Crypto trade associations in the US have slammed a complaint filed by the Federal Trade Commission that suggested a Utah-based company broke the law when it built software without a so-called kill switch. That software, a crypto bridge called Nomad, was hacked for nearly $200 million in 2022. While its developers were able to recover millions in stolen crypto, Nomad has failed to gain any traction since it was relaunched in December that year. Though the project is seemingly defunct, parent company Illu ...

Core Insights - Lighter, the largest decentralized perpetual futures exchange, recently airdropped its token LIT, with half of the supply allocated to employees and investors, and a quarter to early users [1][5] - The token opened at over $3.30 but dropped to around $2.50 shortly after [1] - The total supply of LIT is 1 billion tokens, valuing the protocol at approximately $2.5 billion, which is a 66% increase from its previous valuation of $1.5 billion when it raised $68 million in November [2] Company Overview - Lighter is developed by Elliot Technologies, based in Florida, and operates as a layer 2 blockchain on Ethereum, focusing on decentralized exchange for spot and perpetual futures trading [3] - Since its launch in January, Lighter has achieved over $201 billion in trading volume in the past 30 days, establishing itself as a leading player in the perpetual futures market [3] Business Model - Lighter adopts a fee-free model for most users, inspired by Robinhood, only charging fees for market makers and high-frequency traders since September [4] - The company aims to simplify trading for retail users to expand its market reach [4] Token Distribution and Utility - The token distribution includes a quarter for users who accrued points since the launch, another quarter for future growth initiatives, and half for employees and investors, with a one-year lockup and three-year vesting period [5] - LIT will serve as a fee token for financial data providers and subscribers, with staking incentivizing verifiable data for trading and risk management [6] - Revenue generated by the protocol will be allocated to growth initiatives and token buybacks [6] Value Proposition - The company asserts that the value generated by all Lighter products and services will accrue to LIT holders, emphasizing its commitment to building in the USA and operating the protocol at cost [7]

Core Insights - The article discusses the differences and similarities between traditional finance and cryptocurrencies, emphasizing that while some financial principles remain applicable, cryptocurrencies represent a new form of financial innovation [1][2]. Group 1: Financial Activities - Finance fundamentally consists of three activities: lending, investing, and insurance, with all financial products fitting into these categories [1]. - Financial innovation historically aimed to reduce friction in these activities or obscure them, whereas cryptocurrencies are seen as a genuine innovation [2]. Group 2: Decentralized Finance and Tokenization - Tokenization allows for the breakdown of large claims into smaller ones, and decentralized finance (DeFi) aims to replicate financial market functions by eliminating intermediaries [3]. - Bitcoin serves as a modern tool for insuring against currency debasement, although its effectiveness as a transaction currency remains questionable [3]. Group 3: Risks and Historical Context - The article critiques the notion that DeFi will completely eliminate middlemen, suggesting it may instead facilitate rent extraction by a concentrated financial industry [4]. - The wisdom from traditional finance warns against leveraging borrowed money to invest in volatile assets like Bitcoin, labeling such strategies as imprudent [5][6]. - A described strategy in the crypto world, known as "looping," mirrors old financial schemes and poses significant risks, akin to a pyramid scheme [6][7].

Core Insights - The crypto market is experiencing a shift towards maturity, with a focus on long-term infrastructure development rather than short-term speculation [1][4] - Regulatory clarity, such as the Genius Act, is expected to unlock further capital and innovation in the crypto space [2][11] - The integration of decentralized finance (DeFi) products and artificial intelligence (AI) is anticipated to enhance user experience and broaden market participation [3][19] Market Trends - The total crypto market capitalization has decreased by approximately 13% year-to-date, yet underlying fundamentals are improving [1] - Venture capital investment in crypto companies has surged to over $25 billion, marking a 73% increase from 2025 [6] - Adoption of stablecoins and tokenized assets is projected to accelerate, supported by U.S. government initiatives [7][20] Institutional Adoption - Traditional financial institutions are increasingly launching blockchain-enabled products, indicating a significant inflection point for institutional adoption in 2026 [8][9] - Major banks and asset managers view blockchain initiatives as growth opportunities, facilitating the transition from legacy systems to modern infrastructure [9] - The signing of the Genius Act has created a more favorable environment for institutional participation in digital asset markets [11][13] Product Development - Perpetual contracts are becoming the most utilized financial products in crypto, with new applications emerging that link to real-world assets [5][21] - The line between traditional finance and DeFi is expected to blur, with familiar financial products moving on-chain [26][27] - Consumer-facing crypto applications are anticipated to become more user-friendly, making blockchain technology less visible to end-users [24][25] Future Outlook - The crypto market is expected to see a rise in niche assets and products that cater to existing risks, enhancing accessibility for everyday users [19] - The role of machines in financial transactions is likely to increase, leading to a more automated and efficient market environment [22] - Emerging markets, particularly in Africa, are showing a growing appetite for blockchain investments, with significant venture capital funding directed towards this sector [15][14]

Group 1: Market Growth and Projections - Decentralised finance (DeFi) transaction volume is expected to exceed $3 trillion by next year, with total value locked across blockchain networks projected to reach $500 billion by 2026 [1][2] - Fundraising for DeFi-linked projects is anticipated to rise to $40 billion next year, doubling from approximately $20 billion in 2025, driven by capital injections from token sales and venture capital [2] Group 2: Hybrid Finance and Adoption - A hybrid finance model is expected to emerge, where traditional banks utilize DeFi smart contracts for settlement and yield, with the number of hybrid projects involving major banks projected to at least double by 2026 as regulatory clarity improves [3] - Real-world asset tokenisation is forecasted to grow from $1.1 trillion currently to $2 trillion next year, indicating a convergence of traditional markets with blockchain finance [4] Group 3: Leading Sectors and Market Structure - Key sectors leading the growth in tokenisation include tokenised funds, stocks, real estate, corporate debt, and money market funds, which will bridge traditional finance and DeFi, enhancing liquidity for both institutional and retail participants [5] - By mid-2026, DeFi wallets are expected to reach 12 million, although only 25-35% are projected to be unique active users, indicating a market stabilising in a more data-driven and utility-focused manner [6]

Core Insights - Crypto investors are increasingly turning to tokenised gold as its price surpasses $4,000, marking its best year-to-date performance in over 45 years [1] - The total value of tokenised gold in circulation exceeds $3 billion, with a 53% increase in the number of crypto wallets holding tokenised gold since the beginning of the year [1] - The supply of Tether Gold has increased by 52% and Paxos Gold by 50% since January [2] Market Performance - Gold has surged 54% since the start of the year, outperforming Bitcoin's 31% gain, positioning it for its strongest annual performance since 1979 [3] - The rise in gold prices is attributed to concerns over long-term debt sustainability and the erosion of fiat currencies due to excessive money printing and inflation [3] Investment Trends - Investors are gravitating towards gold and Bitcoin as reliable stores of value amid fears of currency debasement, a trend further fueled by Japan's new Prime Minister advocating for increased public spending and tax cuts [4] - The record rise in gold prices is prompting both traditional and crypto investors to reassess the asset, with tokenised gold gaining traction as a modern investment vehicle [5] Tokenised Gold Advantages - Tokenised gold allows holders to engage in decentralized finance applications on blockchains like Ethereum, transforming gold into an active asset for lending, borrowing, and wealth building without reliance on fiat currency [5][6]

Digital Asset Market Growth - Hong Kong's digital-hub ambitions are being supported by regulatory clarity and new licensing regimes aimed at attracting digital asset investments [1][7][15] - A significant increase in private wealth management firms' allocations to digital assets is expected, rising from 2% to 6-10% over the next five years [2] - Institutional investors are increasingly recognizing cryptocurrencies as a legitimate asset class, with nearly 60% planning to allocate more than 5% of their assets to digital currencies [4] Institutional Participation and Market Dynamics - Greater participation from institutional investors is anticipated to reduce cryptocurrency volatility and enhance market stability [5][20] - The number of public companies investing in Bitcoin has increased by over 135% in the past year, with these companies now holding approximately 4.6% of all Bitcoin [22] - The launch of cryptocurrency ETFs has provided a secure and convenient way for investors to access digital assets, contributing to market liquidity [10][11] Regulatory Developments and Infrastructure - Hong Kong's government is enhancing its regulatory framework to support digital asset products, including stablecoin legislation and licensing for virtual asset exchanges [15][31] - The introduction of a stablecoin ordinance in Hong Kong marks a significant step towards establishing a regulated environment for digital finance [31][32] - The city's infrastructure is being developed to connect custody, stablecoins, and virtual asset licenses, which is expected to drive greater participation in the digital asset market [31] Market Performance and Investor Sentiment - The performance of cryptocurrency ETFs has been strong, with some posting monthly gains exceeding 53% amid rising asset prices [14] - Wealth management firms are responding to client interest in digital assets, with some planning significant allocations to decentralized finance hedge funds [26][29] - There is a shift in investor sentiment from skepticism to a fear of missing out on digital asset opportunities, indicating growing acceptance [29][30]

Core Insights - Mutuum Finance (MUTM) has quickly gained traction in the decentralized finance (DeFi) space, raising over $15.8 million and attracting more than 16,300 holders in a short period [1] - The platform aims to provide a decentralized lending and borrowing solution, allowing users to earn yield on idle crypto or unlock liquidity without losing custody of their assets [2] Company Overview - Mutuum Finance is building a fully decentralized lending-and-borrowing platform, initially launching on Ethereum with plans for expansion to other blockchain networks [2] - The primary asset of the platform is the MUTM token, an ERC-20 token with a fixed supply of 4 billion, with up to 45% available in a multi-phase presale at tiered prices [3] Market Dynamics - The platform features two market designs: Peer-to-Contract (P2C) and Peer-to-Peer (P2P), catering to different user needs [5] - In the P2C model, assets are pooled in a shared smart contract, allowing for near-instant execution and dynamic rate adjustments based on utilization [6] - The P2P model allows for custom loan agreements, where lenders and borrowers negotiate terms, ensuring that each loan is isolated in its own vault [7] Investment Opportunity - The current price of MUTM in Phase 6 is $0.035, with early backers from Phase 1 having seen gains of approximately 250% [4] - The planned listing price for MUTM is set at $0.06, indicating potential for further price appreciation [4]