Crypto News
Vitalik Buterin says rollups must prove security before decentralizing
Ethereum co-founder Vitalik Buterin explained when rollup-based layer-2 platforms should go decentralized, and why “as soon as possible” is not the correct answer.In a May 5 X post, Buterin said there is a right time for rollup-based scalability solutions to transition to a decentralized model. This moment depends on how low the proof system’s failure probability has fallen compared with the risks introduced by centralization.Buterin’s thread came in response to a separate post by decentralized exchange Loopring founder and CEO Daniel Wang. Wang said in his thread that the maturity of a system matters to its security:“Not all code is created equal. A rollup can be Stage 2, but running fresh code that’s never been tested under real stress.“Rollup development is classified into stages: stage zero, stage one and stage two. Each stage is increasingly decentralized, with stage two being fully decentralized and trustless.Related: Vitalik Buterin’s vision for Ethereum: Pectra, Glamsterdam and beyondCode that experienced warCryptocurrency systems that manage significant assets are exposed to profit-motivated bad actors worldwide. Even if a project does not feature a bug bounty program promising payments to people who find vulnerabilities, it is still taken apart under a microscope — it may just pay more for its faults.This threat is growing as nation-state-backed bad actors increase their crypto activity level. One such example is the Lazarus hacking group, responsible for many high-profile hacks in the crypto space, including the $1.4 billion Bybit hack.Wang suggested introducing a new metric for veteran code that survived the pressure of being exposed to highly motivated advanced hackers and hacker groups: “BattleTested.” The BattleTested badge would be awarded to a rollup that consistently secured at least $100 million of assets for at least six months, with at least $50 million in Ether (ETH) and a major stablecoin.Also, this badge would be lost at every update, as the new code needs to survive the onslaught of attackers to earn it. Buterin commented on the analysis:“A good reminder that stage 2 is not the only thing that matters for security: the quality of the underlying proof system matters too.“Analyst at Kronos Research Dominick John told Cointelegraph that “to responsibly transition from stage 1 to stage 2, rollup teams must […] take a hard look at correlated risks like shared custody weaknesses or geopolitical chokepoints that can compromise the reliability of multisig security councils.” He said that such risks often go unnoticed until the locked value crosses $100 million. He added:“The real green light for decentralization comes not when the proof system looks good on paper, but when it proves under real economic pressure that it’s more reliable than the potential for coordinated failures among council members.“Related: Vitalik wants to make Ethereum ‘as simple as Bitcoin’ in 5 yearsWhen to go decentralized?Buterin said the best time for a protocol to go decentralized is when its onchain proof system is safe enough that the centralized components serving as a point of failure or collusion risk becoming the bigger threat. This is because until a system is proven to be secure enough, decentralization, which increases the reliance on this system, may end up making the system less secure.Chart showing example rollup risk analysis per stage. Source: Vitalik ButerinMike Tiutin, chief technology officer at decentralized compliance protocol PureFi, told Cointelegraph that “going decentralized too early […] can leave users vulnerable.” Kronos Research’s John said that “decentralization isn’t a race, it’s a long-term responsibility shared by the entire ecosystem.” He added that rushing to stage two puts ideology before safety and increases risks:“In stage one, councils can step in if something breaks. In Stage 2, a single bug could wipe out billions with no rollback.”While going decentralized right away is recognized as problematic, some experts highlight not going decentralized at all. Arthur Breitman, co-founder of the Tezos blockchain, told Cointelegraph that “prominent Ethereum L2s” are fundamentally custodial, adding:“Privileged entities control core logic, jeopardizing asset integrity; banking on their immunity to collusion is fragile, and failure is likely to be correlated.“Yishay Harel, CEO and co-founder of rollup-centric blockchain Dymension, highlighted that “Ethereum wasn’t originally built to settle rollups.” This leads to tradeoffs:“Move too fast toward decentralization and you risk breaking critical systems; move too slow and you remain effectively custodial, governed by multisigs and upgrade keys.“Harel said that while Buterin’s idea of gradually staging decentralization as a system matures is “smart,” it also highlights a concern — that the underlying architecture wasn’t originally designed for sovereign execution environments.Magazine: What are native rollups? Full guide to Ethereum’s latest innovation
Published Date: 2025-05-05 10:00:28Creator: Cointelegraph by Adrian Zmudzinski
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America’s crypto renaissance is already failing; but we can fix it
Opinion by: Shane Molidor, Founder, ForgdFor years, launching a crypto project in the United States has been a maze of uncertainty. Legal ambiguity and a hostile regulatory environment have driven founders offshore, turning places like Switzerland and the Cayman Islands into global hubs for blockchain innovation. With Trump’s election, things finally started to change, with a US administration openly declaring its intention to be crypto-friendly. Yet, despite the rhetoric, nothing concrete has changed so far.Launching a crypto project in the US is just as difficult as ever. US regulatory agencies continue to offer nothing but vague threats and “regulation by enforcement” lawsuits. America wants to be a leader in crypto, but, even under the Trump administration, it isn’t taking action to create the conditions that would make that happen. Killing crypto in AmericaEvery crypto project faces the same fundamental problem: Achieving decentralization is critical to avoid regulatory scrutiny, but until a project launches its token, a degree of centralization is unavoidable.The SEC’s outdated Howey test ensures that nearly every legitimate crypto project gets classified as a security. The logic is self-defeating. Projects can’t decentralize without launching a token, but launching a token in the US instantly puts them in the SEC’s crosshairs.This isn’t just a theoretical issue; it has real consequences. Liquidity providers, essential for all new token launches, won’t engage with US-based projects because they assume their tokens will be classified as securities. Centralized exchanges refuse to list tokens issued from US entities for the same reason. Even decentralized exchanges face pressure from their legal teams to avoid actively seeding liquidity for American projects. The result? US founders are boxed out of the global crypto economy before they even get started.Offshore jurisdictions are winningThis regulatory failure has spawned an entire cottage industry of offshore legal firms specializing in setting up token-issuing entities. With its FINMA no-action letter system, Switzerland has become a hotbed for crypto projects because it offers one of the few structured ways to get legal clarity on a token’s classification. The Cayman Islands and British Virgin Islands have also established themselves as crypto safe havens, providing flexible corporate structures that allow projects to operate with far less regulatory risk. Recent: US Treasury wants to cut off Huione over ties to crypto crimeThe absurdity is that the actual work — the development, the hiring, the innovation — still happens in the US. The token issuance gets pushed offshore via “Associations” and “Foundations,” which serve non-profits operating independently of US-based development shops. American founders are forced to funnel money into unnecessary legal fees, overseas operators, and shell foundations to avoid the inevitable crackdown from US regulators. This isn’t just bad for crypto; it’s bad for America. Until it can be solved, the US will continue to hemorrhage talent, investment, and influence to less myopic jurisdictions.Make America crypto-friendlyThe US has spent years fumbling crypto policy, and now, even with an administration that claims to be pro-crypto, it’s still failing to deliver real change. The solution isn’t to promise capital gains tax exemptions on crypto, as some have suggested. That does little to ameliorate the punishing regulatory landscape US-based projects are forced to navigate. If the US truly wants to lead in crypto, it also must take the lead in providing regulatory clarity.That means finally recognizing that the same regulations that have governed traditional financial markets can’t always be applied to crypto. The Howey test doesn’t work. Instead, the government must provide a new and functional legal framework for the crypto industry. It’s time for US legislators and regulators to acknowledge that crypto tokens can’t achieve decentralization instantaneously and almost always require the efforts of a team of core contributors to bootstrap initial growth and development. The federal government must devise a version of the Howey test that does not automatically classify every new crypto token as a security but instead allows tokens a grace period to decentralize. In conjunction with this, the US must establish new protections to ensure insiders aren’t unduly benefiting from crypto projects while they scale. In addition to swiftly ending the “regulation by enforcement” approach employed under Gary Gensler’s SEC, a tactic seemingly designed to gradually smother crypto activity in the US, the government must provide clear guidelines. It needs to be feasible for market makers to evaluate whether US tokens are commodities or securities with a degree of stability and predictability. This is the only way to end the blanket bans market makers have placed on US tokens and bring crypto development back to America.America’s window of opportunity is closingCrypto founders aren’t waiting for Washington to figure it out. Every day, without clear regulations, more crypto projects are incorporated offshore. The US doesn’t even need to “embrace” crypto. It just needs to stop actively driving it away.If this administration truly wants to make the US the leader in crypto, it needs to move beyond campaign slogans and start fixing the fundamental problems that forced this industry offshore in the first place. And it needs to act fast. Opinion by: Shane Molidor, Founder, Forgd. This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Published Date: 2025-05-05 09:00:00Creator: Cointelegraph by Shane Molidor
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Solana devs fix bug that allowed unlimited minting of certain tokens
The Solana Foundation has confirmed that a zero-day vulnerability that allowed an attacker to potentially mint certain tokens and even withdraw those tokens from user accounts has been fixed. A May 3 post-mortem from the Solana Foundation said that the security vulnerability, first discovered on April 16, could have allowed an attacker to forge an invalid proof affecting Solana’s privacy-enabling “Token-22 confidential tokens.”There is no known exploit of the vulnerability, and Solana validators have since adopted the patched version, the foundation said.Solana zero-day security bug affected Token-22 confidential tokensThe Solana Foundation said the security vulnerability concerned two programs: Token-2022 and ZK ElGamal Proof.Token-2022 handles the main application logic for token mints and accounts, while ZK ElGamal Proof verifies the correctness of zero-knowledge proofs to show accurate account balances.The foundation said certain algebraic components were omitted from the hash in the Fiat-Shamir Transformation's transcript generation, which specifies how provers create public randomness using a cryptographic hash function. The flaw could have enabled an attacker to exploit the unhashed components by crafting a forged proof that passes verification to mint and steal Token-22 confidential tokens.Token-22 confidential tokens, or “Extension Tokens,” leverage zero-knowledge proofs for private transfers and aim to enable advanced token functionality. The vulnerability was first identified on April 16, and two patches were deployed to resolve the issues. A super majority of Solana validators adopted the patches around two days later.Solana development firms Anza, Firedancer and Jito were the main parties behind the security patch, while Asymmetric Research, Neodyme and OtterSec also assisted.The foundation confirmed that all funds remain safe.Related: Bloomberg Intelligence boosts Solana ETF approval odds to 90%Despite the fix, the Solana Foundation's private handling of the issue with Solana validators raised centralization concerns from some in the crypto community. This included a Curve Finance contributor who raised concerns about the foundation’s close relationship with Solana validators.“Why does someone have a list of all validators and their contact details? What else are they talking about in those comms channels,” they asked, fearing that they could collude to potentially censor transactions or roll back the chain.Solana Labs CEO Anatoly Yakovenko didn’t directly deny the claims but said members of the Ethereum community could also coordinate to resolve a similar security bug.Source: CloutedMore than 70% of Ethereum network validators are also controlled by crypto exchanges or staking operators such as Lido, Yakovenko said in arguing his point.“It’s the same people to get to 70% on ethereum. All the lido validators (chorus one, p2p, etc..) binance, coinbase, and kraken. If geth needs to push a patch, I’ll be happy to coordinate for them.”In August, the Solana Foundation and network validators resolved another critical vulnerability behind the scenes. At the time, the foundation’s executive director, Dan Albert, said the ability to coordinate a patch doesn’t mean that Solana is centralized.Ethereum wouldn’t fall for the same issue, community member saysEthereum community member Ryan Berckmans slammed claims that Ethereum is subject to the same centralization issues as Solana, pointing out that Ethereum has sufficient client diversity. The most popular Ethereum client, geth, has at most 41% market share on Ethereum, Berckmans said, while noting that Solana has just one production-ready client, Agave.“This means zero day bugs in the single Sol client are de facto protocol bugs. Change the single client program, change the protocol itself. The client is the protocol.”Meanwhile, Solana is looking to roll out a new client, Firedancer, in the next few months, which is expected to improve the network’s resilience and uptime. However, Berckmans said that Solana would need three clients to be sufficiently decentralized at the client level.Source: Ryan BerckmansMagazine: Memecoins are ded — But Solana ‘100x better’ despite revenue plunge
Published Date: 2025-05-05 02:36:06Creator: Cointelegraph by Brayden Lindrea
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Mattel to wind down its Hot Wheels Virtual Garage NFTs
Toymaking giant Mattel is putting the brakes on its Hot Wheels Virtual Garage non-fungible tokens, pending a decision on the collection’s future.There will be no future releases of any new NFT series or feature drops for the “foreseeable future,” Mattel said in an update on its website. The company said it will decide on the “long-term future” of Mattel digital collectibles.“Your unwavering support and enthusiasm for the Hot Wheels Virtual Garage has been legendary, and we’re incredibly grateful to have been on this journey with you,” the company said.“As we evaluate the changing world of virtual collectibles, we’ve determined the time has come to end our Series and Feature Drops in 2025 and onward.”There are no plans for any new NFT series or feature drops for Mattel's Hot Wheels Virtual Garage. Source: Mattel CreationsIn the meantime, users’ hot wheel NFT collections, the Mattel Digital Collectibles Marketplace, the community Discord and other channels will continue to operate as normal through at least 2025, according to Mattel.Holders can still buy, sell and trade their Hot Wheels NFTS on the Mattel Digital Collectibles Marketplace, while existing and outstanding redemptions will be “fulfilled as promised.”However, there is no option to transfer the NFTs to other wallets or marketplaces at the moment. Mattel says it’s exploring possible options around this feature.“We are developing a long-term plan for Virtual Collectibles and will share updates with the community in the future,” the company said.The Hot Wheels NFT Garage Series 7 and the Mattel Creations Virtual Market Place opens on 12.7.2023. #HotWheels pic.twitter.com/CidwT3qqC3— Hot Wheels (@Hot_Wheels) November 30, 2023Mattel launched series one for its Hot Wheels NFT Garage in November 2021 in partnership with the Worldwide Asset eXchange. The latest release, series 10, went live in December last year.Nike sunsets its NFTs, while FIFA doubles down Mattel isn’t the only company winding down its NFT services — sporting footwear and apparel giant Nike sunset its NFT marketplace RTFKT in January. Holders have since launched a lawsuit, alleging Nike has caused them financial harm by shuttering the marketplace.Related: NFT project plans crowdfund purchase of Cold War nuclear bunkerHowever, other companies continue to support NFT holders. FIFA, which launched its NFT collection ahead of the 2023 Club World Cup, announced on April 30 that it was creating a new Ethereum-compatible blockchain for its digital collectibles.The overall NFT market dropped sharply in the first quarter of 2025, with sales plunging 63% year-over-year, to $1.5 billion in total sales from January to March 2025, down from $4.1 billion during the same period in 2024.Magazine: Financial nihilism in crypto is over — It’s time to dream big again
Published Date: 2025-05-05 01:55:12Creator: Cointelegraph by Stephen Katte
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Bitcoin price cools going into Fed rate hike week, HYPE, AAVE, RNDR, FET still look bullish
Key points:Bitcoin’s positive sentiment should remain intact if BTC price stays above the 20-day EMA near $92,000.Several altcoins show bullish chart patterns in the 4-hour and 1-day timeframes.Bitcoin (BTC) has given back some of the gains over the weekend, and the price has pulled back to the breakout level of $95,000. Buyers will have to successfully hold the $95,000 level to keep the bullish momentum intact.Bitcoin network economist Timothy Peterson said in a post on X that Bitcoin could surge to a new all-time high and reach a target of $135,000 in the next 100 days if certain conditions are met. Peterson believes a drop in the CBOE Volatility Index below 18 could trigger a “risk-on environment” favoring Bitcoin. The other crucial points needed for the Bitcoin rally are a fall in interest rates and a solid performance in the above-average performing months of June and July. Crypto market data daily view. Source: Coin360The cryptocurrency markets may remain volatile in the near term as traders await the Federal Reserve’s upcoming interest rate decision next week. Although the CME Group’s FedWatch Tool projects a low probability of a rate cut on May 7, markets may make a decisive move after the event.Could Bitcoin hold the retest of the $95,000 level? If it does, let’s study the charts of the cryptocurrencies that may move higher in the near term.Bitcoin price predictionBitcoin broke above the $95,000 resistance on May 1, but the bulls failed to sustain the momentum. The price turned down from $97,895 on May 2 and has reached the breakout level of $95,000. BTC/USDT daily chart. Source: Cointelegraph/TradingViewThe upsloping 20-day exponential moving average ($92,106) and the relative strength index (RSI) in the positive territory indicate that buyers have the edge. If the price rebounds off the zone between $95,000 and the 20-day EMA, the bulls will make one more attempt to push the BTC/USDT pair to $100,000. Contrarily, a break and close below the 20-day EMA suggests that the rally above $95,000 may have been a bull trap. That heightens the risk of a drop to the 50-day simple moving average ($86,682).BTC/USDT 4-hour chart. Source: Cointelegraph/TradingViewThe moving averages have flattened out, and the RSI has dropped near the midpoint on the 4-hour chart, suggesting a weakening momentum. If the price drops below $95,000, the pair could descend to $92,800 and then to $91,660. A break below $91,660 clears the path for a fall to $86,000.Buyers will have to drive and sustain the price above $97,895 to regain control. The pair could climb to $100,000 and later to $107,000.Hyperliquid price predictionHyperliquid (HYPE) is facing resistance at $21.50, but a positive sign is that the bulls have not ceded much ground to the bears.HYPE/USDT daily chart. Source: Cointelegraph/TradingViewThe upsloping 20-day EMA ($18.48) and the RSI near the overbought zone suggest the path of least resistance is to the upside. A close above $21.50 could start the next leg of the up move to $25 and then to $27.50.The first sign of weakness will be a break and close below the 20-day EMA, suggesting profit booking by the short-term bulls. The HYPE/USDT pair could then fall to $17.35, which is likely to act as solid support.HYPE/USDT 4-hour chart. Source: Cointelegraph/TradingViewThe bears are defending the $21.50 level, but the bulls have not allowed the price to slip below the 20-EMA on the 4-hour chart. A solid bounce off the 20-EMA could challenge the overhead hurdle. If the $21.50 level is scaled, the pair could soar toward $25.Instead, if the price breaks the 20-EMA, select short-term buyers may be tempted to book profits. That could sink the pair to the 50-SMA, which is a critical support to keep an eye on. If the level cracks, the pair may descend to $17.35.AAVE price predictionAave (AAVE) turned up from the moving averages on April 30, indicating that the sentiment has turned positive and traders are buying on dips.AAVE/USDT daily chart. Source: Cointelegraph/TradingViewThe bulls will try to push the price to the $196 level, where the bears are expected to sell aggressively. If the price turns down from $196 but finds support at the 20-day EMA, the likelihood of a break above the overhead resistance increases. The AAVE/USDT pair could then travel to $220 and later to $240.If bears want to prevent the upside, they will have to swiftly pull the price below the moving averages. If they can pull it off, the pair may collapse to $130.AAVE/USDT 4-hour chart. Source: Cointelegraph/TradingViewThe pair is facing selling near $180, but a positive sign is that the bulls have maintained the price above the moving averages. If the price turns up from the moving averages and breaks above $180, the pair could accelerate toward $196. There is minor resistance at $190, but it is likely to be crossed. Contrary to this assumption, if the price turns down and breaks below the 50-SMA, it suggests that the bulls are booking profits. That may pull the price down to $155 and subsequently to $150.Related: Ethereum nears key Bitcoin price level that last time sparked 450% gainsRender price predictionBuyers tried to push Render (RNDR) above the $4.87 resistance on May 2, but the bears held their ground.RNDR/USDT daily chart. Source: Cointelegraph/TradingViewThe price has reached the 20-day EMA ($4.31), where the bulls are likely to mount a strong defense. If the price bounces off the 20-day EMA, it increases the possibility of a break above $4.87. If that happens, the RNDR/USDT pair could pick up momentum and climb to $6.20.This positive view will be negated in the near term if the price continues to slide and breaks below the $4.22 support. That opens the doors for a fall to the 50-day SMA ($3.80) and, after that, to $3.55.RNDR/USDT 4-hour chart. Source: Cointelegraph/TradingViewSellers have pulled the price to the $4.22 support, which is an important support to watch out for. If the price rebounds off $4.22 with strength, it signals a possible range formation in the near term. The pair may swing between $4.22 and $4.87 for some time. A break and close above $4.87 indicates the resumption of the up move toward $5.52.On the contrary, if the price continues lower and breaks below $4.22, it suggests that the bears are attempting a comeback. The pair may decline to $3.88.Fetch.ai price predictionFetch.ai (FET) turned down from the $0.84 overhead resistance and has reached the 20-day EMA ($0.65).FET/USDT daily chart. Source: Cointelegraph/TradingViewThe bulls will try to arrest the pullback at the 20-day EMA. If the price rebounds off the 20-day EMA with force, the FET/USDT pair could reach the $0.84 level. A break and close above $0.84 opens the doors for a possible rise to $1.09.Sellers are likely to have other plans. They will try to pull the price below the 20-day EMA. If they manage to do that, the pair could fall to the 50-day SMA ($0.54), where the buyers are expected to step in.FET/USDT 4-hour chart. Source: Cointelegraph/TradingViewThe pair has reached the crucial support at $0.67. If the price rebounds off $0.67, the bears will try to halt the relief rally at the moving averages. If the price turns down from the moving averages and breaks below $0.67, it suggests that the bulls have given up. That could drag the pair down to $0.60.Alternatively, a break above the moving averages signals demand at lower levels. That suggests a possible range formation between $0.67 and $0.80. The uptrend could resume on a close above $0.80.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Published Date: 2025-05-05 01:05:52Creator: Cointelegraph by Rakesh Upadhyay
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Kidnapped dad of crypto businessman freed from ransom attempt: Report
The father of an unnamed crypto entrepreneur was freed by police in Paris, France, during a law enforcement raid of the property where the man was held captive for ransom over several days.According to reporting from Le Monde, the May 3 raid resulted in five arrests. Local outlet Le Parisien also said the kidnappers demanded between 5 million and 7 million euros, or up to $7.9 million, to release the captive man.Although the details on the identity of the victims remain scant, likely for security reasons, the crypto entrepreneur and his father co-owned a crypto marketing firm based in Malta, French media reports.This incident features similarities to the kidnapping of Ledger co-founder David Balland in France in January 2025. Balland was also held for a crypto ransom until he was freed by law enforcement officers in a rescue operation.Unfortunately, this latest incident also follows a string of similar ransom attempts around the world targeting crypto users and their loved ones in an attempt to extort funds from individuals perceived to hold a sizable amount of wealth.Related: $330M Bitcoin social engineering theft victim is elderly US citizenCrypto kidnapping attempts sadly become all too commonIn November 2024, WonderFi CEO Dean Skurka was kidnapped and forced to pay a $1 million cryptocurrency ransom to the assailants, who abducted him using a vehicle in downtown Toronto, Canada.Six individuals in Chicago, Illinois were charged in February 2025 with the kidnapping of a family and their nanny in exchange for a crypto ransom.According to an FBI report, the kidnappers forced their way inside the Chicago home by pretending they had accidentally damaged the family's mechanical garage door.Once inside, the suspects forced the family into a van and abducted the family for five days before forcing them to surrender $15 million worth of cryptocurrencies to secure their release.Online streamer Amouranth was the victim of a home invasion in March 2025 when several armed suspects held her at gunpoint and demanded the keys to her cryptocurrency.Four suspects were charged in connection to the incident and arrested by law enforcement officials in the US state of Texas.Magazine: Bitcoiner sex trap extortion? BTS firm’s blockchain disaster: Asia Express
Published Date: 2025-05-04 21:27:54Creator: Cointelegraph by Vince Quill
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Maldives to build $9 billion crypto hub to attract investment: Report
The government of Maldives signed an agreement with MBS Global Investments, a Dubai-based family office, to develop a $9 billion crypto and blockchain hub in Malé, the capital of the South Pacific archipelago nation.According to a report from the Financial Times, the agreement, which was signed on May 4, was done in the hopes of moving the Maldives away from reliance on tourism and fisheries by attracting foreign direct investment into blockchain and Web3 technologies.The project outlines plans for the Maldives International Financial Centre, an 830,000-square-meter facility that will reportedly employ up to 16,000 individuals.Completing the project will take an estimated five years and the capital requirements for the ambitious development are more than the $7 billion in annual gross domestic product (GDP) of the Maldives.The geographic location of Maldives. Source: WorldometerThe planned crypto hub reflects the growing importance of the crypto industry worldwide. However, the Maldives' ambitions to become a global center for financial technology must contend with well-capitalized, established jurisdictions like Dubai, Singapore, and Hong Kong.Related: Slovenia’s capital of Ljubljana ranked as world’s most crypto-friendly cityEstablished crypto and fintech hubs already on the sceneDubai, in the United Arab Emirates (UAE), is a rapidly growing crypto and Web3 hub thanks to its positive regulatory environment that encourages innovation and a local government willing to explore blockchain technology in real-world applications.On April 6, Dubai's Land Department (DLD) and the Virtual Assets Regulatory Authority (VARA) signed an agreement to connect the land registry to blockchain, allowing for more comprehensive real estate tokenization.Hong Kong has also positioned itself as a crypto hub through proactive regulations that have attracted hundreds of Web3 and fintech firms.According to Ivan Ivanov, global CEO of WOW Summit, a blockchain conference in Hong Kong, the special economic zone leverages its position as a bridge between Western economies and China to attract investment and serves as a regulatory sandbox.Singapore is also a major international crypto center, with dozens of digital asset exchanges based inside the country and hundreds of Web3 firms headquartered there.The country continues to attract global investment through a regulatory approach that encourages technological experimentation without fear of regulatory reprisal.Magazine: Crypto City: Guide to Dubai
Published Date: 2025-05-04 19:40:18Creator: Cointelegraph by Vince Quill
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Saylor signals impending Bitcoin purchase following Q1 earnings call
Strategy co-founder Michael Saylor hinted at an impending Bitcoin (BTC) purchase, marking the fourth consecutive week of purchases by the BTC treasury company.The company's most recent acquisition occurred on April 28 when Strategy purchased 15,355 BTC, valued at over $1.4 billion at the time, bringing the company's total holdings to 553,555 BTC.According to data from SaylorTracker, Strategy is up approximately 39% on its investment, representing over $15 billion in unrealized gains.Strategy’s history of Bitcoin acquisition. Source: SaylorTrackerBitcoin investors continue closely monitoring the company, which has been a major driver of direct institutional exposure to BTC by popularizing the Bitcoin corporate treasury concept and indirectly through institutions holding Strategy's stock in their investment portfolios.Related: Strategy ends April up 32% in best month since November as Q1 earnings loomStrategy misses Q1 analyst estimates but continues stacking BitcoinStrategy fell short of analyst estimates for Q1 2025, reporting approximately $111 million in revenue, down by 3.6% from Q1 2024 and missing analyst expectations by 5%.However, the company also reported that it acquired 61,497 BTC so far in 2025 and also revealed plans to raise $21 billion through an equity offering to finance the purchase of more BTC.The quarter-by-quarter growth of Strategy’s Bitcoin treasury. Source: StrategyAsset manager Richard Byworth recently suggested that Strategy should acquire companies with ample cash reserves and convert those fiat cash reserves to Bitcoin for its treasury.Byworth added that Strategy could also purchase Bitcoin on the open market as exchange balances dwindle, rather than the over-the-counter (OTC) transactions between private parties that do not affect the market exchange price.Doing so would push prices higher, driving up the value of Strategy's Bitcoin reserves and acting as a catalyst attracting even more investors to BTC, the asset manager said.Strategy's effect on Bitcoin's price and Bitcoin adoption continues to draw intense discussion over the role of the company as it relates to market dynamics.Adam Livingston, a BTC analyst and author of "The Bitcoin Age and The Great Harvest," recently argued that Strategy's demand for BTC is synthetically halving Bitcoin by outpacing the daily miner output.Livingston pointed out that Strategy's average daily rate of Bitcoin accumulation of roughly 2,087 BTC far outstrips the collective daily mined supply of around 450 BTC.Magazine: ZK-proofs are bringing smart contracts to Bitcoin — BitcoinOS and Starknet
Published Date: 2025-05-04 16:43:56Creator: Cointelegraph by Vince Quill
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How to set up stop-loss and take-profit orders
Key takeawaysBitcoin and crypto traders can rely on automated orders on their trading platform to limit losses and secure gains.Stop-loss orders in Bitcoin trading started as manual risk management in the early 2010s. Now, they have become advanced, automated tools on today’s exchanges.In the algorithm era and bot pestering, proper trading tools like stop-loss and take-profit orders will help you protect your trades.Setting up advanced BTC trading strategies doesn’t guarantee a successful risk management plan. Monitoring the market regularly helps you understand current conditions. This way, you can avoid strategic mistakes.Stop-loss and take-profit orders in trading were used long before Bitcoin. In traditional financial markets, they were already used as a risk management and profit-securing tool.They help reduce losses and boost revenue by automatically buying or selling an asset when its price reaches a set level. With Bitcoin’s emergence in 2009 and its subsequent trading on exchanges, these advanced trading strategy tools became crucial for dealing with its well-known price volatility. As Bitcoin (BTC) gained traction, traders began to use stop-loss and take-profit strategies from forex and stock markets. At first, price monitoring was manual. Then, automated features on crypto platforms changed everything.What are stop-loss and take-profit orders?Stop-loss and take-profit orders are trading strategies that help investors manage risk and secure gains automatically. They’re instructions you set on a trading platform to close a position when certain price levels are reached. They help limit losses in case of significant price drops or lock in profits when a price target is reached. They can be set up to boost gains and cut losses. This helps keep emotions out of trading, which can prevent regrettable mistakes. They also help if you can’t monitor the market constantly.There must be specific conditions for the orders to trigger. Bitcoin trading is very volatile. Its fast price changes and possible system delays can cause orders to trigger at a different price or not trigger at all. This type of trading strategy gives peace of mind to risk-averse investors.Bitcoin stop-loss ordersIf you don’t want to take risks and preserve your capital, you can use a stop-loss order designed to limit your losses. You can use it for a buy order, setting up a price level below your entry point, or right above it for a sell trade.In case of a price drop, the order is executed automatically at your designated price, preventing further losses. For example, if you buy BTC at $90,000 and set a stop loss at $85,000, your position sells if the price drops to $85,000, capping your loss at $5,000.Bitcoin take-profit ordersTo lock in some gains, you can use a take-profit order. Set a price level above your entry point, and when the market reaches that level, the trade is executed, giving you the expected gains. For example, if you buy BTC at $90,000 and set a take profit at $95,000, if the price hits $95,000, it sells, securing a $5,000 profit per BTC.Importance of stop loss and take profit for Bitcoin tradingBitcoin’s wild price changes make stop-loss and take-profit orders important. These tools help lower the risk of losses and boost the chance of gains.Remember, setting up these orders doesn’t guarantee they will be executed. Their execution relies on various factors, like market volumes.Why set up a stop loss for BitcoinBitcoin’s volatility has gone down over time. Still, it can have big price swings. Without proper Bitcoin trading risk management, traders may face heavy losses.Here are some of the most important reasons why it would be useful to adopt stop-loss orders in your Bitcoin trading strategy.Bitcoin volatility: BTC can still drop 10% in a very short time due to factors such as news, whale moves or market sentiment. On Dec. 5, 2024, for example, BTC suffered a flash crash from $103,853 down to $92,251 before recovering. A stop loss caps your downside trend when a flash crash hits. Without it, you’re gambling on timing the recovery manually.Non-stop market: The Bitcoin market is open 24/7. Setting up a stop loss will prevent losses due to sudden drops while you’re sleeping. Emotions: An emotional state can be a huge game-changer in trading. Emotional investors may panic-sell or panic-buy, triggering significant losses. A stop loss will reduce the risk of making costly emotional mistakes before fear kicks in.Why set up a take-profit order for BitcoinA Bitcoin trading strategy may include defining price targets and a percentage of gains. Setting up a take profit order for BTC may be necessary as part of an overall trading risk management plan and will help reach the following targets.Locking gains: BTC’s volatility, in both bull and bear markets, can lead to quick spikes and can reverse just as quickly. A take profit ensures you cash out before pullbacks.Greed control: Without a take profit order, traders may be tempted to chase higher highs, which may not occur over the short term.Non-stop market: You can’t just sit and watch the market 24/7. A take-profit order ensures profits in case of a sudden pump while you’re asleep.How to set up BTC stop-loss and take-profit ordersSetting up stop-loss and take-profit for Bitcoin trading varies by platform. However, the process is usually similar on most crypto exchanges, like Binance, Coinbase Pro and Kraken.The following step-by-step guide to setting up your BTC stop-loss and take-profit orders should give you a good overview of the process.Step 1: Choose a Bitcoin trading platformThis may be the most crucial aspect of your process to set up your advanced BTC trading strategies. Pick a platform that aligns with your needs. Make sure to check the fees, volumes, reputation and security because these features can impact your trading strategy.Step 2: Open a BTC trading positionOnce you’ve set up your trading account, log in to your platform and navigate to the trading section, and look for the order form. Choose a BTC pair, for example, BTC/USD.Place your buy order (long) or sell order (short). For example, you can place your order to buy 1 BTC at $90,000.Step 3: Set your stop loss for BTCHere’s an example of an order from the Kraken platform. Click on the stop-loss option from the order menu as shown below to set up the tool.Set the stop-loss price by first deciding your risk level, or how much you’re willing to lose in case the Bitcoin price drops significantly.For example, if you bought BTC at $92,500, you can set the stop loss at $87,300, meaning you set your loss at roughly 5.62%.The loss = 92,500 - 87,300 = 5,200Now, to find the percentage loss: (5,200 / 92,500) * 100 = 5.62%Step 4: Set your take profit for BTCStay in the same trade interface. Just as above, after you select your BTC pair and buy the relevant BTC amount, click on the take-profit option.Set the take-profit price based on your exit strategy. For example, you want to set it 5% above the entry price, which would be $94,500 if you bought BTC for $90,000.Enter $94,500 as the sell price. When Bitcoin hits this price, it will sell automatically.Step 5: Confirm and monitor your ordersConfirm and activate after double-checking the amount and price, then submit.If your notifications are active, you will receive one once the order is triggered.Nothing stops you from monitoring your order status, and you can cancel or amend it if the market conditions change.Best practices for BTC stop-loss placementTraders can limit their potential losses by using stop-loss orders. This helps them protect their capital during volatile market conditions. Therefore, with Bitcoin’s possible daily swings of 5%–10%, it’s safe to base a stop loss on volatility.Volatility: Platforms like TradingView might offer an option called Average True Range (ATR) over 14 days. This lets you set an average range below your entry point. For instance, you can choose a range of $3,000, so if you bought Bitcoin at $90,000, the order will trigger once it goes down to $87,000. Align with support levels: Historically, BTC respects price floors. Setting up a stop below a crucial support level gives some peace of mind. For instance, if you bought Bitcoin at $90,000 and $88,000 is your support level, set a stop-loss order at $87,800, just below the zone to bypass stop-hunting bots.Avoid obvious levels: Whales and bots target batches of stop-loss orders at round numbers ($80,000, $85,000) or chart patterns, triggering orders before price reverses. Moving the stop loss a bit lower, like to $87,800 instead of $88,000, will probably trigger the order more effectively. BTC trailing stop lossA trailing stop-loss order automatically adjusts a stop-loss price as the market price moves in a profitable direction to lock in profits and limit losses by following a trade’s price. It’s designed to keep a fixed distance below (for long positions) or above (for short positions) the current market price. A simple stop loss may miss profits, while a trailing stop locks them.You can set a trailing stop loss at 3%–5% below the peak as the price rises. If you buy BTC at $90,000 and it hits $95,000, the trailing stop loss moves to $93,250. You can adjust manually or automatically if the platform allows.Account for slippageSlippage refers to the difference between the expected price of a trade and the actual price at which it is executed. This can occur due to market volatility or low liquidity.In case of low liquidity during BTC crashes, execution can skip your stop loss. For instance, $88,000 may fill at $87,500. Widening the stop loss slightly by 0.5%–1% can solve the problem.How to adjust stop-loss and take-profit Bitcoin ordersWhen and how to adjust a stop lossStop-loss adjustments should be made carefully. This helps protect capital from unexpected market changes and secures profits when possible. It’s often done by adjusting the order to support or resistance levels. Another common strategy is using trailing stop-loss orders. You can use “modify position” or “edit trade” on your platform to adjust them.Tighten the stop loss after a move in your favor. In case BTC’s price rises after entry, you can move the stop loss to reduce risk or lock in profits. If BTC rises after entry, move the stop loss to reduce risk or lock in profit.For example, if BTC bounces from $88,000 to $93,000, you can tighten the stop loss to $90,500, thereby ensuring no loss if it is reversed.Trail the stop loss during a trend. As BTC keeps running upward during a bull market, trailing the stop loss captures more on the upside. A percentage- or ATR-based trail can be used. For instance, with a $90,000 entry, if BTC rallies to $100,000, you can trail the stop loss to $97,200 to lock in $7,200 per coin, which is an 8% profit if it then dips.Widen the stop loss during consolidation, as tight stop losses will get hit in unsettled ranges. For instance, if BTC stalls after the $90,000 entry, you can extend the stop loss from $88,000 to $87,500 to avoid sudden drops below support.Adjust before major events, like US Federal Reserve rate announcements or ETF approvals. These can cause big swings and increase slippage risks. You can tighten the stop loss to 1%–2% if you decide to remain in the trade, or you can widen it to 10% to ride the upward trend.When and how to adjust the take-profit orderTake-profit orders can be adjusted to maximize gains, adapting to momentum or resistance. Just like a stop loss, you can modify them on your trading platform by selecting the open trade and choosing the “modify position” or “edit trade” option. Extend the take profit during strong momentum. This is to avoid missing a peak in a bull run. If you see volume spiking or a breakout clearing resistance, you can push the take profit higher. For instance, you buy at $90,000 and set the take profit at $93,000. If BTC hits $92,500 fast, you can adjust the take profit to $95,000 or $97,000 to maximize profits.Take partial profits at key levels. Resistance levels like $85,000 or $90,000 often see BTC reversing. Then you can decide to sell some of your position to grab some gains and let the rest ride.Tighten the take profit near resistance levels. BTC usually stalls at round numbers or past highs. If the price approaches resistance, you can cut the take profit from $90,000 to $88,500, for example.Reset the take profit after a pullback. If you just missed a take profit trade, do not despair, as BTC usually retraces and then runs up again. If you enter the trade at $90,000 and BTC dips to $85,000, you can reset your take profit order to $87,000 or $88,000 for a moderate win.Common mistakes to avoid with BTC ordersBitcoin’s fast-moving market needs a solid trading strategy. Stop-loss and take-profit orders are key tools. However, if they aren’t set up properly, they could do more damage than benefit. Here are some common mistakes traders make with BTC orders and how to get around them.Setting stops too tightly: Placing a stop loss too close to an entry price means it may get hit by an average drop of 2%–3%. Always keep Bitcoin’s high volatility in mind and use volatility and support level metrics.Ignoring slippage: Slippage can occur due to high volatility or low liquidity. Ignoring it may lead to costly mistakes. Especially on leveraged orders, slippage may result in heavy losses, which may affect your risk plans. Widening the stop loss slightly during highly volatile times may help reduce the risk of big losses.Chasing round numbers: Setting a stop loss at a round number is not a good idea. This can attract bots and whales looking to hunt stops or dump orders. Always set it up $100–$500 below or above a round number to avoid being caught in this typical mistake.Forgetting to adjust: Leaving a stop loss at $88,000 and a take profit at $93,000 after BTC pumps to $95,000 means you may miss profits or risk a reversal. Regularly monitoring the BTC price will ensure you’re ahead of the game and can adjust the orders accordingly. Setting platform alerts is also useful.Misjudging market context: Use your judgment following market trends. Setting a tight stop loss before a Fed announcement or a wide take profit in a bearish trend may incur heavy losses. Adjust accordingly while following trends and sentiments. Tighten the orders pre-event and widen them post-event. Aligning a take order with resistance is also a good idea.Not accounting for fees: Large-scale orders may be subject to high fees, which should be accounted for when setting up orders. Always factor fees into targets, as in the long term, it will make a difference.Panic-canceling orders: Emotions can lead to big losses. So, it’s smart to stick to your initial plan. This is especially true for BTC, which often faces flash crashes but can recover quickly. You can use trailing stops to adjust automatically.Avoid these mistakes by planning strategically, staying disciplined and adapting to Bitcoin’s volatile nature. Always test strategies on a demo account before trading live.This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.
Published Date: 2025-05-04 15:23:53Creator: Cointelegraph by Emi Lacapra
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Is this the end of Bitcoin DeFi?
Opinion by: Markus Bopp, CEO of TAP ProtocolNot long ago, the idea of Bitcoin as a government-backed reserve asset seemed like a stretch. The US Federal Reserve’s move to establish a Strategic Bitcoin Reserve marks a clear turning point. Once dismissed as a speculative asset or niche investment, Bitcoin is increasingly being treated by some governments and financial institutions as a national store of value.This evolution puts blockchain development at a crossroads. On one hand, memecoins, once dismissed as internet jokes, have dominated transaction volumes and social buzz on leading platforms. On the other hand, institutions and governments are taking the world’s most popular cryptocurrency — Bitcoin (BTC) — seriously and investing in infrastructure to secure it for the long term. If Bitcoin is to be treated like gold, it must be secured like gold. Very soon, we will see governments and institutions seek to secure Bitcoin in what will no doubt look like a digital Fort Knox. With more institutional and instrumental influence over the most valuable digital asset in the world, verifiable storage, hardened security protocols and structures built on resilience will become paramount. This shift could raise the stakes for developers. As institutional adoption rises, so does the demand for specialized developers capable of delivering institutional-grade security and long-term stability. What does this demand mean for the developer community that made Bitcoin what it is today? How will this affect the grassroots development built on Bitcoin’s core principles of full decentralization and transparency? Will a more institutional Bitcoin leave room for innovation, or is this the end of Bitcoin decentralized finance (DeFi)?Bitcoin’s institutional turn Bitcoin, the first and most widely recognized cryptocurrency, was designed to operate outside of traditional systems. Yet the moment governments and traditional institutions stopped keeping their distance, the future of Bitcoin has begun to pivot. What was once met with skepticism now draws a new kind of curiosity. The same players who once warned against digital assets are now staking their claims. The International Monetary Fund’s latest Balance of Payments Manual now classifies digital assets like Bitcoin as part of the international financial system, placing it firmly alongside traditional reserves and gold. As of January 2025, governments worldwide hold an estimated total of 471,000 BTC, worth over $16.3 billion. Strategy continued to lead and cross its Bitcoin holdings at a corporate level, doubling down on the cryptocurrency as a long-term strategic play. Recent: Bitcoin DeFi surge may boost BTC demand and adoption — BinanceThis kind of institutional recognition validates Bitcoin’s core principle but also throws it into flux. Holding it in sovereign reserves, governments are simultaneously affirming its legitimacy while also conforming it to the very system it was meant to disrupt. The changing developer landscapeAs the crypto landscape continues to evolve, fresh talent is still entering the space. There’s no guarantee all will stay. In 2024, the total number of developers in the industry declined by 7% year-on-year. Yet seasoned and established developers saw a 27% increase in activity, contributing to a record share of the industry’s output. While opportunities for small-scale contributors may be fading, the ecosystem supports a core of experienced builders, a signal that the space is maturing. The influx of institutional investors to crypto like Bitcoin is likely to drive up Bitcoin’s price, a consequence that might see them price out smaller developers and create an even higher barrier to entry. As the stakes around Bitcoin continue to rise, the demand is no longer just for innovation. It’ll be for security, compliance and infrastructure that can meet enterprise-grade “Fort Knox” level expectations. We’ll see a new wave of specialized developers stepping up to build intelligent, compliant and institutional-grade decentralized applications. From secure custody solutions to regulated exchanges and seamless bridges, institutional and government demands will shape the next phase of Bitcoin development.A new infrastructure As Bitcoin integrates more deeply into institutional finance, the development focus is maturing from experimentation to durability, compliance and security. Developers will likely focus on building not directly on Bitcoin but instead with Bitcoin. Bitcoin DeFi has so far been celebrated as a way to unlock open finance with the world’s most popular cryptocurrency, and it still might. Still, its future will depend on incoming compliance and regulatory frameworks. If governments go down the path of shoehorning the asset into traditional financial models, we’ll find developers seeking ways to bridge Bitcoin’s liquidity and value to more operable, friendlier chains. If governments are open to preserving Bitcoin’s core offering as a new, borderless and decentralized currency, that will signal the community to continue innovation. The question for the community then isn’t whether Bitcoin can support innovation under institutional oversight. It’s whether Bitcoin can thrive in a world that could now seek to contain it.Opinion by: Markus Bopp, CEO of TAP Protocol.This article is for general information purposes and is not intended to be and should not be taken as legal or investment advice. The views, thoughts, and opinions expressed here are the author’s alone and do not necessarily reflect or represent the views and opinions of Cointelegraph.
Published Date: 2025-05-04 15:00:00Creator: Cointelegraph by Markus Bopp
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