Crypto Lake

🚀 Bitcoin's Record Surge: Binance Dominates the Market 📈 This month, bitcoin soared past $120,000, reaching an all-time high and sparking significant activity in both spot and derivatives markets. Binance emerged as the leader in this surge, dominating trades in bitcoin and altcoins, according to Cryptoquant data. 📊 Spot trading intensified on July 13 and 14 as bitcoin approached its previous peak. Binance's bitcoin spot volume increased dramatically from $3.1 billion to $8.4 billion, nearly tripling. Other exchanges also experienced a rise in volume, growing from $5 billion to $12.7 billion, a 2.6 times increase. 💥 Altcoins saw similar activity, with Binance's altcoin spot volume rising from $11.5 billion on July 13 to $20.4 billion on July 14—a 77% increase. Combined altcoin volumes on other centralized platforms grew from $22.3 billion to $33.6 billion, marking a solid 51% gain. 📈 Binance not only increased its volume but also gained market share. Its share of the total bitcoin spot market grew from 39% to 48% the day after the record high. Similarly, Binance's share of altcoin trading volume jumped from 34% to 47% during this period. 🏆 By July 18, Binance held 52.6% of all bitcoin spot trading and 49.41% of altcoin trading, leaving competitors like Bybit (11.67% for bitcoin, 8.11% for altcoin), OKX (6.9% for bitcoin, 7.88% for altcoin), and MEXC (2.98% for bitcoin, 10.4% for altcoin) far behind. 📈 The excitement extended to derivatives markets as well. When bitcoin reached its peak, open interest in perpetual futures across centralized platforms hit a new high of $43 billion. Binance led with $14.1 billion in open interest, followed by Bybit and Gate each near $9 billion. 📈 In the 30 days leading up to the peak, Binance saw the largest cumulative open interest increase at $3.6 billion. This surge indicated more money flowing into derivatives as traders anticipated even higher prices. 📉 Even after bitcoin surpassed $120,000, Binance maintained its momentum. On July 15, its 24-hour bitcoin spot volume reached $8.8 billion, while other exchanges experienced a 25% decline to $9.5 billion. This suggests that Binance not only attracted new users during the rally but also retained its trading activity as others slowed down.

🚀 US Legislation Sparks New Era in Crypto and Blockchain Innovation 🌟 The United States has ushered in a new era of crypto dominance with the recent passage of landmark legislation that aims to transform finance, healthcare, and the global digital economy through blockchain and AI. The GENIUS Act, signed into law by President Donald Trump on July 18, establishes the first comprehensive federal regulatory framework for payment stablecoins in the U.S. This legislation mandates strict reserve requirements, regular public disclosures, and robust consumer protections to solidify the U.S. dollar’s role in the digital asset space. 💬 Robinhood CEO Vlad Tenev expressed optimism about this development, stating,

It’s incredibly significant. I think it shows that this country is ready to take the lead globally with digital assets, and it should be in the lead.

He emphasized that digital assets and artificial intelligence are frontier technologies that will shape the future of every industry. 🔗 Tenev highlighted the importance of foundational technologies like stablecoins, which digitize dollars and U.S. Treasuries, serving as a gateway to wider tokenization. He believes that the GENIUS Act paves the way for the entire financial system to eventually be powered by crypto technology, leading to greater value for users and improved economics. ➡️ In addition to the GENIUS Act, the Digital Asset Market Clarity (CLARITY) Act recently cleared the U.S. House. This legislation aims to resolve jurisdictional ambiguity by clearly assigning digital asset oversight between the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC). It seeks to provide the regulatory certainty that industry stakeholders have called for, strengthening the legislative foundation for the country’s digital asset strategy. ➡️ The GENIUS Act has been welcomed by industry leaders as a critical step toward mainstream integration of crypto. By combining compliance with innovation, this legislation could advance real-world use cases while preserving American competitiveness in a rapidly evolving digital economy.

💰 BigONE Exchange Reports $27 Million Loss from Security Breach 🚨 Cryptocurrency exchange BigONE has confirmed a significant $27 million loss due to a third-party attack on its hot wallet on July 16. The incident was highlighted by blockchain security firm Slowmist, which warned of a compromise to the exchange's production system. This breach allowed the attacker to modify operating logic on account and risk control-related servers, facilitating the theft of funds. 🔍 In response to the attack, BigONE stated that it quickly identified and contained the breach. The exchange assured its users that all private keys remained secure and that no further losses were anticipated. BigONE is working closely with SlowMist to trace the hacker's addresses and monitor fund movements. 💼 The exchange committed to fully compensating affected users, stating,

BigONE will fully cover all losses incurred from this incident. User assets will not be affected in any material way.

To support this, BigONE activated its internal security reserves, including BTC, ETH, USDT, SOL, and XIN, to replenish user funds. 🔄 For other tokens impacted by the breach, BigONE is seeking external liquidity through borrowing mechanisms to restore the platform wallet swiftly. The exchange indicated that system recovery efforts were underway, with deposit and trading services expected to resume shortly. However, withdrawal functions would be reinstated only after additional security measures were implemented. ✅ In a subsequent update, BigONE announced the successful completion of a system upgrade and the full restoration of deposit and trading services. The withdrawal and OTC functions would be re-enabled once the system's stability was confirmed.

🔥 24-HOUR COINSRUN CHALLENGE IS ON! 🔥 Welcome to the hottest Telegram game in Web3 — @CoinsRun. Join now and compete to win! 🕹️💰 🎯 The top 5 players who collect the most coins in a single run will each win $30 USDT! How to enter: ✅ Play the CoinsRun game ✅ Collect the maximum number of coins in one run ✅ Drop your username in the comments You've got just 24 hours to race to the top — good luck! 🏁 Let’s see who’s got the fastest fingers in Web3 👀 🥇Run, Collect and Win: http://bit.ly/4ltJBS3 Telegram | Chat ENG | X (Twitter)

🌐 The Convergence of Crypto Payments and AI: A New Era in Web3 Ecosystems 🔗 The crypto payments landscape is evolving as it merges with artificial intelligence (AI) technologies. A report by Oak Grove Ventures explores this shift through three case studies: Crossmint’s collaboration with Boba Guys, AEON’s crypto-native payment protocol for AI agents, and Gaia Network’s partnership with MoonPay. These examples illustrate how technology integration is transforming payment processes and user interactions. 🔄 At the heart of this transformation is a new logic: AI enhances payment systems with dynamic decision-making, while blockchain provides a secure execution environment for AI agents. This creates a closed loop of “data on-chain → intelligent processing → value transfer.” The AI agent market is expected to grow significantly, from $5.1 billion in 2024 to $47.1 billion by 2030, with a compound annual growth rate (CAGR) of 44.8%. As a value carrier for AI, crypto payments are redefining user interactions in Web3 and driving the digital transformation of traditional sectors. 🌍 This trend highlights how technological collaboration is bridging the gap between on-chain and off-chain worlds. Crypto payments connect data value while AI facilitates intelligent alignment between assets and behavior. We are approaching a tipping point in realizing the vision of a value internet—moving from concept to large-scale application. 👉 For a deeper understanding of the case studies, industry challenges, and future prospects of this integration, click on the original link to access Oak Grove Ventures’ comprehensive research.

💱 Russian Diplomat Blames Biden for Dollar's Decline ➡️ A senior Russian diplomat has attributed the declining dominance of the U.S. dollar in global finance to former President Joe Biden. Maria Zakharova, spokesperson for the Russian Foreign Ministry, accused the Biden administration of using payment systems as instruments of political coercion. 📉 In a briefing on July 9, Zakharova claimed that Biden's administration intentionally isolated countries from U.S.-based financial systems, including those that excluded Russia. She argued that this strategy backfired, leading nations to seek alternatives to the dollar.

the dollar’s weakening status is “the direct accomplishment” of Biden’s leadership

she stated, emphasizing that it is not merely a spontaneous global shift. 🌍 Addressing rumors about BRICS eliminating the dollar, Zakharova clarified that discussions within the group focus on financial inclusivity rather than currency replacement. She asserted that the dollar no longer holds an unchallenged reserve status and expressed support for a multi-currency system that ensures fair access to legal trade settlements.

🚨 Breaking: 📢 Trump Announces 25% Tariffs on Japan and South Korea, BTC Price Reacts 📊 👉 Read more

➡️ Bitcoin Developer's Arrest Over Neighbor Dispute in El Salvador ♾ Jon Atack, a long-time Bitcoin Core developer, was recently arrested in El Salvador after his neighbor accused him of insulting her during a land dispute. He faced potential imprisonment of up to eight years due to a peculiar aspect of Salvadoran law, the "Special Comprehensive Law for a Life Free of Violence for Women" (Ley Especial Integral para una Vida Libre de Violencia para las Mujeres) or LEIV, which was enacted in 2011 to protect women against femicide and domestic violence.

“This was about land,” Atack explained in a series of posts on X. “The neighbors have been in a bitter fight with the seller of my land and another lawsuit is beginning,”

he said. 💼 Atack had purchased a piece of land from a Salvadoran seller, despite his neighbors being involved in a legal dispute with that seller over ownership. On the day of the transaction, the neighbors convinced a judge to seize part of the property. Confused by this seizure, Atack approached his neighbors to resolve the issue.

“I proposed we inform the judge of the mistake, liberate the land, and that I not be drawn into the legal conflict between them and the seller. That it would be dumb to litigate for this,”

Atack recounted.

“She then called the police to say that I had insulted her, calling her stupid.”

⚖️ Under Article 55 (c) of LEIV, insulting a woman can be considered verbal or emotional abuse punishable by a fine or imprisonment. Atack's lawyer warned him that he could face serious consequences, including several days in jail and up to eight years in prison if found guilty.

⚖️ Bitcoin's Resilience Amidst Global Tensions 🌍 Last week, despite intense global headlines about nuclear threats, trade disputes, and political turmoil, Bitcoin remained relatively stable with only a slight decline. It started the week strong but ended approximately 3.5% lower than the previous Friday as attention shifted towards geopolitical and macroeconomic factors. ⚡️ On June 1, 2025, tensions escalated when Ukraine's SBU launched Operation Spiderweb, targeting Russian bombers. This prompted a warning from Kremlin spokesman Dmitry Peskov about potential retaliation. The framing of this incident by Western media as daring rather than reckless raises concerns about the risk of nuclear escalation and its implications for international shipping. 📉 The U.S.-China trade relationship also deteriorated, with Washington accusing Beijing of violating a recent tariff rollback deal. This ongoing tension is straining supply chains, evidenced by a 57% increase in container freight costs from Shanghai to LA. American automakers have urged the government to address China's rare-earth export restrictions to prevent parts shortages. 💔 Additionally, a public feud between Donald Trump and Elon Musk unfolded on social media. However, some see a silver lining in this conflict for Bitcoin, suggesting that Musk's comments could indicate a shift towards becoming a Bitcoin advocate. 📊 Despite these challenges, Bitcoin's 3.5% decline seems modest in light of the surrounding uncertainties. There are bullish arguments for Bitcoin that have been discussed extensively. Ram Ahluwalia, CEO of Lumida, summarized the situation well:

These geopolitical risks are nothing burgers… Just zoom out. What drives asset prices, especially stock prices, is earnings growth.

He pointed out recent 12% year-over-year earnings growth, stabilizing interest rates, and improving inflation metrics as reasons for optimism. ♾ In conclusion, while last week was tumultuous for global affairs, Bitcoin took a brief pause. However, there is an expectation for Bitcoin to regain its prominence soon as the macro landscape continues to evolve.

📈 Record Highs in Stock Markets Amid Bitcoin Stagnation 📊 Stock markets reached unprecedented levels on Friday, with the S&P 500 and Nasdaq closing at all-time highs. Despite this surge, Bitcoin's price remained relatively stable. Bitcoin treasury companies like Strategy and Metaplanet have been aggressively purchasing Bitcoin, yet its value has seen little movement. ⚡️ Over the weekend, U.S. President Donald Trump achieved some victories. He halted all trade talks with Canada until Prime Minister Mark Carney retracted the controversial digital services tax on American tech companies. This tax was set to be implemented on Monday but has now been officially withdrawn. Trade negotiations between the U.S. and Canada are expected to resume soon.

ONE GREAT BIG BEAUTIFUL BILL, is moving along nicely,” Trump wrote on Truth Social. “MAKE AMERICA GREAT AGAIN!

📉 Despite these developments in the stock market and political arena, Bitcoin has been trading within a narrow range. Over the past 24 hours, its price fluctuated between $106,759.65 and $108,798.79. At the time of reporting, it dipped slightly to $107,142.61 but remained up 5.33% over the past week. Trading volume increased by 25.4% to $39.8 billion, primarily due to a typical post-weekend surge. Market capitalization rose by 0.74% to $2.12 trillion and Bitcoin dominance increased by 0.07% to 65.41%.

Futures open interest fell 2.17% to $71.92 billion, suggesting less leveraged speculation.

➡️ Ben Perrin's YouTube Account Suspension: A Cautionary Tale ♾ Ben Perrin, a well-known Bitcoin educator and host of the YouTube channel "BTC Sessions," experienced a shocking moment during a live stream on X when his account was suspended. He remarked,

I think that the channel just got cut from Youtube. It’s telling me that my Youtube channel is gone with no warning whatsoever.

This abrupt action was attributed to a potential violation of YouTube's policy on "dangerous and harmful content." 🔄 After raising awareness about this incident on X, which he deemed an "unbelievable" error by YouTube, Perrin's account was reinstated. YouTube acknowledged the mistake, stating,

This was a mistake on our end and your channel has been reinstated. We’re very sorry for the frustration this caused. Your videos and content will reappear within 24-48 hours.

📈 Following this experience, Perrin is considering a shift to Rumble, a competing streaming platform known for its commitment to free speech.

🛡 Rethinking Passwords: A Call for a Privacy-First Approach 🔒 The recent data breach exposing 16 billion login credentials has ignited a debate about the future of passwords. While security experts recommend immediate password changes, some argue that this reactive approach does not provide real protection against future breaches. Instead, they advocate for a shift away from centralized databases towards a privacy-first mindset that utilizes decentralization. 🗣 Shahaf Bar-Geffen, CEO of COTI, emphasizes that the traditional trust-based model is inadequate for the online world. He states,

The traditional, trust-based world is not suited to the online world, and yet it’s still the dominant mode of operation.

Nanak Nihal Khalsa, co-founder of Holonym, echoes this sentiment, pointing out that companies continue to rely on centralized models because they are cheap and convenient. He argues,

The problem is companies are still using these instead of decentralized alternatives because they are cheap and convenient.

⚡️ One potential solution is the use of decentralized and encrypted data accessed through innovations like Zero-Knowledge Proofs (ZKPs) and Homomorphic Encryption. However, the relevance of passwords in an era of sophisticated cybercriminals is increasingly questioned. Khalsa notes that while there has been talk of eliminating passwords for a decade, no clear alternative has emerged. He points out that

passkeys are typically synced in our cloud accounts that ultimately rely on passwords.

🌐 Despite these challenges, Bar-Geffen believes that tools like decentralized identity, ZKPs, and crypto wallets can provide secure, user-controlled access. However, he stresses the importance of getting companies, governments, and users to adopt a privacy-first approach. He warns that with the rise of artificial intelligence (AI) and the potential for increased data breaches,

we could even see the internet rendered unusable without a new model for privacy.

💰 Bitcoin's Resilience Amid Global Tensions 📉 Bitcoin (BTC) maintained its position above $100,000 for over 40 days but ended the week at $103,355, reflecting a 1.3% decline. In contrast, Bitcoin Cash (BCH) outperformed the market with a nearly 10% increase, reaching over $476. 🌍 Despite escalating conflicts between Israel and Iran that rattled markets, BTC remained relatively stable. It experienced an upward trend at the beginning of the week, peaking just under $109,000 on June 16. However, it dropped to $103,645 within 24 hours before stabilizing between $104,000 and $105,000 for the next three days. 🏦 During this period, the U.S. Federal Reserve, led by Jerome Powell, decided to keep interest rates unchanged. This decision sparked frustration from the U.S. President. However, comments from Federal Governor Christopher Waller suggesting a potential rate cut in July pushed BTC past $106,000 on June 20. This surge was short-lived, as the cryptocurrency fell to $103,000 shortly after. 📉 Other major digital assets also closed the week lower, with Hyperliquid experiencing the steepest decline at 19%. AVAX and SUI dropped by 9.9% and 10% respectively, while DOGE fell by 9.2%. ADA saw a significant decrease of 8.6%, ending the week at $0.5744. 📈 On the other hand, BCH emerged as a leader among gainers, rising nearly 10% and closing just above $476. Since hitting a low of $382.22 on June 5, BCH has surged by almost 24%, making it one of the top-performing digital assets in June. 🌟 Other notable gainers for the week included WBT with over 25% growth, SEI at 28%, and KAIA rising by 26%. SNTR was the standout performer, skyrocketing by nearly 800%, while ZKJ faced the largest drop, plummeting by 85%.

💰 U.S. Authorities Target $225M in Cryptocurrency Linked to Investment Scams 🚨 U.S. authorities have filed a civil forfeiture complaint against over $225.3 million in cryptocurrency allegedly tied to investment scams. The complaint was submitted to federal court on June 18, 2025, by the U.S. Attorney’s Office for the District of Columbia. It claims that the cryptocurrency is linked to the theft and laundering of funds from victims of cryptocurrency confidence scams. 🔍 Investigators from the U.S. Secret Service and FBI utilized blockchain analysis to trace the funds, uncovering a complex laundering network that conducted hundreds of thousands of transactions across various cryptocurrency addresses to obscure the origin and ownership of the fraud proceeds. The investigation confirmed dozens of U.S. victims and identified over 400 suspected victims globally, all of whom suffered significant losses after being misled into believing they were making legitimate investments. 💬 U.S. Attorney Jeanine Ferris Pirro emphasized the goal of the action was to

rip

stolen funds from criminals and restore them to victims. Matthew R. Galeotti, head of the DOJ’s Criminal Division, described it as part of an ongoing effort against scams that cost Americans billions each year. Special Agent in Charge Shawn Bradstreet noted that this seizure

marks the largest cryptocurrency seizure in U.S. Secret Service history

while FBI Special Agent in Charge Sanjay Virmani pointed out the devastating impact on victims extends beyond financial loss. 📊 According to the FBI’s 2024 Internet Crime Report, cryptocurrency investment fraud resulted in over $5.8 billion in reported losses last year. The investigation was led by the Secret Service and FBI San Francisco Field Offices, with assistance from Tether.

💰 Defunct Crypto Firms Still Control $1.5B in Onchain Assets 📉 In recent years, several digital asset firms have collapsed due to various reasons, including major incidents like the FTX and Terraform Labs failures. Despite their demise, some of these firms still retain significant onchain wealth.

Though these companies have vanished due to collapses and bankruptcies, their wallets—such as those tied to FTX—remain under the stewardship of court-appointed bankruptcy estates.

💼 Terraform Labs, which imploded in May 2022 after its algorithmic stablecoin UST lost its peg, still holds $2.45 million onchain as of June 14, according to Arkham Intelligence. Most of this value is in two tokens: $1.26 million in convex finance token (CVX) and $1.09 million in governance OHM (GOHM).

FTX followed in November 2022, unleashing a broader shockwave after disclosures revealed customer funds were misappropriated and leveraged to support its own token.

🔗 FTX, the bankrupt exchange, controls wallets with $611.93 million in digital assets. This includes $266 million from its OXY tokens and $232 million from its native token FTT, which still trades at $0.90 per coin. FTX also holds about $52 million in MAPS and $16.31 million in FIDA. 🟢 FTX US, the American branch of the exchange, has $1,640,348 in onchain assets, primarily from 5.938 million tron (TRX). Blockfi, another crypto lender that filed for bankruptcy after its exposure to FTX, maintains $36.37 million in digital holdings, mostly in ethereum (ETH).

Celsius Network, which halted withdrawals and entered bankruptcy in July 2022 amid liquidity woes and risky bets, currently holds $6.89 million.

📊 Meanwhile, Alameda Research, FTX's quantitative trading arm, still possesses $887.46 million in digital assets, primarily in solana (SOL). In contrast, Three Arrows Capital (3AC) holds only $46,036.

At the time of writing, these eight defunct entities collectively hold an eye-popping $1.546 billion in onchain assets.

🌐 Shopify Integrates USDC Stablecoin for Global Payments 🚀 Shopify has announced the integration of the USDC stablecoin into its Shopify Payments system, in collaboration with Coinbase and Stripe. This early access feature enables merchants worldwide to accept USDC payments via the Base blockchain network. Customers can use USDC-supported wallets during checkout, including guest checkout and Shop Pay, without needing any new integrations or gateways. 💱 Merchants on Shopify will automatically receive settlements in their local currency, eliminating foreign transaction or exchange fees. They also have the option to receive USDC directly into their crypto wallets, thanks to Stripe's involvement. USDC, issued by Circle and pegged 1:1 to the U.S. dollar, aims to provide stability compared to more volatile cryptocurrencies like bitcoin (BTC). Transactions are processed through the Base network, an Ethereum layer two (L2) developed by Coinbase. 🛠 To facilitate this integration, Shopify and Coinbase created a new smart contract and open-source payment protocol tailored for commerce needs such as tax calculation, delayed capture, and refunds. During checkout, consumers can select the USDC payment option, connect their compatible crypto wallet via a secure pop-up window, and confirm the transaction. 💰 In the U.S., Shopify plans to offer a 1% cash back on USDC payments later this year at no cost to merchants. This feature is currently available to early access merchants and will be rolled out to all Shopify Payments users globally by late 2025. The companies assure that no additional setup is required for eligible merchants.

💰 New ETFs Launch Amid CRCL's Soaring Debut 🚀 Two new single-stock exchange-traded funds (ETFs) are set to launch, aiming to take advantage of Circle Internet Group's (CRCL) remarkable 266% surge since its IPO last Thursday, now trading at $113 per share. Proshares and Bitwise are introducing these specialized funds to cater to varying investor risk appetites. 📈 The Proshares Ultra CRCL ETF aims to deliver 2x the daily performance of CRCL’s stock through derivatives like swaps to amplify returns—and losses. This leveraged approach is tailored for short-term traders, as compounding effects can significantly deviate from the 2x target over longer periods. 💵 On the other hand, the Bitwise CRCL Option Income Strategy ETF utilizes a covered call strategy, selling call options on CRCL shares to generate income while capping upside potential. This conservative options strategy allows investors to collect premiums in exchange for agreeing to sell shares at a set price if the stock rises beyond that level. 📊 CRCL’s volatility makes it an ideal candidate for these strategies. Despite its current price of $113, CRCL reached an all-time high of $138.57. The stock’s wild swings—driven by its connections to stablecoin issuer Circle and the broader crypto market—could attract both aggressive traders and income seekers. ⚠️ Proshares’ filing emphasizes risks, including the potential for total loss in leveraged positions if CRCL drops 50% intraday. In contrast, Bitwise’s fund aims to mitigate downside through options income but may underperform in a sustained rally. As single-stock ETFs linked to crypto gain popularity, these launches underscore Wall Street’s rush to capitalize on CRCL’s momentum.

💰 Metaplanet Inc. Aims for 1% of Bitcoin Supply with $5.4 Billion Equity Raise 📈 Metaplanet Inc., a Tokyo-listed investment firm, has announced a bold plan to raise $5.4 billion through the issuance of 555 million shares. This capital will be used to significantly increase its bitcoin holdings to 210,000 BTC by 2027, which represents approximately 1% of the total bitcoin supply. This new target marks a substantial increase from its previous goal of 21,000 BTC by 2026.

Thrilled to announce Asia’s largest-ever equity raise to buy bitcoin — again! This time: $5.4 billion to accelerate our bitcoin strategy. Our new target: 210,000 BTC by 2027

CEO Simon Gerovich stated. 📊 The capital raise, referred to as the “555 Million Plan,” involves the use of moving strike warrants, a unique financial instrument in Japan that adjusts the exercise price based on market conditions. This approach aims to optimize capital raising while minimizing shareholder dilution. The majority of the funds will be allocated for purchasing additional bitcoin, with some set aside for bond redemptions and income-generating strategies like selling put options. 🌍 Metaplanet’s aggressive bitcoin acquisition strategy aligns with a growing trend among corporations looking to hedge against economic uncertainties and currency devaluation. The company has seen a significant increase in its stock value, rising 275% since early 2025 and delivering a remarkable 1619% return over the past year. With its current holdings of 8,888 BTC, Metaplanet ranks among the top corporate bitcoin holders globally.

📉 High Failure Rates in VC-Backed Crypto Projects: A Study 📊 A recent study by Chainplay and Strorible reveals alarming statistics about venture capital (VC)-backed crypto projects. It found that nearly 45% of these projects have shut down, and 77% fail to generate $1,000 in monthly revenue. The study analyzed 1,181 projects that received funding between January 1, 2023, and December 31, 2024. 🔍 The findings challenge the common belief that VC backing ensures a project's success. Notably, Polychain Capital, a top-tier VC firm, had the highest rate of investment failures, with 44% of its projects failing. The study also revealed that 37.45% of promising projects backed by top-tier VC firms have failed, while 34.56% are dead. Over a third (33.41%) earn less than $1,000 per month. 💔 Other prominent VC firms also experienced significant failures. Yzi Labs (formerly Binance Labs) saw 72% of its backed projects fail, and Circle (38%), Delphi Ventures (33%), Consensys (30%), and Andreessen Horowitz (24%) all reported high rates of project shutdowns. 👤 Among angel investors, Balaji Srinivasan had the highest share of dead projects at 57%, followed by Arthur Hayes (34%) and Santiago Santos (15%). Sandeep Nailwal and Stani Kulechov each saw 10% of their backed projects cease operations. 💰 Despite these grim statistics, the study suggests a strong correlation between fundraising amounts and project success. It indicates that raising over $50 million significantly lowers failure rates, while projects that raised less than $5 million faced failure rates above 33% and nearly 20% ended up dead. The report emphasizes that substantial capital is crucial for survival in the crypto space.

🌐 The Shift from DeFi to On-Chain AI: Insights from Ram Kumar 🔄 Ram Kumar, co-founder of Openledger, observes a significant migration of blockchain developers from decentralized finance (DeFi) to artificial intelligence (AI) projects. He attributes this shift to the appeal of new technical challenges, sustainable business models, and AI's cultural relevance. Kumar advises aspiring developers to view AI as a research project aimed at addressing open challenges. 📉 While DeFi remains a cornerstone of Web3, it has encountered obstacles on its path to widespread adoption. Kumar notes that “DeFi has plateaued in terms of continued breakthroughs with additional technical and regulatory challenges,” contrasting this with the growing opportunities in AI. He emphasizes that “AI-centric topics like verifiable inference, data-royalty flows, and gas-aware model execution provide a new interesting challenge for developers.” 🔍 Looking ahead, Kumar believes the convergence of AI and Web3 is fundamentally reshaping the landscape. He explains that “AI today is turning Web3 from a capital coordination layer into a knowledge coordination layer,” suggesting a profound shift in the function and value proposition of decentralized networks. ⚠️ Despite the excitement surrounding AI and Web3, their integration remains largely theoretical, with mainstream applications lagging behind. Kumar identifies key obstacles to adoption, including the high cost of running large models on-chain and the lack of quality data on public blockchains. He points out that “the current user experience is perceived as cumbersome,” but expresses optimism that solutions like rollups and zero-knowledge coprocessors will soon reduce costs and complexity. 🟢 As concerns grow about the potential dangers of unregulated AI, many countries are implementing laws to address issues like deepfakes and algorithmic bias. Kumar views regulation as a reactive force that often follows technology but can have unintended consequences. He cites the European Union’s AI Act as an example of well-intentioned regulation that “may price startups out before they ever reach product market fit.” 💡 When asked about his approach to regulation, Kumar advocates for a function-first taxonomy that distinguishes between different types of tokens and allows for a safe harbor period for new networks. He argues for lighter regulations to encourage open-source AI models that promote transparency and address stakeholder concerns without compromising consumer protection.