based payment rails into a major retail ecosystem demonstrates a fundamental shift in adoption strategy, moving crypto from being an enthusiast pursuit to a built-in feature of everyday consumer technology. The initial rollout of the app will prioritize regions with established crypto adoption, including Europe, Latin America, Southeast Asia, and Africa, where Xiaomi holds a significant market share, reaching millions of people in countries like India and Greece.

Vitalik Buterin, the co-founder of Ethereum, has publicly voiced strong disapproval of the changes implemented by Elon Musk on the platform X (formerly Twitter), suggesting that the site's shift in moderation policies has allowed it to deteriorate into a haven for hate speech and problematic ideologies. While Buterin's criticism has been ongoing since Musk's takeover, his recent remarks intensify the ideological clash between the principles of decentralized, censorship-resistant social media favored by crypto advocates like Buterin and the "free speech absolutism" that Musk has championed. Ideological Clash: Decentralization vs. Centralized Extremism Buterin's critique centers on the perception that the removal of legacy moderation policies and the prioritization of engagement metrics have systematically amplified extremist and hateful content. The Ethereum co-founder has often used the platform's changes as a cautionary tale, arguing that the centralized control wielded by a single, powerful owner—like Musk—demonstrates the inherent flaws of non-decentralized platforms. In previous commentary, Buterin lauded X's Community Notes feature as the "closest thing to an instantiation of 'crypto values'" in the mainstream world due to its decentralized, consensus-driven nature. However, his more recent statements suggest that the overall direction of the platform under Musk's leadership has fundamentally undermined the potential of such decentralized features, turning the site into an ideological echo chamber that runs counter to the principles of a "credibly neutral" public square. The Exodus to Decentralized Alternatives Buterin has not merely criticized X; he has also actively demonstrated his displeasure through his actions. He has become significantly more active on Farcaster, a crypto-centric, decentralized social media platform that operates on blockchain principles. Farcaster offers the type of user-owned, censorship-resistant experience that Buterin advocates for. When Musk directly asked Buterin why he was spending less time on X, Buterin's response was a clear indication of his preference for platforms that align with Web3 values of user autonomy and transparent governance. Although Buterin still maintains his massive follower count on X, his increased engagement on decentralized alternatives highlights the growing trend among crypto and Web3 leaders to boycott platforms they view as hostile to democratic discourse or prone to manipulation by a single authority. The core of his argument remains that while technology cannot solve all social problems, systems must be built to prevent powerful individuals from overriding community consensus and transforming global communication platforms into tools for the amplification of harmful content.

Brevis, a verifiable off-chain computation engine specializing in zero-knowledge (ZK) proofs, has announced a partnership with Aster, a next-generation decentralized perpetual exchange (DEX). The core objective of this collaboration is to integrate Brevis's lightweight zero-knowledge proof technology to enhance the speed, privacy, and security of decentralized derivatives trading on Aster. Zero-Knowledge Proofs for Derivatives Trading The partnership focuses on using Brevis's ZK-Coprocessor capabilities to bring advanced functionality to Aster's trading platform. Brevis's ZK technology is designed to offload complex, data-intensive computations from the blockchain to an off-chain engine. This drastically reduces computation costs and increases scalability while generating a verifiable ZK Proof that ensures the result is trustless and secure. For Aster, which already offers features like Hidden Orders (an advanced order book feature that keeps large limit orders private to protect against front-running and MEV), integrating Brevis's ZK proofs will take privacy and transaction efficiency to the next level. The collaboration will allow Aster to process and verify critical trade data—such as position settlement, liquidation checks, and complex order execution logic—off-chain with minimal cost and latency, all while maintaining the cryptographic security assurances of the underlying Layer 1 blockchains (like BNB Chain, Ethereum, Solana, and Arbitrum) on which Aster operates. About Aster and Brevis Aster is a decentralized perpetual exchange that emerged from the merger of Astherus and APX Finance. It distinguishes itself by offering both high-leverage perpetual contracts on crypto and US stocks (up to 1001x in Simple Mode), multi-chain support without requiring users to bridge assets, and its unique "Trade & Earn" model, which allows users to use yield-bearing assets like asBNB and USDF as collateral. Aster is also developing its own purpose-built Layer 1 blockchain, Aster Chain, which is optimized for high-performance, private trading. Brevis operates as a smart verifiable computing platform that aims to bring infinite scalability to existing blockchains. Its ZK Coprocessor enables smart contracts to trustlessly access and run arbitrary computation on historical on-chain data (transactions, events, and states) across multiple blockchains. By accelerating and verifying data-driven computation off-chain, Brevis enables new classes of decentralized applications (dApps) that require vast amounts of secure, verifiable data processing. This partnership is a key example of how Brevis is empowering protocols like Aster to overcome the data and computation limitations of current public blockchains. This collaboration is intended to provide a DEX trading experience that rivals centralized exchanges in speed and sophistication while retaining the non-custodial security and privacy benefits of decentralized finance

BitMine Immersion Technologies (BMNR), the publicly traded, Ethereum-focused digital asset treasury firm, has significantly accelerated its Ether (ETH) accumulation, cementing its position as the largest institutional holder of the asset globally. According to the company's latest public disclosure on Monday, December 8, 2025, BitMine now holds over 3.86 million ETH tokens, which equates to more than 3.2% of Ethereum's total circulating supply. This aggressive buying spree comes despite a period of market volatility, signaling strong long-term conviction in the asset's future utility and price appreciation by the firm's leadership. Massive Weekly Purchase Accelerates Pace The report highlighted a substantial weekly acquisition pace. In the week leading up to December 7, 2025, BitMine purchased 138,452 ETH tokens, valued at approximately $435 million at the then-prevailing ETH price of about $3,139. This purchase represented a 156% increase compared to its weekly acquisition rate from four weeks prior. The accelerated buying underscores the company's strategy of capitalizing on market dips to reach its ambitious goal of acquiring a 5% ownership stake in the total ETH supply, a target Chairman Thomas Lee refers to as the "alchemy of 5%." The total value of BitMine's crypto and cash holdings has now reached approximately $13.2 billion, including its massive Ether treasury, 193 Bitcoin, and $1.0 billion in cash reserves. Strategic Rationale and Future Plans BitMine's management attributes the stepped-up buying activity to several positive catalysts in the Ethereum ecosystem. Chairman Lee specifically cited the recent successful Fusaka upgrade to the Ethereum network, completed on December 3, which he noted delivered tangible improvements in network scalability and security. Furthermore, Lee expressed confidence that the anticipated easing of monetary policy by the Federal Reserve, combined with growing institutional adoption and the trend of Wall Street tokenizing assets onto the blockchain, will drive Ethereum prices higher in 2026. The firm’s long-term strategy extends beyond merely holding the asset; BitMine is actively developing the Made-in-America Validator Network (MAVAN), a dedicated, secure staking infrastructure. This network is planned for deployment in early 2026, which will allow the company to generate recurring staking yield revenue from its massive Ether holdings, transforming its treasury into an active, income-generating asset. BitMine remains the second-largest global crypto treasury overall, trailing only Strategy Inc. (MSTR), which focuses on Bitcoin. The company's stock (BMNR) continues to be highly volatile but remains one of the most actively traded stocks in the U.S., often viewed by traders as a leveraged proxy for the performance of Ether.

Web3 was designed with big promises. It offers a new version of the internet where individuals control their data, own their digital assets, and interact without middlemen like big tech companies or banks. Enthusiasts believe that Web3 can make the internet fair, more open, and resistant to censorship.  However, regardless of this ambitious vision, Web3 has struggled to achieve mainstream adoption. Apart from crypto developers, traders, and niche communities, many people have not integrated Web3 tools into their daily lives. Many have heard of terms like NFTs, blockchain, and decentralized finance, but only a few use them regularly. In this article, you’ll find out the key reasons why Web3 hasn’t gone widespread. We’ve revealed the challenges that continue to slow its adoption pace. The Evolution of the Internet: From Web1 to Web3 The internet has gone through various major stages. Web1 was the early internet. Most of the pages were “read-only”, where users could only view content but not interact. Websites were static, but users had little control. Web2 came with interactivity, user-generated content, and social media. Platforms like YouTube, Facebook, and Twitter (Now called X) enabled people to create, share, and connect with one another easily. However, these platforms are centralized, meaning control and user data are managed by big companies.  Web3 promises a shift in decentralization. It allows users to own their data, control digital identities, and interact with applications without depending on centralized intermediaries. While this idea is powerful in theory, the technology is quite new. Additionally, mainstream users are not familiar with how it works. Understanding this evolution explains why adoption is slower, which is the transition from convenience-focused systems to those that demand more technical involvement. Key Takeaways Web3 promises more user control, but its advantages are still unclear to many people. Mainstream adoption will require better education and tech improvements, policy work, and design. Better real-world use cases, simpler interfaces, and clearer storytelling are needed. Security issues, weak consumer protections, and scams damage trust. High and unpredictable costs of security tools and gas make experimenting costly. Regulation and legal uncertainty slow institutional and business adoption. Why Web3 Has Struggled To Go Mainstream While Web3 has profound ideas and innovative technology, several real-world challenges are slowing its adoption. Here are some of the reasons why Web3 isn't yet a normal part of everyday life. 1. User experience is still complex Web3 isn’t easy for the everyday beginner. The process of creating a wallet, storing seed phrases, and understanding concepts like private keys is confusing and stressful for many people. A single mistake can cause permanent loss of funds with no recovery options or customer support.  Unlike Web2 apps that provide easy onboarding and password resets, Web3 platforms expect users to be fully responsible for their accounts. This high level of technical responsibilities makes many users uncomfortable and unwilling to try Web3.  2. High cost of entry Web3 usage costs money even before actual value is gained. Users must pay gas fees for transactions, which could be expensive and unpredictable during network congestion. Many beginners are often discouraged by the idea of paying fees to learn or experiment. Additionally, users may need hardware wallets or security tools, which adds more expenses and makes Web3 feel like an expensive ecosystem for only experienced users.  3. Lack of real-world cases Many Web3 projects focus more on speculation than solving real-world problems. The attention is usually on NFTs, trading tokens, and yield farming, rather than building tools that everyday people need.  Most people still believe that Web3 doesn’t have a clear advantage over Web2 platforms. Since Web2 solutions offer free, fast, and simple services, people see no valid reason to switch to Web3. 4. Security risks and scams Web3 has gradually become known for phishing attacks, hacks, rug pulls, and fake projects. Millions of dollars are lost each year due to social engineering scams and smart contract vulnerabilities.  The idea of losing funds without any recovery system or legal protection makes Web3 look unsafe. Since there are no solid safety nets, many users prefer to stick with traditional systems. 5. Regulation and legal uncertainty Governments worldwide are not sure of how to regulate crypto, Web3, and decentralized platforms. Laws differ across countries, and policies change regularly. This uncertainty scares investors, businesses, and users.  People fear that policies might change overnight, Web3 platforms could be banned, or their funds could be frozen. These possibilities make long-term trust challenging to build.  6. Low public trust Web3 has endured negative public perception. News stories usually focus on market crashes, scams, and fraud instead of positive innovation. Many individuals now associate Web3 with instability, risk, and gambling. Without trust, mass adoption is almost impossible, regardless of how good the technology might be.  7. Scalability and performance issues Several blockchain networks struggle with network congestion and slow transaction speeds. During high activity, networks become slow and expensive, causing frustration. Mainstream users expect smooth, instant, and cheap transactions. If Web3 cannot match the reliability and speed of traditional systems, it’ll continue to look like an inferior alternative.  8. Lack of education and awareness Many people don’t understand how Web3 works. To make matters worse, there are few beginner-friendly and simple explanations available. Most learning materials are either poorly structured or too technical. People fear what they don’t understand when there’s no clear education. This prevents curiosity from turning into actual adoption.  9. Cultural resistance to change People are usually comfortable with existing systems like social media, banks, and online marketplaces. They trust these platforms because they feel familiar. Switching to Web3 involves learning new tools, changing habits, and embracing uncertainty. Most people don't feel motivated enough to switch to new terrains like Web3. Conclusion: The Road to Real Adoption While Web3 has solid ideas, it's still too complex, risky, and confusing for many people. If Web3 were to reach real adoption, it must become seamless to use, safer, cheaper, and clearly valuable in everyday life. When the experience improves, apart from the technology, the mainstream will finally follow. Additionally, businesses and regulators need clearer rules and safer paths so that companies can build dependable products without legal fear. When cost, safety, and design improve together, Web3 will stop being a niche experiment and start becoming part of normal online life. 

What Is Strategy Pushing Back Against? Strategy has called on MSCI to abandon a proposal that would exclude companies whose digital-asset holdings exceed 50% of total assets from major global equity benchmarks. In a 12-page letter sent Wednesday to the MSCI Equity Index Committee, the firm said the rule would be unworkable, prone to distortions and at odds with U.S. policy interests. The dispute centers on MSCI’s plan to assess whether digital-asset treasury companies (DATs) should remain in its Global Investable Market Indexes. MSCI’s initial view is that firms holding large bitcoin reserves — such as Strategy and BitMine — resemble investment vehicles rather than operating businesses, a type of exposure MSCI’s core equity indexes generally avoid. Strategy countered that the threshold would remove companies based on the volatility of a single asset rather than on their underlying activity. It warned that index composition could swing erratically as bitcoin prices rise or fall, leading firms to drop in and out of MSCI benchmarks with every market cycle. Investor Takeaway A rigid asset-based cutoff could reshape how passive funds allocate to bitcoin-treasury firms. Strategy argues the proposal would inject instability into global benchmarks rather than provide clarity. Why Does Strategy Say the Proposal Is Impossible to Apply Consistently? One of Strategy’s central claims is that the 50% test cannot be enforced fairly. The firm pointed to the accounting mismatch between IFRS and U.S. GAAP. Under IFRS, companies may keep bitcoin at cost on their balance sheets. Under U.S. GAAP, firms must report quarterly fair-value adjustments. Two companies with identical holdings could therefore appear to have very different levels of exposure. Strategy said the result would be inconsistent index treatment based solely on jurisdiction, not business model. It added that companies could cross the threshold simply because of quarterly valuation swings rather than any change in operations. The firm wrote that bitcoin-treasury groups would “whipsaw on and off” MSCI indexes during periods of price volatility, creating “chaos and confusion” for index providers and investors who rely on stable benchmark construction. How Does Strategy Connect the Issue to U.S. Policy? Beyond technical concerns, Strategy framed MSCI’s proposal as running counter to the U.S. government’s approach to digital assets. The letter cited several initiatives from the Trump administration aimed at expanding institutional access to bitcoin, including the Strategic Bitcoin Reserve concept and steps to widen 401(k) access. It referenced directives encouraging “technology-neutral” treatment of crypto companies and argued that MSCI’s rule would shut bitcoin-reserve companies out of roughly $15 trillion in passive-investment capital. “Digital assets represent a technological innovation that can serve as the potential future bedrock of global financial systems,” the letter said, adding that excluding firms like Strategy would “stifle innovation” and misrepresent how bitcoin-treasury companies actually operate. The firm urged MSCI not to “rush a decision” based on what it described as a “mischaracterization” of its business and the broader category of DATs. Investor Takeaway The MSCI review could have direct consequences for market structure. JPMorgan estimated Strategy could face $2.8B–$8.8B in passive outflows if removed from major benchmarks. What Comes Next Before MSCI’s January Decision? MSCI began its review in October, triggering immediate industry pushback. Strategy’s letter follows public comments from Chairman Michael Saylor in November, when he argued the company is “not a fund” and said index categories “don’t define” its business. Other bitcoin-treasury firms have echoed those concerns. Strive told MSCI last week that the 50% rule would produce uneven outcomes across jurisdictions and suggested releasing optional “ex-digital-asset treasury” versions of indexes for clients who prefer to screen out the category. A final ruling is expected by Jan. 15 ahead of MSCI’s February rebalancing. If the 50% test goes through, bitcoin-treasury companies would face a narrower pool of index eligibility. JPMorgan analysts estimated Strategy alone could see passive outflows of about $2.8 billion, rising to as much as $8.8 billion if other index providers adopt similar standards. Strategy currently holds 660,624 BTC worth nearly $61 billion, making it the largest public bitcoin holder, according to The Block data. Any classification change at MSCI would therefore have an outsized impact on passive flows tied to the company. With feedback continuing to arrive from market participants, MSCI now faces a decision that could influence how digital-asset balance sheets interact with global equities. The outcome will shape whether bitcoin-treasury firms remain part of mainstream benchmarks or become a separate category carved out of major indexes.

Exchange tokens are a category of cryptocurrencies specifically designed to operate within a crypto exchange ecosystem worth over $150 billion. Unlike general-purpose cryptocurrencies like Bitcoin or Ethereum, exchange tokens serve a functional role on the platforms that issue them, offering benefits ranging from fee discounts to staking rewards, governance participation, and access to exclusive features. In this article, you will get to know key insights about how exchange tokens work. Key Takeaways Exchange tokens are utility tokens specific to crypto exchanges. They provide trading fee discounts, staking, governance, and early access to token sales. Leading examples include BNB, KCS, OKB, FTT, and GT. Value is tied to platform adoption, usage, and tokenomics. Investors should consider platform reputation, regulatory risk, utility, and market performance. How Exchange Tokens Work Exchange tokens are essentially the native utility token of a cryptocurrency exchange. They are created to incentivize users to interact with the platform while also supporting the exchange’s growth. These tokens are most commonly used in the following ways: Trading Fee Discounts: Users who pay fees in the exchange’s token often receive substantial reductions. For high-volume traders, these savings can be significant, making the token a cost-effective tool. Staking and Rewards: Many platforms allow users to lock up their tokens in staking programs to earn interest or additional tokens. This reduces circulating supply, which can support price growth, and encourages long-term holding. Governance and Voting: Certain exchange tokens give holders the right to vote on important platform decisions, including listing new tokens, launching new features, or adjusting platform policies. Access to Token Sales: Exchange tokens often serve as the key to participate in new token launches or Initial Exchange Offerings (IEOs), giving holders early access to potentially high-demand assets. Liquidity Incentives: Platforms may reward liquidity providers with tokens, encouraging active trading and stronger order book depth. Effectively, the more a platform grows and the more users interact with it, the higher the potential demand for its exchange token. This creates a direct link between platform success and token value. How Exchange Tokens Generate Value The value of exchange tokens is tied to multiple factors, making them unique compared to standard cryptocurrencies: Trading Volume: High trading activity increases token utility since more users pay fees in the native token. This boosts demand. Platform Expansion: New partnerships, integrations, and user growth increase token adoption. A token used across multiple features or products has more intrinsic value. Tokenomics: Many exchanges implement deflationary mechanisms, such as periodic buybacks or burns, which reduce circulating supply and can support price appreciation. Ecosystem Utility: Tokens with multiple real-world use cases beyond just trading discounts—like staking, governance, or cross-chain functionality—tend to retain value better over the long term. Unlike purely speculative coins, exchange tokens are utility-driven assets, meaning their value is more closely tied to platform performance than market hype alone. Popular Examples of Exchange Tokens Binance Coin (BNB): BNB is Binance’s native token, used for trading fee discounts, staking, and participating in Binance Launchpad token sales. Binance periodically burns BNB to reduce supply, a process that has historically supported its price. BNB also powers the Binance Smart Chain ecosystem, extending its utility beyond the exchange. KuCoin Token (KCS): KCS holders receive a share of KuCoin’s revenue and trading fee discounts. Staking KCS increases rewards and encourages long-term holding. This profit-sharing model makes KCS both a utility token and a passive income asset. OKB (OKX Token): OKB provides fee discounts, voting rights in OKX governance decisions, staking opportunities, and early access to token offerings via OKX Jumpstart. Its multi-functional design strengthens its adoption and long-term demand. GateToken (GT): GT is used on Gate.io for fee discounts, governance voting, and staking programs. It incentivizes liquidity providers and long-term users by offering regular rewards, which supports the platform’s ecosystem. FTX Token (FTT): FTT served multiple purposes including trading discounts, leveraged token access, and governance voting. FTT’s value was also influenced by deflationary mechanisms tied to platform profits before FTX’s collapse. Benefits of Holding Exchange Tokens Holding exchange tokens offers several distinct advantages: Cost Efficiency: Users can reduce trading fees significantly, especially if they trade frequently. Passive Income Opportunities: Many tokens offer staking or profit-sharing programs, allowing holders to earn without selling. Early Access to Projects: Token holders often get first access to new token launches and innovative platform features. Governance Participation: Users can vote on platform decisions, directly influencing the future of the exchange. Portfolio Diversification: Exchange tokens provide exposure to the success of a platform, complementing other crypto holdings. Risks and Considerations While exchange tokens offer utility, they come with risks: Platform Dependency: The token’s value is directly linked to the exchange’s health. Security breaches, liquidity issues, or regulatory penalties can heavily impact token value. Regulatory Uncertainty: Some countries have restricted or banned certain exchange tokens, creating legal and liquidity risks. Speculative Price Movements: Despite utility, token prices are often influenced by speculation, which can lead to high volatility. Centralization Risk: Tokens issued by centralized exchanges are more vulnerable to decisions by the platform, unlike decentralized assets. Conclusion Exchange tokens play a pivotal role in the cryptocurrency ecosystem by linking platform success directly to token utility and value. They are more than speculative assets—they provide tangible benefits such as trading fee discounts, staking rewards, governance participation, and early access to new token offerings. However, their value is closely tied to the health and adoption of the issuing exchange, making platform reputation, regulatory compliance, and tokenomics critical factors for investors to consider. For traders and investors looking to diversify within crypto, exchange tokens offer a unique opportunity to gain exposure to platform growth while enjoying practical utility. Understanding the mechanics, benefits, and risks of these tokens is essential for making informed investment decisions. Frequently Asked Question FAQs How are exchange tokens different from cryptocurrencies like BTC?Exchange tokens are utility-focused and tied to a platform, whereas BTC primarily acts as a store of value. Can exchange tokens be traded outside their native platform?Yes, many tokens are listed on other exchanges, but their primary utility remains tied to the issuing platform. Do exchange tokens offer income opportunities?Many provide staking or profit-sharing programs. Are they safe investments?They carry risk, particularly if the exchange faces regulatory or financial challenges. How do exchange tokens gain value?Value is driven by platform growth, adoption, trading volume, and tokenomics mechanisms like burns or staking.

What Did Bybit Announce at the Institutional Gala? Bybit used its BIG Series Institutional Gala in Dubai to introduce two major upgrades that reshape the firm’s global institutional roadmap: a fully expanded INS Credit Suite and a redesigned Market Maker Gateway (MMGW) built for sub-5ms execution. The announcements, presented by Yoyee Wang, Head of Business to Business, set Bybit’s direction for 2026 as the exchange accelerates its transformation into a regulated, infrastructure-grade venue for professional trading firms. Yoyee framed the developments as part of a larger institutional blueprint — a single environment combining custody, credit, execution, governance, and operational continuity. The message was straightforward: digital asset markets are maturing into an institutional architecture, and Bybit intends to be one of its core pillars. Investor Takeaway Bybit’s institutional stack now resembles a prime brokerage model: custody, RWAs, credit, and low-latency execution unified in a single regulated environment. This is where institutional liquidity is heading. Why the Upgraded Credit Suite Matters to the Market The INS Credit Suite is one of Bybit’s fastest-growing institutional products, and the upgrade delivers a more transparent, capital-efficient design tailored for professional firms. Institutions can now access up to 5× leverage, operate under traditional finance–aligned LTV thresholds, and manage up to 1,000 sub-accounts — a scale relevant for high-frequency firms, asset managers, and structured product desks. The demand is already visible: INS loan notional reached $1.1 billion this quarter, up 26% QoQ, with adoption driven by systematic trading firms seeking operational flexibility without compromising asset control. Bybit’s strategy mirrors larger market shifts. Following the credit collapses of 2022–2023, institutions demanded transparent, custody-anchored credit frameworks. Bybit’s model answers that pressure by threading credit through a regulated structure rather than bilateral, opaque lending channels that once dominated the industry. Investor Takeaway The RWA-integrated credit model is a competitive differentiator: firms can earn yield on custody-held assets while maintaining credit access. This changes capital deployment behavior across the institutional market. How Bybit Is Merging Custody, RWAs, and Credit The standout announcement was the integration of custody-based tokenized RWAs into Bybit’s off-exchange credit framework. This marks the first time a major global exchange enables institutions to: maintain full custody control, earn returns through money-market RWA tokens, and use those same assets as credit collateral. This design closes a long-standing gap between yield generation and credit availability. Historically, institutions had to choose between earning returns on assets or pledging them for leverage. Bybit’s unified model removes that trade-off and aligns digital asset markets with the collateral mechanics used in traditional prime brokerage and repo markets. For asset managers, this reduces operational fragmentation. For market makers, it compresses capital cycles. For Bybit, it builds a defensible institutional moat. Inside the New Ultra-Low-Latency Execution Architecture The second announcement centered on execution. Bybit revealed that its redesigned MMGW environment now brings round-trip latency for INS clients down to 5 milliseconds, with an upcoming 2.5ms execution lane slated for 2026. Yoyee emphasized that the breakthrough is not raw speed, but predictable stability — a requirement for high-frequency and market-making desks operating under tight risk constraints. The new architecture is engineered to dampen micro-bursts, reduce jitter, and deliver deterministic performance even during high-volatility events. In practical terms, this pushes Bybit closer to the latency standards of traditional electronic markets, closing the performance gap between digital assets and established global exchanges. What This Means for Institutional Crypto in 2026 Yoyee closed the presentation by reinforcing Bybit’s philosophy: “listen, care, improve.” The upgrades reflect a clear institutional vision — one built around regulatory certainty, efficient capital deployment, and execution infrastructure that can support the next generation of professional trading strategies. As institutions migrate toward regulated venues with deeper operational rigor, Bybit’s credit-plus-custody model and ultra-low-latency execution layer position the exchange as one of the few global players ready for the next cycle of institutional adoption.

KEY TAKEAWAYS A crypto bank run happens when many users try to withdraw funds simultaneously due to loss of confidence. High leverage, low transparency, and volatile markets make crypto platforms more vulnerable than traditional banks. Social media and rumors can quickly amplify panic withdrawals. Diversifying assets, using self-custody wallets, and monitoring platform transparency can reduce risk. Regulation and audits can help platforms prevent or mitigate bank runs, but crypto remains largely unprotected   The cryptocurrency market, while revolutionary, is not immune to financial crises similar to traditional banking. One phenomenon that has become increasingly visible in recent years is the “crypto bank run.” Unlike traditional banks, which operate under government regulations and deposit insurance schemes, many crypto platforms, including exchanges and lending protocols, operate in a largely unregulated environment.  When confidence in these institutions falters, users rush to withdraw funds, triggering events akin to classic bank runs. In this article, we’ll help you understand how these runs occur, why they are increasingly common, and what they mean for investors. What Is a Bank Run in Crypto? A bank run occurs when a large number of customers attempt to withdraw their deposits simultaneously due to fears that the institution will become insolvent. In traditional finance, deposit insurance and regulatory oversight can mitigate such panic, but crypto operates differently. In the crypto world, bank runs often occur on centralized exchanges, crypto lending platforms, or stablecoin protocols. Unlike conventional banks, these platforms typically lack explicit government-backed guarantees, meaning that if liquidity dries up or assets are mismanaged, investors can lose access to their funds. A crypto bank run usually follows a recognizable pattern: A loss of confidence triggers mass withdrawal requests. The platform struggles to meet these withdrawals because it doesn’t have enough liquid assets. News spreads across social media and crypto forums, accelerating the panic. The platform may suspend withdrawals or freeze assets to prevent a total collapse. In severe cases, the platform becomes insolvent, leaving investors with partial or total losses. How a Crypto Bank Run Starts Several factors can trigger a crypto bank run: 1. Insolvency Rumors or Mismanagement A rumour or news that a platform is not handling money well is often what starts the fire. For instance, if a lending protocol uses depositor funds for risky projects or if an exchange doesn't have enough reserves, investors start to worry about the safety of their money. With how quickly and widely information spreads on social media, even unverified rumours can be enough to cause panic. 2. Collateral or Liquidity Shortages Many crypto platforms operate with high leverage. If borrowers default or market prices drop sharply, the platform may face a liquidity crunch. Users noticing that withdrawals are slow or limited may interpret this as a sign of insolvency, prompting more withdrawals. 3. Contagion From Other Failures The crypto markets are highly interconnected. If one big exchange, lending platform, or stablecoin fails, it can make people lose faith in other similar businesses. Investors might take money out of other platforms ahead of time because they are afraid they could be next. 4. Regulatory or Legal Announcements News of investigations, regulatory crackdowns, or legal actions can lead to sudden panic. Even if the platform remains solvent, uncertainty about future restrictions or freezes can provoke withdrawals. Why Crypto Bank Runs Are Becoming More Common Bank runs in crypto are becoming more frequent for several reasons, largely tied to the unique characteristics of the industry. 1. Lack of Deposit Insurance FDIC insurance protects deposits up to $250,000 at traditional banks in the U.S. There is no federal protection for crypto. Investors depend on the platform's solvency and honesty, so trust is very important. The risk of a lot of people withdrawing money goes up a lot when confidence drops. 2. High Leverage and Risky Lending Practices Many crypto platforms offer high-interest yields or loans that are funded by user deposits. These operations often involve leverage or speculative investments. While this can boost returns during normal market conditions, it significantly increases systemic risk, making sudden insolvency more likely in volatile markets. 3. Extreme Volatility Prices of cryptocurrencies are known to change a lot. When token values drop sharply, it can make lending platforms and exchanges unstable, especially those that hold a lot of volatile assets. Losses on leveraged positions can make the platform less liquid, which can cause a bank run. 4. Social Media Amplification Information spreads quickly on platforms like Twitter, Reddit, and Telegram. Rumors, whether true or false, can rapidly reach thousands of investors, creating a feedback loop of panic withdrawals. Fear spreads faster than verified information, making crypto bank runs more sudden and severe than traditional financial panics. 5. Interconnected Platforms A lot of exchanges and lending protocols are very connected because they all have the same investments, loans, or collateral. When one platform has problems, it can cause problems for others. Users can leave multiple platforms at once, which increases systemic risk. Consequences of a Crypto Bank Run The effects of a crypto bank run can be devastating, both for individual investors and the market as a whole. Liquidity Freezes: Platforms may suspend withdrawals to prevent collapse, leaving users unable to access their funds. Massive Losses: Investors can lose part or all of their deposits, particularly in platforms without sufficient reserves. Market Panic: Bank runs often coincide with price crashes, as investors sell assets en masse to cover positions or secure liquidity. Legal and Regulatory Fallout: High-profile collapses attract scrutiny from regulators, which can result in investigations, fines, and tighter regulations across the industry. Some notable examples in recent years include the failures of Terra/Luna in 2022, FTX in late 2022, and Celsius Network’s liquidity crisis, all of which exhibited classic bank run dynamics. How Investors Can Protect Themselves While crypto bank runs are inherently risky, investors can take proactive measures to mitigate potential losses: 1. Diversify Across Platforms Spreading assets across multiple exchanges or wallets reduces exposure to a single platform’s failure. This is similar to traditional diversification in financial portfolios. 2. Prefer Platforms With Transparency and Audits Exchanges and lending platforms that provide regular audits, transparent reserve reporting, and public disclosures about risk management are generally safer. 3. Limit Exposure to High-Yield Programs High interest rates often indicate higher risk. While tempting, excessive exposure to yield programs can amplify losses during market stress. 4. Keep Control of Private Keys Self-custody wallets, where you control private keys, reduce dependency on third-party platforms. While this increases personal responsibility, it avoids being caught in a platform liquidity crisis. 5. Monitor Market and Social Signals Being aware of market volatility, regulatory news, and social media chatter can help investors react faster. Early action may prevent losses if confidence begins to falter. The Role of Regulation Regulation could make crypto bank runs less likely by requiring banks to have enough cash on hand, be open about their finances, and report their solvency. But in many places, crypto is still mostly unregulated, so investors have to rely on the operational integrity of each platform. As regulators make the rules clearer, platforms may need to use better risk management techniques, which could help stop future runs. Navigating Crypto Safely in a World of Bank Runs Crypto bank runs are becoming more common in the world of digital assets. They show both the potential and the risks of this new financial system. Most crypto platforms don't have government-backed insurance like regular banks do, and they work in unstable, interconnected markets, which makes them vulnerable to sudden liquidity crises. People lose faith, hear rumours, or run out of money, and then the situation gets worse because of leverage, social media, and dependencies between platforms. Investors can lower their risk and protect their assets by learning how crypto bank runs work, spreading out their investments, using self-custody wallets, and keeping an eye on platform transparency. The industry may become more stable as the market matures and rules change, but the risks of crypto banking will always require careful planning and attention. In a world where digital assets move as fast as the internet, it is not optional to learn about and get ready for crypto bank runs. Anyone who wants to safely participate in the cryptocurrency ecosystem must do this. FAQs What exactly is a crypto bank run? A crypto bank run occurs when a large number of users try to withdraw their funds at the same time, fearing the platform may become insolvent. Why are crypto bank runs more common than traditional bank runs? Most crypto platforms lack government-backed insurance, operate with high leverage, and are highly interconnected, making them more vulnerable to sudden liquidity crises. Can a crypto bank run affect the entire market? Yes. Panic withdrawals and forced liquidations can lead to sharp price drops and contagion across other platforms. How can I protect my crypto from a bank run? Diversify holdings across platforms, use self-custody wallets, limit exposure to high-yield programs, and choose platforms with transparency and audits. Will regulation prevent crypto bank runs? Regulation may reduce risk by enforcing liquidity and transparency requirements, but it cannot eliminate inherent market volatility or platform-specific mismanagement. References Phemex: What Is A Bank Run (And Why It’s Extra Bad For Crypto Exchanges) Cointracker: What is a bank run? Definition, examples and how it works BybitLearn: What Is a Bank Run & How Does It Impact Crypto Exchanges?

KEY TAKEAWAYS Crypto is treated as property by the IRS; all taxable events must be reported. Failing to report gains can trigger penalties, interest, audits, and even criminal charges. Taxable events include selling, trading, using crypto for purchases, mining, and staking. Accurate recordkeeping and proper cost basis calculations are essential for compliance. Using crypto tax software can simplify reporting and reduce the risk of errors.   Investors now have both exciting new opportunities and new responsibilities because of the rise of cryptocurrency. Digital assets like Bitcoin, Ethereum, and many altcoins can make you a lot of money, but they also come with complicated tax obligations. The Internal Revenue Service (IRS) in the United States sees cryptocurrency as property, which means that any profits from buying, selling, trading, or using crypto are taxable. Not reporting these gains can lead to fines, interest, and even legal action. All investors need to know the rules, risks, and best ways to report crypto gains. In this article, we explore why failing to report crypto gains can trigger IRS penalties, the types of taxable events you need to be aware of, and best practices for staying compliant while protecting your investments. The IRS Classification of Cryptocurrency The IRS officially classifies cryptocurrency as property, not currency. This distinction has major tax implications: Capital Gains Tax: Gains from selling or exchanging crypto are treated as capital gains. Short-term gains from crypto held for less than a year are taxed at ordinary income rates, while long-term gains from crypto held for more than a year are taxed at lower capital gains rates. Transaction Reporting: Using crypto to purchase goods or services is considered a taxable event. The difference between the fair market value at the time of purchase and your cost basis must be reported as a gain or loss. Exchanges and Transfers: Even moving crypto between wallets can have tax implications in certain cases, particularly if it involves swaps or conversions between different coins. Because the IRS treats crypto like property, every transaction can be potentially taxable. Failing to report accurately can make an investor vulnerable to penalties. Common Reasons Crypto Gains Go Unreported Many taxpayers unintentionally fail to report crypto gains. Some common reasons include: Misunderstanding Tax Rules: Some investors assume that using crypto for purchases or transferring it between wallets is not taxable. Complexity of Transactions: Active traders often make dozens or hundreds of trades, which can make recordkeeping challenging. Lack of Guidance from Exchanges: Not all exchanges provide comprehensive tax reports. Without accurate statements, investors may underreport gains. Assuming Small Gains Don’t Matter: Some taxpayers believe that small, frequent gains are too insignificant to report. The IRS, however, requires reporting of all taxable events, regardless of size. Failing to recognize these obligations can lead to audits and penalties, even for those who did not intend to evade taxes. IRS Penalties for Failing to Report Crypto Gains The IRS takes unreported income seriously, and cryptocurrency is no exception. Penalties vary depending on the nature and severity of the noncompliance: 1. Failure-to-File Penalty If you fail to file a tax return on time, the IRS may impose a penalty of 5% of the unpaid tax per month, up to a maximum of 25% of the tax owed. This penalty applies even if you owe cryptocurrency taxes specifically. 2. Failure-to-Pay Penalty Even if you file your return but do not pay the full amount of tax owed, the IRS can charge a 0.5% monthly penalty on the unpaid balance. Interest accrues separately, compounding the total liability over time. 3. Accuracy-Related Penalties If the IRS determines that your return underreports income or gains due to negligence or substantial understatement, you could face a penalty equal to 20% of the underpaid tax. This can happen if you miscalculate gains, fail to report trades, or ignore crypto received from mining or staking. 4. Civil and Criminal Consequences In severe cases, intentional tax evasion involving cryptocurrency can lead to civil fraud penalties or even criminal prosecution. Criminal charges can include fines, restitution, and imprisonment. While most cases are resolved with civil penalties, high-profile prosecutions show the seriousness of noncompliance. How the IRS Tracks Unreported Crypto Income Contrary to common belief, crypto transactions are not invisible to the IRS. Several tools and methods are used to identify unreported gains: Form 1099-K and 1099-B: Many exchanges provide these forms to users and to the IRS for reportable transactions, especially if thresholds for reporting are met. Blockchain Analysis: The IRS contracts with forensic firms that analyze blockchain transactions to identify taxable events. This allows the agency to trace transfers, trades, and sales, even if the taxpayer claims ignorance. Direct Questions on Tax Forms: Since 2019, U.S. tax returns require taxpayers to answer whether they received, sold, sent, or exchanged any cryptocurrency during the year. Failing to answer truthfully can trigger audits. Given these monitoring methods, even small or complex trades can come under IRS scrutiny. Types of Crypto Transactions That Trigger Taxable Events Investors need to understand which activities are considered taxable. Common taxable events include: Selling Crypto for USD or Another Fiat Currency: The gain is the difference between the selling price and your cost basis. Trading one Cryptocurrency for Another: Swaps are treated as a sale of the first asset and a purchase of the second. Using Crypto to Purchase Goods or Services: Even small transactions like buying a coffee with crypto must be reported. Earning Crypto Through Mining, Staking, or Airdrops: These are considered income at fair market value at the time of receipt. By understanding taxable events, investors can maintain accurate records and reduce the risk of penalties. Best Practices for Reporting Crypto Gains Accurate reporting is essential to avoid IRS penalties. Best practices include: Maintain Detailed Records: Track dates, amounts, transaction types, and the value of cryptocurrency in USD at the time of each transaction. Use Crypto Tax Software: Platforms like CoinTracker, Koinly, and CryptoTrader.Tax can calculate gains, losses, and taxable income across multiple exchanges. Report All Transactions: Even small or frequent trades must be reported to remain compliant. Understand Your Cost Basis: Different methods like FIFO (First In, First Out) or specific identification can affect your reported gains. File and Pay on Time: Ensure that all returns are filed accurately and that taxes owed are paid to avoid compounding penalties. Consequences of Ignoring Crypto Tax Obligations Failure to report crypto gains is not just a paperwork issue; it can lead to long-term financial consequences: Accrued Interest and Penalties: The IRS charges interest on unpaid taxes, compounding monthly until the debt is settled. Audit Risk: Unreported gains increase the likelihood of an IRS audit, which can be time-consuming, costly, and stressful. Damage to Credit and Finances: Tax liens, levies, or other enforcement actions can affect your credit and financial stability. Potential Criminal Liability: In rare but serious cases, deliberate tax evasion can result in criminal charges, including imprisonment. Compliance with tax laws is not optional; even small oversights can escalate into serious penalties. Protect Your Crypto Gains by Staying IRS Compliant Cryptocurrency is an exciting way to invest and grow your money, but it also comes with a lot of responsibilities. The IRS sees crypto as property, so every time you buy, sell, or trade it, you could have to pay taxes on it. If you don't report your gains, you could face a lot of different penalties, like fines, interest, audits, and even jail time in the worst cases. Investors can lower their risk and avoid costly mistakes by knowing how crypto affects their taxes, keeping detailed records, using tax software, and filing correctly. Reporting correctly makes sure that investing in cryptocurrencies stays a profitable and long-term activity, without the stress of surprise IRS fines. In the end, compliance isn't just about avoiding fines; it's also about keeping your investments safe and staying on the right side of the law in a crypto world that is becoming more regulated.  FAQs What happens if I fail to report crypto gains? You may face penalties, interest on unpaid taxes, audits, or in severe cases, criminal prosecution. Are all crypto transactions taxable? Yes. Selling, trading, using crypto for purchases, or earning crypto via mining or staking are considered taxable events. How can I calculate my crypto gains? Gains are calculated by subtracting your cost basis (purchase price plus fees) from the sale price. Tools like CoinTracker or Koinly can automate this. Do small crypto gains need to be reported? Yes. The IRS requires reporting of all taxable gains, regardless of size. Can I avoid penalties with late reporting? Filing late may reduce penalties if you are proactive and honest, but interest and some fines may still apply. References GordonLaw: How Is Crypto Taxed? (2025) IRS Rules and How to File Koinly: What are the New IRS Crypto Reporting Requirements? Plunkettcooney: Navigating the New Crypto Tax Reporting Requirements

The crypto market is shifting toward segments that deliver real utility, stronger security guarantees, and long-term relevance. While memecoins and hype-driven assets still dominate headlines, the strongest expansion this year is happening across three core sectors — privacy tokens, oracle tokens, and exchange tokens— according to Artemis. In this article, we examine why these segments are leading the market, how they are performing, and the key factors investors should consider before buying into them. Privacy Tokens: Rising Demand for Confidentiality Privacy-focused cryptocurrencies are gaining traction as more users and institutions prioritize secure, non-traceable transactions. Expanding blockchain analytics, stricter compliance rules, and heightened transparency in digital payments have created renewed interest in privacy-preserving financial infrastructure. These networks rely on advanced cryptographic systems such as zero-knowledge proofs, ring signatures, and stealth addresses to obscure transaction details while maintaining network integrity. Their appeal lies in enabling legitimate financial privacy — a priority for high-volume traders, global businesses, and cross-border settlement activity. As crypto adoption deepens in real commerce, demand for protected transaction rails continues to grow. Examples: Monero (XMR), Zcash (ZEC), Oasis Network (ROSE), Secret Network (SCRT). Oracle Tokens: Gaining Momentum as Data Becomes Critical As blockchain applications mature, smart contracts require reliable, tamper-resistant access to off-chain information. Oracle networks supply this verified data—from asset prices to weather metrics—enabling automated contracts to execute accurately and safely. Their rising demand aligns with the growth of data-dependent ecosystems. DeFi protocols rely on oracles to manage liquidations; insurance markets depend on real-world triggers; gaming environments use external inputs to shape economies; and tokenized real-world assets require verified price and identity data. With more developers building automation-driven systems, oracle networks have become essential infrastructure. Examples: Chainlink (LINK), Pyth Network (PYTH), Band Protocol (BAND), API3 (API3). Exchange Tokens: Steady Growth Driven by Platform Activity Exchange tokens are showing renewed momentum as centralized and hybrid trading venues see rising volumes and stronger user activity. These tokens benefit from direct utility—including trading fee discounts, staking opportunities, priority access to listings, and governance rights over platform operations. Their month-to-date performance remains positive, supported by improving market sentiment and increased retail participation. Exchange tokens tend to perform steadily because they are linked to mature business models rather than speculative experimentation. As liquidity conditions improve and platforms roll out new products, these tokens continue to gain attention. Examples: Binance Coin (BNB), OKB (OKB), Huobi Token (HT), Bitget Token (BGB). Which Segment Is Delivering the Highest Returns? Month-to-date performance shows clear divergence across these categories according publication time data on Artemis. Oracle tokens currently lead with a 17.7% gain, followed by privacy tokens at 10.8%, while exchange tokens have returned 7.4% over the same period. The outperformance of oracle networks reflects growing demand for data infrastructure as more developers build automation-heavy applications. Privacy tokens continue to benefit from rising demand for confidential transactions, while exchange tokens show steadier, utility-driven growth tied to platform activity and trading volumes. These figures highlight a broader trend: segments with direct infrastructure relevance—such as oracles and privacy—are experiencing stronger capital inflows than those tied primarily to platform usage. Factors to Consider Before Buying Privacy, Oracle, or Exchange Tokens Before entering any of these segments, investors should evaluate several critical factors: 1. Utility and Real DemandEvaluate whether the token’s underlying function is essential and consistently used. Privacy tokens should demonstrate real adoption in confidential transactions; oracle tokens must show sustained demand for data feeds across protocols; and exchange tokens should offer tangible platform benefits such as fee reductions, staking rewards, or governance rights. Tokens with recurring, measurable utility tend to perform better during market shifts because their value is tied to practical usage rather than speculation. 2. Adoption and Network ActivityCheck on-chain data and ecosystem metrics. Privacy tokens depend on wallet activity, transaction volumes, and real-world usage. Oracle networks rely on integrations with DeFi platforms, gaming projects, and tokenized asset systems. Exchange tokens gain strength from exchange volumes, user growth, and the rollout of new platform features. Strong activity signals long-term relevance and reduces reliance on market sentiment. 3. Regulatory EnvironmentRegulation remains a critical factor across these categories. Privacy tokens often face the highest scrutiny due to their anonymizing features, which may limit listings or accessibility in certain regions. Oracle networks must ensure compliant data provision as financial systems move on-chain, while exchanges face evolving KYC, AML, and operational requirements. Shifts in policy can influence liquidity, accessibility, and institutional adoption. 4. Security and Protocol StabilityAssess the project’s technical robustness. Review audit histories, vulnerability reports, and incident responses. For privacy tokens, examine the strength of the cryptography and the reliability of privacy-preserving systems. For oracle networks, verify the integrity of data sources and the resilience of the network against manipulation. For exchange tokens, platform security and operational uptime are essential. Security breaches can lead to long-term value erosion. 5. Token EconomicsToken supply mechanics play a major role in future price behaviour. Evaluate emission schedules, unlock timelines, staking rewards, and burn mechanisms that influence circulating supply. For exchange tokens, revenue-sharing models or buy-back programs can support value. For oracle and privacy tokens, staking or collateral requirements may reduce sell pressure. Understanding supply dynamics helps determine whether a token can sustain long-term appreciation. Conclusion Privacy, oracle, and exchange tokens are gaining momentum because they address essential needs within the blockchain ecosystem: confidentiality, verified real-world data, and efficient trading infrastructure. Their month-to-date performance demonstrates stronger investor interest in utility-driven segments rather than hype-based categories. As crypto continues integrating with global markets and digital commerce, these three areas are positioned to remain central to the next phase of blockchain adoption.

What Does the Sirius–Crypto.com Partnership Aim to Achieve? Sirius International Holding — the technology investment arm of Abu Dhabi’s International Holding Company — has entered into a strategic partnership with Crypto.com, marking one of the UAE’s most consequential moves toward sovereign digital infrastructure and regulated tokenization frameworks. The collaboration centers on the integration of ADI Chain, a high-performance blockchain developed by the ADI Foundation to anchor the country’s next generation of digital asset rails. Crypto.com will begin evaluating ADI Chain as a potential supported network within its ecosystem, a step that would allow the chain’s assets, tokenized instruments and future sovereign-grade digital products to gain access to global liquidity channels. This includes the possibility of listing Sirius-connected assets — from tokenized RWAs to a Dirham-backed stablecoin — pending compliance reviews and regulatory clearance. The partnership also opens the door for Crypto.com Pay to be deployed across Sirius’ extensive portfolio of regional enterprises, bringing real-world crypto payments into sectors ranging from retail to infrastructure and logistics. Investor Takeaway Sovereign-backed blockchain infrastructure is becoming a central pillar in the UAE’s digital finance strategy. ADI Chain’s integration with a global exchange like Crypto.com could place the UAE at the forefront of regulated tokenization and institutional-grade settlement. Why Does This Matter for the UAE’s Digital Asset Ambitions? The UAE has emerged as a global testing ground for crypto regulation, stablecoin frameworks and real-world asset tokenization. By linking the ADI Foundation’s sovereign-grade blockchain with a worldwide exchange operator, the partnership creates a two-way bridge between regional infrastructure and global markets. ADI Chain was designed to handle high-throughput tokenization environments — from corporate instruments to treasury-backed digital assets. Its alignment with Sirius’ upcoming Dirham-backed stablecoin positions the chain as a potential settlement layer for regional commerce and regulated financial products. Crypto.com brings scale: over 100 million users worldwide, one of the most recognizable brands in Web3, and established regulatory relationships across Asia, Europe, and the Middle East. The alignment provides the UAE with a distribution network capable of taking locally engineered tokenization products into global investment flows. How Does This Move Compare to Global Tokenization Trends? The partnership lands at a moment when tokenization of real-world assets is shifting from experimentation to institutional rollout. Markets in Europe and Asia have seen early adoption of tokenized government bonds, real estate, and money-market funds. The UAE’s approach differs in one key way: it is building sovereign blockchain infrastructure and pairing it with large-scale commercial ecosystems through Sirius. Similar initiatives — such as Hong Kong’s tokenized green bonds or Singapore’s Project Guardian pilots — have relied on traditional financial institutions. The Sirius–Crypto.com collaboration pushes the model further, combining sovereign-grade infrastructure with a global crypto-native exchange, widening the doorway for retail, enterprise, and institutional participation. For Crypto.com, this continues a pattern of deepening its Middle East footprint and aligning with regulated tokenization initiatives. For Sirius, it positions the company as a leading architect of regional digital finance standards. Investor Takeaway Tokenized RWAs, sovereign stablecoins and compliant blockchain rails are converging. This partnership reflects where digital asset markets are heading: toward regulated, interoperable infrastructure with global liquidity access. What Comes Next as ADI Chain Moves Toward Integration? The next stage of the partnership involves technical and regulatory validation of ADI Chain as a supported network on Crypto.com platforms. If successful, the chain could become a launchpad for UAE-based tokenized financial products, including stablecoins, corporate instruments and cross-border commerce assets. Sirius has signaled plans for global expansion, intending to export UAE-built tokenization infrastructure into markets that are ready for institutional-grade blockchain adoption. Crypto.com’s role as a liquidity and distribution partner makes that ambition feasible at scale. For the UAE, this collaboration reinforces its strategy of building a financial ecosystem where digital assets, tokenized instruments and sovereign-backed infrastructure operate under a single, regulated architecture — one that can be adopted regionally and exported internationally.

KEY TAKEAWAYS Shorting lets traders profit from falling crypto prices by borrowing, selling high, and buying back lower. The strategy works best during strong downtrends, overbought conditions, or major negative news events. Futures and margin trading are the most common ways to short, each with different risks and costs. Shorting can hedge long-term holdings without needing to sell your assets. Key dangers include liquidation, volatility, and unlimited loss potential if prices rise sharply. Effective shorting requires strict risk management, accurate timing, and discipline. Funding rates, liquidity, and technical indicators should always be checked before opening a short position.   Short selling, commonly called shorting, is one of the most powerful strategies in crypto trading. It allows traders to profit when a token's price falls instead of rising. In a market known for extreme volatility, shorting gives traders a way to hedge risks, seize opportunities during downturns, and diversify their strategies beyond simple "buy low, sell high" approaches. But shorting is not as simple as clicking "sell." It involves borrowing, leverage, interest costs, liquidation risk, and a deep understanding of market structure. Below is a comprehensive guide explaining how shorting works in crypto, the different methods available, and when it actually makes sense to use this strategy. What Is Shorting in Crypto? Shorting is a trading method where you borrow a cryptocurrency and immediately sell it at the current market price, hoping to buy it back later at a lower price. After repurchasing the asset, you return the borrowed tokens and keep the difference as profit. In simple terms: Borrow a crypto asset. Sell it at a high price. Buy it back at a lower price. Return the borrowed amount. Profit from the price drop. For example, if you borrow 1 BTC at $70,000 and sell it, then buy it back at $62,000, your profit is $8,000 (minus fees and interest). How Shorting Works: Step-by-Step Although each exchange has its own interface and specific requirements, the mechanics of shorting generally follow the same structured process. It begins with securing collateral and ends with closing the position by returning the borrowed crypto. Understanding each step is essential before attempting to short any asset. Step 1: Collateral Deposit Shorting starts by depositing collateral, which is usually stablecoins or cryptocurrency, into your margin or derivatives account. This collateral acts as security for the exchange or lender, ensuring they are protected if the trade moves against you. The amount of collateral deposited determines how much you can borrow and how much leverage you can use. Step 2: Borrowing the Asset Once the collateral is in place, the exchange lends you the crypto asset you want to short. The size of this loan depends on your collateral and selected leverage. Essentially, you are temporarily borrowing tokens with the intention of selling them immediately. Step 3: Selling the Borrowed Crypto You borrow the asset and then sell it right away on the open market for the current spot or futures price. This sale locks in the initial value and makes it possible to make money if the asset's price goes down. Step 4: Waiting for the Price to Fall This is the speculative phase of the strategy. You now wait, hoping that market sentiment weakens and the price drops. During this period, traders rely on technical analysis, market trends, and news events to anticipate downward movement. Step 5: Repurchasing the Crypto at a Lower Price If the market goes your way and the price of the asset goes down, you buy back the same amount of crypto you borrowed. The goal is to buy it back for a lot less than what you sold it for. Step 6: Returning the Tokens You give the borrowed tokens back to the exchange or lending pool after you buy the asset back. This ends the part of the trade that was borrowed. Step 7: Realizing Profit (or Loss) Your profit is the difference between the price you sold the borrowed tokens for and the price you paid to buy them back. Fees, interest on borrowed assets, and funding rates are deducted from this amount. If the price rises instead of falling, this same calculation results in a loss. Different Ways to Short Crypto Crypto shorting can be done using several instruments. Each comes with unique risks, costs, and complexities. 1. Margin Trading Margin trading is the most common form of shorting. Traders borrow funds from the exchange and use leverage to amplify potential gains (and risks). Pros: Easy to use on many centralized exchanges Leverage available (3x, 5x, 10x, etc.) Immediate market execution Cons: High liquidation risk Ongoing interest rate on borrowed funds Fees can accumulate in volatile markets. If the price rises too far instead of falling, the exchange may liquidate your position automatically. 2. Futures Contracts Crypto futures let you speculate on price movements without borrowing tokens. Instead, you open a short position by selling futures contracts. Common types include perpetual futures, which have no expiration date and use funding rates to balance long and short interest. Pros: No need to borrow crypto directly High liquidity on major exchanges Deep leverage options No interest in borrowed crypto Cons: Funding fees may work against you Liquidation remains a major risk. Complex for beginners Futures are the preferred choice for professional traders due to flexibility and lower borrowing costs. 3. Options Trading Put options allow you to profit from price declines without needing to borrow or sell an asset. A put option gives you the right, but not the obligation, to sell a crypto asset at a predetermined price. Pros: Limited downside risk No liquidation Strategic flexibility Cons: Options premiums can be expensive Requires understanding of options pricing Lower liquidity than futures Options are ideal for hedging portfolios or taking short positions with capped risk. 4. Leveraged Tokens Some exchanges offer inverse or bearish leveraged tokens (e.g., BTC3S), which increase in value as the underlying asset falls. Pros: No liquidation Easy to hold like regular tokens Automated position rebalancing Cons: Decay issues during sideways markets High fees Short-term instruments only Leveraged tokens are suitable for short-term directional bets, not long-term holding. When Should You Use Shorting in Crypto? Shorting is powerful but risky. It's not a casual strategy; timing, analysis, and market structure matter. The following are the most suitable conditions for shorting. 1. When the Market Is Clearly in a Downtrend Shorting works best during a sustained bearish trend. In this environment, prices consistently form lower highs and lower lows, signaling downward momentum. Traders also look for bearish crossovers on moving averages, declining trading volume, and negative macro sentiment as confirmation that the market direction is weakening. Technical indicators such as RSI, MACD, and EMA trends help validate the strength of the downtrend before opening a short position. 2. When a Crypto Asset Is Overbought Shorting becomes attractive when a cryptocurrency has risen too quickly and enters overbought territory. These setups often lead to sharp corrections as market enthusiasm cools and traders take profits. Common overbought signals include: RSI readings above 70 Parabolic or unsustainable price movements Meaningful deviations from major moving averages Hype-driven rallies without fundamental support Timing is important; shorting is most effective after signs of exhaustion appear, not while momentum is still aggressively pushing the price upward. 3. During Major News Events or Market Shocks When there are market shocks, people often sell quickly, which is a good time to think about short positions. Regulatory crackdowns, exchange hacks, blockchain outages, or bad news about the economy can all cause prices to drop suddenly and by a lot. Sometimes, professional traders open short positions in response to these events to take advantage of sudden price changes or to protect their current portfolios from losing money. 4. To Hedge a Long Position Shorting is also an effective hedging tool for traders holding long-term crypto positions. For example, if you hold ETH for the long haul but anticipate a short-term pullback, you can open a short futures position. This strategy allows potential gains on the short position to offset temporary losses on the long position, providing protection without the need to sell your holdings. Hedging with shorts is especially useful during periods of uncertainty or expected volatility. 5. When Funding Rates Favor Short Positions In perpetual futures markets, funding rates help balance long and short interest. When the market becomes overly bullish, funding rates may turn negative. Negative funding is beneficial for short sellers because it means long traders are paying shorts, providing additional profit on top of any price decline. A negative funding environment can also signal that the market is excessively optimistic and potentially due for a correction, making it a strategic time to consider shorting. Risks of Shorting Crypto Shorting involves significant risks, especially because crypto markets move fast and unpredictably. Infinite Loss Potential: When you go long, the worst-case scenario is that the asset goes to zero. When you short, the asset can rise indefinitely. Liquidation: Exchanges liquidate short positions once losses hit your collateral limit. Short Squeezes: If too many traders are short, a sudden upward move can cause mass liquidations, forcing shorts to buy back, which pushes the price even higher. Borrowing Costs and Funding Fees: Margin interest and funding rates can erode your profits quickly. High Volatility: Crypto prices move faster than traditional markets, making shorting more dangerous without strict risk management. Best Practices for Shorting Crypto Shorting can be highly profitable, but only when approached with discipline and proper risk management. To avoid costly mistakes and improve your chances of success, traders should follow key best practices that help control risk, refine timing, and maintain strategic clarity. Use stop-loss orders to limit downside. Avoid high leverage unless experienced. Monitor funding rates and interest costs. Time entries using strong technical signals Never short low-liquidity tokens Always plan exits before entering a trade. Shorting should be part of a broader risk-managed strategy, not a gambling approach. When Shorting Becomes a Smart Strategy Shorting is one of the most versatile tools in crypto trading, but also one of the riskiest. It allows traders to profit during downturns, hedge against market corrections, and diversify trading strategies beyond simple long positions. However, effective shorting requires skillful market timing, strong technical analysis, and disciplined risk management. Used correctly, shorting can enhance your trading performance, especially during bearish trends, overbought conditions, or major market disruptions. But without proper controls, it can lead to rapid losses. The key is understanding the tools, respecting the risks, and applying shorting only when market structure and analysis strongly support the move. FAQs Is shorting crypto safe for beginners? Not entirely. Shorting involves high risk and requires a strong understanding of leverage, liquidity, and market structure. Beginners should start small or practice with demo accounts. Can I short crypto without using leverage? Yes. You can short with futures or inverse tokens without directly borrowing assets, though risks still exist. Why is liquidation more common when shorting? Because crypto markets are highly volatile, sudden upward moves can quickly push your position beyond your collateral limit. Do all exchanges allow shorting? No. Shorting typically requires margin or derivatives features, which are available only on certain centralized exchanges. Is shorting the same as selling a crypto asset I already own? No. Selling your own asset is taking profit; shorting involves borrowing an asset you don’t own in order to profit from a price drop. References OSL: What is Short Selling and How to Short Crypto? Margex: How to short cryptocurrency DyDx: How to Short Crypto: A Beginner’s Guide

What Happened at Bybit’s Institutional Gala? At the BIG Series – Bybit Institutional Gala in Dubai, CEO Ben Zhou delivered the most direct articulation yet of Bybit’s institutional strategy. Standing before global regulators, banks, and market operators, he framed the exchange’s full UAE Virtual Asset Platform Operator (VAPO) license and its MiCAR-ready European alignment as the clearest signal that Bybit is stepping into a fully regulated era — one built for professional capital, compliant market access, and long-term industry infrastructure. The VAPO approval places Bybit under one of the world’s strongest supervisory regimes, giving the exchange the authority to deliver a complete institutional product suite from a tightly governed UAE base. For an industry in search of stability and predictable oversight, Zhou presented this moment as a turning point not just for Bybit but for the broader evolution of digital finance. Investor Takeaway The message from Bybit’s leadership is clear: regulated exchanges will define the next wave of institutional capital flow, and liquidity will consolidate around those that can prove operational discipline. Why This Marks a Strategic Shift for the Market Zhou anchored his speech around measurable institutional traction. Inflows into Bybit rose from $1.3 billion in Q3 to $2.88 billion in Q4, while the platform’s wealth management AUM expanded from $40 million to $200 million in the same period. The numbers served a purpose: institutions are already repositioning toward exchanges that can demonstrate reliability under regulated conditions. “Asset inflows rose because the market is seeking reliability,” Zhou noted. He cast the VAPO license as the missing piece that aligns Bybit’s infrastructure with the governance standards major financial institutions expect. Under UAE oversight, Bybit can now offer custody, execution, prime-style services, and derivatives within a single supervised framework — a structure that mirrors traditional financial market models. Zhou underscored that this step isn’t a branding exercise. It’s the start of a wider structural shift where compliance, auditability, counterparty risk management, and operational clarity replace the informal norms that dominated early crypto exchanges. Investor Takeaway Regulated hubs like the UAE and EU will shape liquidity migration in 2026. Exchanges with clear regulatory alignment are poised to capture the bulk of institutional trading flows. How Bybit Plans to Bridge TradFi and Crypto A central theme in Zhou’s address was the convergence of the two markets. He predicted that within five years, digital assets and traditional finance would operate on shared infrastructure — not parallel systems. This shift, he argued, will be driven by standardized custody, regulated execution venues, and interoperable liquidity. Bybit’s existing retail scale provides part of the foundation. The exchange’s card, Pay, and fiat rails now span 13 regions, building a liquidity engine that institutional desks have already tapped for deep execution. Zhou highlighted ongoing work with leading financial institutions in Europe and the Middle East, framing Bybit as a “high-reliability execution venue” for professional market participants. His framing was confident but grounded: retail scale created the liquidity; regulatory alignment now opens the door for institutional certainty. What’s Next for Bybit’s Institutional Push? Zhou closed by outlining a roadmap focused on transparency, governance, and high-performance infrastructure — themes that have become core expectations for institutional crypto trading in 2026. With the VAPO license in hand and MiCAR alignment advancing, Bybit is positioning itself as a primary venue for asset managers, proprietary trading firms, and enterprise-grade counterparties. The exchange now enters 2026 with a reinforced global regulatory footprint, rapidly expanding liquidity, and partnerships that increasingly resemble the connective tissue of a maturing market. For Zhou, the next era of crypto is defined by trust, accountability, and the integration of digital assets into mainstream financial architecture — and Bybit intends to be one of its foundational pillars.

KEY TAKEAWAYS A round trip occurs when a crypto asset rises and falls back to its original price. It helps traders spot false breakouts and avoid chasing unsustainable rallies. Round trips can erase unrealized profits, making timely exits essential. They signal weak market structure and low buyer conviction. Frequently, round-tripping tokens may be overhyped or manipulated. Understanding round trips protects long-term investors from buying at irrational highs. Monitoring volume, RSI, funding rates, and support levels can help anticipate round trips.   Crypto markets move fast, sometimes too fast for traders to process. One moment, a token is surging; the next, it's dropping back to where it started. These dramatic price swings create excitement, confusion, and often significant losses for traders who fail to understand an important trading concept: the round trip. In trading, a round trip doesn't mean two separate trades. It refers to a complete cycle where the price of a crypto asset moves up sharply, then falls back to its original starting point, often wiping out both retail gains and bullish sentiment in the process. As the crypto market matures and volatility increases, recognizing round-trip behavior is becoming essential for traders, analysts, and long-term investors. Understanding how and why round trips happen can help you avoid buying tops, protect profits, and better evaluate the true strength of a price trend. This article breaks down what a round trip is, why it matters, how it affects traders, and how to spot one before it traps you. What Is a Round Trip in Crypto Trading? A round trip occurs when a crypto asset rises significantly in price, only to retrace all those gains and return to its original level. The price essentially completes a "full trip" back to where it started, forming a U-shaped or V-shaped pattern on the chart. For example: A token rises from $1 to $5 (a 400% increase) Then falls back to $1 within days or weeks. This entire cycle is considered a round trip. Round trips aren't just a visual pattern. They reflect underlying market dynamics, speculative buying, rapid liquidity inflows, investor euphoria, profit-taking, and often over-leveraged trading behavior. Crypto markets are uniquely prone to round trips because volatility is extreme, liquidity varies widely, and sentiment shifts quickly. In short, round-trip tickets tell a story: a price surge happened without sustainable support. Why Round Trips Happen in Crypto Round-trip transactions happen in crypto markets much more often than in regular markets. There are a number of reasons for this behaviour: Speculation Over Fundamentals: Many traders act on hype, social media trends, or influencer coverage rather than fundamentals. When excitement fades, prices return to where they realistically belong. Low Liquidity in Certain Tokens: Smaller altcoins don't have a lot of liquidity. A few big buy orders can make prices go up a lot, but when those orders go away, the price goes back down. Leverage and Liquidations: High leverage amplifies volatility. When traders rush to long positions, sudden reversals cause mass liquidations, accelerating a round trip downward. News-Driven Pumps: Announcements about partnerships, integrations, or exchange listings can cause rapid upward moves. Once the excitement fades, the price normalizes. Market Maker Manipulation: Whales or market makers may push prices up temporarily to build short positions, then let the market fall back. Round-trip shows that demand was temporary or artificial, not supported by long-term buying pressure. Why Round Trip Matters in Crypto Trading Most traders pay attention to price, but few understand price strength. A round trip exposes how weak a price breakout really was. This has big effects on day traders, swing traders, and long-term investors. This is why the idea is more important than ever: Here is your section rewritten into clear, organised paragraphs with subheadings and bullet points where they make sense: 1. It Helps Traders Spot Fake Breakouts There are a lot of "fake pumps" in the crypto markets. This is when prices seem to be going up, but then quickly go back down. Traders can avoid making mistakes by watching round-trip trends. If a breakout goes back down quickly, it means that the rally didn't have real support. Most of the time, this means: Demand was speculative Volume was thin Buyers were not committed. Traders who spot this early can avoid buying at the top or even prepare to short the retracement, reducing potential losses. 2. It Prevents Profit Erosion for Active Traders Many traders hold winning positions too long, hoping for even bigger gains. A round trip can erase unrealized profits faster than expected, making timing critical. Understanding the pattern encourages traders to: Set stop-losses Lock in partial profits. Recognize when momentum weakens. Exit before a reversal completes the round trip. In many cases, preserving profits is more important than chasing additional gains. 3. It Signals Weak Market Structure A price move that fails to hold its gains often indicates structural weakness in the asset or trend. Round-trip reveals that: Buyers lack confidence Resistance levels remain strong. Sellers control the market. The asset lacks fundamental catalysts. Repeated round-trip signals broader market uncertainty or low conviction, warning traders to approach with caution. 4. It Helps Identify Manipulated or Overhyped Tokens Round-trip transactions frequently occur in assets prone to hype or manipulation, such as: Meme coins Low-cap altcoins Influencer-driven tokens Newly listed coins. Tokens that regularly round-trip after hype-driven rallies are red flags for long-term investors, highlighting the risk of artificial pumps. 5. It Protects Long-Term Investors From Buying at Unsustainable Prices Understanding round-trip behavior helps long-term investors avoid entering positions at irrational highs. Instead, they can wait for safer conditions, such as: Price stabilization Consolidation periods Clear support formation This approach allows investors to enter the market strategically, minimizing risk and increasing the likelihood of sustainable gains. How to Spot Round-Trip Patterns Early Detecting a round trip before it completes allows traders to exit early or avoid getting trapped. Here's how to spot one forming: Watch Volume: If a price pump occurs on low or declining volume, it is likely unsustainable. Monitor RSI Divergence: If price moves up while momentum weakens, a round trip may follow. Track Funding Rates: Extreme positive funding rates in perpetual futures indicate overheating before a reversal. Look for Sharp Rejections at Key Levels: If price spikes into resistance and drops instantly, the rally may be weak. Use Multiple Timeframes: A pump on a 5-minute chart may look strong, but the 4-hour or daily chart might show weakness. Check Order Book Depth: Shallow order books allow price manipulation and make round-trip trades more likely. Using these tools helps traders respond before the market snaps back. Why Round Trips Are Increasing Today Round-trip transactions have become more frequent in today's crypto market largely because of changing market dynamics and the rapid evolution of trading behavior. One major factor is the increased availability of leverage on most centralized exchanges, which encourages aggressive long positions and amplifies price swings. When heavily leveraged traders are liquidated, the resulting volatility often pushes prices back to their starting point. Algorithmic trading has also intensified this phenomenon. Advanced bots exploit even minor inefficiencies and react to market movements far faster than human traders, accelerating both sharp rallies and sudden reversals. At the same time, social media now drives information cycles at high speed, causing quick bursts of hype that pump prices before sentiment fades just as quickly. Retail participation adds another layer of volatility. During bullish periods, inexperienced traders often pile into assets without understanding risk, fueling quick price spikes that lack fundamental support. Combined with the growing number of speculative and low-liquidity tokens entering the market, these conditions create an environment where dramatic up-and-down movements and full round trips are far more likely. Together, these forces amplify both upward surges and downward retracements, making round trips a defining feature of today's crypto landscape. How Traders Can Use Round Trips Strategically Round-trip isn't purely negative. Skilled traders can turn them into opportunities. Shorting After a Failed Breakout: A failed rally followed by weakening volume often signals a good short entry. Buying at Re-Entry Zones: If the asset returns to its starting level but holds strong support, it may offer a lower-risk buy. Using Stop-Losses Wisely: Understanding round-trip patterns helps traders place stops where the price is less likely to whip back. Avoiding Overpaying for Hype: Recognizing unsustainable pumps protects traders from buying emotional tops. Evaluating Long-Term Strength: If a crypto consistently avoids round trips and holds gains, it is stronger fundamentally. Using Round Trip Insights to Navigate Crypto Volatility Round-trip trades are now a big part of modern crypto trading. They show weak rallies, point out speculative behaviour, and help traders tell the difference between real momentum and moves that are driven by hype. Understanding round-trip dynamics is important for both short-term traders and long-term investors who want to navigate today's unstable market. Traders can make better decisions, protect their profits, and stay away from emotional traps that lead to losses by learning how to spot these patterns early and understanding what they mean for market structure. FAQs What is a round trip in crypto trading? A round trip happens when a crypto asset’s price rises sharply but then falls back to its original level, often erasing gains from speculative buying. Why do round trips happen so often? They occur due to factors like low liquidity, leverage trading, hype, social media influence, and algorithmic trading. How can traders protect profits from round trips? Use stop-losses, lock in partial gains, and monitor momentum indicators to exit trades before prices revert. Can round trips signal manipulated tokens? Yes. Meme coins, low-cap altcoins, and hype-driven tokens often round-trip, indicating unsustainable price movements. Are round trips dangerous for long-term investors? They can be if investors buy at inflated prices. Waiting for stabilization, consolidation, or clear support reduces risk. References Investopedia: Round-Trip Trading: Definition, Examples, and Ethical Considerations Tradingkey: Round Trip Hexn: Understanding Round-Trip Trading